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The report provides a summary of the series of Issue Notes that were prepared to inform the Strategic Dialogues under Pillar 1 of the Climate Club work programme, on Advancing ambitious and transparent climate change mitigation policies. The report collects and discusses the evidence base for the Dialogues, focussing on the causes and relevance of carbon leakage, both positive and negative, and it explores both domestic measures and international co-operation strategies to address it.
This report explores evidence-based action areas to increase and accelerate the mobilisation of private finance for climate action in developing countries, and the role of international public finance providers in doing so. It draws on best-available data to provide disaggregated analysis of the sectoral, geographic and other features of private finance mobilised by public climate finance and presents key economy-wide, sector-specific, and institutional challenges to private finance mobilisation. The analysis is anchored in the context of the USD 100 billion climate finance goal, initially set for 2020 and extended to 2025, while also providing insights related to mobilising private finance for climate action in developing countries more broadly.
A massive scaling up of investment is essential in emerging and developing economies to sustainably meet rising demand for energy, as well as to ensure that climate targets are met. Getting on track for net zero emissions by 2050 will require clean energy spending in emerging and developing economies to more than triple by 2030 – far beyond the capacity of public financing alone and therefore demanding an unprecedented mobilization of private capital.
This special report by the International Energy Agency (IEA) and International Finance Corporation (IFC) examines how to scale up private finance for clean energy transitions by quantifying the investments required in different regions and sectors to build modern, clean energy systems, including achieving universal access. The new global energy economy represents a huge opportunity for growth and employment in emerging and developing economies. This report’s analysis identifies key barriers and how to remove them – and sets out the policy actions and financial instruments that can deliver a major acceleration in private capital flows for the energy transition.
This report was commissioned by Korea's Ministry of Trade, Industry and Energy and carried out jointly by the International Energy Agency (IEA) and the Korea Energy Economics Institute. The objective of the study was to provide high-level policy recommendations on Korea’s clean energy transition from coal in the power sector. The report covers a detailed review of policy and market developments around Korea’s transition to net zero. The scope of the report includes all sectors of the economy, industry and all the regions across the world, where we extract the main recommendations that are applicable to the case of Korea.
Currently, the power sector is the largest CO2-emitting sector and coal is the single biggest source of CO2 emissions, as it is the backbone of many electricity systems. Thus, coal power plants have been a target for reaching net zero emissions by 2050 for long time. Korea has firm objectives to achieve carbon neutrality by 2050, aiming to accelerate the clean energy transition of coal power plants. Policy recommendations were formulated around two priorities: affordable and secure supply of electricity and people-centred transition.
This report examines the evolving challenges of maintaining energy security in the context of clean energy transitions on the pathway to net zero emissions. The report reflects on the security implications of the triple global crisis, the climate emergency, the global energy crisis and the social and economic implications of the Covid-19 pandemic.
The report highlights key energy security concerns during energy transitions and provides governments, notably within the Group of Twenty (G20), with policy recommendations for maintaining and improving energy security, while accelerating clean energy transitions to address the triple crises. In the context of Indonesia’s G20 Presidency, the Ministry of Energy and Mineral Resources invited the International Energy Agency (IEA) to produce a second edition of its Security of Clean Energy Transitions report, the first having been published in 2021, building on the G20 Naples Principles.
In the run up to the Bali G20 Energy Transitions Ministerial in September 2022, this report is intended to support discussions among the G20 countries and further elaborate on the G20 Naples Principles, agreed at the G20 energy ministers’ meeting in Naples in 2021, by providing analysis, insights and recommendations.
Achieving net zero emissions by 2050 will require a significant reduction in electricity sector emissions, with around half of these coming from systems that currently have liberalised electricity markets. In order to support a rapid decarbonisation of power systems, the design of these markets will need to evolve to ensure that they maximise the value delivered by existing and new low-carbon technologies. When policymakers design electricity markets, they need to consider the interactions between all parts of the market including wholesale, retail and capacity markets. At the same time, it is essential to ensure synergies with low-carbon investment frameworks and other decarbonisation policies.
