Transition to a Carbon Neutral Economy: Opportunities and Limitations, Current Challenges

Abstract

Climate policy is gradually becoming dominant in the world and is beginning to decisively determine the long-term prospects for the development of the global economy and energy. The problem of curbing the rise in global temperature is global; therefore, reducing greenhouse gas emissions as a result of anthropogenic activities must be carried out in the most acceptable way for the global economy and energy sector. The optimal paths for countries around the world to transition to a carbon-neutral economy will vary significantly since they have different economic structures and endowments of energy resources. The article discusses the following technological directions of decarbonization of the economy: intensification of energy conservation, including production, transformation, transportation, and consumption of energy; changing the fuel structure in favor of low-carbon fuels by replacing coal with natural gas; replacing fossil fuels with carbon-neutral biomass; CO₂ capture in energy and industrial installations with its subsequent transportation and disposal; expanding the use of nuclear energy; and transition to the use of carbon-free renewable energy resources. For each of these areas, the potential for their contribution to achieving carbon neutrality in the economy and the existing restrictions on their implementation are identified. The research was carried out in relation to the economy and energy sector of Russia, which is one of the largest consumers and exporters of fossil organic fuels in the world. It is shown that the transition to a carbon-neutral economy must be complex and carried out through a combination of various technological solutions. The implementation of the “electric world” concept in the country, in which all basic energy needs will be met by using electricity produced on a carbon-free basis, until 2060 is hardly possible for technological and economic reasons, so the use of fossil organic fuels during this period will remain inevitable. At the same time, the issue of organizing the capture and disposal of CO₂ must be resolved.