Futures of energy in Eurasia in a global context. 4th Workshop Report.

• Main Authors: Vinokurov, E., Balás, P., Emerson, M., Havlik, P., Pereboev, V., Rovenskaya, E., Stepanova, A., Kofner, J., Kabat, P.
• Format: Conference Object
• Language: English
• Published: 2016
• Subjects: Arctic; Climate change
• Online Access: http://pure.iiasa.ac.at/id/eprint/13966/; http://pure.iiasa.ac.at/id/eprint/13966/1/Futures%20of%20energy%20in%20Eurasia%20in%20a%20global%20context.pdf

The 4th workshop within the IIASA project “Challenges and Opportunities of Economic Integration within a Wider European and Eurasian Space” held on 12-13 May, 2015 in Laxenburg, Austria delivered the latest insights into the risks, uncertainties, trends and opportunities around energy trade and energy security of the EU, EAEU and neighboring countries. The discussions focused mostly on natural gas covering conventional, LNG and shale gas, on nuclear energy, as well as on the potential for a common electricity market between some EU, EAEU and neighboring countries. To foster interdisciplinary and international dialogue on the topic, the workshop invited distinguished academics and policymakers from around the world, including Tair Mansurov, Member of the Board – Minister in charge of Energy and Infrastructure, Eurasian Economic Commission; Péter Balás, Deputy Director General, DG Trade, European Commission and Head, Support Group for Ukraine; Jean-Arnold Vinois, European Commission Directorate General for Energy; Pavel Kabat, Director General and Chief Executive Officer, IIASA; Evgeny Vinokurov, Director, Centre for Integration Studies, Eurasian Development Bank; among many others, with a total of 48 participants. The participants had impassionate exchanges over sometimes rather different views, yet they were able to concur on a number of points. This demonstrates the value of IIASA as a platform for open exchange of views between European and Eurasian experts and policymakers on currently controversial issues in the context of Euro-Eurasian economic integration. Selected Seminar Highlights: During the course of the seminar, the experts brought forward the following proposals: • Creation of a common EU - EAEU electricity market could be useful, since it could stimulate large-scale construction of various types of generation assets in the Kaliningrad Region and in Belarus (nuclear, hydro and thermal power stations), that could provide power to Poland, Lithuania and other neighboring countries. • Euro-Eurasian energy cooperation could be enhanced on the basis of the Energy Charter Treaty (1998) mechanism (although in case of Russia only if it decides to revise its earlier decision to leave the Treaty). • Development by the Eurasian Economic Commission of a common Emissions Trading System (ETS) in line with EU norms can help increase compatibility in the future thus enhancing prospects of a common EU - EAEU emission inventory market. • Joint development of the Arctic shelf can be a promising and prestigious long-term project of economic and investment cooperation between the EU and Russia. • Commitment towards the work of the EU - Russia Gas Advisory Council and the “EU-Russia Gas Cooperation Roadmap till 2050” could be increased by both – Russia and the EU member states. • An international gas research cooperation program between the European Commission and research institutes of different regional players (not only Russia) could be established which might help gaining objectivity and transparency on forecasts in the gas market. • The repeated gas supply crises between Russia and the EU over supply to and transit via Ukraine make the efforts on maintaining cooperation and dialogue between the two even more important. • Despite the fact that Ukraine intends to integrate its energy system into the European Network of Transmission System Operators for Electricity (ENTSO-E), maintaining interconnections with the Russian and Belarusian electricity grid can help them decrease electricity price inflation during the transition period. • Energy efficiency in the Ukrainian household sector is a topic of joint interests and needs. Participants of the seminar proposed cooperation between the Eurasian Economic Commission and the respective Ukrainian research institutions for comparing approaches being adopted both in Ukraine and by the member states of the Eurasian Economic Union. • IIASA’s role as a platform for discussing energy matters between the EU and Russia/EAEU as equals can be crucial. Seminar Focus Areas: During the workshop the participants came to distinguish six game changers that currently affect Euro-Eurasian energy relations and policies. 1. Gas supply diversification of the European market and the rise of shale and LNG 2. Two cornerstones of the EU energy policy – anti-monopoly and supra-national regulations 3. Prospects and implications of energy efficiency improvements and climate change targets across the region 4. Local and regional effects of the Ukrainian crisis onto Euro-Eurasian energy relations and policies 5. Perspectives of the new energy deals between China and Russia 6. Perspectives of EU - EAEU energy market integration