Energy policy

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Example of energy policy decisions: The goal of the Southern Gas Corridor, which connects the giant Shah Deniz gas field in Azerbaijan to Europe, is to reduce Europe's dependency on Russian gas. TAP TANAP SCP Schah Denis.png
Example of energy policy decisions: The goal of the Southern Gas Corridor, which connects the giant Shah Deniz gas field in Azerbaijan to Europe, is to reduce Europe's dependency on Russian gas.

Energy policy are the government's strategies and decisions regarding the production, distribution, and consumption of energy within a specific jurisdiction.The decisions regarding energy policy will affect how high the greenhouse gas emissions by that country are. Energy policy is closely related to climate change mitigation policies because the energy sector emits more greenhouse gas worldwide than any other sector. [1] The attributes of energy policy include legislation, international treaties, guidelines for energy conservation, energy subsidies and other public policy techniques.

Contents

Energy is a core component of modern economies. These economies require energy for many sectors, such as industry, transport, agriculture, housing.

Purposes

Access to energy is critical for basic social needs, such as lighting, heating, cooking, and healthcare. Given the importance of energy, the price of energy has a direct effect on jobs, economic productivity, business competitiveness, and the cost of goods and services.

Frequently the dominant issue of energy policy is the risk of supply-demand mismatch (see: energy crisis). Current energy policies also address environmental issues (see: climate change), particularly challenging because of the need to reconcile global objectives and international rules with domestic needs and laws. [2]

The "human dimensions" of energy use are of increasing interest to business, utilities, and policymakers. Using the social sciences to gain insights into energy consumer behavior can help policymakers to make better decisions about broad-based climate and energy options. [3] This could facilitate more efficient energy use, renewable-energy commercialization, and carbon-emission reductions. [4]

Approaches

The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool.

Energy planning is more detailed than energy policy.

National energy policy

Some governments state an explicit energy policy. Others do not but in any case, each government practices some type of energy policy. A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives. The energy policy of a sovereign nation may include one or more of the following measures:

There are a number of elements that are naturally contained in a national energy policy, regardless of which of the above measures was used to arrive at the resultant policy. The chief elements intrinsic to an energy policy are: [5]

Relationship to other government policies

Energy policy sometimes dominates and sometimes is dominated by other government policies. For example energy policy may dominate, supplying free coal to poor families and schools thus supporting social policy, [6] but thus causing air pollution and so impeding heath policy and environmental policy. [7] : 13  On the other hand energy policy may be dominated by defense policy, for example some counties started building expensive nuclear power plants to supply material for bombs. [8] Or defense policy may be dominated for a while, eventually resulting in stranded assets, such as Nord Stream 2.

Energy policy is closely related to climate change policy because totalled worldwide the energy sector emits more greenhouse gas than other sectors. [1]

Energy policy decisions are sometimes not taken democratically. [9]

Corporate energy policy

In 2019, some companies “have committed to set climate targets across their operations and value chains aligned with limiting global temperature rise to 1.5°C above pre-industrial levels and reaching net-zero emissions by no later than 2050”. [10] Corporate power purchase agreements can kickstart renewable energy projects, [11] but the energy policies of some countries do not allow or discourage them. [12]

By type of energy

Nuclear energy

This section is an excerpt from Nuclear energy policy.[ edit ]
Nuclear energy policy is a national and international policy concerning some or all aspects of nuclear energy and the nuclear fuel cycle, such as uranium mining, ore concentration, conversion, enrichment for nuclear fuel, generating electricity by nuclear power, storing and reprocessing spent nuclear fuel, and disposal of radioactive waste. Nuclear energy policies often include the regulation of energy use and standards relating to the nuclear fuel cycle. Other measures include efficiency standards, safety regulations, emission standards, fiscal policies, and legislation on energy trading, transport of nuclear waste and contaminated materials, and their storage. Governments might subsidize nuclear energy and arrange international treaties and trade agreements about the import and export of nuclear technology, electricity, nuclear waste, and uranium.

