Session 3 - Net Zero by 2050 - IEA - Reference
Session 3 - Net Zero by 2050 - IEA - Reference
Session 3 - Net Zero by 2050 - IEA - Reference
by 2050
A Roadmap for the
Global Energy
Sector
Net Zero
by 2050
A Roadmap for the
Global Energy Sector
Net Zero by 2050 Interactive
iea.li/nzeroadmap
Revised version,
May 2021.
Information notice
found at: www.iea.org/
corrections
Reaching net-zero
emissions globally
by 2050
is a critical and
formidable goal
The energy sector is the source of around three-quarters of greenhouse gas emissions
today and holds the key to averting the worst effects of climate change, perhaps
the greatest challenge humankind has faced. Reducing global carbon dioxide (CO2)
emissions to net zero by 2050 is consistent with efforts to limit the long-term increase
in average global temperatures to 1.5˚C. This calls for nothing less than a complete
transformation of how we produce, transport and consume energy. The growing political
consensus on reaching net zero is cause for considerable optimism about the progress
the world can make, but the changes required to reach net-zero emissions globally by
2050 are poorly understood. A huge amount of work is needed to turn today’s impressive
ambitions into reality, especially given the range of different situations among countries
and their differing capacities to make the necessary changes. This special IEA report sets
out a pathway for achieving this goal, resulting in a clean and resilient energy system
that would bring major benefits for human prosperity and well-being.
The global pathway to net-zero emissions by 2050 detailed in this report requires all
governments to significantly strengthen and then successfully implement their energy
and climate policies. Commitments made to date fall far short of what is required by
that pathway. The number of countries that have pledged to achieve net-zero emissions
has grown rapidly over the last year and now covers around 70% of global emissions of
CO2. This is a huge step forward. However, most pledges are not yet underpinned by
near-term policies and measures. Moreover, even if successfully fulfilled, the pledges
to date would still leave around 22 billion tonnes of CO2 emissions worldwide in 2050.
The continuation of that trend would be consistent with a temperature rise in 2100 of
around 2.1 °C. Global emissions fell in 2020 because of the Covid-19 crisis but are already
rebounding strongly as economies recover. Further delay in acting to reverse that trend
will put net zero by 2050 out of reach.
In this Summary for Policy Makers, we outline the essential conditions for the global
energy sector to reach net-zero CO2 emissions by 2050. The pathway described in depth
in this report achieves this objective with no offsets from outside the energy sector, and
with low reliance on negative emissions technologies. It is designed to maximise technical
feasibility, cost-effectiveness and social acceptance while ensuring continued economic
growth and secure energy supplies. We highlight the priority actions that are needed
today to ensure the opportunity of net zero by 2050 – narrow but still achievable – is not
lost. The report provides a global view, but countries do not start in the same place or
finish at the same time: advanced economies have to reach net zero before emerging
markets and developing economies, and assist others in getting there. We also recognise
that the route mapped out here is a path, not necessarily the path, and so we examine
some key uncertainties, notably concerning the roles played by bioenergy, carbon
capture and behavioural changes. Getting to net zero will involve countless decisions by
people across the world, but our primary aim is to inform the decisions made by policy
makers, who have the greatest scope to move the world closer to its climate goals.
IEA. All rights reserved.
Ever-cheaper renewable energy technologies give electricity the edge in the race to
zero. Our pathway calls for scaling up solar and wind rapidly this decade, reaching annual
additions of 630 gigawatts (GW) of solar photovoltaics (PV) and 390 GW of wind by
2030, four-times the record levels set in 2020. For solar PV, this is equivalent to installing
the world’s current largest solar park roughly every day. Hydropower and nuclear, the
two largest sources of low-carbon electricity today, provide an essential foundation for
transitions. As the electricity sector becomes cleaner, electrification emerges as a crucial
economy-wide tool for reducing emissions. Electric vehicles (EVs) go from around 5% of
global car sales to more than 60% by 2030.
As the world continues to grapple with the impacts of the Covid-19 pandemic,
it is essential that the resulting wave of investment and spending to support
economic recovery is aligned with the net zero pathway. Policies should
be strengthened to speed the deployment of clean and efficient energy
technologies. Mandates and standards are vital to drive consumer spending
and industry investment into the most efficient technologies. Targets and
competitive auctions can enable wind and solar to accelerate the electricity
sector transition. Fossil fuel subsidy phase-outs, carbon pricing and other
market reforms can ensure appropriate price signals. Policies should limit
or provide disincentives for the use of certain fuels and technologies, such
as unabated coal-fired power stations, gas boilers and conventional internal
combustion engine vehicles. Governments must lead the planning and
incentivising of the massive infrastructure investment, including in smart
transmission and distribution grids.
