Energy Cooperation under the Greater Tumen Initiative (GTI) ZHU Shu GTI Secretariat/ UNDP

Supported by United Nations Development Programme
Energy Cooperation under the
Greater Tumen Initiative (GTI)
ZHU Shu
GTI Secretariat/ UNDP
ESCAP North-East Subregional Consultation Meeting
12-13 November 2012
Outline
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Greater Tumen Initiative
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Past Energy Cooperation under TRADP
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Energy Cooperation under GTI
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The Way Forward
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Greater Tumen Initiative
The Greater Tumen Initiative (GTI),
originally known as the Tumen River Area
Development Programme (TRADP), is an
intergovernmental economic cooperation
mechanism in NEA, supported by the
UNDP, with four members*: China,
Mongolia, ROK and Russia.
* DPRK withdrew from GTI in Nov. 2009.
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GTI- a multilateral platform for economic cooperation in NEA
Vision - Building a great partnership for common prosperity between neighbours
An active catalyst for expanding policy dialogue and strengthening foundations for
economic growth in NEA and specially the Greater Tumen Region
A member-country driven partnership supported by the UNDP (from TRADP to GTI)
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Greater Tumen Initiative
 Priority sectors of GTI cooperation
• Transport, Tourism, Trade & Investment, Energy and Environment
 Priority projects & activities
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Environment
policy dialogue and advisory (CC)
capacity building for regional stakeholders
Tourism
Trade &
research & studies in priority areas
Investment
knowledge and experience sharing in NEA (NEA Forum, LDF) Transport
 Major progress
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development of institutional capacity (institutional structures)
implementation of priority projects in the five sectors
improvement of regional policy environment for economic development
creation of a strong partnership network (UN agencies, ADB, GIZ, EXIM banks, local
governments, private sector, etc)
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Greater Tumen Initiative
(Institutional Structure)
NEA Local
Cooperation Committee
GTI Consultative Commission
(Vice-Minister level)
GTI members + Japan, DPRK
China: Ministry of Commerce
ROK: Ministry of Strategy and Finance
Mongolia: Ministry of Finance
Russia: Ministry of Economic Development
National Coordinators
Transport
Board
Trade
Facilitation
Committee
NEA EXIM Banks
Association
Tumen Secretariat
Business Advisory
Council
Tourism
Energy
Environmental
Board
Board
Board
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Past Energy Cooperation under the TRADP
 TRADP Working Groups were established at 5th TRADP Consultative
Commission meeting (HK, Apr. 2001); the priorities of Energy WG are
• policy formulation (regional energy policies and implementation plans)
• establishment of an institutional framework for energy cooperation in NEA
• reduction or removal of non-physical barriers to energy trade in the region
• 1st Energy Working Group Meeting (Beijing, March 2002) generated a
range of Project Proposals:
- Information Sharing and Gradual Harmonisation of Energy-Related Legislation in NEA
- Sharing, Compilation and Dissemination of Existing Energy Research
- Human Resource Development in the Energy Sector
- Study on the Removal of Non-Physical Barriers to Energy Export-Import Operations
- Capacity Building for the Natural Gas Research Society of DPRK
- Preparation of Master Plan for LPG Utilisation in Mongolia
- Baseline Study for Energy Cooperation
• However, no budget allocated for the energy sector under Phase III of the TRADP.
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Past Energy Cooperation under the TRADP
 Project implementation: Baseline Study for Energy Cooperation in NEA
- Endorsed in Dec. 2002 with the budget estimated at $250.000;
- Mid 2003: ROK agreed to finance this project by ROK-UNDP Trust Fund;
- Capacity Building component for DPRK and Mongolia was included in this project;
- Mid 2004: Korea Energy Economics Institute (KEEI) drafted project documents: purpose of this
project is to identify collaborative opportunities among NEA countries and provide policy
recommendations;
- May 2005: KEEI was selected as a contractor for the research section of this project
• Research component:
- Final Study Report was circulated to the GTI member countries in Oct. 2007;
•Capacity Building component:
- 2006: training program for DPRK from 30 May to 17 Jun. in Beijing and 11 to 19 Jul. in
Pyongyang (Implementing Agencies: Renmin University and Energy Research Institute, China);
- 2008: training program for Mongolia – from 17 to 21 March in Seoul and 25 April in Ulaanbaatar
(Implementing Agency: KEEI);
• This project with several extensions was eventually completed in Apr. 2008.
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Energy Cooperation under the GTI
(GTI’s Mandate in Energy Sector)
• In the (revised) GTI Strategic Action Plan (2012-2015), the Objectives
for GTI energy cooperation are
Establish an institutional framework for consultations and policy support at the level of the
member governments. This framework should provide an opportunity for a full exchange of
information among member governments and the private sector and lay the basis for reducing or
removing non-physical barriers to energy trade in the Greater Tumen Region (GTR)…
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Develop the GTI Energy Board as an effective cooperative mechanism for coordinating
energy policies in the region;
Create a cooperation network among governments, the private sector, think tanks, financial
institutions, etc for knowledge sharing and partnership; (e.g. NEA Energy Forum)
Promote human capacity building on energy through the organisation of education and
training programmes, joint studies and workshops;
Support transparency in the institutional environment to reduce non-physical barriers; and
Develop a GTR region-specific database on energy resources, and supply and demand to
share information among regional stakeholders.