Renewable energy

This section is an excerpt from Renewable energy commercialization § Public policy landscape.[ edit ]

Public policy has a role to play in renewable energy commercialization because the free market system has some fundamental limitations. As the Stern Review points out: "In a liberalised energy market, investors, operators and consumers should face the full cost of their decisions. But this is not the case in many economies or energy sectors. Many policies distort the market in favour of existing fossil fuel technologies." [13] The International Solar Energy Society has stated that "historical incentives for the conventional energy resources continue even today to bias markets by burying many of the real societal costs of their use". [14]

Fossil-fuel energy systems have different production, transmission, and end-use costs and characteristics than do renewable energy systems, and new promotional policies are needed to ensure that renewable systems develop as quickly and broadly as is socially desirable. [15] Lester Brown states that the market "does not incorporate the indirect costs of providing goods or services into prices, it does not value nature's services adequately, and it does not respect the sustainable-yield thresholds of natural systems". [16] It also favors the near term over the long term, thereby showing limited concern for future generations. [16] Tax and subsidy shifting can help overcome these problems, [17] though is also problematic to combine different international normative regimes regulating this issue. [18]

By country

Energy policies vary by country, see tables below.

Examples

China

This section is an excerpt from Energy policy of China.[ edit ]
China is both the world's largest energy consumer and the largest industrial country, and ensuring adequate energy supply to sustain economic growth has been a core concern of the Chinese Government since the founding of the People's Republic of China in 1949. [19] Since the country's industrialization in the 1960s, China is currently the world's largest emitter of greenhouse gases, and coal in China is a major cause of global warming. [20] However, from 2010 to 2015 China reduced energy consumption per unit of GDP by 18%, and CO2 emissions per unit of GDP by 20%. [21] On a per-capita basis, China was only the world's 51st largest emitter of greenhouse gases in 2016. [22] China is also the world's largest renewable energy producer (see this article), [23] and the largest producer of hydroelectricity, solar power and wind power in the world. The energy policy of China is connected to its industrial policy, where the goals of China's industrial production dictate its energy demand managements. [24]    

India

This section is an excerpt from Energy policy of India.[ edit ]
The energy policy of India is to increase the locally produced energy in India and reduce energy poverty, [25] with more focus on developing alternative sources of energy, particularly nuclear, solar and wind energy. [26] [27] Net energy import dependency was 40.9% in 2021-22. [28]

Ecuador

This section is an excerpt from Energy policy of Ecuador.[ edit ]
Energy policy in Ecuador is driven by its need for energy security as a developing country as well as its conservation efforts. [29] Despite past and ongoing attempts to take charge in energy sustainability (as with the now defunct Yasuni-ITT initiative), oil production and exportation still supports its small $5,853 GDP/capita economy at an average of 549,000 barrels/day in 2016. [30] The push and pull between energy independence/nationalism and appeasement of conservationist groups (representing the concerns of environmentalists and indigenous groups) has been evident in the country’s shifting stance on renewable energies and fossil fuels. [29]

European Union

Russia was a key oil and gas supplier to Europe (map from 2013). This changed with the Russian invasion of Ukraine in 2022. RF NG pipestoEU.gif
Russia was a key oil and gas supplier to Europe (map from 2013). This changed with the Russian invasion of Ukraine in 2022.
This section is an excerpt from Energy policy of the European Union.[ edit ]
The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. [31] An increasingly important part of it is climate policy. [32] A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. [33] After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. [34] [35] After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers. [36]

Russia

This section is an excerpt from Energy policy of Russia.[ edit ]
Russia's energy policy is presented in the government's Energy Strategy document, first approved in 2000, which sets out the government's policy to 2020 (later extended to 2030). The Energy Strategy outlines several key priorities: increased energy efficiency, reducing the impact on the environment, sustainable development, energy development and technological development, as well as improved effectiveness and competitiveness. Russia's greenhouse gas emissions are large because of its energy policy. [37] Russia is rich in natural energy resources and is one of the world's energy superpowers. Russia is the world's leading net energy exporter, and was a major supplier to the European Union until the Russian invasion of Ukraine. Russia has signed and ratified the Kyoto Protocol and Paris Agreement. Numerous scholars posit that Russia uses its energy exports as a foreign policy instrument towards other countries. [38] [39]

United Kingdom

This section is an excerpt from Energy policy of the United Kingdom.[ edit ]

United States

This section is an excerpt from Energy policy of the United States.[ edit ]

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

Federal energy policy acts were passed in 1974, 1992, 2005, 2007, 2008, 2009, [40] 2020, 2021, and 2022, although energy-related policies have appeared in many other bills. State and local energy policies typically relate to efficiency standards and/or transportation. [41]

Federal energy policies since the 1973 oil crisis have been criticized over an alleged crisis-mentality, promoting expensive quick fixes and single-shot solutions that ignore market and technology realities. [42] [43]

See also

Related Research Articles

A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive."

