apec's greener energy outlook

5
IOP Conference Series: Earth and Environmental Science OPEN ACCESS APEC's greener energy outlook To cite this article: A M Isa and R D Samuelson 2013 IOP Conf. Ser.: Earth Environ. Sci. 16 012124 View the article online for updates and enhancements. You may also like HIGH-RESOLUTION X-RAY SPECTROSCOPY OF THE EVOLVING SHOCK IN THE 2006 OUTBURST OF RS OPHIUCHI J.-U. Ness, J. J. Drake, S. Starrfield et al. - DEEP CHANDRA OBSERVATIONS OF THE EXTENDED GAS SLOSHING SPIRAL IN A2029 R. Paterno-Mahler, E. L. Blanton, S. W. Randall et al. - ABUNDANCE PATTERNS IN THE INTERSTELLAR MEDIUM OF EARLY- TYPE GALAXIES OBSERVED WITH SUZAKU Saori Konami, Kyoko Matsushita, Ryo Nagino et al. - This content was downloaded from IP address 58.122.165.153 on 22/11/2021 at 08:29

Upload: others

Post on 09-Feb-2022

1 views

Category:

Documents


0 download

TRANSCRIPT

IOP Conference Series Earth and Environmental Science

OPEN ACCESS

APECs greener energy outlookTo cite this article A M Isa and R D Samuelson 2013 IOP Conf Ser Earth Environ Sci 16 012124

View the article online for updates and enhancements

You may also likeHIGH-RESOLUTION X-RAYSPECTROSCOPY OF THE EVOLVINGSHOCK IN THE 2006 OUTBURST OF RSOPHIUCHIJ-U Ness J J Drake S Starrfield et al

-

DEEP CHANDRA OBSERVATIONS OFTHE EXTENDED GAS SLOSHINGSPIRAL IN A2029R Paterno-Mahler E L Blanton S WRandall et al

-

ABUNDANCE PATTERNS IN THEINTERSTELLAR MEDIUM OF EARLY-TYPE GALAXIES OBSERVED WITHSUZAKUSaori Konami Kyoko Matsushita RyoNagino et al

-

This content was downloaded from IP address 58122165153 on 22112021 at 0829

APECrsquos greener energy outlook

A M Isa R D Samuelson

Asia Pacific Energy Research Centre The Institute of Energy Economics Japan

Inui Building Kachidoki 11F 1-13-1 Kachidoki Chuo-ku Tokyo 104-0054 Japan

E-mail aishahapercieejorjp

Abstract The APEC member economies combined accounts for more than 50 of the worldrsquos

GDP and consume almost 60 of the worldrsquos energy Under the 2011 Honolulu Declaration

APEC Leaders have set an aspirational goal to reduce APECrsquos aggregate energy intensity by 45

percent by 2035 compared to 2005 levels This article summarises the results from an APEC-wide study on APEC energy demand and supply outlook from 2010 to 2035 Our business-as-usual

projections show that by 2035 APEC energy demand will have increased by 40 of 2010 levels

We also found that historical trends for declining energy intensity will continue and that APEC

will likely achieve its aspirational intensity reduction goal However our results also suggest that

CO2 emissions will continue to rise and energy security will become less assured Recognizing

these vulnerabilities APEC has already initiated a broad range of activities to achieve its lsquogreen

growthrsquo objectives While these have been fairly successful in guiding APEC economies towards a

path of more sustainable development these efforts will need to be intensified further to avoid

serious environmental degradation

1 Asia-Pacific Economic Cooperation (APEC)

Asia-Pacific Economic Cooperation or APEC is a multi-lateral organization established in 1989 with the

vision of achieving stability security and prosperity for the region by reducing barriers to trade and investment facilitating the exchange of goods services resources and technical know-how and

strengthening economic and technical cooperation APEC operates on the basis of non-binding

commitments open dialogue and equal respect for the views of all participants All decisions made within

APEC are reached by consensus and commitments are undertaken on a voluntary basis There are currently 21 member economies all from regions bordering the Pacific Ocean namely

Australia Brunei Darussalam Canada Chile China Hong Kong China Indonesia Japan Korea

Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russia Singapore Chinese Taipei Thailand United States and Viet Nam

In 2010 APEC member economies collectively had real GDP in purchasing power parity terms of

$358 trillion (about 53 of world GDP and a population of over 27 billion people (about 40 of world population) [1] In terms of energy out of the 8 316 Million tonnes of oil equivalent (Mtoe) of final

energy consumed worldwide in 2009 about 56 was consumed in the APEC region [2]

All indicators point to further rise in APEC energy demand This thirst for energy will have

significant consequences regionally and globally not just on the energy markets but also on geopolitics finances and the environment This makes energy cooperation an important APEC agenda item APEC

Leaders are committed to addressing the regionrsquos economic and environmental challenges by speeding

the transition toward a global low-carbon economy in a way that enhances energy security and creates new sources of economic growth and employment

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

Content from this work may be used under the terms of the Creative Commons Attribution 30 licence Any further distributionof this work must maintain attribution to the author(s) and the title of the work journal citation and DOI

Published under licence by IOP Publishing Ltd 1

2 The APEC energy supply and demand outlook

To foster a common understanding on regional energy issues the APEC Leaders under the Osaka Action Agenda established the Asia-Pacific Energy Research Centre (APERC) tasked with conducting research

on the APEC regional outlook energy market developments and energy policy issues APERCrsquos flagship

project is the APEC Energy Demand and Supply Outlook project which is a long-term projection of energy supply and demand trends in APEC member economies and provides a statistically supported

review of opportunities and challenges facing the APEC economies individually and as a region The

fifth cycle of the Outlook project has just been successfully completed and the final report was published

online in February 2013 This article presents some of the results and key findings from the APEC Energy Demand and Supply Outlook-5th Edition business-as-usual (BAU) scenario

