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.