EWG54 Wellington, New Zealand

20-24 November 2017

EWG54 Summary Record The 54th Meeting of the Energy Working Group (EWG54) was held in Wellington, New Zealand from 20-24 November 2017. The meeting was co-chaired by Dr Jyuung-Shiauu Chern, EWG Lead Shepherd, and Mr Chris Bunny, Deputy Chief Executive, Building, Resources & Markets Group, New Zealand Ministry of Business, Innovation & Employment. Delegates from 16 APEC economies, namely Australia; Chile; Peoples' Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; the Philippines; Russia; Singapore; Chinese Taipei; Thailand and the United States attended the meeting. Representatives from the Asia Pacific Energy Research Centre (APERC); APEC Sustainable Energy Center (APSEC); APEC and EWG Secretariats; Expert Group Chairs on Energy Data and Analysis (EGEDA), Energy Efficiency and Conservation (EGEEC), New and Renewable Energy Technologies (EGNRET), Clean Fossil Energy (EGCFE); Low Carbon Model Town Task Force (LCMT-TF); Energy Resiliency Task Force (ER-TF); also participated in the meeting. The International Energy Agency (IEA) and International Copper Association (ICA) both with 3 year EWG guest status also participated in EWG54. Attachment A provides a full list of EWG54 participants.

1. Opening Addresses and Adoption of the Agenda Mr Chris Bunny, Deputy Chief Executive, Building, Resources & Markets Group, New Zealand Ministry of Business, Innovation & Employment delivered the opening remarks. New Zealand wished to share their low carbon energy economy transition experience with the APEC region and was eager to learn more from other members’ experiences. The EWG Lead Shepherd appreciated New Zealand’s hospitality and mentioned the Electric Vehicle and Hydrogen Technology Workshop, held by New Zealand on 21 November, was one of the biggest EWG events; the topic of which also paved new direction to EWG’s future work. Lead Shepherd also reminded that energy security, energy access and GHG emission issues were raised in 2017 APEC Leader’s Declaration, and EWG would form a solid policy paper for leaders’ reference in 2018. In addition, revised criteria for Energy Efficiency and Low Carbon Measure Sub-fund was endorsed by senior officials, and all APEC projects seeking for this sub-fund would be evaluated in EWG. Also, more cross-fora interaction is encouraged in the future EWG activities. Actions Arising/Next Steps � The agenda for EWG54 was approved by members. 2. Cross-cutting and Strategic Issue (discussion) EWG Secretariat reported that 2019-2023 EWG Strategic Plan will be drafted by the EWG55 meeting in Hong Kong, China and would like to invite members’ input to it before finalizing it in 2019.

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Australia recapped the background of APEC Energy Vision Post2020. The project intended to identify the key economic, social, environmental and technological factors by 2050, as well as their impacts on energy security, resilience, and economic growth potential. Planned activities included a survey and a workshop led by consultant associated in the future EWG meeting. Australia also mentioned that transport sector revolution during 2030-2040 such as electric vehicle could also be taken into consideration, along with the population growth factor as the urbanization is developing fast in the region. Regarding the discussion format, ERTF suggested to develop a flexible framework in workshop; New Zealand proposed a scenario planning workshop to be held where quantitative data can be adopted to identify key challenges. Chinese Taipei reported the progress of APEC Green Energy Finance Initiative including APEC Conference on Green Energy Finance Capacity Building. A policy recommendation paper consisting of policy suggestions on the aspects of institutionalized reform, systematic improvement, human resource development, and international cooperation was reported and endorsed by members. New Zealand summarized Electric Vehicle & Hydrogen Technology Policy Workshop and recommended that EWG can further support the deployment of electric vehicle and hydrogen technologies by (1) recognizing that EVs & H2 are key to reduce emissions; (2) championing, developing and sharing best policy practices in EVs & H2 growth; (3) collaborating with experts and industry to develop projects; (4) establishing EVs & H2 as mainstays on the EWG agenda. APSEC expressed its willingness to promote EV-related projects since it is an important component to benefit low carbon cities, and also mentioned that it already had some partners that might be helpful to work with to explore opportunities. The United States supported Electric Vehicle & Hydrogen should be included in the EWG discussion. New Zealand illustrated the climate change commitments and how new Government priorities supported the transition to a low emissions economy. New Zealand considered there is positive association between growth in labour productivity and reductions in emissions intensity in most sectors. The New Zealand government and enterprises are committed to net zero emissions by 2050 and 100% renewable electricity generation by 2035. Actions Arising/Next Steps � EWG Secretariat will draft the EWG Strategic Plan (2019-2023) for discussion in EWG55 and

seek members’ inputs to it. � Members agreed to support Australia and New Zealand to develop further works for APEC

Energy Vision Post 2020 and to report their progress at EWG55 meeting. � Policy Recommendation on Green Energy Finance Capacity Building was endorsed, and

Chinese Taipei will write up a formal report to publish for members’ reference. � Electric Vehicle & Hydrogen issue were agreed to be continued in the future EWG discussion.   3. Policy Dialogue (discussion) The EWG Lead Shepherd requested members to volunteer for leading energy access issue and to form a policy paper for members’ discussion at EWG55. The leading economy is expected to report the final policy paper at EWG55, and the EWG will seek to reflect EWG’s focus on energy access in 2018 APEC Economic Leaders Meeting, 2018 APEC Annual Ministerial Meeting and next APEC