Historically the past two decades have seen explosive growth in APECrsquos GDP This trend of rapid

growth is likely to continue in developing member economies particularly developing Asian economies like China Indonesia and Viet Nam In developed economies more moderate trends are expected

Combined APEC as a whole will see about 4 GDP growth annually (See Figure 1) Under our BAU

assumptions population growth will be much slower at 04 annually from 2010-2035 almost half of the 07 annual growth from 1990-2010 The continuing economic and population growth will drive energy

demand in the future as can be seen in Figure 2

0

500

1 000

1 500

2 000

2 500

3 000

3 500

0

20 000

40 000

60 000

80 000

100 000

120 000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Po

pu

lati

on

(M

illio

n)

Re

al G

DP

(2

005

Bil

lio

n U

SD

PP

P) Population

GDP

0

2000

4000

6000

8000

10000

12000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Mil

lio

n T

on

nes

of O

il E

qu

ival

en

t (M

TOE)

Primary Energy Supply

Final Energy Demand

Figure 1 APEC Macroeconomic Trends

1990-2035 [2][3]

Figure 2 APEC Energy Trends

1990-2035 [2][3]

In 2009 APECrsquos final energy demand amounted to 4640 Mtoe The breakdown for final energy

consumption by sector is shown in Figure 3(a) and breakdown by fuel is shown in Figure 3(b) Fossil

fuels (coal gas and oil) dominated the fuel mix for both the final demand and primary supply mix in 2009

(Figure 3) and based on our analysis this trend will continue in the long-term (Figure 4) (a) Final Demand by Sector 2009 (b) Final Demand by Fuel 2009 (c) Primary Supply by Fuel 2009

Industry31

Domestic Transport

25

Residential Commercial

and Agriculture

34

Non-Energy Use

10

Coal14

Oil40

Gas14

NRE9

Electricity19

Heat4

Coal35

Oil30

Gas20

Hydro2 NRE

7

Nuclear

6

Figure 3 Structure of APEC Energy Demand and Supply 2009 [2]

The good news is that while fossil fuels will still be the fuel of choice in the future concern for

environmental sustainability and energy security will see economies opting for cleaner fossil fuel

applications and implementing more energy efficiency and conservation measures to moderate energy

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

2

demand growth As a result the APEC-wide aspirational goal of 45 reduction in energy intensity by

2035 will probably be met The bad news is that BAU is still environmentally unsustainable ndashtotal CO2 emissions from fossil fuel combustion aggregated from 2010 to 2035 is projected to reach 575 billion

tonnes of CO2 equivalent to 32 increase (Figure 5) This is the opposite of what we should be striving

for which is a reduction in CO2 emissions [4] Therefore there is still much room for improvement if we are to prevent the damaging impacts of climate change

0

2000

4000

6000

8000

10000

12000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

MT

OE

Coal Oil Gas Renewable Energy Nuclear Electricity-Net Import

0

5 000

10 000

15 000

20 000

25 000

30 000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Mil

lio

n T

on

nes C

O2

Electricity Generation Other TransformationIndustry Residential Commercial and TransportDomestic Transport International Transport

Figure 4Primary Energy Supply by Fuel

1990-2035 [2][3]

Figure 5CO2 Emissions by Sector

1990-2035 [2][3]

There are basically three methods for reducing CO2 emissions using less energy (through energy

efficiency and conservation methods) capturing and sequestration of CO2 and switching to less-carbon-

intensive energy sources like nuclear and renewable energy Our analysis of government policies after the Fukushima Nuclear Accident of March 2011 show that while several APEC economies have reassessed

their original policies for nuclear power deployment over the long-term nuclear energy will continue to

play a modest but important role in the APEC electricity generation mix Most economies with existing

nuclear power plants like China are continuing operations but under much more stringent safety rules and review mechanisms These same upgrades to safety standards combined with negative public

perceptions and increasing construction cost will necessarily cause some delays and scaling back of new

nuclear power plant development in the region Renewable energy development on the other hand will likely undergo explosive growth in the

coming years driven by supportive government policies and technical improvements which continue to

reduce cost and improve system performance We expect total primary energy supply from renewable energy sources to increase by about 53 from 2010 to 2035 with significant introduction of wind and

solar power generation (almost 500 growth in total renewable energy capacity from 2010 to 2035) bio-

fuels in the transport sector (about 130 growth in total bio-fuels use from 2010 to 2035) and commercial

bio-energy in the residential commercial and agricultural sector At the same time with growing affluence and better access to commercial energy use of traditional residential biomass will probably

decline

3 APEC lsquogreen growthrsquo strategies Recognizing the importance of protecting the environment and managing energy resources APEC

Leaders have consistently included sustainable development as part of the APEC agenda since 1993 This

issue became a key focus in the 2011 Honolulu Leader Declaration in which APEC Leaders committed

to advancing the shared lsquogreen growthrsquo objectives APEC defines lsquogreen growthrsquo as environmentally sustainable economic growth and development which help economies to successfully transition to a clean

energy future APEC has introduced several lsquogreen growthrsquo strategies including

APEC economies will aspire to reduce APECrsquos aggregate energy intensity by 45 percent by 2035

compared to 2005 levels This target established in the 2011 Honolulu Declaration is an upward revision from the 2007 Sydney Declaration goal of 25 percent reduction [1] To assist economies in

developing their energy efficiency policies two mechanisms are being implemented ndash the Peer

Review for Energy Efficiency (PREE) mechanism in which economies invite a team of experts to

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

3

analyse their policies and provide objective feedback and the Cooperative Energy Efficiency Design

for Sustainability (CEEDS) mechanism in which interested economies participate in knowledge-sharing and capacity building workshops on improving energy efficiencies in selected sectors [3]

