International Policy on Energy
Efficiency: Synergy or Crossed
Wires?
The U.S. Chamber of Commerce
Emerging Technologies Committee
October 11, 2007
Norine Kennedy, USCIB
International Energy Efficiency (E/e)
 Why Care?
 Challenges (with brief examples)
 ICC : International Energy Efficiency
Paper
 What Next?
October 11, 2007
Norine Kennedy, USCIB
International Energy
Policy @ USCIB
 Role: Unique international advocacy group for U.S. Business
300 members – cos., assocs., law firms (including U.S.
Chamber) Multiple sectors and issues
 Affiliations: International Chamber of Commerce (ICC), OECD
Business and Industry Advisory Committee (BIAC),
International Organization of Employers (IOE)
 Environment Committee
Climate Change Working Group
 International Energy Group
Co-Leads: Brian P. Flannery, Exxonmobil and Lynn
Schloesser, Eastman Chemical
Multisectoral members – producers, transport, consumers
International network via ICC and BIAC
Holistic view: EHS issues, trade, innovation, investment,
intellectual property rights, etc.
October 11, 2007
Norine Kennedy, USCIB
Why should U.S. business
care about international
E/e policy developments?
 A sustainable energy future
 Climate change is the indispensable priority, and E/e
fundamental to that
 Yes, a tremendous amount of repetitive talk – but no
denying the progression from “talk shop” to soft law to
Hard Law
 If international requirements don’t enter through
ratification/federal legislation, then via state
legislatures, or other national & regional jurisdictions
 Not just regulatory = other means, such as labels,
standards, procurement, retailer initiatives
 Market access, procurement and trade barriers
October 11, 2007
Norine Kennedy, USCIB
Energy Efficiency (E/e) at
the International Level
The Good News: E/e makes business sense
Boost competitiveness
Exports of new technologies
Job creation
Mutual recognition/harmonious cooperation vs patchwork quilt
The Bad News: Perceived as “low hanging fruit” needing
prescriptive approaches
Business and government not speaking same language
Subsidies and market distortions
“Un-integrated” or overly green approaches
Mixed Blessings:
Sectoral approaches (or silos)
Life cycle thinking and product related approaches (“carbon
footprint”)
October 11, 2007
Norine Kennedy, USCIB
Challenges in
International E/e Policy
Multiple fronts
Top down targets increasingly linked to
climate change
Product-oriented policy
Lack of international governmental
understanding of what drives
technological innovation, dissemination
and more generally energy investments
in global markets
October 11, 2007
Norine Kennedy, USCIB
The Challenge:
Multiple Fronts for
International Policy
 No international “owner” (bad or good?)
UN : Commission on Sustainable Development (CSD);
UN Environment Programme (UNEP); UN Development
Programme (UNDP); UN Climate Change Convention
G8
International Energy Agency (IEA)
Regional Intergovernmental Groups:
• EU
• APEC
• Major Economies Meeting Initiative (MEM)
October 11, 2007
Norine Kennedy, USCIB
The Challenge: Top
Down Approaches to E/e
 “Top Down” Targets and Approaches
UN : Commission on Sustainable Development (CSD);
UN Climate Change Treaty
G8
IEA : World Energy Investment Outlook
Regional Groups :
• EU Energy policy: - 20% by 2020 (compared to
forecasts)
• APEC: Energy intensity aspirational target –25% by
2030 (2005 base yr)
• MEM – Long term international objective and role of
E/e therein?
October 11, 2007
Norine Kennedy, USCIB
EU: Action Plan for
E/e (2007-2012)
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-20% by 2020 (compared to energy forecasts of 2020)
or 1.5% saving per year up to 2020
Reduce EU impact on climate change and dependence
on fossil fuel imports
Directive 2006/32/ec – Guidelines, code of conduct and
certification for buildings and appliances
Similar measures foreseen for utilities, transport, and
demand side management
The Action Plan provides for adoption of “eco-design”
minimum standards to improve the energy yield of 14
groups of products (including boilers, tvs and light
fittings)
Efforts to ban incandescent light bulbs (EU proposal,
NL, also elsewhere, Australia, California, etc.)
October 11, 2007
Norine Kennedy, USCIB
EU: Eco-design of
Energy-Using Products
(EUP) (Dir 2005/32/EC)
Prescriptive “Product Policy” oriented
E/e approaches proliferating internationally
 EUP encourages manufacturers to design products with
environmental impacts in mind
 After adoption, the Commission will be able to enact
implementing measures on specific products and
environmental aspects (including energy consumption)
 Synergy with Energy Labelling directive and existing
directives on minimum energy efficiency requirements
October 11, 2007
Norine Kennedy, USCIB
International Chamber of
Commerce (ICC)
 ICC represents 1000s of companies in
130 countries
 ICC Environment and Energy
Commission
ICC E/e Perspective informed by:
Economic Growth and Development
Promoting Innovation and Investment
Scientifically based cost-effective policy and
practice
Corporate Responsibility
Fighting Bribery and Corruption
October 11, 2007
Norine Kennedy, USCIB
ICC and E/e
How is E/e understood and promoted in international
policy frameworks?
How to address E/e in the broader context of energy
policy (security, pricing, infrastructure) and climate
policy?
What drives (or hampers) technological innovation,
commercialization, uptake to promote E/e in globalized
markets?
What is the role of business vis a vis E/e in societies,
and in particular, in developing countries?
How to promote E/e through technological innovations
in largest developing countries?
October 11, 2007
Norine Kennedy, USCIB
ICC E/e
Policy Statement
 Importance to suppliers and consumers in globalized
markets: consider supply-chain and other commercial
connections
 E/e makes good business sense: benefits to business and
to society
 Business has vast experience from strides already made
 Importance of long-term investments and the necessary
enabling frameworks
 Working within free markets
 Fostering technological innovation and R&D
 Promoting technological cooperation
 Integrating e/e with climate change
October 11, 2007
Norine Kennedy, USCIB
E/e: Emerging Issues
and Opportunities
 Energy Access and Security
 Energy Management System
standards
 Product-based/Sustainable
Consumption Policies
 Carbon Footprint
October 11, 2007
Norine Kennedy, USCIB
THANK YOU!!
http://www.uscib.org
October 11, 2007
Norine Kennedy, USCIB