G8 ST. PETERSBURG PLAN OF ACTION GLOBAL ENERGY SECURITY pt2

I. Increasing Transparency, Predictability and Stability of Global Energy Markets

2. Free, competitive and open markets are essential to the efficient functioning of the global energy system. Efforts to advance transparency; to deepen and spread the rule of law; to establish and strengthen predictable, efficient fiscal and regulatory regimes; and to encourage sound energy supply and demand policies all play significant roles in maintaining global energy security. By reducing uncertainty these efforts improve understanding of energy market developments, and therefore sound investment decisions and competitiveness. Regular exchanges of timely and reliable information among all market participants are also essential for the smooth functioning of world energy markets. Transparent, predictable national energy policies and regulatory environments facilitate development of efficient energy markets. We invite the International Energy Forum (IEF) to study ways of broadening the dialogue between energy producing and consuming countries on these issues including information exchange on their medium- and long-term respective policy plans and programs.

3. We welcome the beginning of implementation of the Joint Oil Data Initiative (JODI) and will take further action to improve and enhance the collection and reporting of market data on oil and other energy sources by all countries including through development of a global common standard for reporting oil and other energy reserves. In this respect, we will invite the IEF to work on the expansion of JODI membership and to continue to improve the quality and timeliness of data.

4. As a critical tool in the fight against corruption, we will also take forward efforts to make management of public revenues from energy exports more transparent, including in the context of the Extractive Industries Transparency Initiative (EITI) and the IMF Guide on Resource Revenue Transparency (GRRT).

5. Clear, stable and predictable national regulatory frameworks significantly contribute to global energy security, and multilateral arrangements can further enhance these frameworks. We support the principles of the Energy Charter and the efforts of participating countries to improve international energy cooperation.

6. Concerted actions of energy producers and consumers are of critical importance in times of supply crises. We encourage further efforts under the IEA aegis to promote international best practices related to emergency response measures, including establishment, coordination and release of strategic stocks, where appropriate, as well as measures to implement demand restraint and fuel-switching. We note constructive steps by major producing countries to increase oil output in response to recent tight market conditions and support additional actions.

II. Improving the Investment Climate in the Energy Sector

7. Ensuring an adequate global energy supply will require trillions of U.S. dollars in investment through the entire energy chain by 2030, a substantial share of which will be needed by developing countries. We will create and maintain the conditions to attract these funds into the energy sector through competitive, open, equitable and transparent markets. We understand that governments' environmental and energy policies are critical for investment decisions. In producing, consuming and transit states, therefore, we will promote predictable regulatory regimes, including stable, market-based legal frameworks for investments, medium and long-term forecasts of energy demand, clear and consistent tax regulation, removal of unjustified administrative barriers, timely and effective contract enforcement and access to effective dispute settlement procedures.

8. We shall take measures both nationally and internationally to facilitate investments into a sustainable global energy value chain to:

-further save energy through demand-side measures as well as introduce advanced energy-efficient technologies;
-introduce cleaner, more efficient technologies and practices including carbon capture and storage;
-promote wider use of renewable and alternative energy sources;
-expand the hydrocarbon proven reserves in a way that would outpace their depletion and increase the recovery of energy resources;
-increase the efficiency of oil and gas production, and develop resources on the continental shelf;
-establish, expand and improve the efficiency of oil-refining, petrochemical and gas processing industries' capacity;
-develop global LNG market;
-establish or upgrade infrastructure for energy transport and storage;
-develop efficient power generating facilities;

and expand and improve the efficiency, safety and reliability of electricity transmission facilities and power grids and their international connectivity including, where appropriate, in developing countries.
9. We encourage construction and development of hydrocarbon-processing facilities to increase energy market flexibility and confidence, as well as expansion, where economically viable, of trade in hydrocarbon products. We will work with all stakeholders to improve energy regulatory regimes, inter alia, through feasible technical standards harmonization. We will ask the International Standards Organization to study ways and means of harmonizing relevant standards in this context.

10. We consider it important to facilitate capital flows into power generation, including to build new, more efficient power plants, upgrading existing plants to include wider use of renewables, and to construct transmission lines, develop interregional energy infrastructure and facilitate exchange of electrical power, including trans-border and transit arrangements. We encourage the development of competitive power markets, interregional energy infrastructure, and exchange of electrical power.

