Chapter 7: Energy-Related Carbon Dioxide Emissions
| In the coming decades, actions to limit greenhouse gas emissions
could
affect patterns of energy use around the world and alter the level
and composition
of energy-related carbon dioxide emissions by energy source. |
Carbon dioxide is one of the most prevalent greenhouse gases in the atmosphere.
Anthropogenic (human-caused) emissions of carbon dioxide result primarily
from the combustion of fossil fuels for energy, and as a result world energy
use has emerged at the center of the climate change debate. In the IEO2006 reference case, world carbon dioxide emissions increase from 25,028 million
metric tons in 2003 to 33,663 million metric tons in 2015 and 43,676 million
metric tons in 2030 (Figure 65).14
The Kyoto Protocol, which requires participating Annex I countries to
reduce their greenhouse gas emissions collectively to an annual average
of about 5 percent below their 1990 level over the 2008-2012 period, entered
into force on February 16, 2005, 90 days after it was ratified by Russia.
Russias ratification satisfied the terms necessary to bring the treaty
into force; that is, the total number of signatories had reached more than
55 countries, including Annex I signatories that accounted for more than
55 percent of Annex I carbon dioxide emissions in 1990. The Annex I countries
include all the OECD countries except for Mexico and South Korea, along
with the non-OECD countries Bulgaria, Estonia, Latvia, Lithuania, Monaco,
Romania, Russia, Slovenia, and Ukraine.15
The IEO2006 reference case projections are based on U.S. and foreign government
laws in effect on January 1, 2006. The potential impacts of pending or
proposed legislation, regulations, and standards are not reflected in the
projections, nor are the impacts of legislation for which implementing
mechanisms have not been announced. The IEO2006 reference case does not
include the potential impacts of the Kyoto Protocol, because the treaty
does not indicate the methods by which ratifying parties will implement
their obligations. Moreover, the Protocol does not address signatory obligations
beyond 2012, making it impossible to assess its impacts on energy markets
and carbon dioxide emissions through 2030 in the context of a reference
case projection. In the year since the Kyoto Protocol entered into force,
there has been little progress toward establishing goals for a second commitment
period.
Another difficulty in projecting energy-related carbon dioxide emissions
in the context of the Kyoto Protocol is that, in the 5-year increments
of the SAGE model, upon which the IEO2006 projections are based, 2010 is
the only projection year that is part of the Protocols first commitment
period. While some participating countries have identified goals by energy-consuming
sectors, not all have; and even for those that have done so, it is difficult
to assess how the goals will be implemented with specific actions by the
participants.
Despite the challenges, it is important to address the possible impacts
of the Kyoto Protocol, because they could strongly influence future energy
trends. Accordingly, this chapter begins with a presentation of the IEO2006 reference case projections for regional carbon dioxide emissions, which
can serve as an estimate against which future emissions reductions can
be measured. The IEO2006 Kyoto Protocol case assumes that the emissions
goals of the Protocol will be met by the countries that have ratified the
treaty and have obligations to limit or reduce their greenhouse gas emissions,
using a combination of domestic actions and purchases of international
emissions permits. Further, although the current agreement extends only
to 2012, the targets specified under the Protocol for the first commitment
period are assumed to remain in place through 2030. Results from the Kyoto
Protocol case are analyzed in the second part of the chapter.
Reference Case
Carbon Dioxide Emissions
In the IEO2006 reference case, world carbon dioxide emissions from the
consumption of fossil fuels grow at an average rate of 2.1 percent per
year from 2003 to 2030. Emissions in 2030 total 43,676 million metric tons.
Combustion of petroleum products contributes 5,028 million metric tons
to the increase from 2003, coal 8,801 million metric tons, and natural
gas 4,804 million metric tons (Figure 66). In the absence of carbon constraints,
coal use is projected to grow at about the same rate as natural gas use,
from 2003 consumption levels (in Btu) that are nearly identical; however,
coal is a more carbon-intensive fuel than natural gas, and thus the increment
in carbon dioxide emissions from coal combustion is larger than the increment
in emissions from natural gas.