APEC also has a dedicated Expert Group on Energy Efficiency and Conservation (EGEEampC) that

promotes energy conservation and the application of energy efficiency practices and technologies in the APEC region This includes maintaining the APEC Energy Standards Information System

(APEC-ESIS) database that provides up-to-date information about energy efficiency standards and

labelling that apply to products in the APEC region [5]

Reduce applied tariff rates on environmental goods and services It is expected that the lower tariff

rates will decrease cost and thus facilitate deployment across the region

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption while

recognizing the importance of providing those in need with essential energy services Realizing that

inadequate information about existing subsidies is frequently an impediment to reform APEC

Leaders have agreed to continue building regional capacity for the reform of subsidies and initiated an annual voluntary report mechanism to assess the progress of reforms in each APEC economy [1]

Promote technology development and deployment of low-emission energy supply This will be

facilitated through economic and technical cooperation between member economies and capacity

building activities by APEC organizations Some examples of cooperation are the Biofuels Task Force analyzing the issues related to the introduction of biofuels in APEC economies the APEC

Expert Group on New and Renewable Energy Technologies (EGNRET) that promotes activities and

implements projects that facilitates the use of new and renewable energy technologies in the APEC

region and the Peer Review on Low Carbon Energy Supply (PRLCE) mechanism that is focused on identifying and overcoming barriers to introducing Low Carbon Energy Supply in a host economy

Promote the creation of low-carbon communities in the region Under this initiative APEC aims to

provide a guiding principle on how to define and develop a low-carbon town that successfully

integrates the use of smart grids renewable energy and energy efficient technologies to mitigate rapidly growing energy demand in urban areas and thus reduce fossil fuel consumption The first low-

carbon model town case study was the Yujiapu Central Business District project in China

4 The way forward The lsquogreen growthrsquo strategies being implemented have prompted APEC economies to pursue a more

sustainable economic development pathway Since 2007 several energy efficiency initiatives have been

introduced particularly for appliances buildings industry and transport At the same time energy

supplies have gradually become more diversified Our business-as-usual analysis shows that with the current policies in place APEC economies will likely be able to meet the APEC wide energy intensity

reduction goal however the projected increase in CO2 emissions remains a threat to environmental

sustainability Therefore APEC economies are strongly urged to intensify efforts to meet this challenge in its quest for a clean energy future APEC as an organization can assist in these efforts through the

sharing of best practices conducting voluntary peer reviews and supporting the education and capacity

development for managing climate change challenges in the region

References [1] APEC 2013 Asia Pacific Economic Cooperation at httpwwwapecorg

[2] International Energy Agency 2012 World Energy Statistics 2011 retrieved from OECDIEA CD-

ROM Service [3] APERC 2013 Asia Pacific Energy Research Centre at httpapercieejorjp

[4] Intergovernmental Panel on Climate Change 2007 Climate Change 2007 Synthesis Report retrieved

from wwwipccchpublications_and_dataar4syrencontentshtml [5] APEC 2013 About APEC-ESIS httpwwwapec-esisorg

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

4

APECrsquos greener energy outlook

A M Isa R D Samuelson

Asia Pacific Energy Research Centre The Institute of Energy Economics Japan

Inui Building Kachidoki 11F 1-13-1 Kachidoki Chuo-ku Tokyo 104-0054 Japan

E-mail aishahapercieejorjp

Abstract The APEC member economies combined accounts for more than 50 of the worldrsquos

GDP and consume almost 60 of the worldrsquos energy Under the 2011 Honolulu Declaration

APEC Leaders have set an aspirational goal to reduce APECrsquos aggregate energy intensity by 45

percent by 2035 compared to 2005 levels This article summarises the results from an APEC-wide study on APEC energy demand and supply outlook from 2010 to 2035 Our business-as-usual

projections show that by 2035 APEC energy demand will have increased by 40 of 2010 levels

We also found that historical trends for declining energy intensity will continue and that APEC

will likely achieve its aspirational intensity reduction goal However our results also suggest that

CO2 emissions will continue to rise and energy security will become less assured Recognizing

these vulnerabilities APEC has already initiated a broad range of activities to achieve its lsquogreen

growthrsquo objectives While these have been fairly successful in guiding APEC economies towards a

path of more sustainable development these efforts will need to be intensified further to avoid

serious environmental degradation

1 Asia-Pacific Economic Cooperation (APEC)

Asia-Pacific Economic Cooperation or APEC is a multi-lateral organization established in 1989 with the

vision of achieving stability security and prosperity for the region by reducing barriers to trade and investment facilitating the exchange of goods services resources and technical know-how and

strengthening economic and technical cooperation APEC operates on the basis of non-binding

commitments open dialogue and equal respect for the views of all participants All decisions made within

APEC are reached by consensus and commitments are undertaken on a voluntary basis There are currently 21 member economies all from regions bordering the Pacific Ocean namely

Australia Brunei Darussalam Canada Chile China Hong Kong China Indonesia Japan Korea

Malaysia Mexico New Zealand Papua New Guinea Peru Philippines Russia Singapore Chinese Taipei Thailand United States and Viet Nam

In 2010 APEC member economies collectively had real GDP in purchasing power parity terms of

$358 trillion (about 53 of world GDP and a population of over 27 billion people (about 40 of world population) [1] In terms of energy out of the 8 316 Million tonnes of oil equivalent (Mtoe) of final

energy consumed worldwide in 2009 about 56 was consumed in the APEC region [2]

All indicators point to further rise in APEC energy demand This thirst for energy will have

significant consequences regionally and globally not just on the energy markets but also on geopolitics finances and the environment This makes energy cooperation an important APEC agenda item APEC

Leaders are committed to addressing the regionrsquos economic and environmental challenges by speeding

the transition toward a global low-carbon economy in a way that enhances energy security and creates new sources of economic growth and employment

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

Content from this work may be used under the terms of the Creative Commons Attribution 30 licence Any further distributionof this work must maintain attribution to the author(s) and the title of the work journal citation and DOI

