Sunday, July 6, 2008

Weekend's Featured: EU Needs to End Its Energy Dependence on Russia

European Union Needs to End Its Energy Dependence on Russian Gas.

The European Union should free itself from its dependence on Russian gas by developing renewable and nuclear energy, the former head of the International Energy Agency told EU ministers Saturday.

"We need to give ourselves a flexibility that we are missing," Claude Mandil told the European bloc's 27 energy ministers at an informal meeting on the outskirts of Paris. "We need more energy efficiency, more liquefied natural gas, more renewable energy, more nuclear energy," he told the ministers, who are wrapping up a three-day gathering that also included environmental ministers.

Mandil, a French official who headed the IEA from 2003 to 2007, also said European nations had got themselves into an "awkward position" politically vis-a-vis their eastern neighbour. "We are horrified at the thought that there might be lack of Russian gas, that we won't be able to get it, and at the same time we are being very aggressive verbally to Russia. Let's stop provoking Russian sovereignty, claiming that we can dictate Russian behaviour on energy on their own territory," he said.

Against the backdrop of record energy prices, reducing the EU's dependence on Russian gas has become an major focal point in the bloc's foreign policy. Russia has on several occasions reduced or cut altogether gas supplies to its neighbour Ukraine, raising concerns in the EU countries about Moscow's reliability as an energy supplier.

The bloc has been busy since November 2006 working on an energy partnership with Azerbaijan, inking an accord with Kazakhstan, reviving relations with Libya and working on a deal with Algeria.

To date, however, most of these discussions remained stalled, according to energy analysts. Under current estimates, by 2030 the EU will not be able to avoid becoming more dependent on Russian gas, which already in 2005 accounted for 46 percent of their imports.

Mandil spoke at the invitation of French environment and energy minister Jean-Louis Borloo, who is chairing discussions Saturday on biofuels and energy efficiency. France took over the rotating, six-month presidency of the European Union on July 1. "Energy security cannot be separated from the combat against climate change and the demands for economic growth," Mandil said.

The European ministers have placed energy efficiency at the heart of plans to ease the soaring cost of fossil fuels and help meet the EU's goals on climate change. Mandil also pointed to sharply divergent energy portfolios among the bloc's 27 nations, and highlighted the need for a cohesive policy and "solidarity" within the EU.

"Any attack on the security of one of the members should give rise to a reaction from the Union as a whole," he said. "But solidarity does not mean that member states should not be responsible for their actions. You can't expect your neighbour to sort things out for you -- you have to do it yourself."

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