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APEC delegates, distinguished guests, ladies and gentlemen.
It is a great privilege to welcome you to the APEC Energy Trade and Investment Roundtable here in tropical North Queensland; one of Australia's world-renowned tourism destinations.
I am the Minister for Tourism as well as the Minister for Resources and Energy, so I am always pleased to see meetings such as these supporting our industry.
I am sure you will enjoy the hospitality of Cairns and I hope you also find time to enjoy some of our tourist attractions, whether it be the Great Barrier Reef, Kuranda via the spectacular sky rail, or the tropical forests of Mosman Gorge and the Daintree.
First and foremost, however, this Roundtable has a serious side.
Representing the APEC nations, we are here to tackle the very important issue of global energy security.
For energy security is the key to our economic future.
The objective of this Roundtable is to explore ways for APEC members to improve the efficiency of their energy markets, address barriers to trade and investment, and respond to the challenge of energy security in a sustainable way.
We will be guided in our work by the conclusions drawn by the 8th meeting of APEC Energy Ministers in Darwin last year. Notably:
There continue to be major policy challenges in achieving adequate, reliable, affordable and cleaner energy in APEC economies.
Two important aspects of a cooperative policy response are improving the operation of energy markets and adopting more energy efficient and cleaner fuels and technologies.
APEC delegates from member economies here today know the Energy Working Group provides an ideal forum in which to pursue these vital, international priorities.
And if you're in the energy business, your presence here today provides an ideal opportunity for you to present your views to APEC.
Improving the efficiency of our energy markets is not something governments can do alone - it requires a strong partnership with business.
APEC brings together the world's largest energy producers and consumers.
This creates an unprecedented opportunity to promote well-functioning markets to advance the supply of adequate, reliable, affordable and cleaner energy throughout the world.
Better markets mean better-informed investment decisions.
Better markets also mean greater investment confidence - and it is sustained growth in energy resources and infrastructure investment which will deliver for us on future energy security.
One of the key messages the market has presented to us recently is the link between constrained supply infrastructure and increases in the price of commodities such as oil, coal, gas, and uranium.
The combined effects of rapidly increasing demand and constrained investment, due to distorted energy markets, have sent us a strong message - we need to do more on the supply side.
According to the Asia Pacific Energy Research Centre, meeting the energy demand of the APEC region will require new investment of at least US$6 trillion to 2030.
Open and transparent trade and investment frameworks - underpinned by strong governance arrangements - are the key to continuing investment confidence.
By improving the operation of energy markets in accordance with these principles, we can help provide the certainty needed to bring essential energy investment to life.
This is particularly important at a time of great uncertainty in financial markets around the world.
Despite the current global credit squeeze, this is no time for isolationism or a retreat from competitive markets and good governance.
The success of peaceful globalisation in the 21st century will rest on the free flow of capital, skills and labour, and open engagement within the community of nations.
As the men and women from government and from industry who will make and influence future investment decisions, you are part of the solution.
I also encourage our distinguished guests from;
- the International Energy Agency
- the Energy Charter Treaty
- the Asian Development Bank
- the APEC Investment Experts' Group
- the APEC Energy Business Network; and
- APGAS
to add their expert opinions to the development of the Plan of Action.
As the world's largest exporter of coal, second largest exporter of uranium, and sixth largest LNG exporter, Australia is one of the world's energy superpowers.
This comes with the weight of enormous responsibility because energy security is vital to underpin the continuing economic growth of our neighbours in the Asia Pacific.
It also comes with the responsibility to be part of the solution to the environmental consequences of this economic growth in the context of climate change and pollution pressures.
While our LNG and uranium exports as well as renewables are part of that solution, no response to climate change and pollution can ignore the need to clean up coal, which supplies about 40 per cent of the world's electricity and will continue to do so for decades to come.
That is why Australia is committed to the establishment of the Global Carbon Capture and Storage Institute to demonstrate large-scale low emissions coal projects as soon as possible.
Here in Australia we are also making substantial investments in these technologies.
The Australian Government has established a National Low Emissions Coal Council and a Carbon Storage Taskforce to drive the adoption of low emissions coal technologies.
These initiatives are backed by a $500 million funding commitment and more than $1 billion from industry and state governments.
We are also supporting geothermal energy technologies through a $50 million Geothermal Drilling Program.
The Geothermal Drilling Program is the first program to be launched under the Australian Government's $500 million Renewable Energy Fund announced in the 2008 Budget.
The Renewable Energy Fund will also provide $15 million for research and development of second generation biofuel technologies.
The Australian Government has also committed $100 million to solar technologies through the Energy Innovation Fund and a further $50 million to the Clean Energy Program.
These are massive investments in a cleaner energy future.
Policy uncertainty - particularly in relation to climate change - has been identified as one of the major barriers identified in the Energy Trade and Investment Study by consultants PricewaterhouseCoopers.
In Australia, we are committed to an economically responsible approach to reducing greenhouse gas emissions - through a price on carbon and through investment in clean energy technoloies.
I know the climate change and pollution pressures which come with economic growth will be a major focus of your thinking over the next few days.
Ladies and gentlemen, I appreciate the time you have taken out of your busy schedules to come to Cairns ... I know the next few days will reward your effort and I am sure you will enjoy the experience of tropical north Queensland.