11. Rapidly growing LNG trade is gradually supplementing the existing regional systems of pipeline gas supplies. To reduce huge investment risks and facilitate smooth functioning of the emerging global LNG market, we will seek to create appropriate investment conditions.

12. High and increasing investment exposure calls for better risks sharing between all stakeholders in energy supply chain which will ensure reliable and sustainable energy flows. Economically sound diversification between different types of contracts, including market-based long-term and spot contracts, could contribute to such risks mitigation, as would timely decision-making and appropriate adherence and enforcement of contractual agreements.

13. We will work to reduce barriers to energy investment and trade. It is especially important that companies from energy producing and consuming countries can invest in and acquire upstream and downstream assets internationally in a mutually beneficial way and respecting competition rules to improve the global efficiency of energy production and consumption. Market-based investment flows between and among nations will also enhance energy security by increasing confidence in access to markets or sources of supply.

14. Ensuring the long-term availability of skilled workforce throughout the energy sector is critical to energy security. We encourage institutions of higher learning and the private sector to take the necessary steps in providing appropriate training to adequately develop human resources in the energy sector, including new and innovative energy sources and technologies needed for ensuring longer-term energy security.

G8 ST. PETERSBURG PLAN OF ACTION GLOBAL ENERGY SECURITY pt1

The g8 leaders and the invited developing countries of major economic importance have discussed the importance of energy security,efficiency and development to produce global economic improvement that is sustainable and cost effective...

St. Petersburg, July 16, 2006

Global Energy Challenges
1. Energy is essential to improving the quality of life and opportunities in developed and developing nations. Therefore, ensuring sufficient, reliable and environmentally responsible supplies of energy at prices reflecting market fundamentals is a challenge for our countries and for mankind as a whole.

2. To tackle this overarching goal we have to deal with serious and linked challenges such as:
high and volatile oil prices;
growing demand for energy (estimated to rise by more than 50% by the year 2030, approximately 80% of which would still be met by fossil fuels, which are limited resources);
increasing import dependence in many countries;
- enormous investment requirements along the entire energy chain;
- the need to protect the environment and to tackle climate change;
- the vulnerability of the critical energy infrastructure;
- political instability, natural disasters and other threats. .

The global nature of these challenges and the growing interdependence between producing, consuming and transiting countries require strengthened partnership between all stakeholders to enhance global energy security. We agree that development of transparent, efficient and competitive global energy markets is the best way to achieve our objectives on this score. We recognize that governments and relevant international organizations also play an important role in addressing global energy challenges.

3. Neither global energy security, nor the Millennium Development Goals can be fully achieved without sustainable access to fuels for the 2.4 billion people and to electricity for the 1.6 billion people currently without such access in developing countries. They cannot be forgotten or marginalized.

Response of the International Community

4. Given political will, the international community can effectively address three interrelated issues: energy security, economic growth and environmental protection (the "3Es"). Applying fair and competitive market-based responses to the global energy challenges will help preclude potentially disruptive actions affecting energy sources, supplies and transit, and create a secure basis for dynamic and sustainable development of our civilization over the long term.

5. We will pursue energy security through a comprehensive and concerted approach consistent with our common environmental goals. Last year in Gleneagles, we agreed to enhance our work under the Plan of Action for Climate Change, Clean Energy and Sustainable Development and resolved to take forward the dialogue on these issues whose results will be reported at the 2008 G8 Summit in Japan. We reaffirm this commitment.

We also reaffirm our commitment to the United Nations Framework Convention on Climate Change (UNFCCC) and to meet our shared multiple objectives of reducing greenhouse gas emissions, improving the global environment, enhancing energy security, and cutting air pollution in conjunction with our vigorous efforts to reduce energy poverty. We also agree to work to improve access to energy in developing countries.

