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Process-based integrated assessment models (IAMs) project long-term transformation pathways in energy and land-use systems under what-if assumptions. IAM evaluation is necessary to improve the models’ usefulness as scientific tools applicable in the complex and contested domain of climate change mitigation. We contribute the first comprehensive synthesis of process-based IAM evaluation research, drawing on a wide range of examples across six different evaluation methods including historical simulations, stylised facts, and model diagnostics. For each evaluation method, we identify progress and milestones to date, and draw out lessons learnt as well as challenges remaining. We find that each evaluation method has distinctive strengths, as well as constraints on its application. We use these insights to propose a systematic evaluation framework combining multiple methods to establish the appropriateness, interpretability, credibility, and relevance of process-based IAMs as useful scientific tools for informing climate policy. We also set out a programme of evaluation research to be mainstreamed both within and outside the IAM community.
Climate science provides strong evidence of the necessity of limiting global warming to 1.5 °C, in line with the Paris Climate Agreement. The IPCC 1.5 °C special report (SR1.5) presents 414 emissions scenarios modelled for the report, of which around 50 are classified as '1.5 °C scenarios', with no or low temperature overshoot. These emission scenarios differ in their reliance on individual mitigation levers, including reduction of global energy demand, decarbonisation of energy production, development of land-management systems, and the pace and scale of deploying carbon dioxide removal (CDR) technologies. The reliance of 1.5 °C scenarios on these levers needs to be critically assessed in light of the potentials of the relevant technologies and roll-out plans. We use a set of five parameters to bundle and characterise the mitigation levers employed in the SR1.5 1.5 °C scenarios. For each of these levers, we draw on the literature to define 'medium' and 'high' upper bounds that delineate between their 'reasonable', 'challenging' and 'speculative' use by mid century. We do not find any 1.5 °C scenarios that stay within all medium upper bounds on the five mitigation levers. Scenarios most frequently 'over use' CDR with geological storage as a mitigation lever, whilst reductions of energy demand and carbon intensity of energy production are 'over used' less frequently. If we allow mitigation levers to be employed up to our high upper bounds, we are left with 22 of the SR1.5 1.5 °C scenarios with no or low overshoot. The scenarios that fulfil these criteria are characterised by greater coverage of the available mitigation levers than those scenarios that exceed at least one of the high upper bounds. When excluding the two scenarios that exceed the SR1.5 carbon budget for limiting global warming to 1.5 °C, this subset of 1.5 °C scenarios shows a range of 15–22 Gt CO2 (16–22 Gt CO2 interquartile range) for emissions in 2030. For the year of reaching net zero CO2 emissions the range is 2039–2061 (2049–2057 interquartile range).
Closing the emissions gap between Nationally Determined Contributions (NDCs) and the global emissions levels needed to achieve the Paris Agreement’s climate goals will require a comprehensive package of policy measures. National and sectoral policies can help fill the gap, but success stories in one country cannot be automatically replicated in other countries. They need to be adapted to the local context. Here, we develop a new Bridge scenario based on nationally relevant, short-term measures informed by interactions with country experts. These good practice policies are rolled out globally between now and 2030 and combined with carbon pricing thereafter. We implement this scenario with an ensemble of global integrated assessment models. We show that the Bridge scenario closes two-thirds of the emissions gap between NDC and 2 °C scenarios by 2030 and enables a pathway in line with the 2 °C goal when combined with the necessary long-term changes, i.e. more comprehensive pricing measures after 2030. The Bridge scenario leads to a scale-up of renewable energy (reaching 52%–88% of global electricity supply by 2050), electrification of end-uses, efficiency improvements in energy demand sectors, and enhanced afforestation and reforestation. Our analysis suggests that early action via good-practice policies is less costly than a delay in global climate cooperation.
The large majority of climate change mitigation scenarios that hold warming below 2 °C show high deployment of carbon dioxide removal (CDR), resulting in a peak-and-decline behavior in global temperature. This is driven by the assumption of an exponentially increasing carbon price trajectory which is perceived to be economically optimal for meeting a carbon budget. However, this optimality relies on the assumption that a finite carbon budget associated with a temperature target is filled up steadily over time. The availability of net carbon removals invalidates this assumption and therefore a different carbon price trajectory should be chosen. We show how the optimal carbon price path for remaining well below 2 °C limits CDR demand and analyze requirements for constructing alternatives, which may be easier to implement in reality. We show that warming can be held at well below 2 °C at much lower long-term economic effort and lower CDR deployment and therefore lower risks if carbon prices are high enough in the beginning to ensure target compliance, but increase at a lower rate after carbon neutrality has been reached.