With oil prices in 2025 about 35 percent higher in the IEO2006 reference
case than projected in IEO2005, oil consumption and related emissions increase
at a slower rate in the IEO2006 projections (by an average of 1.5 percent
per year, as compared with 1.9 percent per year in the IEO2005 reference
case), well below the growth rates for emissions related to natural gas
and coal in this years projections. As a result, coal combustion overtakes
oil as the largest source of carbon dioxide emissions from 2015 to 2030
(Figure 66).

Figure Data |
Table 12. World Carbon Dioxide Emissions by Region, 1990-2030
(Million Metric Tons)
Printer friendly version 
| Region |
History |
Projections |
Average Annual
Percent Change |
| 1990 |
2003 |
2010 |
2015 |
2020 |
2025 |
2030 |
1990-2003 |
2003-2030 |
| OECD |
11,378 |
13,150 |
14,249 |
15,020 |
15,709 |
16,545 |
17,496 |
1.1 |
1.1 |
| North America |
5,753 |
6,797 |
7,505 |
7,997 |
8,513 |
9,096 |
9,735 |
1.3 |
1.3 |
| Europe |
4,089 |
4,264 |
4,474 |
4,632 |
4,741 |
4,909 |
5,123 |
0.3 |
0.7 |
| Asia |
1,536 |
2,090 |
2,269 |
2,390 |
2,455 |
2,540 |
2,638 |
2.4 |
0.9 |
| Non-OECD |
9,846 |
11,878 |
16,113 |
18,643 |
21,039 |
23,500 |
26,180 |
1.5 |
3.0 |
| Europe and Eurasia |
4,193 |
2,725 |
3,113 |
3,444 |
3,758 |
4,047 |
4,352 |
-3.3 |
1.7 |
| Asia |
3,626 |
6,072 |
9,079 |
10,753 |
12,407 |
14,113 |
15,984 |
4.0 |
3.6 |
| Middle East |
704 |
1,182 |
1,463 |
1,647 |
1,811 |
1,987 |
2,177 |
4.1 |
2.3 |
| Africa |
649 |
893 |
1,188 |
1,363 |
1,477 |
1,593 |
1,733 |
2.5 |
2.5 |
| Central and South America |
673 |
1,006 |
1,270 |
1,436 |
1,586 |
1,758 |
1,933 |
3.1 |
2.4 |
| Total World |
21,223 |
25,028 |
30,362 |
33,663 |
36,748 |
40,045 |
43,676 |
1.3 |
2.1 |
|

Figure Data |
Table 13. Carbon Dioxide Intensity by Region and Country, 1990-2030
(Metric Tons per Million 2000 U.S. Dollars of Gross Domestic Product)
Printer friendly version 
| Region |
History |
Projections |
Average Annual
Percent Change |
| 1990 |
2003 |
2010 |
2015 |
2020 |
2025 |
2030 |
1990-
2003 |
2003-
2030 |
| OECD |
565 |
473 |
421 |
391 |
361 |
338 |
318 |
-1.4 |
-1.5 |
| United States |
701 |
562 |
488 |
445 |
406 |
377 |
351 |
-1.7 |
-1.7 |
| Canada |
693 |
611 |
574 |
561 |
538 |
520 |
498 |
-1.0 |
-0.8 |
| Mexico |
441 |
415 |
360 |
337 |
311 |
286 |
261 |
-0.5 |
-1.7 |
| Europe |
510 |
395 |
352 |
326 |
300 |
280 |
264 |
-1.9 |
-1.5 |
| Japan |
349 |
357 |
311 |
293 |
274 |
261 |
250 |
0.2 |
-1.3 |
| South Korea |
711 |
687 |
629 |
572 |
529 |
501 |
475 |
-0.3 |
-1.4 |
| Australia/New Zealand |
679 |
631 |
583 |
546 |
512 |
482 |
453 |
-0.6 |
-1.2 |
| Non-OECD |
723 |
516 |
466 |
423 |
380 |
341 |
307 |
-2.6 |
-1.9 |
| Russia |
1,042 |
903 |
711 |
637 |
579 |
522 |
474 |
-1.1 |
-2.4 |
| Other Europe/Eurasia |
1,622 |
1,018 |
737 |
654 |
578 |
521 |
473 |
-3.5 |
-2.8 |
| Asia |
627 |
449 |
430 |
390 |
350 |
314 |
282 |
-2.5 |
-1.7 |
| China |
1,240 |
591 |
579 |
517 |
463 |
414 |
372 |
-5.5 |
-1.7 |
| India |
343 |
