Transcript Cross-boundary contract risk management & ECT

The Energy Charter and
Energy Efficiency
Dario Chello
Director, Energy Efficiency and Investment
Energy Charter Secretariat
[email protected]
29 October 2008
1.
What is the Energy Charter
Process?
Energy Charter Treaty
Strengthen rule-of-law on energy issues
 Reduce risk for energy investments and trade
 Promote energy efficiency
Forum
 Government, industry, other stakeholders across Eurasia
 Discuss policies and instruments that can provide a
constructive framework for international energy
cooperation and enhanced energy security
Series of Activities
 To implement principles of the Energy Charter Treaty
 Developed by Secretariat in cooperation with subsidiary
working groups of the Energy Charter Conference and
with the help of the Industry Advisory Panel
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1.
Four Pillars of the Energy Charter
Investment ProtectionTreaty
Creates a stable and supportive business and political
climate for cross-border investments across its
constituency
Trade
 Promotes a well functioning energy market across
borders through guidelines on cross-border trade
Transit
 Facilitates discussion among members of the Charter
constituency on promoting and securing cross-border
energy flows based on the Energy Charter Treaty
Energy Efficiency
 Encourage international cooperation in developing and
implementing energy efficiency strategies and policies 3
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2.
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4.
Energy Charter
Process
 Energy Charter Conference
- the governing and decisionmaking body for the Energy Charter Process
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Signatory Countries represent:
• Around 40% of global GDP
• Around 40% of global gas production
• Around 25% of global oil production
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Protocol on Energy Efficiency and
Related Environmental Aspects
(PEEREA)
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Formulate and implement EE strategies and
policies
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Create appropriate legal, regulatory and
institutional frameworks
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Develop, implement, and update EE programmes
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Encourage new approaches of financing EE
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Co-operate internationally and assist each other
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PEEREA Activities
Review Progress in Member Countries
•In-depth reviews (18 since 1999)
•Regular reviews (60 since 1999)
•Follow-up reviews (6 since 2004)
•Regular updates from Members
« Horizontal » Studies
•20 reports since 1999
Events, information sharing, cooperation
•Esp. IEA, UNECE, UNFCCC
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PEEREA Activities – monitoring and
supporting achievement of commitments
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Regular reviews
Albania 2007, Russian Federation 2007, Bosnia &
Herzegovina 2008, Italy 2008, Ukraine 2008
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In-depth (peer) reviews
Latvia (2007), FYR Macedonia (2007), Bulgaria (2008),
Slovak Republic (2008)
Progress report to the Environment for Europe process
– for Kiev 2003 and Belgrade 2007
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Delivering Energy Efficiency
Progress and Challenges:
Institutional and Policy Framework
EE in Buildings
EE in Appliances
District Heating and Cogeneration
Challenges:
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Transport
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Using KP Mechanisms
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Financing
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Integrating EE and RE
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PEEREA Support Activities
Advice support to governments (in-depth review
recommendations)
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Analytical reports and policy papers
Discussions and exchange of experience in the
PEEREA Working Group (panel discussions, round
table, good practices dissemination)
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Invited presentations by relevant institutions
(EU Commission, IEA, UNFCCC, EBRD, UNECE …)
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Dissemination of information
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How much investment is needed?
UNFCCC “Investment and Financial Flows to Address
Climate Change”, 2007
To return to current emissions levels by 2030, annual
investment of $150 billion in 2030 in EE
• Of this, $60 billion in developing/transition countries
• On top of $400 billion p/y in clean energy supply
IEA “Energy Technology Perspectives 2008”
To halve emissions by 2050 (Blue Scenario)
• $45 trillion in investment to 2050
• 36% of savings from end-use efficiency
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Where will investment come from?
“When considering means to enhance
investment and financial flows to address
climate change in the future, it is important
to focus on the role of private-sector
investment as they constitute the largest
share of investment and financial flows
(86%)”
UNFCCC
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Why is Demand-side EE different?
 Business Framework
• Split incentives
• Not “core business” (e.g. industrial or commercial
operations are not EE businesses)
 Nature of investments
• Often small and scattered
• No obvious revenue stream – baseline problem
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What is needed?
1.Underlying investment framework
2. Energy Efficiency Institutional Framework
3. Well-targeted Programs
4. Enhanced International Cooperation
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1. Strong underlying investment
framework
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EE investments still investments
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Financial situation means less “easy money”
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Pricing
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Energy Charter Framework exists and is working
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Energy Charter Treaty contains comprehensive
dispute settlement mechanisms
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2. Strong EE Institutional Framework
Government EE Organisations
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Dedicated, stable
Links with other government agencies (incl. transport)
Active cooperation with industry
Links with regions
Strategy and Action plans
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Targets and timelines
Short- and long-term
Realistic funding (maybe dedicated funding)
Clear roles for EE and RE
Legislation
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Priority for EE clearly stated
Responsibilities clear and effective
Monitoring and review
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Accurate and transparent assessment
Balance precision with stability
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3. Well-targeted programs
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Commercial and Residential sectors
dominated by mass produced items, so
regulation supported
Industry sector can be more diverse – need
more specific approaches
Transport is often difficult – need a systems
approach
Role for broad measures (e.g. white
certificates, information)
EE on supply side important
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4. Enhanced International
Cooperation
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Sharing of Information and Experience
Examples: IEA, PEEREA
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Joint projects
Examples: APEC-ESIS
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Global frameworks
Examples: UNFCCC, Energy Charter
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International Finance
Examples: Development Banks, EE21
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The future of PEEREA
PEEREA has supported effective action….
A.
B.
Improved understanding and sharing among
members
Rapid institutional and policy progress in many
transition countries
…but more needs to be done
A.
B.
C.
Coverage
Certainty
Speed
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Promoting Investment in EE
Investment
Framework
EE Institutions
Targeted
Programs
International
Cooperation
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Thank You!
[email protected]
Energy Charter Secretariat
www.encharter.org
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