Paris
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It's my pleasure to report on the International Energy Agency's Ministerial meeting for 2011.
The past two days have brought together Ministers and delegates from 37 countries representing more than three quarters of the world's energy consumption.
Alongside Ministers, the industry here today also represents a global market value of US$1.8 trillion.
Globally we face significant challenges, in terms of meeting growing global demand for energy but also in seeking to reduce global greenhouse gas emissions to ensure a secure energy future for our people.
Indeed, no country can achieve energy security, economic development and environmental sustainability alone.
In this context, the IEA remains as vital to the global policy agenda as when the Agency was founded 37 years ago.
The mission of the IEA is to foster energy security, economic and environmental sustainability and engagement worldwide.
And this has been central to the discussions at this week's Ministerial meeting.
Since our last meeting in 2009, the world has experienced a period of global disruption and uncertainty.
Events such as those in North Africa and the Middle East, the Fukushima accident in Japan and the Deepwater Horizon incident in the Gulf of Mexico remind us that threats to our energy security can occur unexpectedly.
These events serve to highlight the importance of countries working collectively and responsively to ensure access to secure and sustainable energy supplies.
It also reminds us of the need to continually improve our standards of safety as well as ensuring we engage the community to retain our social licence to operate.
Looking to the future, the scale and breadth of the energy challenge ahead is enormous.
The forthcoming World Energy Outlook 2011 – which we were briefed on – highlights this.
Globally demand for energy is forecast to grow by a third by 2035, with non-OECD countries accounting for 90 per cent of that growth.
A substantive challenge therefore is bringing on the investment needed to meet energy supply infrastructure needs – the bulk of which will come from the private sector.
The IEA predicts global investment in the order of $40 trillion in US dollars will be required from now until 2035 – two thirds in emerging economies.
Our partners from industry need to know that governments are providing legal, regulatory and policy frameworks that are stable.
And in recognition, Ministers here today have expressed their shared resolve to pursue such policy frameworks.
Ministers also recognise that investment will impose costs on the community and energy users that we must be mindful of.
Fossil fuels are predicted to continue to account for the majority of the increase in energy demand.
Coal will continue to be the world’s fastest growing energy source for some time.
Under current policy settings coal could rise by two-thirds, after already meeting nearly a half of the growth in energy demand in the last decade.
And with it comes the challenge of reducing global greenhouse gas emissions.
Greater investment in research, development and demonstration of cleaner-energy technologies is needed if we are to reduce emissions growth.
And technologies such as carbon capture and storage have an important role to play.
Particularly, if we are to reduce emissions from investments that are continuing to be made in coal-fired power stations today.
It is a stark reality that greater deployment of low-carbon technologies is needed to tackle both our emissions and energy security goals.
Ministers noted the importance of investment in these technologies and the role a price on carbon can make to accelerate the move to a more sustainable energy path.
The WEO also highlights that we are potentially entering a 'Golden Age of Gas'.
Ministers noted that there has been increasing development in natural gas markets, with production set to increase by over 50 per cent by 2035.
The flexibility of gas and mounting concerns over energy security and climate change, make it an attractive fuel.
It is important that all growing markets, including gas have access to transparent and accurate data to assist in minimising price volatility.
That is why Ministers continue to support the important work of the IEA and others for the Joint Organisations Data Initiative, including the expansion of gas.
And while to a lesser extent than gas, wind is also expected to increase its share of installed electricity capacity as a low cost form of renewable energy.
With nuclear energy providing 14 per cent of the world’s electricity, Ministers noted the important role it’s had to play and that reducing its role in the energy mix is likely to increase dependency on coal and gas use.
Post Fukushima some countries are faced with very difficult questions regarding support for nuclear power.
I simply say this; it is up to each and every country to determine their own energy mix based on a number of factors including their natural resources endowment, technology options and individual circumstances.
And that if we are to lessen our use of nuclear, we must of course think carefully about the consequences for efforts to address the twin challenges of energy security and sustainability.
Ministers recognised that the energy circumstance of every country is different.
And to this end, a number of countries are increasingly diversifying their energy mix.
Many countries are adopting targets and policies to drive investment in a variety of renewable energy technologies.
Ministers endorsed the need to support R&D and accelerate the deployment of safe renewable and other low-carbon energy technologies.
Energy efficiency also has an important role to play.
Sometimes called the ‘quiet giant’ of the clean energy options, energy efficiency provides a powerful opportunity to address both security and sustainability concerns in a cost-effective way.
Accordingly, members have made good progress in implementing the IEA’s 25 energy efficiency policy recommendations according to their individual circumstances and we have today endorsed the IEA’s update of these policy recommendations.
Of course no discussion of the IEA would be complete without reference to oil.
Oil security was after all the primary driver behind the establishment of the IEA and remains critically important today.
The WEO projects that the cost of bringing oil to the market will rise and our dependency on oil will continue in most regions of the world, most notably in Asia.
It is therefore important that investment in production capacity and supporting infrastructure continues.
Ministers also acknowledge the need to strengthen global energy security by broadening and improving emergency-response cooperation.
While increasing energy demand brings with it substantial challenges in terms of addressing climate change, we must also recognise that energy is vital to lifting people out of poverty and improving their standard of living.
Balance must be struck between these objectives.
The rise of emerging economies – and their role in energy issues – is, therefore, increasingly important.
We greatly appreciate the participation of partners Brazil, China, India, Indonesia, Mexico, South Africa and Russia, as well as Chile and Estonia as candidate countries for accession to the IEA.
Just as partner economies are growing, the IEA is committed to growing its connection with these nations and beyond.
The IEA's bilateral agreement of Joint Statements and Work Programmes with a number of partner countries gives effect to this commitment.
Partnerships are invaluable, between nations and between the public and private sectors.
Conclusion
This meeting has given Ministers a platform to express a shared resolve, one that seeks a secure and sustainable energy future, with robust, cleaner and diverse energy supplies.
And it is reconfirmed for all of us that the International Energy Agency has a key role to play in encouraging global cooperation on these vital issues.
I thank the agency’s Executive Director, Maria van der Hoeven, and her staff for their valuable contribution to that goal and this meeting.
Thank you