Climate Solutions 2: Low-Carbon Re-Industrialisation - WWF Blogs

e identified as of strategic national
and international importance and that
its deployment is coordinated by and
between governments.
11.9 Liquid Fuel Limitations
Problem: Though many energy needs
currently met by fossil fuels can be
replaced by using electricity generated
with renewable energy, the transport
sector presents a particular challenge.
The total resource for biofuels (assuming
no competition with food production)
will not be sufficient to meet all of the
demand types currently met by oil. At
this stage, the two sectors with the
fewest viable alternatives to a liquid fuel
are the aviation and shipping sectors.
The Policy Challenge: With significant
avoided aviation and shipping there
will be adequate bio-hydrocarbons
available from agricultural and forestry
wastes to meet the remaining needs
of these two sectors, but land-based
transport needs will have to be met
through other energy carriers supplied
from renewable energy. Definitive
transport energy policy is required to
avoid economic dislocations in these
sectors. This may require a set of
mandatory fuel-use targets to be set
to transition the aviation sector to biokerosene
and shipping to biodiesel
supplied from biomass sources that do
not compete with food crops. National
and international targets may also
be established to fully transition the
land-based transport sector to energy
carriers (such as batteries or hydrogen)
supplied by renewable power.
11.10 Leveraging Investment
Problem: This project has identified
that the process of low-carbon
re-industrialisation will create longterm
savings against business-asusual.
These savings represent a major
investment opportunity but no financial
mechanism currently exists to leverage
the trillions of dollars required.
The Policy Challenge: Leveraging
such an opportunity will require the
participation of three key players:
1. Industry – to rapidly expand
production and deployment, and
reduce costs through economies of
scale.
2. Institutional investors – to finance
the industry development until
such a time as cost competitiveness
is achieved and returns can be
achieved.
3. Governments – to provide a
secure investment framework for
the investors and industry. This
framework must ensure that they
are able to extract a return on
the investment using the savings
created from low-carbon industries
achieving economies of scale.
Climate Solutions 2: Low-Carbon Re-Industrialisation
104
Climate Risk