much of the world economy and global energy.
In terms of energy consumption, it covers the
main developed countries and emerging economies; and in terms of energy security, it covers
issues like strategic oil reserves and crisis management, producer and consumer organisations,
climate change, energy markets, price and
financial regulations, and energy poverty and
energy equality. However, as there are many
participants and their interests vary greatly, the
political risks of different parties failing to compromise needs to be considered.
11.3.4 Plan Ahead, Face the Challenges
and Find Solutions
in Global Energy
Governance
(1) The connection between climate governance and energy governance will become
increasingly prominent in the next two
decades
As we approach 2030, the link between energy
security and carbon reduction will intensify. The
question of energy security could be replaced by
climate change, which could seriously alter the
status of global energy governance.
First, energy security will not be replaced by
climate change in the short term. Fossil fuels will
remain the world’s main energy carriers for the
next 20 years at least, though the possibility
cannot be ruled out that local trade flows of oil
and gas will change.
Second, emerging economies are undergoing
both an economic and an energy transition.
Increased electrification and the lower cost of
decarbonised energy will accelerate the substitution of power for conventional fossil fuels. This
will change the focus from energy security to
power security and adjust the action plan to
ensure energy security converges with combating
climate change.
Third, for now, global energy governance is
related to global trade governance. Differences in
carbon taxation are likely to imperil the current
WTO free trade principles and may also affect
bilateral trade interests. Different countries
develop differently, so the carbon tax and its
impacts should be evaluated accordingly. It
should be noted that the convergence of energy
security with combating climate change is a long
process.
(2) Energy governance will impact the energy
security of developing countries
The need for policies and actions in the energy
sector to address climate change are becoming
incontestable. As a result, the prevailing global
energy governance values are in transition. This
could threaten the energy security of emerging
economies, including China’s. Developed countries are happy to see emerging economies
pledge huge nationally determined contributions
but neglect the cost. If carbon cost is added to oil
and gas products in global trade too early, the
cost to oil and gas importing countries will
increase. This will impact their energy security
and may be detrimental to exporters as well.
11.4 Policy Proposals
All participants should actively contribute to the
reform of global energy governance.
11.4.1 For the Chinese Government,
This Means Strategy
Formulation, Internal
Development, Active
Participation
and Achieving
Breakthroughs at Home
(1) Develop strategies for cooperation with,
and the reform of, international energy
governance organisations
It is in China’s interests to firmly adhere to
multilateral norms and international rules, seize
opportunities and address challenges together
with the international community, and actively
and inclusively participate in global energy
governance. This requires China to research and
develop national strategies for participation in
Special Report 5: International Energy Cooperation and Governance
683
In terms of energy consumption, it covers the
main developed countries and emerging economies; and in terms of energy security, it covers
issues like strategic oil reserves and crisis management, producer and consumer organisations,
climate change, energy markets, price and
financial regulations, and energy poverty and
energy equality. However, as there are many
participants and their interests vary greatly, the
political risks of different parties failing to compromise needs to be considered.
11.3.4 Plan Ahead, Face the Challenges
and Find Solutions
in Global Energy
Governance
(1) The connection between climate governance and energy governance will become
increasingly prominent in the next two
decades
As we approach 2030, the link between energy
security and carbon reduction will intensify. The
question of energy security could be replaced by
climate change, which could seriously alter the
status of global energy governance.
First, energy security will not be replaced by
climate change in the short term. Fossil fuels will
remain the world’s main energy carriers for the
next 20 years at least, though the possibility
cannot be ruled out that local trade flows of oil
and gas will change.
Second, emerging economies are undergoing
both an economic and an energy transition.
Increased electrification and the lower cost of
decarbonised energy will accelerate the substitution of power for conventional fossil fuels. This
will change the focus from energy security to
power security and adjust the action plan to
ensure energy security converges with combating
climate change.
Third, for now, global energy governance is
related to global trade governance. Differences in
carbon taxation are likely to imperil the current
WTO free trade principles and may also affect
bilateral trade interests. Different countries
develop differently, so the carbon tax and its
impacts should be evaluated accordingly. It
should be noted that the convergence of energy
security with combating climate change is a long
process.
(2) Energy governance will impact the energy
security of developing countries
The need for policies and actions in the energy
sector to address climate change are becoming
incontestable. As a result, the prevailing global
energy governance values are in transition. This
could threaten the energy security of emerging
economies, including China’s. Developed countries are happy to see emerging economies
pledge huge nationally determined contributions
but neglect the cost. If carbon cost is added to oil
and gas products in global trade too early, the
cost to oil and gas importing countries will
increase. This will impact their energy security
and may be detrimental to exporters as well.
11.4 Policy Proposals
All participants should actively contribute to the
reform of global energy governance.
11.4.1 For the Chinese Government,
This Means Strategy
Formulation, Internal
Development, Active
Participation
and Achieving
Breakthroughs at Home
(1) Develop strategies for cooperation with,
and the reform of, international energy
governance organisations
It is in China’s interests to firmly adhere to
multilateral norms and international rules, seize
opportunities and address challenges together
with the international community, and actively
and inclusively participate in global energy
governance. This requires China to research and
develop national strategies for participation in
Special Report 5: International Energy Cooperation and Governance
683