A U.S. consulting firm has released a study that says renewable power and biofuels could supply up to 16 percent of global electric and transport needs, but that government policies such as mandates and subsidies will need to be key drivers.

The Cambridge Energy Research Associates (CERA), the publisher of the report, is an influential advisor to large energy companies (the Wall Street Journal says CERA "is as close as it gets to a proxy for conventional wisdom within big oil").

The report, Crossing the Divide: The Future of Clean Energy, is an analysis of the market for biofuels, renewables like wind and solar energy, carbon capture and storage, and conventional "clean" technologies like nuclear and hydropower. It also advises governments on where the market is likely to grow, and what policies are going to have the greatest impacts.

The study says "putting a price on CO2 emissions, setting mandates and providing subsidies all work to kick-start clean energy technologies by meeting the economic competitiveness and cost advantages of conventional technologies. The challenge in the years ahead is to provide subsidies in a way that ensures that these technologies get off the drawing board and are able to wean themselves from support - allowing for a phase-out rather than an increase in subsidies - as they become commercially viable on their own."

More information about Crossing the Divide: The Future of Clean Energy, is available from the CERA website at: http://www.cera.com/aspx/cda/public1/home/home.aspx