ALBERT

Description / Table of Contents: This fourth edition of the IEA Medium-Term Oil Market Report (MTOMR) confronts an economic landscape unrecognisable from that seen at the time of the release of the summer 2008 edition. Crude prices are now 55% lower as financial and economic meltdown have slashed demand, with worldwide contraction in oil use at levels not seen since the early 1980s. This fourth edition of the IEA’s Medium-Term Oil Market Report (MTOMR) confronts an economic landscape unrecognisable from that seen at the time of the release of the summer 2008 edition. Crude prices are now 60% lower as financial and economic meltdown have slashed demand, with worldwide contraction in oil use at levels not seen since the early 1980s. But how long will the downturn last, and what is the likely profile of global and regional demand recovery when economic rebound eventually takes root? Has almost a decade of rising prices and costs changed the demand-side blueprint and forced the world onto a lower oil intensity path for the period through 2014? Equally importantly, the report identifies the impact that weaker demand, low prices and a credit squeeze are having on supply-side investment – in upstream OPEC/non-OPEC supply, biofuels capacity and refining infrastructure alike. The 2009 edition of the MTOMR also delves into the issues of diversifying FSU crude exports, evolving crude and product qualities, the importance of petrochemical markets and perceptions on oil price formation in the down-cycle. Two demand scenarios are presented based on differing economic growth assumptions, with a lower non-OPEC supply scenario also accompanying the lower GDP case. Summary oil balances highlight how OPEC spare capacity could develop during 2008-2014. This year, the MTOMR also consolidates analysis of future crude availability and trade flows, refining capacity and oil products supply implications under one cover. The MTOMR remains required reading for policy makers, market analysts, industry participants and anyone with an interest in oil market trends. It contains detailed statistical appendices and a wealth of insightful graphics. Alongside its monthly sister publication, the Oil Market Report, the MTOMR is a cornerstone of the IEA’s commitment to enhancing oil market transparency.

Description / Table of Contents: By 2010 there will be over 3.5 billion mobile phones subscribers, 2 billion TVs in use around the world and 1 billion personal computers. Electronic devices are a growing part of our lives and many of us can count between 20 and 30 separate items in our homes, from major items like televisions to a host of small gadgets. The communication and entertainment benefits these bring are not only going to people in wealthier nations - in Africa, for example, one in nine people now has a mobile phone. But as these electronic devices gain popularity, they account for a growing portion of household energy consumption. How “smart” is this equipment from an energy efficiency perspective and should we be concerned about how much energy these gadgets use? What is the potential for energy savings? This new book, Gadgets and Gigawatts: Policies for Energy Efficient Electronics, includes a global assessment of the changing pattern in residential electricity consumption over the past decade and an in-depth analysis of the role played by electronic equipment. It reviews the influence that government policies have had on creating markets for more energy efficient appliances and identifies new opportunities for creating smarter, more energy efficient homes. This book is essential reading for policy makers and others interested in improving the energy efficiency of our homes.

Description / Table of Contents: Transport accounts for nearly one-quarter of global energy-related CO2 emissions. To achieve the necessary deep cuts in greenhouse gas emissions by 2050, transport must play a significant role. Transport accounts for nearly one-quarter of global energy-related CO2 emissions. To achieve the necessary deep cuts in greenhouse gas emissions by 2050, transport must play a significant role.However, without strong global action, car ownership worldwide is set to triple to over two billion by 2050. Trucking activity will double and air travel could increase four-fold. These trends will lead to a doubling of transport energy use, with an even higher growth rate in CO2 emissions as the planet shifts toward high-CO2 synthetic fuels. How can we enable mobility without accelerating climate change? Transport, Energy and CO2: Moving Toward Sustainability provides answers to this question. It finds that if we change the way we travel, adopt technologies to improve vehicle efficiency and shift to low-CO2 fuels, we can move onto a different pathway where transport CO2 emissions by 2050 are far below current levels, at costs that are lower than many assume. The report discusses the prospects for shifting more travel to the most efficient modes and reducing travel growth rates, improving vehicle fuel efficiency by up to 50% using cost-effective, incremental technologies, and moving toward electricity, hydrogen, and advanced biofuels to achieve a more secure and sustainable transport future. If governments implement strong policies to achieve this scenario, transport can play its role and dramatically reduce CO2 emissions by 2050. This publication is one of three new IEA end-use studies, together with industry and buildings, which look at the role of technologies and policies in transforming the way energy is used in these sectors.

Description / Table of Contents: Local governments have the power to influence the energy choices of their citizens. Many cities and towns have already encouraged energy efficiency measures. Even so, as demand for energy services continues to grow, the energy infrastructure that every city and town depends on will need to be expanded, upgraded or replaced. This provides the opportunity to increase the deployment of renewable energy technologies and decentralised energy systems, and hence gain the multi-benefits of increased energy security, climate change mitigation and sustainable development, but also the social benefits of reduced air pollution, such as improved health and employment. Many combinations of policies have been employed to stimulate local renewable energy development. These policies include: local governance by authority; providing resources; enabling private actors; leading by example; allowing self-governance. Mega-city mayors, down to small-town officials, have successfully introduced such policies, although these vary with location, local resources and population. Cities, Towns and Renewable Energy – "Yes In My Front Yard" includes several case studies chosen to illustrate how enhanced deployment of renewable energy projects can result, regardless of a community’s size or location. The goals of this report are to inspire city stakeholders by showing how renewable energy systems can benefit citizens and businesses, assist national governments to better appreciate the role that local municipalities might play in meeting national and international objectives, and help accelerate the necessary transition to a sustainable energy future.

