Technology Innovation to Accelerate Energy Transitions |
1.Innovation is critical for meeting long-term policy goals |
1. Innovation is critical for meeting long-term policy goals
The G20 in the changing energy landscape
Today, G20 members account for 87% of the global economy, 75% of world trade and nearly two-thirds of the global population. In 2016, G20 countries collectively were responsible for 81% of energy-related carbon dioxide (CO2) emissions and 78% of global energy consumption. Energy pathway changes in this group of countries have a significant impact global energy markets and technologies. Annual growth in total primary energy supply (TPES) during 2006-16 illustrates that gross domestic product (GDP) has been the driver for energy demand growth in half of the G20 countries in the Middle East, Asia, Latin America and the Pacific. TPES growth in European Union (EU) countries, the United States (US) and Canada has declined owing to greater energy efficiency and structural changes to their economies.
Figure 1. TPES change 2006-16 by GDP per capita
TPES change 2006-16
0.7 |
India |
|
|
|
|
|
|
|
0.6 |
|
|
|
|
|
|
|
|
China |
|
|
|
|
|
Saudi Arabia |
|
|
0.5 |
|
Turkey |
|
|
|
|
||
|
|
|
|
|
|
|
||
0.4 |
|
|
|
|
|
|
|
|
Brazil |
|
|
Korea |
|
|
|
||
0.3 |
Argentina |
|
|
|
||||
0.2 |
Indonesia |
|
|
|
|
|
||
South Africa |
|
|
|
|
Australia |
|
||
0.1 |
|
Russian Federation |
|
Canada |
|
|||
|
|
|
|
|
|
|||
0 |
|
Mexico |
|
|
|
|
||
|
EU-28 |
France |
|
United States |
|
|||
-0.1 |
|
Germany |
|
|||||
|
|
Italy |
|
|
|
|
||
-0.2 |
|
|
|
|
|
|
||
|
|
Japan |
United Kingdom |
|
|
|||
-0.3 |
|
|
|
|
|
|||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
0 |
10 |
20 |
30 |
|
40 |
|
50 |
60 |
GDP (USD 1 000 PPP) per capita 2016
Note: China = People’s Republic of China (“China”); EU-28 = the 28 member countries of the European Union; PPP = purchasing power parity.
Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics.
PAGE | 4
IEA. All rights reserved.
Technology Innovation to Accelerate Energy Transitions 1.Innovation is critical for meeting long-term policy goals
Figure 2. |
TPES by country, 2006 and 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
3 500 |
Mtoe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
80% |
|
2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
62% |
52% |
55% |
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
3 000 |
|
|
|
|
|
|
|
47% |
|
|
|
|
|
|
60% |
|
2016 |
||||||||||
|
|
|
|
|
|
|
-6% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2 500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
32% |
|
|
|
28% |
26% |
|
|
|
|
-11% |
40% |
|
Change |
|||||||
2 000 |
|
|
|
|
|
|
|
|
|
12% 18% |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1 500 |
|
10% |
1% |
|
|
|
|
1% |
|
|
|
|
|
|
|
|
|
|
9% |
|
|
20% |
|
(right axis) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
1 000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
-9% -11% |
-18% |
-18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0% |
|
|
|||
500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
-18% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-20% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Note: Mtoe = million tonnes of oil equivalent.
Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics.
The G20 collectively relies on a high share of fossil fuels in its total energy supply. Coal remains the largest energy source for electricity generation, accounting for 43%, while oil products dominate G20 final energy consumption (39%). Energy supply has increased across all fuels in the last decade, notably new renewables in power generation.
Figure 3. TPES by fuel, 2016
Saudi Arabia
Australia
Japan
Mexico
Argentina
Russian Federation
China
South Africa
Turkey
United States
Korea
Italy
United Kingdom
Germany
India
Canada
EU-28
Indonesia
Brazil
France
0% |
10% |
20% |
30% |
40% |
50% |
60% |
70% |
80% |
90% |
100% |
Coal* 
Natural gas 
Oil 
Nuclear 
Hydro 
Geothermal 
Other renewables** 
Biofuels and waste
*Coal also includes shares of peat and oil shale. **Other renewables includes wind and solar.
Note: Does not include electricity imports and exports.
Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics.
PAGE | 5
IEA. All rights reserved.
Technology Innovation to Accelerate Energy Transitions |
1.Innovation is critical for meeting long-term policy goals |
Figure 4. Electricity generation by fuel, 2016
Saudi Arabia
South Africa
Indonesia
Australia
Mexico
India
Japan
China
United States
Korea
Argentina
Turkey
Russian Federation
Italy
Germany
United Kingdom
EU-28
Canada
Brazil
France
0% |
10% |
20% |
30% |
40% |
50% |
60% |
70% |
80% |
90% |
100% |
Coal* 
Natural gas 
Oil 
Nuclear 
Hydro 
Geothermal 
Other renewables** 
Biofuels and waste
*Coal also includes shares of peat and oil shale. **Other renewables includes wind and solar.
Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics.
Energy technology progress has not been consistent across sectors, with lagging progress in many sectors and technologies that are critical for effective global energy transitions. The online IEA publication, Tracking Clean Energy Progress (TCEP), assesses policy, investment, deployment and innovation progress in 43 sectors and technologies, rating them green if on track with the transition, yellow if further efforts are needed and red if fully not on track (Figure 5).
PAGE | 6
IEA. All rights reserved.