Building Trust in the Mission of World Energy Policy
Gaining trust in improving a country’s energy quality means a government could seek, maintain, and develop alternative energy for energy scarcity. Every country, either one on the Asian continent or the other on the European continent, essentially wants to develop renewable energy as an interchange solution to fossil energy. Many countries still rely on fossil energy, that is, natural gas and oil, which predictably will become obsolete in years to come.
Meanwhile, when we look at the global solution, the United Nations has stipulated the sustainable development goals (SDG) that a country should optimize its renewable energy. The SDG’s expected target mentioned that developed and developing countries should utilize renewable energy by 2030. As a developed country, Ireland also plans the same activities in which the use of fossil energy must be reduced in 10 years, and that policy began in 2021. Through the national energy and climate plan (NCEP), all the country’s EU members, including Ireland, report the development of their energy policy to the European Commission, particularly their progress on renewable energy.
Based on NCEP, in 2030, Ireland targets primary energy consumption efficiency to reach 15.9%. At the same time, the efficiency for using final energy consumption is targeted to get 13%. In the same year, the target of reducing greenhouse gas emissions reached 30%. The emission reduction target has increased compared to 2017, which came to 13%, and in 2020 which reached 20%.
The energy policies of EU member countries comply with global agreements to support the use of efficient and renewable energy, including energy that is expected to reduce greenhouse gas emissions. In addition, future energy policies will also create interconnections and support synergy among nations for performance on research and development in the energy sector.
Critically, developing renewable energy is a complicated measure for all nations to reposition their use of fossil energy, including Ireland, considering that many aspects and parties have depended on this fossil energy for their energy needs. Meanwhile, the energy transition policy was introduced by G20 a couple of years ago. Since 2009,
The G20 meeting in Pittsburgh, through the group’s top leadership, has built a commitment to reduce fuel subsidies as people know that fuel subsidies have burdened some nations’ state budgets. Therefore reducing them becomes a reasonable measure to create efficient fiscal utilization for other development needs.
During geopolitical tensions due to Russia’s invasion of Ukraine in 2022, the weakening foreign exchange rate, inflation, and rising oil commodity prices have again caused an increase in fuel subsidies in the state budgets of several countries. The subsidy reduction plan could become better planning because subsidies are still part of the energy subsidy expenditure allocation in the state budget. It takes a strong commitment from all parties if renewable energy is to be realized immediately. Primarily its mission is to support green development and tackle climate change.
The progress of renewable energy development has started to give better results. France, the United States, Japan, and South Korea are even trying to develop nuclear energy as an alternative to renewable energy. The new model for expanding nuclear power is an alternative to other energy sources expected to create cost efficiency, resources, and reduction of pollution that distorts environmental ecosystems and climate.
The world’s attention is heading towards governance changes in finding and developing available energy. Governments and business sectors in each country are also trying to find sources of financing that can be used to build their energy resource management plans. But the Government and the business sector experience a dilemma.
Based on a survey analysis conducted by the Edelman Trust Barometer, just released in 2023, the level of public trust in the Irish Government is only 45%. Meanwhile, public confidence in the business sector reached 52%. Eldelman classifies the level of public trust in the Irish Government as a form of distrust. At the same time, public confidence in the business sector is neutral.
Likewise, with Germany, Spain, Italy, and the United Kingdom. The level of public trust in the Government in this country is at the level of distrust. Public distrust of the Government is a challenge for European governments in inviting public involvement to support the development of alternative energy.
The public protest against the change in the retirement age rules has become one of the public’s expressions of disappointment with the French Government under the leadership of Emmanuel Macron. However, that situation differs from the distrust shown by the other reason. The accumulation of social problems may become one of the reasons why the public is starting to see deficiencies in implementing policies issued by the French Government. Social mobility policies related to the spread of Covid-19 could have been one of the triggers.
Not to mention the problem of economic recession and world pressure due to the conflict in the Black Sea. The inflation in food and energy prices worst the financial situation when many people are still searching for their living food caused by are being forced to lose their jobs due to the Covid-19 pandemic. Accordingly, European governments must struggle again to build public trust so that plans for developing renewable energy and other alternative energy can run according to the planned targets.
While Europe was about to restart building the trust of its people, China, Indonesia, Singapore, India, Saudi Arabia, and the United Arab Emirates succeeded in increasing their people’s confidence in their respective governments. Building public trust needs enormous effort and pressure. The people always believe in their Government if there is a manageable gap to narrow the space between expectations and realization.
