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  • 8/4/2019 Global Shift: The Challenges of Energy Interdependence and Climate Change

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    p a p e r s e r i e s

    Global Shift

    the ChallenGeS of enerGy interdependenCe and

    Climate ChanGe

    Hanns W. Maull

    Research Fellow, Transatlantic Academy

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    2011 ransatlantic Academy. All rights reserved.

    No part o this publication may be reproduced or transmitted in any orm or by any means without permission

    in writing rom the ransatlantic Academy. Please direct inquiries to:

    ransatlantic Academy

    1744 R Street, NW

    Washington, DC 20009

    1 202 745 3886

    F 1 202 265 1662

    E [email protected]

    Tis publication can be downloaded or ree at http://www.transatlanticacademy.org.

    Transatlantic Academy Paper Series

    Te ransatlantic Academy Paper Series presents research on a variety o transatlantic topics by staf, ellows, and

    partners o the ransatlantic Academy. Te views expressed here are those o the author and do not necessarily

    represent the view o the ransatlantic Academy. Comments rom readers are welcome; reply to the mailing ad-

    dress above or by e-mail to [email protected].

    About the Transatlantic Academy

    Founded by the German Marshall Fund o the United States (GMF), the ZEI-Stiung Ebelin und Gerd

    Bucerius, the Robert Bosch Stiung, and the Lynde and Harry Bradley Foundation, the ransatlantic Academy

    serves as a orum or a select group o scholars rom both sides o the Atlantic and rom dierent academic and

    policy disciplines to examine a single set o issues. Working together rom a transatlantic and interdisciplinary

    perspective, Academy ellows use research, publications, and ideas to make policy-relevant contributions to

    policy debates acing the transatlantic community. In addition, the Academy has received early support rom

    the ransatlantic Program o the Government o the Federal Republic o Germany through unds o the Euro-

    pean Recovery Program (ERP) o the Federal Ministry o Economics and echnology. Te Compagnia di SanPaolo joined as a fnancial partner in May 2009.

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    Global ShiftThe Challenges of Energy Interdependence

    and Climate Change

    Transatlantic Academy Paper Series

    September 2011

    H W. Mu

    Research Fellow, Transatlantic Academy

    Akw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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  • 8/4/2019 Global Shift: The Challenges of Energy Interdependence and Climate Change

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    Transatlantic Academyii

    Acknowledgements

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    Global Shift 1

    Executive Summary

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  • 8/4/2019 Global Shift: The Challenges of Energy Interdependence and Climate Change

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    Global Shift 3

    On average more

    than one out

    of five units of

    energy consume

    anywhere in

    the world would

    come from

    internationally

    traded oil.

    The Global Energy System:

    Basic Facts1

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    35 .

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    Transatlantic Academy4

    High levels of

    interdependence

    between nations

    and societies

    mean that energy

    objectives cannot

    be pursued in

    isolation: energy

    independence

    is a chimera.

    Rather, they need

    to be pursued

    cooperatively.S 993, C j

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    k, k,

    x, uu v

    k u v z. Tu,

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    wk v u wk

    Source: BP Statistical Review of World Energy 2011

    Figure 1: Major trade movements of oil in 2010 (million tons)

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    Global Shift 5

    A growing world

    population and

    huge disparities

    in social

    development

    between

    countries...all

    point to further

    significant

    increases in worl

    primary energy

    demand well

    into the future.

    But growth will

    increasingly be

    concentrated

    in non-OECD

    countries.

    k u w

    .

    The Link between Energy and Social

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    Primary Energy

    demand (mtoe)

    1990 2000 2005 2010 relation

    2010: 1990

    W 895.6 938.4 8.9 .4 + 48 %

    U S 963.3 33.7 35. 85.7 + 6 %

    Eu U 643.5 7.4 88. 73.9 + 5 %

    C 685. 38. 69.5 43. + 55 %

    Table 1: Evolution of World Primary Energy Demand

    Source: BP Statistical Review of World Energy 2011 (Workbook)

    Source: BP Energy Outlook 2030

    Figure 2: Energy use per unit of GDP, expressed in tons of oil equivalent per

    000 $GDP (2009, purchasing power parity)

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    Transatlantic Academy6

    Global emissions

    continue to grow

    rapidly: for CO2alone, the global

    increase between

    1990 and 2009

    totalled 7,671

    million tons of

    CO2, a rise of

    over 34 percent.

