|France in 2000 as an example. Transportation has a double problem: the largest amount of CO2 emissions, and almost entirely from petroleum. Click to enlarge.|
A report on sustainable development prepared by two French Senators for the French Office Parlementaire D’Evaluation des Choix Scientifiques et Technologiques (OPECST) calls for the EU to lead a global energy transition to avoid the worst impact of climate change and an oil shock they predict occurring by 2020 at the latest.
The report by Senators Pierre Laffitte and Claude Saunier calls for financing the transition by taxes that would be dedicated to promoting renewable energies, buildings insulation, biofuels, hybrids and electric cars and other low fossil-carbon technologies, particularly in the transport sector.
The Senators assert in the report that:
There is a real risk of a level of climate change for which the physical and financial consequences are very underestimated. The economic cost of climate change could increase to 2.5 to 3% of world GDP, they conclude.
The combination of an insufficient supply of oil and ongoing demand from the US, China and India will create by 2020 an oil shock of great reach that will push the price of oil to more than $150/barrel. That shock will take another 2% out of global GDP.
The senators argue that while the transition away from fossil fuels is an urgent requirement, it also offers opportunities for developing new industries. They also assert that the technologies required either exist or are close to being market-ready.
They estimate that their financing schemes could raise about €4-5 billion (US$5.1-6.4 billion) to be applied to the development and deployment of such solutions.