TODAY’S STUDY: SOLAR V. CLIMATE CHANGE

Seizing the Solar Solution: Combating Climate Change through Accelerated Deployment
December 2010 (the world solar trade associations)

Ultimately, the answers must be sun and wind. Right now, the substantive questions have to do with costs and materials. Those questions have answers and the economists and scientists will work those answers out. Already, wind is economically feasible almost anywhere there is a breeze and sun is feasible when demand is highest.

It is not true that the variability of the sun and the wind are impediments. Already, there are ways to incorporate enormous portions of power through grid management and systems of storage are on the verge of becoming workable and affordable.

It is not true that there is not enough sun and wind; there is only not enough solar and wind and transmission infrastrucutre and that is because those who would impede the transition to the New Energy economy have in the past refused to support the building of the infrastructure on the excuse that there is not enough sun and wind. Ultimately, though, there is no other practical choice but to build it because the supply of sun and wind is virtually infinite.

But there are other questions, real questions, questions that as yet have no calculable answers: How many decades will it take to turn the international community's full attention and effort to the sun and the wind and how much harm will the burners do before they give up burning and making excuses that impede the transition?

Executive Summary

The Solar Energy Industry Fighting Climate Change Now

Finding solutions to address climate change is vital for our future. Fortunately, solar energy can play an important role in reducing greenhouse gas emissions while generating the energy and jobs needed on a global scale. Not only is the sun an unlimited fuel source, but it also provides the cleanest form of energy available at any scale, large or small. Solar has the potential of being a major player in global mitigation efforts if the right policies and incentives are put in place now, and should be considered a part of the climate negotiations.

More than 40 international associations active in the solar and renewable energy sector have joined forces to speak with one voice at COP16. These associations show the capacity of the solar industry to deliver clean energy, create jobs, and decisively contribute to the fight against climate change now.

More Jobs

Deploying solar stimulates economic activity and creates jobs. The data presented in the following pages of the 2010 edition of the “Seizing the Solar Solution: Combating Climate Change through Accelerated Deployment” report shows that the European Union alone is projected to create 1,130,000 jobs by 2020, and the United States projected to create 683,000 jobs by 2020 with each country’s respective solar energy targets.

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More Energy

Solar is ready to significantly reduce the world’s dependence on conventional fuels and satisfy the energy demand of a growing population. Solar is already a major success story in the countries that have adopted effective policies for solar energy that have stimulated the growth of solar energy markets. The combined world solar targets provided by the countries within this report show that the solar electric capacity will reach 700 GW by 2020, while solar thermal capacity will reach 280 GW-th by 2020.

For developed countries, feed-in tariffs have proven to be the most successful mid-term support scheme for solar technology deployment within Europe and Japan, while tax incentives have been the primary policy driver in the United States. Solar technology is rapidly reaching grid parity with fossil fuels in an increasing number of developed countries. Similar performance based incentives, such as innovative and well-designed feed-in tariffs supported by public and/or private funding, are currently being designed for a number of developing countries. These support mechanisms are being shaped in the context of national infrastructure development, energy regulatory frameworks, and low carbon development strategies in each country.

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Employing solar energy allows developing nations to leapfrog past traditional energy sources to clean, sustainable technology and reach underserved populations in rural locales. The International Energy Agency estimates that roughly 85% of the people without electricity live in rural areas in developing countries. Solar energy is one of the most suitable, affordable and environmentally friendly solutions to provide electricity to rural areas. Just as cell phones can help bring the advantages of 21st century commerce and connectivity to regions which lack a traditional telecommunications infrastructure, solar technology is uniquely capable of bringing renewable thermal energy and electricity to parts of the developing world. Solar is thereby an active catalyst for sustainable development by providing basic services such as lighting, drinking water, healthcare and education, which are crucial to meet the Millennium Development Goals aimed at poverty alleviation.

Whether a nation be considered a developed or developing country, policies aimed at promoting deployment of solar energy should be a central part to any low-emissions development strategies within the country.

Solar PV potential in Central Asia (click to enlarge)

Less CO2

Solar technology is already making a significant contribution to the reduction of greenhouse gases. Deploying solar energy presents a concrete measure our nations’ leaders can take to reduce carbon emissions now. The solar industry stresses the crucial importance of internationally agreed mid-term and long-term emission reduction targets for all developed countries in order to guide investment decisions, provide investment security, and create green investment patterns, as well as the inclusion of solar policies in Nationally Appropriate Mitigation Actions for developing countries. In addition, the solar industry believes that a price on carbon is essential to reflect the true cost of fossil fuels.

