The IEA has just released its 2009 world energy outlook.
A key point the group makes is that the financial crisis has led to a plunge in energy investment — both in renewable and in the discovery of new fields — potentially creating significant economic and security issues down the road.
Compared to the Reference Scenario, cumulative incremental investment of $10.5 trillion is needed in the 450 Scenario in low-carbon energy technologies and energy efficiency by 2030. In addition to avoiding severe climate change, this cost is largely offset by economic, health and energy-security benefits. Energy bills in transport, buildings and industry alone are reduced by $8.6 trillion globally over the period 2010-2030. “The challenge for climate negotiators is to agree on instruments that will give the right incentives to ensure that the necessary investments are made and on mechanisms to finance those investments in non-OECD countries,” said Mr. Tanaka and added: “In our 450 scenario in OECD countries the carbon price reaches $50 per tonne of CO2 in 2020 and $110 in 2030.”