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Energy Ministerial Meeting. China volunteered to take the lead which was approved by all members. APSEC reported China’s experiences and measures on energy access, and its relevant work on sustainable city development and clean coal technology transfer. ERTF reported their current work in Alaska and other locations, and expected to develop a path for remote communities. Indonesia; Chinese Taipei and the Philippines reported their current energy access status and progress. EGEDA called for members’ attention to the difficulties in monitoring of the energy access goal, as surveys are very expensive and require high expertise. However, electric utilities should have information on electrified and non-electrified households. In monitoring energy efficiency improvements, EGEDA has to push back data collection for several years because of the difficulty in filling out the template. Members are therefore urged to support the demand side surveys. APEC Secretariat indicated that UN energy access goal was agreed and encouraged members to consider how APEC can add value in the pursuit of this goal. The EWG Lead Shepherd suggested members to consider drafting an energy access goal to APEC Leaders’ Meeting. Australia mentioned that an APEC-wide energy access goal may not be feasible as many economies do not have serious energy access problems. The EWG Lead Shepherd agreed on Australia’s opinion, and members decided that an energy access goal will not be proposed. In the EWG53 meeting, member economies agreed that in the future, the APEC Host Economy will be invited to present the energy priority one year before the Host year and to propose a topic for policy dialogue for the next two consecutive EWG meetings. Against this background, the EWG Lead Shepherd requested Chile (APEC host economy of 2019) to present their energy priorities at EWG55 for members and to propose a topic for policy dialogue in EWG56/57 meetings. Actions Arising/Next Steps � China to take a lead on energy access issue, and provide a draft policy paper for discussion in

EWG55 meeting. � Chile will report its planned energy priorities as the APEC host of 2019 in the EWG55 meeting

and propose the topic of policy dialogue for EWG56 and EWG57 for members’ decision. 4. Management of APEC Support Fund-Sub-Fund on Energy Efficiency The new criteria of the Sub-Fund were endorsed by senior officers in October 2017, and the EWG Lead Shepherd and APEC Secretariat appreciated for Japan’s donation and efforts since 2009. Ms Penelope Howarth, EWG Program Director from APEC Secretariat, explained the processes of applying the Sub-Fund. Session I and Session II of 2018 will account for 60% and 40% of the 2018 budget (USD 2.9 million) respectively. The funding will not be available until July 2018 so POs should reconfirm the event date on CN to avoid any possibility of fund shortage. Projects must (1) focus on activities which will contribute to achieving APEC's aggregate energy intensity reduction goal and/or doubling the share of renewables goal;(2) Meet capacity building needs for APEC developing economies;(3) have at least 4 co-sponsoring economies as confirmed by the APEC Secretariat (documentary evidence is required). APEC Secretariat explained two deadlines: (1) EWG meeting (optional): draft CN could be proposed at EWG meeting first for members’ suggestions and POs could make revision accordingly; (2) BMC Internal Deadline (mandatory): all final CNs must be submitted by then.

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APEC Secretariat will review Final CNs received for compliance and circulated all EWG CNs, together with any CNs received from other APEC Fora which are applying for Energy Efficiency and Low Carbon Measures Sub-F und to EWG members. EWG members will check the eligibility of all CNs, make the decision of endorsement and score all CNs from all APEC fora applying for EELCM ASF Sub-Fund against the EELCM Sub-Fund criteria. Members discussed and decided that the co-sponsorship form will be released by APEC Secretariat and announced later in EWG54 meeting, and the projects which are not co-sponsored by at least 4 economies should continue their efforts in securing co-sponsorship. APEC Secretariat reported update on APEC project approval process, including new appendix, new template and new guidance. APEC secretariat introduced other APEC fund resources (such as General Project Account, and Trade and Investment Liberalisation and Facilitation Account, etc) for members’ consideration. 5. Notable Energy Development since EWG 53 Mexico reported the progress and implementation of the Mexican Energy Reform, which includes progress made on energy technology innovation, and the development goal of clean energy. Thailand reported its integrated Energy Blueprint which is a long-term masterplan, including energy development, energy efficiency, alternative energy, natural gas and oil. Japan reported the energy and resource diplomacy-global vision for a shared future, the 6th LNG Producer Consumer Conference, including memorandums of cooperation, for promoting and establishing a liquid, flexible and transparent global LNG market, and nuclear power plant situation in Japan. Chile reported its strategy to support the energy efficiency technology used in vehicle market, and also announced that they will host a Formula-E Championship series electric street race on 3 February 2018. The United States announced that the SunShot Initiative Cost Target was achieved three years ahead of schedule, and also reported the progress of Solar in Your Community Challenge, Building and Plant Programs, and Global LNG Fundamentals handbook was recently launched. The Philippines reported its Executive Order No 30 signed by President Rodrigo Duterte on June 28 2017, established the new Energy Investment Coordinating Council (EICC), an inter-agency group to be led by a representative of the Department of Energy (DOE). People’s Republic of China reported its energy situation in 2017 and introduced the network of Chinese participation in APEC energy cooperation. People’s Republic of China also promised to increase the attendance on APEC activities, and restrict the project numbers applying for APEC fund in the future to increase the project quality. Australia reported the National Energy Guarantee (NEG) was proposed to ensure the reliability of the electrical system and reduce electricity sector emissions to meet Australia’s international commitments.