Ambitious climate policies, as well as economic development, education, technological progress and less resource-intensive lifestyles, are crucial elements for progress towards the UN Sustainable Development Goals (SDGs). However, using an integrated modelling framework covering 56 indicators or proxies across all 17 SDGs, we show that they are insufficient to reach the targets. An additional sustainable development package, including international climate finance, progressive redistribution of carbon pricing revenues, sufficient and healthy nutrition and improved access to modern energy, enables a more comprehensive sustainable development pathway. We quantify climate and SDG outcomes, showing that these interventions substantially boost progress towards many aspects of the UN Agenda 2030 and simultaneously facilitate reaching ambitious climate targets. Nonetheless, several important gaps remain; for example, with respect to the eradication of extreme poverty (180 million people remaining in 2030). These gaps can be closed by 2050 for many SDGs while also respecting the 1.5 °C target and several other planetary boundaries.
Climate change threatens to undermine efforts to eradicate extreme poverty. However, climate policies could impose a financial burden on the global poor through increased energy and food prices. Here, we project poverty rates until 2050 and assess how they are influenced by mitigation policies consistent with the 1.5 degrees C target. A continuation of historical trends will leave 350 million people globally in extreme poverty by 2030. Without progressive redistribution, climate policies would push an additional 50 million people into poverty. However, redistributing the national carbon pricing revenues domestically as an equal-per-capita climate dividend compensates this policy side effect, even leading to a small net reduction of the global poverty headcount (-6 million). An additional international climate finance scheme enables a substantial poverty reduction globally and also in Sub-Saharan Africa. Combining national redistribution with international climate finance thus provides an important entry point to climate policy in developing countries. Ambitious climate policies can negatively impact the global poor by affecting income, food and energy prices. Here, the authors quantify this effect, and show that it can be compensated by national redistribution of the carbon pricing revenues in combination with international climate finance.
Pathways toward limiting global warming to well below 2 ∘C, as used by the IPCC in the Fifth Assessment Report, do not consider the climate impacts already occurring below 2 ∘C. Here we show that accounting for such damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the persistence time of damages. The Integrated Assessment Model we use includes the climate system and mitigation technology detail required to derive near-term policies. We find an optimal carbon price of $115 per tonne of CO2 in 2030. The long-term persistence of damages, while highly uncertain, is a main driver of the near-term carbon price. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions by two thirds, compared to pathways considering the 2 ∘C limit only.
Global emissions scenarios play a critical role in the assessment of strategies to mitigate climate change. The current scenarios, however, are criticized because they feature strategies with pronounced overshoot of the global temperature goal, requiring a long-term repair phase to draw temperatures down again through net-negative emissions. Some impacts might not be reversible. Hence, we explore a new set of net-zero CO2 emissions scenarios with limited overshoot. We show that upfront investments are needed in the near term for limiting temperature overshoot but that these would bring long-term economic gains. Our study further identifies alternative configurations of net-zero CO2 emissions systems and the roles of different sectors and regions for balancing sources and sinks. Even without net-negative emissions, CO2 removal is important for accelerating near-term reductions and for providing an anthropogenic sink that can offset the residual emissions in sectors that are hard to abate.
Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics.
Controlling bioenergy-induced land-use-change emissions is key to exploiting bioenergy for climate change mitigation. However, the effect of different land-use and energy sector policies on specific bioenergy emissions has not been studied so far. Using the global integrated assessment model REMIND-MAgPIE, we derive a biofuel emission factor (EF) for different policy frameworks. We find that a uniform price on emissions from both sectors keeps biofuel emissions at 12 kg CO2 GJ−1. However, without land-use regulation, the EF increases substantially (64 kg CO2 GJ−1 over 80 years, 92 kg CO2 GJ−1 over 30 years). We also find that comprehensive coverage (>90%) of carbon-rich land areas worldwide is key to containing land-use emissions. Pricing emissions indirectly on the level of bioenergy consumption reduces total emissions by cutting bioenergy demand but fails to reduce the average EF. In the absence of comprehensive and timely land-use regulation, bioenergy thus may contribute less to climate change mitigation than assumed previously.