1 / 20

The Energy Charter and Energy Efficiency

The Energy Charter and Energy Efficiency. Dario Chello Director, Energy Efficiency and Investment Energy Charter Secretariat dario.chello @encharter.org 29 October 2008. What is the Energy Charter Process?. Energy Charter Treaty Strengthen rule-of-law on energy issues

grant
Download Presentation

The Energy Charter and Energy Efficiency

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Energy Charter and Energy Efficiency Dario Chello Director, Energy Efficiency and Investment Energy Charter Secretariat dario.chello@encharter.org 29 October 2008

  2. 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

  3. Four Pillars of the Energy Charter Treaty • Investment Protection • 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

  4. Energy Charter Process • Energy Charter Conference - the governing and decision-making body for the Energy Charter Process • 51 Signatory Countries represent: • Around 40% of global GDP • Around 40% of global gas production • Around 25% of global oil production

  5. Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA) • Formulate and implement EE strategies and policies • Create appropriate legal, regulatory and institutional frameworks • Develop, implement, and update EE programmes • Encourage new approaches of financing EE • Co-operate internationally and assist each other

  6. 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

  7. PEEREA Activities – monitoring and supporting achievement of commitments • Regular reviews Albania 2007, Russian Federation 2007, Bosnia & Herzegovina 2008, Italy 2008, Ukraine 2008 • 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

  8. Progress and Challenges: Institutional and Policy Framework EE in Buildings EE in Appliances District Heating and Cogeneration Challenges: Transport Using KP Mechanisms Financing Integrating EE and RE Delivering Energy Efficiency

  9. PEEREA Support Activities • Advice support to governments (in-depth review recommendations) • Analytical reports and policy papers • Discussions and exchange of experience in the PEEREA Working Group (panel discussions, round table, good practices dissemination) • Invited presentations by relevant institutions (EU Commission, IEA, UNFCCC, EBRD, UNECE …) • Dissemination of information

  10. 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

  11. 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

  12. 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

  13. What is needed? • Underlying investment framework • Energy Efficiency Institutional Framework • Well-targeted Programs • Enhanced International Cooperation

  14. Strong underlying investment framework • EE investments still investments • Financial situation means less “easy money” • Pricing • Energy Charter Framework exists and is working • Energy Charter Treaty contains comprehensive dispute settlement mechanisms

  15. Strong EE Institutional Framework • Government EE Organisations • Dedicated, stable • Links with other government agencies (incl. transport) • Active cooperation with industry • Links with regions • Strategy and Action plans • Targets and timelines • Short- and long-term • Realistic funding (maybe dedicated funding) • Clear roles for EE and RE • Legislation • Priority for EE clearly stated • Responsibilities clear and effective • Monitoring and review • Accurate and transparent assessment • Balance precision with stability

  16. Well-targeted programs • 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

  17. Enhanced International Cooperation • Sharing of Information and Experience Examples: IEA, PEEREA • Joint projects Examples: APEC-ESIS • Global frameworks Examples: UNFCCC, Energy Charter • International Finance Examples: Development Banks, EE21

  18. The future of PEEREA PEEREA has supported effective action…. • Improved understanding and sharing among members • Rapid institutional and policy progress in many transition countries …but more needs to be done • Coverage • Certainty • Speed

  19. Promoting Investment in EE Investment Framework EE Institutions Targeted Programs International Cooperation

  20. Thank You! dario.chello@encharter.org Energy Charter Secretariat www.encharter.org

More Related