Published under licence by IOP Publishing Ltd 1

2 The APEC energy supply and demand outlook

To foster a common understanding on regional energy issues the APEC Leaders under the Osaka Action Agenda established the Asia-Pacific Energy Research Centre (APERC) tasked with conducting research

on the APEC regional outlook energy market developments and energy policy issues APERCrsquos flagship

project is the APEC Energy Demand and Supply Outlook project which is a long-term projection of energy supply and demand trends in APEC member economies and provides a statistically supported

review of opportunities and challenges facing the APEC economies individually and as a region The

fifth cycle of the Outlook project has just been successfully completed and the final report was published

online in February 2013 This article presents some of the results and key findings from the APEC Energy Demand and Supply Outlook-5th Edition business-as-usual (BAU) scenario

Historically the past two decades have seen explosive growth in APECrsquos GDP This trend of rapid

growth is likely to continue in developing member economies particularly developing Asian economies like China Indonesia and Viet Nam In developed economies more moderate trends are expected

Combined APEC as a whole will see about 4 GDP growth annually (See Figure 1) Under our BAU

assumptions population growth will be much slower at 04 annually from 2010-2035 almost half of the 07 annual growth from 1990-2010 The continuing economic and population growth will drive energy

demand in the future as can be seen in Figure 2

0

500

1 000

1 500

2 000

2 500

3 000

3 500

0

20 000

40 000

60 000

80 000

100 000

120 000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Po

pu

lati

on

(M

illio

n)

Re

al G

DP

(2

005

Bil

lio

n U

SD

PP

P) Population

GDP

0

2000

4000

6000

8000

10000

12000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Mil

lio

n T

on

nes

of O

il E

qu

ival

en

t (M

TOE)

Primary Energy Supply

Final Energy Demand

Figure 1 APEC Macroeconomic Trends

1990-2035 [2][3]

Figure 2 APEC Energy Trends

1990-2035 [2][3]

In 2009 APECrsquos final energy demand amounted to 4640 Mtoe The breakdown for final energy

consumption by sector is shown in Figure 3(a) and breakdown by fuel is shown in Figure 3(b) Fossil

fuels (coal gas and oil) dominated the fuel mix for both the final demand and primary supply mix in 2009

(Figure 3) and based on our analysis this trend will continue in the long-term (Figure 4) (a) Final Demand by Sector 2009 (b) Final Demand by Fuel 2009 (c) Primary Supply by Fuel 2009

Industry31

Domestic Transport

25

Residential Commercial

and Agriculture

34

Non-Energy Use

10

Coal14

Oil40

Gas14

NRE9

Electricity19

Heat4

Coal35

Oil30

Gas20

Hydro2 NRE

7

Nuclear

6

Figure 3 Structure of APEC Energy Demand and Supply 2009 [2]

The good news is that while fossil fuels will still be the fuel of choice in the future concern for

environmental sustainability and energy security will see economies opting for cleaner fossil fuel

applications and implementing more energy efficiency and conservation measures to moderate energy

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

2

demand growth As a result the APEC-wide aspirational goal of 45 reduction in energy intensity by

2035 will probably be met The bad news is that BAU is still environmentally unsustainable ndashtotal CO2 emissions from fossil fuel combustion aggregated from 2010 to 2035 is projected to reach 575 billion

tonnes of CO2 equivalent to 32 increase (Figure 5) This is the opposite of what we should be striving

for which is a reduction in CO2 emissions [4] Therefore there is still much room for improvement if we are to prevent the damaging impacts of climate change

0

2000

4000

6000

8000

10000

12000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

MT

OE

Coal Oil Gas Renewable Energy Nuclear Electricity-Net Import

0

5 000

10 000

15 000

20 000

25 000

30 000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Mil

lio

n T

on

nes C

O2

Electricity Generation Other TransformationIndustry Residential Commercial and TransportDomestic Transport International Transport

Figure 4Primary Energy Supply by Fuel

1990-2035 [2][3]

Figure 5CO2 Emissions by Sector

1990-2035 [2][3]

There are basically three methods for reducing CO2 emissions using less energy (through energy

efficiency and conservation methods) capturing and sequestration of CO2 and switching to less-carbon-

intensive energy sources like nuclear and renewable energy Our analysis of government policies after the Fukushima Nuclear Accident of March 2011 show that while several APEC economies have reassessed

their original policies for nuclear power deployment over the long-term nuclear energy will continue to

play a modest but important role in the APEC electricity generation mix Most economies with existing

nuclear power plants like China are continuing operations but under much more stringent safety rules and review mechanisms These same upgrades to safety standards combined with negative public

perceptions and increasing construction cost will necessarily cause some delays and scaling back of new

nuclear power plant development in the region Renewable energy development on the other hand will likely undergo explosive growth in the

coming years driven by supportive government policies and technical improvements which continue to

reduce cost and improve system performance We expect total primary energy supply from renewable energy sources to increase by about 53 from 2010 to 2035 with significant introduction of wind and

solar power generation (almost 500 growth in total renewable energy capacity from 2010 to 2035) bio-

fuels in the transport sector (about 130 growth in total bio-fuels use from 2010 to 2035) and commercial

bio-energy in the residential commercial and agricultural sector At the same time with growing affluence and better access to commercial energy use of traditional residential biomass will probably

decline

3 APEC lsquogreen growthrsquo strategies Recognizing the importance of protecting the environment and managing energy resources APEC

Leaders have consistently included sustainable development as part of the APEC agenda since 1993 This

issue became a key focus in the 2011 Honolulu Leader Declaration in which APEC Leaders committed

to advancing the shared lsquogreen growthrsquo objectives APEC defines lsquogreen growthrsquo as environmentally sustainable economic growth and development which help economies to successfully transition to a clean

energy future APEC has introduced several lsquogreen growthrsquo strategies including