299 |
265 |
238 |
208 |
182 |
156 |
-1.1 |
-2.4 |
| Other |
353 |
368 |
316 |
293 |
267 |
245 |
222 |
0.3 |
-1.9 |
| Middle East |
869 |
871 |
752 |
693 |
633 |
581 |
533 |
0.0 |
-1.8 |
| Africa |
444 |
411 |
386 |
357 |
315 |
279 |
249 |
-0.6 |
-1.8 |
| Central and South America |
310 |
327 |
307 |
290 |
269 |
251 |
232 |
0.4 |
-1.3 |
| Brazil |
215 |
252 |
235 |
220 |
203 |
189 |
176 |
1.2 |
-1.3 |
| Other |
393 |
388 |
362 |
342 |
317 |
295 |
272 |
-0.1 |
-1.3 |
| Total World |
629 |
493 |
444 |
408 |
372 |
340 |
311 |
-1.9 |
-1.7 |
|

Figure Data |
The OECD economies, for the most part, are growing more slowly than the
non-OECD economies, and their growth tends to be in less energy-intensive
sectors. As a result, carbon dioxide emissions from the OECD economies
grow by 1.1 percent per year from 2003 to 2030 in the reference case, absent
binding constraints (Figure 67 and Table 12). Emissions from North America
grow the most rapidly among the OECD regions, by 1.3 percent per year.
North Americas average annual increase in GDP is 3.1 percent from 2003
to 2030, resulting from the combination of a 2.2-percent average increase
in per capita income and population growth that averages 0.9 percent annually.
That strong economic growth drives the demand for fossil fuels and thus
the projected increase in the regions carbon dioxide emissions.
In contrast to North America, fairly modest growth in GDP is projected
for OECD Europe and OECD Asia (2.2 and 1.9 percent per year, respectively),
resulting from per capita income growth of 2.0 percent per year in OECD
Europe and 1.9 percent per year in OECD Asia and population growth rates
that average only 0.2 percent and 0.1 percent per year, respectively. Thus,
only limited growth in demand for energy is projected for the two regions,
leading to slower growth in emissions. Carbon dioxide emissions in OECD
Europe grow by 0.7 percent per year on average from 2003 to 2030, and emissions
in OECD Asia grow by an average of 0.9 percent per year.
Carbon dioxide emissions in non-OECD Europe and Eurasia increase on average
by 1.7 percent per year in the IEO2006 reference case, from 2,725 million
metric tons in 2003 to 3,444 million metric tons in 2015 and 4,352 million
metric tons in 2030 (Figure 68 and Table 12). Russia, the regions largest
economy, accounted for 60 percent of regional energy consumption and 59
percent of regional carbon dioxide emissions in 2003.
The economic collapse of the Soviet Union and the Eastern European countries
in its sphere of influencemost of which are included in non-OECD Europe
and Eurasiaslowed the growth of carbon dioxide emissions not only in the
region but also on a worldwide basis for many years after the breakup of
the Soviet Union in 1991. In 2003, total carbon dioxide emissions in the
countries of non-OECD Europe and Eurasia were still 35 percent below their
level in 1990, and in the reference case projection they do not return
to 1990 levels until after 2025.