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Russia reported main events in the past half year, including an OPEC Meeting, Russia Energy Week, the 19th Ministerial Meeting of the Gas Exporting Countries Forum, and the 5th International Forum-Exploration, Production, Procession. New Zealand reported their Energy Efficiency and Conservation Strategy (NZEECS), Process Heat in New Zealand (PHINZ), Electric Vehicle Programme, and the efforts on transition to a low emissions economy. New Zealand also reported the outcome of Electric Vehicle and Hydrogen Technology Policy Workshop held on 21 November 2017. Indonesia reported that one of the priorities of its National Energy development is to maximize the use of renewable energy to achieve the goal of 23% of renewable energy in energy mix by 2025. Singapore announced the establishment of a new National Energy Transformation Office to plan and coordinate energy research and development, as well as policies for the adoption of game-changing energy solutions. The report also covered the progress of Singapore’s liberalisation in the electricity retail market, and the carbon tax will be implemented from 2019. Malaysia reported an energy purchase and wheeling agreement (EPWA) was signed in September 2017 to buy electricity from Laos’ state-owned power company Electricite Du Laos (EDL). The report also covered an Energy Performance Contacting (EPC) fund launched in August 2017. 6. APEC Center Activities a. APERC President’s Report Mr Takato Ojimi, President of APERC, reported the progress of APERC tasks and activities in 2017, including: the 7th edition of APEC Energy Demand and Supply Outlook is underway; the 2016 edition of APEC Energy Overview was published in May 2017, and in response to the EGNRET request to monitor renewable energy share development, RE Share Analysis may be included in the Overview 2017 edition; 11th PREE held in Mexico in March 2017; the 6th PRLCE held in Papua New Guinea in August 2017; the policy review of the 7th LCMT to be held in December 2017 in Russia; the 3rd OGSE held in Australia in March 2017. Mr Ojimi presented the energy modelling training seminar which was held in July 2017, as well as the short-term and middle-term training programs which were held in June and September 2017. APERC also dispatched experts to help develop energy data and prepare energy demand and supply outlooks. Four workshops were held in Mexico, PNG, Peru and Indonesia in 2017. APERC expressed their gratitude to METI, Japan for funding APERC. Japan welcomed other economies to financially contribute to APERC's activities. Japan and Mexico expressed their gratitude to APERC’s efforts. The Lead Shepherd appreciated the contribution of APERC and Japan, and also encouraged member economies to provide excellent researchers and funding to APERC. b. APSEC President’s Report Dr Li Zhu, President of APSEC, made a report on APSEC’s progress after EWG53, including the Five-Year Work Plan, work progress aligning the five-year work plan, key research publications progress, and work plan before the EWG55. The Five-Year Work Plan was endorsed in EWG53, and also approved by China National Energy Administration. Dr Zhu mentioned that APSEC is now in the transition phase and has finalized their workforce in according the Five-Year Work Plan,

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using cities as platform to realize low-carbon energy transition and to achieve a sustainable energy future. APSEC has two pillar programs: APEC Sustainable City Development Program (CNSC) and Promote Transfer and Dissemination of Clean Coal Technologies in APEC Region. Both programs will have annual report in English and Chinese versions. Dr Zhu also reported that APSEC has improved the APSEC Advisory Board to enrich the research team. Before the EWG55, APSEC will continue the institution building, finishing the English version of annual report, and holding the 3rd APEC workshop on sustainable cities, focusing on low-carbon energy and green energy finance. The APEC Secretariat reminded that the use of APEC logo on the website and publication must comply with relevant APEC guidelines. The EWG Lead Shepherd appreciated APSEC’s efforts and requested APSEC to circulate the draft report to EWG for endorsement before publishing. Actions Arising/Next Steps � APSEC is requested to circulate the draft report to EWG for endorsement before publishing. 7. Progress on Crosscutting APEC Energy Smart Communities Initiative (ESCI) Projects a. Progress Report on Knowledge Sharing Platform (Chinese Taipei) Chinese Taipei made a report on the progress on ESCI-KSP. ESCI-KSP has collected over 600 cases from 21 APEC economies. There were two new partners – Cooperative Network of Sustainable Cities (CNSC) and Energy Resiliency Task Force joining ESCI-KSP in EWG51 in 2016. CNSC completed its first update in 2016, and ERTF finished their framework design in October 2017. Chinese Taipei announced that the beta version is online and welcomed all members of EWG to pay a visit. The EWG Lead Shepherd appreciated Chinese Taipei for this work, and looks forward to more activities and award ceremonies under ESCI-KSP. b. Progress Report on LCMT-TF Mr Tomio Harada, Chair of Low-Carbon Model Town Task Force, provided a progress report on LCMT-TF’s activities, including the LCMT Project Phase 7 in Krasnoyarsk City, and the 1st LCMT Symposium held in September 2017. He also mentioned that LCMT Project is in transition phase, and the dissemination activity is an important component of this project after the establishment of the “Concept of Low-Carbon Town in the APEC Region (Concept)” and the “APEC Low-Carbon Town Indicator (LCT-I) System”. Three cities/towns will be selected as volunteer towns for sharing practical experience on the “Concept” and the “LCT-I System” at the LCMT symposium. Japan reported the summary of completed project – LCMT Phase 6, including the feasibility study and policy review in Mandaue City, the Philippines, and the development of the LCT-I System. The final reports of the feasibility study and policy review were published in June and May 2017. And the refined the “Concept” and the First Edition of the LCT-I System Guideline were endorsed by EWG members in November 2016 and are available on both the APEC and APERC websites. Japan also proposed a new concept note for 2018 Session 1 APEC Fund- LCMT Project Dissemination Phase 2. The project is planned to hold the Second LCMT Symposium for the dissemination of the “Concept” through utilizing the “LCT-I system” and conduct feasibility studies for specific assessment items in some volunteer towns.

