Released November 01, 2023 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The World Energy Outlook 2023 report, released last week by the International Energy Agency (IEA) (Paris, France), predicted the world could avert the worst impacts of global warming if it undertook the following five steps by 2030:
Perhaps to dispel global warming resignation, the IEA analyzed how far the U.S. has traveled on the clean energy road in the last two years, following enactment of the Infrastructure Investment and Jobs Act (IIJA) in 2021 and the Inflation Reduction Act (IRA), in 2022. As it seeks to decarbonize, the U.S. is blessed in some ways and cursed in others. One of its blessings: It is among the world's wealthiest nations, and thus can afford hefty government subsidies to reorient its energy ecosystem. A curse: It has abundant supplies of hydrocarbons than can be extracted at a relatively low cost. However, the politically charged rallying cry of "Energy independence!" could undo much of the President Joe Biden's clean energy agenda.
The IEA report shows what can be accomplished in a few short years when state and federal authorities act with a shared sense of urgency and purpose. The agency recounted major actions that have advanced the fortunes of clean energy:
Click on the image at right to see projected CO2 emissions from the energy sector in the IEA's 2021 World Energy Outlook and its 2023 World Energy Outlook.
The same surge can be found with clean technology growth. In just two years, enactment of clean energy policies had dramatically increased the projected number of electric vehicles that will be on the road in 2030, and the amount of low-emissions hydrogen being produced by that year. Solar photovoltaic also is expected to grow significantly compared to what was predicted in the agency's World Energy Outlook 2021, while wind power, a more mature technology, is expected to have a more muted gain.
Click on the image at right to see growth in U.S. clean energy technologies over the last two years.
"The United States has mobilized unprecedented levels of government support to boost clean energy and reduce GHG emissions," the report noted. Under IEA's Stated Policies scenario, the IIJA and the IRA, in concert with other initiatives, will lower overall U.S. CO2 emissions nearly 40% by 2030 relative to 2005.
The force of government support is seen most directly in the power sector, where CO2 emissions fall 50% from current levels by 2030, mainly due to more generous tax credits for renewable energy, extensions of the lifetime of nuclear power plants and expanded incentives for battery storage and carbon capture, utilization and storage (CCUS) technology.
Transportation is another sector where government action has moved the needle: tax credits for electric cars and investment in charging infrastructure are predicted to boost annual sales of electric cars rising from 1 million in 2022 and 1.6 million in 2023 to close to 8 million in 2030, by which time they are expected to account for 50% of new car registrations.
Through integrated and concerted policy actions, these investments further accelerate reductions in U.S. demand for coal, the IEA report said. The continued rise of renewables is expected to cut demand for the black rock by 75% from current levels by 2030. The agency predicted that natural gas demand will rise slightly in the short term, but it peaks in the mid-2020s and then begins to decline, mostly because of lower demand in the power and buildings sectors. By 2030, the wider use of electric vehicles, coupled with higher fuel efficiency standards, will cut oil demand by nearly 11%, or roughly two million barrels per day (BBL/d) from current consumption of 18 million BBL/d by 2030.
"The Inflation Reduction Act, the Infrastructure Investment and Jobs Act and other recent policies have reshaped the U.S. energy outlook," the IEA report said. "Targeting a broad set of technologies across many sectors, the incentives now available are making clean energy investment more attractive, prompting faster deployment of clean energy technologies and the development of new clean energy manufacturing capacities in the United States. Our updated assessment ... clearly demonstrates the significant impact of these policies when compared to the outlook prior to these policies in the Stated Policies Scenario from the World Energy Outlook-2021."
The U.S. is the world's largest economy. A fast-growing China is No. 2. The IEA report only hints at how the worldwide fight against global warming could be strengthened if China's leaders enacted policies like the IIJA and the IRA.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
- Tripling global renewable electric capacity
- Doubling the rate of energy efficiency improvements
- Slashing methane emissions from fossil fuel operations by 75%
- Implementing innovative, large-scale financing mechanisms to triple clean energy investments in emerging and developing economies
- Enacting measures to ensure an orderly decline in the use of fossil fuels, including an end to new approvals of unabated coal-fired power plants
Perhaps to dispel global warming resignation, the IEA analyzed how far the U.S. has traveled on the clean energy road in the last two years, following enactment of the Infrastructure Investment and Jobs Act (IIJA) in 2021 and the Inflation Reduction Act (IRA), in 2022. As it seeks to decarbonize, the U.S. is blessed in some ways and cursed in others. One of its blessings: It is among the world's wealthiest nations, and thus can afford hefty government subsidies to reorient its energy ecosystem. A curse: It has abundant supplies of hydrocarbons than can be extracted at a relatively low cost. However, the politically charged rallying cry of "Energy independence!" could undo much of the President Joe Biden's clean energy agenda.