Solar energy technologies are available now and ready to deliver energy with environmental and economic benefits. As previously mentioned, with the right policies, the combined solar targets provided by the countries in this report show that solar electric capacity by 2020 could reach 700GW, with solar thermal capacity at 280GWth by 2020. This is equivalent to a world total reduction in carbon pollution by 570 Mt, which is equivalent to eliminating the carbon emissions from the UK, Canada, or South Korea, or taking 110 million cars off the road, or shutting down 100 coal plants.

The solar energy industry is fighting climate change now. Solar energy means more jobs, more energy, and less CO2.

Solar PV potential in Africa and the Middle East (click to enlarge)

The Road to Cancun

From the establishment of the United Nations Framework Convention on Climate Change (UNFCCC) in 1992 and its entering into force in 1994, the ultimate objective of the 192 parties who ratified the convention treaty has been to stabilize greenhouse gas concentrations in the atmosphere at a level that would “prevent dangerous anthropogenic interference with the climate system.”1 Since this time, the UNFCCC has made progress on achieving this goal with the Kyoto Protocol, the Montreal Action Plan, the Bali Action Plan, and the noted Copenhagen Accord.

The Kyoto Protocol, an internationally binding instrument, commits its signatories to reduce their greenhouse gas emissions by 5.2% from a 1990 level in the target period of 2008-2012. The Kyoto Protocol also provided a number of mechanisms to the Parties to meet their quantified emission limitation and reduction commitments. Therefore, some countries have adopted a series of reduction targets in order to meet their obligations under the Protocol. In the European Union (EU), for example, the commitment is to an overall reduction of 8%. To help get there, the EU has agreed to increase it’s proportion of renewable energy from 6% to 12 % by 2010. The Montreal Action Plan established in 2005 agreed to “extend the life of the Kyoto Protocol beyond its 2012 expiration date and negotiate deeper cuts in greenhouse-gas emissions”. Climate negotiations received a ajor boost in Bali at COP-13, which established two new subsidiary bodies under the Convention for dealing with future negotiations, and produced the Bali Action Plan. The Bali Action Plan identified five central pillars for an enhanced international response to climate change: shared vision for long-term cooperative action, enhanced international action on climate change in developed and developing countries, enhanced action on adaptation, technology transfer and finance.

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COP-15 in Copenhagen produced the Copenhagen Accord, a non-binding letter of political intent taken note of by the Conference of Parties. The accord contains a number of important provisions on mid-term targets for developed countries, mitigation actions by developing countries, and financial and technological support for developing countries to carry out actions to respond to climate change. The international community has already taken steps to implement the provisions of the Copenhagen Accord; the solar industries request that governments maintain this momentum and bring the non-binding pledges and financing under the Copenhagen Accord into a legally binding form.

Global Benefits of Solar Energy

While delegates struggle to complete the urgent task of agreeing on all the terms and policies in a larger agreement, either a successor to the Kyoto Protocol or a new treaty, solar technology is already making a significant contribution to the reduction of greenhouse gases. Solar has the potential of being a major player in global mitigation efforts if the right policies and incentives are put in place now. Solar is already a major success story in the countries that have adopted effective policies for solar energy. The technology is rapidly reaching grid parity with fossil fuels in an increasing number of countries. Solar energy also has a virtually unlimited potential for energy production due to the abundant availability of sunlight. The promotion of solar energy is a task that should be considered a part of the climate negotiations.

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Mitigation

Mitigation can be understood as the adoption of policies that reduce emissions of greenhouse gases. The solar industry would like to stress the crucial importance of internationally agreed mid-term and long-term emission reduction targets for all developed countries in order to guide investment decisions, provide investment security, and create green investment patterns. The solar industry is ready to be a central part of the green transformation of the energy sector in all countries.

The solar industry believes that renewable energy targets on a domestic level form an essential complement to economy wide targets and are crucial in attracting the investment necessary for decarbonizing energy infrastructure. Experience shows that a renewable energy target, when combined with the right support schemes, can generate multi-billion dollar investments into renewable energies and lead to the rapid reduction of greenhouse gas emissions.

In addition, the solar industry believes that a price on carbon is essential in order to ensure a level playing field and factor externalities into the costs of conventional fuels. Possible measures include the establishment of a carbon tax, cap and trade systems, and the encouragement of the Kyoto mechanisms. The global carbon market is an important source of new and innovative financing that will be needed in order to meet the Copenhagen funding commitments and generate further investment into renewable energies on a national level. The solar industries also welcome developments in other international fora, including the G20, that have established an international consensus on removing the incentives associated with fossil fuel subsidies.

