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New IEA Chief Faces Challenges on Coal

Ecoal, Vol. 76, November 2011

The new Executive Director of the International Energy Agency takes over the agency at a time when energy and climate challenges are high on the international agenda. Will coal feature on her priority list?

On 1 September 2011 former Dutch Minister for Economic Affairs, Maria van der Hoeven succeeded Nobuo Tanaka as Executive Director of the International Energy Agency. Ms van der Hoeven takes over the agency at a time when energy and climate challenges are high on the international agenda and increasing global economic uncertainty threatens to undermine progress on these issues. Milton Catelin, Chief Executive of the WCA welcomed Ms van der Hoeven's appointment: "We're pleased that, in our discussions, Ms van der Hoeven has acknowledged the important role coal has played in fuelling economic development and recognised its critical role in coming decades."

As Dutch Minister for Economic Affairs Ms van der Hoeven was responsible for energy policy and instituted a number of key reforms including to energy infrastructure modernisation, development of the Dutch gas hub policy and promoting renewable energy. Upon commencing her new role at the IEA Ms van der Hoeven highlighted three major energy challenges facing the world today - transparent and developed energy markets; energy access for all; and sustainable energy. While saying she sees an increase in renewable energy, fossil fuels will continue to be a key part of the energy mix. Ms van der Hoeven also highlighted three priorities for her term as Executive Director. Her first priority is global energy security, followed closely by IEA outreach - particularly to developing countries. Her third priority would be to ensure that renewable energy takes the right place in efforts to improve energy security.

The IEA highlighted Ms van der Hoeven's personal conviction that "that energy production and use should be made comprehensively more efficient and cleaner by improving energy efficiency, developing and using renewables, and producing and using energy otherwise generated in the cleanest possible ways, such as clean fossil fuels and carbon capture and storage." With 2012 declared to be the International Year of Sustainable Energy for All achievingenergy access for those who lack it must be a key priority for the new Executive Director. The IEA's own statistics show that coal met half of the incremental increase in energy over the past 10 years and that coal is expected to account for more than half of total on-grid additions needed to achieve energy access for all. Yet the IEA appears to downplay the role coal will play in meeting these challenges. The recent energy access chapter for all special report released by the IEA, which highlights coal's role in on-grid emissions, contained no further analysis of the role coal can play, while giving extensive analysis to other sources such as hydro power.

Furthermore, World Coal Association analysis shows the IEA's flagship World Energy Outlook publication has consistently underestimated future coal consumption by between 23% and 26.

"The IEA has forecast annual average growth rates of between 1.4% and 1.8% in previous editions of WEO; that's considerably lower than the actual annual growth rate of 4.6%," says WCA Chief Executive Milton Catelin. If the world is to meet global emissions reduction targets while meeting the evergrowing demand for energy, then advanced coal technologies - such as high efficiency low emissions power generation and carbon capture and storage must be deployed internationally. This requires a robust analysis of the role coal will play.Ms van der Hoeven as the IEA's new head, must play a key role in ensuring that these technologies receive due consideration in discussions about the world's energy future.

Further information: www.iea.org

Maria van der Hoeven, IEA Executive Director