New Report Says Europe Could Achieve 80 Percent GHG Emissions Reduction by 2050 Based on 1990 Baseline

A new report commissioned by the European Climate Foundation concludes that "by deploying technologies already commercial today or in late development stages, Europe could reduce greenhouse gas emissions by 80 percent by 2050 compared to 1990 levels and still provide the same level of reliability as the existing energy system."

The report, Roadmap 2050, says that five priorities must be set for the period 2010-2015 in order for the 80 percent reduction goal to be achieved:

• Energy efficiency must be improved
• Low carbon technologies should be invested in
• Grids and integrated market operation mechanisms need to be enhanced
• Fuel shifts in transport and buildings need to be undertaken
• Markets for commercial low carbon technologies must be established and allowed to operate in a certain and competitive landscape

The report clearly reflects one point of view -- that of a low carbon future. But one has to wonder when, if ever, the US and other developed countries will match Europe's widespread interest in implementing, rather than just talking about, a low carbon future.

Cost of Carbon and Capital Financing Keys to Future Costs of Generating Electricity According to New IEA and OECD Study

The price of carbon and the costs of raising capital will be the two most important elements to the cost of generating electricity in the future according to a new study by the International Energy Agency and the OECD Nuclear Energy Agency (NEA).

NEA Director General Luis Eschavarri, noted in particular that "to bolster competitiveness of low-carbon technologies such as nuclear, renewables and carbon capture and storage, we need strong government action to lower the cost of financing and a significant carbon dioxide price signal to be internalised in power markets."

The report, Projected Costs of Generating Electricity: 2010 Edition, also noted the important role that governments play in decisions about electricity generation:

Governments play a key role when it comes to the cost of raising financial capital and the price of carbon. The cost of capital is essentially a function of the risk faced by each option for generating electricity -- market risk, technology risk, construction and regulatory risk. With their high capital costs, low-carbon technologies such as nuclear, renewables and carbon capture and storage are particularly vulnerable. Smart government action, however, can do much to reduce these risks.