The Congress focused on the role of technology in meeting the challenges of energy provision and use for the next 50 years, to:

- advance energy supply for 2 billion people currently

without commercial energy services; - raise efficiency both in energy provision and use; - reduce local and regional pollution; - address climate change concerns; - move toward a sustainable world.

The debate confirmed that technologies cannot of themselves fix all problems. Institutional and policy changes will be required. Finance must be attracted to the right places. Public attitudes and behaviour will need to shift.

There was recognition that old uncertainties and paradigms are giving way to new markets, challenges, organisations and ways of doing things.

The pace of technological development in the energy sector is increasing. Solutions to persistent problems are beginning to emerge with an increased rate of *innovative change, encouraged by the current political and business environment of market liberalisation. transparent regulation, corporate restructuring and new ways of thinking and working.

Current volatility in world currency and equities markets, plus political instability, is having a chilling effect on energy investment. Energy industries need to take a long view.

The World Energy Council believes that global energy consumption will grow by about 50 percent in 20 years. This will pose a significant challenge.

Although current fossil fuel resources are sufficient to sustain global economic growth and will be used in increasing amounts, severe environmental, economic and technological challenges will follow unless pollution control measures are employed andC02 and other greenhouse gas emissions tackled. Technologies that reduce net lifecycle carbon emissions and sequester carbon must be developed and deployed where economic. Renewable and nuclear energies have a role in the necessary decarbonisation of the fuel mix.

The liberalisation process poses major challenges for countries with economies in transition and for developing countries. Distributed generators - microturbines, diesels, fuel cells, and renewable technologies can be expected to provide a viable option for areas operating independent of power grid and fuel pipeline systems.

Technological innovation is happening quickly. Cleaner and more versatile energy forms will characterise future energy systems. Technological breakthroughs are often now achieved by entities outside the existing energy sector.

New businesses and alliances are emerging in the upstream production and generation activities as well as in energy distribution. These developments are improving efficiencies in locating and extracting energy resources. New distribution alliances are coupling energy with efficient technologies to provide services customers want.

Information technology is making markets more efficient, resource production less costly, and energy use more effective.

WEC urges industry and governments to sustain their efforts to widen the energy supply base into cost effective options; to provide for genuinely clean fossil fuel production and use; to resolve uncertainties related to climate change; to close the nuclear fuel cycle and resolve waste disposal issues, and to pursue economic renewable energy supplies:

- freedom of trade in energy and energy services is essential;

- the accelerated development and use of appropriate renewable energy resources must be given high priority;

- the WEC should take the lead in modelling new partnerships and systems to sustain long-term investment programmes designed to bring energy to rural areas;

RECOMMENDATIONS

Lifestyles adopted widely in the developed world run counter to good energy conservation practice:

- WEC has concerns about recent trends that encourage energy- intensive light-duty vehicle use for everyday and leisure pursuits, and urges government and industry to assess thoroughly the societal cost;

- WEC recommends policy makers also focus attention on how best to maintain rail and water-borne freight as an important means of moderating road freight growth, and on future air transportation growth.

RECOMMENDATIONS

On the issue of global climate change, the need fo~r immediate costeffective precautionary measures to mitigate possible climate change is accepted.

We remind Parties to the UN Climate Convention of 1992 of the obligations to which they already have agreed:

- the "minimum regrets" approach is required now to minimise the collective risk until climate change and anthropogenic greenhouse gas emissions can be linked conclusively;

- options to lower greenhouse gas emissions are many, and, for the most part, are not controversial; they should be identified, prioritised and actions taken;

- joint implementation and Clean Development Mechanism (CDM) programmes can achieve reductions with minimal to tolerable disruptions economically and politically.

RECOMMENDATIONS

The energy industry must sustain its commitment to research and development with government support for activities related to fostering the public good. A pronounced decline in government funding of R&D at a time when industry restructuring is lessening private-sector investment in research and development does not bode well for a timely solution to some of the energy industry's long-term objectives. The WEC recommends an increased governmental awareness of the R&D requirements in the energy sector that would substantially enhance the public good.

RECOMMENDATIONS

Regulators should also provide a framework that encourages the main actors to take account of the longer-term vision required for sustainable energy provision and use.

RECOMMENDATIONS

WEC will pursue new partnerships. A World Energy Assessment jointly with the UN Development Programme (UNDP) and the UN Department of Economic and Social Affairs (UNDESA) as a major contribution to the UN Commission on Sustainable Development and a sustainable energy future for the world. The World Bank will participate jointly with the WEC in a study on the pricing of energy in developing countries. A joint programme of activity with the International Energy Agency is under development.

13 OCTOBER, 1998

WORLD ENERGY COUNCIL