Statement on Global Energy Security Principles

6. Recognizing the shared interest of energy producing and consuming countries in promoting global energy security, we, the Leaders of the G8, commit to:
-strong global economic growth, effective market access, and investment in all stages of the energy supply chain;

-open, transparent, efficient and competitive markets for energy production, supply, use, transmission and transit services as a key to global energy security;

-transparent, equitable, stable and effective legal and regulatory frameworks, including the obligation to uphold contracts, to generate sufficient, sustainable international investments upstream and downstream;

-enhanced dialogue on relevant stakeholders' perspectives on growing interdependence, security of supply and demand issues;

-diversification of energy supply and demand, energy sources, geographical and sectoral markets, transportation routes and means of transport;

-promotion of energy saving and energy efficiency measures through initiatives on both national and international levels;

-environmentally sound development and use of energy, and deployment and transfer of clean energy technologies which help to tackle climate change;

-promotion of transparency and good governance in the energy sector to discourage corruption;
cooperative energy emergency response, including coordinated planning of strategic stocks;
safeguarding critical energy infrastructure;

and addressing the energy challenges for the poorest populations in developing countries.

7. Based on the above objectives, principles and approaches, we will implement our common global energy security strategy through the following Plan of Action. We invite other states, relevant international organizations and other stakeholders to join us in these efforts.

ST. PETERSBURG PLAN OF ACTION GLOBAL ENERGY SECURITY

1. We reaffirm our commitment to implement and build upon the agreements related to energy reached at previous G8 summits. We will enhance global energy security through actions in the following key areas:

- increasing transparency, predictability and stability of global energy markets;
-improving the investment climate in the energy sector;
-enhancing energy efficiency and energy saving;
-diversifying energy mix;
-ensuring physical security of critical energy infrastructure;
-reducing energy poverty;
-addressing climate change and sustainable development.

Joint Statement by President George Bush and President V.V.Putin

As we have noted here and here and here the Russian initiatives for the g8 have included nuclear as one of the main components for global enrgy security.The concept is for construction,supply,operation and removal of nuclear waste for fuel processing at three centres worldwide.

The emerging advancements for NNP include the smaller plants of around 70mw-600mw capacity.Based on seaborne technology already used.

The United States and the Russian Federation believe that strengthening their cooperation in civil nuclear energy is in the strategic interests of both our countries. It will serve as an additional assurance of access for other nations to economical and environmentally safe peaceful nuclear energy.

The United States and the Russian Federation are working together to meet the challenges posed by the combination of proliferation of weapons of mass destruction and international terrorism. We recognize the devastation that could befall our peoples and the world community if nuclear weapons or materials or other weapons of mass destruction were to fall into the hands of terrorists. We are closely cooperating to lessen that unacceptable danger, including by strengthening the nonproliferation regime and ensuring the security of nuclear weapons and fissile materials.

Cooperation in the Peaceful Uses of Nuclear Energy

The United States and the Russian Federation are convinced that reliable and sufficient energy supplies are the cornerstone of sustainable economic development and prosperity for all nations, and a necessary condition for maintaining international stability. Today nuclear energy is a proven technology for providing reliable electric power without emission of greenhouse gases, and is an essential part of any solution to meet growing energy demand.

We share the view that nuclear energy has an essential role in the promotion of energy security, which is an issue of special concern for the leaders of the G-8. Advancing nuclear energy will require further development of innovative technologies that reduce the risk of proliferation, provide for safe management of waste, are economically viable, and are environmentally safe.

Being consistent in our approach to assure access to the benefits of nuclear energy for all nations complying with their non-proliferation obligations, we have each proposed initiatives on the development of a global nuclear energy infrastructure, specifically the Russian proposal to establish a system of international centers to provide nuclear fuel services, including uranium enrichment, under IAEA safeguards, and the U.S. proposal for the Global Nuclear Energy Partnership to develop innovative nuclear reactor and fuel cycle technologies.

Following up on these initiatives, the United States and the Russian Federation intend to work together, actively involving the IAEA, to allow all nations to enjoy the benefits of nuclear energy without pursuing uranium enrichment and spent fuel reprocessing capabilities.

The United States and the Russian Federation together with four other nuclear fuel supplier states have also proposed a concept for reliable access to nuclear fuel for consideration and development at the IAEA.

We call upon other countries to join us to facilitate the safe and secure expansion of nuclear energy worldwide.

Proceeding from our national interests and common goals, and recognizing the benefits of civil commercial nuclear trade, we express our intent to develop bilateral cooperation in the peaceful use of nuclear energy.

G8 to discuss aid to Africa Climate change Blair initiative

Aid to Africa and efforts against climatic changes have appeared on the St. Petersburg G8 summit agenda on the initiative of Tony Blair, Great Britain's Prime Minister. As energy security comes under discussion, the Prime Minister intends to focus attention on climatic change problems, thus to go on with debates started in Gleneagles. The theme will persist during the German and Japanese G8 presidencies, said a functionary directly involved in summit preparations.

