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3,641,114
MILLION TONS OF CO₂E IN THE ATMOSPHERE IN 2009
Atmospheric concentrations of CO₂e are rising due to increasing anthropogenic emissions. Unchecked, rising concentrations of CO₂e in the atmosphere will lead to catastrophic climate change.
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6,682,199
THOUSAND TONS OF CO₂E EMISSIONS IN 2007
Public electricity and heating in Annex I countries accounted for over 6.68 billion tons of CO₂e emissions annually in 2007.
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4,626,841
THOUSAND TONS OF CO₂E IN 2007
Transport is responsible for approximately 20% of global anthropogenic emissions, or more than 4.63 billion tons of CO₂e annually. Source: UNFCCC, 2009.
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1,449,778
THOUSAND TONS OF CO₂E IN 2007
Buildings are responsible for an estimated 1.45 billion tons of CO₂e in Annex I nations and over 20% of global anthropogenic emissions annually. Source: UNFCCC, 2009.
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1,301,663
THOUSAND TONS OF CO₂E EMITTED ANNUALLY IN 2007
Annex I industry emissions are over 1.3 billion tons of CO₂e annually. Global industry emissions account for approximately 24% of annual anthropogenic emissions. Source: UNFCCC, 2009.
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1,304,628
THOUSAND TONS OF CO₂E IN 2007
Emisisons from agriculture in Annex I countries totaled more than 1.43 billion in 2007 CO₂e emissions.
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7,613,844
THOUSAND TONS OF CO₂E IN 2006 FROM INDIA AND CHINA
The EIA estimates that 2006 energy-related emissions from non-OECD countries accounted for approximately 30%, of global anthropogenic CO₂e emissions, or 15.4 billion tons. Source: EIA, 2009.
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1,000,000
THOUSAND TONS OF CO₂E EMISSIONS
Biochar could potentially remove over 1 billion tons of CO₂e annually. In general, carbon management solutions could remove billions of tons of CO₂e from the atmosphere annually.
Industrial emissions have historically been coupled with population and per-capita wealth, both increasing trends globally. Global emissions from industry as reported by the IPCC in their 2007 assessment are 12 billion tons, or more than 20%, of annual anthropogenic CO2e emissions.
Industrial emissions have historically been coupled with population and per-capita wealth, both increasing trends globally. Global emissions from industry as reported by the IPCC in their 2007 assessment are 12 billion tons, or more than 20%, of annual anthropogenic CO2e emissions.
Under business-as-usual, emissions from industry are projected to reach 18.1 billion tons annually by 2020. Clogged city air and hazardous wastewater are the hallmarks of industrial pollution, familiar in developing nations where industrial emissions are growing the fastest. The larger but invisible threat is from rising concentrations of CO2e that are the cause of climate change. Catastrophic climate change would quickly undo the global gains in wealth from industrial growth under business-as-usual development plans.
To be viable, industry must decouple emissions and growth going forward.
The challenge industry faces to reduce CO2e emissions can also be viewed as a major opportunity for reinvention that can spur innovation and ultimately lower total costs. Rising energy prices and increases in fuel price volatility are significant incentives for industry to increase energy efficiency, and thereby cut emissions.
The challenge industry faces to reduce CO2e emissions can also be viewed as a major opportunity for reinvention that can spur innovation and ultimately lower total costs. Rising energy prices and increases in fuel price volatility are significant incentives for industry to increase energy efficiency, and thereby cut emissions.
The largest sector-wide opportunity for CO2e reductions in industry is through changes in energy use, including efficiency measures and fuel switching. The sector-wide potential for emissions reductions was estimated at between 1.5 and 5.9 billion tons of CO2e annually by the IPCC.
In their 2007 assessment, the IPCC identified four major areas for energy-related CO2e savings that can also provide cost savings:
- Fuel Switching
- Combined Heat & Power
- Efficiency Improvements
- Adoption and Development of Renewable Energy and Biomass.
Innovation in these areas would be accelerated by industrial standards setting efficiency targets and mandating low-carbon technologies that are cost-effective.
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Finance and Insurance
The finance and insurance industries govern the flows of capital and ultimately determine which technologies get developed and what infrastructure gets built. Influencing these decisions to shift capital to low-carbon sustainable investment is at the core of the Carbon War Room’s operations.
The finance and insurance industries govern the flows of capital and ultimately determine which technologies get developed and what infrastructure gets built. Influencing these decisions to shift capital to low-carbon sustainable investment is at the core of the Carbon War Room’s operations.
Under the current system, investments in fossil-based energy generation and conventional industry are increasing CO2e emissions globally that lead to catastrophic climate change. The IPCC projects global emissions increase of 16 billion tons of CO2e by 2020 under business-as-usual.
Investment in high-carbon assets that results in continual increases in annual CO2e emissions that lead to catastrophic climate change will lead to collateral losses of a much larger magnitude than experienced in the 2008 melt down. Low-carbon energy and technology assets poses significantly less risk and will increasingly gain the interest of investors looking for high return-low risk investments, of which pension funds and endowments are two important examples.