This report identifies key principles for designing different parts of the market based on evidence from electricity markets globally and provides actionable guidelines to help policy makers match decarbonisation pledges with actions. With short-term wholesale markets as the starting point for generating efficient price signals, the report systematically considers the different parts of electricity markets, perspectives for integrating technologies such as distributed resources and storage, and how the design process fits with other decarbonisation policies and system planning. The principles derived from this analysis provide policy makers with market design tools in the context of new technologies and low-carbon transitions.
Ongoing energy transitions and decarbonisation efforts are poised to bring profound shifts in the sector’s employment, including massive new opportunities for job creation in clean energy. At the same time, traditional energy sectors will experience declining job opportunities. In most cases, this will require the development of both new programmes of education, certification and vocational training along with targeted upskilling or reskilling programmes for the existing workforce. Several governments, companies and industry organisations, among other stakeholders, are already developing robust educational and skills training programmes to meet the challenges of the workforce transition. Therefore, a review of existing skills and training programmes can provide valuable insights for others embarking on their own energy transitions. This report compiles a collection of case studies from around that world that showcase programmes designed to address skills development of workforces for energy transitions.
Secure, resilient and sustainable energy technology supply chains are central to successful clean energy transitions. The race to net zero emissions will redefine global energy security and shift the focus from the supply of fossil fuels to the supply of the minerals, materials and manufacturing capacity needed to deliver clean energy technologies. This report, Securing Clean Energy Technology Supply Chains, assesses current and future supply chain needs for key technologies – including solar PV, batteries for electric vehicles and low emissions hydrogen – and provides a framework for governments and industry to identify, assess and respond to emerging opportunities and vulnerabilities. The IEA highlights five key strategies to build secure, resilient and sustainable supply chains: Diversify, Accelerate, Innovate, Collaborate and Invest.
This report has been prepared for the Sydney Energy Forum on 12-13 July 2022. The IEA is pleased to co-host the Forum alongside the Australian Government and in partnership with the Business Council of Australia. The report is a precursor to the 2023 edition of Energy Technology Perspectives, an IEA flagship report, which will present detailed analysis on what is needed to develop and expand a range of clean energy technology supply chains to achieve net zero emissions.
Solar PV is a crucial pillar of clean energy transitions worldwide, underpinning efforts to reach international energy and climate goals. Over the last decade, the amount of solar PV deployed around the world has increased massively while its costs have declined drastically. Putting the world on a path to reaching net zero emissions requires solar PV to expand globally on an even greater scale, raising concerns about security of manufacturing supply for achieving such rapid growth rates – but also offering new opportunities for diversification.
This special report examines solar PV supply chains from raw materials all the way to the finished product, spanning the five main segments of the manufacturing process: polysilicon, ingots, wafers, cells and modules. The analysis covers supply, demand, production, energy consumption, emissions, employment, production costs, investment, trade and financial performance, highlighting key vulnerabilities and risks at each stage. Because diversification is one of the key strategies for reducing supply chain risks, the report assesses the opportunities and challenges of developing solar PV supply chains in terms of job creation, investment requirements, manufacturing costs, emissions and recycling. Finally, the report summarises policy approaches that governments have taken to support domestic solar PV manufacturing and provides recommendations based on those.
The EU4Energy programme is a six-year initiative led and funded by the European Union. One of its key goals is to enable greater application of evidence-based energy policy and decision-making in participating countries in Eastern Europe and Central Asia. The International Energy Agency (IEA), the Energy Community and the Energy Charter support the project, with the IEA taking lead responsibility for the policy development dimensions. As part of this programme, the IEA has prepared this high-level policy roadmap to help inform and guide policy practitioners as they seek to develop and implement policies to strengthen power system security in Kyrgyzstan, with a focus on improving power system reliability and resilience during periods of water shortage.
The analysis and proposals advanced in this document provide an integrated approach incorporating a suite of practical regulatory, supply-side and demand-side measures that reflect international experience and best practices. It avoids detailed prescription, recognising that Kyrgyz policy practitioners are better placed to draw on their local knowledge and experience to address practical details as they emerge. Accordingly, the roadmap’s proposed measures and pathways are intended to inform and guide the development of effective policies and programmes to help strengthen power system reliability and resilience, especially during periods of water shortage.
