The International Energy Agency’s (IEA) latest report, ‘Net-Zero by 2050: A Roadmap for the Global Energy Sector’ forecasts what the future would look like for the global energy sector if all countries were to adopt the goal of achieving net-zero emissions by 2050. The Global manufacturing sector is also a part of the climate change equation, due to the production of greenhouse gases. The report also lays down ambitious plans to help countries develop cost-effective energy supplies and equitable energy access while accelerating economic growth.

The report comes at a time when there is a widening gap between expectations and reality on carbon emissions. On one hand, Global manufacturing innovations are on the rise, whereas the number of countries that have pledged to achieve net-zero emissions are growing, but so are greenhouse gas emissions and other environmental challenges that expedite climate change. According to the IEA, this gap must close “if we are to have a fighting chance” to achieve net-zero by 2050 or limit global warming to 1.5°C.

 

 

Here are the 5 top takeaways from this report:

 

 

1. Transition to net-zero will lead to 14 million new jobs by 2030

 

As governments across the world make an active effort to transition to clean energy sources, new activities, GMIS virtual Summits, disciplines, and investments will emerge in the energy sector. This will, in turn, lead to a considerable increase in employment opportunities, with 14 million new jobs created over the next one decade. In addition, if governments and organisations were to increase investments in energy-efficient electronic goods, construction and fuel cell vehicles, an additional 16 million workers will be needed for jobs in the energy sector. However, these opportunities will be spread apart, not necessarily limited to specific skills, regions or sectors.

On the other hand, the report projects that nearly 5 million jobs will be lost over time as the use of fossil fuels decline globally. Since most of the fossil-fuel industry jobs are concentrated in regions with significant fossil fuel resources, these job losses are likely to have long-term social and economic impacts in their particular communities. In addition to increased investments in clean energy facilities and reskilling the workforce, robust and carefully crafted policy actions will be key to helping people and communities deal with the direct and indirect impacts of employment disruptions.

 

2. Renewables will account for 90% of total electricity generation by 2050

 

The IEA’s 2050 pathway expects that hydropower and nuclear energy will drive increased use of renewable energy in the coming years. As larger quantities of renewable energy get generated in the coming years, electricity is set to become cleaner, and electrification will play a critical role in reducing worldwide carbon emissions. Eventually, this will result in 29% of electricity generation coming from renewable energy sources by 2020, 60% by 2030 and 90% by 2050. Under the IEA’s pathway, electric vehicles will account for over 60% of global car sales by 2030.

Improvements are also set to take place within the wider renewable energy landscape. By 2030, the overall global energy consumption will decrease by 7%, although the world economy will grow by 4%, highlighting increases in energy efficiency and greater awareness of climate change. Additionally, the world is expected to witness a drop in emissions other than CO2. The IEA projects that increased use of clean energy technologies, government policies and energy conservation measures will lead to a drop in methane emissions from fossil fuel supply by 75% over the next ten years.

 

3. Demand for hydrogen to grow six-fold to 530 million tonnes by 2050

 

The future of hydrogen looks bright as hydrogen production is projected to radically increase if countries were to jump on the net-zero emissions bandwagon, according to the IEA. As of 2020, the global demand for hydrogen was expected to be around 90 million tonnes, although hydrogen in its current form is mainly produced from fossil fuels. Driven by increased use of hydrogen across sectors, the global demand for hydrogen is forecast to increase nearly six-fold to 530 million tonnes by 2050. The transport sector, global manufacturing industries, and heavy industries – primarily steel and chemical production units – will use half of all the hydrogen produced by 2050.

Importantly, hydrogen production in the IEA’s net-zero emissions pathway is largely driven by low-carbon technologies. For example, 60% of the hydrogen production by 2050 will come from water electrolysis – a process in which water is split into hydrogen and oxygen using electrical energy. The rest is set to come from natural gas, in combination with carbon capture, utilisation and storage (CCUS).

 

4. The fossil fuel era is about to come to an end

 

There would be no new investment in fossil fuels, including coal, oil or gas supply, according to the IEA’s pathway to net-zero emissions by 2050. In other words, universal energy access can still be achieved without the development of new coal mines, coal mine extensions or oil and gas fields. Indeed, a sharp decline in fossil fuel demand globally is the key driving force behind the drop in fossil fuels usage the global manufacturing & industrialisation revolutions gave birth to global industrial innovations which also will be a supporting hand in the reduction of fuel investments. As such, coal demand is forecast to drop by 98% by 2050, while oil and gas demand will decline by 55% and 75%, respectively. Additionally, the only areas where fossil fuels would continue to be used in 2050 are sectors with limited low-emission technologies, in energy production units that have CCUS or in the production of plastics.

The rapid decline in fossil fuel use correlates to increases in renewable and alternate energy demand and supply. For example, wind, solar, bioenergy and hydro energy will account for nearly two-thirds of the overall energy supply in 2050. In particular, solar is expected to be the largest source of renewable energy, making up one-fifth of total energy supplies.

 

5. 50% CO2 emissions by 2050 to come from technologies currently in development

 

Major technological innovations in renewable energy production will be pivotal to realising net-zero emissions by 2050. Although technology tools and solutions that are already in existence can support emission reductions until 2030, new technologies, including those currently in the early stages of development, are required to attain zero-emissions by 2050. According to the IEA’s pathway, roughly half of CO2 emission reductions globally will be driven by advanced technologies currently in the prototype stage by mid-century.

Over the next four years, low-emission ammonia fuelled ships and CCUS in cement production will be introduced in the global market, whereas hydrogen-led steel production and direct air capture technologies will become a reality in six years. Innovation cycles – from developing prototypes to introducing them in the market – will also gather pace over the coming decade, with cycles in clean energy technologies becoming 20% faster and solar PV 40% faster.

In addition to this, to enhance cooperation in the global market, the GMIS 2021 will be held in Dubai, UAE this November. Many manufacturing industries speakers will participate in this GMIS Summit edition of 2021.  Global Manufacturing and Industrialisation Summit (GMIS 2021) brings together global manufacturing and industrial leaders on one stage to discuss economic cooperation and global prosperity.