2015 APEC Energy Ministerial Meeting

CEBU DECLARATION

2015 APEC Energy Ministerial Meeting

Cebu, Philippines

1. We, the Energy Ministers of Member Economies of the Asia-Pacific Economic Cooperation (APEC), convened in Cebu, Philippines on October 13, 2015, in support of the theme “Towards an Energy Resilient APEC Community.”

    

2. Bearing in mind the 2014 Leaders’ commitment made on the APEC Connectivity Blueprint for 2015-2025, we affirm the importance of energy resiliency in promoting energy security and sustainable development and providing access to the people. This includes in particular, the ability and quality of energy infrastructure to withstand extreme natural and man-made disasters, to recover and return to normal conditions in a timely and efficient manner and to build back better.

    

3. We recognize that the APEC region has become the lynchpin of world economic progress. Our combined growth rate is estimated at 4 percent annually over the past 10 years, one of the more dynamic economic regions in the world. This growth has translated into an annual increase of about 3 percent in energy consumption. We reaffirm that energy remains a critical input for intensifying and sustaining productivity improvements across all sectors in the economy, which supports APEC’s economic development.

    

4. We reaffirm the importance of promoting energy trade and investment frameworks to regional energy security and to sustainable economic growth. We also reaffirm the importance of competitive and innovative markets in providing the APEC region with commercially viable and sustainable energy resources and clean energy technology solutions.

    

5. The past decade has been characterized by a series of super typhoons, hurricanes, flash floods, storm surges and droughts, among others, that challenged the robustness and integrity of existing energy systems across Member Economies. The vulnerability of energy infrastructure and associated facilities to natural and man-made disasters may result in economic breakdown or business interruptions thereby compounding the actual cost of damaged infrastructure.

    

6. We recognize that for developing economies, the costs of rehabilitation and rebuilding can be prohibitive; as recovery efforts could account for a substantial share of the economy’s Gross Domestic Product (GDP). Beyond the cost of reconstruction, we note that a disruption of fuel supply and breakdown in energy infrastructure interdependencies could seriously affect the free flow of goods and services within an economy and within the region itself. Moreover, improving the capacity of the APEC region to respond to emergencies such as disruptions in oil and gas supply is vital, and as such, we reaffirm the continuation of the APEC Oil and Gas Security Initiative (OGSI) which puts forward oil and gas security exercises, network and studies.

    

7. Consistent with the theme of an energy resilient APEC community we recognize the need to conduct a vulnerability assessment of existing infrastructure and evaluate current infrastructure standards.  We encourage members to improve the robustness of their energy infrastructure and policy, through capacity building, sharing of information, and promoting best-practices as appropriate. Furthermore, we reaffirm that resilience to potential energy supply disruptions can be strengthened through effective, well-targeted market and governance response mechanisms. We also encourage Members to promote energy supply diversity and energy efficiency and to reduce barriers to energy trade and investment in advancing resilience of the energy sector.

    

8. We recognize the importance of the private sector in meeting the APEC region’s future energy demand and infrastructure needs. We encourage Member Economies, in cooperation with the APEC Business Advisory Council (ABAC), to continue to foster and nurture public-private partnerships that will encourage the adoption of appropriate standards for critical energy infrastructure.

    

9. We welcome the new APEC Initiative for Enhancing the Quality of Electric Power Infrastructure taking into consideration not only resilience to extreme weather events but also lifecycle costs, environmental impact, responsiveness to changing market circumstances and business continuity.

    

10. We reaffirm the importance of low carbon development to achieve our individual and regional economic aspirations and goals. We commend the significant progress of the APEC Low-Carbon Model Town Project where the concept and the indicators for APEC Low-Carbon Town are being developed. We view environmental sustainability as equally important with economic prosperity, and recognize the important role of the market in providing efficient, cost-effective energy technology solutions and energy resources. The future economic growth of the APEC region will be supported by an appropriate mix of energy resources and power generation technologies that includes both conventional and renewable energy with increasing priority for clean energy sources and enhanced energy efficiency.  In this regard, we will build on synergies among the Member Economies aimed at maximizing strengths from each economy thus minimizing costs of policy implementation.

     

11. In transitioning to a low-carbon economy we will explore the contribution of clean energy technologies and energy efficient initiatives in the transport and power sectors. These may include biofuels, civil nuclear power for interested Member Economies, advanced coal technologies, liquefied natural gas (LNG), solar, wind, and marine energy technologies. We will strive to attain APEC’s aspirational goal of doubling the share of renewables in the APEC energy mix, including in power generation, from 2010 levels by 2030. We strongly encourage the acceleration of renewable energy development and deployment toward this end.