It is the mission of the Carbon War Room to redirect capital flows from fossil-based energy generation and conventional industry into sustainable low-carbon technologies that can generate and preserve wealth in the long term. These technologies offer higher returns to investors and society.
It is the mission of the Carbon War Room to redirect capital flows from fossil-based energy generation and conventional industry into sustainable low-carbon technologies that can generate and preserve wealth in the long term. These technologies offer higher returns to investors and society.
Redirecting investment to low-carbon technologies is critical to achieving CO2e stabilization targets that require avoiding the projected 16 billion ton annual increase in emissions by 2020.
Investment and insurance decisions are made based on risk-reward trade-offs. Existing asset classes are valued largely based on historical performance, which is problematic when systemic shifts affect the future risk profile. Conventional energy and technology assets are being overvalued based on inaccurate assessment of four key factors: (1) energy prices, (2) volatility of fuel prices, (3) security risk, and (4) climate change risk.
Market-based Approaches
Three key areas of development are needed to affect change in the finance and insurance industries:
- New risk evaluation. Out of these new partnerships need to come new approaches to assessing risk to take account of both the immediate risks, in terms of increasing energy demand and fuel price volatility, and the long-term massive portfolio risk under business-as-usual approaches that result in catastrophic climate change.
- New partnerships. New partnerships – both formal and informal – between finance experts and entrepreneurs, technologists, and scientists in order to update the understanding of low-carbon technologies and the risks associated with these technologies as well as conventional high-carbon technologies. The entrepreneurs, technologists, and scientists have critical information and insights regarding this new market that has not yet penetrated the financial world.
- Demonstrations projects. Deployment examples for new and emerging technologies are critical to attract institutional investors. Many will require government support.
There is also an important regulatory role for government to play. As the economics of low-carbon technologies are proven across sectors, low-carbon technology standards should be introduced in order to accelerate scale up. These technology standards mandate emissions below a certain level, based on available cost-effective technologies.
GHG Chemicals
Emissions from GHG chemicals are currently estimated in the range of 2.5 to 3.3 billion tons of CO2e per year, or 5% to 6% of global anthropogenic emissions according to the IPCC 2007 assessment. Projected rapid growth of GHG chemicals, especially hydrofluorocarbons (HFCs), makes them of particular concern.
Emissions from GHG chemicals are currently estimated in the range of 2.5 to 3.3 billion tons of CO2e per year, or 5% to 6% of global anthropogenic emissions according to the IPCC 2007 assessment. Projected rapid growth of GHG chemicals, especially hydrofluorocarbons (HFCs), makes them of particular concern.
Left unchecked, a 2009 study published by the Environment Investigation Agency projects that HFCs emissions will reach between 5.5 and 8.8 billion tons of CO2e by 2050 due to increasing demand for air conditioning and refrigeration equipment in which HFCs are used.
Growth in HFC emissions occurs as they displace the ozone depleting substances (ODS) phased out under the Montreal Protocol. While HFCs do not deplete the ozone layer, they have perverse global-warming potential hundreds to thousands of times greater than that of carbon dioxide.
Developing countries will likely see the largest increase in future HFC emissions due to rapid adoption of refrigeration and air conditioning, as well as other commercial products that contain HFCs.
Emissions from greenhouse gas (GHG) chemicals pose a significant threat that can be managed using a combination of careful regulation and alternative technologies. Already, the U.S., Canada, Mexico, and other governments have committed to adding HFC regulation to the Montreal Protocol which governs ozone depleting substances.
Emissions from greenhouse gas (GHG) chemicals pose a significant threat that can be managed using a combination of careful regulation and alternative technologies. Already, the U.S., Canada, Mexico, and other governments have committed to adding HFC regulation to the Montreal Protocol which governs ozone depleting substances.
The phasing out of HFCs could deliver a cumulative reduction of 118 to 224 billion tons of CO2e emissions between 2010 and 2050, according to the Environmental Investigation Agency 2009 study. This is an annual average reduction of approximately 3 to 6 billion tons of CO2e.
Specific measures for controlling HFCs include the following:
- Containment measures to reduce leakage
- Incorporation into trading schemes
- Phasing out production and consumption.
Support for HFC phase-out and entrepreneurial activity to provide alternatives to HFC use is critical.
Market-based Approaches
The phase-out of HFCs presents an opportunity for entrepreneurs to develop substitutes and new products. The refrigeration and air conditioning markets are large and growing markets globally that make this an attractive entrepreneurial opportunity. Putting standards in place now to phase out HFCs will encourage innovation in this area and create new markets and companies.
Industrial Energy Use
Industrial energy use accounts for 37% of global energy use and is the source of more than 10 billion tons of CO2e emissions annually, or 20% of anthropogenic emissions. Industrial energy use has grown about 2% each year since 1975 according to the IPCC and is projected to continue increasing under business-as-usual scenarios.
