Image courtesy: IEA.org

Some interesting nuggets from IEA:

• Since 1990, the domestic transport sector has accounted for the largest share of total final energy consumption, more than 30%, in the 24 OECD countries.
• Within the sector, road transport dominates energy consumption, at 90% in 2011, as shown in this chart above based on the IEA energy efficiency indicators database.
• Further disaggregated data by segment and vehicle type indicate that consumption by passenger cars is a key driver (64%) for road transport, and thus for global energy consumption trends.

Click here to learn more.

(Source: Ars Technica)

Each year, the International Energy Agency produces a report in which it considers trends in energy use and makes projections for the future. Usually, these reports simply take recent trends and project them forward, but this year’s is somewhat different: its author uses a mixture of current trends and the projected impact of countries’ pledges for reducing greenhouse gas emissions and subsidies for fossil fuels. This results in some eye-popping figures. Globally, we’re subsidizing fossil fuel use to the tune of hundreds of billions of dollars, at a rate of over five times the subsidies going to renewable energy. And our inaction on climate goals has tacked $1 trillion onto the cost of reaching them—in 2009 alone.

We’ll start with the subsidies. In 2009, the total subsidies were $312 billion, which may seem high until you hear the 2008 figure: $558 billion, boosted by countries’ responses to the high fossil fuel prices that year. Most of the subsidies went to help cut the costs of using oil and natural gas products; another substantial chunk went to electricity use.

The IEA factsheet also forecasts a steep rises in the primary energy demand (increases by 36% between 2008 and 2035, or 1.2% per year on average) oil prices. The cost of getting on track to meet the climate goal for 2030 has risen by about $1 trillioncompared with the estimated cost in last year’s Outlook. This is because much stronger efforts,costing considerably more, will be needed after 2020. In the 450 Scenario in this year’s Outlook, theadditional spending on low‑carbon energy technologies (business investment and consumerspending) amounts to nearly $18 trillion (in year- 2009 dollars) more than in the Current PoliciesScenario, in which no new policies are assumed, in the period 2010‑2035. It is around $13.5 trillionmore than in the New Policies Scenario.

Click here to read the entire Ars Technica argument and the IEA’s World Energy Outlook website.

Note: Recommendations to remove the fuel subsidies will have huge implications for people living in developing and under-developed countries of the world.  The consequences has life-altering impacts for many people living below the poverty line, even in booming economies like China and India.  Many in these parts of the world earn so little that it won’t even make their ends meet and how would they pay for burning their kerosene stoves or ride their little 50cc mopeds to work.  Why do I find this huge divide between the educated class (i.e., Armani wearing executives sitting in board rooms of IEA and sipping lattes in Davos chatting over prices of fuel in some distant future) and the poor working class (the one who toil in hard work on the factory floors and make a meager living that pays for one meal a day)?  Governments in  these developing economic countries have a huge problem dealing with the pressures of providing the basic necessities and if the subsidies were lifted, many would find it hard to survive.  Unless the global community comes up with a quick, clean energy solution(s) that is affordable and accessible to all, I think many nations will not buy into these meaningless recommendations. Already many countries are struggling to find money to sustain their existing support programs for the poor and where would they go to find more money for wide-spread deployment of  Clean & sustainable energy solutions such as Solar, electric, etc.

Related articles

• IEA: last year’s inaction on climate goals cost us $1 trillion (arstechnica.com)
• World should eradicate fossil fuel subsidies-IEA (reuters.com)
• World should eradicate fossil fuel subsidies: IEA (reuters.com)
• China, Government Policy to Drive Energy Prices (247wallst.com)
• Call to stop fossil fuel subsidy (bbc.co.uk)
• Axe fossil fuel subsidies to stop climate change (newscientist.com)
• put an end to $312 billion subsidies to fossil fuels – IEA (politics.ie)
• Fat Subsidies for Fossil Fuels (solarfeeds.com)
• Oil demand to rise for 25 years despite green push (grist.org)
• Drumbeat: November 9, 2010 (theoildrum.com)
• More needs to be done to avoid oil spike, IEA says (sfgate.com)
• IEA World Energy Outlook 2010 Now Out; a Preliminary Look (theoildrum.com)
• “IEA raises oil price outlook on supply uncertainty” and related posts (kippreport.com)
• More needs to be done to avoid oil spike, IEA says (seattletimes.nwsource.com)
• Forecaster Sees Jump in Energy Demand by 2035 (nytimes.com)
• IEA sees oil peak looming (financialpost.com)
• China’s thirst to keep oil prices booming: IEA (theglobeandmail.com)
• Text:EIA November Outlk: Oil Prices To Rise to $87 By Q4′11 -1 (forexlive.com)
• G20 Leaders Not Removing Fossil Fuel Subsidies As Pledged. (thegoodhuman.com)
• Two-faced world spends billions on climate help, fossil fuel (go.theregister.com)

