Conference on APEC Green Energy Finance Session V: Cooperation Prospect in Green Energy Finance Field in APEC region The Path to a Low Carbon APEC: Renewable Energy Doubling and Energy Intensity Reduction Goal Jyuung-Shiauu Chern Section Chief, Planning Division Bureau of Energy, Ministry of Economic Affairs Chinese Taipei 19 August 2016

Leaders’ Commitment to a Low Carbon APEC 2015 APEC Leaders’ Declaration “We therefore reaffirm our aspirational goals to reduce aggregate energy intensity by 45 percent by 2035 and double renewable energy in the regional energy mix by 2030 to achieve sustainable and resilient energy development within the Asia-Pacific. “ “We reaffirm our commitment to rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption while recognizing the importance of providing those in need with essential energy services.”

Ongoing Cooperative Activities for a Low Carbon APEC APEC Green Energy Finance Initiative To provide a framework and platform for dialogue and cooperation as well as to promote the public private partnership in green energy finance. Energy Smart Communities Initiative To aid economies in achieving energy intensity reduction goals by disseminating best practices in buildings, transportation, smart grids, and green jobs and low carbon model town. Peer Review on Energy Efficiency (PREE) and Follow-Ups To provide recommendations for a volunteer economy based on best/high performance practices Peer Review on Low Carbon Energy Policies To assist volunteer APEC economy to promote low-emission power sources by providing recommendations from APEC peer review experts. Peer Review on Fossil Fuel Subsidy Reform To provide targeted assistance for APEC economies that wish to implement reform, and to develop useful analysis and effective recommendations for the Reviewed Economy

APEC Energy Smart Communities Initiative (ESCI) Knowledge Sharing Platform http://esci-ksp.org Smart Transport Smart Buildings Smart Grids Smart Jobs Low Carbon Model Towns ST-1: Energy Efficient Urban Transport Network ST-2: Energy Efficient Freight Transport Network ST-3: Electromobility Survey and Roadmap ST-4: Electric Vehicle Demonstrations SB-1: Low Energy Buildings Network SB-2: Materials Testing and Ratings Center SB-3: Cool Roof Demonstrations SB-4: Low Energy Windows Demonstrations SG-1: Smart Grid Survey and Roadmap SG-2: Smart Grid Test Bed Network SJ-1: Energy Efficiency Training Curricula SJ-2: Energy Efficiency School Curricula SJ-3: Sister Schools Programs

APEC Renewable Energy Doubling Goal Background The United Nations Secretary-Genera launched a pioneering new initiative, “Sustainable Energy for All” (SE4ALL), on 1 Nov 2011, to mobilize urgent global action: Double the share of renewable energy in the global energy mix by 2030. In 2014, APEC Leaders and Energy Ministers endorsed the aspirational goal of “doubling the share of renewables in the APEC energy mix, including in power generation, from 2010 levels by 2030.” APEC Energy Ministers instructed the Energy Working Group to develop the road map to achieve this doubling goal. 4

APEC Discussion on Definition of Renewable Energy Energy in New and Renewable Questionnaire Fuel Wood & Wood Waste Hydro Bagasse Geothermal Charcoal Electricity Other Biomass Heat Biogas Solar Industrial Waste Photovoltaic Municipal Solid Waste Thermal Liquid Biofuels Electricity Biogasoline Heat Bioethanol Tide, Wave and Ocean Bio-jet Wind Biodiesels BIOMASS ENERGY Often the use of traditional biomass leads to high pollution levels, forest degradation, and deforestation.

Doubling RE vs. Doubling Modern RE Estimated RE Share of Global Final Energy Consumption, 2011 Source: REN (2013) 19 100 19 – 9.3 100 – 9.3 9.7 90.7 10.7 100 Modern RE = = RE = =

Filling the Gap to Reach the RE Doubling Goal Data Collection Potential Evaluation Strategic Roadmap Gap Criterion Report Renewable Energy Doubling Goal

GAP Filling the Gap to Reach the RE Doubling Goal Renewable Energy Biomass ? Wind ? Solar PV ? GAP Renewable Energy Current RE Target 2030 A Roadmap will be developed in the following year with member economies’ cooperation within APEC Energy Working Group.

APEC Energy Intensity Reduction Goal Background In 2010’s Yokohama APEC Leaders Growth Strategy: “APEC will assess the potential for reducing the energy intensity of economic output in APEC economies between 2005 and 2030, beyond the 25 percent aspirational goal already agreed to by APEC Leaders in 2007. In 2011, APEC Economic Leaders’ Declaration adopted a goal of reducing the APEC-wide energy intensity (that is energy demand/GDP) by 45% between 2005 and 2035.

Monitoring of APEC Energy Demand According to APERC’s study, final energy demand rises 32% from 2013 level by 2040. APEC’s energy intensity reduction target of 45% cannot be met by 2035 in the BAU scenario. -Substantial action must be taken to change the path of APEC’s growing energy demand. -APERC will further explain their study on the scenario of mitigating growing energy demand.