Description / Table of Contents: The global economic crisis has not spared the gas sector. Over the past year, we have moved from a tight supply and demand balance with extremely high gas prices to an easing one with plummeting gas prices. Since the last quarter of 2008, demand has been declining dramatically, essentially because of the global recession. The global economic crisis has not spared the gas sector. Over the past year, we have moved from a tight supply and demand balance with extremely high gas prices to an easing one with plummeting gas prices. Since the last quarter of 2008, demand has been declining dramatically, essentially because of the global recession. Yet significant new volumes of liquefied natural gas will come on stream within the next few years, and United States unconventional gas production has risen rapidly, with global consequences. It remains to be seen how these demand and supply pressures will play out, particularly in the pivotal power sector, in both OECD and non-OECD countries. Meanwhile, the security of gas supplies has once again become a critical issue, in particular in Europe after it experienced its worst supply disruption during the Russian-Ukraine crisis in January 2009. Moreover, the current market climate of weakening demand, lower prices and regulatory uncertainties added to the tough financial environment are likely to jeopardise investments, in particular in capital-intensive projects, further undermining long-term energy security in the most fundamental way when economies recover. The Gas Market Review 2009 looks at these and other major developments and challenges in the different parts of the gas value chain in a selection of IEA countries – The United States, Canada, Spain, Norway, the Netherlands, and Turkey – as well as in non-IEA member countries in the Middle East, North Africa, Southeast Asia, and China.

Description / Table of Contents: This report seeks to inform decision makers seeking to prioritise RD&D investments in a time of financial uncertainty. It is an update of the December 2009 IEA report Global Gaps in Clean Energy Research, Development and Demonstration, which examined whether rates of LCET investment were sufficient to achieve shared global energy and environmental goals (IEA,2009a). It discusses the impact of the green stimulus spending announcements, and provides private sector perspectives on priorities for government RD&D spending. Finally, it includes a revised assessment of the gaps in public RD&D, together with suggestions for possible areas for expanded international collaboration on specific LCETs. The conclusion re-affirms the first Global Gaps study finding that governments and industry need to dramatically increase their spending on RD&D for LCETs.

Description / Table of Contents: Recognising the urgency of identifying technology to reduce the CO2 intensity of cement production, the IEA has worked together with the World Business Council for Sustainable Development (WBCSD) Cement Sustainability Initiative (CSI) to develop a technology roadmap for cement. This is currently the only industry-specific roadmap; others focus on specific technologies. This joint effort shows willingness to build on progress already made, as well as the industry’s understanding that further progress lies ahead. CO2 emissions from cement production currently represent about 5% of anthropogenic global CO2 emissions. The cement roadmap outlines a possible transition path for the industry to make continued contributions towards a halving of global CO2 emissions by 2050. As part of this contribution, this roadmap estimates that the cement industry could reduce their emissions 18% from current levels by 2050. A reduction of global emissions does not imply a linear reduction by the same percentage in all industries. This roadmap should be understood as a deep analysis of potentials and challenges in one industry.

Description / Table of Contents: Carbon capture and storage (CCS) is an important part of the lowest-cost greenhouse gas (GHG) mitigation portfolio. This roadmap was published in 2009 using data from the Energy Technology Perspectives 2008 publication. An update was released in July 2013

Description / Table of Contents: Recent IEA analysis highlights member countries’ significant progress with developing energy efficiency policy (International Energy Agency 2009). The 28 member countries of the IEA are engaged in promoting innovative financial instruments, energy efficiency strategies and action plans. They are designing policies to promote energy efficiency in buildings, the adoption of standby power, the phase out of inefficient lighting, proper tyre-inflation and related policies, and energy efficiency in utilities.

Description / Table of Contents: In its latest publication, Development of Competitive Gas Trading in Continental Europe, the IEA examines the history of major gas markets’ development in OECD Europe, and explores the possible expansion of trading through the mechanism of different hubs across the region. Lessons learned from North American markets on the benefits of regulatory convergence and investor-friendly legal framework are an important part of the analysis. Competitive trading based on transparent, non-discriminatory rules in a flexible and integrated European gas market will lead to more efficiency, timely investment, and greater market resilience, therefore ensuring more security for both customers and suppliers in the long term.

