The use of low-carbon energy sources is expanding rapidly, and there are signs that growth in the global economy and energy-related emissions may be starting to decouple, according to the Energy and Climate Change World Energy Outlook Special Report produced by the International Energy Agency (IEA).

According to the report, the global economy grew by around 3% in 2014 but energy-related carbon dioxide (CO₂) emissions stayed flat. This is the first time in at least 40 years that such an outcome has occurred outside times of economic crisis, the report claims.

Renewables accounted for nearly half of all new power generation capacity in 2014, led by growth in China, the United States, Japan and Germany, with investment remaining strong at EUR 238 billion (US$270 billion) and costs continuing to fall. The energy intensity of the global economy dropped by 2.3% in 2014, more than double the average rate of fall over the last decade, a result stemming from improved energy efficiency and structural changes in some economies, such as China.

The report found that around 11% of global energy-related CO₂ emissions arise in areas that operate a carbon market (where the average price is EUR 6 / US$7 per tonne of CO₂), while 13% of energy-related CO₂ emissions arise in markets with fossil-fuel consumption subsidies (an incentive equivalent to EUR 100 / $115 per tonne of CO₂, on average).

The IEA found that there are some encouraging signs on both fronts, with reform in sight for the European Union’s Emissions Trading Scheme and countries including India, Indonesia, Malaysia and Thailand taking the opportunity of lower oil prices to diminish fossil-fuel subsidies, cutting the incentive for wasteful consumption.

For more information:
https://www.iea.org/publications/freepublications/publication/WEO2015SpecialReportonEnergyandClimateChange.pdf