Implementation Strategy for APEC's Energy Program

To integrate APEC's broad and active energy program and make it more effective.

To demonstrate to Economic Leaders the leading role of energy in maintaining economic recovery, continuing the momentum for reform, and building a clean and sustainable future in the region.

To strengthen APEC's ability to simultaneously pursue economic growth, energy security and environmental protection (Economic Leaders? 3E's initiative).

To respond to Economic Leaders? direction to pay more attention to implementation and concrete results, to translate vision into action, and to deliver on commitments.

To respond to Economic Leaders? direction to actively involve the business community.

To more closely integrate trade and investment liberalization and facilitation (TILF) and economic and technical cooperation (Ecotech) activities and initiatives, in recognition of their close and mutually supportive linkages.

To respond to the great energy security concern of many of our economies by implementing strategies that strengthen energy markets, improve energy efficiency, increase the use of renewable energy, mobilize private capital, promote investment in clean energy sources and production systems and diversify our energy supply.

To promote the implementation of the fourteen non-binding energy policy principles and other agreed initiatives.

To integrate the Framework for the Integration of Women in APEC.

Major Elements

Implementation will be assisted by two major programs: (1) a program of implementation facilitation, as requested on a voluntary basis by member economies; and (2) a system of self-reporting on a voluntary basis by members economies that measures progress in implementation.

It is recognized that the strategy may evolve along with the development of APEC's energy program and initiatives. At a minimum, the strategy will be re-evaluated after 3 years.

Implementation Facilitation

Many of our economies are considering and undergoing energy sector reform and stand to benefit from the shared experiences of other economies. The comprehensive implementation strategy therefore features shared experiences and assistance for developing the capacities of our economies to cope with the transition to more open, competitive markets.

The APEC Energy Working Group will establish a program under which, as invited by member economies, implementation facilitation teams visit economies to share experiences on our initiatives. Team members are drawn from the Energy Working Group (EWG), the EWG's Expert Groups, the EWG Business Network , the Energy Regulators? Forum, other designated experts and the EWG Secretariat.

Requests for an implementation facilitation team visit are made by member economies to the Chair of the Energy Working Group. Requests should detail as much as possible what the host economy expects to gain from the visit.

In response to the invitation, the Chair of the Energy Working Group requests that an implementation facilitation team be formed that is appropriate to the needs of the host economy.

In recognition of the close linkages between trade and investment issues and technology issues and the broad nature of the APEC energy program, host economies are encouraged to consider trade and investment requirements as well as technology requirements in offering invitations. For instance, a host economy may request that an implementation facilitation team focus on the best practice and policy recommendations of the Natural Gas Initiative, with their implications for policy and regulatory reform and related technology issues. Alternatively, the host economy may choose to focus on only trade and investment issues or only on technology issues.

Implementation facilitation team visits are planned on an ad hoc basis to ensure that visits meet the needs of volunteer host economies and that the best practices, principles and experiences are presented in a context relevant to the host economy. The preparations for the visit include interactions between the team and the host economy to ensure that the visit team is well prepared and focused and that the needs of the host economy are met.

The implementation facilitation teams are encouraged to emphasize practical applications.

The format and substantive focus for the visit is determined by the host economy; however, emphasis is placed on open and free dialogue between business and government participants, such as are available in a workshop or seminar.

The membership of the team is deliberately kept to a minimum (approximately 5-7); however, aware of the objective of building capacity as well as advising governments, host economies are encouraged to open local participation as widely as possible to public and private participants.

A report of the results of the visit is prepared by both the visiting team and the host economy and made available to the Energy Working Group Chair. These reports should include a summary of topics discussed and conclusions drawn. The host economies are encouraged to identify in their reports expected follow-on activities resulting from the visit, as well as the need for possible additional team visits on more specific topics.

Reporting and Measuring Implementation

Economies may measure progress in the implementation of energy initiatives endorsed by Ministers by a system of voluntary, annual self-reports that will be forwarded to Economic Leaders through Energy Working Group and the APEC system.

The self-report is prepared within the context of the fourteen non-binding energy policy principles and the other agreed energy initiatives.

The self-report specifically includes progress on the implementation of and issues relating to initiatives on: (1) independent power producers, natural gas and environmentally sound energy infrastructure; and (2) energy efficiency, including the voluntary pledge and review and the harmonization of performance testing standards. The report may also include progress on and issues relating to the implementation of other principles to which Ministers have agreed, such as on energy security, and to programs on energy technology. The report will be expanded as Ministers endorse other initiatives.

The self-reports should stress short, medium and long term issues and goals related to each initiative and should include, initially, self-identified indicators and benchmarks of progress.

The Energy Working Group will give priority to developing an agreed and consistent reporting framework that each economy may use.

The annual self-reports are made to the Energy Working Group at its September/October meeting, as the basis for a general discussion of implementation progress and issues by the Energy Working Group. The Chair of the Energy Working Group prepares a summary of implementation progress and issues and forwards it along with the individual self-reports to APEC Economic Leaders through the APEC system.