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I P I E C A S Y M P O S I U M
Cambridge MA, USA, 15–16 October 2001
Long-Term Carbon
and Energy Management:
Issues and Approaches
IPIECA
INTRODUCTION
EXECUTIVE
S ustained efforts will be required to address
concerns about climate change while at the
same time meeting the growing needs of society
S U M M A RY
for energy. To advance understanding of the
actions and policy frameworks that can
contribute to long term energy and carbon
E fforts to reconcile society's growing
demand for energy to alleviate poverty
and promote economic and social
management, IPIECA convened an
development, while promoting efforts to
international symposium in October
mitigate the risk of climate change, pose a
2001. The symposium brought
fundamental challenge. Recent scientific
together experts from academia,
assessments by the Intergovernmental Panel
business and government to share
on Climate Change (IPCC) project a rise of
views on climate change science,
1.4 to 5.8 °C in global average surface
long-term energy supply and
temperature between 1990 and 2100 for
demand, prospects for
scenarios where greenhouse gas (GHG)
technological developments and
emissions are unabated by measures intended
policy framework options.
to mitigate climate change. While the IPCC
did not ascribe any confidence level to their
Four primary questions were addressed:
projections, an MIT analysis, using a
● What guidance does climate science give for
different methodology, finds a rise of
carbon management?
between 0.9 and 5.3 °C (at 95 per cent
● What guidance does long-term energy
confidence levels based on the assumptions
demand give for carbon management
used) over the same time period. The
strategies?
projections are determined in part by
● What can technology offer to address both
scenarios for GHG emissions over the next
carbon management and energy supply?
century and in part by computer models of
● What will be required of long-term policy
the climate system’s response to these
approaches to address energy and carbon
emissions. Considerable uncertainty remains
management?
concerning future levels of emissions and
climate response, and both will require
This booklet summarizes the IPIECA Climate
continuing research if we are to have proper
Change Working Group’s understanding of the
technical guidance for policy decisions.
presentations and discussions at the symposium.
Ensuring that estimates of the overall response
This summary has not been reviewed or endorsed
to climate change are based on sound science
by the presenters or their parent organizations.
will require long-term climate change research
The complete unedited presentations and papers,
to better characterize essential underlying
prepared by the 33 speakers at the symposium,
climate processes and the basis for scenarios
are available on the attached CD. The
and forecasts of future emissions.
Symposium papers can also be downloaded from
the IPIECA website (www.ipieca.org).
Energy use is a principal component of global
greenhouse gas emissions. Forecasts of energy
We are grateful to all the participants for their
demand show that fossil fuel usage will
effort and contributions throughout the
increase as a result of economic growth
symposium. The symposium and this publication
globally, especially in developing regions.
are part of an ongoing effort by IPIECA to provide
Growth in oil use is expected to accompany
constructive input on key climate change issues.
growing demand for transportation with this
IPIECA Symposium, Cambridge MA, USA, 15–16 October 2001
sector accounting for an increasing percentage of future levels. Some speakers emphasized that to
global emissions. Coal and gas consumption is also stabilize the atmospheric concentration of CO2
projected to rise, primarily to meet increasing would require net emissions of CO2 worldwide to
power demand. Resource availability is not expected eventually approach zero. This is in direct contrast to
to limit this growth as fossil fuel supply appears forecasts of increasing energy demand growth. If
sufficient, especially when expected advances in such stabilization were needed, it would present a
discovery, extraction, processing, and end-use are major challenge for public policy to balance emission
considered. The projections show that fossil fuels mitigation with societal demand for improvements in
will continue to be the primary economic supply living conditions and associated energy growth.
choice to meet growing energy demands.
The current focus of international climate change
Technology offers a range of shorter- and longer- policy has been on commitments to near-term
term prospects for mitigating emissions growth GHG reduction targets by developed countries
associated with energy demand. Significant during the 2008–12 period. Accomplishment of
improvements in energy efficiency are expected over these objectives would have little impact on
the next century, although this alone is expected to atmospheric concentrations. Commitments
only slow emissions growth. Energy production beyond 2012 have not yet been negotiated. In the
from renewable sources and other non-fossil-fuel face of other development challenges, climate
technologies (e.g. hydro, wind, nuclear, geothermal, change will likely remain a relatively low priority
biomass and solar) are expected to grow. However, it for most developing countries. Consequently,
was noted that non-hydro renewables are growing near-term greenhouse gas mitigation action in
from a very small base, while hydro and nuclear face these regions will be taken only when it supports
challenges if their share is to grow significantly in other developmental goals, such as increasing
the future. Economic and political realities may energy supply or addressing health and welfare
not permit these new sources to grow sufficiently issues such as urban air pollution.
