EWG59 Indonesia 25-27 August 2020 EWG59 Summary Record The 59th Meeting of the Energy Working Group (EWG59) was hosted by Indonesia in virtual form from 25-27 August 2020. The meeting was co-chaired by Dr Jyuung-Shiauu Chern, EWG Lead Shepherd, and Mr Hariyanto, Director, Energy Conservation, Ministry of Energy and Mineral Resources, Indonesia. Delegates from 19 APEC economies, namely Australia; Canada; Chile; Peoples' Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Peru; the Philippines; Russia; Singapore; Chinese Taipei; Thailand; the United States; Viet Nam attended the meeting. Representatives from the Asia Pacific Energy Research Centre (APERC) and APEC Sustainable Energy Center (APSEC); APEC and EWG Secretariats; Expert Group Chairs on Energy Data and Analysis (EGEDA), Energy Efficiency and Conservation (EGEEC), New and Renewable Energy Technologies (EGNRET), Clean Fossil Energy (EGCFE); Low Carbon Model Town Task Force (LCMT-TF); and Energy Resiliency Task Force (ER-TF) also participated in the meeting. Attachment A provides a full list of EWG59 participants. 1. Opening Addresses and Adoption of the Agenda The meeting was opened by the remarks of the Co-chair, Mr Hariyanto. Mr Hariyanto appreciated delegates for participating in this virtual EWG meeting and encouraged EWG members to achieve APEC energy goals. EWG Lead Shepherd, Dr Jyuung-Shiauu Chern, appreciated Indonesia’s hospitality and members’ participation in the virtual meeting during the challenging time. The virtual meeting is shortened to 2 half days to accommodate many time zones across the region; however, it is expected that members can still take advantage of this opportunity to have discussion on important energy issues. The Lead Shepherd confirmed there is no objection to the Agenda. Actions Arising/Next Steps The Agenda for EWG59 was approved by members. 2.COVID-19 response, adjustment for EWG’s work and other emerging issues a. Adjustment of annual EWG work plan Ms Lynn Wan-Ling Wang, EWG Secretariat, reported that APEC fora have been requested by senior officials to check any additions/changes of their Work Plans in response to COVID-19. Revised 2020 EWG Work Plan, incorporated with members’ inputs mostly regarding the rescheduled events/activities, has been endorsed by EWG members on 7 August and submitted to APEC senior officials. b. Adjustment of Strategic Plan (2019-2023) EWG Secretariat reported that senior officers did not request APEC fora to adjust strategic plan like work plan; therefore, members could take the time to consider the amendments and continue to discuss after the meeting. c. Inputs to MRT statement Mr Tetsuya Shimokawa, the Program Director, appreciated the host economy’s hostility. APEC Secretariat reported that New Zealand, the APEC Host of 2021, has made announcement that all APEC meetings that are supposed to be held in New Zealand in 2021 will be held virtually instead. Therefore, members’ opinion and sharing on how to conduct virtual meeting effectively are highly welcome. Mr Shimokawa also mentioned that energy security, energy resilience and energy access are three focus areas of EWG’s inputs to APEC MRT statement on COVID-19. d. Discussion of recent oil price trend and possible effects on EWG’s work such as APEC Energy Demand and Supply Outlook, Energy Intensity Reduction Goal and Renewable Energy Doubling Goal Mr James Kendell, EGEDA Chair, reported that with regard to APEC Energy Intensity goal, sustained reduction of energy intensity is uncertain. Meanwhile, with regard to APEC Renewable Energy Doubling goal, the share of renewable energy is expected to increase continually yet with a slower pace. Future progress of APEC Renewable Energy Doubling goal will largely depend on governments’ policies. EGEDA also noted that APEC members should be cautious to change APEC energy goals until more data are available. Ms Tarcy Sih-Ting Jhou, EGNRET Secretariat, reported the Impact of COVID-19 on Renewable Energy Development. The additions of renewable electricity capacity will decline by 13% in 2020 compared to that of 2019, the first downward trend since 2000. EGNRET provides two suggestions from IEA and IRENA: (1) The design of economic stimulus packages presents a major opportunity for governments to link economic recovery efforts with clean energy transitions –and steer the energy system onto a more sustainable path; (2) Stimulus and recovery measures in response to the pandemic must foster economic development and job creation, promote social equity and welfare. In response to COVID-19, the Lead Shepherd requested EGNRET to carry out the study on the impact of pandemic on renewable energy; EGEEC is requested to discuss energy efficiency improvement as policy solutions; EGEDA