Overview of APEC Energy Working Group Projects

Transcription

1 Overview of APEC Energy Working Group Projects

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3 Overview of APEC Energy Working Group Projects Prepared for the 8 th Meeting of APEC Energy Ministers, Darwin, May 2007 Energy Futures Australia Pty Ltd 11 Binya Close Hornsby Heights NSW 2077 Australia Phone: Mobile: Fax: efa@efa.com.au Website:

4 DISCLAIMERS AUSTRALIAN GOVERNMENT The material contained within this document has been developed by Energy Futures Australia Pty Ltd. The views and opinions expressed in the materials do not necessarily reflect those of the Australian Government or the Minister for Industry, Tourism and Resources. The Australian Government accepts no responsibility for the accuracy or completeness of the contents, and shall not be liable (in negligence or otherwise) for any loss or damage (financial or otherwise) that may be occasioned directly or indirectly through the use of, or reliance, on the materials. Furthermore, the Australian Government, its employees, agents and officers accept no responsibility for any loss or liability (including reasonable legal costs and expenses) or liability incurred or suffered where such loss or liability was caused by the infringement or intellectual property rights, including moral rights, of any third person. ENERGY FUTURES AUSTRALIA PTY LTD While this document has been prepared to the best of the author s knowledge and understanding and with the intention that it may be relied on by the client, Energy Futures Australia Pty Ltd and the individual author of the document make no representation or warranty as to the accuracy or completeness of the material contained in this document and shall not have, and will not accept, any liability for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from this document or any omissions from this document, or any other written or oral communication transmitted or made available to any other party in relation to the subject matter of this document. Final version 15 April 2007 Principal Author: Dr David Crossley Managing Director Energy Futures Australia Pty Ltd

5 CONTENTS 1. INTRODUCTION APEC ENERGY POLICIES, GOALS AND OBJECTIVES The Bogor Declaration The 3Es Initiative EWG Action Program The Osaka Action Agenda APEC Energy Policy Principles APEC Energy Security Initiative EWG Future Directions Strategic Plan Energy for Sustainable Development EWG Operational Plan EWG GROUPS Introduction Expert Group on Energy Data and Analysis (EGEDA) Expert Group on Clean Fossil Energy (EGCFE) Expert Group on Energy Efficiency and Conservation (EGEE&C) Expert Group on New and Renewable Energy Technologies (EGNRET) Expert Group on Minerals and Energy Exploration and Development...16 (GEMEED) 3.7 Task Force on Energy Efficiency and Renewable Energy Financing Task Force on Biofuels Asia Pacific Energy Research Centre (APERC) EWG PROJECTS The APEC Projects Process Subject Classification of EWG Projects Energy Data and Analysis Projects Generic Issues Projects Clean Fossil Energy Projects Energy Efficiency and Conservation Projects New and Renewable Energy Projects Minerals and Energy Exploration and Development Projects CONCLUSION...33 APPENDIX A: SUBJECT CLASSIFICATION OF APEC ENERGY WORKING...34 GROUP PROJECTS APPENDIX B: APEC ENERGY WORKING GROUP PROJECTS i

6 LIST OF TABLES Table 1. Non-Binding Energy Policy Principles Endorsed by APEC Energy...4 Ministers in 1996 Table 2. Financial Contributions to EWG Projects Funded from the...20 APEC Central Fund, 2000 to 2007 Table 3. Major Categories for Subject Classification of EWG Projects...21 Table 4. Subjects Covered by Energy Data and Analysis Projects...21 Table 5. Subjects Covered by Generic Issues Projects...23 Table 6. Subjects Covered by Clean Fossil Energy Projects...25 Table 7. Subjects Covered by Energy Efficiency and Conservation Projects...27 Table 8. Subjects Covered by New and Renewable Energy Projects...30 Table 9. Subjects Covered by Minerals and Energy Exploration...32 and Development Projects ii