Even so, some Europe countries are still developed land that can continuously adapt and change. The maturity and capacity of human resources in several European countries have even been very advanced. Their ability to manage energy and create innovation is outstanding. Every country needs time and process to advance its energy development industry, including developing countries in Asia such as China and ASEAN. They also seek to drive their energy development industry so that energy needs for power generation, transportation, heat, and other requirements can be fulfilled immediately.
All countries at least strive to achieve the SDGs target in 2030 to reach renewable energy use by 2050, which is targeted to achieve net zero emissions. As long as the G20 and other international forums mutually support global cooperation in combating climate change’s effects, renewable energy development will undoubtedly be achieved according to the expected targets.
Each generation determines the changes in its destiny. They will evaluate and continue this achievement from generation Y to Z. With technological developments no longer limited by space and time, interaction and coordination between periods and countries are straightforward. That is why the mission of diplomacy and energy cooperation will continuously adapt the pattern and character of every age that is different from time to time.
Seeing Japan – Indonesia Collaboration in Energy Transition Cooperation
Holding the G7 presidency, Japan is increasingly active in establishing relations with several countries. One of them is Indonesia. The relations that have existed so far between Indonesia and Japan are widely visible on the surface. One of them is in the energy transition sector. Indonesia is in need of a large investment to achieve net zero emissions in 2060. An investment of more than 500 million US dollars is needed to make this happen. This is indicated by the great effort to reduce energy that uses fossil fuels (coal, oil and gas) in people’s lives. Including efforts from Japan to cooperate with Indonesia or vice versa in achieving net zero emissions.
Abundant Natural Resources: A Privilege for Indonesia
The abundance of natural resources owned by Indonesia is an important point for the continuation of cooperation between Japan and Indonesia. Natural resources such as hydrogen, geothermal are important values to be further developed into renewable energy. This is a breath of fresh air for Indonesia, which is trying to achieve net zero emissions by 2060.
Replacing fossil fuels such as coal, oil and gas to renewable energy requires extra effort, Indonesia which is rich in energy resources requires a lot of money in terms of exploration of natural resources. renewable energy resources, such as hydrogen, geothermal. renewable in Indonesia. One of them is through a funding scheme through the Asian Zero Emission Community (AZEC). Through this funding, Japan, which is known to be very generous in helping developing countries in terms of energy, is expected to be able to bring change to the renewable energy transition in a country rich in energy resources, Indonesia. This transition certainly requires a short and gradual process.
State Electricity Company of Indonesia abbreviated as PLN, states that dependence on new coal will decrease in 2030. This is due to the presence of power plants from renewable energies such as geothermal, solar, hydrogen and nuclear and wind (Kompas, 2023).
Japan’s Investment to Indonesia
Indonesia, with all its abundance of energy resources, is considered capable of developing an energy transition. The development of electricity from geothermal, water and biomass are the main sector. This was conveyed by the Government of Japan through Deputy for International Affairs, Ministry of Economy and Industrial Development of Japan Izuru Kobayashi. He stated that his party was ready to assist Indonesia in achieving net zero emissions in 2060 with an environmentally friendly funding and technology assistance scheme.
The above was also supported by another Japanese party, namely from Sumitomo Mitsui Banking Corporation (SMBC). Quoting from IJ Global, SMBC has financial assistance to Asia Pacific countries for clean energy projects through Mitsubishi UFJ Financial Group of US$1.5 billion, Sumitomo Mitsui Financial Group of US$1.2 billion, and Mizuho Financial Group of US$1.2 billion. 1 billion US dollars. In Indonesia alone, as of September 2022, SMBC had invested US$221 million.
Various forms of support by Japan as donors and companions for Indonesia to develop renewable energy should be appreciated. According to the author opinion, this is a challenge for the Government of Indonesia and all of stakeholders inside, to create an investment environment that is safe, good and useful for Indonesia’s future. The use of fossil fuels such as coal for power generation needs to be slowly substituted using renewable energy. The Jokowi administration’s policy of subsidizing electric vehicles for the public can be an entry point for the continuation of Indonesia-Japan collaboration in realizing the energy transition.
