PUBLIC-PRIVATE ROUNDTABLES AT THE CLEAN ENERGY MINISTERIAL MEETING Abu Dhabi, United Arab Emirates 6 April 2011 The Clean Energy Ministerial took place in the Emirates Palace Hotel in Abu Dhabi. After the sessions, participants visited the city of Masdar, constructed south-east of Abu Dhabi, which has a goal to rely entirely on solar energy and other renewable energy sources, with a sustainable, zero-carbon and zero-waste ecology. World Economic Forum World Business Council for Sustainable Development – WBCSD 91-93 route de la Capite Chemin des Conches 4 CH-1223 Cologny/Geneva 1231 Conches-Geneva Switzerland Switzerland Tel.: +41 (0)22 869 1212 Tel.: +41 (0)22 839 3100 Fax: +41 (0)22 786 2744 Fax: +41 (0)22 839 3131 E-mail: [email protected] E-mail: [email protected] www.weforum.org www.wbcsd.org © 2011 World Economic Forum All rights reserved. This material may be copied, photocopied, duplicated and shared provided that it is clearly attributed to the World Economic Forum. This material may not be used for commercial purposes. REF: 210711 “The Clean Energy “We look forward to Ministerial is a unique hosting the third Clean forum for accelerating the Energy Ministerial next transition to clean energy. year in London and will Engaging the private sector be working actively with is essential and the public- partner governments, the private roundtables at private sector and others the second Clean Energy over the next 12 months Ministerial gave fresh to make progress on the insight into the policies deployment of clean energy needed to encourage technologies. The public- private investment in efficiency and clean energy. private roundtables played an important role in the I look forward to continuing our work with our Clean Energy Ministerial in April in Abu Dhabi and international colleagues and the private sector to we will be working to build on these for CEM3.” seize the clean energy opportunity.” Chris Huhne, Secretary of State, Department of Energy and Steven Chu, Secretary of Energy, USA Climate Change, United Kingdom “In the spirit of the Clean “The Clean Energy Energy Ministerial (CEM) Ministerial is emerging as a process, we provided key annual forum for driving a unique global forum global progress on clean for the private sector to energy through peer-to-peer directly engage with energy cooperation on best practice ministers at CEM 2 in Abu policies and programmes Dhabi. Business leaders among major economies. and experts from around the We look forward to hosting world engaged in candid the 2013 Clean Energy dialogue on clean energy Ministerial in New Delhi and issues that are being addressed by the various plan to make engagement of the private sector CEM initiatives. It is the private sector that will help central to the agenda.” drive the implementation of these initiatives on the Montek Singh Ahluwalia, Deputy Chairman, Planning ground. In Abu Dhabi we proved that both public Commission, India and private sector ambitions for the CEM are united as we pursue a transition to a global clean energy economy.” Sultan Ahmed Al Jaber, Special Envoy for Energy and Climate Change, Ministry of Foreign Affairs, United Arab Emirates, Chief Executive Officer, Masdar 3 PUBLIC-PRIVATE ROUNDTABLES AT THE CLEAN ENERGY MINISTERIAL MEETING Foreword get to scale. The summary of each of these discussions is presented in this report, together with a list of attendees and more information about the CEM and its related initiatives. As the summaries in this report show, the roundtables at the second CEM in Abu Dhabi stimulated substantive Increasing access to energy is a priority for many countries. public-private-expert conversation. The discussions were Over 1.5 billion people in the developing world still lack considered by all parties to be focused and practical, access to electricity. The International Energy Agency (IEA) delivering clear business recommendations to ministers to forecasts that the world economy will demand at least help drive forward the public-private agenda on scaling up 40% more energy by 2030 compared to today. Yet, under clean energy. business as usual, the IEA forecasts that over 75% of the global increase in energy use to 2030 is expected to be met The World Economic Forum would like to offer its sincere through fossil fuels, especially coal. By 2050, the resulting thanks to those industry partners who co-chaired each carbon emissions could lead to a concentration of carbon in roundtable, as well as to the ministers and officials who co- the atmosphere of over 1,000 parts per million. This is more chaired alongside; to the expert moderators who facilitated than double the level recommended by the IPCC to have a each discussion; and to all of the industry representatives reasonable chance of holding the increase in average global and officials who took part in the discussions in Abu Dhabi temperature to within 2 degrees Celsius, a global