World Energy Outlook 2007

Technology Co-operation and Collaboration
The development and deployment of cleaner, more efficient energy
technologies serve the common objectives of energy security, environmental
protection and economic growth. Existing technologies can take us some of the
way down the path towards more sustainable energy use – a central finding of
the Alternative Policy Scenario. But technological breakthroughs that change
profoundly the way we produce and consume energy will almost certainly be
needed to achieve a truly sustainable energy system in the long term.
A portfolio approach to technology development is indispensable. Carbon
capture and storage technology is one of the most promising options for
mitigating emissions, with particular promise for the period beyond 2030 –
especially in China and India, where coal use is growing fastest, and in the
United States and other countries that will remain dependent on coal for
decades to come (see Chapter 5). Advanced nuclear reactors and renewable
energy technologies could pave the way for a wholesale shift away from fossil
fuels in the longer term. International co-operation, including collaboration on
emerging energy technologies, can make a big contribution to improving the
effectiveness of public and private spending on research and development, and
to facilitating the deployment of new technologies around the world. The
involvement of China and India is increasingly important to the success of such
co-operation.
Governments have a central role to play in pushing technology advances, by
directly supporting research, development and demonstration, by encouraging
private companies to invest in technological development and by facilitating
the international commercialisation of new technologies. In the case of basic
science, governments are normally called upon to support the entire cost of
research. With technologies that are close to commercialisation, private
companies are normally expected to take on much or even all of the cost.
Public budgets for energy research and development in IEA countries fell
heavily in the 1980s and the early 1990s and have barely recovered since
(Figure 6.1); private-sector spending is also thought to have fallen sharply.
Given the scale of the energy challenge facing the world, a substantial increase
in public and private funding for research, development and demonstration is
called for. A greater share of funding may need to be directed to the
demonstration of emerging technologies, notably carbon capture and storage
(CCS) and other clean coal technologies. The financial burden of supporting
research efforts will continue to fall largely on IEA countries.
Although they are increasingly installing state-of-the art energy facilities, China
and India continue to use supply- and demand-side technologies that are
generally less advanced than those being deployed in IEA countries. This
reflects differences in market conditions, including the availability of financial
6
Chapter 6 - Energy Policy Ramifications 235