7 EXECUTIVE SUMMARY Projects are a vital part of the APEC process. APEC projects respond to Ministers and Leaders calls for action in specific policy areas and help translate these calls into physical action. APEC projects cover a wide range of activities, such as seminars, publications and research, and are aimed at enhancing economic growth and prosperity for the region, including trade and investment liberalisation and economic and technical cooperation. Since 1992, 250 projects have been funded and implemented under the auspices of the APEC Energy Working Group (EWG). These projects are closely linked to APEC policy initiatives. In some case the projects contribute to the development of policy and in other cases they play a significant role in policy implementation. The EWG projects can be classified under six major categories: 1. Energy Data and Analysis 4. Energy Efficiency and Conservation 2. Generic Issues 5. New and Renewable Energy 3. Clean Fossil Energy 6. Minerals and Energy Exploration and Development. Each of these categories is subdivided into a number of subjects. Subjects which are directly relevant to APEC policy initiatives are covered by a relatively large number of EWG projects. These include: Historical Statistics of Energy Supply Energy Security Micro-economic Reform in the Energy Sector Financing and Investment in Energy Projects Clean Coal Reducing CO2 Emissions Energy Efficiency Performance Standards and Labelling Renewable Energy Technologies and Technology Transfer For EWG projects funded by APEC between 2000 and 2007, the average amount received from the APEC Central Fund was about USD70,000 per project. The average additional amount leveraged by the APEC funding from other sources was about USD50,000 per project and the average total cost per project was USD120,000. In addition, a significant number of EWG projects are self-funded by APEC member economies with no contribution from the APEC Central Fund. On the basis of these figures, the EWG projects represent excellent value for money. The outcomes and results of the projects constitute an extensive and comprehensive collection of policy-targeted information. This information has been, and will continue to be, invaluable in achieving APEC s goal of maximising the energy sector s contribution to the region s economic and social well being while mitigating the environmental effects of energy supply and use. iii

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9 1. INTRODUCTION Asia-Pacific Economic Cooperation (APEC) was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community. APEC is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC has 21 members - referred to as member economies - which account for approximately 40% of the world's population, approximately 56% of world GDP and about 48% of world trade. APEC is the only inter-governmental grouping in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the World Trade Organisation or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis. The APEC Energy Working Group (EWG) was launched in 1990 and seeks to maximise the energy sector's contribution to the region's economic and social well being, while mitigating the environmental effects of energy supply and use. The EWG is one of 11 Working Groups currently operating under the APEC umbrella. The EWG has a well established structure comprising representatives from APEC economy governments, research organisations and the business community, including five Expert Groups, two Task Forces, the Asia Pacific Energy Research Centre (APERC) and the Energy Business Network (EBN). Australia has served as Lead Shepherd and Secretariat for the Energy Working Group since its formation. One of the activities undertaken under the auspices of the EWG is the funding of research projects that study topics relevant to energy supply and use in the APEC region. Since 1992, 250 projects have been funded through the EWG. The purpose of this report is to provide an overview of the EWG projects and their outcomes, with the aim of highlighting the contributions made by the projects to achieving the goal of maximising the energy sector's contribution to the region s economic and social well being while mitigating the environmental effects of energy supply and use. This report also aims to demonstrate the practical relevance of these activities to achieving the wider energy security and environmental goals described in the APEC Economic Leaders' Declaration at their 14th Meeting (Ha Noi, Viet Nam, November 2006): We reiterated that energy security is critical for sustainable economic development. Noting the challenges of meeting rapidly growing energy demands while minimizing environmental effects, we urged member economies to continue to work to facilitate energy investments and crossborder energy trade, to develop new and renewable energy sources and technologies to ensure cleaner use of fossil fuels, to boost energy efficiency and conservation, to enhance emergency preparedness and to better protect critical energy infrastructure. We commended the launch of the APEC Biofuels Task Force. We instructed Ministers to report to us in 2007 on 1

10 ways in which APEC might further contribute to responding to these challenges through pursuing policies and technologies that promote the development of cleaner energy and the improvement of energy efficiency, thereby enabling economies to meet increasing energy needs with a lower environmental impact and to address climate change objectives. 2. APEC ENERGY POLICIES, GOALS AND OBJECTIVES 2.1 The Bogor Declaration Since its inception, APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region, creating efficient domestic economies and dramatically increasing exports. Key to achieving APEC's vision are the Bogor Goals of free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing economies. These goals were adopted by APEC Leaders at their November 1994 meeting in Bogor, Indonesia. In the Declaration from their Bogor meeting, APEC Economic Leaders stated APEC s basic objectives as follows: to strengthen the open multilateral trading system; to enhance trade and investment liberalisation in Asia-Pacific; and to intensify Asia-Pacific development cooperation. 2.2 The 3Es Initiative Also in November 1994, at the APEC Ministerial meeting held in Jakarta, a report was presented to the Ministers on the 3Es: economic growth, energy security and environmental protection. This paper, prepared by Japan, contained an assessment of current levels and patterns of energy supply and demand with a view to arriving at a more balanced level and pattern in future. Ministers discussed the increasing demand for energy and the growing significance of environmental issues in the region, and noted the importance of the simultaneous achievement of the 3Es. Ministers also examined the future issue, as pointed out in the report, of improving the regional structure of energy demand-supply, and discussed APEC's vital role in information exchange, fostering common understanding and policy discussion. Ministers noted that the Japanese paper would prove helpful to the Energy Working Group in defining its future efforts. 2.3 EWG Action Program At the eleventh meeting of the Energy Working Group held in Taipei in October 1995, agreement was reached on the full Action Program for the EWG which was to be incorporated into the Osaka Action Agenda (see section 2.4, page 5) Goals The activities embarked on and proposed in the EWG s Action Program aimed to contribute to the achievement of the objectives of the Bogor Declaration and address the elements embraced in the 3Es initiative by: 2

