temperature rises to well below 2°C; and a process of pledge and review through which governments progressively update the ambition of
their nationally determined contributions every
five years in order to incrementally increase
collective ambition.
The strong overlap between the global climate
regime objective of limiting global warming to
well below 2°C and the challenges of managing a
low-carbon, secure transition means there are
opportunities to harmonise climate and energy
governance. At the same time, representation in
traditional energy governance institutions and
mechanisms must be broadened, even as they
focus on energy transition; membership beyond
OECD countries is critical if the IEA is to remain
a relevant institution.
Box 10: IEA expansion
One of the principal barriers to expanding
IEA membership to include emerging
economies has been that the International
Energy Programme (IEP) treaty, which
provides the legal framework for member
countries, requires that signatory countries
be members of the OECD. This means that
expanding membership of the IEA would
require treaty change. It would also require
reforms to the voting rights of countries
within the IEA, which currently reflect
their levels of consumption in 1973; this
would inevitably create winners and losers
and would give an incoming producer such
as China significant voting power.
One way to effectively become a
member of the IEA without signing the IEP
treaty would be to follow Norway’s path.
Norway has a separate partnership agreement with the IEA under which it acts as a
full member country for all intents and
purposes, although it has not signed the
IEP. Such a path could potentially be
available to emerging economies. This
would, of course, require the emerging
economies concerned to follow the same
rules—including those on data sharing and
emergency stock coordination—as existing
member countries.
A roadmap to expansion could conceivably be agreed between the IEA and
emerging economies setting out key milestones that both sides would need to reach
in order for the partnership to become
politically and technically feasible. These
might include: (i) the IEA opening a new
secretariat office in Asia to deepen its links
with officials in Asian consumer countries;
(ii) the IEA cooperating with China on
electricity market reform pilots, providing
technical support to strengthen ties at the
municipal level and demonstrate its capabilities beyond the oil market; and iii)
emerging economies developing the necessary technical and institutional infrastructure to meet IEA requirements in terms
of information and data sharing, stock
management, demand restraint and agreeing to peer review.
6.1 Cooperation Opportunity
Due to its leadership role among emerging
economies, and its position as the world’s largest
energy consumer and greenhouse gas emitter,
China is uniquely placed to drive global energy
governance reforms.
Targeted outcome: Representative global
energy governance institutions providing harmonised energy and climate public goods.
To achieve such an outcome, China could
adopt two distinct strategic cooperation
pathways:
(1) reform the IEA to make it more representative, effective and relevant; and
(2) harmonise global energy and climate governance to facilitate the transition to a
low-carbon, energy-secure future.
Special Report 5: International Energy Cooperation and Governance
633
their nationally determined contributions every
five years in order to incrementally increase
collective ambition.
The strong overlap between the global climate
regime objective of limiting global warming to
well below 2°C and the challenges of managing a
low-carbon, secure transition means there are
opportunities to harmonise climate and energy
governance. At the same time, representation in
traditional energy governance institutions and
mechanisms must be broadened, even as they
focus on energy transition; membership beyond
OECD countries is critical if the IEA is to remain
a relevant institution.
Box 10: IEA expansion
One of the principal barriers to expanding
IEA membership to include emerging
economies has been that the International
Energy Programme (IEP) treaty, which
provides the legal framework for member
countries, requires that signatory countries
be members of the OECD. This means that
expanding membership of the IEA would
require treaty change. It would also require
reforms to the voting rights of countries
within the IEA, which currently reflect
their levels of consumption in 1973; this
would inevitably create winners and losers
and would give an incoming producer such
as China significant voting power.
One way to effectively become a
member of the IEA without signing the IEP
treaty would be to follow Norway’s path.
Norway has a separate partnership agreement with the IEA under which it acts as a
full member country for all intents and
purposes, although it has not signed the
IEP. Such a path could potentially be
available to emerging economies. This
would, of course, require the emerging
economies concerned to follow the same
rules—including those on data sharing and
emergency stock coordination—as existing
member countries.
A roadmap to expansion could conceivably be agreed between the IEA and
emerging economies setting out key milestones that both sides would need to reach
in order for the partnership to become
politically and technically feasible. These
might include: (i) the IEA opening a new
secretariat office in Asia to deepen its links
with officials in Asian consumer countries;
(ii) the IEA cooperating with China on
electricity market reform pilots, providing
technical support to strengthen ties at the
municipal level and demonstrate its capabilities beyond the oil market; and iii)
emerging economies developing the necessary technical and institutional infrastructure to meet IEA requirements in terms
of information and data sharing, stock
management, demand restraint and agreeing to peer review.
6.1 Cooperation Opportunity
Due to its leadership role among emerging
economies, and its position as the world’s largest
energy consumer and greenhouse gas emitter,
China is uniquely placed to drive global energy
governance reforms.
Targeted outcome: Representative global
energy governance institutions providing harmonised energy and climate public goods.
To achieve such an outcome, China could
adopt two distinct strategic cooperation
pathways:
(1) reform the IEA to make it more representative, effective and relevant; and
(2) harmonise global energy and climate governance to facilitate the transition to a
low-carbon, energy-secure future.
Special Report 5: International Energy Cooperation and Governance
633