ewg background

Agenda Item 4: Update on Agenda Item 4: Update on Collaboration with APEC Fora – EWG Collaboration with APEC Fora – EWG to Outline Areas of Potential to Outline Areas of Potential Cooperation, including on Maritime Cooperation, including on Maritime SecuritySecurity

Mr Koichi MurakamiMr Koichi MurakamiEconomic Affairs BureauEconomic Affairs BureauMinistry of Foreign AffairsMinistry of Foreign AffairsJAPANJAPAN

Established in 1990, the objective of the EWG is to maximise the energy Established in 1990, the objective of the EWG is to maximise the energy sector's contribution to the economic and social well-being of the region, sector's contribution to the economic and social well-being of the region, while minimising the environmental effects of energy supply and use. while minimising the environmental effects of energy supply and use.

Australia holds the EWG Lead Shepherd and EWG Secretariat roles.Australia holds the EWG Lead Shepherd and EWG Secretariat roles.

The EWG is assisted by four Expert Groups on:The EWG is assisted by four Expert Groups on:•Clean Fossil Energy; Clean Fossil Energy; •Energy Efficiency & Conservation;Energy Efficiency & Conservation;•Energy Data & Analysis;Energy Data & Analysis;•New & Renewable Energy Technologies, and aNew & Renewable Energy Technologies, and a•Task Force on Biofuels.Task Force on Biofuels.

EWG Background

Makati City The Philippines 2008

30th APEC Transportation Working Group Meeting

APEC accounted for 59% of world energy demand in 2004 and is a net energy APEC accounted for 59% of world energy demand in 2004 and is a net energy importer. Energy demand is growing due to high levels of economic growth, importer. Energy demand is growing due to high levels of economic growth, industrialisation and urbanisation. industrialisation and urbanisation. Energy securityEnergy security is vital to the ongoing is vital to the ongoing economic prosperity of the APEC region.economic prosperity of the APEC region.

Energy Demand in the APEC Region



0

2000

4000

6000

8000

10000

12000

1980 1990 2002 2005 2010 2020 2030

MT

OE

Coal Oil Gas Hydro Nuclear NRE

History Outlook

Between 1980 and 2002 APEC's Between 1980 and 2002 APEC's transport energy consumption grew at transport energy consumption grew at nearly 3% per annum.nearly 3% per annum.

Oil products account for the largest Oil products account for the largest share of transport energy share of transport energy consumption – 98% in 2002 and consumption – 98% in 2002 and forecast to increase to 99% by 2030.forecast to increase to 99% by 2030.

APEC's transport energy demand will APEC's transport energy demand will increase from 1087 mtoe in 2002 to increase from 1087 mtoe in 2002 to 1991 mtoe in 2030.1991 mtoe in 2030.

Energy Demand for Road Transport



0

200

400

600

800

1000

1200

1400

1600

1800

1970 1980 1990 2000 2010 2020 2030

MT

OE

Gasoline Diesel LPG Alternative

Gasoline

Diesel

Due to a heavy reliance on road transport and limited potential for alternative Due to a heavy reliance on road transport and limited potential for alternative fuels, the transport sector will continue to lead oil demand growth well into the fuels, the transport sector will continue to lead oil demand growth well into the future. future.

Furthermore, with declining domestic oil production, increasing oil demand will Furthermore, with declining domestic oil production, increasing oil demand will be met through higher levels of oil imports, thus raising be met through higher levels of oil imports, thus raising energy securityenergy security concerns.concerns.

Managing road transport energy demand will be a critical element in promoting Managing road transport energy demand will be a critical element in promoting regional regional energy securityenergy security and sustainable development. and sustainable development.

Energy Demand for Road Transport



EWG's Energy Security Initiative (ESI)

In light of increasing regional energy demand from the transport and stationary In light of increasing regional energy demand from the transport and stationary sectors, promoting regional energy security is a major component of the EWG's sectors, promoting regional energy security is a major component of the EWG's policy work, primarily through the EWG's Energy Security Initiative (ESI).policy work, primarily through the EWG's Energy Security Initiative (ESI).

The ESI comprises:The ESI comprises:

•Short-term measures to respond to temporary energy supply disruptions; andShort-term measures to respond to temporary energy supply disruptions; and

•Longer-term measures to address the broader energy security challenges Longer-term measures to address the broader energy security challenges facing the APEC region.facing the APEC region.



