LOW OIL PRICES and THE NEW CLIMATE ECONOMYOpportunity or constraint? презентация

LOW OIL PRICES and THE NEW CLIMATE ECONOMY Opportunity or constraint?

Context: Our energy system is built on fossil fuels

Firstly cheaper oil helps the global economy Although with uneven effects between consumer and producer countries

Volatility hurts the economy

We should not bank on low oil prices

We should not deny fossil fuel subsidies

Recognise that renewable costs are decreasing fast

Co-benefits have high value and are not priced in Particularly relevant in the oil dominated transport sector

We should reflect on signals from long-term investors

So are low oil prices an opportunity to correct course?

Take advantage of low price to reform energy markets

Play it safe and take a long-term view despite low price

Realize that a low carbon transition can help reduce pressure on fossil prices in the future

Concluding remarks Oil (and fossil fuels) still dominate the energy mix and lower prices are a welcome help to the global economy However, we should not allow this to derail our transition towards a better, more sustainable energy system as the long term economic benefits of structural changes to economies and energy systems remain valid In fact we should see this as an opportunity to reform our energy markets True costs of fossil fuels and reduce their subsidies Introduce a price for carbon Target some of the long lasting co-benefits