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October 13, 2014 ALPS Project Studies on Policies and Measures for Climate Change and Sustainable Development toward Green Growth Keigo Akimoto Systems Analysis Group Research Institute of Innovative Technology for the Earth (RITE) Background and Objective of ALPS project ALPS: FY2007-2011; ALPSII: FY2012 The world is facing various challenges to be addressed, while global warming is surely an important issue. It is really important to achieve such multiple objectives with well- balanced priorities, in order to improve present and future generations well-being. High economic growth is expected in developing countries, at least, until the middle of 21st century. "Green growth" will be required for climate change measures to be implemented continuously for the long time. Consistent analyses for climate change and other sustainable development challenges are required to seek better future. This study aimed to present consistent and quantitative analyses for climate change and sustainable development. ALPS: ALternative Pathways toward Sustainable development and climate stabilization 2 Working Package of ALPSII How to achieve “green growth” in the real world [WP] Risk management of climate change, e.g., how to develop risk management strategy of mitigation, and adaptation with geoengineering in consideration; long-term climate goals Economy: better understanding of and exploring a possible narrow path to green growth; gathering and analyses of related data Technology: diffusion and development, proposals and analyses of effects of integration of various technologies including cobenefit; e.g., smart grid, smart city, hydrogen systems Model development and analyses from perspectives of technology, economy and sustainable development 3 Relationships among Models for Consistent Scenario Analysis Socio-economy Assessment of food access Mid-term world energy and economic model: DEARS (until 2050) Energy Assessment of energy security (until 2050) Assessment of food security GHGs excluding energy-related CO2 Ultra-long-term energy and macroeconomic model: DNE21 Assessment model for GHGs excluding energy-related CO2 Mid-term world energy and mitigation measures assessment model: DNE21+ (until 2050) Food, water resource, land use Assessment models for food demand/supply , water resource and land use change Assessment of water stress Assessment of population living in poverty Population, GDP Climate change Simplified climate change model: MAGICC6 Grid-based estimation of climate change: using results from MIROC3.2 Estimation model for economic damages from global warming (developed by Nordhaus) Impacts of global Assessment model for biodiversity warming (Impacts on terrestrial ecosystem and ocean acidification) Assessment model for health impact 4 Energy Assessment Model: DNE21+ Linear programming model (minimizing world energy system cost) Evaluation time period: 2000-2050 Representative time points: 2000, 2005, 2010, 2015, 2020, 2025, 2030, 2040, 2050 World divided into 54 regions Large area countries are further divided into 3-8 regions, and the world is divided into 77 regions. Bottom-up modeling for technologies both in energy supply and demand sides (200-300 specific technologies are modeled.) Primary energy: coal, oil, natural gas, hydro&geothermal, wind, photovoltaics, biomass and nuclear power Electricity demand and supply are formulated for 4 time periods: instantaneous peak, peak, intermediate and off-peak periods Interregional trade: coal, crude oil, natural gas, syn. oil, ethanol, hydrogen, electricity and CO2 Existing facility vintages are explicitly modeled. - The model has detailed information in regions and technologies enough to analyze sectoral approach. - Consistent analyses among regions and sectors can be conducted. 