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

October 11, 2007 Norine Kennedy, USCIB International Energy Efficiency (E/e) Why Care? Challenges (with brief examples) ICC : International Energy Efficiency Paper What Next?

October 11, 2007 Norine Kennedy, USCIB International Energy 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 Group Co-Leads: Brian P. Flannery, Exxonmobil and Lynn Schloesser, Eastman Chemical Multisectoral members – producers, transport, consumers International network via ICC and BIAC Holistic view: EHS issues, trade, innovation, investment, intellectual property rights, etc.

October 11, 2007 Norine Kennedy, USCIB 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 dont 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

October 11, 2007 Norine Kennedy, USCIB 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)

October 11, 2007 Norine Kennedy, USCIB 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

October 11, 2007 Norine Kennedy, USCIB 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 Convention G8 International Energy Agency (IEA) Regional Intergovernmental Groups: EU APEC Major Economies Meeting Initiative (MEM)

October 11, 2007 Norine Kennedy, USCIB The Challenge: Top Down Approaches to E/e Top Down Targets and Approaches UN : Commission on Sustainable Development (CSD); UN Climate Change Treaty G8 IEA : World Energy Investment Outlook Regional 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?

October 11, 2007 Norine Kennedy, USCIB EU: Action Plan for E/e ( ) -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.)

October 11, 2007 Norine Kennedy, USCIB 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

October 11, 2007 Norine Kennedy, USCIB 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 Development Promoting Innovation and Investment Scientifically based cost-effective policy and practice Corporate Responsibility Fighting Bribery and Corruption

October 11, 2007 Norine Kennedy, USCIB 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?

October 11, 2007 Norine Kennedy, USCIB 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

October 11, 2007 Norine Kennedy, USCIB E/e: Emerging Issues and Opportunities Energy Access and Security Energy Management System standards Product-based/Sustainable Consumption Policies Carbon Footprint

October 11, 2007 Norine Kennedy, USCIB THANK YOU!!