<span class="mw-page-title-main">Sustainable energy</span> Energy that responsibly meets social, economic, and environmental needs

Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Most definitions of sustainable energy include considerations of environmental aspects such as greenhouse gas emissions and social and economic aspects such as energy poverty. Renewable energy sources such as wind, hydroelectric power, solar, and geothermal energy are generally far more sustainable than fossil fuel sources. However, some renewable energy projects, such as the clearing of forests to produce biofuels, can cause severe environmental damage.

<span class="mw-page-title-main">Climate change mitigation</span> Actions to reduce net greenhouse gas emissions to limit climate change

Climate change mitigation is action to limit the greenhouse gases in the atmosphere that cause climate change. Greenhouse gas emissions are primarily caused by people burning fossil fuels such as coal, oil, and natural gas. Phasing out fossil fuel use can happen by conserving energy and replacing fossil fuels with clean energy sources such as wind, hydro, solar, and nuclear power. Secondary mitigation strategies include changes to land use and removing carbon dioxide (CO2) from the atmosphere. Governments have pledged to reduce greenhouse gas emissions, but actions to date are insufficient to avoid dangerous levels of climate change.

<span class="mw-page-title-main">Energy policy of the United States</span> Where and how the United States gets electrical and other power

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

<span class="mw-page-title-main">Energy in Taiwan</span>

In 2022, 79.6% of Taiwan's electricity generation came from fossil fuels, 9.1% from nuclear, 8.6% from renewables, and 1.2% from hydro. Taiwan relies on imports for almost 98% of its energy, which leaves the island's energy supply vulnerable to external disruption. In order to reduce this dependence, the Ministry of Economic Affairs' Bureau of Energy has been actively promoting energy research at several universities since the 1990s.

<span class="mw-page-title-main">Energy policy of the United Kingdom</span>

The energy policy of the United Kingdom refers to the United Kingdom's efforts towards reducing energy intensity, reducing energy poverty, and maintaining energy supply reliability. The United Kingdom has had success in this, though energy intensity remains high. There is an ambitious goal to reduce carbon dioxide emissions in future years, but it is unclear whether the programmes in place are sufficient to achieve this objective. Regarding energy self-sufficiency, UK policy does not address this issue, other than to concede historic energy security is currently ceasing to exist.

<span class="mw-page-title-main">Electric energy consumption</span> Worldwide consumption of electricity

Electric energy consumption is energy consumption in the form of electrical energy. About a fifth of global energy is consumed as electricity: for residential, industrial, commercial, transportation and other purposes. Quickly increasing this share by further electrification is extremely important to limit climate change, because most other energy is consumed by burning fossil fuels thus emitting greenhouse gases which trap heat.

<span class="mw-page-title-main">Energy policy of the European Union</span> Legislation in the area of energetics in the European Union

The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.

<span class="mw-page-title-main">Low-carbon economy</span> Economy based on energy sources with low levels of greenhouse gas emissions

A low-carbon economy (LCE) is an economy which absorbs as much greenhouse gas as it emits. Greenhouse gas (GHG) emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. There are many strategies and approaches for moving to a low-carbon economy, such as encouraging renewable energy transition, efficient energy use, energy conservation, electrification of transportation, carbon capture and storage, climate-smart agriculture. An example are zero-carbon cities.

<span class="mw-page-title-main">Energy policy of Australia</span> Overview of the energy policy of Australia

The energy policy of Australia is subject to the regulatory and fiscal influence of all three levels of government in Australia, although only the State and Federal levels determine policy for primary industries such as coal. Federal policies for energy in Australia continue to support the coal mining and natural gas industries through subsidies for fossil fuel use and production. Australia is the 10th most coal-dependent country in the world. Coal and natural gas, along with oil-based products, are currently the primary sources of Australian energy usage and the coal industry produces over 30% of Australia's total greenhouse gas emissions. In 2018 Australia was the 8th highest emitter of greenhouse gases per capita in the world.