to substantially retard emissions growth,
particularly over the next two to three decades. Long-term strategies should consider all sources of
Therefore, no single energy supply option is emissions and all options for balancing energy
currently envisaged to meet all global energy supply and carbon management while providing
needs, suggesting a portfolio approach may be the for everyone’s energy needs. These strategies must
most viable option in addressing both energy be flexible, and adaptable to future advances in
demand and carbon management. Technology can climate science and technology. The long-term
also slow emissions growth from increased use of stabilization objective of the Framework
fossil fuels. Development and utilization of Convention on Climate Change cannot be met
technologies to capture and store CO2 (both by without the successful development and global
biological ‘sinks’ and in underground formations) deployment of affordable and innovative energy
offer significant potential for reducing net CO2 and emissions reduction technologies. These
emissions. More work is needed to reduce the cost technologies are likely to take decades to develop
and operational complexity associated with these and deploy. In the shorter and medium term,
options before they can be expected to be deployed activities including increased technology
on a sufficient scale to affect global emissions levels. development, deployment of current economically-
viable technologies, use of market-based
Should it become necessary to control emissions approaches, and increased research on the risks of
sufficiently to stabilize atmospheric GHG future climate change appear to be the best
concentrations in the long term, net emissions would approaches to enable a successful long-term
need to be reduced substantially below expected solution to energy supply and carbon management.
Long-term Carbon and Energy Management: Issues and Approaches
of, for example, the alternative ways clouds respond to increases in CO2
could account for this range in climate sensitivity. Additional sources of
uncertainty include ocean circulation shifts, carbon cycle response, aerosol-
cloud interactions and ecosystem effects.
Long-term scenarios
Energy use and CO2 emissions over the next century depend on technologies,
populations and societal choices. Understanding that there is limited predictability of
these factors, forecasts and scenarios of their change have been made based on current
perceptions. Scenarios show a wide range of CO2 emissions over the next century. In
most scenarios, assuming no effort to mitigate climate change, CO2 emissions grow
severalfold over current emission rates, even though significant improvements in
energy efficiency are assumed. Emissions growth from energy use is strongest in
developing countries, with their CO2 emissions surpassing those of developed countries
within a few decades. Nuclear generation declines in the long term and the use of
IPIECA Symposium, Cambridge MA, USA, 15–16 October 2001
renewables grows, whilst their relative portion of total energy stays about the same due to
the overall increase in energy demand.
Carbon management
World energy demand is forecast to continue to increase.
Abundant fossil fuel resources make fossil fuels the likely source of
this energy, leading to increasing rates of CO2 emissions. However, if
it became necessary to stabilize the atmospheric CO2 equivalent
concentration of GHGs, an equilibrium between emission and removal
processes would need to be reached. How soon GHG emissions must decline would
depend on what level of equivalent CO2 concentration might need to be achieved, but
today’s knowledge gives limited insight into what level might be considered unsafe.
Carbon management seeks to provide options that can limit CO2 equivalent emissions to
reduce the likelihood of serious climate change impacts while providing affordable energy
to meet economic and social demands.
Efficiency improvement
Significant improvements in efficiency are expected over the next century. A wide
array of both government and private sector research and investment will be needed to
maintain the current rate of efficiency improvement. In the transportation sector,
improvements in vehicle efficiency continue, as well as improvements in vehicle
performance demanded by customers. Alternative drive trains
such as fuel cells and hybrids provide pathways for continued
improvements in efficiency. Accelerating research and
development (R&D) on efficiency improvement and transfer
of efficient technologies will lead to lower growth in energy
consumption and emissions. Efficiency improvements alone,
however, will not be sufficient to stabilize GHG emissions,
and will certainly be unable to stabilize concentrations at
some of the levels under discussion in the climate change
policy debate.
fossil fuels with CO2 sequestration. The oil industry has gained
experience in the safe and effective transport and injection of CO2
underground. In special circumstances, CO2 is being sequestered
underground today to mitigate emissions. To be suitable for application worldwide,
however, the efficiency and cost of current technology needs to be improved. Capture
and disposal will always add cost and operational complexity compared to energy
systems without capture.
Technology solutions
Significant improvements in energy technologies are an essential component of future
world development and carbon management. In the near-term, the continued
deployment of efficient and economic technologies will continue throughout the
world. Transfer of efficient and economic technologies could be accelerated by
further enabling the private sector to do so. To ultimately eliminate emissions,
emission-free technologies must come into use everywhere. Emission-free
technologies do not currently have sufficient performance and are far too costly to be
applied worldwide. In the near-term, R&D is needed to create technology options
that can satisfy long-term objectives. No particular energy supply technology is
foreseen as providing all of the world’s energy. Research is needed now to achieve the
improvements required for carbon management for the future.
