JOINT STATEMENT BY THE MINISTRY OF ENERGY OF THE RUSSIAN FEDERATION AND THE INTERNATIONAL ENERGY AGENCY. Paris October 2011

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1 JOINT STATEMENT BY THE MINISTRY OF ENERGY OF THE RUSSIAN FEDERATION AND THE INTERNATIONAL ENERGY AGENCY Paris October Our discussions at the IEA Energy Ministerial have underlined the need for urgent action to address the key challenges of energy policy; maximising the contribution of the energy sector to economic recovery and development, improving global energy security, and addressing the environmental impact of energy production and use. We have agreed that the Russian Federation and the IEA will intensify our co-operation and deepen our partnership to pursue these shared objectives. 2. Our Joint Statement is made in the light of the status of the Russian Federation as a member of the G8 and G20, as a major contributor to the global energy economy, and as a candidate country for accession to the OECD. It also reflects an increasing alignment of energy policies between the Russian Federation and the IEA, and IEA Member countries, developed, in part, through the IEA s strong involvement in the G8 and G20 process. And, it reflects the similar commitments to energy security, environmental protection, and economic growth and development, set out in the communiqué of the St Petersburg Summit in 2006, chaired by Russia, and in the shared goals adopted by the IEA. These include commitments to enhanced energy efficiency, renewables and other clean energy technologies, co-operation in handling energy emergencies, and open, transparent, and efficient energy markets. We recognise the Joint Statements made by the G8 Energy Ministerial in Rome in May 2009, in particular the importance of improving international legal and regulatory frameworks as a prerequisite for well functioning energy markets and for reducing investment risk. 3. In this Joint Statement we are building upon the tradition of co-operation between Russia and the IEA, which began in 1994 and continues under the Memoranda of Understanding between the IEA and the Ministry of Energy of the Russian Federation (signed in October 2010 effective from ), the Federal State Statistics Service, the Ministry of Education and Science and the Russian Energy Agency. We will continue the practice of agreeing detailed joint programmes of work under these Memoranda. The latest version of this joint programme for 2011/13, which includes specific joint actions that we have agreed under this Statement, is being released today. Participation in IEA structures 4. We have agreed that senior officials of the Russian Ministry of Energy will participate as observer in at least one meeting of the IEA s Governing Board during , and at least one meeting of each of the IEA s senior committees, subject to approval. Discussion between IEA Member countries and the Russian Federation of crucial issues of energy policy and strategy in these forums will be at the heart of our collaboration. 1 P a g e

2 5. We have also agreed that at least one Russian expert will contribute to an In Depth Energy Policy Review of an IEA Member country during 2011/13. Energy Security 6. The Ministry of Energy of the Russian Federation and the IEA will co-operate in the area of energy security. Russian experts will take part in relevant workshops of the IEA. Points of contact will be established to further facilitate fast communication and information flows at a high operational level when disruptions occur or are on the horizon. We will also discuss the improvement of international legal and regulatory frameworks in support of energy security. 7. Based on the constructive exchange of views on natural gas markets over the past few years in the framework of the IEA s annual Medium Term Oil and Gas Market Review, the IEA and Russian officials (both Governmental and Industry) will continue to enhance dialogue and exchange of information and views. This will help raise transparency and understanding of gas market trends. 8. Experts of the Ministry of Energy of Russia and of the IEA will meet periodically to review developments and prospects in international oil and gas markets. In addition, the Ministry of Energy of the Russian Federation and the IEA agree to enhance their dialogue and information exchange on gas markets in an effort to enhance transparency of information and gas market security. Energy Efficiency 9. The IEA and the Ministry of Energy of the Russian Federation will continue and enhance our extensive joint programme of work supporting Russia s ambitious programme for improving energy efficiency in industry, the residential, services, power, district heating, and other sectors. 10. Both sides agree that in order to effectively measure progress in energy efficiency, joint cooperation on energy efficiency indicators has to be reinforced. The Ministry of Energy also supports close relations between the IEA and the Russian Energy Agency in this area. Likewise, the IEA is prepared to co-operate with the Ministry of Energy, RosStat and the Russian Energy Agency in this important area. 11. Russia is an active member of the International Partnership for Energy Efficiency Cooperation (IPEEC), whose secretariat is hosted by the IEA. Such mutual association with IPEEC provides ideal opportunities for implementation of cooperative projects with other IPEEC members on energy efficiency. 12. As a part of its work on international energy policy the IEA has made 25 specific energy efficiency policy recommendations. The IEA will work with Russian authorities, including the Russian Energy Agency, to enhance the contribution that these and other IEA efforts can make to Russian energy policy strategy, including the objectives set by the Decree of the President of the Russian Federation of 4 June P a g e

