CONTENTS One example each Why these issues are important Regulatory issue Standard-setting issue Why these issues are important What is ECE’s interest/role Procedures, method of work, etc.
Opening up and liberalization natural gas and electricity markets REGULATORY ISSUE Opening up and liberalization of natural gas and electricity markets
ENERGY POLICY PARADIGM SHIFT Prior to mid-1990s Characterized by economies of scale Inherent monopolies (natural gas & electricity) Government guidance/supervision Post mid-1990s Market liberalization in buying and selling Transport and distribution infrastructure: inherent monopoly
EU COMMON RULES Market opening (timing & level of opening) Unbundling (Chinese walls, legal, ownwership) Third party network access Tarification, transparency Regulatory systems
PROFOUND IMPACT Liberalization & re-regulation Market and industry structures Nature of competition How business is conducted Behaviour of governments Problems & concerns
UNECE’S ROLE/INTEREST Assess & understand transformation/ potential implications Dialogue and exchange experiences Transfer EU country experience to non-EU countries Approach: Reports, studies, etc. Addressed by Cttee, WP, Ad Hoc Experts, Workshops 2 UNECE Gas Centre Task Forces EU Directives Transportation issues
PERFORMANCE TO DATE Significant market opening Incomplete liberalization (EU) 17 countries notified 5 under active investigation (anti-competitive behaviour) Efficiency gains/lower prices? Concerns Consolidation National champions Regulatory diversity
STANDARD SETTING For Fossil Energy and Mineral Reserves and Resources United Nations Framework Classification For Fossil Energy and Mineral Reserves and Resources
WHAT IS THE UNFC? Classification system for Fossil Energy and Mineral Reserves & Resources Framework to harmonize existing terminologies & definitions Simple, universally applicable scheme for classifying and evaluating Flexible system for application at global, national, industrial, institutional or financial level
UN Framework Classification (UNFC) Principles Economic and commercial viability Field project status and feasibility Geological knowledge Classification E1 Economic E2 Potentially economic E3 Intrinsically economic F1 Justified F2 Contingent F3 Undefined G1 Reasonably assured G2 Estimated G3 Inferred G4 Potential Total in-place
WHY THE UNFC? Enhance international communications Support business processes & improve efficiency of resource management Facilitate international financial reporting Enhance security of energy supplies (transparency) & associated financial resources
HISTORY OF UNFC Initiated in 1992 1997 ECOSOC resolution for mineral and solid fuels (60 countries tested or using) 2004 ECOSOC resolution for Fossil Energy and Mineral Resources (to apply system worldwide) Develop one common global code for energy & minerals (incl. definitions, specifications, guidelines) Plus institutional governing structure to keep UNFC relevant & updated
STAKEHOLDER PARTICIPATION OR SUPPORT Governments, incl. G7 Ministers of Finance and Governors of Central Banks, NGOs and business community/private sector International organizations/ associations, incl. IAEA, IEA, IEF, OPEC, WEC and WPC. Professional associations incl. AAPG, CRIRSCO, EFG, IASB, IOSCO, IVSC and SPE.
AHGE BUREAU Norway (1), Russian Federation (1) & US (1) NGO (1) & private sector (2) OPEC (1) Combined Reserves International Reporting Standards Cttee (CRIRSCO) (1) Society of Petroleum Engineers (SPE) (1)
UNFC Governing Structure