Increasing the Pace of Technology Innovation and Application: Enabling Climate Change Solutions

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Increasing the Pace of Technology Innovation and
ApplicationEnabling Climate Change Solutions

• IPIECA Climate Change Working Group

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What is IPIECA?

• The single global association representing both
  the upstream and downstream oil and gas industry
  on key environmental and social issues
• Founded in 1974 following the establishment of
  the United Nations Environment Programme (UNEP),
  IPIECA provides a principal channel of
  communication with the UN

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IPIECA Vision

• An oil and gas industry that successfully
  improves its operations and products to meet
  societys expectations for environmental and
  social performance

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Climate Change Working Group

• CCWG established in 1988
• To provide reliable and timely information,
  issues analysis, education and involvement in
  international processes related to global climate
  change
• Its aims are
• AIM 1 Enhance members understanding
• AIM 2 Better understand and contribute to policy
  outcomes
• AIM 3 Engage effectively in relevant assessments
• AIM 4 Develop and disseminate best practice
  guidance
• IPIECA is the only OG association recognised by
  the UN

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Recent major CCWG workshops

• Climate and Energy to 2020 Onwards (London)
• IPCC AR4 seminar (Brussels)
• Roundtable on Business Models for CCS (Oslo)
• Natural Gas as a Climate Change Solution
  (Washington DC)
• Increasing the Pace of Technology Innovation
  (Washington DC)
• International Policy Approaches to Address the
  Climate Change Challenge (Beijing)
• Transportation and Climate Change (Baltimore)
• Carbon Dioxide Capture and Geological Storage
  (Brussels)
• A Practical Approach to identifying emission
  reduction opportunities (Costa Rica)
• Development and Climate Change (Kuala Lumpar)

2008 2007 2006 2005 2004 2003 2002
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The Role of Technological Change

• Technological progress has enabled economic and
  social development beyond historical precedent
• Technology innovation to improve performance,
  serving practical needs and preferences, has and
  will advance, drawing upon the advancement of
  science
• Transitions in major energy technologies,
  however, often take many decades and entail
  massive investment in infrastructure, even for
  superior technologies with improved performance
  in multiple dimensions

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Increasing the Pace of Technology Innovation
Application Enabling Climate Change Solutions

• The creation of energy technology options to meet
  the global demand for energy with low greenhouse
  gas emissions is an essential component of a risk
  management approach to global climate change
• To be effective, the pace of deployment of
  commercially viable energy technology is an
  additional critical factor

www.ipieca.org
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Energy Outlooks and the Stabilization of Carbon
Dioxide Concentration
Source Kheshgi and Jain 2003

• CO2 stabilization implies that CO2 emissions peak
  and then decline to a very small fraction of
  current rates
• very limited emissions implies far-reaching
  changes in energy technology
• If emissions are to peak within decades such
  changes would occur at a very rapid pace, and
  present an enormous challenge

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Historical Pace of Infrastructure Change

• Change between energy resources (from wood, to
  coal, to oil gas) and major infrastructures
  (from rail, to roads, to air) have exhibited
  transitions of roughly 50 years for each step,
  from inception toglobal deployment.

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Technology portfolio strategies

• A broad array of actions is needed to enable the
  option of potentially-rapid GHG reduction,
  including action to
• reduce todays emissions
• enable deployment of technology at a more rapid
  pace
• Improve technologies that may be more desired in
  the marketplace and more rapidly deployed
• Portfolios should provide options with broad
  coverage everywhere and for every application
• Buildings, power, transportation,

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Innovation, RD, and Education

• Technology innovation is a complex process
• Education, and energy RD have strategic roles
• Competition, cooperation partnership between a
  wide range of institutions could lead to major
  improvements

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Transportation

• Strong demand (personal mobility and freight)
  with greater comfort, convenience, speed and
  control -- has outpaced improvements in
  efficiency
• Greater opportunity may be found in a portfolio
  of approaches considering the entire
  transportation system

Alternative vehicles penetrate market in the long
term. This projection assumes large scale
manufacture, 200,000 vehicles, beginning 2010 and
grows 20 per year.
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CO2 Capture and Geological Storage a Key Option
for Reducing Emissions from Power Generation from
Coal

• Gaps and barriers remain
• Cost and performance of integrated technologies
  have not been demonstrated
• CCS as a major business currently does not exist
• To accelerate the pace of CCS introduction and
  use, development of
• Public acceptance
• Sound regulatory and legal frameworks that do not
  create unintended barriers
• Demonstrations to provide learning and assurance

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Paths Forward

• Successful development and deployment of
  innovative, commercially viable technology is the
  only path that addresses climate change risks,
  and preserves and promotes prosperity.
• For climate change policy to significantly affect
  emissions, it will need to accelerate the pace of
  technology change worldwide.
• Given industrys key roles in technology
  innovation and deployment, engagement of industry
  in the development of technology initiatives and
  policies is a constructive contribution to
  addressing climate change.

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Opportunities and barriers

• Institutions
• Education and RD
• Policies to increase the pace of technology
  change