In 2007, with oil prices climbing to $95 per barrel and tensions in the Middle East rising again, the UNECE Committee on Sustainable Energy launched an enhanced expert dialogue on energy security to be held during its annual sessions with the participation of representatives of Governments, energy industries, the financial community and relevant international organizations. This initiative was confirmed by the Panel on Sustainable Energy Policies held during the Sixtieth Anniversary session of the Economic Commission for Europe in April. Senior representatives of Belarus, Georgia, France, Russian Federation, Turkey, United States, International Energy Agency, European Investment Bank and the Energy Charter were joined by senior executives of Total and SwissRe / Conning & Company in noting that financing the large investments needed to ensure a secure and sustainable energy future was one of the key challenges ahead.
Enhanced Energy Security Dialogue. At its annual session in 2007, the Committee on Sustainable Energy held its first enhanced expert dialogue on “Investing in and Financing the Hydrocarbon Sector to Enhance Global Energy Security”. A new publication completed by the UNECE Energy Security Forum, “‘Emerging Global Energy Security Risks” was presented to the session. The report reconciles energy security risks from three points of view: that of the European Union, the Russian Federation, and the United States. Following its annual session, the Committee issued a Statement on Investing in Energy Security Risk Mitigation which further elaborates activities of the enhanced expert dialogue on energy security: a study on how energy security is perceived by decision-makers in Governments, industry and finance; an analysis of energy security and sustainable energy policies and an appraisal of the use of statistical indicators to measure the energy vulnerability of UNECE member States.
Clean Electricity Production. In line with the UNECE Reform to streamline the sustainable energy work programme, the Committee launched the new Ad Hoc Group of Experts on Cleaner Electricity Production for Coal and Other Fossil Fuels, with a Forum on Fostering Investment in Clean Electricity Production for Fossil Fuels, prior to the annual session of the Committee on Sustainable Energy in November 2007. The Forum brought together high-level representatives of the electricity and coal industries, regulators, the financial sector and Governments to review the technological issues and challenges along the production and supply chain as well as to assess financial markets, electricity markets and investing in cleaner electricity production from fossil fuels.
Energy Reserves and Resources. Demand is growing in global capital markets for a common terminology to classify and report energy and mineral reserves and resources. A common terminology can not only address differences in reporting within the same commodity classes, but can also support a common understanding across different commodity classes. Following the endorsement of ECOSOC in Decision 2004/233, the Ad Hoc Group of Experts on the Harmonization of Fossil Energy and Mineral Resources Terminology has led a global effort to develop a common code through application of the United Nations Framework Classification for Fossil Energy and Mineral Resources (UNFC), a system adopted, adapted or tested by more than 60 countries worldwide. Reconciling the views of disparate partners including the Organization of the Petroleum Exporting Countries, International Energy Agency, Society of Petroleum Engineers, International Accounting Standards Board, the minerals industry, and member States, the Ad Hoc Group of Experts has made significant progress in promoting the widespread application of the UNFC. Although the UNFC will remain a classification system that can be directly adopted or adapted by member States or other organizations, there is growing recognition that its main strength is serving as an overarching umbrella system to which all other major systems can map against. In 2007, the Ad Hoc Group of Experts made substantial progress toward development of the global code through detailed mapping of the UNFC against other major classification systems, and by attracting additional participation and interest. As the project continues, expansion of work in this field will help to make all energy and mineral commodities more attractive to foreign investors for exploitation.
Energy Efficiency. UNECE promotes the formation of an energy efficiency market in Eastern Europe so that cost-effective investments can provide a self-financing method of reducing global greenhouse gas emissions through its Energy Efficiency 21 Project (EE21). Along these lines, dedicated financial instruments have been promoted, such as the European Clean Energy Investment Fund raised by SwissRe / Conning & Company under a mandate of the EE21 Project and announced during the sixty-second session of the Commission. An EE21 subproject on financing energy efficiency investments for climate change mitigation, largely supported by the United Nations Foundation, the Global Environment Facility, the French Fonds Français pour l’Environnement Mondial, the European Business Congress was launched during the eighteenth session of the EE21 Steering Committee in May 2007. This technical assistance project will provide for the establishment of a dedicated public-private equity Fund for twelve countries in Eastern Europe, Central Asia and South-Eastern Europe for energy efficiency and renewable investment projects. Public participation in the Investment Fund was solicited in an analytical paper prepared for the Sixth Ministerial Conference “Environment for Europe” held in Belgrade during October 2007. In their Declaration made during the Conference, Ministers and heads of delegation welcomed the project and agreed to consider participating as public-sector investors in the energy efficiency investment fund which is being created through the Energy Efficiency 21 Project.
