Climate-friendly Energy Policy: Options for the Near Term

The Link Between Energy and Climate

Because the vast majority of GHG emissions are in the form of CO₂ resulting from fossil fuel combustion, energy policies that reduce fossil fuel use will reduce GHG emissions.⁶ [1]  Fossil fuel use can be reduced by: (1) deploying technologies that increase energy efficiency (e.g., more efficient power plants, cars, and appliances) and (2) employing non-fossil fueled energy sources (e.g., solar, wind, geothermal, biomass⁷ [2], hydroelectric, nuclear energy, or renewables-based hydrogen). CO₂ emissions also can be reduced by shifting from high-carbon to lower-carbon fuels (e.g., shifting from coal to natural gas in the electricity production sector), and by employing carbon capture and sequestration technologies. Conversely, energy policies that increase fossil fuel consumption, discourage or miss opportunities for efficiency improvements, and expand reliance on high-carbon fuels will increase CO₂ emissions and thereby exacerbate climate change.

Given this close relationship between energy use and GHG emissions, near-term energy policy choices have significant future implications for climate change. Climate-friendly energy policies fall into one of three general categories—policies that: 

(1) Reduce GHG emissions now;

(2) Promote technology advancement or infrastructure development that will reduce the costs of achieving GHG emissions reductions in the future; and

(3) Minimize the amount of new capital investment in assets that would be substantially devalued (or “stranded”) if a GHG program were implemented.

NEXT: Energy Policy Context [3]

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