Communiqué of the 2009 Meeting of the IEA Governing Board at Ministerial Level

October 15, 2009

1. During this time of economic uncertainty, volatile energy prices and heightened concern for the global environment, we, the 28 member countries of the International Energy Agency (IEA) and the European Commission, confirm our utmost determination to ensure a smooth transition to a low-carbon economy and a more secure, sustainable and cleaner energy future as soon as possible.
2. As we mark the 35th anniversary of the IEA's founding, the need for a new way forward is undeniable. IEA scenarios show that global demand for fossil fuels will continue to rise, even while the circle of producing countries becomes ever tighter. This could increase our countries' susceptibility to energy supply disruptions, high and volatile energy prices and repeated economic crises. Even worse, it raises the spectre of increased emissions of greenhouse gases and dangerous climate change. We agree that we need to act now to combat climate change if we are to avoid the devastating effects both for our citizens and for the world, particularly poor and developing countries. Such efforts can also contribute to economic growth, technological advancement and innovation, energy security and access to energy for the poor.
3. In these challenging times, we must work ever more closely with our international partners in order to achieve our shared goals. We welcome China, India and Russia to our meeting and welcome the joint statements their representatives concluded with Executive Director Tanaka of the IEA Secretariat. These joint statements with our partner countries reflect our common interest in working together to enhance energy security and efficiency, encourage economic development, address climate change, and ensure open, transparent and efficient energy markets.

A Cleaner Energy Future

4. The key messages that were presented during this meeting from the World Energy Outlook 2009 (WEO) provide new and useful analytical insights for the critical climate negotiations in Copenhagen. These messages both provide caution and offer considerable possibilities for action. The WEO suggests that while the current global trends are unsustainable, there are energy futures available to keep the global temperature rise below two degrees Celsius above pre-industrial levels.
5. We underline our commitment to international efforts to combat dangerous climate change and welcome the Major Economies Forum (MEF) recognition of the scientific view that the increase in global average temperature above pre-industrial levels ought not to exceed 2 degrees Celsius. We call upon the 2009 UN Climate Conference in Copenhagen (COP 15) to reach an ambitious agreement involving all nations which can deliver tangible results to steer the world towards a clean and secure energy future.
6. We note that the costs of inaction are higher than the costs of action and that IEA scenarios show that emissions must begin dramatically declining within the next ten to fifteen years. In this regard, we are willing to share with all countries the goal of achieving at least a 50 percent reduction of global emissions by 2050 and recognise that this implies that global emissions need to peak as soon as possible and decline thereafter. As part of this, we also acknowledge the goal, as stated in the Leaders' Declaration of the G8 L'Aquila Summit, to reduce developed countries' collective emissions of greenhouse gases in aggregate by 80 percent or more by 2050 compared to 1990 or more recent years.
7. We note that most of the actions to mitigate climate change need to take place in the energy sector which accounts for over 60 percent of global greenhouse gas emissions. As ministers with the responsibility for energy, we commit ourselves to lead and support in every way efforts to create low-carbon growth. We agree that the IEA Secretariat should continue to make its objective data and impartial analysis available to all parties involved in climate negotiations.
8. International efforts to improve energy efficiency and accelerate research, development and deployment of a wide spectrum of low-carbon technologies are essential. We recognise the IEA contribution on identifying best practices and priorities in these areas. The IEA should strengthen its work on energy efficiency and renewable energy statistics and indicators, and continue developing roadmaps for energy efficiency, renewable and other low-carbon technologies to support a transition to a low-carbon and energy secure economy. We also ask the IEA to develop its proposals to create a low-carbon energy technology platform in concert with other countries and relevant international organisations so that IEA Member countries can lead and support efforts to accelerate the development and spread of such technologies. In turn, we agree more effort should be made to increase substantially public-sector investments in research, development and demonstration of these technologies, with a view to doubling such investments by 2015. We call upon the private sector to increase its investment in these areas as well.
9. Recognising that every country must determine its own energy mix, fossil fuels will likely continue to provide a very large share of the energy used throughout the world for many years. In this context, countries should work to increase the efficiency with which they use fossil fuels, switch to lower emitting fuels, such as natural gas, wherever practical, and accelerate their efforts to develop carbon capture and storage (CCS) technologies. We welcome the recently published IEA CCS Roadmap which suggests that greater efforts are needed to demonstrate CCS at scale before 2020 in developed and emerging economies, wherever possible. Renewables and nuclear power provide other important alternatives for many countries. Our governments will work towards ambitious objectives for energy efficiency and renewable energy in order to provide clear signals for private sector investments.

