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World Energy Outlook 2007

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Co-operation is a two-way street; IEA countries have much to learn about<br />

energy developments in China and India and how these will affect their own<br />

energy markets. In return, the latter can profit from IEA experiences and best<br />

practices, notably in building institutional capacity and designing effective<br />

policies. Technology collaboration with the IEA, which has been gathering<br />

momentum in recent years, provides an additional mutually beneficial<br />

mechanism for accelerating the development and deployment of cleaner, more<br />

efficient technologies (see below). Both China and India are keen to learn from<br />

the industrialised countries about ways of curbing emissions and to take<br />

advantage of technological advances, notably in the area of end-use efficiency,<br />

renewables, clean coal in power generation and carbon capture and storage.<br />

The effectiveness of co-operation hinges on bringing the right stakeholders into<br />

the process. The success of many programmes depends on effective<br />

implementation at the provincial, state or municipal levels. In recognition of<br />

their importance, in 2006, the IEA declared China and India, together with<br />

Russia, to be the priorities of the Agency’s outreach programme.<br />

A number of IEA member countries have developed bilateral and multilateral<br />

mechanisms and programmes, in some cases working through the Agency,<br />

aimed at assisting and co-operating with China and India on a range of energy<br />

issues (Box 6.2). Four IEA countries – Australia, Japan, Korea and the United<br />

States – work with China and India on promoting clean, more efficient<br />

technologies through the Asia-Pacific Partnership on Clean Development and<br />

Climate, launched in 2006. China and India also co-operate on energy-related<br />

issues with non-IEA countries through regional organisations, such as the Asia-<br />

Pacific Economic Co-operation and the East Asia Summit. In 2006, China<br />

itself initiated five-party talks on energy with India, Japan, Korea and the<br />

United States. China and India, with the IEA, participate in the Renewable<br />

<strong>Energy</strong> Policy Network for the 21 st Century (REN21), a global multistakeholder<br />

forum for promoting the development and deployment of<br />

renewable energy technology. China and the IEA are also members of the<br />

Global Bioenergy Partnership, a forum to promote research, development,<br />

demonstration and commercial production and use of biomass for energy.<br />

The industrialised countries have obvious long-term economic and political<br />

interests – and a moral duty – in helping India deal with energy poverty<br />

(see Chapter 20). Many poor households continue to rely heavily on inefficient<br />

and polluting traditional fuels and stoves to meet their energy needs for<br />

cooking and heating, because they cannot afford modern commercial forms of<br />

energy or because it is simply not available. Developed countries, through<br />

multilateral organisations such as the IEA and bilateral co-operation, can help<br />

in many different ways, including through financial support and technical<br />

assistance (IEA, 2004 and 2006). China, which has made great strides in<br />

improving its own population’s access to modern energy, has valuable<br />

experience to share with India and other developing nations.<br />

6<br />

Chapter 6 - <strong>Energy</strong> Policy Ramifications 233

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