    Chinas CO2

    emission growth

    accounted for 20

    percent of the

    global increase.

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    Global Shift 7

    International Governance of Energy

    and Climate Change Issues2

    The most

    important

    arrangement in

    ...international

    oil governance...

    is informal and

    bilateral, rather

    than multilateral

    the close but

    also conflict-

    ridden bilateral

    relationship

    between the

    United States an

    Saudi Arabia.

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    Energy System

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    Transatlantic Academy8

    The problem with

    this system of

    governance for

    world oil is that

    it leaves out ...

    major new oil

    importers, led by

    China and India.

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    Global Shift 9

    u 9. S , v , k u $/

    ( u 3).

    Governance Structures to Address

    Climate Change

    A

    U N

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    v v 99 v.

    T j w P

    Figure 3: World oil prices: the big picture

    Source: BP

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    Transatlantic Academy10

    A look at global

    CO2 emissions

    since 1990...

    suggests

    that present

    arrangements of

    global governance

    to address

    climate change

    are insufficient,

    if not completely

    dysfunctional. Cv w Cv

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    Emissions

    1990 2000 2009 Reduction

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    Difference

    (percent)a

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    Eu

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    J 68.7 344.3 35. 9.5 + 5 %

    Ru 33.7 4.8 97. 33.7 + 58 %

    Au 48.4 496. 549.4 45.8 - 8 %

    Canada 591.8 717.1 701.4 556.3 - 21 %

    China 2244.0 3077.6 7056.3 n.a. n.a.

    India 589.3 976.4 1537.0 n.a. n.a.

    Table 2: Evolution of greenhouse gas emissions (in million ton CO2

    equivalent), 1990 2009

    a Negative figure: 2009 emissions exceed target; positive figure: emissions below target

    Source: Ziesing (2010)

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    Global Shift 11

    International

    climate change

    diplomacy

    has produced

    agreements that

    either were so

    vague as to be

    easy to fulfill but

    meaningless in

    practice, or so

    specific that eve

    well-intentioned

    governments

    found it hard

    to achieve

    those targets.

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    Transatlantic Academy12

    The global energy

    system...seems

    headed towards

    major upheavals.

    A w w, j u

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    Trends and Critical Uncertainties

    3

    Source: BP Energy Outlook 2030

    Figure 4: world population, primary energy demand, and GDP growth, 1970 - 2030

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    Global Shift 13

    The essence

    of the energy/

    climate change

    conundrum is th

    the unsustainabl

    energy- and

    resource-

    intensive modes

    of production

    and lifestyles

    of industrial

    societies have

    been spreading

    on a global scale

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    , , C). S vu v

    M E

    , u

    x w.

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    Transatlantic Academy14

    A more fragile

    and conflict-

    ridden system

    of international

    oil governance

    seems likely.

    This will probably

    result in stronger

    price fluctuations

    and a general

    upward pressure

    on oil prices.

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    Global Shift 15

    Global warming

    represents one o

    the major nation

    and global secur

    concerns for the

    coming decades

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    New Policies Scenario Current Policies Scenario

    1980 2008 2020 2035 2020 2035

    Coal ,79 3,35 3,966 3,934 4,37 5,8

    Oil 3,7 4,59 4,346 4,66 4,443 5,6

    Gas ,34 ,596 3,3 3,748 3,66 4,39

    Nuclear 86 7 968 ,73 95 ,8

    Hydro 48 76 376 476 364 439

    Biomass and waste* 749 ,5 ,5 ,957 ,46 ,75

    Other renewables 89 68 699 39 468

    Total 7,229 12,271 14,556 16,748 14,896 18,048

    Table 3: World primary energy demand, by fuel, different scenarios (Mtoe)

    *Includes traditional and modern uses.

