Global Energy Security: The Strategic Implications for

Download Report

Transcript Global Energy Security: The Strategic Implications for

1
A Technology-Driven
Framework for Energy and
Climate Policies
Robert Pritchard
Energy Alliance of Australia
APEC Energy Trade and
Investment Task Force
Brunei, November 22, 2010
2
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
 Reduced dependency on Middle East oil
 Phasing out all fossil fuels
 Increased use of coal, natural gas, nuclear
energy, renewables
 Use only renewables and nuclear energy
 Diversification of all sources of supply
 Investment in interchangeability
 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
4
Energy Security: Why Is It Still
So Important?
Supply disruptions pose a national
security risk
 Affordable energy still remains:

essential to maintain our prosperity
 the key enabler of economic growth
 a prerequisite of sustainable
development

5
Increased Energy Security
Risk: What Explains It?

Energy use is a function of:
population growth
 economic growth
 industrialisation and urbanisation


Increase in energy use is occurring at
the same time as oil importers are
increasing their dependence on the
Middle East
6
Growth in Oil Demand
7
Dependency of Major
Economies on Oil Imports
Japan
 Korea
 India
 US
 China

100%
100%
76%
61%
56%
Source: BP Statistical Review 2010
8
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?

9
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 growth
 economic growth
 industrialisation and urbanisation

10
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?

11
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?

12
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

13
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

14
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

15
UNFCCC / Kyoto Framework
Kyoto Temperature Target
Country Emissions Limits
Global Carbon Trading
16
Technology-Driven Framework
Domestic
Incentives,
Subsidies
R & D LowCarbon
Technologies
Cross-Border
Bilateral,
Multilateral,
Scientific
Collaboration
Removal
of Trade
Barriers,
Tariffs
Global
Technology
Deployment
17
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

18
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 winwin-win opportunities (trade,
technologies, emissions reduction)

19
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 lowcarbon categories to WTO

20
WEC’s WTO EG Categories
(1) Energy efficiency
(2) CCS
(3) Renewables
(4) Nuclear
(5) Natural gas generation
(6) Flare gas reduction
21
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

22
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
23
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
24
Summary and Conclusions
contd.
(5) By eliminating tariffs on EGS, the TPP
and WTO can play an effective role in
facilitating global deployment of lowcarbon technologies
(6) Low-carbon technology deployment
provides the common policy thread for
future global policy alignment – this is
our key message to policymakers
25
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

26
Technology-Driven Framework
Domestic
Incentives,
Subsidies
R & D LowCarbon
Technologies
Cross-Border
Bilateral,
Multilateral,
Scientific
Collaboration
Removal
of Trade
Barriers,
Tariffs
Global
Technology
Deployment