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Tackling climate change and shaping a new energy future

President Donald Trump’s decision to withdraw the United States from the landmark Paris climate accord must not become a distraction from urgent global efforts to combat climate change

Maarten Wetselaar (The Jakarta Post)
The Hague
Mon, July 17, 2017

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Tackling climate change and shaping a new energy future

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resident Donald Trump’s decision to withdraw the United States from the landmark Paris climate accord must not become a distraction from urgent global efforts to combat climate change.

Countries in Asia were among the most committed supporters of the Paris goals. Indonesia has committed to a 29 percent reduction in emissions by 2030.

Now is not the time to break stride, but to reinforce the resolve. Energy demand is set to double this century, with the world’s population reaching 11 billion, up from 7.5 billion today.

As the world changes, so will the energy system that powers it, driven by the need to reduce carbon emissions and — crucially for Asia — tackle air pollution that blights so many lives.

Coal is a big contributor to that air pollution. This can, and must, change.

Put simply: we will need more and cleaner energy if Asian countries are to continue to thrive in the coming decades.
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We will need more and cleaner energy if Asian countries are to continue to thrive in the coming decades.


Today, coal is still the biggest source of power in the region, at 47 percent of the power mix, compared to natural gas at 10 percent.

In some countries, coal’s share is rising. Indonesia, for example, has seen a sharp rise in coal use from 8 percent of the energy mix in 2000 to 26 percent in 2016, according to research consultancy Wood Mackenzie. The group forecasts this figure will hit 41 percent by 2035.

For Asia’s population, renewable energy will be essential to meeting growing demand while tackling climate change and air pollution.

But renewables chiefly produce electricity. And there are parts of the economy, such as industries that produce iron, steel, cement, plastic and chemicals that cannot be electrified yet — certainly not at a reasonable cost. That’s one reason why the world will still need oil and gas in large quantities in the coming decades.

During this time, we will see a big change in the way energy is produced, used and made available to people.

And I see a combination of renewables, such as wind and solar and natural gas — the cleanest-burning hydrocarbon — playing an increasingly important role. Modern gas-fired power plants can quickly respond to an increase in demand for electricity when there’s no sun or little wind.

By the end of the century many millions of people in emerging economies will join the middle class. Most will use cell phones and refrigerators. Many will drive cars — or travel in self-driving cars — as their quality of life improves.

All this will create enormous pressures on the global energy system. At the same time, we face serious environmental challenges. What kind of air will our children and grandchildren breathe? How will climate change impact the quality of life of people in the most exposed areas, such as coastal regions?

Natural gas is one of the few energy sources that can be used across all sectors of the global economy, including fuelling transport, heating and lighting homes, and powering industries. Reserves are abundant and available in many regions.

The environmental benefits are also clear. In power generation, for example, natural gas emits around half the carbon dioxide (CO2) emissions and less than one-tenth of air pollutants compared to coal.

Some countries are already taking significant steps to boost the use of gas.

China plans to raise the share of gas in primary energy from 6 percent today to 15 percent by 2030. It is also widely using gas for transport, with more than 200,000 trucks and buses fuelled by liquefied natural gas (LNG).

In the city of Lanzhou, strict air pollution policies reduced coal consumption by 40 percent and significantly increased the number of days with clear skies between 2012 and 2016.

Elsewhere, in India, where gas makes up only 8 percent of the energy mix, the government is moving towards a greater use of gas in the economy, creating infrastructure such as gas pipelines and LNG terminals. In Gujarat, India’s most industrialized state, gas now makes up 25 percent of the energy system, fuelling transport and cooking, as well as major plants producing petrochemicals, fertilisers and glass.

Policies of successive governments will determine the extent to which gas will play a key role in the coming decades. Their decisions must reflect the commitments made at the UN Paris climate summit.

Government-led mechanisms that put a price on CO2 emissions would stimulate the development of low-carbon and renewable technologies. Singapore, for example, will be the first country in Southeast Asia to have a carbon tax to encourage industries to reduce emissions.

Beyond policy choices from governments, a lot will also depend on the action of energy companies. Governments, companies and consumers have the power to shape a new energy future, where renewables and natural gas play critical roles.

Now is the time to step up the drive to deliver on the environmental pledges made in Paris.
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The writer is integrated gas and new energies director at Royal Dutch Shell. The views expressed are his own.



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