APEC economies will aspire to reduce APECrsquos aggregate energy intensity by 45 percent by 2035

compared to 2005 levels This target established in the 2011 Honolulu Declaration is an upward revision from the 2007 Sydney Declaration goal of 25 percent reduction [1] To assist economies in

developing their energy efficiency policies two mechanisms are being implemented ndash the Peer

Review for Energy Efficiency (PREE) mechanism in which economies invite a team of experts to

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

3

analyse their policies and provide objective feedback and the Cooperative Energy Efficiency Design

for Sustainability (CEEDS) mechanism in which interested economies participate in knowledge-sharing and capacity building workshops on improving energy efficiencies in selected sectors [3]

APEC also has a dedicated Expert Group on Energy Efficiency and Conservation (EGEEampC) that

promotes energy conservation and the application of energy efficiency practices and technologies in the APEC region This includes maintaining the APEC Energy Standards Information System

(APEC-ESIS) database that provides up-to-date information about energy efficiency standards and

labelling that apply to products in the APEC region [5]

Reduce applied tariff rates on environmental goods and services It is expected that the lower tariff

rates will decrease cost and thus facilitate deployment across the region

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption while

recognizing the importance of providing those in need with essential energy services Realizing that

inadequate information about existing subsidies is frequently an impediment to reform APEC

Leaders have agreed to continue building regional capacity for the reform of subsidies and initiated an annual voluntary report mechanism to assess the progress of reforms in each APEC economy [1]

Promote technology development and deployment of low-emission energy supply This will be

facilitated through economic and technical cooperation between member economies and capacity

building activities by APEC organizations Some examples of cooperation are the Biofuels Task Force analyzing the issues related to the introduction of biofuels in APEC economies the APEC

Expert Group on New and Renewable Energy Technologies (EGNRET) that promotes activities and

implements projects that facilitates the use of new and renewable energy technologies in the APEC

region and the Peer Review on Low Carbon Energy Supply (PRLCE) mechanism that is focused on identifying and overcoming barriers to introducing Low Carbon Energy Supply in a host economy

Promote the creation of low-carbon communities in the region Under this initiative APEC aims to

provide a guiding principle on how to define and develop a low-carbon town that successfully

integrates the use of smart grids renewable energy and energy efficient technologies to mitigate rapidly growing energy demand in urban areas and thus reduce fossil fuel consumption The first low-

carbon model town case study was the Yujiapu Central Business District project in China

4 The way forward The lsquogreen growthrsquo strategies being implemented have prompted APEC economies to pursue a more

sustainable economic development pathway Since 2007 several energy efficiency initiatives have been

introduced particularly for appliances buildings industry and transport At the same time energy

supplies have gradually become more diversified Our business-as-usual analysis shows that with the current policies in place APEC economies will likely be able to meet the APEC wide energy intensity

reduction goal however the projected increase in CO2 emissions remains a threat to environmental

sustainability Therefore APEC economies are strongly urged to intensify efforts to meet this challenge in its quest for a clean energy future APEC as an organization can assist in these efforts through the

sharing of best practices conducting voluntary peer reviews and supporting the education and capacity

development for managing climate change challenges in the region

References [1] APEC 2013 Asia Pacific Economic Cooperation at httpwwwapecorg

[2] International Energy Agency 2012 World Energy Statistics 2011 retrieved from OECDIEA CD-

ROM Service [3] APERC 2013 Asia Pacific Energy Research Centre at httpapercieejorjp

[4] Intergovernmental Panel on Climate Change 2007 Climate Change 2007 Synthesis Report retrieved

from wwwipccchpublications_and_dataar4syrencontentshtml [5] APEC 2013 About APEC-ESIS httpwwwapec-esisorg

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

4

2 The APEC energy supply and demand outlook

To foster a common understanding on regional energy issues the APEC Leaders under the Osaka Action Agenda established the Asia-Pacific Energy Research Centre (APERC) tasked with conducting research

on the APEC regional outlook energy market developments and energy policy issues APERCrsquos flagship

project is the APEC Energy Demand and Supply Outlook project which is a long-term projection of energy supply and demand trends in APEC member economies and provides a statistically supported

review of opportunities and challenges facing the APEC economies individually and as a region The

fifth cycle of the Outlook project has just been successfully completed and the final report was published

online in February 2013 This article presents some of the results and key findings from the APEC Energy Demand and Supply Outlook-5th Edition business-as-usual (BAU) scenario

Historically the past two decades have seen explosive growth in APECrsquos GDP This trend of rapid

growth is likely to continue in developing member economies particularly developing Asian economies like China Indonesia and Viet Nam In developed economies more moderate trends are expected

Combined APEC as a whole will see about 4 GDP growth annually (See Figure 1) Under our BAU

assumptions population growth will be much slower at 04 annually from 2010-2035 almost half of the 07 annual growth from 1990-2010 The continuing economic and population growth will drive energy

demand in the future as can be seen in Figure 2

0

500

1 000

1 500

2 000

2 500

3 000

3 500

0

20 000

40 000

60 000

80 000

100 000

120 000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Po

pu

lati

on

(M

illio

n)

Re

al G

DP

(2

005

Bil

lio

n U

SD

PP

P) Population

GDP

0

2000

4000

6000

8000

10000

12000

19

90

19

95

20

00

20

05

20

10

20

15

20

20

20

25

20

30

20

35

Mil

lio

n T

on

nes

of O

il E

qu

ival

en

t (M

TOE)

Primary Energy Supply

Final Energy Demand

Figure 1 APEC Macroeconomic Trends

1990-2035 [2][3]

Figure 2 APEC Energy Trends

1990-2035 [2][3]