<span class="mw-page-title-main">Energy security</span> National security considerations of energy availability

Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.

<span class="mw-page-title-main">Renewable energy commercialization</span> Deployment of technologies harnessing easily replenished natural resources

Renewable energy commercialization involves the deployment of three generations of renewable energy technologies dating back more than 100 years. First-generation technologies, which are already mature and economically competitive, include biomass, hydroelectricity, geothermal power and heat. Second-generation technologies are market-ready and are being deployed at the present time; they include solar heating, photovoltaics, wind power, solar thermal power stations, and modern forms of bioenergy. Third-generation technologies require continued R&D efforts in order to make large contributions on a global scale and include advanced biomass gasification, hot-dry-rock geothermal power, and ocean energy. In 2019, nearly 75% of new installed electricity generation capacity used renewable energy and the International Energy Agency (IEA) has predicted that by 2025, renewable capacity will meet 35% of global power generation.

<span class="mw-page-title-main">Fossil fuel phase-out</span> Gradual reduction of the use and production of fossil fuels

Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and strengthen energy independence. It is part of the ongoing renewable energy transition, but is being hindered by fossil fuel subsidies.

Energy subsidies are measures that keep prices for customers below market levels, or for suppliers above market levels, or reduce costs for customers and suppliers. Energy subsidies may be direct cash transfers to suppliers, customers, or related bodies, as well as indirect support mechanisms, such as tax exemptions and rebates, price controls, trade restrictions, and limits on market access.

The environmental effects of transport in Australia are considerable. Australia subsidizes fossil fuel energy, keeping prices artificially low and raising greenhouse gas emissions due to the increased use of fossil fuels as a result of the subsidies. The Australian Energy Regulator and state agencies such as the New South Wales' Independent Pricing and Regulatory Tribunal set and regulate electricity prices, thereby lowering production and consumer cost.

<span class="mw-page-title-main">Energy in Finland</span> Overview of the production, consumption, import and export of energy and electricity in Finland

Energy in Finland describes energy and electricity production, consumption and import in Finland. Energy policy of Finland describes the politics of Finland related to energy. Electricity sector in Finland is the main article regarding electricity in Finland.

<span class="mw-page-title-main">Energy in Turkey</span> Energy used and produced in Turkey

Energy consumption per person in Turkey is similar to the world average, and over 85 per cent is from fossil fuels. From 1990 to 2017 annual primary energy supply tripled, but then remained constant to 2019. In 2019, Turkey's primary energy supply included around 30 per cent oil, 30 per cent coal, and 25 per cent gas. These fossil fuels contribute to Turkey's air pollution and its above average greenhouse gas emissions. Turkey mines its own lignite but imports three-quarters of its energy, including half the coal and almost all the oil and gas it requires, and its energy policy prioritises reducing imports.

<i>Energiewende</i> Ongoing energy transition in Germany

The Energiewende is the ongoing transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply. The new system intends to rely heavily on renewable energy, energy efficiency, and energy demand management.

<span class="mw-page-title-main">Greenhouse gas emissions by Turkey</span> Climate-changing gases from Turkey: sources, amounts, and mitigation policies

Coal, cars and lorries vent more than a third of Turkey's six hundred million tonnes of annual greenhouse gas emissions, which are mostly carbon dioxide and part of the cause of climate change in Turkey. The nation's coal-fired power stations emit the most carbon dioxide, and other significant sources are road vehicles running on petrol or diesel. After coal and oil the third most polluting fuel is fossil gas; which is burnt in Turkey's gas-fired power stations, homes and workplaces. Much methane is belched by livestock; cows alone produce half of the greenhouse gas from agriculture in Turkey.

<span class="mw-page-title-main">Greenhouse gas emissions by China</span> Emissions of gases harmful to the climate from China

China's greenhouse gas emissions are the largest of any country in the world both in production and consumption terms, and stem mainly from coal burning, including coal power, coal mining, and blast furnaces producing iron and steel. When measuring production-based emissions, China emitted over 14 gigatonnes (Gt) CO2eq of greenhouse gases in 2019, 27% of the world total. When measuring in consumption-based terms, which adds emissions associated with imported goods and extracts those associated with exported goods, China accounts for 13 gigatonnes (Gt) or 25% of global emissions.

References

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