The Journal of the International Energy Agency - IEA
The Journal of the International Energy Agency - IEA
The Journal of the International Energy Agency - IEA
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CURRENT FOCUS<br />
2011 MINISTERIAL MEETING<br />
ENERGY LEADER AUSTRALIA SITS IN<br />
MINISTERIAL CHAIR<br />
<strong>Energy</strong> Minister Martin Ferguson <strong>of</strong> Australia promotes “careful<br />
and balanced” security policy as he leads <strong>the</strong> 2011 <strong>IEA</strong> Ministerial.<br />
BY ROBERT YOUNGBLOOD<br />
Ferguson, who also participated in <strong>the</strong> 2009<br />
Ministerial, brings experience, expertise and enthusiasm<br />
to this vital role. I know we can count<br />
on him to ensure that our discussions are not<br />
only interesting and animated, but also relevant.”<br />
Ferguson has been <strong>the</strong> Minister for Resources<br />
and <strong>Energy</strong>, as well as Tourism, since late 2007<br />
and has served in <strong>the</strong> Australian Parliament since<br />
1996, where he was also shadow minister for<br />
energy.<br />
Australia is huge, geographically and in<br />
terms <strong>of</strong> energy resources, as <strong>the</strong> ninthlargest<br />
energy producer in <strong>the</strong> world. <strong>The</strong><br />
number four global producer <strong>of</strong> coal, <strong>the</strong> country<br />
is largely self-sufficient in energy. Its natural gas<br />
industry is robust and growing, in <strong>the</strong> midst <strong>of</strong> a<br />
two-decade near-tripling <strong>of</strong> production.<br />
Australia produces two-and-a-half times more<br />
energy than it consumes and is <strong>the</strong> world’s largest<br />
exporter <strong>of</strong> coal. <strong>The</strong> country is also a significant<br />
source <strong>of</strong> uranium, but its energy production<br />
is dominated by coal, which makes up 54% <strong>of</strong><br />
total energy output in content terms, according to<br />
<strong>the</strong> Australian Department <strong>of</strong> Resources, <strong>Energy</strong><br />
and Tourism. Uranium follows at 27%, with natural<br />
gas providing 11% and oil and liquefied petroleum<br />
gas at 6%. Renewables make up 2%, with<br />
two <strong>of</strong> <strong>the</strong> world’s largest solar power stations<br />
located in Queensland and New South Wales.<br />
Australia has a strong record in terms <strong>of</strong> energy<br />
security, with a well-developed regulatory regime<br />
facilitating necessary investment in <strong>the</strong> stationary<br />
energy sector. <strong>The</strong> country is building on its record<br />
<strong>of</strong> energy market reform as <strong>the</strong> government<br />
seeks to introduce a carbon price, with legislation<br />
to enact a carbon price as <strong>of</strong> 1 July 2012, currently<br />
before <strong>the</strong> Commonwealth Parliament.<br />
Reducing greenhouse gases is not new to<br />
Australia – <strong>the</strong> country has had an innovative<br />
energy efficiency programme for five years that<br />
mixes assessment and reporting requirements<br />
with voluntary improvements in energy use (see<br />
Fostering <strong>Energy</strong> Efficiency in Australia in this journal).<br />
Involved in all efforts Australian is <strong>the</strong> Chair <strong>of</strong><br />
<strong>the</strong> 2011 <strong>IEA</strong> Ministerial meeting, <strong>Energy</strong> Minister<br />
Martin Ferguson.<br />
A meeting amid multiple challenges<br />
<strong>IEA</strong> Executive Director Maria van der Hoeven,<br />
herself <strong>the</strong> Chair at <strong>the</strong> most recent Ministerial<br />
meeting, in 2009, says <strong>the</strong> critical role <strong>of</strong> Chair<br />
is in good hands with Ferguson. <strong>The</strong>y met most<br />
recently in Brunei on <strong>the</strong> sidelines <strong>of</strong> <strong>the</strong> ASEAN<br />
<strong>Energy</strong> Ministerial meeting in September,<br />
where <strong>the</strong>y discussed <strong>the</strong> final details <strong>of</strong> <strong>the</strong><br />
Paris conference.<br />
“<strong>The</strong> Chair sets <strong>the</strong> tone for much <strong>of</strong> what happens<br />
at <strong>the</strong> Ministerial,” she says. “Minister<br />
“Careful and balanced policy”<br />
“Delivering energy security while transitioning<br />
to a cleaner energy future demands careful and<br />
balanced policy,” maintains Ferguson. He insists<br />
that <strong>the</strong> Australian government will help <strong>the</strong><br />
country and its industries make <strong>the</strong> transition to<br />
lower emissions <strong>of</strong> greenhouse gases.<br />
<strong>The</strong> role <strong>of</strong> <strong>the</strong> Ministerial’s Chair is to lead and<br />
facilitate <strong>the</strong> discussions among all <strong>the</strong> ministers,<br />
<strong>of</strong> member countries and <strong>of</strong> visitors alike,<br />
as <strong>the</strong>y discuss developing <strong>the</strong> tools needed to<br />
improve energy security and sustainability in<br />
<strong>the</strong> face <strong>of</strong> a number <strong>of</strong> pressing challenges to<br />
<strong>the</strong> global energy picture. <strong>The</strong>se challenges include<br />
<strong>the</strong> global financial and economic crisis,<br />
<strong>the</strong> Deepwater Horizon accident, unrest in <strong>the</strong><br />
Middle East and North Africa, and <strong>the</strong> Fukushima<br />
Daiichi incident.<br />
Ferguson champions a broad and diversified approach<br />
to energy. In a speech entitled “<strong>Energy</strong><br />
Security in a Carbon-Constrained World” delivered<br />
in Melbourne, he argued, “On <strong>the</strong> journey to a lowcarbon<br />
future, only market-based approaches will<br />
deliver <strong>the</strong> most cost-effective solutions.”<br />
<strong>Energy</strong> Minister Ferguson with <strong>IEA</strong> Executive Director Maria van der Hoeven: <strong>the</strong> two will work toge<strong>the</strong>r closely at <strong>the</strong> Ministerial.<br />
In its own domestic energy policy, Australia is<br />
tapping into market solutions, he added. “Our<br />
solar innovation is feeding <strong>the</strong> global supply<br />
chain, including for example ANU’s solar project<br />
with Chinese company Trina Solar,” he said,<br />
adding, “New technology, such as floating LNG,<br />
will unlock huge resources and boost this major<br />
industry. We’re on track to be <strong>the</strong> secondlargest<br />
exporter <strong>of</strong> LNG in <strong>the</strong> next few years.”<br />
With <strong>the</strong> world’s largest reasonably assured<br />
resources <strong>of</strong> uranium, Ferguson has also supported<br />
<strong>the</strong> expansion <strong>of</strong> Australia’s uranium<br />
production and export industry. He has noted<br />
that, despite <strong>the</strong> Fukushima incident, <strong>the</strong>re<br />
will be continuing demand for nuclear power<br />
generation “as <strong>the</strong> engineering and o<strong>the</strong>r lessons<br />
learned are assessed and incorporated<br />
into <strong>the</strong> future energy plans <strong>of</strong> places such as<br />
Japan, China and Scandinavia.”<br />
Minister Ferguson and Maria van der Hoeven: © OECD/<strong>IEA</strong>, 2011, photo by Rudolf Portillo<br />
22<br />
<strong>The</strong> <strong>Journal</strong> <strong>of</strong> <strong>the</strong> <strong>International</strong> <strong>Energy</strong> <strong>Agency</strong>