In 2009 APECrsquos final energy demand amounted to 4640 Mtoe The breakdown for final energy

consumption by sector is shown in Figure 3(a) and breakdown by fuel is shown in Figure 3(b) Fossil

fuels (coal gas and oil) dominated the fuel mix for both the final demand and primary supply mix in 2009

(Figure 3) and based on our analysis this trend will continue in the long-term (Figure 4) (a) Final Demand by Sector 2009 (b) Final Demand by Fuel 2009 (c) Primary Supply by Fuel 2009

Industry31

Domestic Transport

25

Residential Commercial

and Agriculture

34

Non-Energy Use

10

Coal14

Oil40

Gas14

NRE9

Electricity19

Heat4

Coal35

Oil30

Gas20

Hydro2 NRE

7

Nuclear

6

Figure 3 Structure of APEC Energy Demand and Supply 2009 [2]

The good news is that while fossil fuels will still be the fuel of choice in the future concern for

environmental sustainability and energy security will see economies opting for cleaner fossil fuel

applications and implementing more energy efficiency and conservation measures to moderate energy

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

2

demand growth As a result the APEC-wide aspirational goal of 45 reduction in energy intensity by

2035 will probably be met The bad news is that BAU is still environmentally unsustainable ndashtotal CO2 emissions from fossil fuel combustion aggregated from 2010 to 2035 is projected to reach 575 billion

tonnes of CO2 equivalent to 32 increase (Figure 5) This is the opposite of what we should be striving

for which is a reduction in CO2 emissions [4] Therefore there is still much room for improvement if we are to prevent the damaging impacts of climate change

0

2000

4000

6000

8000

10000

12000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

MT

OE

Coal Oil Gas Renewable Energy Nuclear Electricity-Net Import

0

5 000

10 000

15 000

20 000

25 000

30 000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Mil

lio

n T

on

nes C

O2

Electricity Generation Other TransformationIndustry Residential Commercial and TransportDomestic Transport International Transport

Figure 4Primary Energy Supply by Fuel

1990-2035 [2][3]

Figure 5CO2 Emissions by Sector

1990-2035 [2][3]

There are basically three methods for reducing CO2 emissions using less energy (through energy

efficiency and conservation methods) capturing and sequestration of CO2 and switching to less-carbon-

intensive energy sources like nuclear and renewable energy Our analysis of government policies after the Fukushima Nuclear Accident of March 2011 show that while several APEC economies have reassessed

their original policies for nuclear power deployment over the long-term nuclear energy will continue to

play a modest but important role in the APEC electricity generation mix Most economies with existing

nuclear power plants like China are continuing operations but under much more stringent safety rules and review mechanisms These same upgrades to safety standards combined with negative public

perceptions and increasing construction cost will necessarily cause some delays and scaling back of new

nuclear power plant development in the region Renewable energy development on the other hand will likely undergo explosive growth in the

coming years driven by supportive government policies and technical improvements which continue to

reduce cost and improve system performance We expect total primary energy supply from renewable energy sources to increase by about 53 from 2010 to 2035 with significant introduction of wind and

solar power generation (almost 500 growth in total renewable energy capacity from 2010 to 2035) bio-

fuels in the transport sector (about 130 growth in total bio-fuels use from 2010 to 2035) and commercial

bio-energy in the residential commercial and agricultural sector At the same time with growing affluence and better access to commercial energy use of traditional residential biomass will probably

decline

3 APEC lsquogreen growthrsquo strategies Recognizing the importance of protecting the environment and managing energy resources APEC

Leaders have consistently included sustainable development as part of the APEC agenda since 1993 This

issue became a key focus in the 2011 Honolulu Leader Declaration in which APEC Leaders committed

to advancing the shared lsquogreen growthrsquo objectives APEC defines lsquogreen growthrsquo as environmentally sustainable economic growth and development which help economies to successfully transition to a clean

energy future APEC has introduced several lsquogreen growthrsquo strategies including

APEC economies will aspire to reduce APECrsquos aggregate energy intensity by 45 percent by 2035

compared to 2005 levels This target established in the 2011 Honolulu Declaration is an upward revision from the 2007 Sydney Declaration goal of 25 percent reduction [1] To assist economies in

developing their energy efficiency policies two mechanisms are being implemented ndash the Peer

Review for Energy Efficiency (PREE) mechanism in which economies invite a team of experts to

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

3

analyse their policies and provide objective feedback and the Cooperative Energy Efficiency Design

for Sustainability (CEEDS) mechanism in which interested economies participate in knowledge-sharing and capacity building workshops on improving energy efficiencies in selected sectors [3]

APEC also has a dedicated Expert Group on Energy Efficiency and Conservation (EGEEampC) that

promotes energy conservation and the application of energy efficiency practices and technologies in the APEC region This includes maintaining the APEC Energy Standards Information System

(APEC-ESIS) database that provides up-to-date information about energy efficiency standards and

labelling that apply to products in the APEC region [5]

Reduce applied tariff rates on environmental goods and services It is expected that the lower tariff

rates will decrease cost and thus facilitate deployment across the region

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption while

recognizing the importance of providing those in need with essential energy services Realizing that

inadequate information about existing subsidies is frequently an impediment to reform APEC

Leaders have agreed to continue building regional capacity for the reform of subsidies and initiated an annual voluntary report mechanism to assess the progress of reforms in each APEC economy [1]

Promote technology development and deployment of low-emission energy supply This will be

facilitated through economic and technical cooperation between member economies and capacity

building activities by APEC organizations Some examples of cooperation are the Biofuels Task Force analyzing the issues related to the introduction of biofuels in APEC economies the APEC

Expert Group on New and Renewable Energy Technologies (EGNRET) that promotes activities and

implements projects that facilitates the use of new and renewable energy technologies in the APEC

region and the Peer Review on Low Carbon Energy Supply (PRLCE) mechanism that is focused on identifying and overcoming barriers to introducing Low Carbon Energy Supply in a host economy

