EU International Cooperation

 

Overview

 

International cooperation is crucial to meet global energy challenges such as climate change, environmental protection and volatile prices.

As the global energy demand grows rapidly, the EU faces the increasing of fossil fuel competitiveness, working with its international partners to ensure secure energy supplies at competitive prices for Europe. Simultaneously, the success of the EU's policies to combat global greenhouse gas emissions also depends on the energy policies of other countries. 

 

 

Intergovernmental agreements concluded by EU countries

 

When individual EU countries negotiate international energy agreements with third countries, they share information on these agreements with the European Commission and with each other through the Commission's information exchange mechanism. It ensures that these agreements do not violate EU laws or represent distortions of the internal energy market. 

 

 

EU cooperation with other countries

 

 

Eastern Partnership

 

The Eastern Partnership is an initiative aiming to assist Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine to rise cultural, economic and political relationships with the EU.

 

 

EU4Energy

 

The second phase of the regional EU4Energy program aims to promote the low carbon and clean energy transition in the six Eastern partner countries. The implementation partners are:

 

- the Council of European Energy Regulators;

- the International Energy Agency;

- the Secretariat of the Energy Community.

 

 

Ukraine

 

A Memorandum of Understanding on a strategic energy partnership was signed by the EU and Ukraine in November 2016 aiming to reach a full integration of the energy markets of the EU and Ukraine.

Following the invasion of Ukraine, the electricity grids of Ukraine and Republic of Moldova were synchronized, in emergency synchronization format, with the Continental European Grid on 16 March 2022.

 

 

Moldova

 

The Republic of Moldova depends a lot on imports of fossil fuels and electricity, with around 20% of the energy demand satisfied by endogenous energy sources. The natural gas consumption is imported, mainly from Russia via Ukraine.

The Republic of Moldova has been received financial support, technical assistance and expertise in the energy sector by the EU.

 

Source: European Commission website

 

 

United States of America

 

The EU and US economies account for about half of world GDP and nearly a third of world trade flows. On energy, the EU and the US share a common approach to promote open, transparent, competitive and sustainable global energy markets. 

 

 

EU-US Energy Council

 

In 2009 the Bilateral energy cooperation was strengthened  with the establishment of the EU-US Energy Council. The Council is chaired by the EU High Representative/Vice President, the EU Vice President for the Energy Union, the EU Commissioner for Climate and Energy, the US Secretary of State and the US Secretary of Energy. A representative from the rotating EU Presidency also participates. Key areas of bilateral cooperation in the context of the Energy Council include: energy security and markets (diversification and infrastructure, including completion of the Southern Gas Corridor; global oil and gas markets; energy security of Ukraine and other EU neighbours); energy policy challenges, including market design and energy transition; continued cooperation on clean and renewable energy technologies, including the Clean Energy Ministerial (CEM) multilateral and the Innovation Mission (IM).

 

 

EU-China Dialogue      

 

Energy developments in China have a major impact on global energy markets, as well as on the amount of greenhouse gases released into the atmosphere. The EU’s energy cooperation with China focuses on supporting the clean energy transition of both sides to provide their citizens with clean, sustainable and affordable energy. 

 

 

Energy Dialogue and Energy Cooperation

 

Since 1994, EU and Chinese officials have met for an annual Energy Dialogue to cooperate on energy issues.

The Energy Dialogue builds strongly on the EU-China Roadmap on Energy Cooperation, signed in 2016, and the Joint Leaders' Statement on Climate Change and Clean Energy, adopted in 2018.

 

 

Japan        

 

The EU and Japan have a well-developed energy dialogue, through which they discuss topics such as energy security and liquefied natural gas (LNG); electricity market design, energy technologies and nuclear energy. Exchanges between European and Japanese energy stakeholders are also facilitated within the framework of this dialogue.

These Exchanges are often held at the expert level on electricity market regulation and gas market developments. On 11 July 2017, a Memorandum of Cooperation was signed between the EU and Japan to promote and establish a global, liquid, flexible and transparent LNG market. To implement this Memorando , the European Commission's DG Energy and Japan's Ministry of Economy, Trade and Industry are co-hosting a series of international workshops on the factors to increase the liquidity, flexibility and transparency of the global LNG market.

 

 

Central Asia      

 

Central Asian countries are in most cases rich in natural resources, including oil and gas, which could help the EU to diversify its energy supply, and have significant potential to achieve higher energy efficiency and increase energy production from renewable sources.

