Archive for 1.3 China and International Relations in the Energy Sector

Major Turning Points of International Energy Policy: China’s Key Role

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

China and Iran: Energy and/or Geopolitics

This essay offers a Chinese perspective on the role played by Iran in China’s energy security and contemplates ways for China and the U.S. to address the associated diplomatic challenges. Iran is a factor that contributes to and risks deepening the “trust deficit” in diplomatic relations between China and the U.S. For China, access to Iranian energy resources is conditioned by an array of factors, including market-based concerns and considerations of domestic stability within China were Beijing to side with Washington in applying sanctions against Tehran. Beijing is not as forthcoming as Washington would like in dealing with Tehran, but Chinese involvement in multilateral diplomatic forums should not be overlooked. American observers are often tempted to view Chinese diplomacy toward Iran as part of an agenda to confront the U.S. and the wider West. The truth of the matter, however, is much more complex. China’s failure to heed U.S. demands to curtail oil imports and other economic ties to Iran can best be characterized as utilitarian and commensurate with the mutual anxieties that Beijing and Washington hold about each other.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Inside China, Inc: China Development Bank’s Cross Border Energy Deals

In 2009 and 2010, China Development Bank (CDB) extended lines of credit totaling almost $65 billion to energy companies and government entities in Brazil, Ecuador, Russia, Turkmenistan and Venezuela. The loans are secured by revenue earned from the sale of oil at market prices to Chinese national oil companies (NOCs), except in the case of Turkmenistan, which is delivering natural gas at undisclosed prices. These energy-backed loans (EBLs) are distinguished by their large size (up to $20.6 billion), long terms (up to twenty years), the relatively short period of time in which they occurred (over a period of less than two years), and their availability at a time when many companies were cancelling or postponing major investments in oil and natural gas development because of cash flow problems and virtually no other financial institutions were willing to lend such large amounts of capital for such long terms.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Addressing Large Developing Country Emissions: The case for strategic Sino-European Collaboration Under Joint Commitments

The objective of this Report is to explore the potential for addressing developing country greenhouse gas emissions at scale through bilateral ‘Joint Commitment Framework Agreements’ (JCFA). It focuses on the potential to reduce the growth of coal-based emissions in the Chinese power sector through large-scale collaboration between European and Chinese enterprises in the production of electricity from wind. The Report examines the proposition that under a Sino-European JCFA European companies will be more likely to collaborate with Chinese enterprises to transfer and develop low carbon technologies and know-how that will help to achieve jointly agreed carbon emission reductions in the Chinese power sector.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Asia’s Rising Energy and Resource Nationalism: Implications for the United States, China, and the Asia-Pacific Region

The 2011 Energy Security Report, “Asia’s Rising Energy and Resource Nationalism,” overviews the dramatic developments taking place in Asian energy markets and their geopolitical implications. The report includes an examination of the connection between energy insecurity and control of major sea lanes, the impact of Asia’s national oil companies on the global industry, and the emergence of rare earth elements as an arena for national competition.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Twenty-First Century Energy Superpower

If you want to know which way the global wind is blowing (or the sun shining or the coal burning), watch China.  That’s the news for our energy future and for the future of great-power politics on planet Earth.  Washington is already watching — with anxiety.Rarely has a simple press interview said more about the global power shifts taking place in our world.  On July 20th, the chief economist of the International Energy Agency (IEA), Fatih Birol, told the Wall Street Journal that China had overtaken the United States to become the world’s number one energy consumer.  One can read this development in many ways: as evidence of China’s continuing industrial prowess, of the lingering recession in the United States, of the growing popularity of automobiles in China, even of America’s superior energy efficiency as compared to that of China.  All of these observations are valid, but all miss the main point: by becoming the world’s leading energy consumer, China will also become an ever more dominant international actor and so set the pace in shaping our global future

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

European Business in China Position Paper 2009/2010 – Energy Working Group

The Energy Working Group comprises over 35 member companies with combined revenues in 2008 exceeding EUR 17 billion, total cumulative investment in 2008 of over EUR 18 billion, and collective employment of more than 100, 000 people in China in 2008. The largest European energy and equipment manufacturing companies as well as industrial energy consumers are active members of the Working Group. The Working Group seeks to establish an effective and constructive dialogue on energy policies with appropriate Chinese authorities, in order to:1) Provide input for energy policy work in China by sharing issues and concerns as well as sharing best practices of European energy industries operating in China; 2) Create fair and transparent conditions for competition between foreign and Chinese companies; and 3)Promote the development and integration of clean and renewable energies.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Promoting China-US Subnational Cooperation on Clean Energy Development Study of Policies on Energy Saving, and Renewable Energy in Guangdong Province and California

As the two largest emitters of greenhouse gases and two largest energy consumers in the world, joint action by China and the United States can make a tremendous contribution to addressing climate change and developing clean energy. Towards this end, the Global Environmental Institute (GEI) launched a “US-China Track II Dialogue on Climate Change.” project in December 2007. GEI facilitated two informal dialogues between senior advisors to climate issues of the two countries, and subsequently organized the Chinese government delegation to the “Governor’s Global Climate Summit 1” hosted in California. Following the summit, GEI encouraged high-level officials to carry out the diplomatic dialogue and sign the Memorandum of Understanding to Enhance Cooperation on Climate Change, Energy and Environment (MOU).

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

Changing Climates, Interdependencies on Energy and Climate Security for China and Europe

This project is an independent initiative of European and Chinese research institutions to facilitate further understanding of China-EU interdependence and the potential for collaboration on energy and climate security issues. The broad aims of the project are to identify the mutual interests, challenges and opportunities for China and the EU in energy security and climate security over the next 25 years; and to produce high-quality independent analysis on the priorities for future collaboration to meet both regions’ climate and energy security goals. Changing Climates is written by the project team of the Interdependencies on Energy and Climate Security for China and Europe. The analysis and findings from this report are drawn from over twenty separate studies prepared by researchers from Chatham House, CASS, ERI, E3G and IDDRI and other institutions.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector

China’s Search for Energy Security: Implications for U.S. Policy

China is rapidly emerging as a major force in both world energy markets and global energy geopolitics, and key aspects of China’s new global energy activities are creating new challenges for U.S.-China relations. This report examines China’s global search for energy security, draws implications for U.S. global energy and security interests, and recommends policies that will allow the United States to respond more effectively to China’s expanding global energy impact.

1 Energy and Climate, 1.3 China and International Relations in the Energy Sector