By Nora Buli
OSLO (Reuters) – Global rivalries and ebbing political will to tackle the climate crisis could delay global emissions reduction efforts and make them more costly, Norwegian utility Statkraft said on Tuesday.
The Norwegian state-owned company is one of Europe’s largest renewable energy producers and also operates several gas plants in Germany.
On Tuesday, it presented the eighth edition of its annual report on how the world can achieve low levels of greenhouse gas emissions and whether it is on track.
Statkraft says its main Low Emissions Scenario, is “optimistic but realistic” and could result in an emissions drop of nearly 70% by 2050, but still short of the net-zero emissions target by 2050 many countries have set themselves.
Solar and wind power are expected to increase 22 and 12 times, respectively, from current levels by 2050, more than forecast in previous reports, driven by competitiveness, energy security concerns and climate policies, it said.
“It is important that we are mindful of the choices we make today and how they will affect the energy transition,” said Statkraft CEO Christian Rynning-Toennesen.
For the first time, Statkraft’s report also looks at the potential impact of geopolitical tensions and regional rivalries could have on reducing greenhouse gas emissions, by adding two scenarios.
The Clean Tech Rivalry scenario assumes a subsidy-fuelled and protectionist competition between global powerhouses such as the United States, the European Union and China.
Solar and wind power would still grow, but with delays and at higher costs, resulting in energy-related CO2 emissions in 2050 being 20% higher compared to the Low Emissions scenario.
The Delayed Transition scenario assumes that focus on high inflation and costs of living, national security, and social unrest lead to reduced climate action.
Solar and wind power would still grow, but at a slower pace and energy-related CO2 emissions in 2050 would be 130% higher than for the Low Emissions Scenario.
(Reporting by Nora Buli; Editing by Tomasz Janowski)