Description / Table of Contents: Renewable energy can play a fundamental role in tackling climate change, environmental degradation and energy security. As these challenges have become ever more pressing, governments and markets are seeking innovative solutions. Yet, what are the key factors that will determine the success of renewable energy policies? How can current policies be improved to encourage greater deployment of renewables? What impact can more effective policies have on renewables’ share in the future global energy mix and how soon? Deploying Renewables: Principles for Effective Policies addresses these questions. Responding to the Gleneagles G8 call for a clean and secure energy future, it highlights key policy tools to fast-track renewables into the mainstream. This analysis illustrates good practices by applying the combined metrics of effectiveness and efficiency to renewable energy policies in the electricity, heating and transport sectors. It highlights significant barriers to accelerating renewables penetration, and argues that the great potential of renewables can be exploited much more rapidly and to a much larger extent if good practices are adopted. Carefully designed policy frameworks, customised to support technologies at differing stages of maturity, will deliver a strong portfolio of renewable energy technologies. Deploying Renewables: Principles for Effective Policies provides recommendations on key principles for policy design as a template for decision makers.

Description / Table of Contents: Coal is and will remain the world’s most abundant and widely distributed fossil fuel. Burning coal, however, can pollute and it produces carbon dioxide. Clean coal technologies address this problem. The widespread deployment of pollution-control equipment to reduce sulphur dioxide, Nox and dust emissions from industry is just one example which has brought cleaner air to many countries. Since the 1970s, various policy and regulatory measures have created a growing commercial market for these clean coal technologies, with the result that costs have fallen and performance has improved. More recently, the need to tackle rising CO2 emissions to address climate change means that clean coal technologies now extend to include those for CO2 capture and storage (CCS). This short report from the IEA Coal Industry Advisory Board (CIAB) presents industry’s considered recommendations on how to accelerate the development and deployment of this important group of new technologies and to grasp their very signifi cant potential to reduce emissions from coal use. It identifies an urgent need to make progress with demonstration projects and prove the potential of CCS through government-industry partnerships. Its commercialisation depends upon a clear legal and regulatory framework,public acceptance and market-based financial incentives. For the latter, the CIAB favours cap-and-trade systems, price supports and mandatory feed-in tariffs, as well as inclusion of CCS in the Kyoto Protocol’s Clean Development Mechanism to create demand in developing economies where coal use is growing most rapidly. This report offers a unique insight into the thinking of an industry that recognises both the threats and growing opportunities for coal in a carbonconstrained world.

Description / Table of Contents: Over the last 18 months, natural gas prices have continued to rise steadily in all IEA markets. What are the causes of this steady upward trend? Over the last 18 months, natural gas prices have continued to rise steadily in all IEA markets. What are the causes of this steady upward trend? Unprecedented oil and coal prices which have encouraged power generators to switch to gas, together with tight supplies, demand for gas in new markets and delayed investments all played a role. Investment uncertainties, cost increases and delays remain major concerns in most gas markets and are continuing to constitute a threat to long-term security of supply. A massive expansion in LNG production is expected in the short term to 2012, but the lag in LNG investment beyond 2012 is a concern for all gas users in both IEA and non-IEA markets. Despite this tight market context, regional markets continue on their way to globalisation. This tendency seems irreversible, and it impacts even the most independent markets. Price linkages and other interactions between markets are becoming more pronounced. The Natural Gas Market Review 2008 addresses these mmajor developments, assessing investment in natural gas projects (LNG, pipelines, upstream), escalating costs, the activities of international oil and gas companies, and gas demand in the power sector. In addition, the publication includes data and forecasts on OECD and non-OECD regions to 2015 and in-depth reviews of five OECD countries and regions including the European Union. It also provides analysis of 34 non-OECD countries in South America, the Middle East, Africa, and Asia, including a detailed assessment of the outlook for gas in Russia, as well as insights on new technologies to deliver gas to markets.

Description / Table of Contents: Improvements in energy efficiency over the past three decades have played a key role in limiting global increases in energy use and CO2 emissions. For IEA countries, energy efficiency gains since 1990 have led to annual energy savings of more than 16 EJ in 2005 and 1.3 Gt of avoided CO2 emissions. However, the recent rate of efficiency improvement has been much lower than in the past. The good news is that a large potential remains for further energy and CO2 savings across all sectors. In industry alone, the application of proven technologies and best practices on a global scale could save between 1.9 Gt and 3.2 Gt of CO2 emissions per year. In public power generation, if all countries produced electricity at current best practice levels, CO2 savings would be between 1.8 Gt and 2.5 Gt.

Description / Table of Contents: Existing buildings are responsible for over 40% of the world’s total primary energy consumption. An impressive amount of energy could be saved simply by applying energy-efficient technologies. Yet, various market barriers inhibit energy efficiency improvements in existing buildings and result in energy savings that are significantly lower than potentials. Financial barriers — including the initial cost barrier, risk exposure, discount-factor issues and the inadequacy of traditional financing mechanisms for energy-efficient projects — play a major role. Policies that may help to overcome financial barriers to improving energy efficiency in existing residential buildings are the focus of this study. The publication provides illustrations of policies and measures implemented in five IEA member countries and the European Union. Each case includes relevant background and contextual information, as well as a detailed evaluation of each policy according to five pre-defined criteria: relevance, effectiveness, flexibility, clarity and sustainability. Promoting Energy Efficiency Investments aims to inform policy makers and offers ideas on the most effective policies, programmes and measures available to improve energy efficiency in existing residential buildings.

