President Chen Shui-bian received participants of the 28th Annual International Association of Energy Economics Conference.
The president's speech was as follows:
Mr. Omi Koji, Mr. Kilgour, IAEE Chairman Siew, Co-Chairman Baker, CAFE Chairman Lin, Distinguished Guests, Ladies and Gentlemen: Good Afternoon!
First, on behalf of the government and the 23 million people of Taiwan, I would like to extend my earnest welcome to all distinguished guests who have come from afar to participate in the 28th Annual IAEE International Conference, hosted by Taiwan this year. We are honored to have earned the right to host this year's conference, and I hope all of you will take advantage of this opportunity to get to know Taiwan and to witness the efforts and achievements Taiwan has made in the areas of energy and environment.
Energy resource constitutes an indispensable element for the world's rapid economic and scientific developments. However, whilst the economy continues to progress, we are confronted by problems caused by energy depletion and environmental destruction. In the last half a century, advancements in technology and telecommunication have accelerated the pace of globalization; as a result, the scope of energy-related issues is now broader than ever. The interwoven connection amongst various economic, social, and environmental factors often sets off a chain reaction, making energy and environmental problems one that can not be solved by the efforts of a single region or country alone; instead, the successful management of which will depend on the collaborative efforts by various regions to research, devise and implement the proposed solutions.
As the world's energy demand continues to soar, the ratification of the Kyoto Protocol has prompted a wave of environmental activism in the international community, calling for greater attention to environmental issues stemming from energy utilization and for closer collaboration in finding solutions to address these issues.
Although Taiwan is not a signatory country of the Kyoto Accord, but as a member of the global citizenry, we must take this international treaty seriously. Later this month, the "National Energy Conference" will commence in Taiwan, in which industry organizations, environmental groups, research institutes and heads of relevant governmental departments will convene to discuss issues pertaining to carbon dioxide emission reduction. We have great hopes for the conclusions reached at this conference and we expect to implement more forward-thinking energy policies in the future in order to demonstrate our resolve to act in accordance with the global trend in energy developments.
In regards to Taiwan's current energy policies, our core belief lies in the following principle: we must take into consideration the current environment, indigenous characteristics, future prospects, the public's acceptability, and policy feasibility; and establish a sustainable energy supply system that is liberal, organized, efficient, and clean. To this end, we have announced six policy guidelines that include: stable energy supply, greater energy efficiency, opening up the energy industry, focus on environmental protection and safety, strengthening research and development, and promotion of education and policy communication.
In particular, in regards to opening up the energy industry, the government is proactively pushing for liberalization and privatization of the energy industry as a necessary step for Taiwan's economy to become more internationalized. We have since privatized power plants and petroleum refineries, while also promoting the institutionalization and greater transparency of the electricity price adjustment mechanism in Taiwan. In addition, we have upgraded energy demand management, as well as placing greater emphasis on environmental issues and its counter-strategies. Our overarching objective is to achieve economic developments, environmental protections and balanced energy supply and demand.
Furthermore, developing renewable resources is also one of Taiwan's key energy strategies. This not only is a response to the greenhouse-gas (GHG) reduction mandated by the Kyoto Protocol; it will essentially help to curb Taiwan's over-dependence on energy import. As we know, currently, 97% of Taiwan's energy demand relies on imported energy supply. In order to advance policies for energy self-reliance, the Executive Yuan has promulgated the "Renewable Resources Development Act" on January 17, 2002, establishing ministerial-level interdepartmental coordination mechanism. Our legislative branch has also enacted the "Renewable Energy Resources Provisions" to regulate, manage, and encourage the development and production of renewable resources—so as to foster a sustainable operational environment for renewable energy.
In addition to various proposals to tackle energy issues, we have also formulated sustainable development strategies. For example, in the electricity power industry, much effort has been made to lift regulatory restrictions and to eliminate monopoly, to achieve full liberalization and to employ market mechanisms to reflect the actual costs of various forms of energy production. At the same time, we hope to attract substantial private investments to fuel the expansion of Taiwan's energy industry; and such measure will also bring about the added benefits of ensuring sufficient power supply.
Environmental protection and energy utilization are two sides of the same issue. Along with the revitalization of the global economy, the world’s energy market now anticipates the advent of the era of high oil prices. Faced with escalating oil prices, we must reassess our energy policies of the past, characterized by an ill-informed pursuit for developments, which has led to exhaustive consumption of energy. We must also promote energy conservation on all fronts and dedicate our efforts to the development and utilization of alternative and renewable energy, and to adopt energy policies that are favorable to environmental protection and the sustenance of energy resource.
Let me once again welcome all distinguished guests here; your participation has truly enriched this conference immensely. I would also like to take this opportunity to express my appreciation for Chairman Siew, IAEE, CAFE and the host of this conference, Chung Hua Institute for Economic Research; thank you all for your hard work and contributions.
In closing, I would like to wish all of you health, happiness and a wonderful stay in Taiwan, and great success to the Conference. Thank you.