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8. Emergency Preparedness New Zealand presented their energy emergency response. New Zealand briefly introduced the climate and energy background, as well as governance of energy market, and also reported their electricity and fuel emergency response, gas critical contingency regulations and restricted purchase scheme. In summary, regulation can provide additional resilience incentives and assurance, and the intervention from government is also required during severe disruption. Emergency response arrangements are aimed to prioritise available supply to critical services, to promote quick recovery to minimise social and economic harm, and most importantly, to promote public confidence and reduce anxiety. 9. Energy Resiliency a. Progress Report on Energy Resiliency Task Force The Chair of ER-TF reported the result of the fifth task force meeting and the progress of projects. There are 7 ongoing projects and 2 new approved projects, which are APEC Workshop on Promoting Resilience in the Energy Sector proposed by the United States, and Integrated Energy System Planning for Equitable Access to Sustainable Energy for Remote Communities in the Northern Regions of North Sulawesi proposed by Australia. Singapore presented the summary of Workshop on Enhancing Workforce Resilience in the Energy Sector held on 24 April 2017. The United States proposed a new concept note for 2018 Session 1 APEC Fund- APEC Workshop on Integrated Energy-Water Planning and Policy Formulation, and a new self-fund project – Cybersecurity Capability Maturity Model (C2M2). 10.Energy Data Analysis a. EGEDA Chair Report on Activities, including Joint Organisation Data Initiative (JODI Oil, JODI Gas) Mr James Kendell, the EGEDA Chair, made a presentation on the progress of EGEDA including regular APEC energy data collection, improvement of historical energy data from 1980 to 2014, holding the 29th EGEDA meeting and the 15th APEC workshop on Energy Statistics, and briefed on the progress of JODI Oil and JODI Gas. EGEDA Chair reported that APEC Energy Statistics 2015 was published in October 2017 and encouraged all member economies to submit complete quarterly data on time. EGEDA will try to contact Viet Nam and Papua New Guinea for their historical energy data. Mr James Kendell was elected as EGEDA Chair in the 29th EGEDA meeting in November 2017, and Dr Jen-yi Hou from Chinese Taipei was appointed as vice-chair. EGEDA Chair indicated that Bloomberg showed the JODI partners how the data would appear on its platform at the 13th International JODI Conference, and it showed this initiative to increase JODI visibility is well underway. EGEDA also updated the forthcoming redesigning of the EGEDA website, and some of new features including data visualization, analytical reports of key statistics, descriptions of training courses, and a data uploading system in the near future. EGEDA had no completion reports, concept notes and self-funded project to be reported. Mexico reported their new workshop to be held in April/May 2018 and was requested by Lead Shepherd to provide information in written form to members. Japan expressed their willingness to continue supporting EGEDA and APERC.

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The EWG Lead Shepherd concluded that members welcome the new leadership of EGEDA and cherish the efforts of EGEDA’s new work. Member economies are advised to provide high quality energy data based on sustainability, timeliness and completeness. Actions Arising/Next Steps � Mexico provides workshop information in written form to all members. � Member economies are advised to provide high quality energy data based on sustainability,

timeliness and completeness.

11. Energy Efficiency a. Progress Report including Project Highlights and Completion Report (EGEEC) Dr Pengcheng Li, the EGEEC Chair, reported the status of EGEEC activities, including the 50th EGEEC meeting held in October in Moscow, and gave an overview of 4 workstreams and cross-cutting issues of projects underway in EGEEC. EGEEC now has 9 on-going projects within EWG, 4 relevant projects within other fora, and 5 concept notes. EGEEC Chair informed that EGEEC51 is expected to be held in March/April 2018 which is considered to be held as a joint meeting with EGNRET. EGEEC51 will be held alongside with PREE EEP workshop, Refrigerator/Freezer Energy Efficiency Improvement Workshop, and Improved Efficiency of Distribution Transformers Workshop. The second tenure of the Dr Li will end in 2018, so EGEEC is seeking the successive chair. The United States confirmed to host the EGEEC51 meeting in March/April 2018 in Washington, DC. Five new project concept notes are introduced by their proposing economies—the United States, Thailand; Russia; and Japan. The United States commented Russia’s Creation of Atlas areas and islands of APEC economies for sustainable energy development and was invited to be co-sponsor of this project. EGEEC Chair reported completed projects since EWG53. No self-funding proposal was reported. APEC Secretariat reminded all members, especially Thailand and the United States, that contribution from private sector to APEC-funded projects between USD20,000 and USD100,000 need to be agreed by relevant sub-fora. Sponsorship sheet should be proposed before BMC deadline. The EWG Lead Shepherd requested proposing economies to check and comply with APEC guidelines and sub-fund rules. All members are welcome to contact proposing economies to improve the quality of CNs. b. Reports on Peer Review of Energy Efficiency (PREE) Activities (APERC) APERC made presentation on the progress of PREE, including PREE Phase 6 in Mexico, “PREE Review Report” and “Compendium of Energy Efficiency Policies of APEC Economies 2017” published in October 2017, and “EEP Workshop Summary Report: Policy and Program Evaluation II” published in June 2017. APERC is preparing a follow-up PREE in Malaysia and the 3rd EEP workshop associated with EGEEC meeting. After Phase 8 proposal is approved, APERC will plan the implementation of PREE in Russia. Peru also showed interest in hosting follow-up PREE. Japan emphasized the importance of the PREE and was committed to continue supporting the activity. Mexico reported their energy efficiency policy and target changes.

