The decision of the Government of Afghanistan to seek a closer association with the Energy Charter is part of a broader effort to promote greater regional economic cooperation in Central and South Asia. Afghanistan imports electricity from neighbouring countries, and is looking to expand this regional trade; it also has potential as a transit country for exports of natural gas from Central Asia to the growing markets of South Asia. A Conference on regional cooperation took place in Kabul on 4-5 December 2005, co-chaired by Afghanistan and the United Kingdom, and attended by representatives from neighbouring countries, the G8, the United Nations and international financial institutions. The ‘Kabul Declaration on Regional Economic Cooperation’, adopted at the conclusion of this Conference, encouraged Afghanistan to consider joining the Energy Charter.

Afghanistan’s application to become an observer to the Energy Charter was approved by the Energy Charter’s governing body, the Energy Charter Conference, in July 2006. As an observer, Afghanistan will be entitled to attend all meetings of the Energy Charter Conference and its working groups, and to receive all related reports and analysis.