Global net zero emissions targets can only be met with a “major acceleration” in clean energy innovation, according to a report released by the International Energy Agency.
Many of the clean energy technologies that are available today, such as offshore wind turbines, electric vehicles and certain applications of carbon capture, utilisation and storage, need a “continued push on innovation” to bring down costs and accelerate deployment, it said.
The Special Report on Clean Energy Innovation found around half of the cumulative emissions reductions that would move the world onto a sustainable trajectory come from four main technology approaches.
These are electrification of end-use sectors such as heating and transport, application of carbon capture and storage, low-carbon hydrogen, and hydrogen-derived fuels and the use of bioenergy.
“However, each of these areas faces challenges in making all parts of its value chain commercially viable in the sectors where reducing emissions is hardest,” said the report.
Around 35% of the cumulative carbon dioxide emissions reductions needed to shift to a sustainable path come from technologies currently at the prototype or demonstration phase, the study found.
A further 40% of the reductions rely on technologies not yet commercially deployed on a mass-market scale.
The report highlighted that aligning investment cycles with net zero targets can create large markets for new technologies and avoid huge amounts of “locked in” emissions.
“For some energy sectors, 2050 is just one investment cycle away, making the timing of investments and the availability of new technologies critical,” said the report.
If key technologies become available by 2030 to take advantage of the next round of plant refurbishments in heavy industry, nearly 60 gigatonnes of carbon emissions could be avoided.
IEA executive director Fatih Birol (pictured) said: “This report examines how quickly energy innovation would have to move forward to bring all parts of the economy – including challenging sectors like long-distance transport and heavy industry – to net-zero emissions by 2050 without drastic changes to how we go about our lives.
“This analysis shows that getting there would hinge on technologies that have not yet even reached the market today. 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.”
To help guide policy makers at this challenging time, the IEA report offers five key innovation principles for governments:
Review the processes for selecting technology portfolios for public support to ensure that they are rigorous, collective, flexible and aligned with local advantages.
Use a range of tools – from public research and development to market incentives – to expand funding according to the different technologies.
Address all links in the value chain to ensure that all components of key value chains are advancing evenly towards the next market application and exploiting “spillovers”.
Mobilise private finance to help bridge the “valley of death” by sharing the investment risks of network enhancements and commercial-scale demonstrators.
Cooperate to share best practices, experiences and resources to tackle urgent and global technology challenges, including via existing multilateral platforms.