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c. Progress toward Energy Intensity Reduction Goal APERC reminded members that agreement was reached at EWG 53 to analyze final energy (excluding non-energy) intensity, using APEC data. APERC presented its monitoring report on progress toward APEC’s Energy Intensity Reduction Goal. In 2015, GDP growth decoupled from energy consumption growth, resulting in a significant energy intensity reduction of 3.5%. However, final energy consumption intensity (ex. non-energy) reduction would fall just short of the APEC goal, reaching 44% in 2035 (the APEC goal would be achieved the following year). The EWG Lead Shepherd explained cooperation on achieving APEC Energy Intensity Reduction Goal and Renewable Energy Doubling Goal within EWG: APERC was requested to provide modelling prediction and to identify the gap; EGEEC was requested to provide actions on APEC Energy Intensity Reduction Goal; EGNRET was requested to present cooperative actions towards Renewable Energy Doubling Goal, EGEDA was requested to monitor the progress. EGEEC reported the situation is well now and the risk is small. A gap assessment project led by the United States was going to be completed and will be discussed in the next EGEEC meeting to facilitate further drafting of a 5-10 years action. The final draft will be reported in EWG55 for members’ endorsement. EGEEC reported its potential collaboration with IPEEC may include areas in building, data, transportation and green finance. In addition, IPEEC regarded air conditioner as highest priority. EGEEC will continue to contact IPEEC to seek further cooperation. The EWG Lead Shepherd indicated the importance of IPEEC and requested EGEEC to report progress in every EWG meeting. Actions Arising/Next Steps � EGEEC will propose a 5-10 year action plan on achieving APEC Energy Intensity Reduction

Goal in EWG55 for members’ approval. 12. New and Renewable Energy a. Progress Report Including Project Highlights and Completion Report (EGNRET) Dr Keng-Tung Wu, Secretariat of EGNRET, on behalf of Dr Chen, Chair of EGNRET, presented the progress of EGNRET49 meeting held in Tokyo, Japan, which focused on how to achieve the RE goal in APEC Region and the future cooperation with PPFS/other international organizations. EGNRET Secretariat reported the conclusion from EGNRET49, including (1) APEC economies are suggested to take APEC RE Doubling Goal into consideration when making their renewable energy targets and policies;(2) APEC economies are encouraged to support the RE Doubling Goal by a variety of development projects;(3) EGNRET members are encouraged to cooperate with non-APEC international organizations;(4) Once the cooperation is established, EGNRET will report to EWG for endorsement. EGNRET Secretariat also shared the new EGNRET website. EGNRET currently had 4 completed projects, 12 ongoing projects, 2 in-principle approvals for APEC funding, and 1 new project concept note.

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Chinese Taipei and Thailand shared their completed reports, respectively. The United States supplemented 2 completed reports. APEC Secretariat emphasized the challenge of building database as APEC funding is limited. Therefore, APEC Secretariat asked members to reconsider the customers of databases, the difference with other existing database, and the possibilities to encourage members to build cooperation with other databases. The Lead Shepherd indicated that EGEEC has built a well-functioning database for over 10 years and hoped members could consult with them. Chinese Taipei introduced their new concept note. The United States recommended that energy efficiency should not only consider supply side but also demand side. Chile suggested to include all members’ goal and implementation to reflect individual progress. b. Report on Peer Review on Low Carbon Energy Policies (PRLCE)(APERC) Mr Takato Ojimi, the APERC president, introduced 4 phases of PRLCE from 2012 to 2018. Papua New Guinea held phase 4 in this August with focus on hydropower resource. Papua New Guinea set ambitious renewable energy goal of 100% by 2050 but most of renewable source are not developed. The peer review team came up with 44 recommendations, and the draft report was sent to the host for endorsement in October 2017. APERC welcomed all eligible economies to volunteer hosting future PRLCE. c. Smart Power Management for Self-Sustained Green Community in APEC Region (ACABT) The EWG Lead Shepherd indicated ACABT’s participation in EWG meeting is the first time in EWG, and believed this could promote cross-fora cooperation. Dr Shu-Yii Wu, CEO of APEC Research Centre for Advanced Biohydrogen Technology (ACABT), introduced that ACABT is one of the subgroups of APEC Policy Partnership on Science, Technology and Innovation (PPSTI) and its main goal is to build a platform for APEC economies using bio-waste in bio-refinery concept for bio-hydrogen and bio-based products and to drive the bio-economy in the APEC region. CEO of ACABT presented their new project proposal for energy efficiency sub-fund, and suggested to facilitate collaboration between EWG & PPSTI by mutually attending fora and sub-fora meetings. He highlighted some cooperation areas that both fora may jointly work on, including low carbon economy, energy deployment, renewable energy technology development, and green transportation promotion. The EWG Lead Shepherd welcomed the information sharing of PPSTI’s activities and requested EWG Secretariat to disseminate PPSTI’s invitation for members’ participation. Actions Arising/Next Steps � EWG Secretariat is requested to disseminate PPSTI’s invitation of activities for members’

nomination/participation.

