International Policy on Energy Efficiency: Synergy or Crossed Wires?

1. International Policy on Energy Efficiency: Synergy or Crossed Wires? The U.S. Chamber of Commerce Emerging Technologies Committee Norine Kennedy, USCIB

2. International Energy Efficiency (E/e) • Why Care? • Challenges (with brief examples) • ICC : International Energy Efficiency Paper • What Next? Norine Kennedy, USCIB

3. International Energy Policy @ USCIB • Role: Unique international advocacy group for U.S. Business • 300 members – cos., assocs., law firms (including U.S. Chamber) Multiple sectors and issues • Affiliations: International Chamber of Commerce (ICC), OECD Business and Industry Advisory Committee (BIAC), International Organization of Employers (IOE) • Environment Committee • Climate Change Working Group • International Energy Group • Co-Leads: Brian P. Flannery, Exxonmobil and Lynn Schloesser, Eastman Chemical • Multisectoral members – producers, transport, consumers • International network via ICC and BIAC • Holistic view: EHS issues, trade, innovation, investment, intellectual property rights, etc. Norine Kennedy, USCIB

4. Why should U.S. business care about internationalE/e policy developments? • A sustainable energy future • Climate change is the indispensable priority, and E/e fundamental to that • Yes, a tremendous amount of repetitive talk – but no denying the progression from “talk shop” to soft law to Hard Law • If international requirements don’t enter through ratification/federal legislation, then via state legislatures, or other national & regional jurisdictions • Not just regulatory = other means, such as labels, standards, procurement, retailer initiatives • Market access, procurement and trade barriers Norine Kennedy, USCIB

5. Energy Efficiency (E/e) at the International Level The Good News: E/e makes business sense Boost competitiveness Exports of new technologies Job creation Mutual recognition/harmonious cooperation vs patchwork quilt The Bad News: Perceived as “low hanging fruit” needing prescriptive approaches Business and government not speaking same language Subsidies and market distortions “Un-integrated” or overly green approaches Mixed Blessings: Sectoral approaches (or silos) Life cycle thinking and product related approaches (“carbon footprint”) Norine Kennedy, USCIB

6. Challenges in International E/e Policy • Multiple fronts • Top down targets increasingly linked to climate change • Product-oriented policy • Lack of international governmental understanding of what drives technological innovation, dissemination and more generally energy investments in global markets Norine Kennedy, USCIB

7. The Challenge: Multiple Fronts for International Policy No international “owner” (bad or good?) UN : Commission on Sustainable Development (CSD); UN Environment Programme (UNEP); UN Development Programme (UNDP); UN Climate Change Convention G8 International Energy Agency (IEA) Regional Intergovernmental Groups: EU APEC Major Economies Meeting Initiative (MEM) Norine Kennedy, USCIB

8. The Challenge: Top Down Approaches to E/e “Top Down” Targets and Approaches UN : Commission on Sustainable Development (CSD); UN Climate Change Treaty G8 IEA : World Energy Investment Outlook Regional Groups : EU Energy policy: - 20% by 2020 (compared to forecasts) APEC: Energy intensity aspirational target –25% by 2030 (2005 base yr) MEM – Long term international objective and role of E/e therein? Norine Kennedy, USCIB

9. EU: Action Plan for E/e (2007-2012) • -20% by 2020 (compared to energy forecasts of 2020) or 1.5% saving per year up to 2020 • Reduce EU impact on climate change and dependence on fossil fuel imports • Directive 2006/32/ec – Guidelines, code of conduct and certification for buildings and appliances • Similar measures foreseen for utilities, transport, and demand side management • The Action Plan provides for adoption of “eco-design” minimum standards to improve the energy yield of 14 groups of products (including boilers, tvs and light fittings) • Efforts to ban incandescent light bulbs (EU proposal, NL, also elsewhere, Australia, California, etc.) Norine Kennedy, USCIB

10. EU: Eco-design of Energy-Using Products (EUP) (Dir 2005/32/EC) Prescriptive “Product Policy” oriented E/e approaches proliferating internationally • EUP encourages manufacturers to design products with environmental impacts in mind • After adoption, the Commission will be able to enact implementing measures on specific products and environmental aspects (including energy consumption) • Synergy with Energy Labelling directive and existing directives on minimum energy efficiency requirements Norine Kennedy, USCIB

11. International Chamber of Commerce (ICC) • ICC represents 1000s of companies in 130 countries • ICC Environment and Energy Commission • ICC E/e Perspective informed by: • Economic Growth and Development • Promoting Innovation and Investment • Scientifically based cost-effective policy and practice • Corporate Responsibility • Fighting Bribery and Corruption Norine Kennedy, USCIB

12. ICC and E/e How is E/e understood and promoted in international policy frameworks? • How to address E/e in the broader context of energy policy (security, pricing, infrastructure) and climate policy? • What drives (or hampers) technological innovation, commercialization, uptake to promote E/e in globalized markets? • What is the role of business vis a vis E/e in societies, and in particular, in developing countries? • How to promote E/e through technological innovations in largest developing countries? Norine Kennedy, USCIB

13. ICC E/e Policy Statement • Importance to suppliers and consumers in globalized markets: consider supply-chain and other commercial connections • E/e makes good business sense: benefits to business and to society • Business has vast experience from strides already made • Importance of long-term investments and the necessary enabling frameworks • Working within free markets • Fostering technological innovation and R&D • Promoting technological cooperation • Integrating e/e with climate change Norine Kennedy, USCIB

14. E/e: Emerging Issues and Opportunities • Energy Access and Security • Energy Management System standards • Product-based/Sustainable Consumption Policies • Carbon Footprint Norine Kennedy, USCIB

15. THANK YOU!! http://www.uscib.org Norine Kennedy, USCIB