Promote the creation of low-carbon communities in the region Under this initiative APEC aims to

provide a guiding principle on how to define and develop a low-carbon town that successfully

integrates the use of smart grids renewable energy and energy efficient technologies to mitigate rapidly growing energy demand in urban areas and thus reduce fossil fuel consumption The first low-

carbon model town case study was the Yujiapu Central Business District project in China

4 The way forward The lsquogreen growthrsquo strategies being implemented have prompted APEC economies to pursue a more

sustainable economic development pathway Since 2007 several energy efficiency initiatives have been

introduced particularly for appliances buildings industry and transport At the same time energy

supplies have gradually become more diversified Our business-as-usual analysis shows that with the current policies in place APEC economies will likely be able to meet the APEC wide energy intensity

reduction goal however the projected increase in CO2 emissions remains a threat to environmental

sustainability Therefore APEC economies are strongly urged to intensify efforts to meet this challenge in its quest for a clean energy future APEC as an organization can assist in these efforts through the

sharing of best practices conducting voluntary peer reviews and supporting the education and capacity

development for managing climate change challenges in the region

References [1] APEC 2013 Asia Pacific Economic Cooperation at httpwwwapecorg

[2] International Energy Agency 2012 World Energy Statistics 2011 retrieved from OECDIEA CD-

ROM Service [3] APERC 2013 Asia Pacific Energy Research Centre at httpapercieejorjp

[4] Intergovernmental Panel on Climate Change 2007 Climate Change 2007 Synthesis Report retrieved

from wwwipccchpublications_and_dataar4syrencontentshtml [5] APEC 2013 About APEC-ESIS httpwwwapec-esisorg

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

4

demand growth As a result the APEC-wide aspirational goal of 45 reduction in energy intensity by

2035 will probably be met The bad news is that BAU is still environmentally unsustainable ndashtotal CO2 emissions from fossil fuel combustion aggregated from 2010 to 2035 is projected to reach 575 billion

tonnes of CO2 equivalent to 32 increase (Figure 5) This is the opposite of what we should be striving

for which is a reduction in CO2 emissions [4] Therefore there is still much room for improvement if we are to prevent the damaging impacts of climate change

0

2000

4000

6000

8000

10000

12000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

MT

OE

Coal Oil Gas Renewable Energy Nuclear Electricity-Net Import

0

5 000

10 000

15 000

20 000

25 000

30 000

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Mil

lio

n T

on

nes C

O2

Electricity Generation Other TransformationIndustry Residential Commercial and TransportDomestic Transport International Transport

Figure 4Primary Energy Supply by Fuel

1990-2035 [2][3]

Figure 5CO2 Emissions by Sector

1990-2035 [2][3]

There are basically three methods for reducing CO2 emissions using less energy (through energy

efficiency and conservation methods) capturing and sequestration of CO2 and switching to less-carbon-

intensive energy sources like nuclear and renewable energy Our analysis of government policies after the Fukushima Nuclear Accident of March 2011 show that while several APEC economies have reassessed

their original policies for nuclear power deployment over the long-term nuclear energy will continue to

play a modest but important role in the APEC electricity generation mix Most economies with existing

nuclear power plants like China are continuing operations but under much more stringent safety rules and review mechanisms These same upgrades to safety standards combined with negative public

perceptions and increasing construction cost will necessarily cause some delays and scaling back of new

nuclear power plant development in the region Renewable energy development on the other hand will likely undergo explosive growth in the

coming years driven by supportive government policies and technical improvements which continue to

reduce cost and improve system performance We expect total primary energy supply from renewable energy sources to increase by about 53 from 2010 to 2035 with significant introduction of wind and

solar power generation (almost 500 growth in total renewable energy capacity from 2010 to 2035) bio-

fuels in the transport sector (about 130 growth in total bio-fuels use from 2010 to 2035) and commercial

bio-energy in the residential commercial and agricultural sector At the same time with growing affluence and better access to commercial energy use of traditional residential biomass will probably

decline

3 APEC lsquogreen growthrsquo strategies Recognizing the importance of protecting the environment and managing energy resources APEC

Leaders have consistently included sustainable development as part of the APEC agenda since 1993 This

issue became a key focus in the 2011 Honolulu Leader Declaration in which APEC Leaders committed

to advancing the shared lsquogreen growthrsquo objectives APEC defines lsquogreen growthrsquo as environmentally sustainable economic growth and development which help economies to successfully transition to a clean

energy future APEC has introduced several lsquogreen growthrsquo strategies including

APEC economies will aspire to reduce APECrsquos aggregate energy intensity by 45 percent by 2035

compared to 2005 levels This target established in the 2011 Honolulu Declaration is an upward revision from the 2007 Sydney Declaration goal of 25 percent reduction [1] To assist economies in

developing their energy efficiency policies two mechanisms are being implemented ndash the Peer

Review for Energy Efficiency (PREE) mechanism in which economies invite a team of experts to

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

3

analyse their policies and provide objective feedback and the Cooperative Energy Efficiency Design

for Sustainability (CEEDS) mechanism in which interested economies participate in knowledge-sharing and capacity building workshops on improving energy efficiencies in selected sectors [3]

APEC also has a dedicated Expert Group on Energy Efficiency and Conservation (EGEEampC) that

promotes energy conservation and the application of energy efficiency practices and technologies in the APEC region This includes maintaining the APEC Energy Standards Information System

(APEC-ESIS) database that provides up-to-date information about energy efficiency standards and

labelling that apply to products in the APEC region [5]

Reduce applied tariff rates on environmental goods and services It is expected that the lower tariff

rates will decrease cost and thus facilitate deployment across the region

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption while

recognizing the importance of providing those in need with essential energy services Realizing that

inadequate information about existing subsidies is frequently an impediment to reform APEC

Leaders have agreed to continue building regional capacity for the reform of subsidies and initiated an annual voluntary report mechanism to assess the progress of reforms in each APEC economy [1]