APEC’s Cooperation on Energy Efficiency Improvement APEC's aggregate energy intensity reduction goal by 45 % by 2035 APEC Leaders Honolulu Meeting Energy intensity reduction goal of APEC region by at least 25% by 2030 Introduction of PREE APEC Leaders Sydney Meeting 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 PREE (Peer Review on Energy Efficiency) Follow-up PREE CEEDS (Cooperative Energy Efficiency Design for Sustainability) 1.New Zealand 2. Chile 3.Viet Nam 4.Thailand 5.Chinese Taipei 6.Peru 7.Malaysia 8.Indonesia 9.The Philippines 10.Brunei Darussalam 1.Viet Nam 2.The Philippines 3.Thailand 1.Chinese Taipei/Japan 2.Thailand/Hong Kong 3.USA/ Singapore 4.Thailand/ Chinese Taipei (EE Standards and Labeling, S&L) (Building Energy Efficiency Codes and Labeling) (Energy Efficiency for Urban Transport) (ESCO Industry)

Fossil Fuel Subsidy Reform Background In 2009, the leaders of the Group of Twenty (G-20) countries agreed to phase-out inefficient fossil-fuel subsidies over the medium term. In 2009, APEC Leaders committed to: “rationalize and phase-out inefficient fossil-fuel subsidies that encourage wasteful consumption, while recognizing the importance of providing those in need with essential energy services.” In 2013, APEC Energy Working Group (EWG) developed a voluntary peer review of inefficient fossil fuel subsidy reform to assess APEC’s progress towards its green growth agenda 2014 2015 2016 2017 Peru U.S-China (under G20, ongoing) New Zealand The Philippines Chinese Taipei Viet Nam Brunei Darussalam

USD 93 saved per tonne of CO2e abated from FFSR Fossil Fuel Subsidy Reform Fossil Fuel subsidies are a barrier for clean energy development and reforms can redirect savings to cleaner, renewable energy options. 11% USD 93 saved per tonne of CO2e abated from FFSR Making the case for reinvestment into renewables for future sustainable energy systems 18% GHG savings: Research across 20 countries finds average national emissions reductions of 11 per cent through phase out of fossil fuel subsidies by 2020. Leading to average annual saving to governments of close to USD 93 per tonne of GHG emissions removed, or a total (across just 20 countries) of 2.8 Gt of CO2e (Merrill, Bassi, Bridle, & Christensen, 2015). A review of research found projected global emissions reductions from the phase out of fossil fuel subsidies of between 6 and 13 per cent by 2050 (Merrill, Harris, Casier, & Bassi, 2015). By reinvesting a modest proportion of savings from fossil fuel subsidies into energy efficiency and renewable energy, this national average emission reduction could be improved to 18 per cent (Merrill, Bassi, Bridle, & Christensen2015a). Source: Merrill, L., Bassi, A.M., Bridle, R. & Christensen L.T. (2015). Tackling fossil fuel subsidies and levelling the energy playing field. NCM/GSI. Retrieved from http://norden.diva-portal.org/smash/get/diva2:860647/FULLTEXT02.pdf

Renewables: In 2014 fossil fuel subsidies stood at almost four times the level of subsidies to renewable energy (USD 135 billion) (IEA , 2015).   Climate Finance: Fossil fuel subsidies are five times the amount that the world has promised to raise annually toward low-emission and climate-resilient development pathways by 2020 (USD 100 billion annual target).

Financing Development: FFSR is included under Goal 12 within the Sustainable Development Goals: "Ensure sustainable consumption and production patterns" as a “Means of Implementation,” and also within the Addis Ababa Action Agenda for Financing for Development (both agreed in 2015). FFSR is a key consideration regarding domestic resource mobilization. Consumer subsidies to fossil fuel subsidies are around four times as large as OECD aid spending (USD 135 billion) in 2014. GDP: Research from the IMF finds that reform and accurate taxation of fossil fuels could provide an average revenue stream to governments of around 2.6 per cent of GDP globally (Parry, Heine, Lis, Li, & Sears, 2014). Furthermore, the economic distortion from transport fuel subsidies has been estimated to amount to USD 44 billion of deadweight loss (2012) across 10 countries with the highest subsidies (Davis, 2014). Source: http://www.iisd.org/gsi/sites/default/files/FFSR_and_climate_infographic_snd10-12_0.jpg

Way Forward APEC Green Energy Finance Initiative will strengthen its role in serving as a platform for dialogues among relevant cooperative activities of APEC. Under the framework of APEC Green Energy Finance Initiative, an in-depth capacity building activities will be conducted in 2017 to engage interested economies and related APEC sub-forums. Constructive public-private partnership and regular dialogue between energy and finance will also be pursued for greater synergy in promoting green energy development. Further APEC’s action to promote green energy finance will be discussed in Roundtable

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