Secretary-General of the Energy Charter: China's energy transition will affect global energy prices and consumption

Urban Rusnak, who has been to China for more than ten times, is familiar with the energy situation in China. As the secretary general of the International Energy Charter Organization, when he was interviewed by the China Energy News reporter, he first stated that China has become an important oil company and Natural gas importing countries are playing an increasingly important role in the international energy market. In 2015, China has become an observer of the International Energy Charter and hopes that China will join the organization as soon as possible.

Rusnack believes that as China's international influence in the energy sector increases, China’s energy policy decisions have a significant impact on the global energy market. 'From coal, oil, natural gas to renewable energy, with the economic structure of China's Transformation and development, the quantity and structure of all kinds of energy consumption have also changed, and will in turn have a negligible impact on the global energy system. 'He said: 'How China will achieve energy transformation will affect the global price trend and consumption of major energy sources. Quantity and research direction. '

Rusnack also gave an example: 'China's energy demand will affect the layout of international energy investment. The innovation and application of new energy technologies in China is leading the international energy technology direction. China also needs to obtain sufficient resources to maintain the pace of development. And quality, therefore, whether it is to ensure its own development or maintain the stability of the international energy market, China needs to actively participate in international energy governance.

For international energy cooperation under the 'One Belt and One Road' initiative, Rusnak believes that China’s energy cooperation with countries along the route should be technically and economically feasible, and it must also ensure that risks are reduced in the legal system. The Energy Charter Organization can provide specific regulations for energy investments, provide dispute resolution mechanisms for energy investment and cross-border arbitration, and also help promote the investment of foreign capital in China, especially in renewable energy.

Rusnack also emphasized that energy transit includes complex political, economic, and legal issues. The Energy Charter Treaty is the only multilateral agreement in this area. He cited China-Central Asia Gas Pipeline as the longest in the world. The pipeline, the signing model for gas supply contracts, and dispute resolution mechanisms with transit countries, China is exploring better ways. One of the purposes of the Energy Charter Treaty is to promote the free trade of energy and eliminate trade. Barriers, prohibiting the cutting off of energy flows.' Rusnak said.

For the gas shortage experienced by China a few months ago, Rusnak said that seasonal fluctuations in China's natural gas demand are large, and the degree of interconnection of domestic natural gas pipelines is lacking. In addition, in cold winter, gas source countries must first consider their livelihood. Gas supply, so to avoid the recurrence of gas shortages, China must enrich its gas resources. To strengthen domestic gas pipelines and gas storage capacity, it is necessary to join international organizations that are legally binding to ensure the reliability of energy transit.

The International Energy Charter has 54 member states and 41 observer countries. The international organization is based on the "Energy Charter Treaty". The contents of the Energy Charter Treaty include all economic activities in the energy sector. All energy products, including electricity, are included. Exploration, mining, production, storage, transportation, transmission, distribution, trade, marketing, sales, etc.

The "Energy Charter Treaty" aims to guide and regulate the proper handling of energy issues among member countries and to promote a truly open, equal and relatively stable international energy market. The organization's secretariat is located in Brussels, Belgium.

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