d. Progress toward Renewable Energy Doubling Goal Mr Cheng-Nan Chu, Secretariat of EGNRET, reported the progress on filling the gap to reach the APEC Renewable Energy Doubling Goal. The Renewable Doubling Goal was endorsed by EWG in

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EWG47 meeting and affirmed by APEC Leaders since 2014. Energy Ministers instructed the EWG through the EGNRET to develop the road map. Chinese Taipei proposed the project – Filling the Gap to Reach the Goal of Doubling Renewable Energy in the APEC Region in 2016. The project received contribution from APERC, EGEDA and IRENA. Two seminars and one workshop were held under this project. Mr Chu presented that 2-phase work has been planned for renewable doubling goal roadmap development. In phase 1, the project has collected information of renewable energy policy and current status of renewable energy and cooperated with APERC to find out the renewable energy potential, gap and investment. Chinese Taipei held a workshop and created a roadmap network to discuss the renewable energy doubling goal, and made policy recommendations from several aspects, including policy inconsistency, financial mechanism, market reform, technology cooperation, infrastructure and capacity building. Mr Chu suggested member economies to provide an expert to EGNRET as the focal point for the planned phase 2 project. APERC reported the progress toward Renewable Energy Doubling Goal, including data collection and calculation and the considerations in tracking progress. The Lead Shepherd concluded that for Renewable Energy Doubling Goal, traditional biomass will not be counted. The contribution of renewable energy for thermal and fuel purposes should be accounted, rather than focussing on electricity alone. IRENA’s definition of renewable energy is recommended. And, according to the decision in the last EWG meeting, APEC data should be used for modelling and monitoring the progress. The Lead Shepherd also suggested EGNRET to finish work on roadmap development in phase 1 project, instead of extending the roadmap development in a new phase 2 project. Actions Arising/Next Steps � EGNRET is requested to improve the draft roadmap for Renewable Energy Doubling Goal and

to report progress at EWG55, taking into account the gaps, contribution from thermal and fuels, and factors such as social impact, market reform and trade and investment issues.

� APERC is requested to provide necessary help to EGNRET on Renewable Energy Doubling Goal issue.

13. Clean Fossil Energy a. Progress Report including Project Highlights and Completion Report (EGCFE) Mr Scott Smouse, Chair of EGCFE, presented that an EGCFE meeting was held in Tokyo following International Clean Coal Day Symposium on 8 September 2017. The next EGCFE meeting is planned to be held in March 2018 in Tokyo, Japan, focusing on oil and natural gas. The new EGCFE website is operational now. Mr Smouse presented the progress of the ongoing projects including Water-Energy Nexus: Coal-Based Power Generation and Conversion: Saving Water and APEC Water-Energy Nexus Expert Workshop. Mr Smouse also presented the summary of completed project: Roadmap to Promote Transfer and Dissemination of Clean Coal Technologies in APEC Region. Mr Smouse presented a new concept note submitted for session 1 of 2018 funding consideration: Expert Workshop on High-Efficiency and Low-Emission Coal Power Generation. Mexico presented three new concept notes submitted for session 1 of 2018 funding, including International Seminar for the Development of the Natural Gas Market, Mexico´s Oil Products Industry Forum and Orphan Oil, Gas Wells and Facilities in Mexico: A chance to identify, innovate and resolve. Japan also presented a new self-fund project: Oil and Gas Security Initiative 2018.