3 Diversification of Energy Sources 13. We recognise the major role renewable energy sources can play in diversifying energy supplies thus contributing to a reduction in the consumption of, and dependence on, fossil fuels. Renewable energy sources also help to decrease the anthropogenic impact of energy use on the environment. 14. The Ministry of Energy of the Russian Federation and the IEA will co-operate concerning the use of renewable energy sources, by providing support for workshops held in Russia, and by participation in IEA workshops such as those associated with the development of roadmaps and other agreed actions. 15. We also, however, recognise the continuing importance of the efficient and clean use of fossil fuels, which will continue to play a role in the energy mix. The Ministry of Energy and the IEA will therefore share information and co-operate in the field of energy efficiency and clean coal technologies in the electricity sector possibly in co-ordination with the IEA s Coal Industry Advisory Board and its member company OAO SUEK. Given the growing importance of CCS in the context of clean coal technologies world-wide, the Ministry of Energy and IEA with the support of relevant research institutes in Russia will conduct joint studies on CCS opportunities and potential in Russia. Energy Policy Review 16. The IEA regularly conducts In Depth Energy Policy Reviews of its member countries, carried out by experts from Member countries and from the IEA Secretariat. The IEA has conducted similar reviews of Russian energy policy in 1995 and 2002 and is, in principle, ready to renew and update its last In Depth Energy Policy Review. The IEA and Russia agreed that the Russiafocus in the World Energy Outlook - WEO 2011 will open many potential areas of focus for joint work on a sectoral or thematic review. Personnel Visits 17. We have agreed that we will find opportunities for temporary assignments of Russian officials at the IEA for training and professional development in the fields of energy markets, energy efficiency, energy statistics and indicators, energy related environmental policy, and energy modelling. We will endeavour to expand such exchanges into other fields of co-operation 18. An expert from the Russian Energy Agency has already been working with the IEA in Paris since March The IEA Training and Capacity Building Unit has proven to be an excellent convenor and we call upon it to provide all support required for the implementation of a capacity building programme adapted to Russian needs. IEA Analysis and Publications 20. Russian government experts will contribute their knowledge and expertise, including knowledge of the Russian energy sector, to enrich and improve IEA flagship publications such as World Energy Outlook, Energy Technology Perspectives, and technology roadmaps, as well as short and medium term oil and gas market analysis. This will take the form, as appropriate, of participation in workshops, analytical support for, and expert review of, IEA drafts, and drafting of sections in areas of their special expertise. To provide broader access 3 P a g e