Regional Advisory Services on Energy have included the preparation of analyses on the energy situation, energy efficiency potential and prospects for countries of the Commonwealth of Independent States (CIS); assistance to national experts in the elaboration and preparation of plans, programmes and projects to facilitate the implementation of energy policies and strategies; assistance in the planning and implementation of programmes for capacity and institutional building and in the provision of training on business planning, financial engineering, project development and sources of financing; provision of advice and participation in workshops and seminars on the restructuring, rehabilitation and modernization of the energy sector in the CIS countries; and assistance in the preparation of project proposals for funding by the United Nations Development Account (UNDA), the United Nations Development Programme (UNDP) and the Global Environment Facility. Special attention has been paid to problems related to energy efficiency and conservation in economies in transition, notably the development of Energy Efficiency Investment Zones and elaboration of different financial mechanisms to attract foreign investors in order to realize energy efficiency projects in member States.
Natural Gas. At its seventeenth session in January 2007, the Working Party on Gas organized a Round Table on Securing Natural Gas Supply in the Context of Sustainable Development, bringing together leading gas experts from producing, consuming countries and countries of gas transit. A new study on Gas Saving to Reduce Natural Gas Demand and Enhance Energy Security was launched. Delegations discussed future steps for the implementation of the Blue Corridor project, aimed at establishing transport corridors in Europe for heavy-duty vehicles, using natural gas as fuel, instead of diesel. They also reviewed gas market and gas industry developments in the UNECE region and developments in the Natural Gas Vehicles (NGV) market worldwide. In September 2007 in Moscow an International Week of Rational Use and Distribution of Gas was organized by Gazprom, Russian Federation, in cooperation with UNECE and the International Gas Union. With the support of 26 gas companies throughout the UNECE region, the Gas Centre’s Task Forces held meetings on the implementation of the European Union Gas Directive, gas transportation and pipelines, gas markets and gas industries as well as their implications for countries in Central and Eastern Europe. A High-Level Conference on the Role of the Mediterranean Basin in the Future Gas Supply was held in Oran, Algeria. Gas member companies and staff took part in the Conference on the Production of Special Gas in Orenburg, Russian Federation. The Technical Committee of the Gas Centre Database continued to work on a special gas map of Europe. Gas Centre member companies are transferring data to the database where a map of the high pressure transportation and supply pipelines in Europe is being created. Newly created software will make the map interactive.
Clean Coal. The project on Capacity Building for Air Quality Management and the Application of Clean Coal Technologies in Central Asia (CAPACT) is designed to strengthen the capacity of air quality management institutions to implement the UNECE Convention on Long-range Transboundary Air Pollution with funding from the UNDA as an inter-sector project between the Committee on Sustainable Energy and the Committee on Environmental Policy. It provides assistance to participating Governments on energy pricing policy reforms and promotes investment project finance. Energy efficiency projects were also approved with UNDP and Global Environment Facility support in Belarus, Kazakhstan, Kyrgyzstan, Russian Federation and Ukraine.
Coal Mine Methane is a greenhouse gas over 20 times more potent than carbon dioxide. Mitigation of methane emissions not only yields important benefits related to climate change, but it can also provide an energy stream that delivers many additional co-benefits. In the case of coal mines, methane capture and use improves mine safety, provides an additional energy source for power generation, heating or other uses, and supports another revenue centre within the mining operation. With 40 per cent of global production and 38 per cent of global coal mine methane (CMM) emissions, there is great potential for CMM capture and use in the UNECE region. The Ad Hoc Group of Experts on Coal Mine Methane pursues a work programme intended to identify and address key barriers limiting further implementation of CMM projects in the region. In 2007, the Ad Hoc Group of Experts continued work on promoting the financing of mine methane projects in Central and Eastern Europe and the CIS countries. In addition, mine safety remains very closely tied to methane utilization, and the Ad Hoc Group of Experts embarked on two new initiatives directly related to mine safety: (i) review of regulatory frameworks to identify outdated or ineffective rules and statutes relating to methane degasification, and (ii) assessment of the insurance industry’s support for additional mine safety improvements in methane degasification and utilization. In addition, the Ad Hoc Group of Experts cooperated closely with the Methane to Markets Partnership, and is currently in the first stages of developing a common terminology for the global industry.
Major Challenges for 2008 include new initiatives to implement mandates of the Committee on Sustainable Energy and other United Nations bodies for sustainable development in the energy field, energy security, energy efficiency for climate change mitigation, a classification system for energy commodities, and inter-sector activities. 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. The enhanced dialogue on energy security will include a study on how energy security is perceived by decision-makers, analyse the correlation between energy security and sustainable energy policies and appraise of the use of statistical indicators to measure the energy vulnerability of UNECE member States. The Energy Efficiency 21 Project will work with the European Clean Energy Fund to develop investment projects in Eastern Europe. The project will begin work on the Public Private Partnership equity fund for financing energy efficiency investments in twelve East European, South-East European and Central Asian UNECE member States. The new Ad Hoc Group of Experts on Cleaner Electricity Production from Coal and Other Fossil Fuels will launch activities under its agreed programme of work. The Committee on Sustainable Energy will address these challenges with several advantages including committed local experts, the interest of energy industry, government and financial sector decision-makers, and with significant extrabudgetary resources to complement the United Nations regular budget.
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