Short-term measuresShort-term measures include: include:

• Improving transparency of the global oil market;Improving transparency of the global oil market;• Maritime securityMaritime security;;• A real-time emergency information sharing system; A real-time emergency information sharing system; • Encouraging APEC Economies to have energy emergency Encouraging APEC Economies to have energy emergency mechanisms in place. mechanisms in place.

Long-term measuresLong-term measures include: include:

• Facilitating energy trade and investment; Facilitating energy trade and investment; • Technology cooperation, Technology cooperation, energy efficiencyenergy efficiency, clean fossil energy;, clean fossil energy;• Alternative transportation fuels and new and renewable energy Alternative transportation fuels and new and renewable energy technologies.technologies.



ESI Measures

APEC Biofuels Task Force

The Biofuels Task Force aims to help APEC economies understand The Biofuels Task Force aims to help APEC economies understand the potential for biofuels to displace oil in the transport sector.the potential for biofuels to displace oil in the transport sector.

The Task Force reports that while several biofuel options are The Task Force reports that while several biofuel options are potentially cost competitive at oil prices above US$50/barrel, major potentially cost competitive at oil prices above US$50/barrel, major process cost reductions are needed for ethanol to be economic.process cost reductions are needed for ethanol to be economic.

Much more work is needed at the R&D and production process level Much more work is needed at the R&D and production process level before biofuels could make a substantial contribution to enhancing before biofuels could make a substantial contribution to enhancing energy security in the transport sector.energy security in the transport sector.



Asia Pacific Energy Research Centre (APERC)APERC was established in 1996 and is based in Tokyo, Japan. APERC was established in 1996 and is based in Tokyo, Japan.

APERC aims to foster understanding amongst APEC economies of APERC aims to foster understanding amongst APEC economies of global, regional and domestic energy demand and supply trends, global, regional and domestic energy demand and supply trends, including energy infrastructure development, energy regulatory reform including energy infrastructure development, energy regulatory reform and related policy issues.and related policy issues.

APERC's research themes are subject to EWG endorsement and it APERC's research themes are subject to EWG endorsement and it

reports on its activities to EWG meetings.reports on its activities to EWG meetings.



APERC – Research Activities

'Urban Transport Energy Use in the APEC Region – Trends and 'Urban Transport Energy Use in the APEC Region – Trends and Options'. Published in 2007 and is available from: Options'. Published in 2007 and is available from:

http://www.ieej.or.jp/aperc/publications.html

The report analysed the factors contributing to increasing urban The report analysed the factors contributing to increasing urban transport energy demand and provided options to control transport transport energy demand and provided options to control transport energy demand in APEC urban areas via:energy demand in APEC urban areas via:Mass transit systems;Mass transit systems;Smartcard unified payment systems;Smartcard unified payment systems;Pricing approaches to parking; andPricing approaches to parking; andEmployer based incentives.Employer based incentives.





Survey of Policies and Programs to Promote Fuel Efficient Transport in APEC Economies

Provides a summary of options for improving transport efficiency, Provides a summary of options for improving transport efficiency, including energy efficiency in transport through:including energy efficiency in transport through:

Increasing fuel efficiency of new vehicles;Increasing fuel efficiency of new vehicles;Increasing purchases of energy efficient vehicles;Increasing purchases of energy efficient vehicles;Improving operational efficiency of existing vehicles;Improving operational efficiency of existing vehicles;Reducing traffic congestion;Reducing traffic congestion;Increased use mass transit systems; andIncreased use mass transit systems; andImproved urban planning to reduce traffic.Improved urban planning to reduce traffic.

On 25 March 2008, Transportation Working Group members were On 25 March 2008, Transportation Working Group members were requested to provide a peer review of the survey and the EWG looks requested to provide a peer review of the survey and the EWG looks forward to receiving feedback on this document.forward to receiving feedback on this document.



Peer Review on Energy Efficiency (PREE) Initiative



The EWG endorsed the PREE initiative to advance regional energy efficiency.The EWG endorsed the PREE initiative to advance regional energy efficiency.

Improving energy efficiency can help lower business costs, mitigate greenhouse gas Improving energy efficiency can help lower business costs, mitigate greenhouse gas emissions and enhance energy security.emissions and enhance energy security.