Although GDP growth in non-OECD Europe and Eurasia averages 4.4 percent
per year from 2003 to 2030 in the reference case, improvements in energy
infrastructure are expected to keep the growth in energy demand at an annual
average of only 1.8 percent. In addition, an increase in the natural gas
share of total energy consumption and a drop in coals share are expected
to lower the carbon intensity of energy supply in the region. Consequently,
carbon dioxide emissions in non-OECD Europe and Eurasia in 2030 are only
159 million metric tons above the 1990 level.
For the other non-OECD economies, the reference case projects strong economic
growth driven largely by the energy-intensive industrial and transportation
sectors. Accordingly, their carbon dioxide emissions grow at twice the
rate projected for non-OECD Europe and Eurasia (and three times the rate
for the OECD economies), bringing the average annual increase in emissions
for all non-OECD countries to 3.0 percent per year from 2003 to 2030. The
most rapid increases are projected for the nations of non-OECD Asia (Figure
69).
Carbon Dioxide Intensity
World carbon dioxide intensity has improved (decreased) substantially over
the past decade, falling from 629 metric tons per million 2000 U.S. dollars
of GDP in 1990 to 493 metric tons per million dollars in 2003. Although
the pace of improvement in emissions intensity is expected to be slower
over the 2003-2030 period than it has been over the past decade, a continuing
decline in intensity is projected in the reference case, to 408 metric tons per million dollars in 2015 and 311 metric tons per million
dollars in 2030 (Table 13).
On a regional basis, the most rapid rates of improvement in carbon dioxide
intensity are projected for the economies of non-OECD Europe and Eurasia
and for the economies of India and other non-OECD Asia. In Eurasia, economic
recovery from the upheaval of the 1990s following the breakup of the Soviet
Union is expected to continue throughout the projections, and old, inefficient
capital stock is expected to be replaced as the economic recovery progresses.
Even with substantial improvement in efficiency, however, carbon dioxide
intensity in non-OECD Europe and Eurasia is expected to be higher than
in all other non-OECD countries except those of the Middle East.
Economic recovery has been slower in Russia than in the other nations of
non-OECD Europe and Eurasia, where strong investment in improving the efficiency
of energy use and a push to increase the use of natural gas have improved
carbon dioxide intensity by an average of 3.5 percent annually from 1990
to 2003, as compared with an annual average of 1.1 percent for Russia.
From 2003 to 2030, Russias carbon dioxide intensity is projected to improve
by 2.4 percent per year on average, while the rest of the region averages
2.8 percent per year.
Fairly rapid improvement in carbon dioxide intensity in non-OECD Asia is
expected to result primarily from rapid economic growth rather than a switch
to less carbon-intensive fuels. Although China and India, in particular,
are expected to remain heavily reliant on coal and other fossil fuels,
their combined annual GDP growth averages 5.8 percent from 2003 to 2030,
compared with a 4.0-percent annual increase in fossil fuel use. As a result,
Chinas carbon dioxide intensity improves by 1.7 percent per year on average
and Indias by 2.4 percent per year from 2003 to 2030.
Overall, carbon intensity in the non-OECD countries in 2030 is projected
to be slightly below that in the OECD countries. For the non-OECD region
as a whole, GDP growth averages 5.0 percent per year while emissions grow
by 3.0 percent per year, resulting in a 1.9-percent average annual improvement
in carbon dioxide intensity. For the OECD region, GDP growth averages 2.6
percent per year while emissions grow by 1.1 percent per year, for an average
annual improvement in carbon intensity of 1.5 percent per year.
Rates of improvement in carbon dioxide intensity could vary considerably
in the future, based on technological advances, government policy initiatives,
and economic growth rates. In the IEO2006 reference case, world carbon
dioxide intensity falls from 493 metric tons per million dollars of GDP
in 2003 to 311 metric tons per million dollars in 2030. If world economic
growth expanded to the levels projected in the IEO2006 high economic growth
case, carbon dioxide intensity could fall more quickly, to 298 metric tons
per million dollars in 2030. In contrast, if the world economy expanded
more slowly, as in the low economic growth case, carbon dioxide intensity
could decline to 329 metric tons per million dollars in 2030.
