20000331-IEA-Energy_Policies_of_IEA_Countries_1999_Review_259页_2mb

Summary of the 1999 Review of Energy Policies of IEA Countries

Core Content

The 1999 Review of the International Energy Agency (IEA) provides an overview of energy policies and market developments across its 24 Member countries. It highlights the increasing focus on energy security, climate change mitigation, and market reforms, particularly in the electricity and gas sectors. The report includes in-depth reviews of six countries (Finland, Hungary, Ireland, Italy, Japan, and Switzerland) and standard reviews of six others (Australia, Belgium, New Zealand, Norway, Spain, and Turkey). Additionally, it presents an Overview Report that addresses broader trends in energy markets and climate policies, including the Kyoto Protocol.

Main Themes and Key Information

Energy Market Trends

• Energy Consumption: Increased steadily over the decades, with electricity and gas demand rising sharply. Energy intensity fell in most sectors, but remained stable in the transport sector.
• Oil and Gas Prices: Fluctuated significantly in 1998-99, with oil prices dropping to 1970s levels before rising again. Gas prices varied, with Japan having particularly high prices due to its reliance on liquefied natural gas (LNG) imports.
• Market Reforms: Focused on liberalizing electricity and gas markets to promote competition and efficiency. The EU Electricity Directive was implemented in 1999, and the EU Gas Directive was set for implementation by 2000.
• Subsidy Reduction: A trend was observed in reducing subsidies for hard coal production, with the goal of encouraging market-based energy systems.

Energy and Climate Change

• CO₂ Emissions: Continued to rise in IEA countries, although the rate of increase varied. The Kyoto Protocol was a major focus, with IEA Members committing to reduce emissions by 5% below 1990 levels by 2008-2012.
• Policy Instruments: Included market-based tools (taxation, emissions trading, subsidies), regulatory actions, R&D policies, and policy processes to enhance public support.
• Energy Efficiency: Became a key strategy, with Finland and Japan being early adopters of carbon taxes and efficiency measures. However, emissions continued to rise in some countries due to limited progress in efficiency and fuel switching.

Regulatory and Structural Reforms

• Electricity Sector: Most IEA countries are moving towards competitive markets, with the EU leading the way. The EU Electricity Directive mandated gradual consumer choice and defined network regulation models.
• Gas Sector: Reforms are also underway, especially in the EU, with the EU Gas Directive set for implementation by 2000. Some countries have gone beyond the directive’s requirements.
• Nuclear and Renewables: Played a significant role in reducing emissions, particularly in Japan and Switzerland. Nuclear energy accounted for 40% of Switzerland’s electricity supply, and combined with hydropower, made 98% of its electricity carbon-free.

Country-Specific Policies

• Finland: Implemented major reforms in electricity and gas markets. It has a high share of combined heat and power (CHP) and introduced a carbon tax in 1990. Despite efficiency efforts, CO₂ emissions still rose.
• Hungary: A transition economy with significant progress in restructuring and liberalizing its energy sector. It aims to prepare for EU accession by introducing competition and ensuring supply security.
• Ireland: Faces challenges in energy security due to its reliance on peat and a single oil refinery. It needs to phase out peat-fired power stations and diversify supply sources.
• Italy: Has implemented measures to liberalize the energy sector, including the EU Electricity and Gas Directives. It is transitioning from a "command and control" system to a market-based economy.
• Japan: Has pursued partial liberalization of the electricity market and increased reliance on nuclear and energy efficiency. The review suggests that greater use of natural gas could help reduce emissions.
• Switzerland: Emphasizes renewable and nuclear energy, with a low CO₂ emissions per GDP ratio. It is exploring competition in the electricity and gas sectors.

Other Member Countries

• Australia, Belgium, New Zealand, Norway, Spain, and Turkey: Received standard reviews, highlighting recent energy market developments and policy changes, but without the in-depth analysis provided for the six in-depth countries.
• Energy Balances and Statistics: Included in the annexes, with detailed data on energy consumption, production, and emissions across various sectors and fuels.

Structure of the Report

• Foreword: Explains the purpose and importance of the IEA's annual review process.
• Acknowledgements: Credits the secretariat and contributors to the review.
• Introduction: Sets the context for the review, emphasizing the dual focus on energy security and climate change.
• Part 1: Overview of energy policy and market developments, including energy consumption trends, CO₂ emissions, and market reforms.
• Part 2: Country reports, including in-depth and standard reviews.
• Annexes: Provide additional data, including energy balances, R&D budgets, and glossaries.

Conclusion

The 1999 Review underscores the IEA's role in promoting energy market reforms and addressing climate change. While progress has been made in reducing subsidies, improving efficiency, and liberalizing markets, challenges remain in achieving consistent emission reductions and ensuring energy security. The report highlights the importance of coordinated policy processes and the need for continued efforts in developing and implementing climate-friendly technologies.