11 improving the understanding by the governments and business sectors of member economies of regional energy markets, thus assisting policy making and business activities; reducing regulatory, institutional and procedural impediments to trade and investment in energy infrastructure, products and services; reducing the environmental impacts of energy production, delivery and consumption through improving access to technology, training, services and investment opportunities; reducing costs to both governments and business by the acceptance of equivalence in accreditation and the closer harmonisation of standards relating to energy products, appliance and services. Achievement of these goals would enable the Energy Working Group to foster the development of APEC as a sustainable energy community Principles Also included in the EWG s Action Program were 14 non-binding policy principles for rational energy consumption which were later endorsed by APEC Energy Ministers (see Table 1, page 4). EWG members agreed to develop and build upon these principles, including applying them into additional areas where consensus can be reached, leading to the development of a range of shared energy policy goals Priorities The EWG s Action Program did not attempt to include the full spectrum of the Group s activities. Rather it focussed on a limited number of key initiatives that would produce outcomes of direct relevance to the achievement of the objectives of the Bogor Declaration and the 3Es initiative. The activities set out in the EWG Action Program consisted of four themes: fostering a common understanding on regional energy issues; facilitating investment in the energy sector; reducing environmental impacts in the energy sector; and acceptance of equivalence in accreditation and increasing harmonisation of energy standards. 3

12 Table 1. Non-Binding Energy Policy Principles Endorsed by APEC Energy Ministers in Emphasise the need to ensure energy issues are addressed in a manner which gives full consideration to harmonisation of economic development, security and environmental factors. 2. Pursue policies for enhancing the efficient production, distribution and consumption of energy. 3. Pursue open energy markets for achieving rational energy consumption, energy security and environmental objectives, recommending action in the appropriate forum of APEC to remove impediments to the achievement of these ends. 4. Recognise that measures to facilitate the rational consumption of energy might involve a mix of market based and regulatory policies, with the relative components of the mix being a matter for the judgement of individual economies. 5. Consider reducing energy subsidies progressively and promote implementation of pricing practices which reflect the economic cost of supplying and using energy across the full energy cycle, having regard to environmental costs. 6. The regular exchange of experience on the various policies being used by member economies to achieve a more rational energy consumption. 7. Ensure that a least cost approach to the provision of energy services is considered. 8. Promote the adoption of policies to facilitate the transfer of efficient and environmentally sound energy technologies on a commercial and nondiscriminatory basis. 9. Encourage the establishment of arrangements for the development of human resource skills relevant to the application and operation of improved technology. 10. Enhance energy information and management programs to assist more rational energy decision making. 11. Encourage energy research, development and demonstration to pave the way for cost effective application of new, more efficient and environmentally sound energy technologies. 12. Promote capital flows through the progressive removal of impediments to the funding of the transfer and adoption of more energy efficient and environmentally sound technologies and infrastructure. 13. Promote cost effective measures which improve the efficiency with which energy is used but reduce greenhouse gases as part of a suggested regional response to greenhouse gas reductions. 14. Cooperate, to the extent consistent with each economy's development needs, in the joint implementation of projects to reduce greenhouse gas emissions consistent with the Climate Change Convention. 4

13 2.4 The Osaka Action Agenda At the request of APEC Economic Leaders, following the Bogor meeting the APEC Senior Officials began the task of developing an Action Agenda to implement the Bogor Declaration. The Action Agenda was subsequently endorsed by APEC Economic Leaders at their third meeting in Osaka in November The Action Agenda consisted of two parts: Part One concerning trade and investment liberalisation and facilitation; and Part Two concerning economic and technical co-operation. The Action Agenda included Action Programs in 12 specific areas, including the EWG Action Program in relation to energy. 2.5 APEC Energy Policy Principles The APEC Energy Ministers held their first meeting in Sydney in August Ministers identified objectives of fundamental importance to the region s future prosperity. These included: improvement of regional energy security primarily through the enhancement of open efficient regional energy markets, and through supply capacity expansion and energy conservation; reforms to mobilise business investment in power sector infrastructure; a strategic approach to reduce environmental impacts; a framework to reduce business costs through cooperation on energy standards; and the adoption of energy policy principles which give impetus to regional initiatives to reform energy policies for incorporation into member economies domestic energy policy deliberations. The 14 non-binding energy policy principles endorsed by Ministers at this meeting and also included in the EWG Action Program for the Osaka Action Agenda are shown in Table 1 (page 4). 2.6 APEC Energy Security Initiative At their meeting in Brunei in November 2000, APEC Economic Leaders (and Ministers) noted the risks to the world economy posed by volatility in the oil market and called for appropriate measures to promote stability in the mutual interests of consumers and producers. To help reduce vulnerability and promote market stability, APEC Leaders directed the EWG to implement an energy security initiative. Following a series of workshops the EWG developed the APEC Energy Security Initiative, which was endorsed by the EWG in September 2001, and by APEC Economic Leaders in October The Energy Security Initiative (ESI) comprises a series of short-term measures to respond to temporary energy supply disruptions, and longer-term policy responses to address the broader challenges facing the region's energy supply that are practical in a policy context and politically acceptable. In October 2003, APEC Economic Leaders endorsed an Implementation Plan and an APEC Action Plan as mechanisms to accelerate implementation and further enhance the ESI. 5

