October 11, 2007 Norine Kennedy, USCIB International Policy on Energy Efficiency: Synergy or Crossed Wires? The U.S. Chamber of Commerce Emerging Technologies

October 11, 2007Norine Kennedy, USCIB

International Policy on Energy International Policy on Energy Efficiency: Synergy or Crossed Efficiency: Synergy or Crossed Wires?Wires?

The U.S. Chamber of Commerce Emerging Technologies Committee


International Energy Efficiency (E/e)

Why Care? Challenges (with brief examples) ICC : International Energy Efficiency

Paper What Next?


International Energy Policy @ USCIB

Role: Unique international advocacy group for U.S. Business

300 members – cos., assocs., law firms (including U.S. Chamber) Multiple sectors and issues

Affiliations: International Chamber of Commerce (ICC), OECD Business and Industry Advisory Committee (BIAC), International Organization of Employers (IOE)

Environment Committee Climate Change Working Group

International Energy GroupCo-Leads: Brian P. Flannery, Exxonmobil and Lynn Schloesser, Eastman ChemicalMultisectoral members – producers, transport, consumersInternational network via ICC and BIACHolistic view: EHS issues, trade, innovation, investment, intellectual property rights, etc.


Why should U.S. business care about international

E/e policy developments? A sustainable energy future Climate change is the indispensable priority, and

E/e fundamental to that Yes, a tremendous amount of repetitive talk – but

no denying the progression from “talk shop” to soft law to Hard Law

If international requirements don’t enter through ratification/federal legislation, then via state legislatures, or other national & regional jurisdictions

Not just regulatory = other means, such as labels, standards, procurement, retailer initiatives

Market access, procurement and trade barriers


Energy Efficiency (E/e) at the International Level

The Good News: E/e makes business sense

Boost competitiveness

Exports of new technologies

Job creation

Mutual recognition/harmonious cooperation vs patchwork quilt

The Bad News: Perceived as “low hanging fruit” needing prescriptive approaches

Business and government not speaking same language

Subsidies and market distortions

“Un-integrated” or overly green approaches

Mixed Blessings:

Sectoral approaches (or silos)

Life cycle thinking and product related approaches (“carbon footprint”)


Challenges in International E/e Policy

Multiple fronts

Top down targets increasingly linked to climate change

Product-oriented policy

Lack of international governmental understanding of what drives technological innovation, dissemination and more generally energy investments in global markets


The Challenge: Multiple Fronts for International Policy

No international “owner” (bad or good?)

UN : Commission on Sustainable Development (CSD); UN Environment Programme (UNEP); UN Development Programme (UNDP); UN Climate Change ConventionG8International Energy Agency (IEA)Regional Intergovernmental Groups:

• EU• APEC• Major Economies Meeting Initiative (MEM)


The Challenge: Top Down Approaches to E/e

“Top Down” Targets and ApproachesUN : Commission on Sustainable Development (CSD); UN Climate Change TreatyG8IEA : World Energy Investment OutlookRegional Groups :

• EU Energy policy: - 20% by 2020 (compared to forecasts)

• APEC: Energy intensity aspirational target –25% by 2030 (2005 base yr)

• MEM – Long term international objective and role of E/e therein?


EU: Action Plan for E/e (2007-2012)

-20% by 2020 (compared to energy forecasts of 2020) or 1.5% saving per year up to 2020

Reduce EU impact on climate change and dependence on fossil fuel imports

Directive 2006/32/ec – Guidelines, code of conduct and certification for buildings and appliances

Similar measures foreseen for utilities, transport, and demand side management

The Action Plan provides for adoption of “eco-design” minimum standards to improve the energy yield of 14 groups of products (including boilers, tvs and light fittings)

Efforts to ban incandescent light bulbs (EU proposal, NL, also elsewhere, Australia, California, etc.)


EU: Eco-design of Energy-Using Products (EUP) (Dir 2005/32/EC)

Prescriptive “Product Policy” oriented

E/e approaches proliferating internationally

EUP encourages manufacturers to design products with environmental impacts in mind

After adoption, the Commission will be able to enact implementing measures on specific products and environmental aspects (including energy consumption)

Synergy with Energy Labelling directive and existing directives on minimum energy efficiency requirements


International Chamber of

Commerce (ICC) ICC represents 1000s of companies in 130

countries ICC Environment and Energy Commission ICC E/e Perspective informed by:

Economic Growth and DevelopmentPromoting Innovation and InvestmentScientifically based cost-effective policy and practiceCorporate ResponsibilityFighting Bribery and Corruption


ICC and E/e

How is E/e understood and promoted in international

policy frameworks?

How to address E/e in the broader context of energy policy (security, pricing, infrastructure) and climate policy?

What drives (or hampers) technological innovation, commercialization, uptake to promote E/e in globalized markets?

What is the role of business vis a vis E/e in societies, and in particular, in developing countries?

How to promote E/e through technological innovations in largest developing countries?


ICC E/e Policy Statement

Importance to suppliers and consumers in globalized markets: consider supply-chain and other commercial connections

E/e makes good business sense: benefits to business and to society

Business has vast experience from strides already made Importance of long-term investments and the necessary

enabling frameworks Working within free markets Fostering technological innovation and R&D Promoting technological cooperation Integrating e/e with climate change


E/e: Emerging Issues and Opportunities

Energy Access and Security Energy Management System

standards Product-based/Sustainable

Consumption Policies Carbon Footprint


THANK YOU!!THANK YOU!!

http://www.uscib.orghttp://www.uscib.org

Documents

October 11, 2007 Norine Kennedy, USCIB International Policy on Energy Efficiency: Synergy or Crossed Wires? The U.S. Chamber of Commerce Emerging Technologies