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.