A global goal to reach net zero greenhouse gas emissions by 2050 will be out of reach unless governments and the private sector launch a major acceleration in clean energy innovation, the International Energy Agency said July 2.
The Paris-based energy watchdog said there is a yawning gap between the internationally-agreed climate goals and the current development of low-carbon energy options.
"Without a major acceleration in clean energy innovation, countries and companies around the world will be unable to fulfill their pledges to bring carbon emissions down to net-zero in the coming decades," the IEA warned in a special report on clean energy innovation.
"There is a stark disconnect between the climate goals that governments and companies have set for themselves and the current state of affordable and reliable energy technologies that can realize these goals," said IEA executive director Fatih Birol in a statement.
The report examines how quickly energy innovation would have to move forward to bring all parts of the economy to net zero emissions by 2050 without drastic changes to standards of living. That includes difficult to decarbonize sectors such as long-distance transport and heavy industry.
The IEA's analysis shows that getting to net zero by 2050 would depend on technologies that have not even reached the market in 2020.
"The message is very clear: in the absence of much faster clean energy innovation, achieving net-zero goals in 2050 will be all but impossible," Birol said.
The IEA identified a swathe of sectors that currently lack readily available low carbon technology options, such as shipping, trucking, aviation and heavy industries such as steel, cement and chemicals.
"Decarbonizing these sectors will largely require the development of new technologies that are not currently in commercial use," the agency said.
"However, the innovation process that takes a product from the research lab to the mass market can be long, and success is not guaranteed. It took decades for solar panels and batteries to reach the stage they are at now. Time is in even shorter supply now," it said.
To help guide policy makers, the IEA offered five key innovation principles for governments that aim to deliver net zero emissions while enhancing energy security:
First, review the processes for selecting technology portfolios for public support to ensure they are rigorous, collective, flexible and aligned with local advantages.
Second, use a range of tools to expand funding according to the various technologies, from public research and development to market incentives.
Third, consider the bigger picture to ensure that all components of key value chains are advancing evenly towards the next market application and exploiting spillovers.
Fourth, mobilize private finance to help bridge the "valley of death" by sharing the investment risks of network enhancements and commercial-scale demonstrators. This refers to the period between high upfront costs of investment in early-stage technologies and the return on that investment.
Fifth, the IEA urged governments to co-operate to share best practices, experiences and resources to tackle urgent and global technology challenges, including through existing multilateral platforms.
The IEA's innovation report provides the foundation for its Clean Energy Transitions summit scheduled for July 9.
"The summit will be the most important global event on energy and climate issues of 2020, bringing together more than 40 government ministers, industry CEOs and other energy leaders from countries representing 80% of global energy use and emissions," said Birol.
The gathering aims to build a grand coalition to help drive economic development and job creation by accelerating transitions toward clean, resilient and inclusive energy systems, he said.
