World Economic Outlook (WEO) 2013

Report by Santanu Ganguly: The IEA must be complimented for bringing out the WEO Special Report “Redrawing the Energy-Climate Map” at a time when there is rapid and growing realization globally that efforts to limit average global temperature rise to below 2 degrees C target are failing to be taken up at the required scales and rates, given that international negotiations have not moved forward as desired.

Unlike several other studies that are increasingly talking about the 2 degree target being an impossibility to achieve now, it is heartening to note that the report is still optimistic that this target is not completely missed and is technically feasible, though challenging to achieve.

The 4 elements highlighted (energy efficiency measures, limiting use of inefficient power generation technologies, minimizing methane emissions from upstream oil and gas and accelerating phase out of subsidies) are clearly desirable. Of course, in India's case it would be more relevant to talk about better directed, effective subsidies. It would also be difficult to envisage limiting the use of inefficient power plants in a scenario where millions still lack access to electricity and energy and peak shortages continue. However, this recommendation must be seen in the context of our extreme energy insecurity and the high cost of inefficiencies.

The financial implications of the stronger climate policies seem to be underestimated as significant costs are likely to be incurred to provide the necessary infrastructure and institutional set-ups to enable the transitions across countries. Of course, the ability to make such investments varies across the developed and developing countries and must be recognised as such. Globally, the development challenge also seems to be underplayed – with improved access to energy and infrastructure to millions of people in the developing world, the window of opportunity with current technologies (at current costs) seems to be more limited than what this study seems to suggest.

Greater global cooperation to make available a suite of low carbon technologies across sectors at affordable costs is extremely important, and must be addressed with a sense of urgency.