UNUnited Nations Economic Commission for Europe

Sectoral Committees

Mr. Laszlo Molnar, Chairperson of the Committee on Sustainable Energy

What trends, threats and opportunities do you see for the UNECE region in the field of sustainable energy?

High oil prices, rapidly growing oil demand, more and more bottlenecks in the oil infrastructure, such as a lack of pipelines, tankers, refineries and too few oil-engineers, have weakened the balance of global energy supply and demand.

In recent years, the security of energy supply has decreased in the UNECE region. Simultaneously, the import dependence on oil and natural gas has increased, and is now around 60 per cent and 40 per cent, respectively. Moreover 95 per cent of European Union natural gas imports depends on only three countries. There are many other risks, the import of hydrocarbons comes from politically unstable regions, the terrorist risk is growing and last but not least, there is not enough investment in oil and gas infrastructure.

What problems do you see for UNECE countries in the sustainable energy field?

In June 2005 a new European Union Green Paper on Energy Efficiency was published with the sub-title Doing More With Less. The analysis presented in the Green Paper led to the following three observations: the European Union is increasingly dependent on external energy sources, it has very little room to manoeuvre in terms of the conditions of energy supply and is essentially able to act at the level of demand and, finally, without taking a proactive approach, it will not be able to meet the challenge of climate change, and in particular the commitments made in Kyoto.

New North American energy policies are also emphasising the importance of energy efficiency. Canada and some states in the United States of America, such as California, have had very successful energy efficiency policies that have led to stable energy consumption in these rapidly growing economies.

It is a new phenomenon that energy efficiency is considered as a key factor in increasing competitiveness and improving living conditions. Effective energy-efficiency policies could therefore make a major contribution to the competitiveness and employment of the UNECE region. At the same time we may say that energy saving is the quickest, most effective and most cost-effective way of reducing greenhouse gas emissions.

Some renewable energy technologies, such as wind-power, are growing rapidly. On the other hand we need to mention that the expected miracle has not happened. Renewable energies are more expensive and less flexible in supplying energy than it was supposed. For example, they still need investment and operation subsidies. The shares of the renewable energies for example in the EU have been stagnating at around 6 per cent in the last 10 years.

What policy responses can UNECE member States take given these problems and opportunities in the sustainable energy field?

We know some solutions to these problems such as energy efficiency, new energy technologies, diversification of energy supply sources, and seek to apply these through the Committee on Sustainable Energy as we have done in past. Indeed, the Committee on Sustainable Energy has oriented its next annual session and work programme for the coming years to assisting member States in developing secure and sustainable energy strategies together.

In November 2006 the annual session will examine how both energy security and sustainability can be enhanced through natural gas and alternative transport fuels, coal and long term indigenous fuel supplies, energy efficiency and import dependency, evaluating energy reserves and resources and diversifying the sources of energy supply through greater energy production and exports in the Caspian Sea Region. Each topic I have just mentioned has an operational activity under the auspices of the Committee funded by the UN and by outside donors.

We believe this is a value-added contribution of the UNECE as an institution to bring together the views of representatives from government departments, energy industries and the financial community to examine these matters and recommend a concerted course of action for the future.