EU Council Presents Energy Diplomacy Action Plan
EU Energy Diplomacy Action Plan: Underlines Issues, Fails Giving Practical Guidance
European authorities acknowledged the importance of diplomacy for the realisation of its Energy Union project, reporting on Monday that the Council of the European Union is in favour of seeing a growing role of the High Representative Federica Mogherini, whom is called to strengthen strategic guidance on energy diplomacy.
‘EU policy objectives defined in the EU Energy Union should be supported by a coherent EU foreign and energy policy action, taking into account geopolitical developments’ the Council of the European Union wrote in its conclusions on Energy Diplomacy.
Member States are called to work with the High Representative and the Commission, which are asked to ensure the follow-up of the EU Energy Diplomacy Action Plan meant to diversify EU’s natural gas supply sources.
The Council also proposed a stronger collaboration with Mogherini’s team, which should engage in regular discussion not only with the Council, but with its relevant preparatory bodies too. The Council, which is the EU institution representing the member states’ executive governments, also outlined the key priorities for the follow-up of the Action Plan.
‘On diversification of sources, suppliers and routes: diplomatic support should focus on the Southern Gas Corridor, the Southern Caucasus and Central Asia; the strategic potential of the Eastern-Mediterranean region; the Euro-Mediterranean energy cooperation in the Southern Neighbourhood; the wider Middle East region; new energy sources in the Americas, Africa and Australia, including the potential of Liquefied Natural Gas (LNG)’ reads the document released on Monday.
The focus is mainly on general ideas, with little reference to specific countries. While not mentioning Libya or Egypt, the document briefly discussed the next moves with its Eastern partners.
FOREIGN POLICY, UKRAINE AND RUSSIA
According to the Council, foreign policy instruments should be used to open up opportunities for cooperation with producing and transit countries, including Ukraine. However, the document fell short of explaining how Mogherini could do so. It simply reported that the EU should ensure the long-term energy transit through Ukraine, reiterating the position expressed in May by Maroš Šefčovič, Vice-President of the European Commission (EC) in charge of Energy Union.
On the other hand, as reported by the System Development Map 2014 released by Entsog and GIE on Monday, Ukraine’s role as a transit country will shrink. According to the two organisations, the import capacity from Ukraine will decrease in the next 5 years by 2,678 GWh/d.
The Council conclusions are also vague with respect to Russia.
‘When the conditions are proper, the EU will proceed accordingly in reframing the energy relationship with Russia, based on a level playing field in terms of market opening, fair competition, environmental protection and safety, for the mutual benefit of both sides’ the Council said.
The organisation did not shed light on the timing nor the conditions that would allow Brussels to reconcile with Moscow. It only underlined that energy partnerships and dialogues should be coherent with foreign and external policy goals, including climate change.
‘Foreign policy efforts should also focus on creating business opportunities in and with third countries, including by raising the awareness of third countries to the EU's leadership in energy technologies and assisting in the promotion of export of energy technology and know-how, particularly safe and sustainable low-carbon technologies contributing to reducing greenhouse gas emissions of the world economy.’
At the moment, it seems clear that one of the main priorities is to strengthen ties with Georgia, which is a key player in the Southern Gas Corridor project.
“Georgia really matters a lot to us. Maybe Europe is not giving you everything you would like to get but it is nevertheless giving, especially when you compare Europe to others” Donald Tusk, President of the European Council, said on Monday following his meeting with the President of Georgia Giorgi Margvelashvili.
WHICH INSTRUMENTS?
According to the Council, European institutions could resort to financial resources such as the European Neighbourhood Instrument, the Instrument for Pre-accession Assistance, the Partnership Instrument and the Development Cooperation Instrument/Global Public Goods and Challenges.
Doing so, the European Union should also bet on multilateral energy institutions.
‘Particular support should be given to strengthening the existing multilateral energy institutions and initiatives with significant foreign policy impact. These efforts could include support to the modernisation of the Energy Charter, the association initiative of the IEA, the reform of the Energy Community, the further growth of IRENA as well as the relevant initiatives within the G7/G20 and UN (e.g. SE4ALL) frameworks including the post-2015 sustainable development goals.’
SO WHAT? MORE DETAILS WOULD BE WELCOME
This attempt seems to be a good proposal and it could potentially set the tone for further discussions. Europe’s diplomatic partners did indeed repeat several times they would prefer to deal with more agile and dynamic organisations, and the document goes in this direction.
“In certain areas where the EU is engaging with the rest of the world, these mechanisms, consultations should be speeded up so that you respond to the reality on the ground before it changes” Mehmet Öğütçü, chairman, Global Resources Partnership, recently told Natural Gas Europe.
The Council’s message remains one full of ideas, and perfectly depicts the complexities, but is not equally able to sketch out a practical strategy. In other words, despite a quick reference, the document did not clarify which should be the competences of the High Representative, and the European Commission.
‘The Energy Diplomacy Action Plan should be implemented by the High Representative, the Commission and the EU Member States, in accordance with their respective roles and mandates as determined by the Treaties,’ the 8-page note concludes.
Sergio Matalucci is an Associate Partner at Natural Gas Europe. He holds a BSc and MSc in Economics and Econometrics from Bocconi University, and a MA in Journalism from Aarhus University and City University London. He worked as a journalist in Italy, Denmark, the United Kingdom, and Belgium. Follow him on Twitter: @SergioMatalucci