World Energy Trilemma

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INSERT YOUR COMMITTEE LOGO HERE. World Energy Trilemma. Time to get real – the agenda for change. The World Energy Trilemma The Energy Sustainability Index Public and private stakeholder dialogue Agenda for Change. The World Energy Trilemma.
INSERT YOUR COMMITTEE LOGO HEREWorld Energy TrilemmaTime to get real – the agenda for changeThe World Energy Trilemma
  • The Energy Sustainability Index
  • Public and private stakeholder dialogue
  • Agenda for Change
  • The World Energy TrilemmaThe world is far away from achieving sustainable energy systems
  • 1.2 billion people live without access to electricity
  • 2.8 billion people lack access to clean cooking facilities
  • Population growth from 7 to 9.3 billion people by 2050
  • Energy demand is expected to increase between 27% and 61% by 2050
  • CO2 emissions continue to grow
  • Cumulative investment needed:
  • US$ 19.3 to US$ 26.7 trillion by 2050 in electricity infrastructure alone
  • World Energy Trilemma Report
  • Call for increased dialogue
  • 2012 report captured the views of more than 40 senior energy executives on what they need from policy
  • 2013 report captured the response of more than 50 governments, multilateral organisations and development banks
  • Work culminated at World Energy Congress in Daegu in October 2013 and in the Agenda for Change
  • Energy Sustainability IndexThe diversity of energy profiles among the top performers illustrates the importance of policyFive profiles of the energy trilemma highlight common challengesThe 2013 Index highlights an opportunity for developing countries Public and private stakeholder dialogueDevelop a clear vision that encompasses a mix of energy sources and technologiesIn 2013 public decision makers agree with energy industry`s recommendations but point to an increasing policy complexity
  • Lack of global consensus on target profile of future energy system
  • Dynamics of changing energy supply and demand
  • Inherent difficulties in translating policy into effective regulations
  • To meet the complexity, public stakeholders ask energy industry to help
  • Improve energy policy and regulation through greater dialogue, sharing knowledge and experiences
  • Increase energy investments and R&D through better risk alignment
  • Support least-developed and developing economies on a new path to energy sustainability
  • Agenda for Change“We must accept that we have to makehard choices in this generation tobring about real changes for future generations and theplanet. Politicians and the industry must get real.”Back upRecommendation 1:Define a coherent and predictable energy policyRecommendation 2:Enable market conditions that attract long-term investmentsRecommendation 3:Encourage public and private initiatives that foster R&D Recommendation 1Industry should proactively help improve energy policies and regulationInform and engage publicGeneral PublicPolitically achievability?IndustryHelp policymakers through energy / technology expertiseGovernmentRecommendation 2: Increasing energy investment through better risk alignment…but call on industry to be less risk aversePolicymakers agree it is their role to reduce political and regulatory risk…CountryriskEnergy and infrastructure investments Industry lead role in energy technology development and reducing costsForm coalitions to align their research plans and long-term goalsPolitical risk insuranceRegulatory & policy riskWorking with development banksLack of transparencyRisks to investorWays to mitigateRecommendation 3: The new path to sustainability: an opportunity for developing countriesSupport to government in four areas:
  • Creating attractive policy and regulatory frameworks
  • Generating opportunities for investment in “technically good projects”
  • Developing local human capital needed to establish and maintain an energy sector
  • Developing a path that recognizes the knowledge gap and sticks to locally adapting proven technology
  • United States on rank 40Signs of progress
  • Total primary energy intensity improved continuously over the past years and is better than world average
  • Emission intensity improved even more in the same timeframe and is close to world average.
  • Further improvements are to be expected in the near future, e.g., coal replaced by gas, GHG and fuel efficiency standards and so on
  • Energy sustainability balance AsiaEnergy sustainability balance EuropeEnergy sustainability balance Latin America and the CaribbeanEnergy sustainability balance Middle East and North AfricaEnergy sustainability balance North AmericaEnergy sustainability balance Sub-Saharan Africa
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