Description / Table of Contents: World energy demand is surging. Oil, coal and natural gas still meet most global energy needs, creating serious implications for the environment. One result is that CO2 emissions, the principal cause of global warming, are rising. This new study underlines the close link between efforts to ensure energy security and those to mitigate climate change. Decisions on one side affect the other. To optimise the efficiency of their energy policy, OECD countries must consider energy security and climate change mitigation priorities jointly. The book presents a framework to assess interactions between energy security and climate change policies, combining qualitative and quantitative analyses. The quantitative analysis is based on the development of energy security indicators, tracking the evolution of policy concerns linked to energy resource concentration. The “indicators” are applied to a reference scenario and CO2 policy cases for five case-study countries: The Czech Republic, France, Italy, the Netherlands, and the United Kingdom. Simultaneously resolving energy security and environmental concerns is a key challenge for policy makers today. This study helps chart the course.

Description / Table of Contents: To meet increasing demand and replace ageing power units, considerable investment in new power generation will be required over the next decade. To meet increasing demand and replace ageing power units, considerable investment in new power generation will be required over the next decade. In most IEA countries a new investment cycle in power generation is looming: Many uncertainties create risks that may lead to inappropriate investment – too little, too late, in the wrong location and with the wrong technology. A window of opportunity now exists to push for a cleaner and more efficient generation portfolio that could transform the power sector and help to build a more sustainable infrastructure lasting over the next 40-50 years. What are the recent trends and prospects for investment in power generation? What are the main drivers and barriers? This book assesses these issues and gives special emphasis to the question of how uncertainties may affect investment decisions. Uncertainties on CO2 constraints, on power plant licensing, on acceptability of nuclear power, on local opposition to any new energy infrastructure, on government support for specific generation technologies and on government policies on energy efficiency are particularly disturbing. Market liberalisation can also be a key uncertainty, but this may be greatly reduced and deliver considerable benefits if liberalisation is implemented whole-heartedly and backed by on-going government commitment. Government action is urgently needed: to reduce regulatory uncertainty for investors, to establish effective competitive markets and to give firm policy directions in those areas where markets fall short, such as in taking environmental costs and security of supply into account. Tackling Investment Challenges in Power Generation shows the way forward.

Description / Table of Contents: Energy efficiency presents a unique opportunity to address three energy-related challenges in IEA member countries: energy security, climate change, and economic development. Yet an energy-efficiency gap exists between actual and optimal energy use. That is, significant cost-effective energy efficiency potential is wasted because market barriers prevent countries from achieving optimal levels. Market barriers take many forms, from inadequate access to capital, isolation from price signals, information asymmetry, and split-incentives. Though many studies have reported the existence of such market barriers, none so far have attempted to quantify the magnitude of their effect on energy use and efficiency.

Description / Table of Contents: To meet future energy demand growth and replace older or inefficient units, a large number of fossil fuel-fired plants will be required to be built worldwide in the next decade. Yet CO2 emissions from fossil-fired power generation are a major contributor to climate change. As a result, new plants must be designed and operated at highest efficiency both to reduce CO2 emissions and to facilitate deployment of CO2 capture and storage in the future. The series of case studies in this report, which respond to a request to the IEA from the G8 Summit in July 2005, were conducted to illustrate what efficiency is achieved now in modern plants in different parts of the world using different grades of fossil fuels. The plants were selected from different geographical areas, because local factors influence attainable efficiency. The case studies include pulverized coal combustion (PCC) with both subcritical and supercritical (very high pressure and temperature) steam turbine cycles, a review of current and future applications of coal-fuelled integrated gasification combined cycle plants (IGCC), and a case study of a natural gas fired combined cycle plant to facilitate comparisons.

Description / Table of Contents: This new edition of “Findings of Recent IEA Work” provides a sample of the Agency’s activities since its 2005 Ministerial meeting. Each page focuses on a specific subject or project, including references to IEA work that will be of use to governments, academics, journalists and the wider public. This volume is not all-inclusive, but seeks to highlight IEA efforts to respond to the concerns of its member countries and identify ways to overcome the energy challenges we face.

Description / Table of Contents: With the introduction of CO2 emission constraints on power generators in the European Union, climate policy is starting to have notable effects on energy markets. This paper sheds light on the links between CO2 prices, electricity prices, and electricity costs to industry. It is based on a series of interviews with industrial and electricity stakeholders, as well as a rich literature seeking to estimate the exact effect of CO2 prices on electricity prices.

Description / Table of Contents: Industry accounts for about one-third of global energy demand. Most of that energy is used to produce raw materials: chemicals, iron and steel, non-metallic minerals, pulp and paper and non-ferrous metals. Just how efficiently is this energy put to work? This question was on the minds of the G8 leaders at their summit in Gleneagles in 2005, when they set a “Plan of Action for Climate Change, Clean Energy and Sustainable Development”. They called upon the International Energy Agency to provide information and advice in a number of areas including special attention to the industrial sector. Tracking Industrial Energy Efficiency and CO2 Emissions responds to the G8 request. This major new analysis shows how industrial energy efficiency has improved dramatically over the last 25 years. Yet important opportunities for additional gains remain, which is evident when the efficiencies of different countries are compared. This analysis identifies the leaders and the laggards. It explains clearly a complex issue for non-experts. With new statistics, groundbreaking methodologies, thorough analysis and advice, and substantial industry consultation, this publication equips decision makers in the public and private sectors with the essential information that is needed to reshape energy use in manufacturing in a more sustainable manner.

