Dr. Tudor CONSTANTINESCU ENERGY CHARTER SECRETARIAT • BRUSSELS to support and promote cogeneration and measures to increase the efficiency of district heat production and distribution to buildings and industry.Fiscal and financial incentives have a major role in facilitating their penetration. lnvestments on the supply or demand side should then be judged tor their comparative effectiveness. Technologies have at the same time to be accompanied by service and management programmes, on both the production and consumption side. in promoting these technologies, public or governmental agencies should firstly understand and subsequently create correct awareness of the role of grants and demonstrative projects, which can not be a continuous form of subsidisation providing incorrect signals on the market penetration of various technologies. lntensify interııational co-operatioıı. Currently, numerous international organisations and programmes are already focusing their activities on regions characterised by high-energy intensities. Their aim is to support legislative and institutional development and to encourage the transfer of technology. Consequently, seminars, training courses, awareness campaigns, studies and demonstrative projects have been developed in these countries. Despite these actions and the numerous internal measures taken by the countries concerned, only modest results have been recorded towards lower energy intensity and a better environmental quality. Building a new type of platform tor international co-operation is at the same time an objective and an instrument of the Protocol in bringing countries to a similar operational level in the area of energy efficiency. it is tor this reason that the Protocol contains a relevant but not exhaustive list of areas where direct cooperation between countries is encouraged. The Protocol specifıcally requires countries to improve co-operation in order to make efficient use of their expertise and programmes. Harmonisation of efforts is therefore an immediate and very constructive consequence of the Protocol. And this harmonisation should cover among other topics pricing mechanisms, financial incentives, information and institutional arrangements, transfer of technologies and cogeneration. At this point a remark could be made: Cogeneration is explicitly promoted through PEEREA, and related investments are protected by the Treaty itself. Thus, it is an important area of interest, which can be located at the crossroads of the investment provisions of the Treaty and the energy efficiency provisions of the Protocol. Recent trends and challenges determined by the liberalisation process and the climate change negotiations, to which we should add the specific challenges of transition and restructuring the economies in the East, create a good case tor a new type of political dialogue and concentrated action. New barriers but also new opportunities appeared. The case is only strengthened by the dynamics of the EU enlargement process. The actual status after the Protocol became operational a Working Group on Energy Efficiency and related Environmental Aspects was established. The Working Group meets regularly, also to address priorities, review progress and discuss possible plans tor action. The Working Group has developed its activities into two areas: a) Reviewing progress in implementing the PEEREA and in improving energy efficiency, and b) Developing activities that support dialogue between member countries and facilitate the implementation of the Protocol. The review process relies on two complementary activities: regular reviews and in-depth energy efficiency reviews. Regular reviews are based on an agreed format (comprising both quantitative and qualitative information) and they serve the purpose of monitoring the implementation of PEEREA; at the same time they will serve to preparing the reporting on the implementation of Aarhus energy efficiency related commitments to the Kiev Environmental Ministers Conference in 2003, according to an invitation from UN-ECE. ln-depth energy efficiency reviews are completed on a peer basis, following a mission including representatives of several countries in the host country. Such in-depth reviews result in recommendations to the host government that are endorsed by the Charter Conference. So far, the Slovak Republic, Lithuania, Poland, Hungary and Bulgaria have hosted such reviews. in 2002 Romania, Turkey and Estonia have volunteered. Activities supporting dialogue and facilitating implementation of the Protocol include: A brochure on Developing an Energy Efficiency Strategy A Financing Mechanisms Manual A report on Fiscal and Taxation Policies for improving Energy Efficiency A report on Effects of Market Liberalisation on Energy Efficiency A report on the Evolution and role of Energy Efficiency lnstitutions. Currently a report on Third Party Financing and one on Cogeneration/District Heating are under preparation. in both cases the focus is on helping Governments in using TPF and Cogeneration promotion programmes in defining and achieving their objectives in relation to the market liberalisation and climate change policies. Legal investment issues, role of various institutions, importance of national energy policies, barriers in making and operating an investment are seme of the priority areas to be investigated and on which to support a better bridge between Governments and industry. Under these circumstances, the Protocol establishes a forum tor the exchange of ideas and policies, successes and failures in the energy efficiency field and supporting Governments in establishing new targets and programmes. The Protocol is expected to play a useful role in Governments' efforts to lower energy intensity, achieve a cleaner environment and increase the security of supply. Cogeneration would be a tool and a beneficiary at the same time in !his process. ECOGENERATION WORLD 61
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