Kyoto Protocol Case
Modeling Approach
Under the Kyoto Protocol, participating Annex I nations are required to
reduce or limit emissions of carbon dioxide and other greenhouse gases
over the first commitment period (January 2008 to December 2012) to a level
that was determined as part of the negotiation process. The year 1990 was
used as the base year for most countries, although some were allowed to
use other years.16 To fulfill their obligations under the treaty, the Annex
I countries must limit their emissions over the 5-year commitment period
to an annual average that is at or below their commitment goals. Because
the SAGE model projections for IEO2006 are in 5-year increments, 2010 is
used as the basis year for achieving commitments in the first period.17 The targets specified under the Protocol for the first commitment period
are assumed to remain in place through 2030, although the current agreement
extends only to 2012.
The SAGE model comprises 16 regions. In the Kyoto Protocol case, the model
regions affected by the treaty are Canada, Japan, OECD Europe, and non-OECD
Europe and Eurasia. Although New Zealand has ratified the Protocol and
intends to honor the terms of the treaty, Australia has not. In SAGE, New
Zealand and Australia are treated as a single entity; and Australias energy
use far exceeds New Zealands. Therefore, projections for Australia/New
Zealand are not included in the results of the Kyoto Protocol case. On
the other hand, Turkey, which is included in OECD Europe, has not agreed
to binding constraints. Because Turkey is not a participant in the Protocol,
its emissions are allowed to grow in the Kyoto Protocol case, and the total
goal for OECD Europe is adjusted accordingly.
For non-OECD Europe and Eurasia, countries other than Russia are split
almost evenly between Kyoto participants and nonparticipants. The participants
(such as Ukraine) have their emissions capped, whereas the nonparticipants
have no emissions caps. Emissions in the participating countries of non-OECD
Europe and Eurasia are expected to remain below the level of their emissions
commitments through 2030; however, demand for credits by Kyoto participants
in other regions are expected to absorb the difference between their projected
emissions and commitments by the end of the projection period.
For the IEO2006 Kyoto Protocol case, assumptions were made about how participating
countries in the affected regions would achieve their reductions, based
whenever possible on official government statements. For instance, the
European Union (EU) has stated that most of its greenhouse gas emissions
reductions must be achieved domestically. The Kyoto Protocol case therefore
assumes that 50 percent of the aggregate emissions reduction for OECD Europe
will be met by domestic reductions, as opposed to the use of international
market mechanisms, such as permit trading. For Japan and Canada, which
are expected to have higher domestic reduction costs than OECD Europe,
both countries are assumed to achieve 25 percent of their total reductions
domestically.
In the Kyoto Protocol case, a country or region is first required to achieve
its domestic reduction goal. After the domestic requirement has been met,
the country or region is free to seek other means of meeting its overall
reduction goalfor example, by trading carbon permits internationally.
In SAGE, the marginal cost (also known as the shadow price) of reducing
carbon dioxide emissions by 1 metric ton in a given country or region is
used to determine the price that the country or region will be willing
to pay for the next additional reduction of 1 metric ton. If the price
of a carbon permit traded internationally exceeds the shadow price of the
domestic reduction, then the country or region will be better off achieving
that reduction domestically. If the price of a purchased permit is less
than the shadow price, then the country or region is expected to choose
the trading option.
In order to find a clearing price for internationally traded emissions
permits, various price levels were tested. It was determined that, at approximately
$42 per metric ton, the supply of credits (2.1 billion metric tons) equaled
the demand over the projection period. At a price higher than $42, countries
could find additional domestic actions to reduce emissions, and some of
the credits would not be purchased. At prices lower than $42, the demand
for credits would be greater than the supply, and the available credits
would be exhausted before the end of the projection period.
SAGE does not explicitly model Clean Development Mechanisms (credits purchased
by Annex I countries of reductions made by non-Annex I countries), because
they can involve factors such as carbon storage in trees that are outside
the current model structure. Also, the generation of additional permits
from non-OECD Europe and Eurasia or elsewhere was not allowed in determining
the market clearing price for permits. Therefore, the $42 price probably
represents an upper bound, assuming that the Kyoto Protocol goals remain
in place until 2030. If the goals were relaxed, the permit price would
be likely to fall; if they were made more stringent, the price would be
likely to rise.
