The third Ministerial G8 Gleneagles Dialogue meeting in Berlin in 2007 concentrated on developing an integrated view on energy and climate policy with a focus on technology and investment in sustainable energy systems. The Berlin ministerial recognised the urgent need for clear and predictable policy frameworks on the national and international levels in order to spur more climate-friendly sustainable development pathways and underscored the need for agreement on a strong process to develop a post-2012 framework.
To this end, the International Energy Agency and the Renewable Energy and Energy Efficiency Partnership, the Renewable Energy Policy Network for the 21st century, national experts from Dialogue countries and interested stakeholders were invited to explore in more detail the technology potentials in key sectors in Dialogue countries. Analysis focused on how to ensure economic growth with a lower carbon footprint, including identifying specific innovative mechanisms for technology co-operation. The results were reported at the Japanese G8 presidency in July 2008.
International Financial Institutions were invited, in co-operation with national experts from Dialogue countries and the private sector, to analyse in depth the international co-operation toolbox, including expanding and scaling up mechanisms such as the Clean Development Mechanism, sectoral approaches, and blended public and private financing.
The International Energy Agency (IEA) undertook three years of detailed work under the Gleneagles Plan of Action funded by G8 members. The Agency’s report of the main conclusions can be found on its website. On energy efficiency, the IEA has completed an exhaustive analysis of the global potential for improvements in energy efficiency and the action that needs to be taken to realise that potential. This analysis culminated in 25 recommendations made by the IEA to the leaders of the G8 for improving global energy efficiency covering action on buildings, appliances, lighting, transport, industry, energy utilities and cross-cutting policies and which, by 2030, could reduce global demand for oil by 15 per cent., and energy-related CO2 emissions by almost 20 per cent., G8 leaders at the Hokkaido summit in Japan in July accepted the IEA’s conclusions, which also included:
The leaders of the G8, China, India and South Korea agreeing to establish an International Partnership on Energy Efficiency.
A commitment to strongly support the launching of 20 large-scale Carbon Capture and Storage (CCS) demonstration projects globally by 2010 with a view to beginning broad deployment of CCS by 2020.
A commitment to develop road maps for innovative clean technologies and to co-operate through existing and new partnerships.
A commitment to promote the continued development and commercialisation of renewable energy, including through the launch of a Global Bioenergy Partnership.
In terms of work on encouraging investment in clean technologies in emerging economies, the World Bank and other multilateral development banks (MDBs) have been invited to increase dialogue with borrowers on energy issues and put forward specific proposals at their annual meetings to:
(a) make the best use of existing resources and financing instruments and develop a framework for energy investment to accelerate the adoption of technologies which enable cleaner, more efficient energy production and use.
(b) explore opportunities within their existing and new lending portfolios to increase the volume of investments made on renewable energy and energy efficiency technologies consistent with the MDBs’ core mission of poverty reduction.
(c) work with interested borrower countries with significant energy requirements to identify less greenhouse gas intensive growth options which meet their priorities; and ensure that such options are integrated into Country Assistance Strategies.
(d) develop local commercial capacity to develop and finance cost-effective projects that promote energy efficiency and low-carbon energy sources.
Public service agreement 27 on climate change covers three major challenges—to reduce overall greenhouse gas emissions by working for a global deal, to reduce UK emissions to put us in the forefront of the move to a low carbon economy; and to ensure the country is adapting to the consequences of climate change which are already unavoidable. Progress has been made on all three fronts but much more still needs to be done.
The Climate Change Bill, Energy Bill and Planning Bill will support the infrastructure changes required in the UK, establish binding carbon budgets, and set up the Committee on Climate Change. The Committee’s first report is due in December.
The Government are supporting proposals for strengthening the EU Emissions Trading Scheme, which places a cap on emissions from energy intensive sectors and puts a price on carbon, as the basis for a global carbon trading market.
The Government are consulting on a Renewable Energy Strategy as part of meeting the EU target to source 20 per cent. of the EU’s energy from renewable sources by 2020. It is also taking steps to enable nuclear new build and is developing an approach to carbon capture and storage.
The Government are also working with other countries to secure a good outcome from negotiations on the EU’s emissions target for 2020 and to prepare for the Conference of the Parties to the United Nations Framework Convention on Climate Change in December 2009.