Research On The Energy Charter Treaty Under The Multi-level Government View

This paper analyses the Energy Charter Treaty with the Theory of Multi-level Governance. The Energy Charter Treaty started in the 1990’s. After the drastic changes in Eastern Europe and the disintegration of the Soviet Union, the European Communities proposed to create a "European Energy Community", out of consideration for stabilizing the former communist states’ political and economic situation, and securing the security of energy supply. After more than one year’s work and negotiation,53 countries signed policy declaration:the European Energy Charter in 1991. In order to give the Energy Charter legally binding documents, and form an open, competitive and efficient energy market legal framework, the Energy Charter Treaty’s negotiation was placed onto committee. The negotiation which lasts almost three years was started in January 1992. The Energy Charter Treaty and the Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA) were formally signed in Lisbon on 17 December 1994. The Energy Charter Treaty entered into legal force on 16 April 1998. In this paper, I will analyze the Energy Charter Treaty with multi-level analysis major from international, regional(EU) and national level. The Energy Charter Treaty is not only conducive to the promotion of international energy cooperation and energy market’s stability, but also conducive to EU’s security of energy supply. But to the energy importing countries and exporting countries, the Energy Charter Treaty’s meaning is different. The Energy Charter Treaty is more conforming to the energy importing countries’benefits, and is welcomed by them. But it is unfavorable to the energy producing and exporting countries, so they are negative to the Energy Charter Treaty.At the international level, the Energy Charter Treaty is conducive to the promotion of international energy cooperation and energy market’s stability. In the present world, the game between the energy producing countries and consuming countries is becoming more and more intensive, the cooperation between them is also becoming more and more closely. The international energy market’s supply-demand relationship’s continuous conversion affects the energy producing countries and consuming countries’mutual-status. The energy producing countries and consuming countries built certain number of international energy organizations to protect and broaden themselves’benefits. The energy exporting countries established OPEC, and the energy importing countries created IEA. Besides, there is the International Energy Forum (IEF) which is a global energy dialogue between the energy producing countries and consuming countries. Such organization’s occurrence encourages the international energy’s cooperation, and is conducive to international energy market’s stability from the long run. The Energy Charter Treaty was making a brave attempt to promoting the international energy cooperation. Compared to above mentioned international energy organizations, the Energy Charter Treaty Organization is different because it is an organization included energy producing countries and consuming countries, and legally binding energy multilateral treaty. The Energy Charter Treaty Organization is positively attracting international energy market’s producing countries, consuming countries and transit Countries, in order to promoting the energy field’s long-term cooperation with a complementary and mutual benefit foundation, and build an open, non-discriminatory international energy market. The Energy Charter Treaty has a positive meaning to promoting international energy market’s stability, and is a milestone for the international energy cooperation.At the EU level, the Energy Charter Treaty is conducive to encouraging the former communist states’political and economic transformation. At the same time it is conducive to EU’s security and stability of energy supply and supporting energy enterprises access to Eastern energy resources and markets. Therefore, EU proposed the Energy Charter Treaty positively, and played a dominant role in the Energy Charter Treaty’s negotiation process. In June 1990, the Dutch Prime Minister Ruud Lubbers proposed to create a "European Energy Community", and was positively responded by the European Communities’member countries. Under the European Communities’domination, negotiating parties reached an agreement about the Energy Charter’s content in 1991 and signed it in December. In order to give the Energy Charter legally binding documents, the EEC launched the Energy Charter Treaty’s negotiation. In the negotiation process, the argument between energy importing countries and exporting countries, and the former Soviet bloc would not be able to sign up the Energy Charter Treaty because of lack of necessary economic and legal framework were presenting huge obstacles to the negotiation. EU made a series of diplomatic efforts to finalizing the Treaty negotiation as soon as possible. Owing to EU’s great efforts, the Energy Charter Treaty was endorsed by 42 negotiating parties on 17 December 1994. The signing of the Energy Charter Treaty raised EU’s status and role in international affairs. The more important thing is that the Treaty has positive meaning in securing the security of EU’s energy supply.At the national level, different countries’attitude towards the Energy Charter. Treaty is different because of their different energy situation. This paper picked four representative selections of the energy producing countries and consuming