5 Consistent Analyses for Climate Change and Sustainable Development Assessed Major Indicator Category Economic and poverty Agriculture, land-use, and biodiversity Water 7 Indicator Income (GDP per capita) People living in poverty (including impacts of climate change and mitigation measures) Food access (amount of food consumption per GDP) (including impacts of climate change and mitigation measures) Energy access (access to grid electricity; People relying on the traditional use of biomass for cooking) Agriculture land area (including impacts of climate change) Food security (amount of food imports per GDP) (including impacts of climate change and mitigation measures) People living under water stress (including impacts of climate change) Energy Sustainable energy use (cumulative fossil fuel consumption) Energy use efficiency (primary energy consumption per capita and per GDP) Energy security (share of total primary energy consumption accounted for by oil and gas imports with country risks) Climate change Economic impact of mitigation measures (marginal abatement cost (carbon price) and GDP loss) Global mean temperature change Aggregated economic impact of climate change ALPS CO2 Emission Scenarios 120 ALPS A-Baseline CO2 emission (GtCO2eq/yr) 100 ALPS B-Baseline 80 ALPS A-CP6.0 ALPS A-CP4.5 ALPS A-Baseline ALPS A-CP3.7 60 ALPS A-CP3.0 ALPS B-Baseline 40 RCP8.5 20 RCP6.0 RCP4.5 2150 2130 2110 2090 2070 2050 2030 2010 1990 0 -20 Note: CO2 emissions including those from industrial processes and LULUCF RCP (Representative Concentration Pathway): IPCC new scenario RCP3PD 8 CO2 Emission reductions by Sector and Technology 9 60 70 AI-CP4.5 6% 50 9% 9% 40 5% 13% 30 20 10 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 CO2 emissions and reductions (GtCO2/yr) AI-CP3.0 50 AI-CP3.7 50 12% 40 10% 14% 20 10 Power: renewables 13% Power: efficiency improvement & fuel switching among fossil fuels Other energy conversion 9% 13% 20 13% Power: nuclear power Residential & commercial Transportation Industry 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 6% 30 14% 12% 30 10 13% 6% 12% Power: CCS 10% 40 60 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 70 60 3% CO2 emissions and reductions (GtCO2/yr) CO2 emissions and reductions (GtCO2/yr) 70 Int. marine & aviation bunker Industrial process CO2 emission reductions from LULUCF CO2 emissions Note 1: All numbers of the emission reduction ratio are represented by the rate in total emission reductions in 2050 in the case of CP3.0. Note 2: The reduction effects are represented as those relative to the baseline emissions. Some of the sectors, e.g., transportation sector, greatly reduce emissions even in Baseline. Impacts on Food Access Index by Factor in 2050 10 30% Vulnerable -Δ(GDP)/GDP : due to climate change damages Change in food access index (%, relative to the baseline) 25% 20% -Δ(GDP)/GDP : due to climate mitigation costs 15% Δ(Food consumptions)/(Food consumptions): due to change in food price induced by land‐use changes for bioenergy production and afforestation Δ(Food consumptions)/(Food consumptions): due to change in food price induced by food productivity change 10% 5% 0% Δ(Food consumptions/GDP)/(Food consumptions/GDP) China India Midde‐East & N.Africa Subsahara Africa CP3.0 CP3.7 CP4.5 CP6.0 CP3.0 CP3.7 CP4.5 CP6.0 CP3.0 CP3.7 CP4.5 CP6.0 CP3.0 CP3.7 CP4.5 CP6.0 CP3.0 CP3.7 CP4.5 CP6.0 ‐5% Latin America Deeper emission reduction will improve food access (decrease the food access index) due to smaller climate change damages on aggregated economy and food productivities, but will deteriorate food access (increase the index) due to decrease in GDP by mitigation costs and food price increase induced by bioenergy production and afforestation. Food Access Indicator (Amounts of food consumption per GDP) Vulnerabilities of food access will decrease in most countries and regions in the long-term under any emission scenarios, because future incomes are expected to increase. Global warming impacts on food productions are relatively small compared with the effects of income increase. Global warming counter-measures of large scale forestation and bioenery use slightly increase vulnerabilities of food access. 