Taking into account the importance of “common but differentiated responsibilities” in terms of greenhouse gas emissions targets for developed and developing countries, the Bali Action Plan called for Nationally Appropriate Mitigation Actions (NAMAs) by developing country Parties. The solar industry would like to highlight the fact that a renewable energy target can qualify as a nationally appropriate mitigation action a policy that can promote the deployment of solar technology. Not only can solar play a central role in the achievement of the NAMAs envisioned by Parties, but solar fits into the arena of sustainable development as well.

The solar industry supports that the targets and NAMAs be measurable, reportable, and verifiable, as included within the Bali Action Plan, to give investors the confidence they need, and to ensure the full accountability of the nationally appropriate actions, and to ensure that greenhouse gas emission reductions are achieved worldwide.

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Financial Resources and Investment

The solar industry welcomes the funding commitments provided by developed countries during the COP-15. Private sector financial resources can significantly widen the reach of public resources and thereby greatly accelerate the green transformation of the world economy. An international financing framework is needed that will encourage technology transfer and the investment in solar projects around the globe. This financing framework must attract both public and private funds, must be sufficient and affordable, and should provide direct support for every type of solar energy. Article 8 of the Copenhagen Accord established the Copenhagen Green Climate Fund, which would provide adequate funding and improved access to the funds for developing countries. This financing framework should provide direct support for every type of solar energy. Such funding would provide countries with the means to implement renewable energy programs and solar technologies, providing the basis for a sustainable, low-carbon energy future. With fast-track financing, solar projects could be jump-started and make contributions to emissions reduction objectives in the near term. The solar industry encourages the establishment of such a Green Climate Fund.

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Technology Transfer

The policies surrounding the technology transfer to developing countries have become increasingly imperative to reaching any global climate deal, as technology transfer will help achieve a sustainable energy structure. The solar industry welcomes the Parties’ consideration of various additional institutional arrangements in order to accelerate technology development and deployment. The Bali Action Plan calls for “enhanced action on technology development and transfer to support action on mitigation and adaptation, including...ways to accelerate deployment, diffusion, and transfer of affordable environmentally sound technologies; cooperation on research and development of current, new and innovative technology, including win-win solutions”. Solar energy is one of these win-win solutions, and knowledge of solar energy technologies could be shared with developing countries, provided Intellectual Property rights are followed. The UNFCCC should build on the work of the Major Economies Forum Technology Action Plan on Solar Technology and in particular the Global Atlas for Solar as announced by the Multilateral Solar and Wind Working Group at the July 2010 Clean Energy Ministerial. The aim of the Global Atlas for Solar is to combine and expand existing databases on solar potentials and socio-economic framework conditions around the globe into one open web-portal from which user tailored data can be derived and accessed. It can serve as a useful example for the sharing of knowledge and capacity building at the international level.

Policies that enhance tech transfer must also encourage capacity building. Again, the work of the Multilateral Solar and Wind Working Group on a “Long Term Strategy on Joint Capacity Building” should be taken into account and incorporated into any policies. Private sector input should be welcomed as well.

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Adaptation

Adaptation is the flipside of mitigation measures. The solar industry welcomes the fact that the international community has recognized the scientific imperative of keeping global temperature rise below 2 degrees Celsius; however, even with this temperature rise limitation and action on emission targets, a certain degree of adaptation will still be unavoidable. The potential of solar energy to contribute to climate change adaptation should not be underestimated. Advanced and decentralized energy grids are less vulnerable to extreme events and can provide reliable electricity even in periods of crisis. In addition, solar energy is particularly well-suited for bringing communities back to the grid after extreme events have occurred; solar energy can also provide electricity to off grid locations. Solar provides a double dividend that addresses energy poverty while also contributing to the reduction of greenhouse gas emissions.

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Country-Specific

On a country level, there are numerous policies that can aid in the deployment of solar technology. These policies should be a central part to any low-emissions development strategies of a country. For example, fair access to the energy grid in each country should be a mandatory policy. This would encourage the deployment of large-scale as well as distributed generation solar technologies. Furthermore, policies that promote transmission and distribution capacity for solar technologies are also needed. Price based mechanisms, such as feed-in tariffs, tax and investment incentives, or quantity based mechanisms, such as renewable energy certificates or tender schemes, have proven to be successful in deployment of solar energy in many countries, and should be encouraged. Feed-in tariffs have proven to be the most successful mid-term support scheme for solar technology deployment within Europe and Japan. However, it is well understood that performance based mechanisms must be put in the context of national infrastructure development, energy regulatory frameworks, and low carbon development strategies of any given country.

With the implementation of the above named policies, it will be possible to seize the solar solution to climate change. Solar technologies are ready now. Solar energy means more jobs, more energy, and less CO2.