This paper begins by discussing power system security concepts and principles, focusing on how power system security is managed during normal operating conditions and how this can change in hydro-dependent power systems during periods of sustained water shortage. A description of the policy context for power system security in Kyrgyzstan follows. It highlights the key challenges for strengthening power system security, and provides an overview of the policy, legal, regulatory and institutional arrangements governing power system security in Kyrgyzstan. Finally, an integrated high-level policy roadmap is presented, including proposed strategic goals and a range of practical policy measures to pursue power system security over the next decade.
This work is the first region-focused energy outlook to be published by the IEA since the onset of the Covid-19 pandemic and the 26th Conference of the Parties in Glasgow, where participants reaffirmed their commitments to tackle climate change. The challenges facing energy policy makers – to provide clean, secure and affordable energy to all – have been made even more urgent by Russia’s invasion of Ukraine. This report highlights how countries in Southeast Asia can respond to the current energy crisis in ways that improve their energy security and also advance worldwide efforts to mitigate climate change.
This Solar Energy Policy in Uzbekistan Roadmap is part of the EU4Energy programme, a five-year initiative funded by the European Union. EU4Energy’s aim is to support the development of evidence-based energy policy design and data capabilities in Eastern Partnership and Central Asian countries, of which Uzbekistan is a part.
The main purpose of this roadmap is to guide policy making at all levels to maximise the use of solar energy in Uzbekistan, and to serve as a precursor for a national solar energy strategy. The government of Uzbekistan is invited to consider incorporating the actions outlined in this roadmap so as to enhance the use of solar resources into a dedicated solar energy strategy.
This roadmap primarily focuses on increasing solar generation in Uzbekistan's electricity mix, but also touches upon solar heat potential to reduce its dependence on fossil fuels.
The roadmap aims to help Uzbekistan formulate its strategies and plans for solar energy deployment across all levels of government. It is also intended to support and guide the activities of other key stakeholders.
This roadmap starts with an overview of the prevailing institutional framework related to the renewables and electricity sectors respectively, and the related policy landscape. The wider context of both the renewables and electricity sectors in Moldova is then outlined. This is followed by the body of the roadmap, which focuses on: Removing barriers to the deployment of renewables; Establishing flexible electricity markets with enhanced regional co-ordination; Enhancing technical flexibility of the power system. In these three focus areas, a substantial amount of knowledge, experience and expertise has already been accrued by other countries and regions in their own energy transitions.
This roadmap therefore provides relevant examples from international experiences with a view to providing an idea of the possibilities for Moldova.
The roadmap outlines specific policies and actionable items in order to apply these international best practice examples, taking into account the particular characteristics of the Moldovan electricity system. Finally, these recommended actions are put in a co ordinated package of measures to be implemented for a vision of a secure, clean and modern electricity supply generated from domestic VRE sources. This includes a timeline of measures to be targeted over three distinct periods in the short-, medium- and long-term to deliver this modern electricity system, and in turn provide the social, economic and environmental benefits from Moldova’s clean energy transition.
The OECD Nuclear Energy Agency (NEA) Forum on Stakeholder Confidence (FSC) Annotated Glossary is a review of concepts central to societal decision making about radioactive waste management. It records the evolution in understanding that has taken place in the group as the FSC has worked with these concepts over time. This should be a useful resource not only for new FSC participants but also for others: the latest update of this annotated glossary forms a good reference handbook for future texts regarding societal aspects of radioactive waste management and its governance.
This report examines the evolving nature of energy security in the context of clean energy transitions in general and on the pathway to net-zero emissions in particular. It highlights emerging energy security concerns and provides recommendations to foster international collaboration, notably within the Group of Twenty (G20).
In the context of Italy’s G20 presidency, its Ministry of Economic Development requested the International Energy Agency (IEA) to undertake this Security of Clean Energy Transitions report. It aims to support discussions among the G20 countries and to provide insights and direction for the review and update of the G20 energy collaboration principles, which were endorsed at the G20 Brisbane Leaders’ Summit in 2014.
The International Energy Agency (IEA) regularly conducts in-depth peer reviews of the energy policies of its member countries. This process supports energy policy development and encourages the exchange of international best practices and experiences.
