WIREC and U.S. Foreign Policy on Energy and Climate Security Post-Bali

Good afternoon. Thank you very much for your introduction. It’s an honor to be included among the participants in this important conference, and I very much appreciate the opportunity to discuss our recent Washington International Renewable Energy Conference (WIREC 2008). What I wish to emphasize here are WIREC’s results and their relationship to the state of play in U.S. policy on energy and climate security.

Let me start with things that you all know. Energy security, sustainability, and our dependence on fossil fuels with its effects on the environment are the major issues of our time. This is a global problem, and it requires a global solution for which we need a global partnership. What I’m here to talk about today is the outcome of the WIREC conference that was held this spring to address these issues and challenges.

The scale of the challenges we face is enormous. The world population is projected to be 9-10 billion by 2050. We are heavily dependent on limited fossil fuels, which now account for 85% of our global energy needs. We are depleting sources of fossil fuel much faster than we find them. In addition, fossil fuels contribute to greenhouse gas emissions which harm our environment. The rising economies of the developing world and the increasing demand on the limited fossil fuels do not make the problem any simpler. We must find solutions. The solutions may be in our ability to rapidly scale up the deployment of renewable energy technologies.

That is where WIREC came in. It was held March 4-6, 2008, in Washington, D.C. We at the U.S. Department of State organized WIREC and worked in collaboration with eight other departments of the U.S. Government, including Agriculture, the Environmental Protection Agency (EPA), Interior, Commerce, and Energy. WIREC was a ministerial level conference with nearly 9000 representatives from 125 countries, including 103 ministers. Our nation brought four cabinet secretaries, and we were honored that President George W. Bush gave the keynote address. WIREC also included a business conference, a trade show and official side events organized by the American Council on Renewable Energy (ACORE). We were fortunate also to have had considerable support from REN21 and, most importantly, REEEP. Your partnership sponsored three workshops for Asia, Africa, and Latin America, in advance and helped shape the constructive tone of WIREC.

WIREC was built around four themes: 1) technology/ research & development; 2) agriculture, forestry and rural development; 3) market adoption and finance; and 4) sub-national and national partnerships. WIREC panels addressed the environmental, economic, social, and security dimensions of all these themes.

There is an extensive discussion of the findings in our conference report that has just been released. You can get a copy outside the door. The objectives of each of the thematic panels included the following:

1. For technology/research & development, WIREC participants outlined the broad range of R&D issues. We identified the challenges in adopting various renewable energy technologies. The conference participants also laid out present actions needed to scale up the use of renewable energy.
2. For agriculture and rural development, WIREC panelists discussed the technical, environmental, and political issues. The participants identified the opportunities for agriculture and the rural sector. We assessed the role agriculture and forestry could play in scaling up renewable energy and promoting rural development.
3. On the issue of market adoption and finance, WIREC defined opportunities for accelerating renewable technology’s transition from laboratory to market. We recommended market adoption of new renewable energy technologies. WIREC also proposed policies and tools for financing renewable energy in mature and emerging markets.
4. Sub -national and national partnerships play a key role in the development and deployment of renewable energy technologies. The WIREC focus was on renewable energy policy and financing initiatives. We reviewed lessons learned and emerging strategies in economic development and renewable energy. Finally, there were many proposals for renewable energy collaboration opportunities for creating national and sub-national partnerships.

1. Renewables will play a key role in the global effort to meet future energy needs and reduce greenhouse gas emissions. The take-away message is that many nations are now looking to renewables to meet a large part of their future energy needs in a way that will also reduce their carbon footprint, particularly in the electricity sector. The 145 WIREC pledges have the potential to provide thousands of megawatts of renewable electricity capacity through 2030, and eliminate billions of tons of CO2 that would have otherwise been generated from conventional sources. You can analyze the pledges yourself by going to the REN-21 website or that of NREL.
   
2. The diversity of pledges (by country, by institution, by region, by type, by technology). The take-away message is that we have a large number of players and sectors represented demonstrating the wide variety of opportunities that exist to accelerate renewable energy markets and have a significant environmental benefit.
   
3. The progressive nature of these pledges (many of the pledges are extremely aggressive) represents a very radical shift in how these countries intend to meet growing demand in the electricity and fuels sector. The take-away message is that both mandatory and voluntary approaches can complement one another and that the political and institutional will and vision exist to do very big things.
   
4. Research and development (R&D) pledges will play a key role in enabling the renewable energy goals to be met without overburdening the economy. The take-away message is that the 10-20 year timeline for most pledge goals will enable renewable energy technical milestones to be met that will significantly reduce the commercial costs of these electricity and alternative fuel options.
   
5. Financial and in-kind pledges will help reduce the near-term economic burdens of renewable energy options, particularly in developing countries. The take-away message is that the grants, loans, and financing included in many of the pledges with "near-term targets" will help defray the transition costs to a clean energy era.