Description / Table of Contents: How much oil will the world consume in 2012? What role will OPEC play in global oil production? Will biofuels become an important part of the oil market? How will the refinery sector cope? The International Energy Agency (IEA) Medium-Term Oil Market Report tackles these questions, adopting a perspective that goes beyond the traditional short-term market analysis provided in the IEA Oil Market Report. Drawing on current futures curves and the investment threshold for upstream projects, the Medium-Term Oil Market Report analyses how global demand and supply balances may develop. By assessing all firmly planned upstream and downstream projects worldwide, this report forecasts supply and demand potential for crude and petroleum products over the next five years. The results provide an invaluable insight into vital issues such as surplus production capacity and product supply. An essential report for all policymakers, market analysts, energy experts and anyone interested in understanding and following oil market trends, the Medium-Term Oil Market Report is a further element of the strong commitment of the IEA to improving and expanding the quality, timeliness and accuracy of energy data and analysis. How much oil will the world consume in 2012? What role will OPEC play in global oil production? Will biofuels become an important part of the oil market? How will the refinery sector cope? The International Energy Agency (IEA) Medium-Term Oil Market Report tackles these questions, adopting a perspective that goes beyond the traditional short-term market analysis provided in the IEA Oil Market Report. Drawing on current futures curves and the investment threshold for upstream projects, the Medium-Term Oil Market Report analyses how global demand and supply balances may develop. By assessing all firmly planned upstream and downstream projects worldwide, this report forecasts supply and demand potential for crude and petroleum products over the next five years. The results provide an invaluable insight into vital issues such as surplus production capacity and product supply. An essential report for all policymakers, market analysts, energy experts and anyone interested in understanding and following oil market trends, the Medium-Term Oil Market Report is a further element of the strong commitment of the IEA to improving and expanding the quality, timeliness and accuracy of energy data and analysis.

Description / Table of Contents: Ensuring energy security and addressing climate change issues in a cost-effective way are the main challenges of energy policies and in the longer term will be solved only through technology cooperation. To encourage collaborative efforts to meet these energy challenges, the IEA created a legal contract – Implementing Agreement – and a system of standard rules and regulations. This allows interested member and non-member governments or other organisations to pool resources and to foster the research, development and deployment of particular technologies. For more than 30 years, this international technology collaboration has been a fundamental building block in facilitating progress of new or improved energy technologies. This is the third in the series of publications highlighting the recent results and achievements of the IEA Implementing Agreements.

Description / Table of Contents: Our climate is changing. This is certain. Less certain, however, is the timing and magnitude of climate change, and the cost of transition to a low-carbon world. Therefore, many policies and programmes are still at a formative stage, and policy uncertainty is very high. This book identifies how climate change policy uncertainty may affect investment behaviour in the power sector. For power companies, where capital stock is intensive and long-lived, those risks rank among the biggest and can create an incentive to delay investment. Our analysis results show that the risk premiums of climate change uncertainty can add 40% of construction costs of the plant for power investors, and 10% of price surcharges for the electricity end-users. Climate Policy Uncertainty and Investment Risk tells what can be done in policy design to reduce these costs. Incorporating the results of quantitative analysis, this publication also shows the sensitivity of different power sector investment decisions to different risks. It compares the effects of climate policy uncertainty with energy market uncertainty, showing the relative importance of these sources of risk for different technologies in different market types. Drawing on extensive consultation with power companies and financial investors, it also assesses the implications for policy makers, allowing the key messages to be transferred into policy designs. This book is a useful tool for governments to improve climate policy mechanisms and create more certainty for power investors.

Description / Table of Contents: This paper describes the methodology and model used in an information paper of the IEA (Blyth and Yang, 2006) and a forthcoming book of the IEA (2007). The methodology and model will be used in future work investigating the implications of uncertainty for investment decisions. As a reference document, it has not been approved by any IEA committee.

Description / Table of Contents: At their Gleneagles Summit in July 2005, G8 leaders identified climate change and securing clean energy and sustainable development as key global challenges. They agreed that we must transform the way we use energy and that we must start now. Improved energy efficiency is essential to meeting this goal. Therefore, the G8 asked the IEA to provide analysis of energy use and efficiency developments in buildings, appliances, transport and industry. This publication is a response to the G8 request. Looking back, it shows how changes in energy efficiency, economic structure, income, prices and fuel mix have affected recent trends in energy use and CO2 emissions in IEA countries. The results are a “wake-up call” for us all. Since 1990, the rate of energy efficiency improvement in IEA countries has been less than 1% per year – much lower than in previous decades and not nearly enough to stem the growth of CO2 emissions. If we are to tackle climate change and move towards a sustainable energy future then this rate will need to double. We must – and we can – do better! By means of in-depth energy indicators, Energy Use in the New Millennium: Trends in IEA Countries provides important insights to policy-makers about current energy use and CO2 emission patterns that will help shape priorities for future action. This publication is a response to the G8 request. It shows how changes in energy efficiency, economic structure, income, prices and fuel mix have affected recent trends in energy use and CO2 emissions in IEA countries. The results are a “wake-up call” for us all

Description / Table of Contents: The study explores necessary measures to make the power plant CO2 capture and storage ready.

