A new report from the OECD and the International Energy Agency says energy efficiency is the top priority for reducing carbon emissions.
The key message is that a transformation is required in the way the world produces, delivers and consumes energy.
The report, Green Growth Studies: Energy, says the carbon-intensity of the energy sector must be lowered and decisions must be made on the future of the energy sector due to huge global demand.
Developed countries are in the process of renewing their energy infrastructure and developing countries are building new power plants to meet increased energy demand. The focus must be on new technology as well as utilising existing green growth energy, it said.
The energy sector is responsible for the majority of CO2 emissions, and a consensus on green growth policies could halve world-wide energy-related emissions by 2050.
OECD Secretary-General Angel Gurria said, “We have a window of opportunity for establishing a policy framework to enable transformational change in the energy sector. The environmental imperative to reduce CO2 emissions coincides with a looming new investment cycle in power generation in most OECD countries.”
Reform of the energy sector will require around $US 46 trillion before 2050 in order to improve energy efficiency, deploy more renewable energy, increase carbon capture and storage and support new technologies.