The Carbon Trust: New collaborative approach can reduce cost of clean energy by US$550 billion by 2025
November 30 2015 - 07:01PM
Business Wire
The world can save an estimated US$550 billion on the cost of
deploying clean energy technologies over the next decade if
countries work together to accelerate innovation by unlocking
global collaboration. This is one of the key findings in a new
report, United Innovations: cost-competitive clean energy through
global collaboration, published today by the Carbon Trust, with
funding from the UK Foreign and Commonwealth Office Prosperity
Fund.
Most technologies needed for the transition to a low carbon
energy system already exist, but costs need to be reduced and
deployment accelerated to have any chance of meeting 2050 climate
targets. Global collaboration can help, but it has proven extremely
difficult to generate real momentum for action.
Over the past two decades there have been hundreds of bilateral
and multilateral commitments on low carbon technology innovation.
Some have delivered success but the overall impact has been less
than expected. In many cases the original intentions behind
agreements have been lost and implementation has been limited.
Carbon Trust analysis estimates that investments of US$5
trillion will be needed to deploy low carbon energy technologies by
2025. This could be reduced by over US$550 billion through
collaborative innovation.
While competition in the private sector remains essential, a
lack of collaboration between national programmes runs the risk of
duplicating efforts. More significantly, a lack of effective
coordination has resulted in the emergence of a number of barriers,
such as misaligned incentives and contradicting regulatory regimes,
which prevent private sector involvement at scale.
Tom Delay, Chief Executive of the Carbon Trust said:
“Transitioning to a low carbon energy system
is beyond the capability of any single country. Climate change is a
global problem that needs global solutions. We are seeing
unprecedented levels of commitment from COP21 in Paris, but to
ensure we keep to a 2 degree scenario the road through Paris cannot
only be paved with good intentions.
We need action, we need more of it and we
need it now. We cannot afford to wait any longer. The technological
foundations of the transition to a low carbon energy system must be
laid in the next ten years.
We must work together to make it happen, but
we recognise that collaboration can be a particularly difficult
endeavour. The good news is that working together is good for a
country’s national interests, creating a bigger share of a bigger
prize.”
The report also highlights that newly industrialising economies
and developing countries represent 90 percent of growth in future
energy consumption. They have faced difficulties in accessing and
adapting low carbon technologies. But they can overcome this
challenge by working with developed countries as active
participants, not passive recipients, of technology transfers.
The Carbon Trust has developed a framework for international
collaboration that addresses these barriers and provides mechanisms
for streamlining existing initiatives.
Full report: www.carbontrust.com/unitedinnovations
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