East Asian Energy Community Building: Modeled on the European Way?

Abstract

The consecutive and rapid economic growth needs a large amount of energy supply to fuel in the East Asia region. Although reaching some achievements, East Asia regional integration at a take-off phase changes little the situation of energy security in which there exists a more competitive than cooperative phenomenon in access to energy among major economies in the region. The current multilateral energy cooperation, in the framework of the Association of South East Asia Nations (ASEAN), cannot support sustainable growth in the region. So it is urgent for East Asian economies to set up an energy-specific community—the East Asian Energy Community (EAEC) to take uniform actions and effective cooperation on energy security. EAEC can be modeled respectively on European Union way especially in the East Asia Summit region, and on the Energy Charter Conference broadly in the Pan-Asia region including the Central Asia and the Middle East. It can be accomplished through such specific mechanism and institutional arrangements as follows: to sign a legally binding energy-specific treaty; to set up an Asian energy-specific fund to supply financial assistance for may-be losers in removing trade barriers and forming the energy market integration; to establish Asian Energy Cooperation Financing System based on the Asian Bond Markets Initiative approved by the ASEAN plus China, Japan and Korea; to encourage related research on development, deployment and dissemination of technologies, to enhance energy efficiency and conservation through multilateral cooperation; to establish Asian Energy Information and Data System for both supply side and demand side to facilitate policy making; to take collective actions to ensure energy transport and transit through both land routes and waterways, and so on. Despite many challenges and indigenous restraints on the East Asia regional integration, EAEC learning from European Coal and Steel Community, European Atomic Energy Community, and mechanism of the Energy Community Treaty, is completely possible and attainable.