July 2017: Technological advances and research and development (R&D) investments are required to reduce carbon emissions in the energy sector, according to an International Renewable Energy Agency (IRENA) working paper that assesses the status of and future needs for low-carbon technologies. The paper also identifies the elements of a framework that nurtures technological innovation in order to decarbonize the energy sector between now and 2050.

The working paper calls for a holistic approach and policy instruments across the whole technology lifecycle, from R&D to market scale-up. The paper explains that: the 2°C target will require an additional US$29 trillion between 2015 and 2050; end-use sectors will dominate increases in investment needs by sector and technology up to 2050; renewables account for more than half of annual power generation capacity additions since 2012; and end-use sector transformation is falling behind.

The document elaborates a roadmap for energy decarbonization, which requires that, inter alia: renewable energy and energy efficiency constitute the bulk of decarbonization; all sectors contribute to decarbonization; and the energy transition is affordable and economically viable. It discusses mitigation potential and costs by sector and by technology, analyzes 110 technology solutions in power and end-use sectors, and identifies technologies and sectors that require more innovation, such as: iron, steel and cement production; chemical and petrochemical production; maritime transport; aviation; and replacement of non-sustainable traditional biomass.

The paper outlines recommendations to realize a low-carbon future, including that governments: nurture innovation by implementing appropriate policy incentives; integrate a suite of renewable energy sources, such as wind and solar, into existing power grids; decarbonize and invest in R&D for end-use sectors, such as transport and buildings; and expand innovation beyond R&D to include innovative policy frameworks, new business models, appropriate financing mechanisms, and social measures that promote renewables and energy efficiency. According to the paper, such innovative policy frameworks must address technologies as well as, inter alia, system operations, market design and regulations, and an enabling infrastructure to scale up renewables. Such a transition in the energy sector will contribute to the SDGs, including SDG 7 (affordable and clean energy), SDG 8 (decenet work and economic growth), SDG 9 (industry, innovation and infrastructure) and SDG 13 (climate action). [Working Paper Landing Page] [Publication: Accelerating the Energy Transition through Innovation] [Slides of Preliminary Findings]