SESSION CO 73 Regional cooperation for sustainable energy rd MMISSION 73rd COMMISSION SESSION Regional cooperation for sustainable energy REGIONAL COOPERATION REGIONAL COOPERATION FOR SUSTAINABLE ENERGY IN ASIA AND THE PACIFIC THE AND ASIA IN ENERGY SUSTAINABLE FOR COOPERATION REGIONAL In the highly diverse Asia-Pacific region, energy resources vary among countries, however in most cases are not managed efficiently. Some countries are dependent on fuel imports which create substantial macroeconomic FOR SUSTAINABLE ENERGY complications with fluctuating oil prices. While energy shortages and structural issues in developing countries impede the ability of countries to expand access to energy, thus hindering broader national development objectives. Growing air pollution from fuel emissions have risen unabatedly as most countries are heavily IN ASIA AND THE PACIFIC dependent on fossil fuel, in particular coal. Persistent disruptions in supply of electricity and its costs are now hurting the competitiveness of productive sectors. Along with ensuring supply of power generation, many countries face high transmission and distributions costs as well as leakages that need to be simultaneously addressed. The main purpose of the theme study is to call on policymakers in Asia and the Pacific for urgent actions to transform national energy systems to achieve the Sustainable Development Goals (SDG), particularly Goal 7. The energy system transformation is the only way to address the sizeable energy deficit which impedes progress on energy access, gaps between commitments under the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change and lack of coherent energy strategic and policy frameworks. The theme study provides member countries with a menu of options on legislative, regulatory, and programmatic initiatives that policymakers may consider as they develop strategies for an economically viable, socially acceptable, and environmentally sound energy transition. ISBN 978-92-1-120744-6 17-00460 United Nations publications may be obtained from bookstores and distributors throughout the world. Please consult your bookstore or write to any of the following: Customers in: America, Asia and the Pacific Email: [email protected] The shaded areas of the map indicate ESCAP members and associate members. Web: un.org/publications Tel: +1 703 661 1571 Fax: +1 703 996 1010 Mail Orders to: United Nations Publications PO Box 960 Herndon, Virginia 20172 United States of America ESCAP is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific. Its mandate is to foster Customers in: Europe, Africa and the Middle East cooperation between its 53 members and 9 associate members. ESCAP provides the strategic link between global and country-level programmes and issues. It supports Governments of countries in the United Nations Publications region in consolidating regional positions and advocates regional approaches to meeting the region’s c/o Eurospan Group unique socio-economic challenges in a globalizing world. The ESCAP office is located in Bangkok, Email: [email protected] Thailand. Please visit the ESCAP website at www.unescap.org for further information. Web: un.org/publications Tel: +44 (0) 1767 604972 Fax: +44 (0) 1767 601640 Mail orders to: United Nations Publications Pegasus Drive, Stratton Business Park Bigglewade, Bedfordshire SG18 8TQ United Kingdom For futher information on this publication, please address your enquiries to: Chief Conference and Documentation Services Section Division of Administration Economic and Social Commission for Asia and the Pacific (ESCAP) United Nations Building, Rajadamnern Nok Avenue Bangkok 10200, Thailand Tel: 66 2 288-2109 Fax: 66 2 288-3018 Email: [email protected] REGIONAL COOPERATION FOR SUSTAINABLE ENERGY IN ASIA AND THE PACIFIC REGIONAL COOPERATION FOR SUSTAINABLE ENERGY IN ASIA AND THE PACIFIC Shamshad Akhtar Executive Secretary Kaveh Zahedi Deputy Executive Secretary Hongpeng Liu Director, a.i., Energy Division United Nations publication Sales No. E.17.II.F.10 Copyright © United Nations 2017 All rights reserved Printed in Bangkok ISBN: 978-92-1-120744-6 e-ISBN: 978-92-1-060570-0 ST/ESCAP/2777 Photo credits: Cover: Shutterstock.com Chapter 1: Sura Nualpradid/ Shutterstock.com Chapter 2: ESCAP Photos/ Shutterstock.com Chapter 3: Scott Hales/Shutterstock.com Chapter 4: Vitmark/Shutterstock.com This publication may be reproduced in whole or in part for educational or non-profit purposes without special permission from the copyright holder, provided that the source is acknowledged. The ESCAP Publications Office would appreciate receiving a copy of any publication that uses this publication as a source. No use may be made of this publication