14 In June 2004, APEC Energy Ministers issued a Declaration which included a number of new ESI directions under the following themes: preparing for energy supply disruptions; facilitating energy investment; using energy more efficiently; expanding energy choices; and capitalising on technological innovation. The ESI was further enhanced and expanded in November 2004, when APEC Economic Leaders endorsed the Comprehensive Action Initiative Recognising the Need for Strengthening the APEC Energy Security Initiative (CAIRNS Initiative) to strengthen the ESI under the following themes: energy security; sustainable development; and common prosperity. Short-term ESI Measures Improving transparency of the global oil market through reporting timely and quality data under the Joint Oil Data Initiative. Monitoring efforts to strengthen maritime security. Participating in the Real-time Emergency Information Sharing system. Encouraging Member Economies to have emergency mechanisms and contingency plans in place, including the establishment and management of strategic oil stocks. Longer-term ESI Policy Responses to Improve Regional Energy Security Removing market impediments to oil exploration and production. Facilitating investment in new downstream oil infrastructure. Facilitating more effective utilisation of existing downstream oil infrastructure. Attracting energy investment by creating conditions that facilitate energy infrastructure development. Promoting energy efficiency and conservation though sharing information on energy efficiency policies and programs. Participating in the Energy Standards and Labelling Cooperation Initiative and identifying best practices, benchmarks and indicators to assess efficiency improvements. Accelerating energy technology development by increasing cooperative activities to support the development and uptake of technologies for new and renewable energy, clean fossil energy including clean coal, carbon capture and storage, hydrogen and fuel cells and methane hydrates. Developing practical measures to enhance cooperation that supports the development of alternative transportation fuels. 6

15 Sharing information on current measures to improve transport and vehicle efficiency. Facilitating the development and implementation of best practices in energy efficiency and renewable energy in buildings. Encouraging interested APEC economies to progress nuclear power while ensuring optimal safety, security, health and waste handling standards. Expanding cross-border energy trade by moving towards best practice in facilitating natural gas trade, improving the collection of natural gas data, implementing the LNG Public Education and Communication Information Sharing Initiative and supporting the APEC Gas Forum. Exploring new mechanisms for working more closely with international and local financial institutions to facilitate infrastructure development and investment in energy efficiency and renewable energy projects within the APEC region. Fostering collaboration with other international energy organisations, noting the ongoing cooperation between the EWG and the International Energy Agency and the recently-formed collaborative relationship with the Renewable Energy and Energy Efficiency Partnership. 2.7 EWG Future Directions Strategic Plan In May 2001, the Energy Working Group approved the Future Directions Strategic Plan to operate over the five year period from 2001 to Objectives In the Future Directions Strategic Plan, the EWG agreed to work cooperatively over the five year period through voluntary agreements which took into account the individual circumstances of member economies. As part of its contribution to sustainable development within APEC, the EWG agreed to pursue the following objectives: strengthening the security and reliability of affordable energy to all within the APEC community; promotion of clean and efficient technologies, and the efficient use of energy to achieve both economic gains and environmental enhancement; achieving environmental improvement of energy production, use and mineral extraction within the APEC community; harnessing all expertise available to the Energy Working Group to give effect to the above objectives Themes The Future Directions Strategic Plan stated that the EWG would promote policy approaches and initiatives and adopt work programs within the following strategic themes: fostering a common understanding on regional energy issues; 7