target and helped to make the public-private roundtables at the agreed upon by parties at the UNFCCC COP 16 in Cancun, second CEM a success. December 2010. The World Economic Forum was delighted to invite the Yet, the level of investment required to transform the World Business Council for Sustainable Development global economy to a low-carbon path is considerable. (WBCSD) to collaborate in the delivery of the public-private Bloomberg New Energy Finance estimates that the required roundtables at the second CEM, to provide a comprehensive investment for a global clean energy system that limits and coordinated business input. With the United Kingdom average temperature increases to the 2 degree Celsius level agreeing to host the third CEM in 2012 and India and South without compromising economic growth would require US$ Korea the fourth and fifth in the subsequent years, the Forum 500 billion per year by 2020. The World Bank estimates looks forward to reprising and deepening its role with the the incremental financing needs of climate mitigation in CEM and to continuing its successful collaboration with the developing countries at approximately US$ 140-175 billion WBCSD. per year over the next 20 years, and a further US$ 30-100 billion per year for adaptation over the same period. Finally, may we offer a note of deep gratitude to all of those staff members from the CEM secretariat, the US Department The question of how to rapidly scale-up clean energy of Energy, the WBCSD and the World Economic Forum who solutions, from a human development, technical, financial worked hard to co-design and co-deliver the roundtable and environmental point of view remains one of the world’s sessions for the meeting in Abu Dhabi. core economic growth challenges. To meet it will require substantive public-private collaboration and innovation We look forward to working together on the third Clean across multiple geographies and sectors. It is an agenda Energy Ministerial in the United Kingdom in the spring of upon which the World Economic Forum, its Industry Partners 2012 and to the continued success and impact of the Clean and its government, expert and civil society constituents Energy Ministerial process in the years ahead. consequently place much focus. Sincerely For these reasons, the World Economic Forum was delighted to be invited by the US Department of Energy to help convene a series of public-private roundtables at the first Clean Energy Ministerial (CEM) meeting in July 2010 in Washington DC. A report-out on the success of the first CEM at the Forum’s Annual Meeting in Davos in January Dominic Waughray 2011 was also well received by business and government Senior Director, Head of Environmental Initiatives representatives. World Economic Forum The secretariat for the second CEM invited the World Economic Forum in February 2011 to continue its role as private sector convener for the process. It requested the Forum to convene and co-host with the CEM a series of Roberto Bocca four roundtable discussions on key clean energy topic areas, Senior Director, Head of Energy Industries each requiring substantive public-private interaction to World Economic Forum 4 Introduction The CEM process recognizes that private sector participation is essential for the development and implementation of effective and sustainable policies and solutions to transition to a clean energy future. Building on the successful input of World Economic Forum member companies to the first CEM meeting, the Forum was The Clean Energy Ministerial (CEM) was launched in asked to convene public-private roundtables for the 2010 as a high-level global forum to promote policies second ministerial. The Forum reached out to the World and programmes that advance clean energy technology, Business Council for Sustainable Development and to share lessons learned and best practices, and to together organized four roundtables that involved a robust encourage the transition to a global clean energy economy. exchange of views on priorities for action, successful The first Clean Energy Ministerial was held in Washington models to build from and opportunities for international DC in July 2010 and included the launch of several new collaboration. The roundtable conversations included: initiatives designed to improve energy efficiency, enhance clean energy supply and expand clean energy access. The • Policies in Support of the Global Scale-Up of second Clean Energy Ministerial was hosted by the United Renewable Energy Arab Emirates in Abu Dhabi in April 2011. The third CEM is scheduled for spring 2012 in London, and India and Korea • Innovative Technologies and Business Models for have offered to host future meetings in 2013 and 2014. It Energy Efficiency is clear that the CEM has become an important forum for international clean energy discussions since its launch last • Sustainable Cities as Drivers of Sustainable Economic year.