One research investigates the relationship between climate change and global energy dynamics, considering both demand and supply aspects. In terms of energy demand, the study introduces a novel methodology to disentangle the impact of weather shocks and long-term climate variations on electricity and fossil fuel demand in 134 countries from 1970 to 2019. On the energy supply side, the study explores the potential consequences of extreme weather events on power markets, emphasizing potential volatility in electricity prices and increased costs for managing the grid during high-demand periods. The findings show that consumers respond to average weather conditions over many years, influencing new technology adoption and adjustments in energy-efficient appliances. It also addresses the implications for power generation, emphasizing the need for flexible technologies during extreme weather conditions.
A second research considers the pivotal role of Marginal Emission Factors (MEFs) in evaluating the relationship between energy generation and the reduction of greenhouse gas emissions. While the Average Emission Factor (AEF) is a common metric, the study argues for the more accurate assessment provided by MEFs, representing the amount of greenhouse gases emitted per unit of economic or energy activity. The need to consider MEFs at a regional level is emphasized, particularly in segmented electricity markets such as Italy’s, comprising zones that differ in their power supply arrangement. The research explores the methodologies for assessing MEFs, distinguishing between inter-day and intra-day approaches. MEFs are crucial for policymaking: they inform emissions standards, guide efforts to decarbonize the electricity grid and prioritize investments in grid infrastructure. In essence, estimating MEFs is shown to be a critical step in crafting effective energy and environmental policies.
A third study explores new technologies supporting the gradual decarbonization of challenging industrial sectors. Focusing on fuel and industry, the study also evaluates the implications for the financial sector, considering both risks and opportunities. The analysis distinguishes between three main approaches for decarbonizing heavy industries: material modification, process innovation, and emission management. The study emphasizes the urgency of addressing hard-to-decarbonize heavy industries and highlights the importance of building European industrial strategies and resilient raw material supply chains to align with decarbonization paths.