Description / Table of Contents: CO2 emissions from energy production and consumption are a major contributor to climate change. Thus, stabilising CO2 concentrations in the atmosphere by reducing these emissions is an increasingly urgent international necessity. Carbon capture and storage (CCS) represents one of the most promising potential solutions to contain emissions resulting from continued use of coal and other fossil fuels. However, challenges such as a lack of legal and regulatory frameworks to guide near-term demonstration projects and long-term technology expansion must be addressed to facilitate the expanded use of CCS. In October 2006, the International Energy Agency (IEA) and the Carbon Sequestration Leadership Forum (CSLF) convened with legal experts,to discuss the range of legal issues associated with expanded use of CCS and to identify ways to facilitate further CCS development and implementation Participants examined gaps and barriers to the deployment of CCS and identified recommendations to guide further development of appropriate legal and regulatory frameworks. This publication provides policymakers with a detailed summary of the main legal issues surrounding the CCS debate, including up-to-date background information, case studies and conclusions on the best legal and regulatory approaches to advance CCS. These strategies can be used to enable further development, deployment and demonstration of CCS technology, potentially an essential element in global efforts to mitigate climate change.

Description / Table of Contents: With the fastest growing energy demand in the world, China is now the largest electricity consumer after the United States. In 2005, China added the equivalent of all the power plants in Norway and Sweden to its electricity generating capacity - and its remarkable demand growth shows no sign of abating. To continue to build its booming economy, the country must keep its lights on and its factories, buildings and trains operating. No one questions China’s ability or determination to do this. But how can the government best assure affordable and environmentally sustainable electricity supply in the future? The Chinese government has initiated electricity sector reforms to overhaul an antiquated system and attain new energy security and environmental objectives. How China proceeds with these reforms will have lasting consequences, both locally and globally. Assessing the current state of electricity regulation in China, this report draws on experience elsewhere to explore how better to develop and communicate strategy, how to moderate growth in demand through increased efficiency, how to integrate environmental goals into planning and operation, how to ensure sufficient supply when and where it is needed, and how to handle institutional and governance challenges. In this respect, electricity sector reform in other countries offers valuable lessons as to how China might proceed. As it describes perspectives and challenges for the Chinese power sector, Chinas Power Sector Reforms: Where to next? is a useful tool for policy makers and business leaders.

Description / Table of Contents: Natural gas is essential to the world economy. Gas now accounts for almost a quarter of OECD primary energy requirements and is expected to become the second most important fuel in the world in the next decade. Industrial and residential consumers increasingly rely on natural gas to keep their houses warm, their lights on and their factories running. Meanwhile the gas industry itself has entered a new phase. Where gas used to be restricted to regional markets, it is now increasingly traded on a global scale. While gas production and transport requires long-term investment, now it is optimised on a short-term basis. Demand continues to grow, but local gas production has become much more expensive. How should we react? How will demand be satisfied? What changes are required to promote flexibility and trade? What are the implications for gas security, investment and interdependence? At stake is an opportunity to diversify supply and demand – but this goal is threatened by barriers to competition and investment. The Natural Gas Market Review 2006 is the first of a new IEA publication series. It takes an unprecedented look at developments in natural gas to 2010, analysing not only the three IEA regions (Asia Pacific, North America and Europe) but also broader global trends, such as the interaction of pipeline gas with LNG which binds the regions together. The Review provides invaluable insights for understanding this dynamic market.

Description / Table of Contents: Why have oil prices hit USD140 per barrel? How strong will oil demand be in the upcoming years? Will supply of crude oil, natural gas liquids and biofuels be sufficient to meet this future demand? And, no less crucially, what investments in refining capacity and technology can we expect and will these help ease some of the imbalance in strained oil product markets? Now into its third year, the Medium-Term Oil Market Report published by the International Energy Agency (IEA) has become a new benchmark, complementing the short-term market analysis provided in the IEA Oil Market Report. This year’s edition reappraises all upstream and downstream projects worldwide, setting them against a revised demand forecast and expanding the time horizon to 2013. Special features this year include in-depth analyses of price formation, transport trends, non-OECD economies,non-OPEC production decline, project slippage, key crude export pipeline developments and a stronger emphasis on product supply bottlenecks. An essential report for all policy makers, market analysts, energy experts and anyone interested in understanding and following oil market trends, the Medium-Term Oil Market Report is a further element of the strong commitment of the IEA to improving and expanding the quality, timeliness and accuracy of energy data and analysis.

