Transcript APEC Biofuels Task Force Draft Terms of Reference

APEC Biofuels Task Force
Draft Terms of Reference
In Gyeongju (October 2005)
APEC Energy Ministers…
“agreed that effective responses to high
and increasingly volatile oil prices require a
broad range of supply and demand-side
measures…including vehicle fuel efficiency
and alternative transport fuels”
directed the APEC Energy Working Group
to “develop practical measures to enhance
cooperation supporting the development of
alternative transport fuels, including the
establishment of a Biofuels Task Force.”
Biofuels Task Force should report to
energy ministers in May 2007 on:
Biofuel Economics (cost of ethanol vs.
petrol and biodiesel vs. diesel)
Biofuel Infrastructure (cost and time to
build biofuel filling station network)
Fuel-Flexible Vehicles (practical path
of uptake into the automobile market)
Biofuel Resources (current and
potential availability of feedstocks)
Biofuel Trade Opportunities
Biofuel Economics
Studies show biofuels can compete at
crude oil prices over $50 per barrel.
Several APEC economies have set
ambitious biofuel targets.
TF can build consensus on cost paths
of biofuels as technology improves,
ability to compete with traditional fuel.
Agreed results can be disseminated
to leaders, policymakers and public.
Biofuel Infrastructure
Ethanol and other biofuels require
modifications to filling stations.
Decisions about where and when to
modify infrastructure can thus affect
pace of biofuel market penetration.
TF can assess costs of adapting
infrastructure to biofuels, evaluate
strategies for infrastructure adaptation.
Fuel-Flexible Vehicles
Cars and trucks can be made to run
on E85 (85% ethanol) at very low cost
(recently estimated at US$30/vehicle).
Accelerated uptake of fuel-flexible
vehicles can enhance our ability to
switch away from oil when prices are
high and reduce oil price volatility.
TF can look at policy options to
accelerate uptake of FFVs and
potential impacts on oil demand.
Biofuel Resources
The potential to displace oil use with
biofuels produced from agricultural
and forest resources is substantial.
There are resource tradeoffs between
biofuels and other uses, notably food.
Resource tradeoffs can be eased by
new cellulosic production techniques.
TF can help identify the current and
potential biofuel resource base and
implications for lower oil dependency.
Biofuel Trade Opportunities
Biofuels are produced from many
different crops in many different
places at widely divergent costs.
Cost differentials can mean big trade
opportunities in the APEC region as
biofuel markets grow over time.
TF can examine biofuel trade patterns
and assess potential benefits for
growth in GDP and employment.