Integrating Climate into our Strategy - 13 Three Areas of Focus In the 2°C scenario, the IEA outlines three areas of focus to alter the energy-related CO2 emissions trajectory. in Bus ess as u sua l Approx. 1/3 -> More renewable energies Approx. 1/3 -> More energy efficiency 2°C sce Approx. 1/3 -> Optimized energy mix nario (switch from coal to gas, development of CCUS, nuclear etc.) Today Creating an Energy Mix That Meets the 2°C Challenge The first challenge is to reduce the share of coal. Under the 2°C scenario, it will shrink from 28% to 18% between 2015 and 2035. Oil and gas will account for 46% of the “target” 2°C mix for 2035, versus 52% today. All fossil fuels are not equal. For an equivalent energy content, gas emits around half as much CO2 as coal Mboe/d 2015 when used for power generation. Consequently, the volume of gas is expected to grow - by around 15% over the period - to reach a share of 22% of the 2035 energy mix, overtaking coal. The share of oil will begin to decline gradually, to 24% in 2035 from 31% today, because it will be reserved primarily for transportation and petrochemicals. The share of renewables will soar over the same period, to 22% from 8%, excluding traditional biomass. This growth will be led by a surge in solar and wind power, which could both help to replace coal despite the disadvantage of their variability, along with “modern” biomass. Energy Mix 2035 400 350 300 250 200 1% 5%2% 5% 5% 4% 7% 3% 4% 7% 23% 21% 31% 27% 100 0 8% 10% 4% 4% 10% 22% 150 50 Solar, wind and other renewables 2015e 25% 3.5 °C Hydropower Traditional biomass Nuclear Gas 24% 29% Modern biomass 18% Oil Coal 2 °C Source: IEA – World Energy Outlook 2015