IEA urges $45 trln "energy revolution" to halve CO2

Scientists say that the world must brake and reverse annual increases in greenhouse gas emissions to avoid catastrophic climate change including rising seas and more extreme weather.

But governments are at odds over how to split the costs of funding cleaner energy technology, particularly in the developing world. The IEA said the $45 trillion is equal to 1.1 percent of average annual global gross domestic product over the period.

"Carbon emissions must be cut. Costs of about 1 percent of GDP are not outrageous, so this target is realistic," said Go Hibino, a senior manager at Mizuho Information & Research Institute.

About 190 nations are racing to craft a framework by the end of 2009 to succeed the Kyoto Protocol, which binds 37 advanced nations to cut emissions by an average of 5 percent below 1990 levels by 2008-12.

OIL DEMAND CURBS

The report, which comes just ahead of a G8 energy ministers meeting this weekend in Japan, highlighted the security benefits of cracking down on carbon.

"Oil demand by 2050 would be 27 percent below the level of 2005. Yet massive investments in remaining reserves will be needed to make up for the shortfall as low-reserve provinces are exhausted," Tanaka said.

A massive research and development effort will be needed in the next 15 years costing about $10 billion to $100 billion per year to develop technology to cut CO2 emissions, the IEA said in the Energy Technology Perspectives report.

It said the power sector would need to be "decarbonized" by installing CO2 capture and storage (CCS) at 35 coal- and 20 gas-fired power plants a year from 2010 to 2050 at a cost of $1.5 billion each. The sector would also need to build 32 new nuclear plants and install 17,500 wind turbines a year.