16 improving the analytical, technical, operational and policy capacity within member economies; facilitating energy and minerals resource and infrastructure development in an environmentally and socially responsible manner; facilitating energy efficiency and conservation; facilitating improved reliability and stability in the provision of energy supply to meet demand; facilitating energy technology development, exchange, application and deployment; facilitating a diverse and efficient supply mix. 2.8 Energy for Sustainable Development At the World Summit on Sustainable Development in September 2002, Australia and Mexico, on behalf of the EWG, submitted Energy for Sustainable Development: The Contribution and Role of the APEC Energy Working Group as a Type 2 Partnership Initiative. The Initiative had been agreed by APEC Energy Ministers at their sixth meeting earlier that year. It demonstrated to a global audience how voluntary regional partnerships can be effectively utilised to achieve sustainable development objectives. Energy for Sustainable Development highlights the four main elements of the EWG s approach to furthering sustainable development objectives: strengthening the security and reliability of affordable energy to all within our APEC community; promoting clean and efficient technologies, and the efficient use of energy to achieve both economic gains and environmental enhancement; achieving environmental improvement of energy production, use and mineral extraction within our APEC community, and harnessing all expertise available to the EWG to give effect to the above objectives. The EWG has been actively implementing its commitments under Energy for Sustainable Development through a range of projects and activities, and has agreed to incorporate sustainable development principles into the development and implementation of all EWG projects. In recognising the link between sustainable development and energy security, the EWG has recognised that a number of EWG activities support the implementation of both the APEC Energy Security Initiative and Energy for Sustainable Development. Australia and Mexico, on behalf of the EWG, have submitted a Revised Type 2 Partnership Initiative, Energy for Sustainable Development: Fostering Regional Energy Cooperation in APEC , to the United Nations Commission on Sustainable Development at CSD 15, 30 April to 11 May

17 2.9 EWG Operational Plan 2006 The seventh APEC Energy Ministers Meeting in Gyeongju, Republic of Korea, provided the framework for the EWG Operational Plan Under the theme, Securing APEC s Energy Future: Responding to Today s Challenges for Energy Supply and Demand, Ministers discussed and developed initiatives to respond to high oil prices and oil dependency, as well as the region s broader energy supply and demand challenges. The meeting also continued the Energy Ministers previous broadbased approach to energy security, committing to continued development of response mechanisms for short-term disruptions while pursuing longer term security objectives. Reflecting the Ministers Meeting, the Operational Plan categorised EWG initiatives into the following three themes and corresponding sub-themes. Responding to the Impact of High Oil Prices and Oil Dependency Initiatives under this theme were classified into two sub-themes: Removing Market Impediments to Oil Exploration and Production Encouraging Fuel Efficiency in Transport and Diversification Away from Oil Responding to the APEC Region s Broader Energy Supply and Demand Challenges Initiatives under this theme were classified into four sub-themes: Promoting Energy Efficiency and Conservation Expanding Cross-Border Energy Trade Attracting Energy Investment Accelerating Energy Technology Development Harnessing All Expertise Available to the EWG The current Operational Plan will be updated to incorporate directives from the 8th Meeting of Energy Ministers (Darwin, 27 to 30 May 2007). 3. EWG GROUPS 3.1 Introduction The EWG has eight associated groups which carry out initiatives related to energy use and supply in the APEC region. These groups comprise: five Expert Groups, each focusing on a specific energy area, that provide a forum for fostering cooperation between research and technical specialists within APEC economies; two Task Forces that progress Energy Ministers directives in specific areas of energy supply and use; the Asia Pacific Energy Research Centre (APERC) that supports the EWG and its work program by conducting research to foster understanding about energy issues among APEC economies. 9

18 3.2 Expert Group on Energy Data and Analysis (EGEDA) The Expert Group on Energy Data and Analysis (EGEDA) was originally established in 1991, as the Energy Data Expert Group, following the second meeting of the EWG Mission The Expert Group is responsible for providing policy relevant energy information to APEC bodies and the wider community, through: collecting energy data in the APEC region; managing the operation of the APEC Energy Data Base; collecting policy relevant information from member economies; and examining and advising on the research activities of the Asia Pacific Energy Research Centre (APERC) Role The Expert Group was originally established to manage and review the operation of the APEC Energy Data Base. A Coordinating Agency was established as the central data collection point at the Energy Data and Modelling Center in the Institute of Energy Economics, Japan. The Expert Group developed the APEC Energy Data Base through constructing an energy data collection network among member economies and more recently has developed an on-line data collection and dissemination system. Following the twelfth EWG Meeting in May 1996, the name of the Expert Group was changed to the Energy Data and Outlook Expert Group reflecting its new role of advising the Asia Pacific Energy Research Centre in the execution of its outlook and research activities. In 1999, at the eighteenth EWG Meeting, the name of the Group was changed to the current Expert Group on Energy Data and Analysis. This is to reflect the expanded research activities of APERC and the Expert Group s role in overseeing these activities as well as responding to the EWG s increasing need for information and analysis in its policy-oriented discussions Products The Expert Group has published APEC Energy Statistics annually since 1993 and APEC Energy Handbook annually since In 1995, the Expert Group published Historical APEC Energy Statistics Since 2001, APERC has developed and published an annual APERC Energy Overview on behalf of EGEDA. 3.3 Expert Group on Clean Fossil Energy (EGCFE) The Expert Group on Clean Fossil Energy (EGCFE) was established in 1993 as the Expert Group on Clean Coal (EGCC). In 1996 and 1997, it was known as the Expert Group on Clean Fossil Fuels (EGCFF) before adopting its current name in Mission The mission of the Expert Group is to encourage the use of clean fuels and energy technologies that will both contribute to sound economic performance and achieve high environmental standards. 10

