Your SlideShare is downloading. ×
Can the oil and gas industry become a green economy leader
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Can the oil and gas industry become a green economy leader


Published on

Published in: Education
  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Can the oil and gasindustry become a green economy leader? Emma Wilson, IIED KAZAKHSTAN GREEN ECONOMY DIALOGUE 24-26 November 2011, Astana
  • 2. The challenge As a major producer and exporter of hydrocarbons, Kazakhstan needs to consider the role that fossil fuels will play in the transition to a green economy and more sustainable energy systems. Fossils can and should play a role in making a smooth transition, the question is how. We should be careful not to confuse this with ‘path dependence’.
  • 3. Key governance issues Revenue management: wise distribution of oil and gas wealth supports transition to a green economy Decisions on energy subsidies/incentives made across the energy sector: fossil fuels, renewable energy, nuclear Satisfying and regulating domestic demand for energy services, encouraging efficient consumption Energy pricing: company profits vs consumer bills Promoting efficiency (regulation/technology investment) Resource sourcing: internalising costs of efficiency and risk management in production, processing, transportation
  • 4. Typology of tools and approachesCategory of tools Examples BarriersTechnology  Energy efficiency technologies Cost; legislative gaps; publicinnovations  Carbon capture and storage acceptance; path dependenceProject  Life-cycle analysis Operational capacity; cost;management  Participatory cost-benefit methodological issues (lack oftools analysis agreement)  Company systems, lender standards (e.g. EIA, Codes)Programmatic  Strategic environmental Cost and lack of commitmentdevelopment assessment to finance such processes;planning tools  Revenue management tools methodological and procedural  Scenario planning challenges  Road mapsPolicy incentives  Carbon pricing Legislative gaps; lack of  Subsidy reform evidence on effectiveness;  R&D investment planning resistance to removal of fossil fuel subsidiesTransparency/  Global initiatives (e.g. EITI) Cost; buy-in from government;accountability  National and local budget usefulness/appropriateness ofinitiatives transparency initiatives reporting parameters  Sustainability reporting (GRI)
  • 5. Shell scenarios1. Scramble – policymakers pay little attention to moreefficient energy use until supplies are tight. Likewise,greenhouse gas emissions are not seriously addresseduntil there are major climate shocks.2. Blueprints – growing local actions begin to addressthe challenges of economic development, energy securityand environmental pollution. A price is applied toemissions, stimulating the development of clean energytechnologies and energy efficiency measures. The result isfar lower carbon dioxide emissions.
  • 6. Source: Vision 2050: The new agenda for business , WBCSD
  • 7. Next steps? Identify a green economy role for business (what is the business case?) Use multi-stakeholder forums to build dialogue and understanding (what forums/modes of engagement are most appropriate or effective?) Build consensus on required policy incentives and regulations for a level playing field (what are the required policy changes?) Set targets, establish pathways to meet those targets, and develop appropriate measures of success (what metrics are appropriate to measure success?)