Energy Technology Revolution Underway, But Must Be Sustained
A recent report from the International Energy Agency (IEA) indicates that an energy technology revolution is now underway. However, to sustain the “revolution,” the report, Energy Technology Perspectives 2010, underscores the need for policy support that will emphasize energy efficiency and spark rapid growth of renewable energy to reduce energy-related carbon dioxide emissions that could nearly double by 2050 under current fossil fuel use.
The IEA says global investment in renewable power generation reached an all-time high of $112 billion in 2008, then remained broadly stable in 2009 despite the economic downturn. Developed countries have also accelerated their energy efficiency gains, while funding for low-carbon energy research increased by one-third between 2005 and 2008.
The 25x’25 Alliance has long promoted the policies and funding that are necessary to accelerate the development of zero-to-low-carbon technologies that harness wind and solar resources, explore and extract geothermal energy, more efficiently and cost effectively produce biofuels, and improve the transmission of power. Advanced technology is critical for a new energy future. Policies that enhance the rapid evolution of existing renewable energy and energy efficiency technologies, and the wave of new inventions that will come with that evolution, will optimize our adaptation to a reduced-carbon economy.
Sustaining these advances in technology will not come cheaply. The IEA says the shift could increase global spending by $45 trillion over the baseline scenario over the next 40 years. However, the report points out that such spending will have positive returns on investment, along with other economic, social, and environmental benefits.
It is critical to remove barriers to the development and transfer of low-carbon technology. Advanced energy technology will not only help address emissions, but also will help reduce the dependence borne by the United States and the rest of the world on oil generated by regimes that are unstable or have a self-serving agenda. Technology growth also brings with it the development of new economic opportunities and markets, creates good quality jobs, and in many countries, reduces poverty.
Unfortunately, there remains a lack of access to finance, both private and public, that imposes a barrier to technology development and deployment. And the absence of a long-term, comprehensive energy policy in many developed nations, particularly in the United States, remains a major impediment to the development and deployment of low-carbon technology.
Calls for an increase in low-carbon R&D spending must be taken seriously. The EIA report offers some critical guidance by recognizing the role of technology in enabling countries at all stages of development to reach environmental and sustainable development goals simultaneously. Policy makers here in the United States and around the globe should provide focused incentives, including government-led financing to reduce the higher risks associated with large scale low-carbon technology deployment.
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