How do countries decarbonise power to meet global climate targets?

How are different countries decarbonising their power sectors to meet climate targets? 

With the Paris Agreement targets fast approaching, countries around the world are transforming their electricity systems to meet mandated climate targets. Key strategies include renewable energy adoption, phasing out coal, carbon pricing, and innovations in grid technologies. But why is decarbonising the power sector crucial for climate targets? 

Reducing electricity consumption is key in high-emission actions such as building operations, manufacturing, and residential applications. But decarbonising electricity is also crucial in the case of broader energy systems, for example, transport electrification.  

Businesses must be prepared for the impending carbon reduction targets and begin to put the wheels in motion to reduce their own carbon emissions, with early decarbonisation taking priority for net zero goals.  

European leaders in renewable energy and carbon neutrality 

Germany has long been touted as one of the front runners in Europe for carbon reduction efforts. Germany’s Energiewende is a policy driven by energy transition and aims to shift reliance from fossil fuels to renewable sources, with climate neutrality by 2025. The other element of Energiewende is to phase out nuclear reliance to create truly green German energy plan.  

Denmark is aiming specifically for wind energy dominance, with a focus on green grid innovations. Notable investment has taken place in onshore and offshore wind farms and in making the national grid fit for purpose. 

Unlike Germany’s plans to phase the technology out, France continues to rely heavily on nuclear power for low-carbon electricity, with around 70% of energy consumed from renewable sources.  

Asia-Pacific’s mixed path: balancing growth and decarbonisation 

Heavy manufacturing makes up a significant portion of their exports, which isn’t conducive to a fully renewable future due to renewables' current inability to power heavy industry over a long period. China still relies heavily on coal for energy. However, it’s still making significant investments in renewable energy, with solar and wind being big interest areas for the nation. 

India focuses mostly on photovoltaics, with a solar push and energy access priorities. It will aim to increase solar capacity significantly, with an aim of 280GW by 2030, which it hopes will help address the issues of energy poverty in the region.  

Despite its chequered past with nuclear power, nuclear is still a key low-carbon energy source for Japan, with 20% of all energy slated to power the country by 2040. It’s also been investing in renewables, such as wind and solar. South Korea is focusing on the latter technology as part of its energy reform with a target of 25% renewable rollout by 2034, as it aims to phase out nuclear reliance completely.  

North America’s evolving power sector 

Despite being one of the world’s superpowers, the USA’s decarbonisation policy has been inconsistent on a federal basis, partially due to changing presidential focuses—for example, the withdrawal from the Paris Agreement. To try and combat this lack of long-term commitment, decarbonisation projects have been rolled out on a state-wide basis, with California leading the charge. California has invested in renewable development as well as battery storage systems, with Texas easing its reliance on fossil fuels in favour of wind energy.  

Canada, by contrast, has renewable energy at the heart of its energy policies and is a huge exporter of renewable energy. The USA is one of its key renewable energy importers. The USA relies heavily on Canada’s hydropower activity, with a significant amount of exported Canadian green energy going to the USA.  

Mexico is undergoing a change in regard to its renewable output. Initially rolling out pouches that prioritised commercial investment in green solutions, it is switching to state-run renewable campaigns, which has affected private investment in renewables.  

Emerging economies and energy justice 

While some of the key superpowers have an advantage in investing in the energy transition, there is a key role that international finance and climate aid will play in supporting the energy transition for developing nations. This might include support for reskilling employees, developing climate-first agricultural pathways and diverting finance to help alleviate these countries' reliance on fossil fuels. Decarbonisation pathways in Africa and Latin America focus on issues wider than just powering homes and businesses, with sustainable transport featuring high on the agenda. Balancing energy equity with climate action is crucial, as many of the areas that experience the most severe effects of climate change are in developing nations.  

Technologies and policies enabling global power sector decarbonisation 

1. Grid modernisation and storage solutions 

Many national grids are still optimised to integrate low-carbon options such as renewable energy. This is because they have been created with fossil fuels in mind and are often interfacing with and interlinking legacy equipment. The issue with renewable energy is that it is a sometimes unpredictable source of energy, and fossil-fuel-first, legacy grids cannot cope with the intermittency of these sources. One solution is to integrate storage solutions, such as batteries, which allow intermittent energy sources to be banked during high levels of renewable energy production and utilised during low production levels, alleviating grid stress.   

2. Carbon pricing and emissions trading schemes 

When market-based instruments are introduced into the energy market, carbon markets begin to be created. Prices are applied to carbon emissions and traded via trading platforms, meaning that trading units of offset carbon emissions can mitigate carbon emissions.  

3. Green hydrogen, nuclear, and next-gen renewables 

Next generation green energy solutions could replace fossil fuels in various sectors, reducing carbon emissions across industries. Green hydrogen, for example, can be converted into energy via hydrogen fuel cells and be employed as a fuel source. Nuclear energy may be a greener application for heavy industries that require higher levels of stable energy input than fossil fuels.  

Decarbonising power is vital for climate action. Global strategies vary, but innovation, policy, and equity are key to shaping a sustainable energy future.