● Climate Change & Technology Over the 21st Century ● CO2 Sequestration & Low Carbon Fuels
• Jae Edmonds (Batelle Northwest Laboratories) • Paul Freund (International Energy Agency)
• Respondent: Martin Hoffert (New York University) • Respondent: John Houghton (US Department of Energy)
● Transportation
• John Heywood (Massachusetts Institute of Technology)
• Respondent: Thomas Marx (General Motors Corporation)
Long-term Carbon and Energy Management: Issues and Approaches
● Perspectives on the Role of Developing Countries ● Prospects for Emissions Trading and Credits from Projects
• Kejun Jiang (Chinese Research Center for Energy, • Brian Fisher (ABARE)
Environment and Climate Change) • Michael Wriglesworth (UNICE)
• Abdulmuhsen Al-Sunaid (Saudi Aramco)
● Panel Discussion: Reactions
● National, Regional and International Policy • Robert Stavins (Harvard University)
• Richard Morgenstern (Resources for the Future) • Kejun Jiang (Chinese Research Center for Energy,
• Jean Charles Hourcade (CIRED) Environment and Climate Change)
• Brian Fisher (ABARE)
Long-term Carbon and Energy Management: Issues and Approaches
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IPIECA Symposium, Cambridge MA, USA, 15–16 October 2001
Concern about climate change and the challenges and risks it poses will require sustained efforts to
develop understanding and effective solutions while at the same time meeting the growing needs of
society for energy. IPIECA believes that addressing these risks requires appropriate actions now—with
due consideration for the significant scientific uncertainty that limits our ability today to predict exact
future consequences. Our work convinces us that near-term actions alone cannot address the long-term,
global challenges and risks of climate change. Addressing them effectively will require actions and policy
frameworks that:
● promote the more rapid dissemination and use of efficient, existing commercial technology in both
developed and developing countries;
● encourage the development and use of innovative, currently non-commercial technologies;
● enhance the ability of all countries to acquire and utilize advanced technologies; and
● improve scientific understanding by addressing well-known uncertainties.
IPIECA members also recognize the essential role that energy in general and petroleum products in
particular play in meeting the needs and aspirations of people, businesses and governments. Responding
to environmental expectations while satisfying the economic and social goals of society as well as
meeting the needs of our customers, suppliers, employees and owners present major challenges and
opportunities for our industry.
IPIECA members are taking steps today to limit GHG emissions from operations and to improve
customers’ ability to use our products more efficiently now and in the future. Company policies and actions
are implemented through operational management systems, investments, and research and development.
While actions by IPIECA members differ from company to company, they include steps such as:
operational efficiency improvements from design, maintenance and logistics, and from investments in
new processes, cogeneration facilities and other equipment; participation in commercial ventures based
on renewable energy; and research and development aimed at commercialization of innovative products
and technologies. Some of these technologies include separation and sequestration of CO2, advanced
automobile engine technologies and fuel cell powered vehicles, biofuels and advanced fuels. Some members
have committed themselves to reduce GHG emissions from operations, and some have established
internal emissions trading programmes to seek cost-effective reductions across diverse operations.
Through these steps our members intend to be a source of solutions to challenges and concerns about
climate change. In this goal IPIECA plays an important role for our members by helping us to develop
and exchange knowledge and engage in international deliberations.
IPIECA
The International Petroleum Industry Environmental Conservation Association (IPIECA)
is comprised of petroleum companies and associations from around the world. Founded in 1974 following
the establishment of the United Nations Environment Programme (UNEP), IPIECA provides the
petroleum industry’s principal channel of communication with the United Nations. IPIECA is the single
global association representing the petroleum industry on key environmental issues including oil spill
preparedness and response; global climate change; operational issues; and biodiversity.
Through a Strategic Issues Assessment Forum, IPIECA also helps its members identify new global
environmental issues and evaluates their potential impact on the oil industry. IPIECA’s programme takes full
account of international developments in these global issues, serving as a forum for discussion and
cooperation involving industry and international organizations.
Symposium Taskforce
Brian Flannery, ExxonMobil (Chairman, Symposium Taskforce)
Richard Sykes, Shell (Chairman, CCWG) • Frede Cappelen, Statoil (Vice-Chairman, CCWG)
Wishart Robson, Nexen Inc (Vice-Chairman, CCWG)
Haroon Kheshgi, ExxonMobil (Vice-Chairman, CCWG)
David Mansell Moullin, IPIECA (Project Manager) • Rick Hyndman (CAPP)
Nicholas Hughes (BP) • Michel Fontaine (TotalFinaElf) • John Shinn (ChevronTexaco)
IPIECA