     

12. We reaffirm the importance of safe and efficient development of civil nuclear power as an option to clean, high-quality and advanced modern energy, which functions as a base load power source, to help ensure global energy security and sustainable development as well as reducing greenhouse gas emissions. We encourage interested Member Economies to continue to exchange experiences and best practices, pursue practical cooperation including improving nuclear safety performance and coordinating emergency response and preparedness mechanisms, conduct capacity building and training for the safe and peaceful development and use of nuclear power, under the precondition of commitment to safety, security and non-proliferation.

     

13. Cognizant that the energy-water nexus is an important aspect of our collective energy resiliency, it is important that we understand the interdependence of these resources, determine vulnerabilities and strengthen our response to anticipated changes exacerbated by climate change. Our energy facilities require a reliable and abundant source of water, which is already in short supply around the world. As we define the appropriate fuel and power generation technology mix that would support the twin goals of economic prosperity and environmental sustainability, we will endeavor ways to understand the complex relationship between energy and water, address challenges, and utilize both resources more efficiently.

     

14. We reaffirm our commitment towards sustainable energy development in Asia Pacific region through knowledge-sharing and facilitating technology cooperation, demonstration and dissemination. We recognize the progress made by the newly-established APEC Sustainable Energy Center (APSEC) in completing its institution building. We encourage APSEC to continue its work in expanding sustainable city development across the region, cutting-edge clean energy technologies and other programs on energy resiliency. We encourage APEC economies to support the work of this new institution.

     

15. We will sustain efforts to integrate emerging and cutting edge technologies in our economic and business processes that will significantly improve our energy utilization and optimize the use of existing energy assets and capital investments in the region. The Member Economies, subject to individual circumstances, will continue to explore applicable energy efficient technologies, processes and services and subsequently pursue policies that enable their entry to markets with a vision towards achieving the APEC aspirational target of reducing aggregate energy intensity by 45 percent from 2005 levels by 2035.

     

16. We believe that APEC continues to be a platform for the exchange of experiences, and information related to technology development, demonstration and deployment. The ultimate goal is the adoption of cost effective, relevant and applicable cutting edge energy technologies that would sustain the development of each Member Economy and the region as a whole.

     

17. A priority goal in developing a resilient APEC community will be to provide energy access to our people, including in remote communities. We note that clean energy technologies and traditional energy sources, including cleaner use of fossil fuels, are important in addressing energy access challenges. We recognize that significant potential exists to provide energy access to rural communities through the up-take of micro grids, energy storage and their integration with renewable energy resources.

     

18. We recognize that providing reliable, affordable and secure supplies of energy to remote communities will drive income generation and simultaneously encourage economic growth, sustainable environmental outcomes and new opportunities, such as eco-tourism for our people including women. We also welcome the Workshop on Improving Energy Resiliency in Off-Grid Areas in Member Economies to be organized by the Philippines.

     

19. We recognize that natural gas, including pipeline and liquefied forms, plays an increasingly important role in the Asia-Pacific region, and as such, we appreciate Member Economies’ efforts to create favorable conditions for trade and investment to support a diversified, flexible and integrated natural gas market in the APEC region.  

     

20. In keeping with APEC’s goal of inclusive growth, the development of community-based clean energy strategies paves the way towards income generating activities that benefit the marginalized and indigenous communities as well as expand participation of women. We envisage the APEC region to be the home of well-integrated power systems as well as   a global model for satellite community-based micro independent grids that promote sustainable and inclusive growth as well as offer equal and gender-fair employment opportunities.

     

21. Furthermore, and consistent with the APEC 2015 priority to design Micro, Small and Medium Enterprises (MSME)-focused policies, we recognize that reliable access to energy will be integral to the success of the MSMEs to grow and expand, compete, innovate and ultimately create jobs.  

     

22. We reaffirm the APEC Leaders’ commitment, and welcome ongoing initiatives of Member Economies, to rationalize and phase out inefficient fossil fuel subsidies that encourage wasteful consumption while providing energy access to those in need .  We are committed to make substantive progress toward this goal in the medium term. We commend Peru and New Zealand for completing voluntary peer reviews, and the Philippines, Viet Nam, and Chinese Taipei for volunteering to initiate peer reviews. We encourage the exchange of best practices and capacity building efforts to facilitate fossil fuel subsidy reform.

     

23. We will strive to develop the analytical, technical and operational capacity of our respective labor sectors in preparation for energy technology breakthroughs. We are aware that human capital development should be tempered with policies that provide incentives for retention and advancement of our workers, particularly the women, in the energy sector. 

     

24. As we commit to contribute significantly to the goals and objectives of the 2015 APEC Economic Leaders’ Meeting, the key policy directions and priorities of this Declaration are hereby summarized into a concrete set of actions and activities, embodied under the “Instructions of the APEC Energy Ministers.”