Challenges in the decarbonization of the energy sector

TLDR

Reducing CO₂ emissions from the energy sector is essential to limit climate change impacts. The article critically reviews technologies, policies, and solutions for decarbonizing the energy sector, concluding that a global carbon tax is the most promising instrument. Options are grouped into secondary energy carriers, end‑use sectors, and sector interdependencies, with challenges identified across environmental, security, economic, and social dimensions. Decarbonization will be very challenging due to high capital requirements, sector competition, inconsistent policies, and public acceptance issues.

Abstract

In order to limit the effects of climate change, the carbon dioxide emissions associated with the energy sector need to be reduced. Significant reductions can be achieved by using appropriate technologies and policies. In the context of recent discussions about climate change and energy transition, this article critically reviews some technologies, policies and frequently discussed solutions. The options for carbon emission reductions are grouped into (1) generation of secondary energy carriers, (2) end-use energy sectors and (3) sector interdependencies. The challenges on the way to a decarbonized energy sector are identified with respect to environmental sustainability, security of energy supply, economic stability and social aspects. A global carbon tax is the most promising instrument to accelerate the process of decarbonization. Nevertheless, this process will be very challenging for humanity due to high capital requirements, the competition among energy sectors for decarbonization options, inconsistent environmental policies and public acceptance of changes in energy use.