Why global decarbonisation requires cross-sector understanding

Abstract

The global private sector is exploring and developing decarbonisation pathways for each of the energy sectors – transportation and its many sub-sectors, power, and industry. Each of these sectors and sub-sectors interacts with the others, and these interactions should be understood and considered at a governance level. As an example, rapid decarbonisation of the maritime sector will impact the refining sector, which in turn will have implications on the availability and cost of fuels for the remaining sectors. This paper examines how decarbonisation of one sector affects other sectors, and how our continued medium-term reliance on oil, in particular, introduces complex constraints. Renewable energy, fossil fuels, low-carbon hydrogen and synthetic fuels will need to be balanced and coordinated in such a way that decarbonisation pathway decisions are not made independently by isolated sectors that will hinder or even set back the decarbonisation efforts and options of other sectors. This paper also looks at the supply chain realities of decarbonising certain transportation sectors.