(June 16, 2014. Beijing)

Dr. Patrick Ho, Secretary General and Deputy Chairman of the China Energy Fund Committee, attended the Global Forum on Energy Security 2014 in Beijing on June 16. The Forum, co-organized by the Chinese Academy of Social Sciences, also featured the issuance of the latest volume of the “Annual Development on World Energy 2014”. During a round table session on Energy security and Policy in Asia and the Pacific, Dr. Ho gave a themed presentation calling for the establishment of an Asian Energy Cooperation Mechanism.

Dr. Ho pointed out a common energy conundrum faced by most Asian countries, especially developing nations. He cited a lack of access to modern energy infrastructure, a high dependence on energy imports, sensitivity of economies to fluctuations in energy prices and a lack of bargaining power in the energy trade as some of the major challenges faced by the region. These challenges have proven to be significant impediments to the development of Asia, and with the growth in scale of regional economies, the adverse effects of these problems are likely to become more prominent in the future.

A solution to this problem requires a joint effort among regional countries. However, looking at the existing platforms for energy cooperation, there are few that focus on serving the needs of Asian countries, and even fewer that have been able to offer a satisfactory course of action regarding the most pressing issues in the region. Furthermore, regional cooperation led by governments is often confined to a political dimension and has proven to be extremely hard to implement in reality.

Recognizing these challenges, Dr. Ho proposed the creation of a mechanism for closer energy cooperation in Asia, bringing together enterprises, civil society, think tanks as well as government officials to collaborate on the resolution of energy issues long-faced by the region. Core aspects of the proposed mechanism may include: the establishment of a strategic energy reserve to pool resources, improving regional energy security through a system of sharing and distribution; Integrating energy infrastructure within the region including the electric grid, providing greater flexibility in supply and demand; establishing an energy fund to promote the development of unconventional energy; forming a regional trading platform to coordinate oil contracts and prices; as well as promoting the use of Renminbi as the regional clearing currency for energy trade.

China Energy Fund Committee (CEFC) is a nongovernmental, nonpartisan Chinese think-tank registered in Hong Kong. It has Special Consultative Status with the United Nations Economic and Social Council (UN ECOSOC) and is dedicated to energy strategy research, energy and public diplomacy, as well as global energy cooperation and cultural exchange.