G-8 TO PROMOTE ENERGY SECURITY THROUGH FREER TRADE AND INVESTMENT, INCREASED PRODUCTION
Amid oil prices soaring above USD 75 a barrel, global energy security was a central theme at the 15-17 July summit in St. Petersburg of heads of state from the Group of Eight (G8) industrialised nations.
Leaders from Canada, France, Germany, Italy, Japan, Russia, the UK and the US noted that global demand for oil, natural gas and coal would rise more than 50 percent above current levels by 2030, and that these fossil fuels would still constitute 80 percent of the world’s energy supply at that point. Although they discussed the role of renewable sources of energy such as solar, wind and biomass for long-term energy supply, they focused mostly on how to increase oil field investment in order to raise production.
The summit adopted the ‘St. Petersburg Plan of Action’ to enhance global energy security. It provides for efforts to increase the transparency, predictability and stability of global energy markets; greater energy efficiency and conservation; a more diversified energy mix; ensuring the physical safety of critical energy infrastructure; and addressing climate change and sustainable development. It paid particular attention to reducing barriers to energy investment and trade, calling for enabling companies from both energy producing and consuming countries to "invest in and acquire upstream and downstream assets internationally."
The heads of state expressed support for the principles of the Energy Charter Treaty, a pact intended to integrate the energy industry in former Soviet countries with Europe, which Russia has signed but never ratified. Parties to the Kyoto Protocol reiterated their commitment to meet the objectives of reducing greenhouse gases and dealing with climate change, with an emphasis on the flexibility mechanisms and the role of the private sector.
The G8 communiqué on global energy security is available at http://en.g8russia.ru/docs/11.html.
ICTSD reporting.