Summary
Table 14. Energy Consumption and Carbon Dioxide Emissions by Fuel in
Participating
Annex I Countries in Two Cases, 2010 and 2030
Printer friendly version 
| Fuel |
Energy Consumption
(Quadrillion Btu) |
Carbon Dioxide Emissions
(Million Metric Tons) |
| 2010 |
2030 |
2010 |
2030 |
| Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
| Oil |
48.4 |
47.6 |
49.7 |
48.8 |
3,090 |
3,039 |
3,174 |
3,116 |
| Natural Gas |
29.3 |
30.5 |
41.0 |
38.9 |
1,548 |
1,610 |
2,167 |
2,054 |
| Coal |
18.5 |
14.2 |
20.2 |
15.5 |
1,719 |
1,285 |
1,874 |
1,370 |
| Nuclear |
13.4 |
13.7 |
12.5 |
16.8 |
|
|
|
|
| Renewables |
13.1 |
13.4 |
14.6 |
16.2 |
|
|
|
|
| Total |
122.7 |
119.4 |
138.0 |
136.2 |
6,357 |
5,935 |
7,216 |
6,541 |
|
The Kyoto Protocol case assumes that energy use will not vary from the
reference case projections for Annex I countries that are not expected
to participate in the treaty (the United States and Australia, for example)
or for countries that are not required to make reductions according to
the terms of the treaty (China and India, for example). As a result, only
the projections for energy use in the Annex I nations committed to participating
are affected in the Kyoto Protocol case. For the participating Annex I
group, total energy demand in the Kyoto Protocol case is about 3 quadrillion
Btu lower than in the reference case in 2010 and 2 quadrillion Btu lower
in 2030, assuming that the Kyoto targets remain constant over the entire
projection period (Table 14). Energy-related carbon dioxide emissions in
the participating nations are 422 million metric tons lower than in the
reference case in 2010 and 675 million metric tons lower in 2030. Total
coal use among the participating Annex I nations in 2030 is about 27 percent
lower than in the reference case in 2030.
Total petroleum consumption in the participating nations is just under
1 quadrillion Btu lower in the Kyoto Protocol case than in the reference
case in 2030, and the associated emissions are 58 million metric tons lower.
In the short term, natural gas is expected to displace coal use among the
participating Annex I nations, because natural gas is cleaner than coal
and has an economic advantage over nuclear and renewable energy sources,
which produce no net carbon dioxide emissions. In the longer term, as the
marginal costs of carbon dioxide reductions increase, natural gas becomes
less attractive than the non-fossil fuels (especially nuclear power), which
begin to displace natural gas by 2030.
The projection for natural gas consumption in the Kyoto Protocol case is
1 quadrillion Btu higher than the reference case projection in 2010 but
2 quadrillion Btu lower in 2030, when non-fossil fuel use is almost 6 quadrillion
Btu higher in the Kyoto Protocol case than in the reference case. Renewables
account for about 1.6 quadrillion Btu of the increase and nuclear power
4.3 quadrillion Btu.
Regional Projections
Canada
In April 2005, Canada unveiled its plan for compliance with the Kyoto Protocol,
based on multiple approaches. The plan includes binding constraints on
the countrys electric power sector and large-scale industrial emitters,
subsidies for wind power, a partnership fund between government and industry,
soil management goals, and programs in consumer awareness and voluntary
reductions by automakers. The Canadian government also has budgeted $3.2
billion to $4.0 billion for purchases of carbon credits, depending on the
permit price [1].
In January 2006, Canada elected Conservatives to 124 of 308 Parliament
seats, versus 103 for the Liberal party, resulting in a change to a Conservative
government. Although the new government may reevaluate and reinterpret
Canadas Kyoto commitment, the Kyoto Protocol case nevertheless assumes
that Canada will remain a participant in the Protocol, and that it will
achieve its goals through a combination of domestic actions and purchases
of emissions credits.
