Task XVIII: DSM and Climate Change Task Status Report

1. Task XVIII:DSM and Climate ChangeTask Status Report Dr David Crossley Managing Director Energy Futures Australia Pty Ltd IEA DSM Executive Committee MeetingNew Delhi, India 3 April2008

2. History of Task XVIII (1) • DSM and climate change was first identified as an area for new work at the April 2006 ExCo meeting in Copenhagen • At its October 2006 meeting in Maastricht, the ExCo agreed that a Concept Paper for a DSM and Climate Change Task should be prepared • At that meeting, seven countries indicated that they may be interested in participating: Australia, Belgium, Ireland, Korea, South Africa, United Kingdom and the United States • At the April 2007 meeting in Seoul, the ExCo requested revisions to the Concept Paper and agreed that a Task Definition meeting should be held

3. History of Task XVIII (2) • The Task Definition meeting was held on 9 October 2007 in Brugge, Belgium • Four countries attended the Task Definition meeting: Australia, Belgium, France and Spain, with India attending as an observer • Prospective participants made several suggestions for modifying the design of the DSM and Climate Change Task • These changes were included in the presentation made to the ExCo meeting in Brugge on 11 October 2007

4. History of Task XVIII (3) • At the Brugge ExCo meeting, Australia, France, Finland and Spain declared a positive interest in a DSM and Climate Change Task and Austria, Belgium, Denmark, India, Korea and the United States were to give the Task further consideration • The Executive Committee members unanimously decided to initiate the work on DSM and climate change as IEADSM Task XVIII • At present, four countries have committed to participate in Task XVIII: Australia, France, India and Spain

5. Objectives (1) • To identify circumstances in which DSM may mitigate GHG emissions and in which emissions mitigation programs may deliver benefits to the electricity system • To identify the principles involved in methodologies for assessing the GHG emissions reductions available from specific DSM measures • To identify ways in which DSM programs can be modified so they contribute to mitigating GHG emissions • To identify ways in which GHG emissions mitigation programs can be modified so they deliver benefitsto electricity systems

6. Objectives (2) • To identify opportunities for funding DSM programs with revenue from trading GHG emission reductions • To explore whether use time of use pricing can be used to achieve mitigation of GHG emissions • To identify and engage stakeholders and communicate and disseminate information about DSM as a resource and a mechanism for mitigating GHG emissions

7. Work Plan • Subtask 1: Interactions between DSM and Climate Change • Subtask 2: Principles for Assessing Emissions Reductions from DSM Measures • Subtask 3: Mitigating Emissions and Delivering Electricity System Benefits • Subtask 4: Fungibility (Interchangeability) of DSM and Emissions Trading • Subtask 5: TOU Pricing and Emissions Mitigation • Subtask 6: Communicating Information about DSM and Climate Change

8. Timetable

9. Major Accomplishments Since October (1) • Development of the Task XVIII Legal Annexe. The Operating Agent prepared the document which will form the Task XVIII annexe to the IEA DSM Implementing Agreement. The draft document was circulated to prospective participants for comment. • Establishment of the Task XVIII Website. The Operating Agent established a Task XVIII section as part of the IEA DSM website. The section outlines the objectives and work plan and invites participation in the Task

10. Major Accomplishments Since October (2) • Discussions in the United States. The Operating Agent attended the Energy Efficiency Global Forum held in Washington DC in October. He held discussions about participating in Task XVIII with several parties, including the World Bank. • Participants in Task XVIII. The Operating Agent has followed up the countries that, at the Brugge ExCo meeting, expressed interest in participating in Task XVIII.

11. Work Plan to October 2008 • A meeting of interested countries was held immediately prior to this ExCo meeting in New Delhi • The purpose of the meeting was to review participation and to determine whether Task XVIII can proceed with the existing work plan or whether the work plan should be modified to accommodate a smaller number of participating countries • Participating countries agreed to continue with the existing work plan, with a possible reduction from three to two regional workshops planned under Subtask 6

12. Experts Meetings • The current work plan for Task XVIII envisages that two Experts meetings will be held during the Task • Since Task XVIII is not yet in force, no Experts meetings have yet been planned

13. Financial Report • Since Task XVIII is not yet in force, there have been no receipts or expenditure in relation to the Task • No payment has been made to the Operating Agent for his work on the development of the Task

14. ExCo Issues • The ExCo should request countries to confirm their participation in Task XVIII • The ExCo is then requested to declare Task XVIII to be in force