Annual CO2 emissions savings in the net zero pathway, relative to 2020
Providing electricity to around 785 million people that have no access and clean cooking
solutions to 2.6 billion people that lack those options is an integral part of our pathway.
Emissions reductions have to go hand-in-hand with efforts to ensure energy access for all
by 2030. This costs around USD 40 billion a year, equal to around 1% of average annual
energy sector investment, while also bringing major co-benefits from reduced indoor air
pollution.
Some of the changes brought by the clean energy transformation may be challenging
to implement, so decisions must be transparent, just and cost-effective. Governments
need to ensure that clean energy transitions are people-centred and inclusive. Household
energy expenditure as a share of disposable income – including purchases of efficient
appliances and fuel bills – rises modestly in emerging market and developing economies
in our net zero pathway as more people gain access to energy and demand for modern
energy services increases rapidly. Ensuring the affordability of energy for households
demands close attention: policy tools that can direct support to the poorest include tax
credits, loans and targeted subsidies.
Instead of fossil fuels, the energy sector is based largely on renewable energy. Two-thirds
of total energy supply in 2050 is from wind, solar, bioenergy, geothermal and hydro energy.
Solar becomes the largest source, accounting for one-fifth of energy supplies. Solar PV
capacity increases 20-fold between now and 2050, and wind power 11-fold.
Net zero means a huge decline in the use of fossil fuels. They fall from almost four-fifths of
total energy supply today to slightly over one-fifth by 2050. Fossil fuels that remain in 2050
are used in goods where the carbon is embodied in the product such as plastics, in facilities
fitted with CCUS, and in sectors where low-emissions technology options are scarce.
Electricity accounts for almost 50% of total energy consumption in 2050. It plays a key
role across all sectors – from transport and buildings to industry – and is essential to produce
low-emissions fuels such as hydrogen. To achieve this, total electricity generation increases
over two-and-a-half-times between today and 2050. At the same time, no additional new final
investment decisions should be taken for new unabated coal plants, the least efficient coal
plants are phased out by 2030, and the remaining coal plants still in use by 2040 are retrofitted.
By 2050, almost 90% of electricity generation comes from renewable sources, with wind and
solar PV together accounting for nearly 70%. Most of the remainder comes from nuclear.
Emissions from industry, transport and buildings take longer to reduce. Cutting industry
emissions by 95% by 2050 involves major efforts to build new infrastructure. After rapid
innovation progress through R&D, demonstration and initial deployment between now and
2030 to bring new clean technologies to market, the world then has to put them into action.
Every month from 2030 onwards, ten heavy industrial plants are equipped with CCUS, three
new hydrogen-based industrial plants are built, and 2 GW of electrolyser capacity are added at
industrial sites. Policies that end sales of new internal combustion engine cars by 2035 and boost
electrification underpin the massive reduction in transport emissions. In 2050, cars on the road
worldwide run on electricity or fuel cells. Low-emissions fuels are essential where energy needs
cannot easily or economically be met by electricity. For example, aviation relies largely on biofuels
and synthetic fuels, and ammonia is vital for shipping. In buildings, bans on new fossil fuel boilers
need to start being introduced globally in 2025, driving up sales of electric heat pumps. Most old
buildings and all new ones comply with zero-carbon-ready building energy codes.1
1
A zero-carbon-ready building is highly energy efficient and either uses renewable energy directly or uses an
energy supply that will be fully decarbonised by 2050, such as electricity or district heat.
Governments must put in place long-term policy frameworks to allow all branches
of government and stakeholders to plan for change and facilitate an orderly
transition. Long-term national low-emissions strategies, called for by the Paris
Agreement, can set out a vision for national transitions, as this report has done
on a global level. These long-term objectives need to be linked to measurable
short-term targets and policies. Our pathway details more than 400 sectoral and
technology milestones to guide the global journey to net zero by 2050.
Clean electricity generation, network infrastructure and end-use sectors are key
areas for increased investment. Enabling infrastructure and technologies are vital for
transforming the energy system. Annual investment in transmission and distribution grids
expands from USD 260 billion today to USD 820 billion in 2030. The number of public
charging points for EVs rises from around 1 million today to 40 million in 2030, requiring
annual investment of almost USD 90 billion in 2030. Annual battery production for EVs
leaps from 160 gigawatt-hours (GWh) today to 6 600 GWh in 2030 – the equivalent
of adding almost 20 gigafactories2 each year for the next ten years. And the required
roll-out of hydrogen and CCUS after 2030 means laying the groundwork now: annual
investment in CO2 pipelines and hydrogen-enabling infrastructure increases from
USD 1 billion today to around USD 40 billion in 2030.
2
Battery gigafactory capacity assumption = 35 gigawatt-hours per year.
