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Analysing the international energy situation involves examining various stakeholders’ initiatives, systems, frameworks, management and governments to deal with cross-border global problems. This is particularly pertinent for global governance on energy issues.
Where there are many differing concepts relating to global governance, no one single model or framework has proven to be adequate or sophisticated in addressing the myriad of complex global energy problems.
International negotiations on reducing greenhouse gas emissions is one archetypal example of how governance is inadequate in reconciling conflicting national priorities, and aligning strategic interests to reach a consensus on the target beyond 2020.
In reviewing the international energy market stability in relation to governance, the report puts into question, who would govern and manage international energy markets? The International Energy Agency (IEA) was founded and tasked to take on the challenge of tackling oil market stability during the oil crisis of 1973 – 74. Mechanisms which were created close to 4 decades ago to stabilise the international oil market, have proven to be irrelevant and inept in today’s global oil market. The outlook today is totally different from yesteryears, with non-IEA countries such as China and India expanding their share of the global oil market to a level exceeding the shrinking share for the IEA countries.
The report noted, “Among the mountain of energy problems and challenges, we now see many global governance challenges including stable supply and security in the expanding gas and LNG market as well as the oil market, and the three S’s (safety, security and safeguard) for nuclear energy. What mechanisms, systems or initiatives would be required to tackle these global problems? What should Japan do to solve them? We must consider answer to these questions.”
The full report is available here
By : EMA