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The Lead Shepherd mentioned that the new ToR of EGCFE was endorsed by EWG in the last EWG meeting and looked forward to the election of new vice-chair. The Lead Shepherd also expected EGCFE to play an important role on clean use of fossil fuels. To reach this goal, EGCFE needs more participation from member economies. The Lead Shepherd requested member economies to provide coal and oil and gas experts to EGCFE. b. APEC Coal Market Report APERC presented the report on APEC coal market. The draft report was briefed in the EGCFE meeting in Japan. Nearly 75% of global coal consumption occurs in APEC member economies, and subcritical coal power plants dominate APEC’s power market. Rapid economic growth increased iron and steel demand in developing economies, but the cement production in APEC may slow down in the future. Thermal coal prices are expected to increase after 2018, partly because of export reduction from Indonesia. Metallurgical coal prices will enter a downward trend in the immediate future but stop falling when supply and demand reach a balanced level. In summary, the U.S. power plant’s consumption in coal is expected to fall since 2010, and China’s coal consumption is expected to increase very slowly. Mexico’s coal consumption is expected to follow the U.S. and China. And coal price is expected to increase in 2018. c. Oil and Gas Security Initiative (OGSI) APERC presented the updates of OGSI, which includes three pillars: Oil and Gas Security Exercise (OGSE); Oil and Gas Security Network (OGSN); Oil and Gas Security Studies (OGSS). The OGSE in Australia was conducted in Melbourne on 29-31 March 2017, and the final report of OGSE in Australia for Regional Capacity Building was published in October 2017. One common oil emergency scenario and three gas emergency scenarios (one each for participating economies based on individual domestic gas situation) were provided. The last OGSE was conducted in Lima, Peru on 6-8 November 2017. The first draft report was expected to be ready in late January 2018 for review. For the pillar two-OGSN, 18 bi-monthly OGS Newsletters were already issued and circulated to member economies since December 2014. The 3rd Oil and Gas Security Network Forum was held on 29-30 June 2017 in Irkutsk, Russia, for the first time outside Japan. For the third pillar-OGSS, seven studies were already published, four studies were completed and two new topics were chosen. APERC also reported the future plan of OGSI. Malaysia has shown its interest in hosting OGSE in 2018. And the Emergency Manual Procedure (EMP) will be updated and revised based on past exercises in the Philippines; Australia; and Peru. Newsletters will continue to be issued, and the 19th issue of newsletter will be released in December 2017. The 4th Oil and Gas Security Network (OGSN) Forum will be held in Tokyo, Japan on 7-8 March 2018 in conjunction with the EGCFE meeting. About OGSS, two studies will be completed in the first half of 2018. d. Progress on Inefficient Fossil Fuel Subsidy (FFS) Reduction Activities The United States reported the summary of APEC Fossil Fuel Subsidy Reform Capacity-Building Workshop held in Jakarta, Indonesia on 10-11 July 2017, as a follow–up of the workshop in 2015. Participants of this workshop discussed common challenges and successful strategies for reform through case studies from both APEC economies (Indonesia; the Philippines; Chinese Taipei; Thailand; and Viet Nam) and non-APEC members (Armenia and India). New Zealand made a presentation on A Guidebook to Reviews of Fossil Fuel Subsidies, a tool for self-reviews and peer reviews of fossil fuel subsidies. New Zealand reported the procedure of FFS

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Reviews, as well as the practices on FFS self-reports and takeaways from accomplished FFS Review. The United States gave an update on the fossil fuel subsidy reform in Viet Nam on behalf of FFSR secretariat. The FFS peer review was conducted in Viet Nam on February 2017. The draft report has been circulated to the government and was waiting for final review. The report will be finalized in the near future and circulated to EWG. The Lead Shepherd reported the support from OECD, including the consultant and secretariat assistance at no cost. The Lead Shepherd encouraged voluntary economies to implement peer review on Fossil Fuel Subsidy Reform taking advantage of the support from OECD. Actions Arising/Next Steps � Member economies are encouraged to volunteer for peer review on FFSR with OECD support. � Member economies are advised to send focal points in coal and oil/gas fields respectively to

EGCFE. 14. Energy Working Group Management and Direction a. APEC Secretariat Report Ms Penelope Howarth, EWG Program Director, reported the changes of fora governance agreed by SOM that all APEC Fora are instructed to add a quorum clause and a sunset clause into their Terms of Reference (ToR). Quorum for working group’s meeting constitutes attendees from 14 economies. Ms Howarth also reported that the independent assessment every four year in the past has changed to the standardised APEC fora assessment. EWG was included in the pilot to inform development of the standardised assessment process and tools in 2017, and will be formally assessed in 2018. Ms Howarth highlighted that Leaders make a declaration on APEC Action Agenda on advancing economic, financial and social inclusion in the APEC region, and the priority areas of work include “improving access to energy” under economic inclusion. All APEC fora have been asked to propose new initiative relevant to this economic, financial and social inclusion agenda, and the new initiative may go up to APEC leaders as well as ministers if supported by senior officers. This can be an opportunity for EWG. In terms of APEC Guidelines for Promoting Cross-Fora Collaboration, collaboration is being encouraged between different fora on projects as well as initiatives and fora meetings. Cross-Cutting Maps is a key tool for fora and has been updated. There were projects approved in 2017 in other APEC Working Groups on energy, including PPSTI and PPWE. Ms Howarth also reported a statistics of attendance at EWG project events from 2013 to 2017. The Lead Shepherd requested member economies’ kind cooperation to provide inputs for the projects summary during assessment period. The Lead Shepherd also requested China and ERTF to work together to formulate a new initiative on energy access for submitting to APEC leaders in 2018. In terms of the quorum clause, there was only one EWG meeting which failed to meet the quorum in the past 10 EWG meetings. EWG will add the sunset clause to the ToR which will be reviewed by senior officials every four year. The same rule will be applied to all the sub fora except APERC and APSEC, under EWG. Expert groups should include four-year sunset clause and task forces should have two-year sunset clause in their ToR. The Lead Shepherd appreciated Ms Howarth with an award for her hard work and contribution to EWG since 2014.

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b. EWG Secretariat Report Ms Lynn Wan-Ling Wang, the EWG Secretariat, reported there were seven summary reports made by economies, expert groups and task forces. Ms Wang also reported the template of 2 Page Summary of completed APEC projects, especially highlight the noticeable outcome, including contribution to meet the APEC/EWG goals; policy implications; next steps needed. Ms Wang emphasized that the 2 Page Summary is only recommended not mandatory, but expert groups and task forces are encouraged to circulate this within the sub-fora. From this meeting on, EWG Secretariat will collect the summaries and put on the EWG Website. Actions Arising/Next Steps � Expert Groups and Task Forces are requested to provide the updated ToR for discussion and

endorsement and to report at next EWG meeting. � The host economy of EWG meeting is requested to encourage member economies to attend the

