Protecting the environment, creating a secure energy supply and generating wealth: these are the three key goals of an energy policy for the 21st century and achieving them will require a major push in favour of renewable technology and energy efficiency measures.

That was the message conveyed at the opening Business Forum event of the 2008 Annual Meeting: The New Renewables – saving and substituting to fill the energy gap.

Panelists agreed on the need for governments to provide incentives for the uptake of low-carbon solutions, although they also saw emissions-reduction as an opportunity for the private sector to make profits.

“We have to accept that global warming is a reality,” said Klaus Regling, Director-General for Economics and Financial Affairs at the European Commission. “If ignored, it could have devastating humanitarian implications and a crippling effect on the world economy.”

Mr Regling described how the EU had undergone a “fundamental shift” in energy policy in recent years. The 27-nation block has committed itself to generating 20 per cent of its energy from renewables by 2020 and achieving a 20 per cent improvement in energy efficiency by the same deadline. “Renewables should bring one million new jobs by 2020,” he predicted.

Steve Walsh, president of the Ukrainian division of American power company AES Corporation, said the commitment of governments was “absolutely essential” to addressing the issue of climate change, but added that “political figures are reluctant to make difficult decisions that will upset voters”. Turning to the Annual Meeting’s host country, he remarked that “Ukraine has an overabundance of energy. The incentives for diversifying the energy portfolio are lacking.”

As developing countries grow wealthier, their energy use will increase and coal – which remains plentiful and cheap – will be used to satisfy much of that extra demand, noted Cristian Carraretto, a senior consultant with US-based engineering firm MWH.

“Technology is available to reduce the impact of coal, but there needs to be pressure from governments for coal stations to go cleaner,” Mr Carraretto said. He added that the profit motive could be used to encourage coal-fired power stations to use cleaner technology, pointing to the example of coal ash that had been used to make paving bricks in Italy.

By Mike McDonough, Communications Adviser
Contact: Power and energy team