Analysis of CO2 emissions in the energy sector: challenges and prospects

⚡ Definition and issues in the energy industry

The energy industry covers all activities related to the production, transformation, transport and distribution of energy in all its forms. This industry is a pillar of the world economy, as it meets the growing energy needs of the population and businesses. The companies involved in this sector are :

• Manufacturers of energy transformation equipment;
  Energy plant integrators (project developers, builders, installers)
• Energy producers or operators of power plants; Energy transporters and distributors through the various networks (electricity, gas, oil, heat, cold, steam, as well as distribution infrastructures)
• Support services (raw materials suppliers, construction companies, maintenance, consulting, engineering, waste management, etc.).

It should be noted that the energy sources produced by these companies fall into three main categories

🛢️ Fossil fuels, such as oil, natural gas and coal, are non-renewable energy sources that were formed millions of years ago from organic matter buried in the ground. They are currently the world's main sources of energy, but their use has adverse effects on the environment and climate, due to the greenhouse gas emissions they generate.

🌿Renewable energies, such as solar, wind, hydropower, geothermal and biomass, are clean, inexhaustible sources of energy derived from natural phenomena. They have great potential for meeting the world's energy needs in a sustainable and environmentally-friendly way.

☢️L Nuclear power is an energy source derived from the fission of atomic nuclei. It is used to generate electricity and has the advantage of not emitting greenhouse gases. However, it does present risks to human health and safety, as well as to the environment, due to the radioactive waste it generates.

The world's current and future energy challenges are manifold. First of all, we need to meet the growing demand for energy, particularly in developing countries. Global demand for primary energy has increased by 50% since 1990. By 2035, energy demand is likely to be much higher than it is today. The world will need more energy, and we need to be aware of this.

No industry has a greater impact on the world than the oil and gas industry. It provides us with light, mobility, heat and it makes our lives better - it enables us to travel, study at night, use smartphones and PCs and so on. And it's all part of the energy industry. This makes the primary sector the world's biggest CO2 emitter, with 41% of total emissions from energy combustion. This is where the greatest challenge lies if we are to achieve carbon neutrality by 2050, in accordance with the Paris agreements.

It is therefore imperative to reduce greenhouse gas emissions to combat global warming.

Finally, it is important to guarantee energy security, i.e. toensure a stable and reliable supply of energy for all countries. To meet these challenges, it is essential to develop clean, sustainable energy sources, promote energy efficiency and implement ambitious energy policies.

🌍 Greenhouse gas emissions in the energy sector

There are many sources of GHG emissions in the energy industry, divided between energy production, transport and consumption.

Firstly, power and heat generation plants produce energy by burning fossil fuels such as coal, oil and natural gas, which generates significant GHG emissions.

Secondly, energy transport, which is required to move energy from production sites to consumption sites, is also a major source of GHG emissions. The trucks, trains and pipelines used to transport energy emit GHGs depending on the mode of transport used and the distance covered.

Finally, energy consumption, whether in buildings, transport or industry, is responsible for GHG emissions due to the combustion of fossil fuels. GHG emissions linked to energy consumption depend on the type of energy used and the energy efficiency of equipment and buildings.

The substances emitted and estimated in this sector are as follows:
- Greenhouse gases: CO2, CH4, N2O,
- Fluorinated gases: HFC and SF6 (only for electricity generation),
- Acidification, eutrophication and photochemical pollution: SO2, NOx, NH3, NMVOCs,
- Heavy metals: As, Cd, Cr, Cu, Hg, Ni, Pb, Se, Zn,
- Persistent organic pollutants: PCDD-F, PAH, PCB, HCB,
- Particulate matter: TSP, PM10, PM2.5, PM1.0, BC.

🔎 The causes of rising CO2 emissions

Since the beginning of the industrial era, CO2 emissions have grown exponentially due to the increasing use of fossil fuels for energy production. We have gone from 280 parts per million (ppm) in the atmosphere in 1850 to over 410 ppm in 2021. According to the Intergovernmental Panel on Climate Change (IPCC), CO2 emissions rose by 40% between 1990 and 2019, reaching a record level of 36.7 gigatons in 2019.

The main CO2 emitting countries in the energy sector are China, the United States, India and the European Union. In 2019, China was the world's largest CO2 emitter, with around 27% of global emissions, followed by the USA (11%), India (7%) and the European Union (8%).

