Capgemini’s latest World Energy Markets Observatory (WEMO) report has warned that climate goals for 2050 will not be achieved if current trends continue.
The WEMO report analyses trends in global energy markets and notes that greenhouse gas emissions are likely to rise in 2018 in spite of rapid growth in renewable energy uptake.
According to Capgemini, efforts globally to reduce greenhouse gas emissions stalled in 2018 with growth of 2 per cent compared to a 1.6 per cent increase in 2017 and no growth in 2018-16. In China, emissions were up by 2.3 per cent, in the US by 3.4 per cent and in India by 6.4 per cent.
The increase in emissions was driven by booming energy consumption, which grew globally at 2.3 per cent in 2018, nearly twice the average annual growth rate since 2010. Almost 75 per cent of that growth was driven by oil, gas and coal consumption, the highest share since 2013.
Worldwide, there was a 4 per cent increase in coal consumption, with a significant growth in coal-fired power generation, the WEMO report says.
The report found that, given current consumption trends, existing climate change goals are looking unrealistic. To create meaningful impact, governments need to go beyond the energy transition measures they already have in place, Capgemini says.
Specifically, the WEMO report recommends measures such as using carbon prices to boost low-carbon investment, increased use of renewable energy and electric vehicles, and increasing financing for carbon capture and storage technologies.
According to the report, Europe is currently the most successful region in combatting climate change and implementing the energy transition.
Energy demand in Europe grew by just 0.2 per cent in 2018, with Germany seeing a 2.2 per cent reduction in demand.
Europe is also on track to meet two key 2020 goals – a 20 per cent reduction in GHG emissions compared to 1990, and to ensure renewables comprise at least 20 per cent of energy consumption.