1 May 2015: The UN Economic Commission for Europe (UNECE) organized Resource Classification Week from 27 April-1 May 2015, bringing together over 200 experts from Africa, Asia and Latin America. The Week focused on discussing and further developing the UN Framework Classification for Fossil Energy and Mineral Reserves and Resources 2009 (UNFC), which is the only major resource classification that equally considers commerciality, social license and environmental impact alongside project feasibility and uncertainty.

Not only does UNFC allow investors to choose energy projects based on their sustainability and impact on local communities, but it can also help project planners get the resource assessment right before undertaking a renewable energy project, as emphasized by UNECE, which points out that “on average, wind production is 7% below forecast and 65% of wind farms are underperforming.”

Tom Murley, Head of Renewable Energy, HgCapital, spoke at the opening of the Week, stating that “Better yield forecasting, especially for wind, would improve investment conditions and attract private sources. An identifiable global standard based on UNFC methodology can help increase predictability and thus drive forward the investments needed for a low-carbon future.” HgCapital has found that overestimating the resource can lead to a 15% loss in revenue over the life of the project and a 26% lower internal rate of return (IRR).

Among the Week’s activities, which took place in Geneva, Switzerland, was the Sixth Session of the Expert Group on Resource Classification (EGRC), which is, according to UNECE, “the only forum in the world where experts in resource classification covering solid minerals and petroleum, and now also renewables, meet and share information and ideas.” EGRC met 29 April-1 May to go over, inter alia, UNFC’s application to solid minerals, petroleum, nuclear fuel, renewable energy and injection projects.

A workshop held during the Week focused on UNFC and Central Asia, which among other things, covered the status of resource classification in Central Asia and potential for application of, or mapping to, UNFC.

In addition, the International Atomic Energy Agency (IAEA) met jointly with UNECE on 27–28 April to continue developing guidelines for applying the UNFC to uranium and thorium projects. [UNECE Press Release, Resource Classification Week] [UNECE Press Release, UNFC and Financing Plans for Renewables] [EGRC Meeting Webpage] [UNFC Workshop with Focus on Central Asia Meeting Webpage] [UNECE UNFC and Resource Classification Webpage]