Mr. Blair also intends to call summit attention to the necessity to elaborate an international instrument that would replace the Kyoto Protocol as it expires in 2012. This will encompass bringing in non signatories to the present sunset treaty!.The emphasis in conjunvtion with the Russian initiative on global energy security and innovative technologies.

Vice-Speaker of the Duma Vladimir Pekhtin said that Russia expects the G8 summit to support its efforts to ensure reliable demand for energy.

"It goes without saying that every country has its own interpretation of energy security. For Russia, energy security primarily implies a reliable and long-term demand for oil and gas, as well as Gazprom's access to the local European networks. I hope that the G8 will make a balanced and clear-cut decision, and that this decision will benefit not only the producers but also the consumers of fuel," Pekhtin said.

He told journalists that as the G8 president, Russia has suggested a new concept of energy security: security of demand.

For suppliers this concept means adequate demand for energy at reasonable prices. This allows them to recoup their investment in the energy sector and develop it further. Pekhtin said that Russia is very interested in receiving political support for this concept.

In order to make the energy market secure, it is primarily necessary to make it transparent, predictable and stable, he said.

"Continued dialogue between energy producers and consumers, fair distribution of investment risks, and free flow of capital will facilitate the achievement of this major goal," Pekhtin said.
In turn, Chairman of the Duma Committee on Economic Policy, Entrepreneurship, and Tourism Valery Draganov noted that the progress of the world community directly depends on a reliable and adequate supply of energy.

"At present, the energy supply system has become so global that any mishap in its functioning is inevitably felt by all. This is why any attempt to redress the situation can be done through coordinated international actions," he concluded.

A very inconvenient report on the quality of climate change statistics

The US senate house committee on energy today released a very condemning report on the statistical prowness of Mann et al.


‘It is important to note the isolation of the paleoclimate community; even though
they rely heavily on statistical methods they do not seem to be interacting with the statistical community. Additionally, we judge that the sharing of research materials, data and results was haphazardly and grudgingly done. In this case we judge that there was too much reliance on peer review, which was not necessarily independent. Moreover, the work has been sufficiently politicized that this community can hardly reassess their public positions without losingcredibility.

Overall, our committee believes that Dr. Mann’s assessments that the decade of the 1990s was the hottest decade of the millennium and that 1998 was
the hottest year of the millennium cannot be supported by his analysis.’
– Excerpt from Wegman report

Putin supports NGOs’ request to G8 leaders to finance alternative energy

Russian President Vladimir Putin said it was on Russia's insistence that the issue of nuclear energy safety had been added to the G8 summit agenda. He said at the Civil G8-2006 forum in Moscow on Tuesday that some of his G8 colleagues had initially not wanted to discuss the issue.
"Not that they are against nuclear energy safety; they wanted to avoid the issue because of the harsh stance of their countries' NGOs," Putin said. "I don't think this is right, and I have convinced them to accept my reasoning."

He recalled the Chernobyl accident and said that nuclear safety concerned not only countries that have nuclear technology but also those that did not intend to develop it.
"Security concerns everyone; we know this better than anyone else from the Chernobyl experience," the Russian president said. He promised to convey the NGOs' recommendations on nuclear energy development to the G8 leaders.

"The nuclear energy issue on the agenda of the St. Petersburg summit refers not to the development of nuclear power generation, but to its safety," he said. "However, since you have formulated recommendations regarding the development [of nuclear power], we will convey them to the G8 leaders." 3

He said he agreed that alternative sources of energy should be developed and made available.
"It is possible and necessary to demand that governments allocate funds to the development of alternative energy sources," Putin said.

He said governments should provide money to achieve this objective, but without increasing taxes on energy companies. "Increasing the tax burden is not always the best way, because even I cannot be sure that the funds will be spent to accomplish these goals," he said.
These and other recommendations of the NGOs will be taken into account at the decision-making stage, the president said. "My colleagues [in the G8] are trying to promote dialogue with NGOs one way or another, and to hear your opinions," he said.

"Everything you have said here will be conveyed to the G8 leaders. We will analyze your proposals and take them into account when adopting decisions," Putin said.