4 to the IEA and its work, the Agency will collaborate with Russia post relevant documents on its Russian-language web page. 21. We have agreed that the IEA will continue to send to the Ministry of Energy of Russia relevant IEA publications on global energy statistics and balances, renewable energy sources, carbon emissions and other analytical studies on a regular basis. The Ministry of Energy of the Russian Federation will also send the IEA relevant studies and statistics. Energy Technology Collaboration 22. Russia already participates, as a full member, in eight of the IEA s international energy technology collaboration implementing agreements, and is a sponsor to one. Recent joint workshops, co-hosted by the Ministry of Education and Science, with energy technology experts from Russia and the IEA technology network, have demonstrated that there are many other agreements where Russian participation would benefit all parties. We have agreed to work together to speed up this process to ensure that Russian experience and expertise becomes fully embedded in this network. 23. The IEA will work with the Ministry of Education and Science and other relevant Russian bodies on energy technology collaboration efforts in the framework of the IEA s Low Carbon Technology Platform following Russia s co-chairmanship of the IEA s kick-off meeting in Fall The IEA will continue to include Russia in its work on development of various energy technology roadmaps and be interested in taking part in development of Russia energy technology roadmaps. Energy Statistics 25. The IEA has had a long-standing relationship and co-operation with the Federal State Statistics Service (RosStat) which was formally reflected in the MOU signed in The IEA will continue to work with Rosstat to coordinate and harmonise methodological bases for accounting the main indicators of energy statistics, exchange technical know-how and experience in the field of electronic gathering, processing and dissemination of statistical data and metadata, and providing the conditions for the most complete compatibility of requirements for energy statistical data of the IEA and Rosstat concerning the coverage, periodicity, timeliness, integrity and quality of presenting data. 26. The cooperation on energy statistics between the IEA and Russia should not be limited to Rosstat. For instance, the cooperation is extending into the work it does with the Russian Energy Agency in the case of statistics for energy efficiency indicators. The IEA welcomes the exchange of energy data and information with other Ministries and institutes on other specific topics. Review 27. We are determined that these joint efforts, taken together, will lead to much closer relations and more fruitful collaboration between Russia and the IEA to address common challenges of energy policy for the future. We have also agreed to hold a senior level workshop in Moscow, towards the end of 2013, to prepare a joint report on the progress that has been made under this statement, to be submitted to a meeting of the Governing Board in 2013 at which Russia will participate. 4 P a g e

5 Proposed Schedule of Joint Actions The schedule of joint actions listed in this attachment reflects the priorities for cooperation throughout This is a planned list of activities to be further evolved through continuous mutual consultation. Participation in IEA structures 1. The exact timing of invitation will be explored through mutual consultation, and decided by the Governing Board/ Committee/working party. 2. A Russian expert will contribute to In Depth Reviews of at least one IEA Member country during 2012/13. Energy Security 3. The IEA and the Ministry of Energy with the participation of OAO Gazprom and other relevant energy companies will hold joint expert seminars on developments in gas markets to enhance information exchange, gas market security and transparency in Based on the constructive exchange of views on natural gas markets over the past few years in the framework of the IEA s annual Medium Term Oil and Gas Market Review, the IEA and Russian officials (both Governmental and Industry) will continue to enhance dialogue and exchange of information and views. This will help raise transparency and understanding of gas market trends. 4. Against the backdrop of recent developments in the Middle East and North African region, the IEA and the Ministry of Energy agreed to hold a joint Workshop on Energy Security focusing in particular on oil and gas. 5. Co-operation will build on the knowledge base of the IEA s study on the Golden Era of Natural Gas and the analysis and assessment developed in the WEO The IEA will participate in the annual international forums such as International Energy Week in Moscow. 7. The IEA and Ministry of Energy will establish points of contact to exchange information in the event of an oil or gas supply crisis. 8. Russian government experts will contribute their knowledge and expertise to enrich and improve IEA publications. Energy Efficiency 9. The IEA and the Ministry of Energy with the participation of the Russian Energy Agency and other relevant bodies will hold joint expert seminars on energy efficiency policy, technology and deployment in support of Russian government efforts to reach its ambitious energy efficiency targets. In 2012, both sides agreed to hold a workshop to take stock of progress made on policy actions with the help of the basic energy efficiency indicators developed in Russia to date and to try to determine the most cost-effective policy pathway in the Russian context. In 5 P a g e

