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The energy dialogue between the EU and Russia The Kyoto Protocol

The energy dialogue between the EU and Russia The Kyoto Protocol. EU-Russia Relationship A reminder. Initial phase 1991 : TACIS programme 1994 : Signature of the Partnership and Co-operation Agreement (PCA) Intensification

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The energy dialogue between the EU and Russia The Kyoto Protocol

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  1. The energy dialogue between the EU and Russia The Kyoto Protocol

  2. EU-Russia Relationship A reminder • Initial phase • 1991 : TACIS programme 1994 : Signature of the Partnership and Co-operation Agreement (PCA) • Intensification 1997 : Entry into force of the Partnership and Co-operation Agreement (PCA) : trade (WTO based, MFN trade rules), political dialogue, justice & home affairs (co-operation to prevent illegal activities, drugs, money laundering, organised crime), institutions. 1999 : EU Common Strategy on Russia : integration into a common European economic and social space. Russian Common Strategy towards the EU : construction of a Europe without dividing lines Northern Dimension : answer to the special regional development challenges of northern Europe. • Producing concrete results 2000 : Energy Dialogue launched - an important element in the concept of the.... 2001 : Proposal for a Common European Economic Space 2002 : « Wider Europe » initiative 2003 : Sankt Petersburg Summit : concept of four common spaces

  3. The four Spaces • Common Economic Space • Common Space of Freedom, Security and Justice • Common Space of Co-operation in the Field of External Security • Common Space of Research and Education

  4. The Common InstitutionsA reminder

  5. The Energy Dialogue EU-Russia • Where : The EU-Russia Summit in Paris • When : 30th October 2000 • Nomination of two sole interlocutors : Mr François Lamoureux, Director General of the European Commission and Vice-Prime Minister of the Russian Federation, Viktor Khristenko • Objectives • progress in the definition of an EU-Russia energy partnership, • contribute to the security in energy supply as well as in energy demand, • cooperation on energy saving, • rationalisation of production and transport infrastructures and importance of electricity interconnections, • facilitate investments, • contribute to the relations between producer and consumer countries, • support the Energy Charter Treaty • contribution to the ratification of the Kyoto protocole

  6. The Climatic Contrast It gets colder from West to East not necessarily from South to North Source : The Siberian Curse, Fiona Hill and Clifford Gaddy, Brookings Institution Press, 2003.

  7. Difficult Demographics

  8. Ricardo law of comparative dis(advantages)

  9. Energy production (Mio toe) Russia Europe (EU-25) 1000 1800 900 1600 800 1400 700 1200 Renewables 600 1000 Nuclear 500 Gas 800 Oil 400 Coal 600 300 400 200 200 100 0 0 1990 2000 2010 2020 1990 2000 2010 2020 Sources: Russian Federation: 2003 Russia’s Energy Strategy until 2020, European Commission.

  10. Energy Security:Energy imports and exports (in mtoe) EU Energy Imports Russian Energy Exports Sources: Russian Federation : Russia’s strategy until 2020, European Commission : trends to 2030

  11. The importance of the European marketGAZPROM Sales and Receipts Gas volumes Receipts from gas sales Europe and others 37 % Russia 35,5% Europe andothers64,5 % Russia 63% Export price to Europe $ 130 / 1000 m3 Domestic price to households $16 / 1000 m3 Domestic price to industry $ 23 / 1000 m3 Required price to finance investments 2006 : $ 41/1000 M3 2010 : $ 62-70/1000M3 Sources : IEA, European Commission, Gazprom

  12. Electricity production by fuel EUR 25 Russia Sources : Russian Federation : 2003 Russia’s Energy Strategy until 2020, European Commission : Trends to 2030

  13. Nuclear power plants : production capacity in Gwe (2000 – 2020) Russia Sources USEIA; Minatom; Russian Federation : 2003 Russia’s Energy Strategy until 2020; European Commission : Trends to 2030.

  14. Nuclear power plants : load factor Source : Minatom

  15. Energy Intensity Natural Gas Electricity Koe per Euro of GDP 1,2 KWh/ Euro of GDP 3,5 Russia EU Russia EU 1 3 0,8 2,5 2 0,6 1,5 0,4 Adj. PPP 1 0,2 Adj PPP Adj PPP 0,5 Adj PPP 0 2000 2020 0 Sources: Russian Federation : Russia’s strategy until 2020, European Commission : trends to 2030 2000 2020

  16. Potential for Energy Conservation in Russia A. Mastepanov, Ministry of Energy, Russian Federation

  17. CO2 Emissions(million tonnes)

  18. Russia Energy SectorInvestment requirements Total requirements 2003-2020 € 715 thousand million Sources : Russian Federation : Russia’s Energy strategy until 2020 and European Commission.

  19. Why should Russia ratify • The Kyoto protocol is not a constraint on Russia’s economic growth - Russia will most likely still be below its 1990 level in 2020. No doubt that it will meet its obligations; - Huge potential for energy conservation; - Emission trading will benefit Russia as will Joint implementation. • Ratification by Russia of the Kyoto protocol will enable its entry into force and contribute to confirm the role of Russia as a global and responsible player in the environmental field. • Ratification will be welcomed by developing countries that expect vast investments through the Clean Development Mechanism.

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