Rapid economic growth and urbanization are key factors behind the rise in CO2 emissions in these countries. In China, for example, energy consumption rose by an average of 4.3% a year between 2000 and 2018, due to rapid economic growth and urbanization.

This increase in CO2 emissions is mainly due to the combustion of fossil fuels for the production of electricity and heat, and the consumption of fuels for transport. Rapid urbanization, industrialization and population growth have also contributed to increased energy demand and, consequently, to rising CO2 emissions.

Deforestation and land-use change have also contributed to CO2 emissions. Deforestation is responsible for around 10% of global CO2 emissions, as trees absorb CO2 from the atmosphere, and its destruction releases this gas into the atmosphere.

In short, the increase in CO2 emissions in the energy sector is due to the combustion of fossil fuels for energy production, fuel consumption for transport, urbanization, industrialization, population growth and deforestation.

Policies and actions implemented to reduce CO2 emissions

For many years, the international community has been aware of the importance of reducing greenhouse gas (GHG) emissions to combat climate change. In 2015, 195 countries signed the Paris Agreement, which aims to achieve carbon neutrality by 2050. This agreement calls for national commitments to reduce GHG emissions, as well as international cooperation to finance and implement actions to reduce emissions. This commitment calls for a number of challenges to be met, including thinking about a new energy system, energy supply and preserving competitiveness.

Against this backdrop, France has implemented a number of policies and actions to reduce its energy dependency and combat climate change. First and foremost, the law on energy transition for green growth was adopted in 2015, setting targets such as a 50% reduction in energy consumption by 2050.

To achieve these objectives, France has set up steering and planning tools to ensure the success of the energy transition and the transformation of society. In April 2020, it adopted the multi-annual energy program (PPE), which provides a ten-year vision of French energy policy. The PPE is based on two main pillars: reducing energy consumption and ending the use of fossil fuels. It is linked to various programs, plans and strategies.

Among these tools are the regional climate, air and energy plans (SRCAE and SRADDET), which constitute a reference document for renewable energy development targets and climate change mitigation and adaptation strategy for the 11 metropolitan regions.

At European level, France has committed to collectively achieving climate neutrality by 2050, and to accelerating the reduction of its greenhouse gas emissions by 2030. Measures taken include the creation of a border carbon market adjustment mechanismraising the European target for 2030 from 32% to 40% of final energy consumption from renewable energies, and increasing the current 2030 target for energy efficiency from at least 32.5% to 36% of final energy consumption.

Finally, the war in Ukraine has prompted France to overcome its energy dependence even more rapidly. France currently imports almost all its oil and gas, mainly from Russia. To reduce this dependence, France plans to develop biofuels and biogas, as well as diversify its sources of energy supply.

In short, France has put in place a number of policies and actions to reduce its energy dependency and combat climate change, including reducing energy consumption, ending the use of fossil fuels, developing low-carbon energy sources, and diversifying energy supply sources. These actions are in line with the national low-carbon strategy and multi-year energy programming, as well as European climate and energy objectives.

Future prospects for reducing CO2 emissions in the energy sector

There are several possible scenarios for reducing CO2 emissions in the energy sector. Firstly, increased use of renewable energies such as wind, solar and hydropower can help reduce CO2 emissions. Renewable energies are set to overtake coal as the world's leading source of electricity generation by 2025, according to the International Energy Agency (IEA). They should account for 33% of total electricity production by this date, compared with 27% in 2019.

Another scenario is the improvement of energy efficiency, which can reduce energy demand and thus CO2 emissions. This can be achieved through more efficient technologies in the energy production, transport and consumption sectors. According to the IEA, improved energy efficiency could reduce global CO2 emissions by 12% by 2040.

However, there are major challenges to be overcome if we are to achieve our CO2 reduction targets. First and foremost, investment in renewable energies and energy efficiency must be stepped up. According to the IEA, investment in clean energy should reach $5,000 billion a year by 2030 to meet the Paris Agreement targets.

In addition, the transition to a low-carbon world requires greater international collaboration and coordination. Countries need to work together to develop clean technologies and share best practices. Governments must also put in place incentive policies to encourage players in the energy industry to invest in clean energies.

Finally, the transition to a low-carbon world offers opportunities for players in the energy industry. Companies investing in renewable energies and energy efficiency can benefit from long-term growth and enhanced reputation. Governments can also create jobs in the clean energy and energy efficiency sectors.

To find out more :

• Towards low-carbon agriculture: challenges and opportunities
• Understanding the carbon impact of agri-food: from field to plate