Dr. Phyllis Yoshida Lead Shepherd, APEC Energy Working Group. Deputy Assistant Secretary for Asia, Europe and the Americas U.S. Department of Energy

Transcription

1 Dr. Phyllis Yoshida Lead Shepherd, APEC Energy Working Group Deputy Assistant Secretary for Asia, Europe and the Americas U.S. Department of Energy

2 Global Energy Challenges Global energy consumption will increase by roughly 50% by 2030, with 70% of that growth coming from the world s emerging economies 30% from China alone, 15% from India, and 86. The amount of investment needed to meet this growing demand is estimated by the IEA to be over $22 trillion between now and There are currently 1.6 billion people without electricity. Electricity demand will increase by 100% over the next 25 years. Over 70% of the current anthropologic greenhouse gas emissions are energy related.

3 Asia Pacific Economic Cooperation (APEC) Russia Canada Thailand Malaysia Singapore China Korea Japan Chinese Taipei Hong Kong, China Viet Nam Philippines Indonesia Brunei Darussalam Papua New Guinea USA Mexico Peru Australia Chile New Zealand

4 APEC Leaders and Ministers Call for Phasing Out Subsidies Ninth APEC Energy Ministers Meeting (Fukui, Japan, 19 June 2010) We remain committed to the 2009 Leaders' Declaration to rationalize and phase out over the medium term fossil fuel subsidies that encourage wasteful consumption, while recognizing the importance of providing those in need with essential energy services.

5 Clean Energy Options Boosted When Fossil Subsidies Decline Power sector (displacing regular coal) Renewables (wind and solar) Nuclear power (for interested economies) Natural gas (half the carbon of coal per kwh) Coal with Carbon Capture and Storage Transport sector (replacing petroleum): Electric vehicles (running on wind, solar, nuclear, natural gas, coal with CCS) Biofuels (from second and third generation nonfood feedstocks farm and forest residues, grasses, algae)

6 Where Are The Subsidies? Many economies have subsidies including subsidies for motor fuel and heating fuel (raising both carbon emissions and oil import dependency). A clearer picture exists of fossil fuel subsidies in developed economies of the Organization for Economic Cooperation and Development (OECD) than for developing economies.

7 Fossil Fuel Subsidy Reform: Economics vs. Politics Economic and environmental benefits of fossil fuel reduction are clear to all. But people don t like to see their energy costs go up, and governments don t like to see their people unhappy. So we need to give share information on best practices that economies have successfully implemented and which other economies can emulate.

8 Tailoring Programs of Subsidy Reduction to the Poor Key challenges to subsidy reduction: Energy access for low-income households Impact on living costs for poor households Concerns about cost-competitiveness (and therefore export trade and jobs) Responding to the challenge: Programs to expand energy access Programs to help the poor pay energy bills and weatherize Avoid general energy subsidies to everyone

9 Focus of APEC Analysis Assessing the Benefits Nature of subsidies affecting production and consumption of fossil fuels. Magnitude of inefficient fossil fuel subsidies in APEC. Economic issues raised by subsidies. Implications of subsidies for energy consumption and for the environment. Benefits of phasing out subsidies in APEC.

10 Focus of APEC Analysis: Sharing Best Practices Issues involved in phasing out subsidies. Ways to protect low-income households. Case examples from phasing out subsidies, including experience in protecting low-income households. Methodologies used in prioritization and in decisionmaking in subsidy reduction. Recommendations for priority attention by APEC developing economies.

11 Timeline for APEC Analysis Ministerial Directive -- June 2010 Concept Note -- September 2010 Request for Proposals -- Late 2010 Work Carried Out Outreach Workshop -- Early 2012

12 Positive spillover International carbon multiplier Leadership effect

13 We can help turn on the lights while solving the energy and climate challenges. 13

14 Earthrise from Apollo 8 (December 24, 1968) 14