APEC 2011 ENERGY AND TRANSPORT High Level Conference

1. APEC 2011ENERGY AND TRANSPORT High Level Conference Presentation to 40th Meeting of the APEC Energy Working Group Brunei Darussalam 24-25 November 2010

2. ENERGY AND TRANSPORT IN THE EMM-9 FUKUI DECLARATION • Energy ministers noted that “fuel-efficient vehicles using lightweight materials and other advanced technologies can greatly reduce both oil consumption and carbon emissions” while “electric drive and other alternative fuel vehicles also provide a major opportunity to shift transport fuels from oil to other energy sources.” They have further noted plans for “the first-ever joint meeting of energy and transport high level officials in the United States in 2011.” • In this light, EMM-9 instructed EWG “to continue assessing the resource potential for biofuels to displace petroleum-based fuels, the relative costs of biofuels, sustainable development practices for biofuels and strategies for expanding biofuels infrastructure, in cooperation with the Automotive Dialogue and the Transportation Working Group (TWG).”

3. Energy and transport themes Proposed for the conference • Transportation’s role in a clean energy future • Energy and transport systems for livable low-carbon communities • Low Carbon transport fuels – biofuels and electricity • Greening the Supply Chain: Energy Efficient Freight Transport

4. PROPOSED CONFERENCE format • Organized on the margins of the Third Senior Officials Meeting in San Francisco, September. • ABAC energy security workshop, transport ministerial in parallel (Monday, September 12), evening welcome reception for everyone. • Full day of public-private dialogue on keythemes – including ministers, senior officials, industry and NGOs (Tuesday, September 13). • Half day of government officials only to agree on action items (Wednesday, September 14). • CEEDS Phase III – Transport (September 14-15?). • Site visits related to energy and transport.

5. Transportation’s role in a clean energy future • APEC Leaders agreed in Singapore in 2008 to an aspirational goal of reducing the energy intensity of APEC economies (energy consumed per unit of GDP) by 25 percent by 2030 (or about 1 percent per annum from 2005). • APEC Energy Ministers, meeting in Fukui, Japan in 2010, directed the Energy Working Group to assess the practical potential for adopting a more ambitious goal to reduce the energy intensity of APEC economies by half. • In April 2009 in Manila, Philippines, the APEC Transportation Ministers recognized that greenhouse gas emissions present a major global challenge to the environment and the need for transportation to make its contribution to the global response to this challenge.

6. Transportation’s role in a clean energy future: Actions • In line with these goals, APEC, as a region, should consider energy intensity reduction goals for major energy-consuming sectors – such as transport – which accounts for 23% of global CO2 emissions from fossil fuel combustion. • Action 1.1 - Study a reduction in transport energy use per unit of GDP (percentage) • Action 1.2 - Study a reduction in carbon emissions from transport (percentage)

7. ENERgy AND transport systems for livable low carbon communities • In 2009 in Manila, Philippines, the APEC Transportation Ministers expressed their resolve to provide the APEC region with seamless and environmentally friendly transportation systems through innovation and the use of advanced technology, congestion reduction, enhanced transport safety, security and effective sustainability. • In 2010 in Fukui, Japan, the APEC Energy Ministers agreed to establish a Low-Carbon Model Towns Task Force to examine best practices for integrating energy-efficient transport, buildings and power grids into low-carbon urban developments. Low-carbon communities are being developed in a wide range of APEC economies, with a wide range of experience to share. • Hence, the need to establish a network of such communities and assess the most practical, cost-effective strategies for reducing energy bills and carbon emissions in the rapidly urbanizing APEC region.

8. ENERgy AND transport systems for livable low carbon communities: ACTIONS • Action 2.1 - Establish APEC Network of Livable Low-Carbon Communities • Build upon EWG Low-Carbon Model Towns Task Force. • Set up system to document energy and carbon savings in livable low-carbon communities. • Action 2.2 - Develop APEC best practices for Livable Low-Carbon Communities • Document strategies that towns have used to reduce their carbon footprint. • Assess energy and carbon savings from different strategies towns have used. • Share those strategies with greatest savings potential. • Share steps for success in implementing these strategies. • Action 2.3 - Agree to paths for expansion of electric rapid transit (km or person-km) • Action 2.4 - Agree to paths for extension of smart grids and smart metering

9. Low-CARBON TRANSPORT FUELS – BIOFUELS AND ELECTRICITY • APEC Energy Ministers, meeting in Gyeongju, Korea in October 2005, directed the Energy Working Group to establish a Biofuels Task Force which has undertaken analyses of biofuel resource potential, economies, infrastructure, and sustainable development practices. • In April 2009 in Manila, Philippines, the APEC Transportation Ministers instructed the Transportation Working Group to identify opportunities for the development and promotion of fuel efficient transport policies and practices, including the use of alternative fuels for transportation vehicles and aircraft and to identify barriers to implement such policies and practices. • Energy and transport officials should review Task Force findings and consider which ones to endorse. They should also discuss practical strategies for expanding the use of electric drive vehicles, which hold the potential to reduce oil imports and carbon emissions by running on electricity generated from natural gas, wind, sun, uranium, and coal with carbon capture and storage

10. Low-CARBON TRANSPORT FUELS – BIOFUELS AND ELECTRICITY: ACTIONS • Action 3.1 - Develop APEC best practices for expansion of electric vehicle infrastructure • Action 3.2 - Consider goals for expansion of electric vehicle use (share of fleet) • Action 3.3 - Endorse a set of sustainable biofuels development practices (per study)

11. GREENING THE SUPPLY CHAIN: ENERGY EFFICIENT FREIGHT TRANSPORT • Many businesses in APEC are reducing their energy costs and carbon footprints through systematic efforts to improve their freight logistics and shift from fuel-intensive transport by truck to less energy-intensive transport modes like ship, barge and rail. • By documenting their cost-saving, carbon-reducing strategies, they can help spread such strategies throughout the region.

12. ENERGY-EFFICIENT FREIGHt Transport: ACTIONS • Action 4.1- Establish APEC Network of Intermodal Freight Transporters (ANIFT) • Businesses agree to voluntary targets for reducing energy use for freight • Set up system to document energy and carbon savings from freight efficiency • Action 4.2 - Develop APEC best practices for energy efficient freight transport • Document strategies that companies use to reduce energy use for freight. • Shifting to less energy-intensive modes (intermodal freight) • Logistical planning to reduce trips, improve load factors (network logistics) • Use of more efficient fleet vehicles (trucks, planes) • Use of innovative fleet vehicles (electric freight movers, trucks) • Assess energy and carbon savings from strategies companies have used. • Recommend those strategies with greatest savings potential. • Recommend steps for success in implementing high-potential strategies.