Description / Table of Contents: How much oil will the world consume in 2011? What role will OPEC play in global oil production? Will biofuels become an important part of the oil market? The International Energy Agencys (IEA) Medium-Term Oil Market Report tackles these questions, adopting a perspective that goes beyond the traditional short-term market analysis provided in the IEAs monthly Oil Market Report. Drawing on current futures curves and the investment threshold for upstream projects, the Medium-Term Oil Market Report analyses how global demand and supply balances may develop in the next five years. The forecasts look in detail at product demand and the supply potential from all the firmly planned individual upstream and downstream projects around the world. The results provide invaluable insights on vital issues such as surplus production capacity and product supply. The rapid pace of change in the oil market means that forecasts can become outdated very quickly. This interim update provides the opportunity to rebase the data and forecasts in the annual Medium-Term Oil Market Report and to discuss and analyse new issues affecting the oil industry. Policymakers, market analysts, energy experts and anyone interested in understanding and following trends in the oil market should find this report extremely useful.

Description / Table of Contents: This paper offers an overview of the technologies for hydrogen production. The technologies discussed are reforming of natural gas; gasification of coal and biomass; and the splitting of water by water-electrolysis, photo-electrolysis, photo-biological production and hightemperature decomposition. For all hydrogen production processes, there is a need for significant improvement in plant efficiencies, for reduced capital costs and for better reliability and operating flexibility. Water electrolysis and natural gas reforming are the technologies of choice in the current and near term. They are proven technologies that can be used in the early phases of building a hydrogen infrastructure for the transport sector. Small-scale natural gas reformers have only limited commercial availability, but several units are being tested in demonstration projects. In the medium to long term, centralised fossil fuel-based production of hydrogen, with the capture and storage of CO2, could be the technology of choice. However, the capture and storage of CO2 is not yet technically and commercially proven. Further R&D on the processes of absorption and separation are required. Other methods for hydrogen production are further away from commercialisation and need additional R&D. The production of hydrogen from biomass needs additional focus on the preparation and logistics of the feed, and such production will probably only be economical at a larger scale. Photo-electrolysis is at an early stage of development, and material costs and practical issues have yet to be solved. The photo-biological processes are at a very early stage of development with only low conversion efficiencies obtained so far. High-temperature processes need further materials development that focuses on hightemperature membranes and heat exchangers.

Description / Table of Contents: This note provides an update on growth in global coal demand, the potential for efficiency improvements through the application of best practices at coal-fired power stations, and recent developments in the field of clean coal technologies incorporating carbon dioxide capture and storage.

Description / Table of Contents: In ever more globalised and automated economies the role of electricity is increasingly important as a driver for economic prosperity. Reliable and affordable supply of electricity is essential for the competitiveness of global industrial product markets and a necessary ingredient in the daily workings of modern societies. At the same time, environmental impacts of energy usage are one of the most difficult global policy challenges. Reliable access to affordable electricity supply with acceptable environmental impacts is only achieved with comprehensive and carefully balanced policy actions to establish the necessary incentive-based framework. To that end, liberalisation of electricity markets is a development path and policy option that has been implemented or considered in all IEA member countries. Through competition in liberalised markets incentives are created to drive for more efficient operation of electricity systems and more efficient investment decisions in terms of timing, sizing, siting and choice of technology. Even if liberalised markets leave critical policy challenges un-resolved, the transparency created by competition tends to improve the framework for targeted policy actions to address issues such as environmental quality and reliability. After up to ten years’ experience with liberalised electricity markets and even longer in some cases important lessons can now be drawn from some pioneering countries and regions. Theoretical principles for successful liberalisation can now be augmented with more qualified policy prescriptions based on real-world experience. Even if some pioneering markets have operated with considerable success for a number of years, liberalisation has shown it self not to be a single event, but rather a long process that requires on-going government commitment. No markets are perfect, and they will continue to evolve and develop to match the needs of electricity systems - systems that are at the same time undergoing considerable change. This book addresses the main principles of successful liberalisation with actual experiences and outcomes, hopefully providing decision makers within government and industry with policy prescriptions on the key issues. One point of departure is to ask whether liberalisation of electricity markets is feasible – that it, has it been possible to develop a functional market without jeopardizing reliability and other public policy priorities. Secondly, if liberalisation has worked in that it has been able to achieve this balance, has it delivered the expected outcome in terms of real economic benefit. An affirmative answer to these questions leads to the books’ focus on what issues are critical and what approaches best lead to successful electricity markets, allowing the book to point to best practices.

Description / Table of Contents: Detailed, complete, timely and reliable statistics are essential to monitor the energy situation at a country level as well as at an international level. Energy statistics on supply, trade, stocks, transformation and demand are indeed the basis for any sound energy policy decision. For instance, the market of oil – which is the largest traded commodity worldwide – needs to be closely monitored in order for all market players to know at any time what is produced, traded, stocked and consumed and by whom. In view of the role and importance of energy in world development, one would expect that basic energy information to be readily available and reliable. This is not always the case and one can even observe a decline in the quality, coverage and timeliness of energy statistics over the last few years.