for resale or any other commercial purpose whatsoever without prior permission. Applications for such permission, with a statement of the purpose and extent of reproduction, should be addressed to the Secretary of the Publications Board, United Nations, New York. REGIONAL COOPERATION FOR SUSTAINABLE ENERGY IN ASIA AND THE PACIFIC iii FOREWORD The transition to sustainable energy is a cornerstone of the 2030 Agenda for Sustainable Development in Asia and the Pacific. Energy is a common thread that connects multiple areas of development for countries across the region. For countries at every stage of development, energy assumes a critical importance. Ready access to affordable energy is essential for both economic growth and social development. Energy powers industry, moves people and goods through the region and underpins key sectors such as healthcare, education and ICT. Our future prosperity and well-being hinges on the capacity to supply an increasing amount of energy that is affordable, accessible and reliable. As important as these objectives are, ensuring the sustainability of our energy supply is a long term, fundamental and overarching requirement. The historical reliance of the region on fossil fuels and the inefficient use of energy cannot continue. These have led to unacceptable impacts through climate change, air pollution and local environmental degradation. This requires an energy transition — a shift to low carbon, nonpolluting energy generation and increased energy efficiency that brings the benefits of modern energy to all. Global aspirations for an energy transition are reflected in the Sustainable Development Goals, which through Goal 7, to achieve sustainable energy for all by 2030. The Paris Agreement on climate change also requires a transformation to low carbon energy. As energy accounts for two thirds of the greenhouse gas emissions in Asia and the Pacific, an energy transition in the region must be at the core of its response to climate change. While there is consensus among countries in the region on the need to transition to a sustainable energy system, the diversity of circumstances they face means there is no single pathway or timeframe to achieve this. Asia-Pacific countries are at different levels of development and have uneven resource endowments, with differing geography and technological capacities. There are multiple policy options for accelerating progress towards a sustainable energy future, for which each country must calibrate its own response. Many countries are well advanced along the pathway to a sustainable energy future, while others have only started. Regional cooperation to mobilize capacities, knowledge, technology and investment, as well as to establish regional markets is an essential part of the sustainable energy transition. In response to these opportunities, and to add to the knowledge base and catalyse action, member States of ESCAP requested the secretariat to develop this 2017 theme study “Regional Cooperation for Sustainable Energy in Asia and the Pacific”. This publication takes stock of the challenges and progress made across the region in transitioning to sustainable energy. It identifies some of the strategies that the region’s policymakers can consider that balance the economic, social and environmental dimensions of energy and provides a series of recommendations on how to enact a regional cooperation framework for sustainable energy. It is clear that the transition to sustainable energy in the Asia-Pacific region has already begun. Region-wide, investment in renewables has overtaken investment in fossil fuels. More advanced energy efficiency is playing a role in decoupling economic growth from energy use in many countries. Cross-border energy connectivity links are being installed and many others are under consideration. Energy innovations are proceeding at a rapid pace and are unleashing opportunities for the disruption of traditional energy supply models. Clean technologies, such as solar, are providing low cost electricity at the household, district and industrial scales. Storage technologies, smart grids and electric vehicles are iv REGIONAL COOPERATION FOR SUSTAINABLE ENERGY IN ASIA AND THE PACIFIC poised to transform the electricity supply and transport sectors. Adapting to this new reality and harnessing these trends to support the energy transition requires innovative policies, systems thinking, new sources of finance and advanced business models. ESCAP, as the regional arm of the United Nations in the Asia-Pacific region, can play a role in meeting the aspirations of its member States to develop their own energy transition pathways. Through its newly formed Committee on Energy