participation in global energy governance; it
should assess the cost and benefits of participation and identify the methods and support systems needed for participation; (ii) meet the
expectations of the international community,
such as joining the IEA’s emergency response
mechanism and improving data quality;
(iii) establish an internal conference and consultation mechanism for international energy issues
and allow the authorised departments to attend
international conferences to make China’s voice
heard in a more powerful way; (iv) collaborate
with G20 emerging economies to promote IEA
reform; and (v) identify the international energy
conferences and activities to participate in and
the department and officials who should take
part.
Second, China should strengthen regional
energy security and align it with socioeconomic
development. Specifically, China should: (i) form
a community of common interests and bolster
energy security through regional and multilateral
cooperation; (ii) collaborate with global or
regional organisations to establish stable and
cooperative relations between energy suppliers
and users; (iii) participate in regional multilateral
governance to promote regional energy security
and the joint development of all parties’ energy
economies; (iv) better manage its different governance roles at regional and multilateral levels;
(v) insist on mutually beneficial bilateral cooperation and enhanced multilateral cooperation;
and (vi) improve energy security while hedging
against the possible failure of IEA reform.
Third, China should strengthen its participation in global energy governance and its ability
to: (i) set international energy agendas, especially
those representing emerging and developing
economies; (ii) expertly apply international
energy rules, especially the laws and regulations
governing international energy trade and financial investment; (iii) optimise domestic energy
governance and undertake effective energy
diplomacy to reform international energy cooperation and make it more inclusive of developing
countries; (iv) have sufficient human resources
with the right training for international energy
governance; (v) enable its energy companies to
participate in the international energy market;
and (vi) build discussion platforms with the help
of non-governmental and international organisations, and enhance research on, and capacity
building for, participation in global energy
governance.
2 Introduction
As energy systems around the world undergo
major shifts, global energy governance
1 (institutions, mechanisms and norms) and international
energy cooperation must evolve to remain relevant. Given the high transaction costs associated
with the creation or the reform of multilateral
institutions, changes in the past have often been
slow and piecemeal. Yet abrupt economic and
energy security crises have, at times, led to more
dramatic changes—most notably after the 1973 oil
shock.
Most governments and companies recognise
that energy security must be delivered alongside
rapid action to reduce greenhouse gas emissions.
Air quality is another driver of change, especially
in developing and emerging economies. Meanwhile, policy encouragement for lower carbon,
cleaner options has played a role in sparking
technological advances and declining prices.
Achieving the Paris Agreement’s goals of
limiting global warming to well below 2°C,
while ensuring energy security through the transition, presents a major challenge to both national
and collective energy policymaking. Without
concerted domestic action and cooperation at
unprecedented scales, the world is unlikely to see
the tectonic shifts in technology deployment and
capital allocation that are required.
The transformation of energy markets and
investments is changing the terms of energy
1
See page 3 of the Chatham House – DRC report,
Navigating the New Normal: China and Global Resource
Governance, for a comprehensive definition of global
resource governance, including energy governance.
Available at https://www.chathamhouse.org/sites/files/
global-resource-governance-preston-bailey-bradley-weizhao-final.pdf.
Special Report 5: International Energy Cooperation and Governance
595
should assess the cost and benefits of participation and identify the methods and support systems needed for participation; (ii) meet the
expectations of the international community,
such as joining the IEA’s emergency response
mechanism and improving data quality;
(iii) establish an internal conference and consultation mechanism for international energy issues
and allow the authorised departments to attend
international conferences to make China’s voice
heard in a more powerful way; (iv) collaborate
with G20 emerging economies to promote IEA
reform; and (v) identify the international energy
conferences and activities to participate in and
the department and officials who should take
part.
Second, China should strengthen regional
energy security and align it with socioeconomic
development. Specifically, China should: (i) form
a community of common interests and bolster
energy security through regional and multilateral
cooperation; (ii) collaborate with global or
regional organisations to establish stable and
cooperative relations between energy suppliers
and users; (iii) participate in regional multilateral
governance to promote regional energy security
and the joint development of all parties’ energy
economies; (iv) better manage its different governance roles at regional and multilateral levels;
(v) insist on mutually beneficial bilateral cooperation and enhanced multilateral cooperation;
and (vi) improve energy security while hedging
against the possible failure of IEA reform.
Third, China should strengthen its participation in global energy governance and its ability
to: (i) set international energy agendas, especially
those representing emerging and developing
economies; (ii) expertly apply international
energy rules, especially the laws and regulations
governing international energy trade and financial investment; (iii) optimise domestic energy
governance and undertake effective energy
diplomacy to reform international energy cooperation and make it more inclusive of developing
countries; (iv) have sufficient human resources
with the right training for international energy
governance; (v) enable its energy companies to
participate in the international energy market;
and (vi) build discussion platforms with the help
of non-governmental and international organisations, and enhance research on, and capacity
building for, participation in global energy
governance.
2 Introduction
As energy systems around the world undergo
major shifts, global energy governance
1 (institutions, mechanisms and norms) and international
energy cooperation must evolve to remain relevant. Given the high transaction costs associated
with the creation or the reform of multilateral
institutions, changes in the past have often been
slow and piecemeal. Yet abrupt economic and
energy security crises have, at times, led to more
dramatic changes—most notably after the 1973 oil
shock.
Most governments and companies recognise
that energy security must be delivered alongside
rapid action to reduce greenhouse gas emissions.
Air quality is another driver of change, especially
in developing and emerging economies. Meanwhile, policy encouragement for lower carbon,
cleaner options has played a role in sparking
technological advances and declining prices.
Achieving the Paris Agreement’s goals of
limiting global warming to well below 2°C,
while ensuring energy security through the transition, presents a major challenge to both national
and collective energy policymaking. Without
concerted domestic action and cooperation at
unprecedented scales, the world is unlikely to see
the tectonic shifts in technology deployment and
capital allocation that are required.
The transformation of energy markets and
investments is changing the terms of energy
1
See page 3 of the Chatham House – DRC report,
Navigating the New Normal: China and Global Resource
Governance, for a comprehensive definition of global
resource governance, including energy governance.
Available at https://www.chathamhouse.org/sites/files/
global-resource-governance-preston-bailey-bradley-weizhao-final.pdf.
Special Report 5: International Energy Cooperation and Governance
595