UNUnited Nations Economic Commission for Europe

Sustainable Energy

Energy has always been important for UNECE. When UNECE was founded in 1947, it took over the European Coal Organization, which had been created urgently towards the end of the Second World War. The first practical task of the UNECE Coal Committee was to help alleviate acute post-war coal shortages. East-west energy cooperation expanded thereafter to include work on the production, consumption and trade of coal, electric power and natural gas. Energy security became a priority during the 1970s “energy crisis” as east-west energy trade and cooperation allowed western consuming countries to diversify their sources of oil and natural gas supplies away from the Middle East. As energy security has risen to the top of the economic agenda again during the past few years, the UNECE Committee on Sustainable Energy has responded both as a forum for an intergovernmental dialogue and through the practical work of its expert groups and technical assistance projects.

Secure and Sustainable Energy Supplies

There are a number of key reasons why energy security has emerged again as an overriding economic concern. During 2006, steeply rising oil import demand in developing countries and the narrowing margin between oil supply and demand drove up prices. The volatility of oil prices is further aggravated by international tensions, terrorism and potential supply disruptions. Hydrocarbon reserves and resources are abundant globally, but they are concentrated in a few geographic regions, some of which are economically vulnerable and unstable. Even developing these reserves in some countries is difficult because of the restricted access of oil and gas companies. While energy-consuming countries seek the security of energy supplies, energy producers seek the security of energy demand to diminish the risks associated with large long-term investments.

Clearly the range, magnitude and complexity of these problems are daunting. Sustainable energy development is just as challenging. Ensuring the environmentally benign use of energy resources and their availability for future generations will not be easy to achieve. But it does offer a positive long-term dimension to the urgent need for secure energy supplies. In fact, a sustainable energy future is most likely to be a consequence of prudent energy security policies pursued today. The Committee on Sustainable Energy is structured to promote international cooperation on exactly these policies and measures.

Energy security, so vital to member countries, has been addressed through the Energy Security Forum that brought together high-level representatives of the energy industries and the financial sector under the auspices of the Committee. In 2006, the Committee decided to pursue this important issue directly during its annual meetings.

Energy reserves and resources need to be classified and evaluated using a reliable, global common system such as the United Nations Framework Classification, so as to increase transparency and knowledge on the future availability of fossil energy and mineral resources as well as to better manage these resources over time. This is the subject of much interest and work by one of the expert groups under the Committee.

Energy efficiency can both reduce import dependency for importing countries while freeing up additional resources for export in energy exporting countries. The UNECE Energy Efficiency 21 Project, as well as Regional Advisory Services, provides self-financing methods for reducing greenhouse gas emissions through energy efficiency improvements that can also reduce import dependencies and alleviate fuel poverty.

Coal, one of the most secure sources of energy, offers an indigenous fuel to many UNECE countries so long as its production and use can be made environmentally acceptable by introducing clean coal and zero emission technologies. This challenge forms part of the Committee’s work on Cleaner Electricity Production from Coal and Other Fossil Fuels as well as a United Nations Development Account project.

Coal Mine Methane can enhance energy security by providing opportunities for inter-fuel substitution and indigenous energy production while at the same time reducing emissions of methane, a potent greenhouse gas, into the atmosphere. This is one of the newer avenues of work under the Committee that is also supported by a technical assistance project.

Natural Gas, today’s fuel of choice and the so-called transition fuel providing the bridge between the present and a much cleaner, environmentally benign energy future, is an important activity of the Working Party on Gas and the UNECE Gas Centre.

In every important respect, the need for secure and sustainable energy supplies poses problems that will not go away and that probably cannot actually be solved. Member States can only hope to manage them better. In order to do this, however, they will need open a new chapter in international energy cooperation.

A New Energy Dialogue

At its annual session in November 2006, delegations recommended that the Committee on Sustainable Energy undertake a broad-based intergovernmental expert dialogue on energy security in one or more of the following areas:

• Data and information sharing, and increased transparency;
• Infrastructure investment and financing;
• Legal, regulatory and policy framework;
• Harmonization of standards;
• Research, development and deployment of new technologies; and
• Investment/transit safeguards and burden sharing.

During its forthcoming 60th-anniversary Commission session, UNECE has been requested to provide guidance to the Committee on Sustainable Energy regarding its future programme of work, in particular which areas of energy security should be addressed first in enhanced expert dialogue on the subject, so as to contribute to a prioritized implementation of the Committee’s programme of work.

Mr. Jean-Christophe Füeg
Chairman, Committee on Sustainable Energy

Over the past 60 years, UNECE has offered a forum to Governments of the UNECE region to meet and develop common understandings to resolve and move forward on international issues of mutual concern. During its annual meeting in 2006, the Committee on Sustainable Energy discussed how this neutral UNECE platform might address current energy challenges and how best to mitigate tensions among member States regarding energy. Clearly, this will require a renewed commitment from UNECE countries to the principles underlying energy relationships and trade, energy security and sustainable energy development.

Each policy for promoting sustainable energy development has a corollary in the policy measures for enhancing energy security. For example, soaring transport fuel demand is a crucial but largely unresolved problem for UNECE member States, but one which might be addressed by additional taxes on petroleum, inter-fuel substitution to biofuels and natural gas, lightweight materials in vehicle construction, and hybrid vehicles. Clearly, solutions are needed that will have significant economic consequences for the transport, energy, environment, forestry and agriculture sectors.

Sustainable energy development touches, to a greater or lesser degree, on all economic sectors and all UNECE work areas. Promoting sustainable energy policies calls for cross-sectoral consensus building to arrive at measures that can be implemented through multi-disciplinary means in each sector over the long term. UNECE has the capacities needed to address such problems. The Commission serves as a consensus-building forum for debate on cross-sectoral issues. Technical Committees and subsidiary expert groups work in each economic sector. UNECE has the independent analytical expertise and the ability to deliver technical assistance, as well as the long-term intergovernmental mechanisms to establish agreed norms, standards and legally binding Conventions.

Some of these capacities will need to be reoriented and adapted to new uses, however. This can be done most effectively by drawing on the experience of member States and assimilating this at the international level. A reorientation of UNECE cross-sectoral work on key issues such as sustainable energy development could potentially benefit from these national experiences.

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