6 this effort, the IEA is prepared to co-operate with all relevant stakeholders including the Ministry of Energy, RosStat and the Russian Energy Agency. 10. In 2013, the IEA and the Ministry of Energy agreed to work together to identify the most relevant recommendations among the IEA s 25 Energy Efficiency Recommendations and to assess how effectively these recommendations are being applied in Russia and, in consultation with Russian experts, to seek ways to enhance their implementation. Renewable Energy 11. Ministry of Energy and IEA will organise joint expert level workshops to exchange information and expertise in the field of renewable energy sources and policies to promote their use and integration in the electricity fuel mix. 12. Over 2012, both sides agreed to consider expert level discussion and joint work on a Russian Technology Roadmap for renewable energy sources. 13. The IEA has developed a Renewable Energy Policy database, and the Russian authorities will cooperate to ensure that the database properly represents the Russian policy framework. The IEA is also developing Best Practice Principles for renewable energy policy and policy indicators, and the Russian authorities will consider how this work can best enhance the contribution that these and other IEA efforts can make to Russian energy policy strategy. Clean Coal 14. Based on the conclusions of the high level Workshop on Energy Efficiency and Clean Coal Technologies in October 2010 and the CCS Workshop in March 2011, the Ministry of Energy and IEA with the support of relevant mining institutes will organise joint expert level meetings and workshops on energy efficiency and clean coal technologies.given the growing importance of CCS in the context of clean coal technologies world-wide, the Ministry of Energy and IEA with the support of relevant research institutes in Russia will conduct joint studies on CCS opportunities and potential in Russia Thematic or Sectoral Energy Policy Review 15. Over the period , the IEA will undertake thematic or sectoral energy policy reviews with a first focus on Russia s electricity sector as proposed by the Ministry of Energy in the 2011 Joint Work Programme. The IEA and Ministry of Energy agreed to discuss the main conclusions of the Russia-focussed part of the IEA s World Energy Outlook - WEO 2011 and to consider potential areas of focus for more joint work on a sectoral or thematic review. Personnel Visits 16. The IEA and Russia will develop a collaborative, multi-year capacity building programme for Russian professionals engaged in energy policy to strengthen the research for energy policies based in part on the framework of programs of the IEA Training and Capacity Building Unit. 17. The IEA Secretariat will receive each year trainees from Russia to help strengthen institutions dealing with basic energy statistics, energy balances, energy indicators and/or energy modelling, as well as oil and gas statistics. 6 P a g e

7 18. IEA experts will participate in conferences and workshops taking place in Russia and will undertake visits to identify future activities of mutual interest. Review of Progress 19. The Ministry of Energy and the IEA will hold a senior level workshop in Moscow, towards the end of 2013, to prepare a joint report on the progress that has been made. This report is to be submitted to a meeting of the IEA Governing Board in 2013 at which Russia will participate. Energy-related Activities with Other Government Organisations in Russia Related activities in which the participation of Ministry of Energy experts is critical to the success of the work by other Russian Institutions: Energy Technology Collaboration 1. The Ministry of Energy and the Ministry of Education and Science will work with the IEA to enhance active participation of relevant Russian organisations in the IEA s energy technology network of research and development groups around the world in all aspects of energy; the membership of the Implementing Agreements will be decided by each executive committee of the Implementing Agreements. 2. The IEA has been working closely with the Ministry of Education and Science on energy technology collaboration efforts in the framework of the International Low-Carbon Energy Technology Platform: Russia co-chaired the High-Level Meeting that launched the Technology Platform and remains an active member of the Technology Platform Advisory Committee. Russia and the IEA are co-organisers of an international conference on decarbonising the power sector under the auspices of the Technology Platform in fall The IEA will include a focus on Russia in its Energy Technology Perspectives 2012 study in an effort to complement quantitative scenario results for Russia and focus on key energy technology trends and policy developments. The IEA will continue to include Russia in its work on development of various energy technology roadmaps and be interested in taking part in development of Russia energy technology roadmaps. Energy Statistics 1. The IEA and RosStat will continue the ongoing exchange of energy statistics both monthly and annual. 2. Based on the major statistical training session held with RosStat and the Russian Energy Agency in Fall 2011 or early 2012, the IEA will continue to support capacity building on internationally recognized statistical reporting methods and energy balances in Russia. 3. The IEA and RosStat with the support of the Ministry of Energy, the Russian Energy Agency and other relevant Ministries and institutes will continue to work developing energy efficiency indicators for various sectors in Russia. 7 P a g e