TL: ENERGY CRISIS - THE NEED FOR A NEW INTERNATIONAL AGENCY SO: Greenpeace International (GP) DT: March 2, 1992 FN: ENVGAIR\A&EFUL.APG Keywords: unced greenpeace reports gp energy un solutions conferences atmosphere / Prepared for the Fourth Session of the Preparatory Committee for the United Nations Conference on Environment and Development 2 March - 3 April 1992 New York, USA Greenpeace International (GP) ENERGY CRISIS - THE NEED FOR A NEW INTERNATIONAL AGENCY INTRODUCTION In two recent papers Greenpeace has argued that a new international agency for the promotion of technologies for renewable energy and efficiency (TREEs) urgently needs to be created. This agency would be a valuable tool to accelerate the penetration of clean and efficient energy technologies in both industrialised and industrialising countries. TREEs constitute the fastest way of combatting global warming by cutting air pollution hazards arising from the use of fossil fuels, reducing dependence on imported sources of fuels and dispensing with the risks of nuclear power. TREEs and associated policies can maximise the benefits of energy sector investments. This paper summarises the supporting rationale, specific objectives, functions, funding and structure of an international TREEs agency. Greenpeace recommends that this Agency is established by 1995. THE IMPACTS OF CONVENTIONAL COMMERCIAL FUELS Over the last 40 years, a three - to four - fold expansion in the use of fossil fuels has produced a corresponding increase in emissions of carbon dioxide (CO2) - the leading "greenhouse gas". The most likely consequence of allowing current trends in emissions of greenhouse gases to continue, is an unprecedented increase in the world's average temperatures. This is expected to be equivalent to telescoping into one human lifetime temperature changes which have occurred naturally over a period of thousands of years. Such rapid changes in climate are predicted to have devastating social and environmental impacts. Rising sea levels, and even slight alterations to rainfall patterns, would jeopardise the precariously-balanced survival of hundreds of millions of people. Ecosystems across wide regions could be unable to adapt. Growth in energy use has also led to dramatic increases in air pollutants such as sulphur dioxide and nitrogen oxides. These are prime contributors to urban smog and acid rain which damage human health, forests, reduce crop yields, and erode structures in both industrialised and industrialising countries. In addition, heavy dependence on imported fossil fuels can place national economies and energy security at the mercy of fluctuations in energy prices. Consuming these fuels in energy-wasting systems exacerbates the dependency. Other energy supply technologies, such as nuclear power or large dams, also pose unacceptable or intractable problems. Among these are economic, health and environmental hazards. Nuclear power also carries the additional risk of nuclear weapons proliferation. OPTIONS FOR THE FUTURE It is imperative for countries to make smooth but rapid moves towards highly efficient energy systems based on renewable forms of energy. The adverse impacts of TREEs are of a significantly lower order than those of fossil fuels and nuclear power. Investments in improved energy efficiency can reduce new supply capacity requirements and so minimise environmental and economic impacts. Appropriately-sited modern renewable technologies such as biomass combustors, wind turbines and geothermal wells can also produce energy more cheaply than new fossil fuelled technologies. Even the more expensive forms of renewable energy, such as solar thermal, tidal and small scale hydro-electric energy, are available at significantly lower cost than nuclear power. THE OBSTACLES TO PROGRESS A number of factors have prevented TREEs from being implemented more quickly. These include misplaced priorities in governments' energy research and development, which continue to favour fossil and nuclear fuels over TREEs; financial rates of return which favour large-scale energy supply projects in preference to TREEs; energy prices which exclude the hidden costs to society; and the general absence of formal institutional responsibilities or regulatory incentives to promote technology development, transfer and training in the use of TREEs. CURRENT INTERNATIONAL INSTITUTIONS Current intergovernmental energy structures reflect an outdated approach to energy and environment policy. Nuclear power - which contributes less than five percent of global energy supply - is the only energy technology to benefit from dedicated international bodies such as the International Atomic Energy Agency, Euratom and the Nuclear Energy Agency of the OECD. Fossil fuels are actively promoted by the Organisation of Petroleum Exporting Countries (OPEC), and by the International Energy Agency, which excludes developing countries. Preparatory meetings for UNCED have underlined the urgency of implementing international measures to promote the development of TREEs. A string of high-level summit and ministerial meetings have called for their active promotion without, however, any concrete action taking place. THE GREENPEACE PROPOSAL Greenpeace proposes the creation of an entirely new agency with responsibility for the promotion of TREEs and argues that it would be inappropriate for existing bodies to take on this vital role. The structure of a TREEs Agency must be established in such a way as to minimise inefficiency and bureaucracy. Objectives of the Agency The Agency's operations would be related to four main objectives: þ climate protection: effecting rapid reductions in greenhouse gas emissions; þ environmental protection: reduction of other energy-related pollutants affecting air, water and land; þ equity: ensuring the widest availability of TREEs, to benefit the environment and economic development of participating nations, especially developing countries; þ industrial innovation: the accelerated development of a new range of clean energy industries for the 21st century. Functions of the Agency Among the principal functions of the Agency would be to: þ assist states on identification of TREEs "reserves"; þ conduct and stimulate research, development and demonstration of TREEs; þ acquire and disseminate intellectual property concerning TREEs; þ assist in increasing the market penetration of TREEs; þ assist in information generation and dissemination, and exchange of expertise; þ operate education and training programmes on TREEs technologies and policies; þ assist states in meeting targets for greenhouse gas reductions; þ catalyse liaison between related agencies, industry, academics and NGOs; þ assist in development of standards and norms for manufacture and performance of TREEs; þ administer funds and provide financial advice on TREEs projects. Funding Funding need not be a constraint to the establishment of an agency. An initial annual budget of $30 billion would enable the implementation of a meaningful programme of work. This sum could be raised entirely by an energy tax of $1/per barrel energy equivalent levied on fossil and nuclear energy in OECD countries. Considerable additional sums could also be made available by diverting away from World Bank control even some of the $3-4 billion which it currently lends each year on energy projects, and a proportion of the $20 billion per year which it leverages in co-financing. Harnessing the funds of other multilateral lending institutions could also be a major contribution. New notions of international security arguably justify redirection of defence budgets towards TREEs, as an insurance option against environmental and development risks. A proportion of global arms expenditure - nearly $1 trillion per year, or over $2.5 billion a day, could be made available for promoting energy and environmental security. Establishment and Structure The agency might be established in a number of ways. The two main options are by: þ a legal statute, concluded as a result of a special international conference on TREEs; þ a protocol to the Framework Climate Convention, possibly linked to targets for increasing the contribution of energy efficiency and renewables to national energy needs. PROPOSALS FOR UNCED UNCED should specifically request the United Nations to establish an international agency for the promotion of technologies for renewable energy and efficiency (TREEs).