Special Report 5: International
Energy Cooperation and Governance
Wei Jigang and Peter Webb
1 Executive Summary
Currently, the global energy landscape is undergoing major shifts in terms of demand, supply,
technology, structure, market and investment.
Countries have general requirements for
improved air quality and reduced emissions and
pollution. International energy cooperation and
governance must adapt to these new changes;
promote the transition to clean, low-carbon,
efficient and secure global energy; and drive
high-quality development of global energy.
1.1 Making Global Energy
Governance Fit
for the Future
Energy security has traditionally focused on oil
and gas supply security and price stability and
created a set of international energy governance
regimes. Today, three key trends are reshaping
the nature and focus of international energy
cooperation and governance. First, most governments and companies recognise that energy
security must be delivered alongside rapid action
to reduce greenhouse gas emissions. Second,
there are increasing concerns over air pollution at
the national level. Third, policy encouragement
for lower carbon, cleaner options has helped
spark technological advances and declining prices. International energy governance needs to
adapt to new market realities and shifts in energy
mix in order to remain relevant and effective.
However, the current global energy governance regime suffers from two principal deficiencies in its ability to facilitate a low-carbon,
secure energy transition. First, the principal
energy security regime of the International
Energy Agency (IEA) does not include emerging
economies, which account for a major, and
growing, share of consumption. Second, even
though the energy sector is responsible for
around two-thirds of global greenhouse gas
emissions, climate objectives have not been fully
integrated into energy governance arrangements.
DRC Team Lead of Special Report 5:
Wei Jigang from the Research Department of Industrial
Economy, Development Research Center (DRC) of the
State Council of China.
Shell Team Lead of Special Report 5:
Peter Webb, Government Relations Advisor, Shell
International B.V.
Contributors:
Rob Bailey, Daniel Quiggin, Felix Preston and Sian
Bradley from the Department of Energy, Resources and
Environment, the Royal Institute of International Affairs;
Hong Tao from DRC; and Chen Jinxiao from the
Chinese Academy of Social Sciences.
W. Jigang (&)
Research Department of Industrial Economy,
Development Research Center (DRC) of the State
Council of China, Beijing, China
P. Webb
Government Relations Advisor, Shell
International B.V., The Hague, the Netherlands
© The Author(s) 2020
Shell International B.V. and the Development Research Center (DRC) of the State Council of the People’s
Republic of China (eds.), China’s Energy Revolution in the Context of the Global Energy Transition,
Advances in Oil and Gas Exploration & Production, https://doi.org/10.1007/978-3-030-40154-2_6
591
Energy Cooperation and Governance
Wei Jigang and Peter Webb
1 Executive Summary
Currently, the global energy landscape is undergoing major shifts in terms of demand, supply,
technology, structure, market and investment.
Countries have general requirements for
improved air quality and reduced emissions and
pollution. International energy cooperation and
governance must adapt to these new changes;
promote the transition to clean, low-carbon,
efficient and secure global energy; and drive
high-quality development of global energy.
1.1 Making Global Energy
Governance Fit
for the Future
Energy security has traditionally focused on oil
and gas supply security and price stability and
created a set of international energy governance
regimes. Today, three key trends are reshaping
the nature and focus of international energy
cooperation and governance. First, most governments and companies recognise that energy
security must be delivered alongside rapid action
to reduce greenhouse gas emissions. Second,
there are increasing concerns over air pollution at
the national level. Third, policy encouragement
for lower carbon, cleaner options has helped
spark technological advances and declining prices. International energy governance needs to
adapt to new market realities and shifts in energy
mix in order to remain relevant and effective.
However, the current global energy governance regime suffers from two principal deficiencies in its ability to facilitate a low-carbon,
secure energy transition. First, the principal
energy security regime of the International
Energy Agency (IEA) does not include emerging
economies, which account for a major, and
growing, share of consumption. Second, even
though the energy sector is responsible for
around two-thirds of global greenhouse gas
emissions, climate objectives have not been fully
integrated into energy governance arrangements.
DRC Team Lead of Special Report 5:
Wei Jigang from the Research Department of Industrial
Economy, Development Research Center (DRC) of the
State Council of China.
Shell Team Lead of Special Report 5:
Peter Webb, Government Relations Advisor, Shell
International B.V.
Contributors:
Rob Bailey, Daniel Quiggin, Felix Preston and Sian
Bradley from the Department of Energy, Resources and
Environment, the Royal Institute of International Affairs;
Hong Tao from DRC; and Chen Jinxiao from the
Chinese Academy of Social Sciences.
W. Jigang (&)
Research Department of Industrial Economy,
Development Research Center (DRC) of the State
Council of China, Beijing, China
P. Webb
Government Relations Advisor, Shell
International B.V., The Hague, the Netherlands
© The Author(s) 2020
Shell International B.V. and the Development Research Center (DRC) of the State Council of the People’s
Republic of China (eds.), China’s Energy Revolution in the Context of the Global Energy Transition,
Advances in Oil and Gas Exploration & Production, https://doi.org/10.1007/978-3-030-40154-2_6
591