Elements of EMM9 Agenda (Preliminary) METI Ministry of Economy, Trade and Industry Elements of EMM9 Agenda (Preliminary) - Proposal by Japan - Thank you chairs. Good afternoon everybody. Let me explain about the Japanese proposal of the elements of coming EMM9 Agenda. First of all, my apology for the late submission of the SCM1-03 document, but I hope there will be a lively discussion today.

Skeleton of EMM9 Agenda Energy Security Energy Efficiency Non-fossil Energy Nuclear Energy Cooperative Energy Solutions towards Low-carbon APEC This is the skeleton or outline of the EMM9 Agenda, which is composed of five parts, namely, Energy Security, Energy Efficiency, Non-fossil Energy, Nuclear Energy, and last but not the least, Cooperative Energy Solutions towards Low-carbon APEC, a possible future project of EWG.

Energy Security Emergency preparedness Oil price stability Joint programs with IEA on emergency response related activities Oil price stability IEA training program on energy statistics Improved transparency of energy commodities’ markets Phase out of inefficient fossil fuel subsidies The 1st element we proposed is “Energy Security” for which everybody agree on its importance. We put three sub-elements under Energy Security. The 1st sub-element is “Emergency Preparedness.” As we all know, we are instructed by our minsters at EMM8 in Darwin to strengthen cooperation with other relevant international fora, such as the IEA, for coordinating efforts at the time of energy supply disruption. In this regard, we think the IEA Training Program on Emergency Response would be beneficial for interested APEC member economies. We would like to therefore suggest EWG to consider developing joint programs with IEA on emergency response related activities such as workshops and emergency response exercise.   The 2nd sub-element is “Oil Price Stability.” While EGEDA has been playing an important role in APEC for oil and gas data collection, transparent and reliable oil market data remains essential for oil price stability. IEA’s efforts, especially its Training Program on Energy Statistics, would be also beneficial and useful for interested APEC member economies to develop their domestic capabilities in statistics. In addition, as it was pointed out at G20 meeting, It would be also important to urge relevant organizations to conduct harmonized actions such as improving transparency of energy commodities’ markets, for which we, as APEC, could initiate a cooperative work.   The 3rd sub-element is “Phase out of Inefficient Fossil Fuel Subsidies.” Inefficient fossil fuel subsidies encourage wasteful consumption, distort market, impede investment in clean energy sources and undermine efforts to deal with climate change. We thus might need to initiate a cooperative action in our region, based on our own circumstances, towards rationalising and phasing out inefficient fossil fuel subsidies over the medium term as it was directed by our leaders last week in Singapore.

Energy Efficiency Review of APEC energy efficiency goals 25% improvement from 2005 to 2030 Enhancement of PREE mechanism Report to APEC leaders in 2010 Follow-up PREE, Capacity building projects Clean Use of Fossil Energies Dominant role of coal Importance of clean use of coal The 2nd element is “Energy Efficiency” for which APEC members have been conducting several activities domestically or regionally. We put again three sub-elements under Energy Efficiency. The 1st one is “Review of APEC energy efficiency goals.” We have been working hard towards achieving an APEC-wide regional goal of reducing energy intensity by at least 25 percent by 2030 as agreed in 2007. And we heard good news yesterday at the APERC Workshop that the goal will be most likely achieved. Furthermore, several economies have set their own target higher than the APEC goal. It might be therefore an appropriate timing to start considering review and revise the energy efficiency goal to renew our commitments for our sustainable future.   The 2nd one is ”Enhancement of PREE Mechanism.” So far, four PREEs have been conducted successfully in 2009, and using this opportunity I would like to thank all members for your cooperation. The compendium of energy efficiency policies and measures of APEC member economies will be ready as announced at the APERC Workshop yesterday. While these positive outcomes need to be reported to APEC Leaders next year, and is important to continue the PREE program to cover remaining member economies as much as possible, the way to further enhance the program might be worse to be considered. Possible ideas could be to develop and implement a follow-up PREE mechanism as well as capacity building projects in some specific areas identified through the PREE program.    The 3rd sub-element is the “Clean Use of Fossil Energies.” Dominant role of coal in terms of production and consumption is a characteristic of the APEC energy market as we all know. Reaffirmation of the importance of clean and efficient use of coal by sharing such vital role would be essential for us to discuss and ensure energy security in the APEC region. APEC could be therefore suggested to conduct an energy market research emphasizing such a dominant role of coal.

Outlook for Sustainable Fossil Energy Development in APEC (Japan Self-fund Project) Research on: Status of production, consumption, export and import Supply and demand outlook Policies and measures applied to utilization Status of development and deployment of high-efficiency/low-carbon energy technologies Challenges and suggestions to assure the sustainable use To initiate the 3rd sub-element activity of “Clean Use of Fossil Energies,” Japan is proposing a self-fund project of “Outlook for Sustainable Fossil Energy Development in APEC” to EWG38. The objective of this project is to promote the development and deployment of high-efficiency/ low-carbon energy technologies in APEC region to ensure sustainable development of our economy, while reconfirming the ongoing role of fossil energy resources . Research will be conducted on, as examples: - Status of production, consumption, export and import of fossil energy resources - Supply and demand outlook for each fossil energy resource - Policies and measures applied to utilization of fossil energy resources - Status of development and deployment of high-efficiency/low-carbon energy technologies, and - Challenges and suggestions to assure the sustainable use of fossil energy sources while further promoting and securing the development and deployment of high-efficiency/low-carbon energy technologies.   The research and analysis project is aligned with both EMM 8 Declaration and APEC Economic Leaders’ Declaration in 2007, and will be conducted in cooperation with EGCFE and EGEDA where appropriate. Project will be conducted in cooperation with EGCFE and EGEDA

