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(1)

Identifying Energy Policy Synergies and Interlinkages

through Systems Analysis

IIASA 40 th Anniversary Conference Vienna & Laxenburg, October 2012

David McCollum Research Scholar

Energy (ENE) Program, IIASA

(2)

Sustainable development means overcoming several energy challenges

Energy Security

Climate Change Air Pollution

Image sources: NASA, http://www.powernewsnetwork.com/white-house-releases-plan-to-cut-oil-imports-by-13-by-2025/1798/, http://wheresmyamerica.wordpress.com/2007/08/26/i-cant- see-my-america/, http://www.americanprogress.org/issues/green/report/2009/05/14/6142/energy-poverty-101/, http://today.uconn.edu/blog/2010/12/reclaiming-water-a-green-leap- forward/, http://te.wikipedia.org/wiki/%E0%B0%A6%E0%B0%B8%E0%B1%8D%E0%B0%A4%E0%B1%8D%E0%B0%B0%E0%B0%82:Forest_Osaka_Japan.jpg

Energy Poverty

Water

Land Use & Forests

(3)

Energy Security

Climate Change Air Pollution

2ºC warming

Increased diversity;

reduced imports

Air quality guidelines (e.g., PM2.5 35 µg/m

3

)

$

Affordability of $

Energy Services

(4)

• Short term vs. Long term

• Local/National vs. Global

• Add-on solutions vs. Structural changes

Why the lack of progress?

Image sources: http://shirahime.ch/2010/11/global-vs-local-iiii-%E2%80%93-ethical-fashion-internationally-shows-trade-fairs-brand-and-supplier-directories/,

http://inhabitat.com/san-francisco-announces-2011-launch-of-bike-sharing-program/, http://www.popsci.com/technology/article/2009-10/huge-texas-wind-turbines-will-be-made- china, http://www.desmogblog.com/directory/vocabulary/3165, http://wheresmyamerica.wordpress.com/2007/08/26/i-cant-see-my-america/

(5)

Need to find new ways to frame these important issues

• Integrated perspective is key

• Enormous synergies exist between the three objectives:

– Climate change mitigation

– Energy security enhancement

– Air pollution and health impact reduction

(6)

In c re a s in g s tr in g e n c y

> 4 o C

3 o C 2 o C 1.5 o C

In c re a s in g s tr in g e n c y

Global warming

Business-as-usual Weak effort Moderate effort Stringent effort Energy imports and

diversity

No further improvement Current legislation Air pollution framework

(PM, SO 2 , NO x , BC, … )

Stringent legislation Maximum feasible

reduction

39 levels 4 levels 4 levels

Policies of varying stringency were modeled

(7)

>600 unique scenarios spanning the feasible scenario space

(climate-pollution-security futures) Climate

Air Pollution

Security

Energy Security Climate Change

Air Pollution

A large scenario ensemble was generated

(8)

Synergies of energy efficiency and

decarbonization accrue in multiple dimensions

1. Co-benefits for air pollution and human health

→ improved air quality (22-32 million fewer disability-adjusted life years globally in 2030)

2. Synergies for improved energy security

→ more dependable, resilient, and diversified energy portfolios

3. Cost savings and spillovers

→ up to $600 billion/yr in reduced pollution control and energy

security expenditures by 2030 (0.1-0.7% of GDP)

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0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

To ta l G lo b a l P o li cy C o st s (2 0 1 0 -2 0 3 0 ) In te g ra te d S o lu ti o n s

Only Climate Change

Only Air Pollution

Only Energy Security

G lo b a l P o li c y C o s ts ( 2 0 1 0 -2 0 3 0 , % o f G D P ) F u ll r a n g e o f s c e n a ri o s

F u ll r a n g e o f s c e n a ri o s F u ll r a n g e o f s c e n a ri o s

An integrated approach saves

>$5 trillion (~0.5% of GDP)

Source: McCollum D., Riahi K., and Krey V., 2011, Nature Climate Change.

(10)

Systems analysis provides a lens through which complex interlinkages can be explored

Image sources: http://www.irunoninsulin.com/?attachment_id=1887

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