2. 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.

3. Opening up and liberalization natural gas and electricity markets
REGULATORY ISSUE
Opening up and liberalization of
natural gas and electricity markets

4. 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

5. EU COMMON RULES Market opening (timing & level of opening)
Unbundling (Chinese walls, legal, ownwership)
Third party network access
Tarification, transparency
Regulatory systems

6. PROFOUND IMPACT Liberalization & re-regulation
Market and industry structures
Nature of competition
How business is conducted
Behaviour of governments
Problems & concerns

7. 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

8. 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

9. STANDARD SETTING For Fossil Energy and Mineral Reserves and Resources
United Nations Framework Classification
For
Fossil Energy and
Mineral Reserves and Resources

10. 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

11. 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

12. 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

13. 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

14. 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.

15. 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)

16. UNFC Governing Structure