2003-2004
ANNUAL REPORT
SUSTAINABLE ENERGY
Major achievements in 2003
The Committee on Sustainable Energy's guidelines
for reforming energy prices to meet sustainable
energy development objectives were adopted at the
"Environment for Europe" Ministerial Conference
in Kiev. The Committee also evaluated energy security
risks through the UNECE Energy Security Forum with
the participation of the Secretary-General of OPEC.
The Energy Security Forum provided an appraisal
of energy security risks by experts from OPEC, EU,
the Russian Federation and the United States to
financial markets and the energy community through
significant press and television coverage.
The Working Party on Gas, through its intersectoral
Task Force, carried out an economic and technical
assessment of the Blue Corridor project aimed at
the creation of transport corridors for gas- driven
vehicles. Its Ad Hoc Group of Experts on the Supply
and Use of Gas completed two projects related to
normative activities in the downstream gas business
and launched another project on "Existing Standards
for CNG Fuelling Stations."
In January 2003, the Working Party
on Gas agreed that energy security could be enhanced
by expanding energy trade and investment. This could
be achieved by facilitating energy market and energy
price adjustments. The Round table on a Wider Europe
– New Challenges for the Energy Sector, with
senior energy industry executives, held on 21 January
2003, concluded that this could best be achieved by
strengthening economic and political ties through
the concept of a wider Europe which would go some
way to ensure a more secure and sustainable energy
future for all.
The Gas Centre's new Task Force on the Security of
Natural Gas Supplies and its other existing task forces
evaluated the ramifications of the EU Gas Directive
for the 15 EU countries, gas markets and gas industries
as well as its implications for countries in Central
and Eastern Europe. The task forces reviewed how Central
and East European countries and their gas industries
can best prepare themselves and benefit from the experiences
acquired in Western Europe and North America.
The Energy Efficiency 21 Project received approval
for financing US$ 25 million of investments, while
a further US$ 30 million of investments are under
consideration by international financial institutions,
targeted funds and commercial banks as part of its
work on energy efficiency market formation and investment
project development to reduce greenhouse gas emissions
in countries in transition.
The Task Force on the United Nations
Framework Classification for Reserves and Resources
created an inter-sector Ad Hoc Group for harmonizing
the terminology of all energy commodities (petroleum,
natural gas, coal and uranium). The World Energy Council
agreed to adopt this new classification system for
its 2004 Survey of Energy Reserves and Resources.
This continues the United Nations Framework Classification
for Solid Fuels and Mineral Commodities adopted by
more than 60 countries worldwide and by selected stock
exchanges.
The Ad Hoc Group of Experts on Coal and Thermal Power
agreed to realign its work to better respond to the
challenges of the global sustainable development and
environmental debate. A successor Ad Hoc Group of
Experts on Coal in Sustainable Development will address
the economic, social and environmental dimensions
of coal in the countries in transition.
Under Regional Advisory services, the CIS countries
launched the second phase of the work on Energy Efficiency
and Energy Security in CIS. Energy efficiency projects
were approved with UNDP and Global Environment Facility
support in Ukraine, Kazakhstan, the Russian Federation
and Belarus. The implementation of the Rational and
Efficient Use of Energy and Water Resources Project
with significant support of the United Nations Development
Account in Central Asia completed plans for prototype
investment projects during 2003.
The Ad Hoc Group of Experts on the Extension of Europe
on Electricity Interconnections agreed to reorient
its programme of work and change the name of the Group
to the Ad Hoc Group of Experts on Electric Power to
respond more effectively to the needs of UNECE member
States and sustainable development issues. The Project
Group of the Southeast European Cooperative Initiative
(SECI), supported by the United States Agency for
International Development (USAID), pursued a new project
on Regional Electric Power Transmission and Expansion
Planning in South-East Europe.
Major challenges for 2004
The Sustainable Energy sub-programme will begin to
incorporate new initiatives in 2004 with greater attention
to energy security, global financial markets, corporate
governance, policy dialogue, renewable energy sources,
zero-emission technologies and intersectoral activities.
The work programme will place more emphasis on economic
development as called for in the Millennium Declaration,
such as the restructuring in coal-mining communities
in countries in transition based on experience in
Western countries. It will provide additional analysis
and policy dialogue on key issues such as energy security,
the liberalization of energy markets and the development
of cleaner, more efficient energy systems to reduce
greenhouse gas emissions in line with the recommendations
of the World Summit on Sustainable Development.
The work programme will be implemented increasingly
with innovative Internet applications to enhance communications
and value-added information transfers within and between
UNECE member States in accordance with the likely
recommendations of the World Summit on the Information
Society. It will build on intersectoral activities
initiated in the previous biennium with joint projects
in timber and transport, notably on wood as an energy
source and the 'Blue Corridor' project use of natural
gas as a transport fuel.
________