Following is the full text of the joint statement of the energy ministers of China, India, Japan, the Republic of Korea and the United States issued at their gathering in Beijing on Saturday:
Joint Statement of Energy Ministers
of China, India, Japan, Republic of Korea and the United States
Beijing, China on December 16, 2006
1. The energy ministers of China, India, Japan, Republic of Korea and the United States, which together account for nearly half of world oil consumption, met in Beijing, China on December 16, 2006 to discuss ways to promote energy security, stability, and sustainability. Energy is crucial to sustainable economic and social well-being in developed and developing countries. Our common challenge is to ensure sufficient, reliable and environmentally responsible supplies of energy with reasonable prices, as well as more efficient utilization of energy.
2. In recent years, fluctuations and increases in international oil prices have exerted a negative impact on the world economy, in particular for the developing countries. It is in this context that the energy ministers of the five countries held this meeting to review the world energy situation and the implications of increased oil prices on the global economy and to discuss cooperative efforts to advance: sufficient energy investment, energy conservation and efficiency, development of alternative energies and utilization of clean and efficient energy technologies, including those related to nuclear energy and clean coal and establishment of oil stockpiles. Our collective efforts are of great significance for the stability of the international oil and other energy markets and for enhancing global energy security.
3. We recognize that the reasons behind the oil price volatility are complex and manifold, including growing demand for oil, concerns over the adequacy of investment in oil production capacity in the long-term, current low levels of spare production capacity, refining capacity bottlenecks, prolonged political instability in some oil producing regions and market speculation.
4. We recognize that current high oil prices are affecting energy demand and investment. We affirm that market-based pricing helps send the appropriate signals for energy conservation and efficiency, and investment in conventional and alternative energies. We encourage investment based on market principles in oil and gas exploration and production so as to increase the supply capacity of oil and gas.
5. We recognize that China, India, Japan, Republic of Korea and the United States share common interests in the energy area. Our policies to accelerate the development and deployment of new energy technologies and improve energy efficiency will significantly enhance our energy security as well as global energy security. In order to strengthen our collective energy security, we agree to enhance our cooperation in the following areas:
i. Diversifying our energy mix to make wider use of clean and alternative energy, such as clean coal, nuclear energy and renewables, including in the transport sector. To this end, we will expand collaboration in research, development and deployment of alternative energy technologies such as clean coal, nuclear energy, renewables, hydrogen, bio-fuels, hybrid vehicle technologies and carbon sequestration.
ii. Improving energy conservation and efficiency, which provides cost-effective solutions to enhancement of energy security, reduces green-house gas emissions and helps attain sustainable development.
iii. Strengthening cooperation on strategic oil stocks to promote international energy security. Past experience has shown that international coordination, such as through the International Energy Agency (IEA), in response to significant supply disruptions benefits world energy markets.
iv. Improving transparency of data in the market through better sharing of information to enhance oil market stability. In this context, we welcome implementation of the Joint Oil Data Initiative (JODI) and will continue to provide timely market data on oil.
v. Encouraging extensive and in-depth cooperation among the business sectors of the five countries in areas including energy efficiency, alternative energies and transportation. In this context, we welcome the progress of the Asia-Pacific Partnership on Clean Development and Climate (APP) and the collaborative efforts it has catalyzed between the business and public sectors in diffusing clean energy technologies and best practices in energy intensive sectors.
6. We call on all countries of the international community to enhance global energy security through the following measures:
i. Open, transparent, efficient and competitive energy markets to encourage investment in the whole energy supply chain, especially in oil and gas exploration and production, including transparent and effective legal and regulatory frameworks.
ii. Diversification of energy supply and demand and energy sources.
iii. Promotion of energy conservation and energy efficiency measures as well as development and deployment of environmentally sustainable energy technologies.
iv. Cooperative energy emergency response through strategic oil stocks.
v. Safeguarding critical energy infrastructure and sea route security for transportation of oil and gas.
vi. Improved quality and timeliness of energy data made available to the market.