19 3.3.2 Role The Expert Group s primary role is to support the work of the Energy Working Group by gathering and sharing timely information regarding technical, economic and policy aspects of fossil energy production, transportation, and use within the APEC region. Specifically, the Expert Group focuses on promoting clean fossil energy options by facilitating, coordinating, and implementing a variety of activities, including projects, studies, workshops, conferences, and other meetings, related to clean and efficient production and use of fossil fuels Strategy The Expert Group s work focuses strongly on the linkages between fossil energy production and use and associated environmental issues which need to be: considered in developing government programs and policy actions in member economies; and addressed in commercial projects by the private sector and financial institutions. Particular attention is given to enhancing the long-term economic and environmental sustainability of the entire fossil fuel production and use cycle throughout the region. This includes gathering and distribution of information regarding all aspects of clean fossil energy with the aim of: promoting joint research, development, and demonstration activities; development of commercial projects employing clean fossil fuels and technologies; and establishment of a sound climate for clean fossil energy investments in the region. The EGCFE undertakes activities to concurrently enhance economic development and mitigate, at the local, regional, and global levels, the environmental impact (eg air emissions, water and waste management) related to the production, preparation, transport, storage, and use of fossil fuels. Considerable emphasis is given to developing and promoting options to mitigate local, regional, and global environmental impacts of fossil energy production and use. 3.4 Expert Group on Energy Efficiency and Conservation (EGEE&C) The Expert Group on Energy Efficiency and Conservation (EGEE&C) was established in Mission The mission of the Expert Group is to advance economic and social well-being, and to realize environmental benefits in the Asia-Pacific region through energy conservation and the application of energy-efficiency practices and technologies. 1 Fossil fuels include coal, coalbed methane, oil, natural gas, tar sands, oil shale, and their derivatives (e.g., coke, heat, electricity, coal-derived liquids, gases and chemicals; and petroleum products, including oil-water mixtures, such as Orimulsion). 11

20 3.4.2 Objectives The Expert Group has established the following objectives to accomplish its mission: assist in achieving energy security and securing adequate and affordable energy services in support of basic human needs and continued economic growth; advance the application of demonstrated energy-efficiency practices and technologies in appropriate regional end-use sectors (residential, commercial, industrial, agricultural, transportation, etc); assist in developing and enhancing trade between APEC member economies energy in products and services and energy-efficiency practices and technologies; contribute to the international effort to reduce the adverse impacts of energy production and consumption upon our global environment; improve the analytical, technical, operational and policy capacity for energy efficiency and conservation within member economies Strategy The Expert Group has developed a strategy that consists of the following major elements: maintain a dynamic organisation structure and associated modus operandi that focus on outcomes consistent with the EGEE&C s mission and objectives; perform technological and institutional assessments to increase the knowledge base about energy conservation, the optimization of energy use systems, the application of energy-efficiency practices and technologies, and environmental impacts of energy use in the Asia-Pacific region; engage in collaborative energy technology exchange endeavours such as seminars, workshops, and personnel exchange programmes that facilitate the education and training of energy efficiency and conservation stakeholders and champions in the region; establish cooperative linkages with other international energy technology transfer organisations to maximise energy efficiency and conservation information exchange, and minimise costly duplication of efforts; deploy technology transfer mechanisms such as computerised (eg internet-based or CD-ROM) databases and products and services directories that compile information about the availability and successful implementation of energy-efficiency practices and technologies and conservation measures that apply to the Asia-Pacific region; undertake and facilitate activities that reduce business costs and enhance trade in energy efficient products through cooperation on energy standards. Such activities will support internationally the acceptance of test results; facilitate alignment and harmonization of test procedures and standards; and develop equivalence and translation tools for comparing energy performance levels; conduct projects that enable a large number of APEC member economies to participate jointly in research, development and demonstration projects that promote 12