Table 15. Energy Consumption and Carbon Dioxide Emissions by Fuel in Canada
in Two Cases, 2010 and 2030
Printer friendly version 
| Fuel |
Energy Consumption
(Quadrillion Btu) |
Carbon Dioxide Emissions
(Million Metric Tons) |
| 2010 |
2030 |
2010 |
2030 |
| Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
| Oil |
4.8 |
4.8 |
5.1 |
5.1 |
305 |
306 |
327 |
325 |
| Natural Gas |
4.2 |
4.2 |
5.4 |
5.1 |
224 |
222 |
286 |
269 |
| Coal |
1.7 |
1.0 |
2.8 |
1.9 |
154 |
92 |
260 |
146 |
| Nuclear |
1.2 |
1.2 |
1.2 |
1.6 |
|
|
|
|
| Renewables |
3.8 |
4.0 |
4.6 |
5.6 |
|
|
|
|
| Total |
15.6 |
15.2 |
19.2 |
19.3 |
683 |
620 |
873 |
741 |
|
At the permit price of $42 per metric ton, Canada achieves some reductions
domestically below that price in all years of the projection period. Canadas
energy demand in 2010 is 0.4 quadrillion Btu (2.6 percent) lower in the
Kyoto Protocol case than in the reference case, and its energy-related
carbon dioxide emissions in 2010 are 63 million metric tons (9.2 percent)
lower (Table 15).
In 2010, Canadas coal consumption and associated carbon dioxide emissions
both are about 43 percent lower in the Kyoto Protocol case than in the
reference case. In 2030, its coal consumption is 32 percent lower than
in the reference case, but emissions from coal are about 44 percent lower.
The difference results from the introduction of technology that allows
for the consumption of coal with 90 percent of the carbon dioxide sequestered.
Emissions associated with oil consumption are about the same in the two
cases in 2010 and 2030. Emissions from natural gas use are about the same
in 2010 and 6 percent lower in the Kyoto Protocol case in 2030. Canadas
consumption of non-fossil energy (nuclear and renewables) in 2030 is about
24 percent higher in the Kyoto Protocol case than in the reference case.
OECD Europe
The EU has developed its own plan for emissions trading in the 2005 to
2007 period, in preparation for the first Kyoto commitment period in 2008
[2]. The EU Greenhouse Gas Emission Trading Scheme (EU ETS) allocates emissions
to more than 12,000 specific installations across 25 member countries and
requires reductions or European Union Allowances (EUAs) to meet the allocated
goals.
As of publication of this report, more than a years worth of data has
been accumulated since the EU ETS began trading in January 2005 (Figure
70). When trading began, the market price of an EUA for 1 metric ton of
carbon dioxide was around $12,18 with prices fluctuating between $25 and
$35 for most of 2005 and into the early part of 2006. The market did, however,
experience marked volatility with the release of official estimates of
industry emissions by countrywhich initially indicated that in 2005 Europes
major industries emitted 44 million metric tons less carbon dioxide than
permitted. As a result, in late April 2006 the EUA price dropped precipitously,
from about $36 per metric ton to record low of $11 per ton on May 12, 2006,
but then recovered to nearly $20 per metric ton on May 16, one day after
the United Kingdom and Spain were among the countries that reported exceeding
their emissions limits [3].
The next trading period will begin in 2008, coinciding with the Kyoto Protocols
first commitment period. In the 2008-2012 commitment period, the price
of EUAs will depend on the availability of credits from Russia and elsewhere,
on the rules that ultimately apply to European domestic reductions by country,
and on the rules governing European actions in total. As the SAGE model
is currently configured, OECD Europe includes the Czech Republic, Hungary,
Poland, and Slovakia countries that in last years report were part of
the separate Eastern Europe region. This inclusion helps to mitigate
the cost of achieving Kyoto goals for the OECD Europe region. To the extent
that sharing of emissions reduction obligations across OECD Europe is restricted
by provisions included in the Kyoto Protocol, the results of the Kyoto
Protocol case may understate the challenges faced by countries of OECD
Europe that were not included in the old Eastern Europe region.