Since the last IEA review in 2015, Spain has solved a long-standing issue of tariff deficits in its electricity and gas sectors and closed all of its coal mines, which has allowed it to place the energy transition at the forefront of its energy and climate change policies.
The current Spanish framework for energy and climate is based on the 2050 objectives of national climate neutrality, 100% renewable energy in the electricity mix, and 97% renewable energy in the total energy mix. As such, it is centred on the massive development of renewable energy, energy efficiency, electrification and renewable hydrogen.
Notwithstanding its considerable progress to date on decarbonising and increasing the share of renewables in the electricity sector, Spain’s total energy mix is still heavily dominated by fossil fuels. Notably, the transport, industry and buildings sectors all have considerable work ahead of them to meet the country’s targets for decarbonisation and higher shares of renewables.
When all of Spain’s plans and strategies are implemented, a completely different energy sector will emerge in which fossil fuels are no longer dominant and end-user sectors are mostly electrified. Such a transformed energy landscape will come with new challenges and will provide new opportunities.
In this report, the IEA provides energy policy recommendations to help Spain effectively manage this transformation of its energy sector.
Electricity is an integral part of all modern economies, supporting a range of critical services from healthcare to banking to transportation. Secure supply of electricity is thus of paramount importance. The structural change from an electricity system based on thermal generation powered by fossil fuels towards a system based on variable renewable energy continues apace at various stages across the globe. Digitalisation tools such as smart grids and distributed energy resources, along with the electrification of end uses put electricity increasingly at the forefront of the entire energy system. As a result, governments, industries and other stakeholders will need to improve their frameworks for ensuring electricity security through updated policies, regulations and market designs. This report details the new approaches that will be needed in electricity system planning, resource adequacy mechanisms, incentives for supply- and demand-side flexibility, short-term system balancing and stability procedures. It provides examples and case studies of these changes from power systems around the world, describes existing frameworks to value and provide electricity security, and distils best practices and recommendations for policy makers to apply as they adjust to the various trends underway.
An overview of the prevailing institutional framework related to bioenergy and associated policies opens this roadmap, followed by a description of the wider context of bioenergy supply and consumption in Georgia.
The body of the roadmap focuses on:
- Ensuring sustainable biomass supplies
- Modernising the consumption of biomass.
Current Georgian practices are summarised for these two areas, and examples of international best practices in bioenergy from IEA member countries are offered. The roadmap then outlines the policies, technologies and management practices needed for Georgia to harness its biomass potential securely and sustainably. These are presented as a set of overarching policy actions, underpinned by detailed biomass supply and consumption recommendations.
The recommended actions are compiled as a co-ordinated package of measures to be implemented during 2020-25 to modernise Georgia’s bioenergy industry and make it sustainable by 2030. The social, economic and environmental benefits for the country are summarised as a vision of Georgia’s modern bioenergy industry in 2030.
The global power sector will change significantly in the coming years, as variable renewable resources are deployed on a large scale and new flexibility options appear, such as energy storage devices. In this context, thermal plants that use fossil fuels will experience a reduction in their share of power sector output, particularly in advanced economies, as efforts to achieve climate goals are increased. In developing economies, overall electricity demand will increase as power demand is pushed up by economic growth, urbanisation and increasing energy access. This report clarifies the role that thermal plants will play in the power systems of emerging economies in different IEA scenarios, including the Stated Policies Scenario and Sustainable Development Scenario of the 2019 World Energy Outlook. International co-operation and knowledge sharing can play significant roles in helping emerging economies carry out an affordable energy transition.
Since the scale of the economic crisis began to emerge, the IEA has been leading the calls for governments to make the recovery as sustainable and resilient as possible. This means immediately addressing the core issues of global recession and soaring unemployment – and doing so in a way that also takes into account the key challenge of building cleaner and more secure energy systems.
As they design economic recovery plans, policy makers are having to make enormously consequential decisions in a very short space of time. These decisions will shape economic and energy infrastructure for decades to come and will almost certainly determine whether the world has a chance of meeting its long-term energy and climate goals.
The Sustainable Recovery Plan set out in this report shows governments have a unique opportunity today to boost economic growth, create millions of new jobs and put global greenhouse gas emissions into structural decline. This work was done in collaboration with the International Monetary Fund.