Description / Table of Contents: Electricity market reform has fundamentally changed the environment for maintaining reliable and secure power supplies. Growing inter-regional trade has placed new demands on transmission systems, creating a more integrated and dynamic network environment with new real-time challenges for reliable and secure transmission system operation. These operational challenges are intensified as spare transmission capacity is absorbed. The major blackouts of 2003 raised fundamental questions about the appropriateness of the rules, regulations and system operating practices governing transmission system security. Despite the considerable efforts since 2003 to address the weaknesses exposed by the blackouts, it can still be argued that the development of these rules and operating practices have not kept pace with the fundamental changes resulting from electricity market reform. More can and should be done. Management of system security needs to keep improving to maintain reliable electricity services in this more dynamic operating environment. The challenges raise fundamental issues for policymakers. This publication presents case studies drawn from recent large-scale blackouts in Europe, North America, and Australia. It concludes that a comprehensive, integrated policy response is required to avoid preventable large-scale blackouts in the future. The legal and regulatory arrangements governing transmission system security can be enhanced. In particular, scope exists to clarify responsibilities and accountabilities and to improve enforcement. System operating practices need to give greater emphasis to system-wide preparation to support flexible, integrated real-time system management. Real-time coordination, communication and information exchange, particularly within integrated transmission systems spanning multiple control areas, can and must be improved. Effective real-time system operation requires accurate and timely information and state-of-the-art technology to facilitate effective contingency planning, system management and coordinated emergency responses. New and existing technology could be more fully employed to enhance effective system operation. Appropriate training is also required to enhance emergency responses. More effective asset and vegetation management can also make a valuable contribution to strengthen transmission system security. An effective policy response should also consider how best to employ marketbased approaches to complement regulatory arrangements to strengthen transmission system security at least cost. Governments should provide the leadership and drive needed to establish effective, coordinated processes that address the key policy issues in an integrated and comprehensive manner. At the same time, all stakeholders need to work together to address these challenges if we are to avoid unduly exposing transmission systems to the risk of further substantial power failures.

Description / Table of Contents: The Russian government has embarked on a highly ambitious program of electricity reform. Russian policymakers have recognised that attracting timely and appropriate investment will remain a substantial and ongoing challenge, which can most effectively be addressed through the creation of efficient electricity markets operating in response to genuine price signals, within a robust and predictable legal and regulatory framework. Only such markets, in which competition is based on transparent prices that accurately reflect costs, can deliver the efficient, reliable and internationally competitive performance needed to meet the government’s economic targets in the longer term. Such markets can attract the new investment that the industry will need, especially in order to ensure security of electricity supply beyond 2010.

Description / Table of Contents: Climate policy raises a number of challenges for the energy sector, the most significant being the transition from a high to a low-CO2 energy path in a few decades. Emissions trading has become the instrument of choice to help manage the cost of this transition, whether used at international or at domestic level. Act Locally, Trade Globally, offers an overview of existing trading systems, their mechanisms, and looks into the future of the instrument for limiting greenhouse gas emissions.

Description / Table of Contents: District heating can make a substantial contribution to a sustainable energy future in Central Europe and the former Soviet Union. It is a critical energy source for countries in transition, covering 60 percent of heating and hot water needs. These systems can save energy and boost energy security, but a stronger policy framework is needed to encourage wise management and investment. With such a framework, district heating systems in former Socialist countries could save the equivalent of 80 billion cubic meters of natural gas a year through generation improvements alone. This is roughly the annual natural gas consumption in Germany. Reforming district heating is also essential for social reasons in cold countries in transition. District heating companies need to become more customer-oriented. Policy makers can help propel them in this direction either through new market mechanisms or an improved regulatory framework. Coming in from the Cold: Improving District Heating Policy in Transition Economies provides policymakers with a guide to key district heating issues. Countries need a clear policy on district heating, given the significant economic, social and environmental implications of this sector. This is true for IEA member and non-member countries alike if they are to improve their heat supply.

Description / Table of Contents: In 2001 the 26 IEA Member countries took or planned over 200 energy-related policies and measures to tackle climate change caused by greenhouse gas emissions. This volume reviews the actions taken and describes them in detail. It shows how developed countries implement the commitments made under international agreements or at national level to reduce their emissions.

Description / Table of Contents: Mitigating climate change will require profound changes in world energy production and use. While the full effects of climate change are not likely to be felt for decades, the need for action is more immediate, for changes in greenhouse gas concentrations are almost irreversible. Solutions exist in the form of energy efficiency improvements, fuel switching to non-carbon sources, and carbon recovery and storage. But the long-term costs of mitigation and the precise extent and pace of climate damage remain uncertain. So policy-makers face the task of conceiving and implementing measures in a context of uncertainty - and global inequity -, and run the risk of taking either excessive or insufficient action.

Description / Table of Contents: Underpinning international efforts to combat climate change are a series of actions being taken by developed countries' governments to mitigate emissions of greenhouse gases. This volume details more than 200 new policies and measures that were taken in the year 2000 to address energy-related emissions in IEA member countries. Actions are listed for each of the 26 IEA Member countries under five major headings: fiscal policy, tradable permits, regulatory instruments and voluntary approaches, R&D policy, and policy processes. In addition, policies are classified according to energy source and end use.

Description / Table of Contents: Climate change is of the most prominent and controversial problem facing the world's environment. But what are the world's developed countries doing about it? The answer is: quite a lot. The details are provided in this volume, describing more than 400 separate policy actions that IEA Member countries took to mitigate climate change in the energy sector during 1999.