Opportunities for energy efficiency improvements exist in the power generation, industrial Opportunities for energy efficiency improvements exist in the power generation, industrial public, residential, commercial and of course, transportation sectors.public, residential, commercial and of course, transportation sectors.

The two prime activities to be undertaken under the PREE initiative include:The two prime activities to be undertaken under the PREE initiative include:

Compiling energy efficiency policies of APEC member economies; andCompiling energy efficiency policies of APEC member economies; andOn a voluntary basis, On a voluntary basis, peer reviewspeer reviews of APEC member economies energy efficiency of APEC member economies energy efficiency policies/programs.policies/programs.

Final planning of the PREE process, including the sectors to be covered expected to be Final planning of the PREE process, including the sectors to be covered expected to be finalised in the second half of 2008.finalised in the second half of 2008.

8th Meeting of APEC Energy Ministers (EMM8)At EMM8 Energy Ministers noted the economic implications of At EMM8 Energy Ministers noted the economic implications of disruptions to disruptions to maritime securitymaritime security and instructed the EWG to develop and instructed the EWG to develop linkages with organisations responsible for linkages with organisations responsible for maritime securitymaritime security for for reporting to EMM9.reporting to EMM9.

Energy Ministers also directed the EWG to develop best practice Energy Ministers also directed the EWG to develop best practice principles for energy efficient transport and encouraged APEC principles for energy efficient transport and encouraged APEC members to diversify the transport fuel mix using cleaner fuel sources.members to diversify the transport fuel mix using cleaner fuel sources.

The preceding issues that I have discussed could potentially benefit The preceding issues that I have discussed could potentially benefit from Transportation and EWG Working Group cooperation.from Transportation and EWG Working Group cooperation.



EWG and Transportation Working Group Cooperation

The EWG seeks to identify cross-cutting issues and potential areas of The EWG seeks to identify cross-cutting issues and potential areas of cooperation with the Transportation Working Group and its MSSG to further cooperation with the Transportation Working Group and its MSSG to further promote and enhance energy security in the APEC region.promote and enhance energy security in the APEC region.



Possible courses of action include:Possible courses of action include:

•Attending each others meetings as appropriate;Attending each others meetings as appropriate;

•Share and exchange information on best practices and lessons learned on Share and exchange information on best practices and lessons learned on energy efficient transport and maritime security issues, including on maritime energy efficient transport and maritime security issues, including on maritime security capacity building needs; security capacity building needs;

•Cooperation on potential project proposals of direct relevance to both groups.Cooperation on potential project proposals of direct relevance to both groups.

LNG Facilities and Energy Efficient TransportPublic information and education are important to the success of LNG projects and to the growth of LNG trade and energy security in the APEC region.

However, public concern about the safety of LNG ships, terminals and storage facilities has surfaced on numerous occasions.

These concerns require a response in the form of public education campaigns as they provide a valuable input to those involved in new LNG projects.

The views of the MSSG for example would be most welcome in addressing such issues, as would the views of the Transportation Working Group on promoting best practice principles for energy efficient transport.



EWG Project on LNG Public EducationEWG Project - LNG Public Education, Communication and Information Sharing Campaign

This project undertaken in response to public concerns about the safety aspects of LNG infrastructure facilities.

The EWG could potentially benefit from MSSG advice and information sharing activities in this area.

http://apecenergy.tier.org.tw/LNGPECIS/



ConclusionAPEC Energy Ministers directed the EWG to develop linkages with organisations responsible for maritime security and to develop best practices for energy efficient transport.

Cooperation between our groups on best practices and lessons learned on maritime security issues and energy efficient transport could be undertaken through:• Attending each others meetings as appropriate;• Sharing and exchanging information on these issues; and • Cooperating on potential project proposals of direct relevance to both groups.

The EWG would welcome your views on these important issues.



EWG Contacts

EWG Secretariat Manager:[email protected]: +61-2-6213-7877Fax: +61-2-6213-7900

Further information about the APEC EWG and the Energy Security Initiative can be accessed from:www.ewg.apec.org



mailto:[email protected]

http://www.ewg.apec.org/

Thank you

Thank you for you’re the opportunity to attend your meeting today.

In working to advance energy security in our region, we look forward to hearing of the outcomes of your consideration on cooperation between our two groups.



ewg background

Documents