China National Petroleum Corporation (CNPC) hosted the Energy Charter Industry Advisory Panel (IAP) meeting in Beijing to discuss energy investments and transit in the One Belt One Road initiative in the light of the Energy Charter Treaty.
Further to China’s signature of the International Energy Charter in The Hague last May 2015, China National Petroleum Corporation (CNCP) hosted the meeting of the Energy Charter Industry Advisory Panel (IAP) on 21 July 2015 in Beijing. Participants included representatives of IAP members as well as the representatives of invited companies such as China National Offshore Corporation, DNG VL, International Green Economy Association, Petrobras, Vestas Wind.
Mrs Ying Pei, Deputy Director General of the International Department, opened the meeting together with Mrs Cao Wei from the Ministry of Foreign Affairs and Mr Tian Ya from the Ministry of Commerce.
As an energy investor, CNPC clearly sees the need for investment protection and for safe transit in the One Belt One Road (OBOR) region and beyond. CNPC takes IAP membership as an opportunity to raise the profile of the Energy Charter among other energy investors and with the government.
Energy Charter Secretariat Director Mr Steivan Defilla gave a keynote presentation on the ongoing modernisation of the Energy Charter Process. At the time of economic and energy transition in China, expanding outward and inward foreign investments (respectively of 100 and 20 millions USD) require China's involvement in global energy governance as demonstrated by the signature of the International Energy Charter.
Dr Matteo Barra gave an overview of the energy disputes in Central Asia where the Energy Charter Treaty was invoked for the protection of investments. The lessons learnt point at the Energy Charter Treaty as a powerful instrument to give redress to frustrated investors and to scrutinise host state energy law and policy with a mindful balance between the rights of the investors and the sovereign powers of the Host States. Mr Ningke Peng, Director of International Governmental Affairs at the Dow Chemical Company, illustrated the interest of a major industrial user in the energy sector of China. Mrs Selina CHANG, Head of Public Affairs China at Vestas China, presented the challenges and opportunities in the renewable energy sector of China. The discussion emphasised the interest in disseminating knowledge on the practice of investment dispute settlement under the Energy Charter Treaty and in the Energy Charter Treaty as an instrument for building market confidence and regulatory stability in the energy sector.
The second session was opened by Mr Chunyu Hu, Director Planning Department at Trans-Asia Gas Pipeline Company Ltd., with a presentation on energy transit projects between China and Central Asia and in particular of the Central Asia Gas Pipeline. Mrs Han Wang, NEA secondee to the Energy Charter Secretariat, illustrated the transit provisions in the Energy Charter Treaty and the negotiations of the Energy Charter Transit Protocol. Mr Zhuwei Wang gave concrete recommendations supporting a stronger engagement of China towards accession to the Energy Charter Treaty.
Finally the IAP members and invited guests discussed proposed activities to implement the recommendations expressed by Mr Nuer Baikeli, Vice Chairman of the National Development and Reform Commission and of the National Energy Administration, requesting to enlarge the communication and cooperation between the Energy Charter and the Chinese energy enterprises. The participants suggested to discuss a concrete proposal for IAP activities in the region at the next meeting on 8 October 2015 in Brussels.
The meeting was concluded with the reading of a statement by the IAP members and the invited guests welcoming the participation of Chinese companies in its activities, and encouraging a closer relationship between China and the Energy Charter towards the implementation of the principles of the International Energy Charter and of the Energy Charter Treaty.