The Importance of the IEA-Russia Energy Dialogue Joint IEA-Federal Tariff Service Workshop IEA, Paris, May 2010 Mr. Nobuo Tanaka Executive Director International Energy Agency © OECD/IEA

Efficiency measures account for 2/3 of the 3.8Gt abatement in 2020, with renewables contributing to 1/5. With substantial abatement potential outside the OECD+ region, financing will hold a key to the energy sector meeting a carbon-constrained trajectory Scenario Reference Scenario Gt Efficiency – 57% Renewables/ Biofuels – 23% Nuclear – 10% CCS – 10% OECD+ Other Major Economies Other Countries Efficiency – 45% Renewables/ Biofuels – 21% Nuclear – 13% CCS – 20% Efficiency – 67% Renewables/ Biofuels – 19% Nuclear– 8% CCS – 6% Efficiency – 55% Renewables/ Biofuels – 34% Nuclear – 9% 3.8 Gt 13.8 Gt WorldBy region 7 World abatement of energy-related CO 2 emissions in a Carbon-constrained outlook World abatement of energy-related CO 2 emissions in a Carbon-constrained outlook © OECD/IEA

End-use efficiency, renewables and nuclear account for most CO 2 abatement in 2020 relative to the Reference Scenario, with CCS subsequently also playing a key role Gt 450 Scenario Reference Scenario Efficiency End-use Power plants Renewables Biofuels Nuclear CCS AbatementInvestment (Mt CO 2 )($2008 billion) Russia energy-related CO 2 emissions abatement, relative to Reference Scenario Russia energy-related CO 2 emissions abatement, relative to Reference Scenario © OECD/IEA

© OECD/IEA Fossil fuel subsidies – by country and as a share of GDP, 2008 Global subsidized consumption of fossil fuels amounted to US$ 557 billion in Of the countries surveyed this represents 2.1% of GDP (PPP) on average

© OECD/IEA World abatement of energy-related CO 2 emissions Although the savings are not strictly cumulative, the Copenhagen Accord and the G-20 commitment to phase out subsidies are complementary steps towards the 450 Scenario Gt 450 Scenario Subsidy phase out 3.8 Gt 13.8 Gt Reference Scenario 450 Scenario Current Pledges Reference Scenario Copenhagen Accord