Promote technology development and deployment of low-emission energy supply This will be

facilitated through economic and technical cooperation between member economies and capacity

building activities by APEC organizations Some examples of cooperation are the Biofuels Task Force analyzing the issues related to the introduction of biofuels in APEC economies the APEC

Expert Group on New and Renewable Energy Technologies (EGNRET) that promotes activities and

implements projects that facilitates the use of new and renewable energy technologies in the APEC

region and the Peer Review on Low Carbon Energy Supply (PRLCE) mechanism that is focused on identifying and overcoming barriers to introducing Low Carbon Energy Supply in a host economy

Promote the creation of low-carbon communities in the region Under this initiative APEC aims to

provide a guiding principle on how to define and develop a low-carbon town that successfully

integrates the use of smart grids renewable energy and energy efficient technologies to mitigate rapidly growing energy demand in urban areas and thus reduce fossil fuel consumption The first low-

carbon model town case study was the Yujiapu Central Business District project in China

4 The way forward The lsquogreen growthrsquo strategies being implemented have prompted APEC economies to pursue a more

sustainable economic development pathway Since 2007 several energy efficiency initiatives have been

introduced particularly for appliances buildings industry and transport At the same time energy

supplies have gradually become more diversified Our business-as-usual analysis shows that with the current policies in place APEC economies will likely be able to meet the APEC wide energy intensity

reduction goal however the projected increase in CO2 emissions remains a threat to environmental

sustainability Therefore APEC economies are strongly urged to intensify efforts to meet this challenge in its quest for a clean energy future APEC as an organization can assist in these efforts through the

sharing of best practices conducting voluntary peer reviews and supporting the education and capacity

development for managing climate change challenges in the region

References [1] APEC 2013 Asia Pacific Economic Cooperation at httpwwwapecorg

[2] International Energy Agency 2012 World Energy Statistics 2011 retrieved from OECDIEA CD-

ROM Service [3] APERC 2013 Asia Pacific Energy Research Centre at httpapercieejorjp

[4] Intergovernmental Panel on Climate Change 2007 Climate Change 2007 Synthesis Report retrieved

from wwwipccchpublications_and_dataar4syrencontentshtml [5] APEC 2013 About APEC-ESIS httpwwwapec-esisorg

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

4

analyse their policies and provide objective feedback and the Cooperative Energy Efficiency Design

for Sustainability (CEEDS) mechanism in which interested economies participate in knowledge-sharing and capacity building workshops on improving energy efficiencies in selected sectors [3]

APEC also has a dedicated Expert Group on Energy Efficiency and Conservation (EGEEampC) that

promotes energy conservation and the application of energy efficiency practices and technologies in the APEC region This includes maintaining the APEC Energy Standards Information System

(APEC-ESIS) database that provides up-to-date information about energy efficiency standards and

labelling that apply to products in the APEC region [5]

Reduce applied tariff rates on environmental goods and services It is expected that the lower tariff

rates will decrease cost and thus facilitate deployment across the region

Rationalize and phase out inefficient fossil-fuel subsidies that encourage wasteful consumption while

recognizing the importance of providing those in need with essential energy services Realizing that

inadequate information about existing subsidies is frequently an impediment to reform APEC

Leaders have agreed to continue building regional capacity for the reform of subsidies and initiated an annual voluntary report mechanism to assess the progress of reforms in each APEC economy [1]

Promote technology development and deployment of low-emission energy supply This will be

facilitated through economic and technical cooperation between member economies and capacity

building activities by APEC organizations Some examples of cooperation are the Biofuels Task Force analyzing the issues related to the introduction of biofuels in APEC economies the APEC

Expert Group on New and Renewable Energy Technologies (EGNRET) that promotes activities and

implements projects that facilitates the use of new and renewable energy technologies in the APEC

region and the Peer Review on Low Carbon Energy Supply (PRLCE) mechanism that is focused on identifying and overcoming barriers to introducing Low Carbon Energy Supply in a host economy

Promote the creation of low-carbon communities in the region Under this initiative APEC aims to

provide a guiding principle on how to define and develop a low-carbon town that successfully

integrates the use of smart grids renewable energy and energy efficient technologies to mitigate rapidly growing energy demand in urban areas and thus reduce fossil fuel consumption The first low-

carbon model town case study was the Yujiapu Central Business District project in China

4 The way forward The lsquogreen growthrsquo strategies being implemented have prompted APEC economies to pursue a more

sustainable economic development pathway Since 2007 several energy efficiency initiatives have been

introduced particularly for appliances buildings industry and transport At the same time energy

supplies have gradually become more diversified Our business-as-usual analysis shows that with the current policies in place APEC economies will likely be able to meet the APEC wide energy intensity

reduction goal however the projected increase in CO2 emissions remains a threat to environmental

sustainability Therefore APEC economies are strongly urged to intensify efforts to meet this challenge in its quest for a clean energy future APEC as an organization can assist in these efforts through the

sharing of best practices conducting voluntary peer reviews and supporting the education and capacity

development for managing climate change challenges in the region

References [1] APEC 2013 Asia Pacific Economic Cooperation at httpwwwapecorg

[2] International Energy Agency 2012 World Energy Statistics 2011 retrieved from OECDIEA CD-

ROM Service [3] APERC 2013 Asia Pacific Energy Research Centre at httpapercieejorjp

[4] Intergovernmental Panel on Climate Change 2007 Climate Change 2007 Synthesis Report retrieved

from wwwipccchpublications_and_dataar4syrencontentshtml [5] APEC 2013 About APEC-ESIS httpwwwapec-esisorg

4th International Conference on Energy and Environment 2013 (ICEE 2013) IOP PublishingIOP Conf Series Earth and Environmental Science 16 (2013) 012124 doi1010881755-1315161012124

4