21 energy conservation and result in the application of energy-efficiency practices and technologies in the Asia-Pacific region; facilitate exchange of information on member economies programs and policies to promote energy efficient and conservation; encourage program activities in relevant energy end-use sectors to encourage business/private sector participation in applying energy-efficiency practices and technologies region-wide. 3.5 Expert Group on New and Renewable Energy Technologies (EGNRET) The Expert Group on New and Renewable Energy Technologies (EGNRET) was established in Mission The mission of the Expert Group is to facilitate an increase in the use of new and renewable energy technologies in the APEC region Objectives The activities of the Expert Group are directed towards meeting the energy challenges identified by APEC Leaders and Energy Ministers. In addition, the Expert Group develops and implements projects that contribute to the EWG s objectives and strategic initiatives. Since 2000, these projects have been implemented primarily through the APEC 21st Century Renewable Energy Development Initiative (see section 3.5.5, page 15). The purpose of this Initiative, endorsed by APEC Energy Ministers, is to advance the use of renewable energy to promote sustainable economic development and growth within the APEC region. The APEC 21st Century Renewable Energy Development Initiative addresses the principal objectives of the EWG by: fostering a common understanding of regional renewable energy technology issues; facilitating trade and investment in new and renewable energy technologies and services; and reducing the environmental impact of the energy sector through applications of new and renewable energy technologies Role The Expert Group may be involved in the following types of activities, depending on the level of available funding and member-economies priorities relating to renewableenergy development: developing effective policy recommendations for addressing impediments to the increased use of renewable energy technologies and for including renewable energy in domestic energy plans; 13

22 implementing renewable energy resource assessments to facilitate a thorough understanding of the availability of adequate resources in APEC member economies; promoting the commercialisation of renewable energy technologies in such a way as to make them economically viable in a wide range of applications; establishing procedures and mechanisms for the routine exchange of pertinent information among member economies, focusing especially on officials responsible for decisions on energy supplies and operators and maintainers of renewable energy systems; identifying and mobilizing, as appropriate, industry, financial institutions, and government sources of financing, technical assistance and education programs by making these sources more aware of the benefits of renewable energy applications and the issues associated therewith; recommending and organizing activities to promote renewable energy technology co-operation, so as to utilize existing technical expertise in APEC member economies; promoting the development of the renewable energy technological and services infrastructure to provide a basis for an effective, quality system of installation and maintenance; promoting the development of renewable energy technologies for specific applications that demonstrate the effectiveness of using these technologies to achieve specific economic or social goals of APEC member economies; engaging in renewable energy technology assessment and related activities to demonstrate the cost-effectiveness of renewable energy applications; developing the human resource base to improve the analytical, technical, operational and policy capacity within member economies in the area of renewable energy development; facilitating improved reliability and stability in the provision of energy supply to meet demand Strategies In carrying out the above tasks, the Expert Group is guided by the following strategies: to foster technology transfer and renewable energy based local and regional industrial development; to engage industry, financial institutions, government officials, and NGOs, as appropriate; to improve the level of information exchange between member economies on existing initiatives to address market barriers; to assess the potential for replicating successful initiatives to break down market barriers; to identify and pioneer new initiatives to break down market barriers; 14

23 to establish links with, and use of, existing technology information databases and clearing houses; to encourage the development and use of energy planning tools that include renewable energy APEC 21st Century Renewable Energy Development Initiative The purpose of the APEC 21st Century Renewable Energy Development Initiative is to develop a series of collaboratives within the framework of the EGNRET to advance the use of renewable energy for growth and sustainable development in the APEC region. A collaborative is designed to address the energy needs and issues of individual APEC member economies through multi-economy cooperation that leads to action and results. There are two types of collaboratives: application-driven collaboratives include on-grid, hybrid or stand-alone applications. Examples include the use of renewable energy for rural health care, rural education, or rural economic development; utilization of wind technologies for grid-connected power; or the use of distributed power in rural electrification; program-based collaboratives include renewable-energy financing, regulations, training or standards. Discrete projects developed as elements of a collaborative may address a range of issues, including: development of joint ventures, the removal of trade barriers, renewableenergy infrastructure-development needs, training, analytical tools and methodology, policy and financing. Collaboratives are designed and implemented by multi-economy and multi-disciplinary collaborative teams, consisting of representatives from APEC economies, the private sector, civil society, utilities, financing organizations and other relevant organizations. At least three APEC economies are represented on each team. What distinguishes this Initiative from previous EGNRET activities is that each collaborative is based on a multi-year work-program, which provides structure and a timetable to achieve results. Such work programs require a strong commitment for successful implementation from developed and developing economies. While collaboratives with APEC-wide benefits may seek funding from APEC funds, collaboratives primarily rely on funding from the participating member economies, international financing organizations, foundations and the private sector. Participation in each collaborative is entirely voluntary. The Initiative encourages the collaborative teams to interact with each other as well as with other APEC working groups, organizations like the International Energy Agency Working Party on Renewable Energy Technologies and the various IEA Implementing Agreements on renewable energy. 15

