ICC Energy Commission's energy related messages

Commission on Environment and Energy

General Context

The process to achieve sustainability is global, ongoing and never-ending in a world where 1,6 billion people live without commercial energy - where one billion of the world population of six billion use nearly 60 % of the energy consumed and five billion the other 40 %.

Global economic growth is expected to average 1,7 %/a in the next 30 - 40 years; growth in developing countries will be over 2 %/a. This economic growth means at least 1,2 % or even 2%/a growth in global energy consumption - for the most part in developing countries.

Such growth compounds to an almost doubling of the present energy consumption by the year 2025 and eventually tripling by 2050.

In a business as usual scenario almost the same picture is presented in respect of the growth of the CO2 emissions from the energy sector, with these emissions linked to the threat of global climate change.

ICC Energy Commission, in its recommendations to the sustainable development emphasises the following energy related messages:

1. All energy options -present and the future- must be kept open for the next century ahead of us.

2. There is no quick transition from existing major energy systems to new ones. Even oil took some fifty years to become a major energy system, and the new systems ahead of us are much more demanding. This is why strong research, development and deployment efforts are needed for the introduction of new energy technologies and systems.

3. Electricity is the largest carrier of energy and its contribution is set to grow significantly as renewable technologies penetrate the market. Other form of secondary energy, hydrogen, although in its early stages of development, will also grow essentially in coming decades.

4. New technologies for energy efficiency, such as combined heat and power production (CHP), must be enhanced.

5. Subsidised energy prices bring about higher energy intensities in the society, and involve the risk of wrong signals.

6. Energy/environment taxes and other fiscal modalities, as well as regulation should be avoided whenever possible because such measures distort and undermine the market as the most efficient and dynamic measures to fully and capably respond to energy demand and supply.

7. The role of voluntary initiatives and agreements is utmost important to complement - and even replace fiscal instruments and regulation.

8. Final energy policy and decisions between energy options, including project activities under the CDM and JI, should be made at the national level with a full understanding of local conditions and the need for technology transfer and capacity building and other project-specific requirements.

9. Commercialisation of all new energy technologies is the key for their future success; only commercialised technologies can work in the long run.

June 18.2001
Energy Commission

Juhani Santaholma
Chairman