EWG meeting to meet quorum. � Member economies, expert groups and task forces are encouraged to provide 2 Page Summary

of completed APEC projects. 15. Guest Organizations’ Presentations (and Discussion) a. International Energy Agency (IEA) Mr Pierpaolo Cazzola, representative of IEA, reported the insights from the IEA World Energy Investment, Energy Efficiency and Renewable Energy Market Reports. The reports showed that global energy investment fell by 12% in 2016, and electricity sector investment overtook oil, gas and coal investments combined. Although electricity investment remains robust, policies need to focus on maintaining supply adequacy and strengthening market signals for investment in flexibility. Mr Cazzola also presented that IEA will continue to focus on investment as a cornerstone of a secure and sustainable energy system, engage more in helping countries to realise energy efficiency potential and to deploy energy efficiency policy by training policy makers and facilitating knowledge sharing. The Lead Shepherd emphasized that IEA sees energy investment as an important measure for energy security and sustainable energy system. IEA proposed the cooperation with APEC last year, and the Lead Shepherd sent a cooperation letter to member economies. The EWG Secretariat was requested to send IEA’s cooperation letter on energy investment again to member economies, and seek for consideration and collaboration. The Lead Shepherd also requested APERC to discuss with IEA for cooperation mechanism in detail and make a report on EWG55. b. International Cooper Association (ICA) Mr Pierre Cazelles, representative of ICA, presented the progress of APEC-SHINE Facility, which was proposed and endorsed by EWG members in EWG53. APEC-SHINE Facility intends to advance energy efficiency and promote decentralised renewable energy systems in the APEC region, and enhance the impact of APEC-funded projects in achieving the EWG goals. The technologies of interest to both EWG and ICA are: higher efficiency electric motors (in motor systems for industrial applications); higher efficiency distribution transformers; higher efficiency air conditioners; and renewable energy technologies with focus on solar PV Rooftop. The Lead Shepherd appreciated ICA for the contributions, and also requested EGEEC and EGNRET to contact with ICA for further details and invited ICA to attend the expert groups’ meetings. APEC-SHINE Facility Concept Paper is endorsed by EWG.

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Actions Arising/Next Steps l The EWG Secretariat was requested to send IEA’s cooperation letter on energy investment to

member economies and seek for consideration and collaboration. l APERC is requested to discuss with IEA for the detail cooperation mechanism and make a

report on EWG55. l EGEEC and EGNRET are requested to contact with ICA for further details and invited ICA to

attend the expert group’s meetings. l APEC-SHINE Facility Concept Paper is endorsed by EWG. 16. Planning ahead a. Energy within 2017 APEC Ministers’ and Economic Leaders’ statements The EWG Lead Shepherd thanked the efforts of member economies to prepare the draft of the energy contents within APEC Ministers’ and Economic Leaders’ statements. The practices seem successful in sending energy paragraphs within 2017 APEC Ministers’ and Economic Leaders’ statements. The Lead Shepherd informed that member economies will be requested to provide suggestions of energy contents within statements in the middle of next year. b. APEC Energy Ministers Meeting Papua New Guinea reported that no Energy Ministerial Meeting will be held in PNG in 2018 due to budget constraints. Papua New Guinea also reported the PNG’s four priorities areas in APEC year of 2018 are: (1) improving connectivity, deepening regional economic integration; (2) promoting inclusive and sustainable growth; (3) strengthening economic growth through structural reform; (4) growing people to people connectivity to advance human capital development. The EWG Lead Shepherd reported that China will lead the discussion on energy access, which is the energy priority PNG presented in the previous EWG meeting, and prepare a comprehensive policy paper with the inputs from member economies to deliver to senior officials. Actions Arising/Next Steps � Member economies to provide energy related inputs to AMM and AELM in the middle of 2018. � China is requested to lead the discussion on energy access and prepare a policy paper out of

session for further discussion. 17. Other Issues a. Other Emerging Issues by Members A self-fund project about regulatory engagement was proposed by National Association of Regulatory Utility Commissioners (NARUC) of the U.S., which aims to support an engagement and dialogue of regulatory agencies among APEC economies. The planned activities include a workshop or a peer review. Furthermore, NARUC would like to establish a longer term relationship with APEC for about one or two years, specifically focusing on developing deliverables, perhaps handbook or guideline of renewable energy regulatory with APEC region, if funding is sufficient. b. Participation of the Ethanol Summit of Americas Due to time constraints, the Lead Shepherd will report at the next EWG meeting. c. Participation of the 5th International Forum of Innovative Solutions and Technologies for Oil, Gas and Mining Industry “Exploration, Production, Processing-2017” Due to time constraints, the Lead Shepherd will report at the next EWG meeting.

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Actions Arising/Next Steps � The U.S. will circulate the concept note of NARUC to members for consideration and

endorsement. 18. Concluding Business a. Date and Location of Next EWG Meeting Hong Kong, China reported the EWG55 will be held on 14-18 May 2018. The venue will be Crowne Plaza Hong Kong Kowloon East Hotel. About the weekly program, a workshop about engaging youth and community for energy efficiency will be held in Tuesday morning during the EWG 55 week. Hong Kong also mentioned that there are two options for technical visit, CIC Zero Carbon Building and T Park Waste-to-Energy. b. EWG54 Meeting Summary A summary of the meeting’s key conclusions was presented by the EWG Secretariat. A copy would be sent to member economies after the meeting.