The Energy and Green Economy Working Group Report represents a selection of challenges and opportunities that affect the energy and green economy sectors in the BRICS nations. Members of the Working Group understood that the points for action raised in this report were a priority and should be regarded during the 2015- 2016 BBC’s mandate.
The primary objective of the Working Group is to address the challenges of the energy trilemma relating to energy security of supply, energy social equity and environmental sustainability within the BRICS countries, to achieve the goal of secure and sustainable energy for all.
The issues addressed by the Energy and Green Economy Working Group were considered for the elaboration of related topics presented on the Second Annual Report.
1. Promotion of trade and investment opportunities
- Aiming to promote cooperation and collaboration in the energy field, the Energy and Green Economy Working Group evaluated means to reduce restrictions on cross-border investments and financing for energy and green economy projects. The Working Group came up with a robust mechanism for BRICS cooperation, in which the following initiatives were suggested:
- Establish a forum to provide general information and communication on investment opportunities and projects amongst BRICS coun Identify specific projects to be prioritized and that need country buy-in and support;
- Encourage and support the establishment of a BRICS energy fund to promote joint research in strategic scientific projects;
- Establish a BRICS renewable energy fund within the NDB to provide support for the implementation of the energy projects by the BRICS country-members on the territory of BRICS countries and in third countries;
- Establish a specialized BRICS renewable energy coordination agency to provide special services to enterprises and to assist in the communication between governments and business;
- Explore the possibilities to offer national treatment to energy projects and enterprises from BRICS countries so they may be treated like local companies;
- Promote and support projects, agreements and actions focused on the developing of power trade and exchange in multilateral markets located in the BRICS’ regions:
– Support Southern Africa regional power integration;
– Support South America regional power integration;
– Identify the key infrastructure projects related with the issue;
- Promote long term partnerships among enterprises, investors and authorities of the BRICS countries with the objectives to design, supply, fund, build and operate those projects
- Disseminate the best practices related with the deployment of the projects as well the policies and bilateral or multilateral treaties established and related with their building and operati
- Promote and support new energy generating and infrastructure projects to develop the common energy market in each BRICS’ region, to maximize the cost-effectiveness of power exchange and to provide sustainable economic growth within these regions;
- Develop transparent legal and regulatory frameworks and regulations to facilitate long-term planning and investment;
- Negotiate multilateral and/or bilateral agreements to promote foreign direct investments among BRICS countries as well as to create joint ventures among their enterprises in BRICS countries or third countries in ventures related with the key strategic project.
2. Promotion of innovation and technologies
The promotion of inclusive growth and sustainable solutions can be achieved by thoroughly approaching cutting-edge technologies and fostering innovation in the energy field. By using clean energy sources and expanding their energy matrixes, the BRICS countries can avoid climate change at a great scale, since these countries have a huge potential to produce and consume energy. Regarding actions that can be taken in order to enhance sustainable energy production and consumption, the Energy and Green Economy Working Group made the following suggestions:
- Encourage the cooperation among BRICS countries with specific experiences in energy and those pursuing them;
- Implement means of using renewable and carbon-free technologies, aiming to reduce carbon emission Renewable energy projects could be negotiated in the carbon market;
- Provide electricity with social responsibility, ensuring the development of the community and energy access;
- Create a platform to facilitate high-level dialogue, experience sharing and best practices discussions on critical issues concerning the energy sector;
- Facilitate the exchange of scientific and technological knowledge and encourage the exchange and training of scientists and experts in the forefront energy production technologies;
- Support partnerships and collaboration among industry and academic institutions of BRICS countries to make a valuable contribution to capacity building in energy sector;
- Facilitate the exchange of best practices in connection with new clean energy projects;
- Develop cooperation programs and mechanisms to structure the development of joint projects and research related with the following energy sources:
– Oil and Gas;
- Develop innovative financing solutions to fund construction of new large- scale energy projects in BRICS countries;
- Promote new energy sources, for example nuclear technologies, for water production to supply households and industry with pure water and avoid water scarcity; and
- Promote joint new large-scale energy projects in the countries outside BRICS.
3. Establishing common technical regulations and standards
The Energy and Green Economy Working Group considers that the collaboration among the BRICS countries is fundamental to enhance secure and sustainable energy for all. Therefore, in order to address the technical challenges related to energy supply, energy social equity, and environmental sustainability, the Working Group made the following recommendations:
- Governments should agree in setting common uniform technical standards across the industry to support investment and trade;
- Closer cooperation is required amongst regulatory authoriti The process of regulating the adherence to these standards and regulations should be recognized within the BRICS countries; and
- Explore the possibility of establishing common standards of environmental requirements, adopted within the framework of the Energy and Green Economy Working Group, which should be addressed to the governments of the BRICS countries.
4. The barriers and bottlenecks to promoting trade and investment ties in the Energy and Green Economy industry include:
- Broader regulatory environment that does not facilitate the foreign direct investment flows;
- Country policy framework is not agile enough;
- Exchange control challenges with international organizations wanting to invest or otherwise;
- Movement of people and goods as a barrier to trade;
- General visa issues – visa application procedures should be simplified and multi-year multi-entry visa should be considered.