11 For Better Understanding and Analyses of End-use Technologies and their Diffusions Technology Learning 13 Higher learning rates are observed. Source: IIASA report (2013) Supply-side vs End-use and Large-scale vs Small-scale Technologies 14 Supply-side technologies: [Role] supply energies Energy supply cost is a determinant factor to the welfare for the same kind of secondary energy regardless of the kind of original primary energy. End-use technologies: [Role] supply end-use products or services Production or service cost compared with our welfare increase is an important factor for preference changes induced by innovations: high (e.g., cathode-ray TV -> LCD TV) Large-scale technologies: lower speed of diffusions lifetime: long; technology learning: slow; technology innovation: slow Small-scale technologies: higher speed of diffusions lifetime: short; technology learning: high; technology innovation: high Assumed discount rate by sector (tentative) Sector Discount rate Electricity generation 8-20% Other energy conversion 15-25% Industry (Energy intensive industry) 15-25% Transport (Road) 30-45% Residential and Commercial 30-55% Discount rates for different regions and different time points are assumed to be within the ranges, depending on the region’s percapita GDP. Small passenger car (< 2,000cc) users are divided into two groups: purchasers preferring environment conscious products and to regular products. The purchasers preferring environment conscious products adopts 10% discount rate. 15 Technology deployments of passenger cars to developing countries (ALPS-3.0W/m2 Case) (tentative) Vehicle in Use [Million vehicle] 900 16 OECD90 800 700 600 FCV 500 BEV 400 Plug‐In HEV 300 HEV 200 ICEV Diffusion of HEV is started in OECD90. According to cost reductions of HEV and discount rate improvements in other regions, HEV is adopted also in other regions such as ASIA. 100 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 140 120 100 80 60 40 20 2020 2030 2040 2050 450 400 350 300 250 200 150 100 50 0 2010 2020 2030 MAF 160 Vehicle in Use [Million vehicle] Vehicle in Use [Million vehicle] Vehicle in Use [Million vehicle] 160 0 2010 ASIA 500 2040 2050 180 Vehicle in Use [Million vehicle] REF 180 140 120 100 80 60 40 20 0 2010 2020 2030 2040 2050 LAM 160 140 120 100 80 60 40 20 0 2010 2020 2030 2040 2050 Technology deployments of environment compatible passenger cars within OECD90 (ALPS-3.0W/m2 Case) (tentative) 450 Vehicle in Use [Million vehicle] 400 350 FCV (Other) FCV (PECP) 300 BEV (Other) 250 BEV (PECP) 200 Plug‐In HEV (Other) 150 Plug‐In HEV (PECP) HEV (Other) 100 HEV (PECP) 50 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 PECP: Purchaser preferring Environment Conscious Products Purchasers preferring environment conscious products adopt new technologies such as HEV at early stage of their diffusion. 17 International Symposium of ALPS Project 18 The international symposiums for better understandings for climate change and sustainable development have been held in Tokyo every years since 2002 (from PHOENIX project). A few researchers from IIASA participated in all the symposiums. Particularly Prof. Nakicenovic kindly participated in almost all the symposiums. FY2013 ALPS Symposium (at Tokyo International Forum, on Feb. 4, 2014; about 240 attendees) FY2014 ALPS Symposium will be held on February 27, 2015. Prof. Nakicenovic will kindly give a lecture also this physical year! Appendix I: Overview of RITE Basic Information about RITE 20 Mission : R&D of industrial technologies that contribute to the conservation of the global environment and the progress of the world economy Established in July 1990 (Supported by MITI, local governments, academic circles and industries) Location : Kansai Science City (Kyoto, Japan) Activities : Development of innovative environmental technologies for CO2 mitigation Staffs : 175 (April 1, 2014) Annual budget : Approx. 2.7 billion JPY (27 million US$) President: Prof. Yoichi Kaya Director general: Prof. Kenji Yamaji Research Staffs in Systems Analysis Group Toshimasa Tomoda Keigo Akimoto Ayami Hayashi Miyuki Nagashima Takashi Homma Fuminori Sano Kenichi Wada As of April 2014 Kohko Tokushige Bianka Shoai Tehrani Junichiro Oda Yosuke Arino Appendix II: Overview of DNE21+ model Region divisions of DNE21+ 23 Technology Descriptions in DNE21+ (1/2) 24 Fossil fuels Coal Oil (conventional, unconv.) Gas (conventional, unconv.) Energy conv. processes (oil refinery, coal gasification, bioethanol, gas reforming, water electrolysis etc.) Unit production cost Industry Iron & steel Cement Paper & pulp Chemical (ethylene, propylene, ammonia) Aluminum Cumulative production Solid, liquid and gaseous fuels, and electricity <Top-down modeling> Renewable energies Hydro power & geothermal Wind power Photovoltaics Biomass Electric