Table 16. Energy Consumption and Carbon Dioxide Emissions by Fuel
in OECD
Europe in Two Cases, 2010 and 2030
Printer friendly version 
| Fuel |
Energy Consumption
(Quadrillion Btu) |
Carbon Dioxide Emissions
(Million Metric Tons) |
| 2010 |
2030 |
2010 |
2030 |
| Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
| Oil |
32.6 |
32.0 |
33.5 |
32.7 |
2,135 |
2,096 |
2,194 |
2,142 |
| Natural Gas |
21.7 |
23.1 |
31.6 |
30.2 |
1,146 |
1,220 |
1,668 |
1,595 |
| Coal |
12.7 |
9.3 |
13.4 |
10.0 |
1,191 |
872 |
1,257 |
938 |
| Nuclear |
9.5 |
9.7 |
7.5 |
10.7 |
|
|
|
|
| Renewables |
7.9 |
8.1 |
8.5 |
9.2 |
|
|
|
|
| Total |
84.4 |
82.2 |
94.5 |
92.8 |
4,472 |
4,188 |
5,120 |
4,674 |
|
Table 17. Energy Consumption and Carbon Dioxide Emissions by Fuel in Japan
in Two Cases, 2010 and 2030
Printer friendly version 
| Fuel |
Energy Consumption
(Quadrillion Btu) |
Carbon Dioxide Emissions
(Million Metric Tons) |
| 2010 |
2030 |
2010 |
2030 |
| Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
Reference Case |
Kyoto Protocol Case |
| Oil |
11.0 |
10.8 |
11.1 |
11.0 |
648 |
637 |
652 |
649 |
| Natural Gas |
3.4 |
3.2 |
4.0 |
3.6 |
179 |
169 |
211 |
190 |
| Coal |
4.1 |
3.9 |
4.0 |
3.6 |
373 |
321 |
356 |
286 |
| Nuclear |
2.8 |
2.8 |
3.8 |
4.5 |
|
|
|
|
| Renewables |
1.4 |
1.3 |
1.6 |
1.4 |
|
|
|
|
| Total |
22.7 |
22.0 |
24.3 |
24.1 |
1,200 |
1,128 |
1,219 |
1,125 |
|
OECD Europes total projected energy demand is 2.2 quadrillion Btu lower
in the Kyoto Protocol case than in the reference case in 2010 and 1.7 quadrillion
Btu lower in 2030, and its energy-related carbon dioxide emissions are
284 million metric tons lower in 2010 and 446 million metric tons lower
in 2030 (Table 16). Its coal consumption and associated emissions are 27
percent lower in 2010 in the Kyoto Protocol case than in the reference
case and 25 percent lower in 2030. Oil consumption and related emissions
are about 2.4 percent lower in the Kyoto Protocol case in 2030, natural
gas consumption and associated emissions are 4.4 percent lower, and consumption
of non-fossil fuels is 24 percent higher than in the reference case in
2030.
Japan
Japans plan for compliance relies heavily on carbon sinks and Clean Development
Mechanisms for most of the required emissions reductions to meet its Kyoto
goal [4]. In 2010, Japans energy demand is 0.7 quadrillion Btu lower in
the Kyoto Protocol case than in the reference case, and emissions are 72
million metric tons lower (Table 17). Assuming that the countrys goals
for the first commitment period remain in place at the same level through
2030, its total energy demand in 2030 is 0.2 quadrillion Btu lower than
in the reference case, and its energy-related carbon dioxide emissions
are 94 million metric tons lower in 2030.
Japans coal consumption in 2030 is 10 percent lower in the Kyoto Protocol
case than in the reference case, and its oil consumption is 1 percent lower.
Electricity generation from its nuclear power plants in 2030 is almost
0.7 quadrillion Btu higher than in the reference case, and with lower total
energy demand, its natural gas consumption is 10 percent lower in the Kyoto
Protocol case than in the reference case.
Notes and Sources
References |