Industrial energy use accounts for 37% of global energy use and is the source of more than 10 billion tons of CO2e emissions annually, or 20% of anthropogenic emissions. Industrial energy use has grown about 2% each year since 1975 according to the IPCC and is projected to continue increasing under business-as-usual scenarios.
At a 2% annual growth rate, energy-related emissions from industry will reach 18.1 billion tons of CO2e in 2020 and contribute significantly to rising concentrations of atmospheric CO2e that lead to catastrophic global climate change.
About half of current industrial energy consumption can be attributed to the iron, steel, and chemical production sectors. Much of the growth in industrial energy demand has come from emerging economies. China accounts for about 80% of the growth in the last twenty five years and is the world’s largest producer of iron, steel, ammonia, and cement, according to IEA 2007 data.
Energy is a substantial part of industry costs, which makes efficiency technologies attractive to businesses. Harvesting of waste heat for energy and recycling of materials, for instance, can both improve the bottom line while reducing energy consumption and associated emissions. In many cases steps taken to reduce industrial energy use can be achieved at a negative cost.
Energy is a substantial part of industry costs, which makes efficiency technologies attractive to businesses. Harvesting of waste heat for energy and recycling of materials, for instance, can both improve the bottom line while reducing energy consumption and associated emissions. In many cases steps taken to reduce industrial energy use can be achieved at a negative cost.
There are a number of approaches to reducing industrial energy use:
- Adoption of renewable and cleaner fuel sources
- Heat and power recovery
- Increased energy efficiency
- Materials efficiency and recycling
- Carbon capture and storage
Combined, the IEA estimates mitigation potential for CO2e from these measures to be approximately 5.4 billion tons annually by 2050. The potential to achieve these reductions in a shorter timeframe, by 2020, will depend on the ability to accelerate adoption of efficiency measures and low-carbon technology in these sectors.
Market-based Approaches
Energy savings are available in almost all segments but involve an upfront investment; hence one of the biggest challenges to be addressed is financing. The global recession has made financing more difficult but this is likely a short-term hurdle. As financial institutions look for new classes of investments, industrial efficiency could be a promising if positioned correctly.
The industrial sector has experienced limited innovation around energy efficiency and low-carbon technologies, in comparison to the energy sector, and represents a nascent market. Lack of information is a market-inhibitor. Successful efficiency projects need to be showcased and opportunities for savings highlighted.
Also, without guarantees, such as those offered by Energy Services Companies (ESCOs), industries may understandably be nervous about investments in energy efficiency. Examples can help address this; guarantees may be required in some cases.
Cement and Steel
Together the steel and cement industries are responsible for over 3.2 billions tons of CO2e emissions annually, or approximately 6% of global anthropogenic emissions. Emissions from both industries are increasing rapidly due to development, with cement and steel production concentrated in China.
Together the steel and cement industries are responsible for over 3.2 billions tons of CO2e emissions annually, or approximately 6% of global anthropogenic emissions. Emissions from both industries are increasing rapidly due to development, with cement and steel production concentrated in China.
Prior to the global recession, these industries were projected to double output and associated emissions by 2020, with growth driven primarily by activity in developing countries. Under IEA projections, for example, cement emissions double by 2020. Cement and steel are needed for a wide range of construction projects, including housing and public works.
Emissions from steel and cement are due to the energy-intensity of the manufacturing process. Steel production relies heavily on coal as an energy source for high-temperature furnaces. Portland cement production requires clinker made from lime that is also fired in high-temperature coal-driven furnaces. These are dirty processes largely unchanged since the dawn of the industrial age. Both the steel and cement industries are critically in need of process innovation.
Innovation in the cement and steel industries to reduce energy consumption by 50% could reduce annual global CO2e emissions by more than 2 billion tons in 2020. In the steel industry, blast furnace improvements alone could remove 140 million tons of CO2e a year with additional efficiency bringing that number much higher according to the IEA.
Innovation in the cement and steel industries to reduce energy consumption by 50% could reduce annual global CO2e emissions by more than 2 billion tons in 2020. In the steel industry, blast furnace improvements alone could remove 140 million tons of CO2e a year with additional efficiency bringing that number much higher according to the IEA.
Low-carbon cement that introduces substitutes for the highly energy-intensive clinker currently used in cement production is under development. Substitutes for clinker include fly ash and pozzolana; high-percentage replacement of clinker could come close to halving CO2e emissions from the cement industry.
Further emission reductions are available from alternative fuel use in the cement and steel production process.
Market-based Approaches
The rising cost of energy, the volatility of fuel prices, and the carbon risk represented by future restrictions or taxes on carbon are all incentives for industry adoption of more energy efficient processes. There is a large market opportunity that will likely spur innovation as it becomes more recognized. Policy to implement incentives in the form of standards for achieving carbon reductions based on new technologies would accelerate scale up to achieve the necessary reductions by 2020 and encourage additional innovation.