∙ Developments in the Arctic had "potential consequences for international stability and European security interests".
∙ "The rapid melting of the polar ice caps, in particular the Arctic, is opening up new waterways and international trade routes," the report notes. "The increased accessibility of the enormous hydrocarbon resources in the Arctic region is changing the geostrategic dynamics of the region."
∙ The officials single out the impact of the thawing Arctic and its emergence as a potential flashpoint of rival claims, pointing to the Kremlin's grab for the Arctic last year when President Vladimir Putin hailed as heroes a team of scientists who planted a Russian flag on the Arctic seabed.
Cooperation
The energy charter treaty
The original Energy Charter was signed in on 17 December 1991. It was a political declaration of principles for international energy including trade, transit and investment, together with the intention to negotiate a binding treaty.
The legally-binding Treaty itself was signed in in December , together with a Protocol on Energy Efficiency and Related Environmental Aspects (PEEREA). The Treaty and the Protocol came into effect in April ; an amendment to the trade-related provisions was also agreed that month.
In December 2007 the Energy Charter Conference reaffirmed its support for the finalisation of negotiations and adoption of the Energy Charter Protocol on Transit in order to expand the existing provisions of the Treaty. In this context, the Conference resolved to ask the Energy Charter Group on Trade and Transit to return to multilateral consultations on the draft Transit Protocol during 2008, with a report back to the Conference on the outcome of these consultations at the end of 2008.
The Treaty's provisions focus on four broad areas:
∙ the protection of foreign investments, based on the extension of national treatment or most-favoured nation treatment (whichever is more favourable) and protection against key non-commercial risks;
∙ non-discriminatory conditions for trade in energy materials, products and energy-related equipment based on WTO rules, and provisions to ensure reliable cross-border energy transit flows through pipelines, grids and other means of transportation;
∙ the resolution of disputes between participating states, and - in the case of investments - between investors and host states;
∙ the promotion of energy efficiency, and attempts to minimise the environmental impact of energy production and use.
The Energy Charter Treaty includes an obligation on member countries to facilitate energy transit across their territory, in line with the principle of freedom of transit, and an obligation to secure established transit flows. At the same time, an understanding included in the Treaty makes it clear that the Treaty provisions do not oblige any Contracting Party to introduce mandatory third party access.
While the Energy Charter is based on the idea that international flows of investments and technologies in the energy sector are mutually beneficial, national sovereignty over energy resources is a core principle of the Treaty (ECT Article 18). Each member country is free to decide whether and how its national energy resources are developed, and also the extent to which its energy sector is open to foreign investors.
An objective of the Treaty is to promote transparency and efficiency in the operation of energy markets, but it is for governments to define the structure of their national energy sector. There is no obligation to privatise state-owned energy companies, or to break up vertically integrated energy companies.
Members of the Energy Charter Conference
Note: * - denotes state in which ratification of the Energy Charter Treaty is still pending
Observers
Twenty states and ten international organisations have the status of observers to the Energy Charter. Observers have the right to attend all Charter meetings and to receive all related documentation, reports and analysis, and to participate in the working debates taking place within the Energy Charter. The intention is that observer status should provide the chance for a country to familiarise itself with the Charter and its functions, in order to facilitate its assessment of the benefits of accession to the Energy Charter Treaty.
Countries
Note: ** - denotes observer state which has signed the 1991 Energy Charter