Energy club of Shanghai Cooperation Organization (SCO)

Energy club of Shanghai Cooperation Organization (SCO)

At the summit of the Shanghai Cooperation Organization, held in Shanghai on June 15, 2006, the President of the Russian Federation proposed establishing the SCO Energy Club, which would operate as the facility whereby national electric power generation, trade, and consumption strategies of SCO member states could be coordinated for the long-run through attainment of a broad consensus among representatives from government authorities, business communities, and scholars in the states engaged in generation, consumption and transit of hydrocarbon resources. The proposal of the Russian president was supported by the leaders of the SCO member states.
Draft Energy Club provisions were presented in Moscow on June 19, 2007, during a meeting attended by experts from the fuel and power sector of SCO member states. Energy Club provisions had been drafted by the Russian Ministry of Industry and Energy. No party had any objections, and therefore, draft provisions were recommended for consideration at the first (unofficial) meeting of the fuel and power ministers of the governments of SCO member states, held in Moscow on June 29, 2007. Despite the consent of the head of each SCO member state to establish the SCO Energy Club, the representative from Uzbekistan at the meeting of the fuel and power ministers claimed that the establishment of the Energy Club was an inexpedient undertaking.
At the meeting of the ministers, the resolution concerning the establishment of the Energy Club was approved by five states: Russia, Kazakhstan, Kyrgyzstan, China, and Tajikistan. The five states decided to continue the incorporation of the Energy Club. The Uzbek party specified its position in the final minutes of the meeting. It is supposed that Uzbekistan may join the Club's activities after completion of its official incorporation.
In pursuance of the action plan of the Russian Federation as the Chair of SCO in 2008 - 2009, approved by the President of the Russian Federation on December 24, 2007, the meeting of the SCO Energy Club is scheduled for the second half of 2009 (the Ministry of Industry and Power of the Russian Federation has been appointed as the meeting organizer). Until now, Uzbekistan has refrained from involvement in the establishment of the Energy Club, and China has made it clear that its establishment should not be pursued until early 2009. Positions of other partners are in line with the Russian Federation's position. Nonetheless, each SCO member state would like to obtain more detailed proposals from the Russian Federation concerning the agenda and concept of the aforementioned event, as well as characteristics of the further activities of the Energy Club.
The SCO Business Council is willing to get involved in the establishment of the Energy Club. Scholars may be involved in the above undertaking through the SCO Forum.
In the course of the SCO summit held in Bishkek in August 2007, N.A. Nazarbayev, President of the Republic of Kazakhstan, specified Asia's energy strategy initiative. The Energy Club could turn into its constituent. By now, Kazakhstan has issued a draft document on the incorporation of unified SCO structures (including supranational ones) designated to regulate production, supply and transit of energy resources. The draft document is already under consideration by the SCO member states.