On Friday, June 19, America 2050 will be co-hosting the next “Rebuilding and Renewing America” forum, focused on infrastructure strategies for the Southwest Megaregion, encompassing Southern California, the Las Vegas metropolitan area and Baja California.    The forum will aim to build support for a national infrastructure plan needed for America to respond to the big challenges of rapid population growth, our dependence on foreign oil, climate change, global competitiveness, and deteriorating infrastructure, and identify the major transportation, energy and water infrastructure priorities in the Southwest Megaregion that are issues of national significance. 

Likewise, we hope to find common ground among metropolitan areas in the Southwest Megaregion on programs and policies that would help regions and subregions meet their core infrastructure challenges.  The forum marks the first major convening of the west coast office of America 2050, housed at the USC Bedrosian Center. The forum aims to establish a network of business, civic, government and academic organizations through the America 2050 west coast office who will continue to work on building the Southwest Megaregion and pushing its collective agenda.    

The forum will take place at the Davidson Conference Center on the campus of the University of Southern California in Los Angeles on Friday, June 19 from 8:00am to 3:30pm. There is a fee of $25.00 to attend.  Register online here.

(Source: GreenBiz via Reuters)

The Obama administration established a Biofuels Interagency Working Group this week in a move that carries implications for the industry on several fronts, including regulatory and research and development. 
 
The Biofuels Interagency Working Group, comprised of the U.S. Environmental Protection Agency, Department of Energy (DOE)  and Department of Agriculture, will develop a biofuel market development program, coordinate biofuel infrastructure policies, study biofuel lifecycle and help existing biofuel producers secure credit and refinancing.

Meanwhile, the DOE will spend $786.5 million in stimulus funds on demonstration projects and research to accelerate the adoption of next-generation biofuels. 

For example, the agency will dole out $480 million on 10 to 20 pilot-scale and demonstration-scale projects, with a ceiling of $25 million and $50 million, respectively. Another $176.5 million shall be used to increase funding for two or more commercial-scale biorefinery projects that previously received government assistance.

The DOE biomass program also will dedicate $130 million toward research into ethanol, algal biofuels and biofuel sustainability research.

The proposal breaks down renewable fuels into four categories: cellulosic biofuels, biomass-derived diesel, advanced biofuels, and total renewable fuel. The fuels must produce fewer greenhouse gas emissions than conventional fuels, but there is great debate within the biofuel industry about how these lifecycle assessments should be calculated.

$480 million solicitation for integrated pilot- and demonstration-scale biorefineries

Projects selected under this Funding Opportunity Announcement will work to validate integrated biorefinery technologies that produce advanced biofuels, bioproducts, and heat and power in an integrated system, thus enabling private financing of commercial-scale replications.

DOE anticipates making 10 to 20 awards for refineries at various scales and designs, all to be operational in the next three years.  The DOE funding ceiling is $25 million for pilot-scale projects and $50 million for demonstration scale projects.

These integrated biorefineries will reduce dependence on petroleum-based transportation fuels and chemicals. They will also facilitate the development of an “advanced biofuels” industry to meet the federal Renewable Fuel Standards.

(Source: New York Times)

China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 last year, government officials and Chinese auto executives said. By comparison, CSM Worldwide, a consulting firm that does forecasts for automakers, predicts that Japan and South Korea together will be producing 1.1 million hybrid or all-electric light vehicles by then and North America will be making 267,000.

TIANJIN, China — Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.

Premier Wen Jiabao highlighted the importance of electric cars two years ago with his unlikely choice to become minister of science and technology: Wan Gang, a Shanghai-born former Audi auto engineer in Germany who later became the chief scientist for the Chinese government’s research panel on electric vehicles.

Beyond manufacturing, taxi fleets and local government agencies in 13 Chinese cities are being offered subsidies of up to $8,800 for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.

(Source: Green, Inc. – New York Times via AutoBlogGreen )

An article on AutoBlogGreen says:  “Court disaster.” “Catastrophic.” “In their infancy.” These are logical statements for someone who represents the Saudi oil industry, but it sure sounds like someone is working hard to dial down expectations for anything that threatens the dominance of oil. 

Thanks to AutoBlogGreen for pointing to a video on OPEC’s website featuring Mr. Naimi’s speech (starting at minute 9 in the video).