Governments have a key role in enabling investment-led growth and ensuring that
the benefits are shared by all. There are large differences in macroeconomic impacts
between regions. But government investment and public policies are essential to attract
large amounts of private capital and to help offset the declines in fossil fuel income
that many countries will experience. The major innovation efforts needed to bring
new clean energy technologies to market could boost productivity and create entirely
new industries, providing opportunities to locate them in areas that see job losses in
incumbent industries. Improvements in air quality provide major health benefits, with 2
million fewer premature deaths globally from air pollution in 2030 than today in our net
zero pathway. Achieving universal energy access by 2030 would provide a major boost
to well-being and productivity in developing economies.
technologies such as hydrogen, CCUS and offshore wind that are needed to tackle
emissions in sectors where reductions are likely to be most challenging.
The energy transition requires substantial quantities of critical minerals, and their
supply emerges as a significant growth area. The total market size of critical minerals
like copper, cobalt, manganese and various rare earth metals grows almost sevenfold
between 2020 and 2030 in the net zero pathway. Revenues from those minerals are larger
than revenues from coal well before 2030. This creates substantial new opportunities
for mining companies. It also creates new energy security concerns, including price
volatility and additional costs for transitions, if supply cannot keep up with burgeoning
demand.
The rapid electrification of all sectors makes electricity even more central to energy
security around the world than it is today. Electricity system flexibility – needed to balance
wind and solar with evolving demand patterns – quadruples by 2050 even as retirements
of fossil fuel capacity reduce conventional sources of flexibility. The transition calls for
major increases in all sources of flexibility: batteries, demand response and low-carbon
flexible power plants, supported by smarter and more digital electricity networks. The
resilience of electricity systems to cyberattacks and other emerging threats needs to be
enhanced.
Underpinning all these changes are policy decisions made by governments. Devising
cost-effective national and regional net zero roadmaps demands co-operation among all
parts of government that breaks down silos and integrates energy into every country’s
policy making on finance, labour, taxation, transport and industry. Energy or environment
ministries alone cannot carry out the policy actions needed to reach net zero by 2050.
Changes in energy consumption result in a significant decline in fossil fuel tax revenues.
In many countries today, taxes on diesel, gasoline and other fossil fuel consumption are
an important source of public revenues, providing as much as 10% in some cases. In the
net zero pathway, tax revenue from oil and gas retail sales falls by about 40% between
2020 and 2030. Managing this decline will require long-term fiscal planning and budget
reforms.
Global energy-related CO2 emissions in the net zero pathway and Low International
Co-operation Case
2020
From 2021: almost 80% of TES
No new unabated
coal plants approved 33.9
Total CO2 emissions (Gt)
for development From 2021:
No new oil and gas
Industry fields approved for
8.5Gt
development;
Solar PV and wind Buildings
2.9Gt
no new coal mines
accounts for almost or mine extensions
10% of total electricity Other
1.9Gt
generation
Power Transport
13.5Gt 7.2Gt
Universal
energy access
All new buildings are
2030
Most new clean zero-carbon-ready
technologies in heavy 21.1
industry demonstrated Total CO2 emissions (Gt)
at scale
Industry
6.9Gt
Buildings
1.8Gt
Other
0.9Gt 60% of global car
sales are electric
Power Transport
5.8Gt
1 020 GW annual 5.7Gt
2035
motor sales are
best in class Most appliances and
12.8 cooling systems sold
Total CO2 emissions (Gt)
are best in class
Capacity fitted with
CCUS or co-firing
hydrogen-based
fuels reaches 6% of Industry
No new internal
total generation 5.2Gt
Buildings combustion
1.2Gt
engine car sales
Other
0.1Gt
Transport
4.1Gt
Power
Overall net-zero emissions 2.1Gt
electricity in advanced
economies
Around 90% of
existing capacity in
heavy industries reaches
end of investment cycle
50% of existing
6.3 buildings retrofitted to
2040
Total CO2 emissions (Gt) zero-carbon-ready levels
Net-zero emissions
electricity globally
Industry
3.5Gt
Buildings 50% of fuels used
0.7Gt
in aviation are
Power
Phase-out of all -0.1Gt
Transport
low-emissions
unabated coal and Other 2.7Gt
-0.5Gt
oil power plants
Electrolyser capacity
reaches 2 400 GW
Oil demand is 50%
of 2020 level
2050
0
33.9
Total CO2 emissions (Gt)
Renewables reach Total CO2 emissions (Gt)
almost 90% of total More than 85%
electricity generation of buildings are
zero-carbon-ready
Industry
0.5Gt
Buildings
Power 0.1Gt
-0.4Gt
Transport
0.7Gt
Other
-1Gt
Almost 70% of
electricity generation
globally from solar PV
and wind
520 Mt
low-carbon
hydrogen
This publication and any map included herein are without prejudice to the status of
or sovereignty over any territory, to the delimitation of international frontiers and
boundaries and to the name of any territory, city or area.