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Energy Cooperation under the GTI
(Establishment of the GTI Energy Board & Expert Council)
Council
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After all preparatory work (2005-2007), the GTI Energy Board was officially
established at the 9th Consultative Commission Meeting (Vladivostok, Nov. 2007);
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Purpose: contributing to the improvement of energy security in the GTR through
regional energy cooperation and provide a solid foundation for better overall energy
planning in the region
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Objectives: reviewing proposals and making recommendations to GTI Consultative
Commission on the following
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promote the earliest introduction of new energy resources for the GTR
assist development and utilization of alternative energy sources
help the solution of energy efficient consumption and energy saving problems
lay the ground for reducing or removing non-physical barriers to energy trade
help accelerating the development of energy-related infrastructure
provide options of energy supply for the existing and new industrial zones
help the earliest introduction of multilateral energy cooperation for GTI areas
GTI Energy Expert Council: a non-executive organ to offer professional advice to the
Energy Board, currently consisting of 9 renowned energy experts from regional & intl institutes
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Energy Cooperation under the GTI
(Establishment of the GTI Energy Board & Expert Council)
Council
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Inaugural Meeting of the Energy Board concluded in Sept. 2009 in
Ulaanbaatar (back-to-back with ESCAP ECNEA meeting)
- only Russian and Mongolian Board members participated (China remain absent in the EB);
- composition of the Energy Expert Council for 2009-2011 was approved;
- a number of energy projects proposed and reviewed;
- draft GTI Energy Action Plan for 2010-2012 reviewed.
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Energy Cooperation under the GTI
(GTI Energy Action Plan 2010-2012)
• Ongoing Activities
1. Capacity Building – Establishment of the GTI Energy Board (established)
2. Capacity Building – Training Programs for the GTI member countries
3. Study on Reduction of Non-Physical Barriers to Energy Cooperation in NEA
• New Activities
1. Promotion of Energy Investment Projects in the GTR
-e.g. Tumen River Area Power Transmission “Ring”
2. NEA Energy Database and Regular Energy Overview/Statistical Yearbook
3. Creation of the Energy Forum for Northeast Asia
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Energy Cooperation under the GTI
(GTI Capacity Building Training Program on Energy - 2010)
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Focus: Energy Efficiency Improvement & Renewable Energy Development
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Objective: assist GTI member countries in developing and implementing
national energy policies aimed at energy efficiency enhancement and
renewable energy utilization
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The training programme was aimed at the following tasks:
 share information and best practices among GTI government officials on the policies to
promote energy efficiency and renewable energy
 enhance practical knowledge on the potential policy improvements in the related field of
energy policy
 strengthen collaboration among government officials involved as well as expand networks
with relevant international experts
 identify and discus possible areas to further the regional energy cooperation on energy
efficiency and renewable energy promotion
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Energy Cooperation under the GTI
(GTI Capacity Building Training Program on Energy - 2010)
Workshop (11 - 13 Oct.)
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National Policy to Promote Energy
Efficiency and Renewable Energy
Energy Efficiency Performance across
Different Economy Sectors
Renewable Energy: Policies and
Technology Issues
International Cooperative Activities to
Promote Energy Efficiency and Renewables
Field Trips (13 -15 Oct.)
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Gas Science Museum (13th afternoon)
LNG Regasification Terminal (13th
afternoon)
LFG Power Plant (14th morning)
Wind Power Plant (15th morning)
Shiwha Tidal Power Plant (15th
afternoon)
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Energy Cooperation under the GTI
 Challenges for Energy Cooperation
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Regional context in NEA (disputes and mistrust, varying economic and
political systems, different priorities, competition, etc)
Low level of political will and commitment for multilateral cooperation on
energy (membership, bilateral > multilateral)
Duplication between existing multilateral energy platforms
Involvement of Japan and re-engagement of DPRK
Lack of sustainable project funding and resources for activities
National/ inter-national vs. local (energy services)
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The Way Forward
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Recommendations for effective energy cooperation in NEA
• Continuously encourage high level political support and commitment
(membership, level of participation, domestic coordination, etc)
• Study national strategies and identify priorities of multilateral cooperation
critical and acceptable for NEA states based on consensus (prioritizing
cooperation areas, such as energy efficiency, trade, infrastructure, etc),
complementing bilateral cooperation
• Review the current capacity and resources, and develop practical
activities less politically sensitive, in order to (step-by step) building
confidence and maximizing mutual benefits for NEA states (e.g.
continuous less sensitive/ “sift” activities such as capacity building the
governments and practitioners, and knowledge sharing activities among
stakeholders)
The Way Forward
 Recommendations for effective energy cooperation in NEA
• Enhance the efficiency of and coordination between existing
mechanisms that have similar mandates to combine strengths to reduce
duplication (e.g. reinforcing partnerships & exchanges, conducting join
projects, and coordinating each other’s priorities)
• Create an NEA Energy Forum for dialogue, knowledge sharing and
promotion (investment, public education, etc) among the public sector,
private sector and academic community
• Develop a financing mechanism to support key projects and activities
• Engage NEA local authorities in subregional energy cooperation to
facilitate desirable energy services at the local level (e.g. through the
LCC in GTR)
Supported by United Nations Development Programme
Thank you!
ZHU Shu
GTI Secretariat/ UNDP
[email protected]
www.tumenprogram.org