Recognizing this potential, the EU has activated energy cooperation channels by signing Memorandums of Understanding (MoUs) with Kazakhstan, Turkmenistan and Uzbekistan, which are periodically followed up through bilateral consultations.

At the regional level, energy cooperation is also presented through the EU's Central Asia strategy, notably through synergies with other international bodies and institutions (International Financial Institutions, IRENA, International Energy Charter).

The EU also cooperates with 11 partner countries in Eastern Europe, Central Asia and the Caucasus in the regional energy program EU4Energy. The program continues the work of the former INOGATE program and aims to help all partners reduce their dependence on fossil fuels and energy imports, improve security of supply, and tackle climate change. Central Asian countries benefit from work on data, statistics and policy recommendations that is carried out by the International Energy Agency.

 

 

Union for the Mediterranean

 

In July 2008, in Paris, the Heads of State and Government of the Union for the Mediterranean (UfM) decided to launch the UfM.

Previously, in 1995, with the aim of strengthening relations amongst Europe and the Southern and Eastern Mediterranean countries, the Barcelona Process had been launched.

UfM consists of 15 non-EU countries (Albania, Algeria, Bosnia and Herzegovina, Egypt, Israel, Jordan, Lebanon, Morocco, Mauritania, Monaco, Montenegro, Palestine, Tunisia and Turkey; The membership of Syria is currently suspended) and the 27 EU countries, and aims to promote relations amongst the EU and these 15 countries in the Southern and Eastern Mediterranean region.

In the field of energy, it aims to promote renewable energy and energy efficiency through regional energy platforms that concern three areas, namely natural gas, integration of electricity markets, renewable energy and energy efficiency,  aiming to create an integrated Mediterranean energy market.

A declaration underlining their commitment to strength cooperation with ambitious energy sustainability goals in the Mediterranean region and increasing the region's ambition to contribute to a green and fair energy transition was signed by the Energy Ministers of the UfM in June 2021.

 

Source: European Commission and Union for the Mediterranean websites.

 

 

Algeria

 

Algeria is the third largest supplier of gas to the EU and the biggest EU `importer of Algeria gas. Europe relies on Algerian gas for its security of supply and Algeria relies on the European market for its security of demand. Algeria has a huge but untapped potential for renewable energy and for energy efficiency gains, while the EU is leading at global level the energy transition and is strongly committed to support Algeria in these policy areas. This strong interdependent relationship in the energy sector leads to the establishment of an EU-Algeria Strategic Partnership on Energy.

 

The Strategic Partnership on Energy covers cooperation on natural gas, renewable energy, energy efficiency and energy market integration, launched in 2015 and is fully operational, consisting of an annual meeting of the EU Commissioner for Energy and Climate Change and the Algerian Energy Minister, two working groups on Gas and Renewable Energy / Energy Efficiency, and a business forum. The Strategic Energy Partnership is a permanent and structural component of the Euro-Algerian relations. The EU Commissioner and the Algerian Energy Minister, and the Expert Groups on Gas and Renewable Energy / Energy Efficiency, have been meeting since 2015. 

 

 

Egypt

 

The EU and Egypt face several common energy policy challenges, including security of supply, the need for deeper diversification, the completion of energy market reforms, improvement of energy efficiency and increased renewable energy use amongst others. Therefore, and in view of Egypt's growing role as an important regional gas and electricity producer and transit country in the Euro-Mediterranean market, the EU and Egypt have deepened their energy cooperation over the past decade. 

 

 

Africa-EU Energy Partnership

 

As one of the partnerships under the JAES, the Africa-EU Energy Partnership (AEEP) is a long-term framework for strategic dialogue between Africa and the EU to share knowledge, set political priorities and develop joint programs on key energy issues such as sustainable energy access, energy security, energy transition and challenges in the 21st century.

The overall objective of the AEEP is to improve access to secure, affordable and sustainable energy for both continents, with a special focus on increasing investment in energy infrastructure in Africa. 

 

 

Africa Renewable Energy Initiative

 

The Africa Renewable Energy Initiative (AREI) is an initiative of the African Union aiming at harnessing Africa's abundant renewable energy resources to help African countries achieve their development strategies and support the development of their low-carbon economic. AREI was launched at COP 21 in Paris in December 2015 and is receiving strong international support from development partners.

