IEA issues 'cross-country overview' of energy policies

Doris Leblond
OGJ correspondent

PARIS, Dec. 7 -- The International Energy Agency has made its first attempt to identify energy-policy challenges common to the 26 member countries.

Its 30th-anniversary edition of an annual review of energy policies takes a "cross-country" approach comparing policy approaches of member countries during the past 4 years.

Executive Director Claude Mandil said the comparison would "serve as a touchstone for future in-depth reviews." He called reviewing energy policies "the chief activity of the IEA, carried out on a peer basis for each individual country every 4 years."

The IEA grew out of the Organization for Economic Cooperation Development in 1974 in response to the Arab oil embargo.

Mandil said IEA's role has changed from that of watchdog over oil supply to coordinator and mentor "to help countries achieve strong, coherent, and public energy policies," which he framed in terms of energy security, economic development, and environmental protection.

Among areas where energy policies have "room for improvement," Mandil said, are "public awareness of energy policies and more cost-effectiveness in climate change mitigation."

In a statement, the agency said the need for public awareness was especially important in climate-change issues "as the public is partly responsible for the rapid increase in greenhouse gas emissions."

It also said "not-in-my-backyard" obstructionism toward energy investments "has to be overcome" and regretted that in most IEA countries cost-effectiveness in dealing with greenhouse gas emissions isn't integral to decision-making.

"For example," the statement said, "some policies promoting renewable energies are instrumental but too costly."

Environmental costs should be included in energy prices and taxation and stronger energy efficiency measures enforced in the transport sector, the agency stated. In the liberalized energy markets, it said, many "incumbents" (former electric power and gas monopolies, for instance) are an obstacle to effective competition.

IEA said governments have a role in liberalized markets: They must ensure undistorted, cost-reflective prices for efficient market operation and sound investments. They also have a role in research and development.

Challenges to be met over the next 30 years, IEA said, include combining energy security with greater economic efficiency and climate change mitigation; coping with growing dependence on Middle Eastern oil and gas; husbanding massive investment to increase global energy supply; and adopting tough policies to abate energy-related carbon dioxide emissions.