Delegations from across the Western Hemisphere will descend upon the twin island Caribbean nation of Trinidad & Tobago this week for the fifth Summit of the Americas. A hemispheric agenda on energy figures prominently among the issues they will be addressing. For months, the summit offered the hope of a new, more positive, approach to coordinated regional energy policy. But the array of financial challenges facing the global economy has since divided the attention of policymakers. Now, prospects for comprehensive dialogue on energy security in the Americas can only be described as diminished.
There is still a chance for the meeting to be relevant, even if scaling back expectations is required. For that to happen, the Summit of the Americas should focus its approach to the hemisphere’s energy policy agenda on the following four goals.
A key component to such an approach would be the reduction and eventual elimination of the United States’ 54-cents-per-gallon tariff on ethanol imports, as well as revision of current agricultural subsidies in the United States.
Enhanced regional collaboration on alternative fuels is a logical next step to the efforts begun by Brazil and the U.S. two years ago. However, overcoming U.S. domestic politics that have allowed debate on ethanol to be influenced by the corn lobby remains a robust hurdle for follow-through on such an initiative.
Research has shown that efficiency standards are the cheapest way to reduce fossil fuel consumption, in effect serving as a source of “found” energy — and one with no greenhouse gas emissions. Beginning with the U.S., we must create a culture of energy savers in the region. The ultimate goal should be to create a framework for hemispheric standards that will demonstrate a serious effort to reduce fossil fuel use.
Efforts underway in Chile may be a useful example for those gathered in Trinidad to consider. Since 2005, Chile’s National Energy Efficiency Program has developed a nation-wide framework that includes energy efficiency audits of public buildings, a light-bulb exchange program targeting the most vulnerable 40 percent of the population, a financial fund for energy efficiency in the industrial sector, as well as a targeted public affairs campaign.
Results will not come easy. In fact, Chile’s energy-efficiency example also points to the challenges associated with such efforts. After four years, progress has been slow. The light-bulb exchange program has produced tangible results, but overall the program continues to spend significant resources on furthering public comprehension and awareness of efficiency.
By 2020, Latin America’s nuclear power output will increase by almost 84 percent. Countries as diverse in their energy needs and capabilities as the U.S., Argentina, Brazil, Mexico, Venezuela, Chile and Uruguay are all contemplating ramping up or developing nuclear power. That makes a regional policy initiative to bring this topic into the hemisphere’s energy security discussion both timely and essential.
Behind the newfound enthusiasm for nuclear energy is the desire to transition from an energy system based on fossil fuels to a more sustainable and climate-friendly model. Nuclear energy has increasingly gained advocates and interest due to its low greenhouse gas emissions and renewable-fuel profile.
Critics contend that nuclear power will do little to reduce most countries’ oil and gas dependencies. Globally, by 2030, 80 percent of energy will still come from fossil fuels, stemming largely from two main sources: power generation and transportation fuels. As the CEO of Brazil’s Petrobras recently said, “The world’s going to keep moving by car, by plane, by bus, and the people will continue to need gasoline.”
Nuclear energy doesn’t offer any miracle solutions, and remains controversial. But with so many in the region poised to expand its use, a coordinated approach is needed.
Energy governance in the region must be open to, and incentivize, private investment across the entire energy chain. There is no better country than the summit’s host, Trinidad & Tobago, to emphasize this point: Their natural gas and Liquefied Natural Gas (LNG) success story is the product of many years of long-term planning and vision across disparate governments.
Trinidad & Tobago’s development has led to its enviable position as the top LNG supplier to the United States. Underscoring their commitment to incentivizing investment, the government has announced plans for a revised fiscal regime for deep-water gas exploration.
These four recommendations offer a good start towards further coordinated efforts. But the debate and dialogue necessary for the summit to produce real progress on hemispheric energy policy might be sidetracked by the topic of Cuba — and particularly U.S. policy vis-à-vis the Communist nation. Cuba figures to be one of the hottest and most divisive topics at the summit, and one which may have the effect of shortchanging other worthy discussions.
Leaders and policymakers from across the region must strive to avoid the political deadlocks that could result. Instead they should make the Summit of the Americas long on real attainable goals and short on platitudes, particularly when it comes to energy security in our hemisphere.
Source: www.worldpoliticsreview.com
06 May 2009, 1:55 pm
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