Abstract:

The report provides a detailed pathway to link decarbonization activities in these sectors and assesses its costs and benefits. It concludes that a coupled transition of the power and transport sectors toward full decarbonization by mid-century would result in substantial economic and environmental benefits to the region. The report argues that the value of benefits resulting from the coupled decarbonization of both sectors far outweigh its costs. The benefits considered include improved air quality in urban areas, far greater energy efficiency of the economy, reduced costs of electricity generation and transport for passengers and cargo, generate millions of jobs and catalyze economic activity and enterprise generation. This transition represents an important opportunity to raise the level of ambition of Nationally Determined Contributions (NDCs) and long-term strategies with many no-regret1 options to meet international climate commitments, established under the Paris Agreement and to support the achievement of Sustainable Development Goals.