Non-fossil Energy Voluntary goals and action plans of non-fossil energy introduction Peer review on non-fossil energy The 3rd element is “Non-fossil Energies” for which we are proposing to start considering to set voluntary goals and action plans of non-fossil energy introduction. Along the rapid development and deployment of non-fossil energy technologies among APEC member economies, we thought it might be an appropriate timing for us to start considering to expand the peer review program, which started as a first step in energy efficiency policy area, in the field of non-fossil energy technologies as well. For that, APEC may agree upon a common voluntary goals and action plans as we did for energy efficiency, either in quantitative manner, of introduction of non-fossil energies aiming at year 2030.  

Nuclear Energy Enhancement of nuclear safety APEC Network to enhance nuclear safety (Ref.: IAEA - ANSN: Asian Nuclear Safety Network) The 4th element is “Nuclear Energy,” for which we would like to reconfirm the importance of enhancement safety of nuclear energy. A growing number of countries have expressed their interests in nuclear power programmes as a means to addressing climate change and energy security concerns worldwide. And in a nuclear power programme, safety is one of the fundamental elements, and the economies which have intention of using nuclear energy should make every efforts to improve it continuously. In this regard, we thought APEC may agree on developing a networking of APEC member economies to enhance nuclear safety, which could be similar to an activity known as the Asian Nuclear Safety Network of the International Atomic Energy Agency. One of the ideas could be, as a 1st step, inviting people in charge of nuclear safety such as IAEA to our meeting to share information and their experiences with us.

Cooperative Energy Solutions towards Low-carbon APEC International low-carbon model town demonstration project Town with low-carbon technologies to achieve the maximum energy efficiency and deffosilisation Feasibility studies of several areas to demonstrate effective usage of low-carbon technologies in interested APEC member economies Last but not the least, we would like to propose an “International low-carbon model town demonstration project” with a broader theme of “Cooperative Energy Solutions towards Low-carbon APEC.” In order to promote introduction of low-carbon technologies, we think it would be effective to demonstrate some successful models of organized usage of low-carbon technologies in an area (I mean town or district) in which several low-carbon technologies are implemented and interconnected in well organized manner to achieve the maximum energy efficiency and deffosilisation in such area. APEC might consider initiating a program to conduct feasibility studies of several areas to demonstrate effective usage of low-carbon technologies in interested APEC member economies.

APEC Low-carbon Town Project Objectives Demonstration of some successful models of organized usage of low-carbon technologies in an area (e.g. town, district) Facilitation of technological developments related to low-carbon energies Urge municipals (or economies) to introduce low-carbon energy technologies in their development projects As I said, major objective of the project is to promote introduction of low-carbon technologies through demonstration of some successful models of organized usage of low-carbon technologies in an area. The project would also facilitate technological developments in different fields related to low-carbon energies. And this project would be also expected to urge municipals (or economies) to introduce low-carbon technologies in their area development projects.

Technologies in the Projects Smart-grid Regional heat-pomp system Electric-vehicle Energy efficient building complex Zero-emission resort Fuel cell Regional gas co-generation system Etc. Technologies to be incorporated in this project would be, for example, smart-grid, regional heat-pomp system, electric-vehicle, energy efficient building complex, zero-emission resort, fuel cell, and regional gas co-generation system, in which these technologies are implemented and interconnected in well organized manner to achieve the maximum energy efficiency and deffosilisation in such area. Interconnected in well organized manner to achieve the maximum energy efficiency and deffosilisation

Feasibility studies of 10 to 20 areas in interested APEC member economies will be conducted APEC Low-carbon Town Our idea is to conduct feasibility studies of several areas, may be 10 to 20 areas, to demonstrate effective usage of low-carbon technologies under the concept of “APEC Low-carbon Town” though it is a tentative name, in interested APEC member economies.

Preparatory Study on “APEC Low-carbon Town Project“ (Japan Self-fund Project) Research on: Basic concepts of “Low-carbon Towns/Cities” Project Best available technologies Potential areas in the APEC region Financing options Schedule outline To further explore the idea of “APEC Low-carbon Town Project,” Japan is proposing a self-fund project of “Preparatory Study on APEC Low-carbon Town Project” to EWG38. The objective of this project is to develop a roadmap which will form a base of possible future project to promote urban development designing with advanced low-carbon energy technologies. Research will be conducted on* - Development of basic concepts of “Low-carbon Towns/Cities” project - Best available low-carbon energy technologies - Potential areas in the APEC region, and - Financing options The preparatory study is aligned with both EMM 8 Declaration and APEC Economic Leaders’ Declaration in 2007, and will be conducted in cooperation with relevant expert groups of EWG where appropriate. Project will be conducted in cooperation with relevant expert group of EWG