    Source: IEA World Energy Outlook 2010

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    Global Shift 17

    Challenges of Energy Transition

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    Figure 5: Chinas share of the projected net global increase for selected indicators

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    China alone coul

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    and about 35

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    Global Shift 19

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    Global Shift 21

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    Global Shift 23

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    governments are not doing enough

    Source: World Development Report 2010

    Public opinion

    data suggest

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    a willingness to

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    the risks of

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    Figure 8: Willingness to accept higher energy prices to

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    Strategic

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    Global Shift 27

    w vu uu. T

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    Figure 9: The three dimensions of strategic energy vulnerability

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    R, I EC T. P, u

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    Global Shift 29

    bcm: billion cubic meters ( u u w). O qu

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    Abbreviations and Glossary

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    E (967), A (969), N (97), A (7) j . Eu j

    OPEC 973; u

    99 7; G w

    975 99. I, w j 96,

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    Endnotes

    7 Tk , u u u -v(4.8 ) w 9. A u w , vu w u

    995 v, . T vu u u , wv. Tvu w u 8 4 v 7, u 9 37 8, w w u , uu. I 9, w u w w u $.8 (W T O, International Trade Statistics2010, Gv: WTO , . 43).

    Ow u, k BPStatistical Review of World Energy, vu .

    3 T v u , w u u - u u , (u w ) v u .

    4 IEA, CI I, P: IEA [://www../u/_w_D.?PUBS_ID=, Ju 7, ].

    5BP Statistical Review of World Energy 2011, . 8 [://

    www../.?I=75&I=76848, Ju , ]

    6 F x, Su A vu 9 x , 45 GNP, 8 v vu. CIA World Factbook,Su A E [://www..v//u/-w-k//., Ju 8, ].

    7 I uv , I Mu v w u uu . Av

    u u . SM, I: Why the West Rules the World for Now,The Patterns of History, and What They Reveal Aboutthe Future, Nw Yk: F, Su & Gux , .43.

    8 M : 599. T GHG

    . Tu, IPCC WkGu O 75, ... u w CO u:

    5 v -u vu w 97 , w 5 w v u 3 .I 995 5, CO u 9 ; v w CO u 95. S S,S., D. Q, M. M, Z. C, M. Mqu, K.B.Av, M. T H.L. M (.): Contributionof Working Group I to the Fourth Assessment Reportof the Intergovernmental Panel on Climate Change,

    7, C Uv P: C, UK Nw Yk, NY, USA 7, . 35 (://www../u__/4/w//q--.) [ A 5, ].

    9 Z, H-J: Wk Rk ww CO E , Zeitschrift fr Energiewirtschaftliche Tagesfragen, V. 6,Iu 9 (S. ), . 54-65.

    E k v : I 979/8; x Gu w

    Kuw Iq x 99; Ju , u OPEC u v u u u L u. I ,IEA w u . T u u IEA v qu u: U S k u 4.4 , u I uu . S P, Sv:W , Financial Times, Ju3, .

    F x, Su A u v Tu E w

    w $33 S Skk, J: Su k uv wu, Financial Times, Fu 3, .

    O x w OPEC V Ju w Su A wuuv I u u

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    OPEC v u . S B, Dv: O OPEC , Financial Times, Ju 8, .

    3 K, R O./V, Dv G.: T RCx C C, APSA Perspectives onPolitics, V. 9 Iu (M ), . 7-3

    4 Tu, Ru, Bu, Uk, Cv u 9 v 4 ( w z

    99 v). T -qu u v Ax I u 9 u . S Z, .., . 55.

    5 V, Dv G.: Global Warming Gridlock, CreatingMore Effective Strategies for Protecting the Planet,C: C Uv P , .3. S A, W/T, S: FastForward, Ethics and Politics in the Age of Global Warming,W, DC: Bk (v ), .68.

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