Energy security of APEC economies: policy options for energy resource diversification in the Asia-Pacific region 47th Energy Working Group Meeting Kunming, China May 2014

1 Relevance – Benefits to region  In order to deploy alternative clean energy technologies, extremely high investments are required to build new energy infrastructure for environmentally friendly types of fuel.  Since no less than 20 per cent of APEC primary energy demand by 2035 will be met by alternatives, there is a fundamental problem with discrepancy of efforts spent on reaching the progress with alternatives and the actual significance of these measures. Putting forward this project, we propose to research and analyse the best available experience with policy incentives which could lead to correction of this imbalance:  To explore how APEC economies have been modernising local energy legislation considering the ever changing circumstances.  To find ways in which parallels and in essence harmony can be found between APEC economies in this field. We suppose this project will allow to build some basis for the adoption of shared energy diversification policy incentives among all APEC economies and decrease costs of developing and updating their national energy resource diversification strategies. 2

2 Relevance – Rank The theme of the project is directly linked to promoting standards, conformity assessment, technical regulations and regulatory cooperation in the APEC region (Rank 1), since:  It is aimed at raising awareness and knowledge on the available most effective energy diversification options.  And facilitating adoption of shared energy diversification methods. 3

Objectives  To analyse existing methods of energy resource diversification in the world and in the APEC region;  To outline a common APEC energy resource diversification strategy by developing consistent energy policy standards and reference procedures for their implementation;  To elaborate the visionary roadmap for energy resource diversification, potentially contributing to the common vision of energy security and sustainability in the APEC region;  To co-ordinate energy diversification policies and set compatible standards and incentives to promote to the adoption of shared energy diversification methods. 4

Alignment – APEC  St. Petersburg Declaration: “While the role of new and innovative sources of energy expands, fossil fuels will continue to play a key role in the APEC energy market”.  The 2013’s APEC Joint Ministerial Statement: “… encourage APEC member economies to manage their dependence on oil and broaden use of natural gas for transportation through policies and measures to promote energy efficiency in transportation and to diversify the fuel mix”. The EWG strictly adheres to promoting best practice principles across a range of energy sector development issues. The proposed project will assist in meeting these principles by summarising and prioritising the available cost competitive policy incentives to implementing energy diversification measures. 5 Alignment – Forum

Workplan 6 January start Policy options for energy resource diversification – by April 2015 APEC common energy resource diversification strategy – by August 2015 Visionary roadmap for implementation of developed measures – by December 2015 December 2015 – End of project

Beneficiaries 7 Government authorities - since the main responsibility for implementation of energy diversification measures bears the government authorities, the priority for participating in the conference will be given for them. Energy experts – might be also invited to the project as guest experts. Industry leaders – the project as a guide for industry to move from reactive to proactive energy policies.

Budget 8 Total fundingAPEC fundingSelf-funding U.S. dollars U.S. dollars U.S. dollars

Your queries and comments are welcome. Thank you for your attention! Talyat Aliev (Mr) Deputy Director, International Cooperation Department Ministry of Energy of the Russian Federation Tel: +7 (495)