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The aim of the report is to identify the possible effects of evolving competition in the energy sector of many national economies on energy efficiency, and to establish how energy efficiency policies and programmes should best be adapted to meet the challenges of energy market liberalisation. The report, which includes a number of case studies that highlight best practices in adapting energy efficiency policies to conditions of market liberalisation, was prepared also with the aim of supporting policy discussions on the issues raised within the forum of the International Energy Agency.

Estonia is unique in the world in that it uses indigenous oil shale as its main energy source. The only other significant indigenous fossil source is peat. As there is no oil and no refineries, all petroleum products are imported. Natural gas is imported from Russia. The Estonian chemical industry also uses oil shale for the production of shale oil, which is used in domestic applications as well as exported.

The Secretariat produced this study as part of an effort to provide increased transparency about the application of the WTO rules on trade in goods in the energy sector. Its purpose is to help governments, firms and interested individuals to better understand how the rules of the multilateral trading system apply to trade in energy.

During the July 1997 G8 Summit in Aspen, President Yeltsin invited the G8 to participate in an Energy Ministerial in Moscow in the spring of 1998. The G8, in preparing the agenda of the meeting, identified energy transit as a strategic issue to be discussed. The Energy Charter Secretariat was invited to prepare a background paper. This paper presents an analysis of the key issues associated with grid-bound energy transit and examines the role of governments, particularly the G8 governments, in adopting a multilateral approach to address and meet some of the challenges of energy transit in the future.