Any energy policy would need to address the development, production, distribution or transportation and use of energy through laws, treaties, international agreements or agency directives. Energy policy should ideally also address issues of energy conservation, environmental protection, incentives for the use of clean and renewable energy sources, taxation policies, energy planning and generation, energy efficiency standards and emissions standards, R&D, fiscal policies and energy security and independence. An effective energy policy should also aim to address future concerns of a nation, such as which sectors are likely to witness increasing demand, future sources of energy, promotion of energy efficiency across all sectors and specific mechanisms to ensure the implementation of the policy.

Existing Energy Policy across the World

1. United States Energy Policy – Three Energy Policy Acts have been enacted in the US, in 1992, 2005 and 2007. The Acts include stipulations for energy efficiency, energy conservation, energy development and incentive programs for individuals and organizations. The Energy Independence and Security Act was passed in December 2007, which aims to enhance vehicle fuel economy and develop alternative energy sources. The ultimate objective is to reduce gasoline usage in the US by 20% by 2017. Energy policy is a major political platform for the Presidential candidates in 2008 and energy is expected to be a crucial focus area following the elections.

2. European Union Energy Policy – A comprehensive and mandatory policy for European nations was passed at the European Council meeting in London in October 2005. The EU is the world’s foremost importer of oil and gas and the need to develop a common energy policy that addresses sustained energy supply as well as energy security was acknowledged by the European Commission in its report ‘Energy for a Changing World’ in January 2007. In order to make the European Union a leading low carbon economy, the European Council proposes:

• A reduction of at least 20% in all greenhouse gas emissions by 2020 from the 1990 levels.
• A reduction of up to 50% in carbon emissions by 2050 from the 1990 levels.
• A minimum of 10% use of biofuels across all member nations by 2020.
• Separation of energy supply and generation activities from distribution networks for all energy companies.
• Steps to improve energy relations with countries bordering all EU nations, including Russia.
• Developing a European Strategic Energy Technology Plan that addresses inexhaustible energy sources, low-energy structures, clean coal and carbon capture, 4th generation nuclear power and energy conservation.
• Assisting African nations to move towards low carbon technologies and sustainable energy supply.

3. United Kingdom Energy Policy – The white paper, Meeting the Energy Challenge, of May 2007 elaborates the energy policy adopted by the UK. The primary objectives of the energy policy are:

• To work towards a 60% reduction in CO2 emissions by 2050, with major progress visible by 2020.
• To establish sustainable energy supply.
• To encourage competitive markets within the nation and abroad, with an aim to increasing sustainable economic growth and enhancing productivity.
• To create a basis for adequate and affordable heating for every home in the nation.
• Tackling the problem of climate change and developing the use of secure, clean and affordable sources of energy.

The Energy Bill of January 2008 brings the UK’s legislative policy in-sync with the energy policy. The bill also addresses the issues of renewable energy, carbon capture and storage, nuclear power and offshore oil and gas.

4. Australian Energy Policy – The Australian government’s energy policy is detailed in the white paper, Securing Australia’s Energy Future, released in 2004. The key aspects of the energy policy include:

• Establishing secure and reliable energy supply at competitive prices.
• Development and utilization of the nation’s energy resources.
• Addressing environmental concerns and issues arising out of energy usage.

Australia also intends to focus on developing and implementing renewable energy, improving energy efficiency, building energy security and developing the nation’s energy infrastructure. A crucial aspect of the energy policy, the Carbon Pollution Reduction Scheme, is scheduled to be launched in 2010 and sets standards for caps and emission trading.

5. Canadian Energy Policy – The first comprehensive energy policy came into effect in Canada in 1973, following the energy crisis of the early 1970s. A national energy program was put in place in 1980, following the sudden increase in oil prices in 1979, with the primary objective of making the nation more energy independent. For the first time, the need to control demand was also acknowledged. Canada is currently a part of the Kyoto Protocol.

6. Chinese Energy Policy – The Netherlands Environmental Assessment Agency’s 2007 report establishes that China emits the highest quantities of greenhouse gases. At the same time, the Asian nation is also the world’s leading producer of renewable energy sources. China’s energy policy brings together the various aspects of energy generation, distribution and consumption in the nation. China is the first developing economy to undertake a national strategy to address climate change in June 2007. A renewable energy incentive scheme was also put in place in 2006 to encourage the development and use of renewable energy across all sectors.

7. Russian Energy Policy – The Russian government approved an energy strategy for the nation in 2003 and details the policy up to 2020. The priorities established by the strategy include:

• Sustainable energy development
• Energy and technology development
• Increase in energy efficiency
• Improvement in competitiveness
• Reduced impact on the environment
• Ecological energy security

Russia has vast untapped resources of renewable energy, which the nation intends to develop and put to use.

8. Indian Energy Policy – The nation’s energy policy is a sum of various Acts specific to different aspects of energy and the energy sector. The Energy Conservation Act of 2001 aims to achieve energy efficiency and sets out certain consumption norms for various sectors. The Electricity Act of 2003 has vastly restructured the electricity sector, not only to conserve energy but also to use renewable energy for electricity and to achieve rural electrification. Various federal and state incentives have been put in place to encourage the development and use of renewable energy. The Integrated Energy Policy Report of 2006 sets down the long-term governmental policy for growth of the energy sector.