Foreign Policy Debate: Energy and Security Strategies for Europe
On February 28, the second Foreign Policy Debate was held in Berlin. This session was organized by GPPi, in collaboration with Vattenfall Europa AG and supported by the German Marshall Fund. The debate was titled “Energy and Security Strategies for Europe.” Speakers included the Chairman of the Board of Vattenfall Europe AG, Dr. Klaus Rauscher; Fiona Hall, Member of the European Parliament (Alliance of Liberals and Democrats for Europe); and the Chairman of the Energy Program of the Center for Strategic and International Studies, Robert E. Ebel. The event was moderated by Ludwig Siegele, Germany correspondent for the Economist. The main purpose of the debate was to discuss foreign policy and security implications of Europe’s growing dependence on energy imports especially from Russia and the Middle East, and to develop strategies to deal with the resulting challenges. More than 90 participants from government, the private sector, and NGOs attended the debate.
Vattenfall chairman Dr. Klaus Rauscher stressed that a strategic reassessment has taken place in the debate on “energy security” in light of September 11th and its aftermath. Economic and security concerns now play an increasingly prominent role in the debate alongside ecological and environmental concerns. In order to meet future energy needs the right energy mix is crucial. Domestic energy sources such as coal have to be an integral part of that mix in order to guarantee security of supply and stable prices. Dr. Rauscher called for a new era of energy technology research for example on clean coal technology. Rauscher also called for an increasing commitment in research & development in Germany on both coal and nuclear technology to complement the current focus on R&D for renewables such as wind and solar energy. (For a link to Klaus Rauscher’s prepared remarks, please click here, for the English version click here.)
In principle, Fiona Hall concurred with Rauscher’s analysis of increasingly tight global energy markets due to increased demand, particularly from Asia. However, she emphasized the importance of implementing energy efficiency measures to solve the corresponding problems. In addition, she highlighted the importance of renewable energies: “Like energy efficiency, renewable energy ticks all the boxes. It reduces dependence on imported fuels, combats climate change and improves Europe’s competitiveness. We are the world leader in eco-technology.” Hall noted that she started her political career as an activist against nuclear energy. She still opposes a return to nuclear energy as a way to deal with the challenge of ensuring energy security. However, she also emphasized that she is realistic enough to see that due to rising demand for energy and parallel obligations resulting from the Kyoto Protocol, there are few good alternatives left. She therefore concluded: “There is no one simple solution [to deal with the energy challenge]. It has to be a diverse and dynamic approach, and one that involves political actors at all levels. The European institutions alone cannot deliver on energy policy. National, regional and local politicians and planners must be engaged. Ultimately, security of supply is not just about the high politics of foreign policy. Equally, it is about the nitty-gritty of loft insulation and low energy light bulbs. It is an energy policy in which we all have a role to play.”
Bob Ebel, a long-time energy analyst with a distinguished career in American government and the private sector, brought a global perspective to the discussion. Ebel provided a congenial survey of current trends and development in the global energy markets, emphasizing the growing role of Asian nations, in particular India and China, in driving oil and gas prices globally. He also reviewed Russia’s position in the global energy market, noting that while Russia is and will remain a serious player in the world gas market, its oil production will most likely peak in a few years. Generally, Ebel emphasized the trade-offs in designing energy policy: “Every energy decision you and I make as individual consumers, every energy-related decision taken by our governments, has a tradeoff, sometimes knowingly, sometimes not. These tradeoffs carry their own costs and risks. The public needs to understand that there is no energy option, and that includes renewable forms of energy, that can be described as risk or cost-free.” He noted that all options have to be on the table – clean coal, nuclear, oil, renewable energies – in order for Europe to guarantee energy security.