The book provides an integrated analysis of the implications for the energy system from adapting to meet climate change targets and analyses the role of improving energy technologies for the world and the EU markets. The first part of the book sets the stage for the analysis by presenting the European and World economic and energy outlook. The second part examines the policy options available for controlling greenhouse gases in the period to 2010. Over such a relatively short period, the role of technology lies mostly in making possible the more efficient use of energy. Finally, the third part of the volume examines the longer term role of technology in the context of a case study for the power generation sector.

This edition of the Global Energy and Climate Outlook (GECO) analyses the role of electrification in global transition pathways to a low Greenhouse Gas (GHG) emissions economy. Electricity is found to be an increasingly important energy carrier in final energy consumption already in the absence of stronger climate policies than those currently in place (Reference scenario), while enhanced electrification of final energy demand is a crucial element of the 2°C temperature change scenario, paving the way to climate neutrality. The 2°C target could be achieved by simultaneously transforming various elements of the energy system: shifting final energy demand from mainly fossil fuels towards electricity and low-carbon synthetic fuels mainly derived from electricity; decarbonising power generation; increasing energy efficiency in end-uses, which is favoured by further electrification; and mobilising novel options to better accommodate high shares of intermittent renewable electricity sources, such as demand-side load management and power storage. This report further shows that the 2°C target is technically possible at relatively low cost for the overall economy (global GDP reduction below 1% across all sensitivities compared to Reference in 2050). This would also bring along co-benefits for air quality. In order to explore the role that electrification can play as an emissions mitigation option, a number of sensitivity variants on key parameters impacting the energy system - energy prices, cost of technologies, non-economic drivers related to behaviour and policy - are conducted. The role of electricity is examined by large sector (industry, transport, buildings, power generation), with a particular regional focus on the EU and China and a sectoral focus on road transport electrification.