countries France, Norway, Russia and USA, and analyzed their different position and attitude. France is energy importing country, Norway and Russia are energy exporting countries, and the USA is both important energy producing country and consuming country which have super-force. France is a developed industrial country which lack of energy resources, and needs to import considerable oil and gas, so it has a welcome attitude to the Energy Charter Treaty. France took part in the Energy Charter Treaty negotiation positively, and signed the Energy Charter Treaty in December 1994. Norway is rich in oil and gas resources, and is an important oil and gas exporting country. The oil and gas industry’s income owns a great share in Norway’s national income. So Norway had a hard-line stance in the Energy Charter Treaty negotiation, and protected its energy sovereignty and benefit firmly. Norway kept a position of reserve to the final Energy Charter Treaty text. Although Norway signed the Treaty in 1995, but it didn’t ratified the Treaty all the time. Russia has abundant energy resources, and its attitude to the Energy Charter Treaty changed with its own economic situation’s and international energy situation’s change. When the "Lubbers Plan" was proposed, the USSR trapped in economic depression. The USSR urged to importing western capital and technology to develop their energy industry, and increasing exports to exchange foreign exchange. So the USSR accepted this proposal. The later independent country Russia signed the European Energy Charter, and took part in the Energy Charter Treaty negotiation. In the negotiation process, Russia protected its energy sovereignty and benefit positively. But Russia’s priority aim was to attract foreign investment to assist with modernization and development of their energy sector, so Russia had to make great concession. Russia signed the Energy Charter Treaty in 1994 and agreed to provisional apply the Energy Charter Treaty. But with its economic situation gradually improving, Russia’s attitude towards the Energy Charter Treaty became more and more negative.In 2009, Russia clearly refused to ratify the Energy Charter Treaty. The USA is important energy producing country and important consuming country, at the same time it’s the sole superpower in the world. So the USA owns considerable influence to the international energy market. In order to prevent Western Europe through the Energy Charter monopolizing the access chance to Eastern resources and markets, the USA participated in the Energy Charter Treaty negotiation. But because of the Energy Charter Treaty didn’t reach the US bilateral investment treaties’standard, the USA didn’t sign the Energy Charter Treaty, and through other manners to protect its energy security and benefit. Generally speaking, the Energy Charter Treaty is more conforming to the energy importing countries’benefits, and is welcomed by them. But the Energy Charter Treaty is unfavorable to the energy producing and exporting countries, so they are negative to the Energy Charter Treaty.At the Sub-national level, energy companies thought the Energy Charter Treaty’s signals are encouraging in general, but in some specific point are a little mixed. The Treaty’s direction to establish a marker based international energy framework and the East-West dialogue opportunity provided by the Treaty negotiations are welcomed by the energy companies. The non-discriminatory treatment principle, the compensation and expropriation provisions embodied by the Treaty conform to the energy companies’benefits. But the energy companies are fundamentally disappointed to the Energy Charter Treaty fail to make National Treatment at the pre-investment stage become compulsory obligation. About transit issues, the energy companies worry its practical results. Investors also think that the Treaty may be tilted too far towards state interests and against optimum conditions for private investment. The energy companies hope the Energy Charter Treaty can align with wider trade liberalization under the WTO, and retain US engagement in the Energy Charter Treaty process. The Energy Charter Treaty shouldn’t come to represent an obstacle to the free flow of capital. The energy companies also concern about the possibility that the Energy Charter Treaty and the institutions established by it may increase the bureaucratic burden on the international energy industry. But the energy companies’most concerned issue is what difference the Treaty might make in practice to their prospects in the former Soviet Union and Eastern Europe. The attitude of non-energy companies, consumers and other organizations about the Energy Charter Treaty aren’t discussed in this paper because of lack of data.This paper collects and analyses interrelated original data and research achievements, and analyses the Energy Charter Treaty through multi-level. This paper attempts to interpret the Energy Charter Treaty through different points of view and deep-level, restitute the Energy Charter Treaty’s background and negotiating process, elaborate the different body’s different attitude toward the Energy Charter Treaty, and analyze the Energy Charter Treaty’s meaning to different levels. Based on the analyses, this paper attempts to explore the Energy Charter Treaty’s meaning to promote the energy cooperation and protect the energy security; and predict its prospect; and provide some useful experience to China make energy policy and strategy, participate international energy cooperation, expand relation with the Energy Charter Treaty.