(4) Making breakthroughs, integrating different governance organisations and
sharing China’s successes
The costs, benefits and risks of China participating in energy governance mechanisms differ
from one mechanism to another. China is more
likely to make a breakthrough in a governance
organisation in which it has a leadership role
(such as energy cooperation in the Belt and Road
Initiative). Even if the aims and jurisdictions of
international energy cooperation and global
energy governance differ, the benefits of cooperation and China’s successful experience help to
improve global energy governance.
In 2016, China made breakthroughs in its
energy cooperation with the G20 and the IEA.
China became an associate member of the IEA,
the current global energy governance organisation, indicating China’s progress in mainstream
global energy governance. The G20 is a global
economic governance mechanism, of which
China is a founding member. The G20 provides
an arena for China to enhance its leadership in
global energy governance.
Promoting energy cooperation in the Belt and
Road Initiative and reforming global energy
governance are equally important to China and
mainstream global energy governance organisations like the IEA. This study proposes that
China:
(i) enhance transparency of all policies and
strengthen mutual trust to create a win-win
situation and an energy cooperation
mechanism that works under normal economic and geopolitical circumstances;
(ii) actively reform global energy governance.
Reform includes comprehensive cooperation with existing mainstream international
organisations and the promotion of China’s policies and proposals, active participation in the formulation and reform of
multilateral laws and rules of energy
governance, and advancing the view that
all parties share equally the benefits and
risks of energy governance and compete in
an orderly way; and
(iii) actively innovate governance platforms
and promote dialogue between them, such
as that between the Belt and Road Initiative and global organisations like the IEA,
OPEC, SCO, EU, OECD and WTO.
11.4.2 The International Community
Should Make
the Mainstream
Governance System More
Inclusive
(1) The existing global energy governance
framework does not meet the needs of a
globalised world, so reform to make it
more inclusive is urgent
The current governance mechanism is unable to
solve risks effectively—political, legal, and the risk
of corruption during energy investment. Some
energy governance mechanisms are regionally
focused and have not been applied globally; others
are becoming less effective with time.
Despite twists and turns, globalisation is
irreversible. So, global governance is essential
and global energy governance is an important
part of global economic governance. Policies that
integrate energy suppliers with consumers are
becoming increasingly tighter. In particular, as
the USA becomes energy independent and the oil
and gas consumption of developed countries
peaks (developed countries are unlikely to
increase consumption), only China and India will
have the potential to increase oil and gas consumption. Emerging and developing economies
are, therefore, the cooperation partners that the
IEA and OPEC strive for.
Thanks to globalisation, energy security is not
as critical as before. Only by improving inclusiveness can the challenges of global energy
Special Report 5: International Energy Cooperation and Governance
685
sharing China’s successes
The costs, benefits and risks of China participating in energy governance mechanisms differ
from one mechanism to another. China is more
likely to make a breakthrough in a governance
organisation in which it has a leadership role
(such as energy cooperation in the Belt and Road
Initiative). Even if the aims and jurisdictions of
international energy cooperation and global
energy governance differ, the benefits of cooperation and China’s successful experience help to
improve global energy governance.
In 2016, China made breakthroughs in its
energy cooperation with the G20 and the IEA.
China became an associate member of the IEA,
the current global energy governance organisation, indicating China’s progress in mainstream
global energy governance. The G20 is a global
economic governance mechanism, of which
China is a founding member. The G20 provides
an arena for China to enhance its leadership in
global energy governance.
Promoting energy cooperation in the Belt and
Road Initiative and reforming global energy
governance are equally important to China and
mainstream global energy governance organisations like the IEA. This study proposes that
China:
(i) enhance transparency of all policies and
strengthen mutual trust to create a win-win
situation and an energy cooperation
mechanism that works under normal economic and geopolitical circumstances;
(ii) actively reform global energy governance.
Reform includes comprehensive cooperation with existing mainstream international
organisations and the promotion of China’s policies and proposals, active participation in the formulation and reform of
multilateral laws and rules of energy
governance, and advancing the view that
all parties share equally the benefits and
risks of energy governance and compete in
an orderly way; and
(iii) actively innovate governance platforms
and promote dialogue between them, such
as that between the Belt and Road Initiative and global organisations like the IEA,
OPEC, SCO, EU, OECD and WTO.
11.4.2 The International Community
Should Make
the Mainstream
Governance System More
Inclusive
(1) The existing global energy governance
framework does not meet the needs of a
globalised world, so reform to make it
more inclusive is urgent
The current governance mechanism is unable to
solve risks effectively—political, legal, and the risk
of corruption during energy investment. Some
energy governance mechanisms are regionally
focused and have not been applied globally; others
are becoming less effective with time.
Despite twists and turns, globalisation is
irreversible. So, global governance is essential
and global energy governance is an important
part of global economic governance. Policies that
integrate energy suppliers with consumers are
becoming increasingly tighter. In particular, as
the USA becomes energy independent and the oil
and gas consumption of developed countries
peaks (developed countries are unlikely to
increase consumption), only China and India will
have the potential to increase oil and gas consumption. Emerging and developing economies
are, therefore, the cooperation partners that the
IEA and OPEC strive for.
Thanks to globalisation, energy security is not
as critical as before. Only by improving inclusiveness can the challenges of global energy
Special Report 5: International Energy Cooperation and Governance
685