The Maneuvering Of Gas Commodities As Securitization Of Russia’s Geopolitical Position
Authors: Luky Yusgiantoro and Tri Bagus Prabowo
In 2012, the Yakutia-Khabarovsk-Vladivostok gas pipeline project was redeveloped under The Power of Siberia (News Ykt, 2012). Putin legalized Gazprom (contractors: Gazprom Transgaz Tomsk). The idea named “Power of Siberia” represents the power of gas pipelines to shape and influence Russia’s geopolitical and geoeconomic situation. A new identity will be launched, conveying the Yakutia-Khabarovsk-Vladivostok gas pipeline and gaining international prominence. The Power of Siberia project is an integrated form of GTS (Gas Transmission System) that will bring the Irkutsk gas region in the fertile eastern part of Russia to the Far East and China. The pipeline location is located in the “Far East,” incredibly close to the border with China, and generally in the Asia-Pacific region. Initially, this gas pipeline was built to facilitate gas trade with China and reduce China’s dependence on coal (Pipeline Journal, 2022). What is the value of this project for both countries to become global concerns?
Furthermore, they have the ability or range to carry gas communications for approximately 4000 km. Due to its geographical proximity and shared economic interests, China is Russia’s most progressive partner in terms of a multifaceted regional and international strategy. Russia and China are known as close partners. The aftermath of Russia’s political alliance was to regain global power, status, and influence lost after the collapse of the Union of Soviet Socialist Republics in 1991, which was the driving force behind the end of the Cold War (Oualaalou, 2021 ). Russia has articulated a vision of rebuilding its global reputation using energy, military might, intelligence, and diplomacy. Russia wants to play a crucial role in the global multipolar system because the West rejects Russia’s vision for a new geopolitical order. They saw many important events related to Russia’s moves in the international order, including its response to the actions of the North Atlantic Treaty Organization (NATO) to try to dominate the nations of the world. The former Soviet Union (East), the failures in the Middle East, the annexation of Crimea, and one of Moscow’s recent invasions of Ukraine mark the military as a turning point in Russian geopolitical politics, especially during the Putin era. Russia has three strategic initiative points, including the ability to deploy and interconnect the means (intelligence, diplomacy, military, cyber, and energy) to gain influence and extend Russia’s global footprint. There is.
Moreover, the Fallacies and Western Ties strategy contradicts America First foreign policy tenets (unipolar) and impulsive decisions as a security threat. Russia wants to maintain its lack of regional interests in certain Baltic states (those still under Russian control) and the Balkans (Cooley, 2017). The Balkans (Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, Romania, Slovenia, and Serbia) have been the cornerstones of great power rivalry for centuries. NATO (North Atlantic Treaty Organization) and the EU (European Union) used the momentum of Yugoslavia’s dissolution in the 1990s to integrate the Balkans as geopolitical hotspots on the Western Front (European Policy). War analysts say the ongoing Ukraine conflict is a way for Russia to raise its stakes in the Balkans and reassert its regional influence (McBride, 2022).
In 2020, natural gas will still be the world’s third-largest primary energy requirement for the global community. Even though the COVID-19 pandemic began in 2019, demand for natural gas increased by 5.3% to 4 trillion cubic meters (TCM) in 2021 (BP, 2022). In 2021, Russia’s total natural gas production will be 701.7 billion cubic meters, the second largest globally, contributing to the strong demand in the global energy market. Russia is essential in the natural gas market (Sonnichsen, 2022). The climate crisis is the most obvious obstacle in the global gas market model. It originates from burning carbon with materials derived from fossil fuels such as oil, natural gas, and coal. However, natural gas is acceptable during the energy transition as it burns the least carbon dioxide (CO2) and pollutants of these three substances (EIA, 2022). It is easier than supplying a gas infrastructure that does not provide infrastructure. Operationally, it is optimal. Talks about climate protection, the climate crisis, and the energy transition are being shaped by Western countries as a way of highlighting Europe’s dependence on gas from Russia, which is geographically accessible and still has gas in other gas reserves. The decision to stop sourcing natural gas from Russia continues to cause European controversy. The pipeline network actively built between Russia and Europe is an essential aspect of why this relationship is used as a tool for Russia to apply pressure—on territorial Europe. Europe uses a climate scenario, and Russia uses a gas-dependent scenario. Efficiency and effectiveness will not be achieved if Europe suddenly has to look for other reserves or switch entirely to this energy mix. Then, with Russia’s eloquence in exploiting the situation and the status quo, natural gas pipelines were used as a form of Russian energy diplomacy to dominate its (European) neighbors. Recognizing that the Western natural gas market is no longer preconditioned, moving target consumers to the Asia-Pacific region is one of the most effective energy plans for Russia’s fossil fuel expansion.
