help balancing, reduce electricity costs and provide opportunities for trade.
1.5 Strategic Path for International
Energy Cooperation
International cooperation is critical to achieving
global energy objectives. The global challenge of
enhancing energy security over the course of the
next half century, while decarbonising the energy
sector, will not be achieved through governments
acting unilaterally in isolation from one another.
In Fig. 1, the proposed international cooperation options are shown on a matrix. The horizontal axis represents a spectrum from
bilateralism to multilateralism, and the vertical
axis represents a continuum from market-led
approaches to more direct policy interventions.
As noted above, these proposals should be
viewed as part of a broad package, since many
could be delivered together, and implementing
some depends on progress in others. However,
what is obvious is that, while the options span a
range of market- and policy-led approaches, few
are based on a transactional approach. Instead,
the proposals cluster among regionalism and
multilateralism in the form of efforts to establish,
strengthen and propagate common rules and
norms.
Patience will be required, as the success of
many of these proposals rests on wider political
dynamics beyond the energy sector, not least
China’s relations with the USA and other countries. Moreover, realising the win-wins that are
available will often require compromise. In
addition, the Belt and Road Initiative can provide
a platform for regional and plurilateral governance by establishing rules of the road; alternatively, it could provide an arena for
country-by-country bilateral deals.
G20 plays a central role in many of the proposals. It provides a potential avenue through
which China and partner countries can pursue
reforms and has a track record of reforming
international organisations and establishing new
ones. Its membership has critical mass in key
areas such as emissions, energy consumption and
investment, and R&D. And it has existing
workstreams in relevant areas such as infrastructure, green finance, investment and fossil fuel
subsidies.
As such, the G20 could evolve into the apex
organisation for global energy governance. But
this will not happen overnight, and considerable
effort would be needed to build and sustain its
capacity to do so.
1.6 China Should Develop
Future-Oriented Win-Win
International Energy
Cooperation and Shoulder
Greater Responsibilities
in Global Energy
Governance
As a large country with high levels of energy
production, energy consumption and trade volumes, as well as increasing dependence on foreign energy, China’s development has had
significant and far-reaching impacts on the global
energy landscape. Moreover, China is beginning
to be a global leader in the deployment of energy
technologies. As a major manufacturer and
exporter of low-carbon technologies, China
stands to benefit economically from rapid global
decarbonisation; and as a country with high
levels of exposure to climate risks, China also
stands to benefit from accelerated global emissions reductions. Finally, as the world’s largest
energy consumer, China is exposed to market
disruptions and it benefits from resilient international energy markets.
To establish a stable, effective and sustainable
energy supply system, China must implement a
more inclusive international energy cooperation
strategy and promote win-win collaborations.
Strategically, China should deepen international
energy cooperation in five aspects: multi-level
international energy cooperation partners,
multi-channel international energy cooperation
methods, diversified international energy cooperation forms, multi-area international energy
cooperation content, and multi-task international
energy cooperation processes.
Special Report 5: International Energy Cooperation and Governance
593
1.5 Strategic Path for International
Energy Cooperation
International cooperation is critical to achieving
global energy objectives. The global challenge of
enhancing energy security over the course of the
next half century, while decarbonising the energy
sector, will not be achieved through governments
acting unilaterally in isolation from one another.
In Fig. 1, the proposed international cooperation options are shown on a matrix. The horizontal axis represents a spectrum from
bilateralism to multilateralism, and the vertical
axis represents a continuum from market-led
approaches to more direct policy interventions.
As noted above, these proposals should be
viewed as part of a broad package, since many
could be delivered together, and implementing
some depends on progress in others. However,
what is obvious is that, while the options span a
range of market- and policy-led approaches, few
are based on a transactional approach. Instead,
the proposals cluster among regionalism and
multilateralism in the form of efforts to establish,
strengthen and propagate common rules and
norms.
Patience will be required, as the success of
many of these proposals rests on wider political
dynamics beyond the energy sector, not least
China’s relations with the USA and other countries. Moreover, realising the win-wins that are
available will often require compromise. In
addition, the Belt and Road Initiative can provide
a platform for regional and plurilateral governance by establishing rules of the road; alternatively, it could provide an arena for
country-by-country bilateral deals.
G20 plays a central role in many of the proposals. It provides a potential avenue through
which China and partner countries can pursue
reforms and has a track record of reforming
international organisations and establishing new
ones. Its membership has critical mass in key
areas such as emissions, energy consumption and
investment, and R&D. And it has existing
workstreams in relevant areas such as infrastructure, green finance, investment and fossil fuel
subsidies.
As such, the G20 could evolve into the apex
organisation for global energy governance. But
this will not happen overnight, and considerable
effort would be needed to build and sustain its
capacity to do so.
1.6 China Should Develop
Future-Oriented Win-Win
International Energy
Cooperation and Shoulder
Greater Responsibilities
in Global Energy
Governance
As a large country with high levels of energy
production, energy consumption and trade volumes, as well as increasing dependence on foreign energy, China’s development has had
significant and far-reaching impacts on the global
energy landscape. Moreover, China is beginning
to be a global leader in the deployment of energy
technologies. As a major manufacturer and
exporter of low-carbon technologies, China
stands to benefit economically from rapid global
decarbonisation; and as a country with high
levels of exposure to climate risks, China also
stands to benefit from accelerated global emissions reductions. Finally, as the world’s largest
energy consumer, China is exposed to market
disruptions and it benefits from resilient international energy markets.
To establish a stable, effective and sustainable
energy supply system, China must implement a
more inclusive international energy cooperation
strategy and promote win-win collaborations.
Strategically, China should deepen international
energy cooperation in five aspects: multi-level
international energy cooperation partners,
multi-channel international energy cooperation
methods, diversified international energy cooperation forms, multi-area international energy
cooperation content, and multi-task international
energy cooperation processes.
Special Report 5: International Energy Cooperation and Governance
593