24 3.6 Expert Group on Minerals and Energy Exploration and Development (GEMEED) The Expert Group on Minerals and Energy Exploration and Development (GEMEED) was established in 1996, following a proposal by Chile and Korea in response to the importance of trade and cooperation in minerals and metals in the APEC region Mission In keeping with broad APEC goals, objectives and strategic themes of the EWG, as well as directives from Meetings of Ministers Responsible for Mining, the Expert Group contributes to sustainable growth in the region through discussion and diffusion of approaches to explore for, and develop, minerals and energy resources 2 in a socially acceptable, environmentally sound and economically efficient manner Role In performing its role, GEMEED carries out the following activities: articulates, coordinates and promotes, where appropriate, minerals and energy issues within APEC, including actions to improve society s appreciations of the mining and metals industry, and its contribution to sustainable development; gathers and distributes information about mineral and energy exploration, development potential and opportunities; facilitates investment in the minerals and energy sectors, and trade in minerals products; promotes linkages between minerals and energy in programs, projects or policy actions in member economies; enhances the contribution of mineral and energy resources to sustainable development, through environmentally and socially acceptable practices in exploration and development; identifies, develops and promotes synergies in the area of mineral and energy exploration and development with other pertinent regional and multilateral organisations. 2 The terms minerals and minerals sector refer to exploration, development, production and closure, as well as the trade in and use of mineral products; whereas, energy, energy resources and energy sector refer to exploration and development only, complementing the activities of the EWG itself and the other Expert Groups. 16

25 3.7 Task Force on Energy Efficiency and Renewable Energy Financing The Task Force on Energy Efficiency and Renewable Energy Financing was established in 2004, following a direction to the EWG from the sixth APEC Energy Ministers Meeting to implement the recommendations of a report on facilitating energy investment in the APEC region Objective The main objective of the Task Force is to work with the private sector and financial institutions to facilitate greater investments in clean and more efficient energy infrastructure and technologies Role The recommendations of the report on facilitating energy investment in the APEC region which are to be implemented by the Task Force include: produce and disseminate case studies to show how economies have facilitated energy efficiency financing, identifying best practices and lessons learned; work to harmonize standards, labelling and testing for equipment and products; support development of an international Energy Efficiency Financing Protocol with standard procedures and documentation, along with training on non-asset based financing for financiers, energy service companies, and project hosts; assist efforts to establish financial intermediaries and special purpose entities to help channel private investment into energy efficiency projects; encourage financial institutions to standardize procedures and documentation for project assessment and review, as well as to design risk sharing and mitigation instruments that can reduce capital and transaction costs; build public-private partnerships between financial representatives, government agencies and entrepreneurs to link private capital to project development. 3.8 Task Force on Biofuels The Taskforce on Biofuels was established in 2005, following a direction to the EWG from the seventh APEC Energy Ministers Meeting to establish the Task Force Objective The main objective of the Biofuels Task Force is to help APEC member economies better understand the potential for biofuels to displace oil in transport. The Task Force aims to report substantive conclusions to the Energy Working Group for appropriate consideration by future meetings of energy ministers. 17

26 3.8.2 Role The Task Force focusses on joint analysis of key issues affecting the potential of biofuels, including: economics: the costs of producing transport fuels from different forms of biomass, in comparison to the projected costs of automotive fuels produced from oil; infrastructure: infrastructure requirements for adapting fuelling stations to biofuels, the cost of meeting such requirements, and how fast adaptations should be made; vehicles: practical measures for promoting fuel-flexible vehicles that are biofuel-capable, and how fast such vehicles can be expected to penetrate the market; resources: the likely extent of biofuel resources, in terms of land that might available to cultivate crops for biofuel production and associated biofuel output; trade: the potential benefits of trade in biofuels, in view of the fact that biofuels can be produced from a variety of crops at different costs across the APEC region. 3.9 Asia Pacific Energy Research Centre (APERC) The Asia Pacific Energy Research Centre (APERC) was established in 1996 in Tokyo, as an affiliate of the Institute of Energy Economics, Japan (IEEJ), following the directive of APEC Economic Leaders in the Osaka Action Agenda. The Government of Japan agreed to host and finance the Centre Objective The primary objective of APERC is to conduct research to foster understanding amongst APEC economies of global, regional and domestic energy demand and supply trends, energy infrastructure development, energy regulatory reform and related policy issues. APERC also seeks to enhance the energy research capability of APEC economies through know-how transfer and maintains an energy database of the region Role APERC advocates rational energy policy formulation and enhances capacity building in energy research in the region, following APEC's Non-binding Energy Policy Principles for furthering energy security, economic growth, and environmental quality. The main areas of APERC s activities are as follows: produce an APEC energy demand and supply outlook every two years; conduct research on regional energy market developments, energy policies and related issues; promote the transfer of energy research know-how to APEC members; maintain an energy database of the region through networking with APEC members; co-operate with APEC members in implementing the Energy Working Group s energy policy initiatives. 18