The IEA report shows what can be accomplished in a few short years when state and federal authorities act with a shared sense of urgency and purpose. The agency recounted major actions that have advanced the fortunes of clean energy:
- Inflation Reduction Act (IRA): Committed the U.S. to invest nearly $370 billion to increase energy security and fight climate change.
- Infrastructure Investment and Jobs Act (IIJA): Pledged about $190 billion to expand clean energy and mass transit infrastructure.
- Methane Emissions Reduction Action Plan: Seeks to cut methane emissions from the largest sources, including oil and natural gas production, landfills and the agricultural sector.
- Overall greenhouse gas (GHG) reduction commitment: Cut GHG emissions by 50‐52% by 2030 from 2005 levels, with a national target to reach net zero GHG emissions by 2050.
- State-level clean electricity targets: 22 states, Puerto Rico and the District of Columbia have adopted 100% carbon-free electricity goals by 2050.
- Zero emissions vehicles (ZEV) targets: California ZEV mandate for cars begins in 2026, rising to 100% of new vehicle sales in 2035. Other states have adopted this mandate.
Click on the image at right to see projected CO2 emissions from the energy sector in the IEA's 2021 World Energy Outlook and its 2023 World Energy Outlook.The same surge can be found with clean technology growth. In just two years, enactment of clean energy policies had dramatically increased the projected number of electric vehicles that will be on the road in 2030, and the amount of low-emissions hydrogen being produced by that year. Solar photovoltaic also is expected to grow significantly compared to what was predicted in the agency's World Energy Outlook 2021, while wind power, a more mature technology, is expected to have a more muted gain.
Click on the image at right to see growth in U.S. clean energy technologies over the last two years. "The United States has mobilized unprecedented levels of government support to boost clean energy and reduce GHG emissions," the report noted. Under IEA's Stated Policies scenario, the IIJA and the IRA, in concert with other initiatives, will lower overall U.S. CO2 emissions nearly 40% by 2030 relative to 2005.
The force of government support is seen most directly in the power sector, where CO2 emissions fall 50% from current levels by 2030, mainly due to more generous tax credits for renewable energy, extensions of the lifetime of nuclear power plants and expanded incentives for battery storage and carbon capture, utilization and storage (CCUS) technology.
Transportation is another sector where government action has moved the needle: tax credits for electric cars and investment in charging infrastructure are predicted to boost annual sales of electric cars rising from 1 million in 2022 and 1.6 million in 2023 to close to 8 million in 2030, by which time they are expected to account for 50% of new car registrations.
Through integrated and concerted policy actions, these investments further accelerate reductions in U.S. demand for coal, the IEA report said. The continued rise of renewables is expected to cut demand for the black rock by 75% from current levels by 2030. The agency predicted that natural gas demand will rise slightly in the short term, but it peaks in the mid-2020s and then begins to decline, mostly because of lower demand in the power and buildings sectors. By 2030, the wider use of electric vehicles, coupled with higher fuel efficiency standards, will cut oil demand by nearly 11%, or roughly two million barrels per day (BBL/d) from current consumption of 18 million BBL/d by 2030.
"The Inflation Reduction Act, the Infrastructure Investment and Jobs Act and other recent policies have reshaped the U.S. energy outlook," the IEA report said. "Targeting a broad set of technologies across many sectors, the incentives now available are making clean energy investment more attractive, prompting faster deployment of clean energy technologies and the development of new clean energy manufacturing capacities in the United States. Our updated assessment ... clearly demonstrates the significant impact of these policies when compared to the outlook prior to these policies in the Stated Policies Scenario from the World Energy Outlook-2021."
The U.S. is the world's largest economy. A fast-growing China is No. 2. The IEA report only hints at how the worldwide fight against global warming could be strengthened if China's leaders enacted policies like the IIJA and the IRA.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