is requested to keep monitoring the energy data; APERC’s study on the impact of pandemic on oil and gas security is appreciated. Actions Arising/Next Steps • EGNRET is requested to carry out the study on the impact of pandemic on renewable energy. • EGEEC is requested to discuss energy efficiency improvement as policy solutions. • EGEDA is requested to keep monitoring the energy data. 3. Policy Dialogue Malaysia appreciated the Indonesia’s hospitality in hosting the meeting, and stated that since APEC is comprised of the world’s biggest energy consumer and supplier, it is important to accelerate the deployment of renewable energy within the region. The purpose of the theme of policy dialogue on Renewable Energy Transition for Sustainable Growth is to encourage discussion on how to ensure sustainable and continuous economic growth and affordable energy access. APSEC reported a paper on Renewable Energy Transition for Sustainable Growth for member’s information. The draft is consisted of energy transition, energy and climate change goal, impact of COVID-19 and policy for sustainable recovery, facilitate effective energy transition, and energy transition and sustainable growth. APEC economies are suggested to formulate and implement sustainable Post COVID-19 recovery policies, such as increasing investment in renewables, supporting emerging technologies on renewable energy, energy storage and hydrogen, deploying electric vehicles, and facilitating international collaboration. The Lead Shepherd appreciated Malaysia and APSEC’s work on Renewable Energy Transition for Sustainable Growth paper, and encouraged members to disseminate this paper through domestic channels to APEC senior officials. The theme of policy dialogue for EWG 60/61 proposed by New Zealand is Incentives and tools for accelerating development of low emissions energy. Actions Arising/Next Steps • Members are encouraged to disseminate the paper on Renewable Energy Transition for Sustainable Growth through domestic channels to APEC senior officials. • The theme of policy dialogue for EWG 60/61 proposed by New Zealand is Incentives and tools for accelerating development of low emissions energy. Members are encouraged to present a new vision/initiative on this topic. 2 4. Notable Energy Development since EWG 58 Japan reported its Environment Innovation Strategy, which aim to establish innovative technologies that contribute to substantial reduction of global GHG emissions, and the revision of major laws for rebuilding electricity supply systems. Singapore reported the decrease in electricity demand due to COVID-19 pandemic. While the residential electricity demand increased, it was not enough to offset the decrease of electricity demand in commercial and industrial sector. Chile reported the plan to phase out coal-fired power plants by 2040 and to achieve carbon neutrality by 2050, and updated its Energy strategy including long-term mechanism. Republic of Korea reported the Korean Green New Deal, which is aimed to transform Korea into a green society through accelerating infrastructure for energy transition, deployment of low carbon and decentralized energy, and innovation in the Green industry. Australia expressed its gratitude for APEC’s assistance during the bush fire this year, and stated that Australia has taken several steps to enhance long-term energy security to face the risks such as pandemic and bush fire. People’s Republic of China updated its effective approaches as response to COVID-19, and stated that in terms of energy consumption, coal and gas have recovered to the same level as the same period in 2019. Thailand reported the policy focus on energy transition and related programs such as rooftop solar PV promotion and its intention to expand LNG facilities in the next decade. Indonesia reported Rooftop Solar PV Program and Bio-energy Development including B-30 Mandatory and Green Fuel, Government Drilling, and Flores Geothermal Island. Malaysia reported the adjustment of renewable energy target to 30% (original target was 20%), the progress of solar auctioning and collaboration with IRENA. Canada reported the efforts of ensuring the stability of energy sector during COVID-19, accelerating Paris Agreement, and achieving carbon neutrality by 2050. The United States reported the new technologies regarding energy storage, carbon-neutral fuels and hydrogen, and relative subsidies for breakthrough technology for critical materials that enables wind turbines, solar panels and electric vehicles. The Philippines reported the emergency response to COVID-19, energy efficiency policies, and update on the Development of the Downstream Natural Gas Industry. Chinese Taipei reported its offshore wind power development, which aims