Siberia’s first electricity will cost 770 billion rubles, and the investment in gas production will cost 430 billion rubles. The 1,400 mm natural gas pipeline capacity will increase to 61 billion cubic meters (2.2 trillion cubic feet) of natural gas annually. The pipeline lets the world see natural gas as one of the fossil fuels and does not pollute the air with the carbon and other substances of the climate crisis. , through the capital Beijing and down to Shanghai. According to state media, the intermediate phase will go online in December 2020, with the final southern section expected to start delivering gas in 2025 (Cheng, 2022). Through this agreement, Russia aims to extend its power beyond Mongolia into Siberia 2 in 2030 (IEA, 2022). Conditions for Europe to get 40% of natural gas from Russian pipelines. Germany, in particular, sources about half of its natural gas from Russia (Baldwin, 2022). Despite international media reports of embargoes and sanctions, the crisis has hit Europe hard. Europe must adapt its economic policies to politically justified policies and coordinate them with each other. However, this is a geopolitical struggle, and we must ensure that the country retains its absolute superiority. Russia chooses to invest in and plan for natural gas markets in regions that require or depend on natural gas in the energy sector, i.e., Asia-Pacific via China. China, influencing the Belt and Road Initiative (BRI) plan, is reshaping the geoeconomic position of Russia’s Siberia 1 and Siberia 2 power markets (Lukin, 2021). “Geopolitics is all about leverage” is one of Thomas Friedman’s influential geopolitical maxims. If a country cannot expand its influence, it remains a loser. Nevertheless, Russia is far from this analogy, as mentioned earlier. Russia continues to secure its geopolitical position. It is the embodiment of growing confidence in the reliability of natural gas. Russia still wants to become a major player in natural gas.
Remapping the EU’s Energy Partners to Ensure Energy Security and Diversification
Energy security has been a buzz word in Brussels for a few decades but since Russia’s invasion of Ukraine, followed by sanctions, Russian gas cut-off and physical destruction of North Stream pipelines, forecasts on strained EU energy production due to drought, the stakes have gotten much higher. This was confirmed on March 10th by a joint statement by the US President Joe Biden and European Commission President Ursula von der Leyen, reiterating both parties’ determination to “build clean energy economies and industrial bases”, including clean hydrogen and continue to work together “to advance energy security and sustainability in Europe by diversifying sources, lowering energy consumption, and reducing Europe’s dependence on fossil fuels”.
Last week, the EU energy chief Kadri Simson encouraged all Member States and all companies to “stop buying Russian LNG, and not to sign any new gas contracts with Russia. The EU has pledged to quit Russian fossil fuels by 2027 and replaced around two-thirds of Russian gas last year.
In this context, the Southern Gas Corridor (SGC), delivering Azerbaijani gas through (Trans-Anatolian Pipeline) TANAP and Trans-Adriatic Pipeline (TAP) to the EU, plays a key role in current diversification efforts. The EU increased gas imports via pipelines from Azerbaijan from 8.1 bcm to 11.4 bcm last year. Only two years after its completion, the expansion of the Corridor seems to be likely as the EU and Azerbaijan stroke a deal in July 2021 to double the volume of gas delivery to 20 bcm by 2027 in addition to plans to tap into Azerbaijan’s renewables potential, such as offshore wind and green hydrogen. While encouraging Azerbaijan’s accession to the Global Methane Pledge, the deal aims at collecting natural gas that would otherwise be vented, flared, or released into the atmosphere.
With the opening of the interconnector Greece-Bulgaria (IGB), at least 11.6 bcm of gas is expected to be delivered from Azerbaijan to the EU this year. The IGB has been dubbed as a game-changer for the EU’s energy security, especially as it enabled supplies to Bulgaria and Romania. A Memorandum of Understanding on gas supplies between Azerbaijan and Hungary was also signed this year, which shows that more interconnectors will be needed in the EU if TANAP would be expanded from 16 to 32 bcm and TAP from 10 to 20 bcm.
Moreover, investments will be needed to increase gas production in existing and new gas fields (Shah Deniz, Azeri Chiraq Guneshli, Absheron, Shafaq-Asiman, Umid-Babek, etc.), especially considering growing energy demand in Azerbaijan and its neighbours. Since the Russia-Ukraine war, 10 European countries turned to Azerbaijan to increase existing supplies or to secure new supplies. To meet such growing demands, Azerbaijan is poised to increase cooperation with neighbouring states, such as Turkmenistan, which is home to 50 trillion cubic metres of gas reserves – the world’s 4th largest reserves.
Following the Azerbaijani-Turkmen decision to jointly develop the formerly disputed Dostluq gas field, a trilateral swap deal between Iran, Azerbaijan, and Turkmenistan, and the 2018 Convention on the status of the Caspian Sea by all the littoral states; Azerbaijan, Turkmenistan, and Turkey stated that they were looking “to form a coordinated and multi-option system for delivering energy resources to global markets” on December 14th last year.
