One Earth Climate Model—Integrated Energy Assessment Model to Develop Industry-Specific 1.5 °C Pathways with High Technical Resolution for the Finance Sector

Abstract

According to the IPCC, a global carbon budget of 400 GtCO2 is required to limit the temperature rise to 1.5 °C with a 67% likelihood by 2050. The finance industry is increasingly committed to ambitious climate targets. In this article, we describe the detailed methodology and energy model architecture of a MATLAB-based integrated energy assessment model for industry-specific 1.5 °C pathways, with a high technical resolution of target parameters as key performance indicators (KPIs). The additionality of OECM 2.0 is the high technical resolution in terms of the level of detail of industry-specific energy demand and supply parameters that can be modeled—a prerequisite to define industry-specific KPIs. We found that a database of industry-sector-specific energy demands and energy intensities, with a consistent methodology, is required to improve the accuracy of calculations in future research. We supplement the technical documentation with the results for a transport scenario.