Proposals on China-EU Energy Cooperation （Xue Yanping）

In recent years, energy cooperation between China and European Union has developed very rapidly. On 5th May 2012, high-level energy officials from China and EU countries attended the Sino-EU Energy Summit held in Brussels and signed “China-EU Joint Declaration on Energy Security”. With the establishment of such relationship, China and EU countries need to strengthen cooperative actions in the following fields.

 First, China and EU must enhance cooperative actions in new energy technologies. EU countries have developed many new energy technologies, some of which are the world’s most advanced, especially the nuclear power technology and energy saving technology. The policy adjustments of nuclear power development in some EU countries provide a precious opportunity for China to increase cooperation between the two sides.

Moreover, China can make the best use of EU’s energy efficiency technologies, including sustainable low-carbon technologies in the coal sector, such as Integrated Gasification Combined Cycle / IGCC and Carbon Capture and Storage / CCS, which will greatly reduce China’s total consumption of fossil fuels and thus substantially cut down CO2 emissions. China can also learn a lot from EU countries in the wind power generation and photovoltaic power generation technologies.

Second, China and EU need to further promote their bilateral energy partnership. In the view of China’s energy production and consumption structure, it is suggested that China shall optimize its energy mix in two ways, i.e. to promote diversification of energies on one hand and conduct energy diplomacy on the other. European Union is taking a more positive attitude on China’s participation of global multilateral negotiation, regarding China as an increasingly important player in the global energy negotiation.

Engagement of China in the global energy dialogue will contribute to the stability of oil prices on the international markets and the sustainability of energy security. More important, China’s participation can enhance cooperation between energy producers and consumers on the basis of the principles of equality, reciprocity and mutual benefit. Therefore, China must grasp the chance and conduct a multi-side international energy strategy, thus improving its energy security globally.

Third, China nee to diversify its energy sources on the basis of developments in EU countries. China is similar with Europe in the sense that both are rich in coal reserves and scarce in oil and gas reserves. So, China can learn from EU countries in terms of diversifying its sources, routes, and types of energy supplies. China needs to adjust its energy mix, and reduce the share of coal use while raising the share of gas, nuclear and other renewable energies. China and EU should share their experiences in the development of renewable energy, such as hydraulic power, solar power, wind power, nuclear power and biomass energies. Globally, China-EU cooperation can also help to meet the challenge of climate change.