Power generation Unit supply cost Transport vehicle Solid, liquid and gaseous fuels, and electricity <Top-down modeling> Residential & commercial Annual production Nuclear power CCS Refrigerator, TV, air conditioner etc. Solid, liquid and gaseous fuels, and electricity <Top-down modeling> Technology Descriptions in DNE21+ (2/2) –An Example for High Energy Efficiency Process in Iron & Steel Sector–25 Blast furnace, sintering furnace, BF, BOF, casting, and hot rolling Coal for steel sector Type III: Current coke oven 24.1 GJ 23.8 GJ Recycling of waste plastics and tires 0.25 GJ Waste plastics and tires 0.25 GJ 22.5 GJ Type IV: Next-generation coke oven Electricity (grid) Power generation facility Electricity 455 kWh Type III and IV: High-eff. Intersection (Sophisticated steelmaking process with many energy saving facilities including CDQ, TRT, COG and LDG recovery) (Larger scale capacity plant) 91 kWh 111 kWh Carbon capture from BFG Compressed CO2 0.60 tCO2 0.98 GJ Utility 4.1 GJ Heavy oil Process gases recovery 8.6 GJ Steel product derived from BOF steel 1 ton of crude steel equivalent for each type BF: blast furnace, BOF: basic oxygen furnace, CDQ: Coke dry quenching, TRT: top-pressure recovery turbine, COG: coke oven gas, LDG: oxygen furnace gas Global Mean Temperature Rise 26 7 ALPS A-Baseline Surface temperature relative to pre-industrial (K) 6 ALPS A-CP6.0 5 ALPS A-CP4.5 ALPS A-CP3.7 4 ALPS A-CP3.0 3 RCP8.5 RCP6.0 2 RCP4.5 1 0 1990 RCP3PD 2010 2030 2050 2070 2090 2110 2130 2150 Note: Equilibrium climate sensitivity is assumed to be 3 C, which is a ”most likely value” in IPCC AR4. The maximum global mean temperature change relative to the pre-industrial level is about 2 C (1.94 C) for the ALPS CP3.0. Agriculture Land Area 27 Required area for food productions to meet food demands Required area for food productions (Year 2000=100) 140 A-Reference(w.o. adaptations of changes in varieties of crop and planting) 120 A-Baseline 100 A-CP6.0 80 A-CP4.5 60 A-CP3.7 40 A-CP3.0 20 B-Baseline 2100 2090 2080 2070 2060 2050 2040 2030 2020 2010 2000 0 The additional required area for crop productions will be about 20% in 2050 under Scenario A-Baseline. The area in the case of climate stabilization at a low level will be smaller than that of the baseline. However, socioeconomic conditions, such as population, will have larger effects on the required area. Change in international food price (relative to the baseline) Food Price Change by Factor in 2050 10% Contribution by changes in land‐use for bioenergy production and afforestation Contribution by changes in food productivity International price 8% 6% 4% 2% 0% ‐2% ‐4% CP6.0 CP4.5 CP3.7 CP3.0 CP6.0 CP4.5 CP3.7 CP3.0 CP6.0 CP4.5 CP3.7 CP3.0 Wheat Rice Maize The productivity of wheat, rice and maize will increase under most of the emission reduction scenarios compared with the productivity in the baseline, and the food prices will decrease in lower emission scenarios. On the other hand, large scale of bioenergy production and afforestation under emission reduction scenarios will increase food prices. 28 Assessment of Energy Security − For Different levels of concentration − 10,000 Vulnerable Energy security index 2000 7,500 29 2050 A-Baseline 2050 A-CP4.5 5,000 2050 A-CP3.0 2,500 0 US W. Europe coil ESI TPES Share of imported oil in TPES Japan China India and S. Asia r S TPES r S 2 i c gas i , oil i Political risks of region i i 2 i , gas i Dependence on region i ESI : energy security index, TPES: total primary energy supply Note: index based on IEA, 2007 While the energy security index of Japan decreases (less vulnerable) for CP3.0, that of China, India increases (more vulnerable) for deeper emission reductions due to increase in imported gas shares. Assumed discount rate and share of environmental conscious purchasers in transport sector (tentative) 30 Discount rate in transport sector (road) 50 45 United Kingdom 40 France Germany 35 Japan China 30 India Russia 25 20 2010 2020 2030 2040 2050 Share of purchaser of environment conscious products [%] Discount rate [%] United States Share of purchaser preferring to environmental conscious products in small passenger car sales 70 60 United States 50 United Kingdom France 40 Germany 30 Japan China 20 India Russia 10 0 2010 2020 2030 2040 2050