1. Policy Options for Energy Resource Diversification in the Asia-Pacific Region 46th Energy Working Group Meeting Da Nang, Viet Nam 2013

2. Relevance of Project 2 Energy diversification policy The reality speaks of the continuing domination of traditional energy resources in the energy mix of APEC economies. It is logical therefore to focus on finding the viable alternatives to the currently prevailing techniques of energy resource diversification and achieving the optimal combination of already available cost-effective energy resources in the APEC energy mix Over 80 percent of APEC’s primary energy demand in 2035 is likely to be met by fossil fuels* *2013’s report on the outlook for APEC’s energy demand and supply - Building of strategic petroleum reserves; - Expansion of exploration and production activities; - Acquisition of foreign energy assets; - Massive investments in clean energy technologies Traditional energy security responses proved to be inadequate in the increasingly adverse global conditions

3. Relevance of Project Realising that APEC energy resource diversification policy needs a comprehensive economically sound energy strategy embracing all aspects of energy security, the Ministry of Energy of the Russian Federation officially announces a new APEC research proposal of the Russian Federation: “Policy Options for Energy Resource Diversification in the Asia-Pacific Region” Realising that APEC energy resource diversification policy needs a comprehensive economically sound energy strategy embracing all aspects of energy security, the Ministry of Energy of the Russian Federation officially announces a new APEC research proposal of the Russian Federation: “Policy Options for Energy Resource Diversification in the Asia-Pacific Region” 3

4. Objectives of Project 4 To outline a common APEC energy resource diversification strategy by developing consistent energy policy standards, and reference procedures for their implementation To co-ordinate energy diversification policies and set compatible standards and incentives to promote to the adoption of shared energy diversification methods To elaborate the visionary roadmap for energy resource diversification, potentially contributing to the common vision of energy security and sustainability in the APEC region

5. Alignment 5 The proposed project is in line with APEC current strategic objectives and priorities: 1. 2007 Darwin and 2010 Fukui Declarations brought the issues of energy security to the top of APEC’s agenda 2. 2012 St. Petersburg Declaration defined the main challenges and strategic choices for energy security -"WHILE THE ROLE OF NEW AND INNOVATIVE SOURCES OF ENERGY EXPANDS, FOSSIL FUELS WILL CONTINUE TO PLAY A KEY ROLE IN THE APEC ENERGY MARKET”. 3. Indonesia as the host of APEC-2013 has been repeatedly stressing the urgent need for energy resource diversification in the APEC region -THE 2013’S APEC JOINT MINISTERIAL STATEMENT UNDERLINED THAT THE APEC NEEDS TO DEVELOP MEASURES AIMED AT “ENCOURAGING APEC MEMBER ECONOMIES TO MANAGE THEIR DEPENDENCE ON OIL AND BROADEN USE OF NATURAL GAS FOR TRANSPORTATION THROUGH POLICIES AND MEASURES TO PROMOTE ENERGY EFFICIENCY IN TRANSPORTATION AND TO DIVERSIFY THE FUEL MIX”.

6. Project Timeline 6 Three stages of Project execution: Stage 1. Policy options for energy resource diversification (May- August 2014) Stage 2. APEC common energy resource diversification strategy (September-December 2014) Stage 3. Visionary roadmap for energy resource diversification (January-April 2015) May 2014 – April 2015 (12 months)

7. Stakeholders 7 Project beneficiaries: Policy makers of APEC Member Economies, equipped with the concise and to the point policy recommendations and options for energy resource diversification Academics, scientists, researchers, advanced students, entrepreneurs, provided with comprehensive overview of the state-of-the-art studies and value- added independent research

8. Communication 8 The final report will be published in Internet for the benefit of all relevant project stakeholders The major step- by-step achievements of the project will be published on an open access in Internet on the project’s web-site The report containing policy recommendations for the major APEC economies on energy resource diversification could be published as a special booklet for the wide audience The research paper with the common APEC policy strategy for energy resource diversification could be presented to the APEC Secretariat

9. Project Budget 9 Total BudgetAPEC fundingSelf-funding $185,000$135,000$50,000

10. Your queries and comments are welcome. Thank you for your attention! Ms. Maria Volkova International Cooperation Department Ministry of Energy of the Russian Federation Tel: +7 495 631-86-50 Fax: +7 495 631-81-50 Mob: +7 926 527-96-09 E-mail: VolkovaMO@minenergo.gov.ru www.minenergo.gov.ru