These developments could be harbingers of a new Trans-Caspian Gas Pipeline (TCGP), a 180-mile under-sea pipeline that could be integrated into the SGC. Labelled as an EU Project of Common Interest, which could also be eligible for funding under the 2019 US European Energy Security and Diversification Act, this strategic under-sea pipeline project could bring an end to the EU’s energy crisis by securing a cheap source of natural gas, whose price is independent of LNG prices while counterbalancing Chinese, Russian and Iranian influence in Central Asia and beyond. On the other hand, Azerbaijan began the transit of oil from Kazakhstan this year in addition to Turkmenistan, which highlights the potential to use the Middle Corridor for hydrocarbons.
During the 9th Southern Gas Corridor Advisory Council Ministerial Meeting and 1st Green Energy Advisory Council Ministerial Meeting in Baku in February, EU Energy Commissioner Kadri Simson stated “Azerbaijan can potentially become the exporter of renewables and hydrogen to the EU”. At the end of last year Azerbaijan, Georgia, Romania, and Hungary agreed to establish a green corridor to supply the EU with around four gigawatts of electricity generated by windfarms in Azerbaijan with the support of the European Commission.
Over the last several months, Azerbaijan signed documents that will provide investments to create 22 gigawatts of renewable sources of energy, both onshore and offshore. In April 2021, the World Bank started funding the offshore wind development in Azerbaijan, which has a potential of 157 GW. In addition to the Caspian Sea, which ranks second in world for its wind energy potential, Azerbaijan has an estimated 27GW in wind and solar power onshore.The current construction of wind and solar plants in Alat (230 MW), Khizi and Absheron (240 MW) and Jabrayil (240 MW) as well as new investment plans, including in Nakhchivan Autonomous Republic, are expected to further boost renewables production in the Caspian state all by living up to its vast green potential. While the country, with a population of 10 million, accounts for only 0.15% of total global greenhouse gas emissions, it defines green growth as a key priority for 2030. The EU supports the implementation of Baku’s Paris Agreement commitments through the EU4Climate initiative.
The Russia-Ukraine war may create a window opportunity for the EU to engage in concrete actions rather than high-flying buzzwords, pushing the bloc to do more strategic and visionary planning regarding future projects linked to its energy security, such as TCGP, and finally diversify away from Russian energy sources for good. Azerbaijan has proved to be a stable partner in these challenging times, which manifested the vulnerability of certain EU states against Russian economic and political pressure due to Gazprom’s immense infiltration of their gas markets for the past several decades. Now it’s the time to play fair game by a new playbook and to remap the European energy partners while investing in a stable, predictable, affordable, and sustainable energy future for the EU.
Unleashing an Iranian tiger
A Gulf investor with an analytical and artistic bent, Ali al-Salim pinpointed the long-term challenges Saudi Arabia faces as it...
Explainer: Commission proposes to expand digital tools in EU company law
What are the objectives of the Commission’s proposal? This proposal aims to cut red-tape and improve transparency and trust in...
Russia will deploy nuclear weapons in Belarus – EU and NATO went ballistic
Baroness Goldie, who is an experienced Scottish politician and life peer who served as Leader of the Scottish Conservative Party...
The people power being harnessed for cleaner and cheaper energy
As Europe weans itself off fossil fuels, local energy networks are tapping renewable sources to fill the gap and cut...
U.S. bank trouble heralds The End of dollar Reserve system
The US banking system is broken, stresses ‘The Asia Times’. That doesn’t portend more high-profile failures like Credit Suisse. The...
The New Middle East: The Winners and Losers
The Middle East and the Gulf regions are experiencing a political and diplomatic movement that they have not witnessed in...
Pakistan’s Priority Ranking of SDGs
Sustainable development goals are also known as Global or Universal goals that are meant to guide developing and underdeveloped nation-states...
Economy2 days ago
U.S. Is Threatening to Default China Debt Repayment, What Will Beijing Do?
Eastern Europe3 days ago
The dilemma of China’s role as Mediator in the case of Ukraine
South Asia4 days ago
Breaking Diplomatic Norms: Indian Response to OIC & Turkish Support for Kashmir Issue
New Social Compact3 days ago
Aurat March 2023 & Agenda Setting
Middle East4 days ago
China Gains Political Clout in the Middle East at the expense of the US’s Indispensability
Europe4 days ago
If Paris sneezes, will Europe catch cold?
World News3 days ago
Seymour Hersh: The cover-up
Economy3 days ago
Unpacking the “China Debt Trap” Narrative: Nuances and Context