**Check against delivery
We are here today facing an environment where global demand for energy is projected to increase significantly over the long-term. However we also face soft demand conditions in the short term and a significant reduction in investment as a result of the global financial crisis.
Over the medium to long term, we also face the challenge of reducing greenhouse gas emissions from the energy sector, with the need to attract the necessary investment to achieve this transition.
Australia's economy relies heavily on fossil fuels with more than 80 per cent of our electricity provided by coal-fired power stations. As Minister Scajola said at the Italian Confederation of Industries meeting on Thursday, one half of the Chinese word for crisis is opportunity. Reflecting the reality of the role coal plays globally, Australia is taking the opportunity to make significant investments in Carbon Capture and Storage.
We have taken a lead role in the establishment of the Global Carbon Capture and Storage Institute.
The Institute has received strong international support with 85 foundation members, including 16 Governments.Existing and new support is most welcome.
Through international collaboration with bodies such as the International Energy Agency, the Carbon Sequestration Leadership Forum, and the Four Kingdoms Initiative, the Institute aims to facilitate the G8 objective to deliver at least 20 industrial scale CCS projects around the world by 2020.
While CCS has the potential to reduce emissions from the stationary energy sector, we must not forget that it also has an important role to play in the oil and gas sector.
While CCS may play a role in reducing emissions, it will not be the only response.
Increased use of LNG and nuclear power, alongside energy efficiency and renewables will also play an important role.
The Australian Government's support for CCS sits alongside support for renewables, as reflected in our commitment to join IRENA.
Like the challenges CCS faces in reaching widespread deployment, we also need to recognise the challenges faced by renewables, whether it be the variability and unpredictability of wind, the challenge of storage associated with solar, or proving geothermal at a scale sufficient to provide significant baseload power.
CCS, nuclear, energy efficiency, renewables and network infrastructure will require significant investment in coming years.
Policy and regulatory measures, such as introducing a price on carbon must ensure necessary investment is brought forward to facilitate technological developments.
The challenges we face in reducing emissions from the energy sector are significant.
Those of us gathered here today will have a key role in ensuring this smooth transition occurs.
Thank you.