The European Commission, EU Member States and EU Financial Institutions have committed to support the AREI through existing financial instruments and mechanisms. These include the External Investment Plan (EIP) and the Electrification Financing Initiative (ElectriFI) to leverage sustainable energy investments that will unlock Africa's potential and improve the lives of millions of people. 

 

 

EU cooperation with international organizations

 

The EU is working with major international energy organizations, including the International Energy Agency (IEA), the International Atomic Energy Agency (IAEA), the Organization of the Petroleum Exporting Countries (OPEC) and the Energy Community and others. The EU also participates in several international energy initiatives such as the Clean Energy Ministerial and the Innovation Mission.

Since 2016, the European Commission regularly organizes EU Energy Day, as part of international energy events, bringing together policymakers and industry representatives from various parts of the world to discuss the clean energy transition. 

 

 

European Energy Community

 

The Energy Community is an international organization which brings together the EU, represented by the European Commission, Albania, Bosnia and Herzegovina, Georgia, the Republic of Northern Macedonia, Kosovo (in line with UNSC Resolution 1244 and the ICJ Opinion on Kosovo's Declaration of Independence), the Republic of Moldova, Montenegro, Serbia and Ukraine. The Energy Community aims to integrate the neighbouring countries into the EU's internal energy market.

 

 

Gulf Cooperation Council

 

The Gulf Cooperation Council (GCC) brings together six Arab countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates - to promote political and economic integration among them. For example, the GCC launched a common market in 2008 and a Patent Office in 1992. All GCC countries are also oil and gas producers, some of which export to the EU. 

 

 

Organization of the Petroleum Exporting Countries (OPEC)

 

The Organization of the Petroleum Exporting Countries (OPEC) coordinates the oil policies of its members. The EU imports around 40% of its oil from OPEC members. In cooperating with OPEC, the EU aims to promote more stable and transparent international oil markets; an attractive investment climate; better market analysis and forecasts; improved technological and international cooperation; clean energy technologies and policies - clean energy transition.

 

 

Energy Charter

 

The Energy Charter Conference is based on the 1994 Energy Charter Treaty focusing on cross-border energy cooperation between 51 countries in Europe and Central Asia, the EU and Euratom. Its goal is to help countries manage the risks associated with energy trade and investment. The Energy Charter focuses on investment protection, energy trade, energy transit, and dispute settlement.  The EU signed the decision on the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects (98/181/EC, ECSC, Euratom).

In addition to the Energy Charter Conference, the International Energy Charter promotes mutually beneficial energy cooperation among nations from all continents for energy security and sustainability. 

 

 

International Atomic Energy Agency (IAEA)

 

The International Atomic Energy Agency (IAEA) promotes the safe and peaceful use of nuclear energy globally. The EU is a major contributor to the IAEA's work, in terms of financing and technical expertise. In 2013, the IAEA and the European Commission signed a Memorandum of Understanding on nuclear safety, which includes working together through expert peer reviews and strengthening emergency preparedness and response.

 

 

 International Energy Agency (IEA)

 

The oil crisis of 1973-1974 and the need to help industrialized countries cope with major oil shocks were causes for the creation of the International Energy Agency (IEA). Subsequently, economic development, clean energy and global energy security were also included in the work of the IEA.

The IEA member countries are Germany, Australia, Austria, Belgium, Canada, Czechia, Denmark, Spain, United States, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Japan, Lithuania, Luxembourg, Mexico, Norway, New Zealand, Netherlands, Poland, Portugal, United Kingdom, Republic of Korea, Slovak Republic, Sweden, Switzerland and Turkey.

Other countries are seeking full membership, namely, Chile, Colombia and Israel.

The EU ensures the participation in the IEA Governing Board and in the committee meetings, and is involved in the IEA technology collaboration platforms.

 

Source: European Commission website

 

 

International Renewable Energy Agency (IRENA)

 

The International Renewable Energy Agency (IRENA) is an intergovernmental organization established in 2009 to support the widespread adoption and sustainable use of all forms of renewable energy. IRENA has almost 160 countries that are full members and an additional 24 states that are in various stages of accession. The EU is one of the founding members and participates in the different activities of IRENA's work program. IRENA’s activities include publications and development of databases with the latest information, statistics, policy and cost data on renewable energy on its Resource Platform, platforms to support project development, global resource data, and the financing of renewable energy projects.

IRENA is also involved in regional initiatives to support renewable energy development and works closely with the EU to develop renewable energy deployment in Southeast Europe.