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Transcript of 1 A Technology-Driven Framework for Energy and Climate Policies APEC Energy Trade and Investment...
1
A Technology-Driven Framework for Energy and Climate Policies
APEC Energy Trade and Investment Task Force
Brunei, November 22, 2010
Robert Pritchard
Energy Alliance of Australia
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The Swirling Energy / Climate Debate: How We Now See It
Energy security is economy-specific but climate applies equally to all
In the absence of a global climate framework, many economies are aligning domestic energy / climate policies
Next phase: global policy alignment is likely to be very gradual
3 Phasing out all fossil fuels
Use only renewables and nuclear energy
Mitigate all avoidable GHG emissions
Capture & store all unavoidable emissions
The Swirling Debate
EDGING TOWARDS GLOBAL ALIGNMENT
Achieving “sustainability” as fast as possible
Increase in cross-border energy trade and investment
Increase in energy efficiency / Decrease in energy wastage Increase in renewable and nuclear energy generation with natural gas as balancing fuel
Identification and global deployment of all affordable technological solutions
Reduced dependency on Middle East oil
Increased use of coal, natural gas, nuclear energy, renewables
Diversification of all sources of supply
Investment in interchangeability
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Energy Security: Why Is It Still So Important?
Supply disruptions pose a national security risk
Affordable energy still remains:essential to maintain our prosperitythe key enabler of economic growth a prerequisite of sustainable
development
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Increased Energy Security Risk: What Explains It?
Energy use is a function of:population growtheconomic growthindustrialisation and urbanisation
Increase in energy use is occurring at the same time as oil importers are increasing their dependence on the Middle East
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Dependency of Major Economies on Oil Imports
Japan 100% Korea 100% India 76% US 61% China 56%
Source: BP Statistical Review 2010
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Climate Change: What Is the Real Issue?
The real issue is the build-up of the stock of global emissions – this continues to intensify
Communities everywhere express the need to “do something” but have almost zero power over this global environmental problem. Why?
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Global Emissions: Linkage to Energy Use
80% of global emissions are linked to energy use
We reiterate that energy use is a function of:population growtheconomic growthindustrialisation and urbanisation
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Domestic Emission Reductions: Questions to Consider
To what extent will domestic emission reductions actually reduce the risk of global climate change?
To what extent will a carbon price be effective?
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Domestic Emission Reductions: Questions to Consider contd.
How should a carbon price be fixed? How should it be adjusted? Should it apply in all sectors? Should it also apply to exports?
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APEC Energy and Climate Pathfinder Process
First outlined by Energy Alliance of Australia to EWG 39 in March 2010
An ongoing 10-step process of policy formulation, monitoring, reporting and review
Greater emphasis should be placed on technology and sustainability
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Significance of Sustainability
Sustainability can be the unifying global goal
Sustainability is not an end-state but a multi-dimensional process requiring ongoing review and adjustment
Low-carbon energy technologies are indispensable for sustainability
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Low-Carbon Technologies: R & D + Global Deployment
What technologies will change global energy consumption patterns is the most significant issue
Without global deployment of these technologies, we will only tinker with the climate change problem
Domestic and international policies must therefore be aligned
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Technology-Driven Framework
Domestic Incentives,Subsidies
Cross-Border Bilateral,
Multilateral, Scientific
Collaboration
Removal of Trade Barriers, Tariffs
R & D Low-Carbon
Technologies
Global Technology Deployment
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Importance of Removing Trade Barriers
Trade barriers must not be allowed to impede global deployment of low-carbon energy technologies
Tariffs on “Environmental Goods and Services” (EGS) could be eliminated by the Trans Pacific Partnership (TPP) agreement or by an EGS agreement under the WTO
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Gains from Elimination of Tariffs on EGS
US Peterson Institute estimates increase in world exports by $5.9 billion, with major GDP gains
World Bank sees this providing win-win-win opportunities (trade, technologies, emissions reduction)
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World Energy Council (WEC) Recommendation to WTO
WEC has recommended that tariffs be eliminated for all “Environmental Goods” (low-carbon technologies)
WEC has nominated 6 priority low-carbon categories to WTO
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WEC’s WTO EG Categories
(1) Energy efficiency
(2) CCS
(3) Renewables
(4) Nuclear
(5) Natural gas generation
(6) Flare gas reduction
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Environmental Goods: Main Examples
‘Smart Grid’ meters, transformers and switching apparatus
Generators, boilers, turbines, compressors, pumps, tanks and plant components
Measuring and control systems and related instruments
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Summary and Conclusions
(1) Business welcomes a more practical approach to energy and climate issues in many economies
(2) There are also positive signs of bottom-up policy alignment (eg APEC EMM 9 Declaration, June 2010) but global alignment is likely to be very gradual
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Summary and Conclusions contd.
(3) Business sees low-carbon technological solutions as absolutely vital
(4) A technology-driven policy framework can both incentivise domestic R & D and accelerate global technology deployment
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Summary and Conclusions contd.
(5) By eliminating tariffs on EGS, the TPP and WTO can play an effective role in facilitating global deployment of low-carbon technologies
(6) Low-carbon technology deployment provides the common policy thread for future global policy alignment – this is our key message to policymakers
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About the Energy Alliance of Australia
The Energy Alliance is an Australian energy policy body
We are an apolitical NGO and do not lobby governments
We thank the APEC ETI Task Force for its invitation to discuss these important policy issues