A More Secure Energy Future

10. Energy security remains our paramount goal and we confirm that well-functioning, transparent energy markets and adequate investment in diverse energy sources are the best ways to assure it. We note that policies to improve energy efficiency and promote low-carbon technologies improve energy security as well as reduce emissions.
11. We recognise that a wide range of emergency measures, including, where feasible, expanded use of storage in countries heavily dependent on imports, are necessary to withstand sudden, severe supply disruptions. We applaud the IEA's work to maintain our vital oil emergency response capability, and ask the Secretariat to explore further ways to involve non-Member stockholding countries in the coordination of future releases from strategic petroleum reserves. Noting that natural gas and electricity supplies are critical to our economies, we resolve to implement recommendations as listed in paragraph 14 of the Action Plan to improve gas security. The IEA can play a strong role in helping Member countries improve their preparedness for possible gas supply disruptions, and can propose coordinated actions in case of an emergency, when appropriate.
12. We reconfirm our commitment to working with our partners in the Joint Oil Data Initiative (JODI) to improve transparency through further data exchanges and by broadening JODI to include data on natural gas and to explore the possibility to extend JODI to oil and gas investment plans and reserves.
13. Recognising the negative impact of extreme price volatility on our economies, we encourage the Secretariat to continue work on understanding the impact of physical, financial and policy factors on oil prices. In this regard, we invite the IEA to continue studying the size and effects of energy subsidies. We note that the G20 have called upon relevant regulators to also collect related data on over-the-counter oil markets and to take steps to combat market manipulation leading to excessive price volatility. We invite the Secretariat to examine how market distortions can feed price volatility. Developing a clearer picture of current and future trends in oil markets will reduce uncertainty and we call for further efforts by the IEA to engage with other energy related organisations and processes to exchange information to produce more accurate demand and supply outlooks. We also ask the Secretariat to enhance its cooperation with international organisations and its engagement with market regulators to understand more thoroughly the risks posed by potential market developments.

The Critical Need for Investment

14. The transformation of the world energy sector calls for huge investments in new capital stock, especially low-carbon technologies, advanced power plants of all types, transmission facilities, smart grids, and energy-efficient equipment and appliances. We are concerned by the impact of the economic crisis on investment in the energy sector, and particularly investment in low-carbon technologies, including renewable sources of energy. To avoid this, the current economic crisis should be used as an opportunity to invest in a cleaner, more secure energy future.
15. Recognising that investment shortfalls could have severe consequences for energy security, long term economic growth, and the fight against climate change, our governments have launched programmes to provide economic stimuli that collectively amount to $1.8-trillion, or 4.5 percent of 2008 GDP, with 10 percent of this spending on average directed at developing and deploying low-carbon energy technologies and improving energy efficiency. We note that according to the World Energy Outlook 2009 450ppm scenario, this investment represents an important down-payment on the massive investment required to transform our energy systems in line with IEA proposals for green growth.
16. As the private sector traditionally accounts for the vast bulk of energy investments, strong public-private partnerships are essential to overcome the global energy challenges we face. We welcome the establishment of the Energy Business Council (EBC) and invite this executive-level group to work closely with the IEA Secretariat. We commit to develop long-term frameworks, based on free markets, clear and transparent regulation, and the reduction of non-financial barriers, including complex approval processes. Where appropriate, governments should direct stimulus money to projects, particularly in energy efficiency and low-carbon technologies, that address energy and climate challenges. We welcome the Pittsburgh Summit conclusion to phase out inefficient fossil fuel subsidies over the medium term. Inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in low-carbon energy sources and undermine efforts to deal with the threat of climate change. An ambitious Copenhagen agreement would also provide impetus to investment in low-carbon energy technologies by providing clarity on targets and future policies.

A World-Wide Collective Endeavour

17. To respond to the pressing global challenges of climate change and rising energy demand and to secure a more prosperous and sustainable energy future, the IEA and its Member countries are striving to enhance international cooperation. Together, IEA member countries and their partner countries are already addressing many of the pressing energy challenges discussed at this meeting.
18. With this in mind, we ask the IEA Secretariat to expand the training and workshops it offers to partner countries in order to bolster their capacity to formulate sound energy policy. This will help enhance access to energy and alleviate energy poverty, especially in Africa and Asia. The IEA shall continue to address energy poverty in developing countries, building on its existing skills, knowledge and experience in the global energy field. The new IEA Training and Capacity Building Programme demonstrates that the IEA is serious in its desire to engage with partner countries and that the IEA is accessible for them. We also ask the IEA Secretariat to convene, during 2010, senior officials from IEA Member countries and a select range of other countries and international organisations, including today's guests, to discuss an international partnership on energy and sustainability. In this regard, enhanced coordination with regional bodies, such as APEC and the African Union would be fruitful.
19. We note the recent creation of a range of new international energy institutions to further our common energy goals. We are pleased that the IEA will soon host the secretariat of the International Partnership for Energy Efficiency Cooperation (IPEEC) and that IPEEC will benefit from IEA's work on global energy efficiency and energy management. We welcome the founding of the International Renewable Energy Agency (IRENA) and the Global Carbon Capture and Storage Institute (GCCSI) and invite these two new bodies to work closely with the IEA in order to pursue synergies. We welcome and support the Secretariat's engagement with the IEF Expert Group established following the Jeddah and London Energy meetings. We also congratulate the Carbon Sequestration Leadership Forum (CSLF) for its contribution to furthering CCS, including through its recent Ministerial meeting, and encourage its fruitful collaboration with the IEA.

Conclusion

20. We, the ministers for energy from the Member countries of the IEA, believe that urgent action is needed to ensure a transition to a low-carbon economy and a more secure, cleaner and sustainable energy future. We will cooperate to make this transition as swift as possible and commit ourselves to implement fully and expeditiously the Copenhagen COP 15 outcomes in our respective areas of responsibility. Enhanced cooperation and broader dialogue with countries outside the IEA will help to make a strong contribution to a more secure, cleaner and sustainable energy future. We are aware that without public acceptance, it will be even harder to realise these ambitions. We commit ourselves to communicate the importance of a climate friendly energy future to our publics and seek their support.
21. We approve the Action Plan annexed to this statement and welcome the Joint Statements with China, India and Russia.