Sustainable Energy Economic Development Law

Sustainable Energy Economic Development Law

DOI: 10.4018/978-1-6684-7188-3.ch006
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Abstract

The development of renewable energy sources has grown significantly in the current trend of international law. Several international instruments have been adopted to regulate countries' environmental and energy policies. A wide range of binding and soft law instruments are used to formulate these regulations. However, the proliferation of international instruments regarding renewable energy sources, and the uncertainty regarding the principles and rules of international law with regard to renewable energy, necessitate the consideration of an international law approach to renewable energy. This chapter will examine the principles and rules of international law in this field, considering the importance of developing renewable energy as a global issue.
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Introduction

Globally, the states have used various energy sources in response to their socio-economic potentials to meet their demand and development. Since the second millennium BC, PR China has used coal as an energy fuel for its thermal needs and natural gas since 200 BC (Spataru, 2017). Since the late nineteenth century, the global society has been dependent on conventional fossil fuels, such as coal, oil, natural gas, etc., to provide around 75% of its energy needs. These fuels, however, have some unavoidable challenges and problems. Studies have shown that conventional and unconventional oil and gas resources could last for another few decades with current exploration and extraction technologies (maybe five decades for oil and fifteen for natural gas) (Ottinger, 2005).

In addition, based on the uneven geographical distribution of fossil fuel carriers, more than 90 percent of the proven oil reserves are located in only 15 countries (Ruta & Venables, 2012). Although countries with oil reserves should theoretically be able to access the fruits of modern scientific developments and innovations, such a situation creates a serious barrier for sustainable and inclusive development in other parts of the world. Around 1.2 billion people, or 16.5% of the global population, mostly in sub-Saharan Africa and developing Asia, do not have access to electricity (IEA, 2013). The countries with fossil fuel reserves are blessed as finite sources because those people cannot afford the energy price, but new energies are theoretically infinite. Hence, switching the focus from non-renewable fossil fuels to renewables so as to keep the stream of overall sustainable and clean development activities is known as a better and viable alternative, even though there are some inherent initial concerns, which are not unique to renewable energy generation but are present whenever there are new technological developments.

The threat of climate change is a shared concern of humanity (United Nations, 1998) and threatens sustainable and equitable development. Nearly two-thirds of the world's greenhouse-gas emissions come from fossil fuels, which contribute to global warming leading to climate change (Nhamo et al., 2020; IEA, 2015). It is therefore recommended that 75% of all fossil fuel reserves, i.e., 35% of petroleum, 52% of natural gas, and 88% of coal reserves worldwide, be left unused until 2050 in order to keep the temperature variation relative to 1900s under 2°C (McGlade & Ekins, 2015; IEA, 2014). In the world energy industry, it is recommended to change these sources or at least increase the share of renewable energy carriers, including solar, wind, hydropower, ocean, biomass, and hydrogen (Adib et al., 2015). Although fossil fuel prices have declined dramatically in the last decade, clean energy still produced an estimated 23.7% of the world's electricity in 2017. Hydropower, wind, bioenergy, solar, and geothermal energy, respectively, contributed 70%, 15%, 8%, 5%, and 1%, and marine energy contributed the remaining 1% (IRENA, 2017).

Having collaborated successfully on the Millennium Development Goals in 2015, the United Nations members conducted the 2030 Agenda for Sustainable Development and Sustainable Development Goals to end poverty, protect the environment, and promote sustainable development. Although it is difficult to define precisely (Holden et al., 2014), it requires energy savings on the demand side, efficient energy production, continuous flow of energy with fewer environmental impacts (Lund, 2007), and requires the percentage of renewable energy to be more than 27% (IRENA, 2017).

Key Terms in this Chapter

Energy Charter Conference: Article 33 of the ETC establishes the Energy Charter Conference, which is the governing and decision-making body of the Organisation and has United Nations General Assembly observers status in the resolution 62/75 adopted by the General Assembly on 6 December 2007. Members consist of Countries, and Regional Economic Integration Organisations signed or acceded to the treaty and represented in the conference and its subsidiary bodies. The conference meets regularly to discuss issues affecting energy cooperation among Members, review the implementation of the treaty and PEEREA provisions, and consider new activities within the Energy Charter framework.

International Energy Charter: The International Energy Charter is a non-binding political declaration underpinning key principles for international energy cooperation. The declaration attempts to reflect the changes in the energy world that have emerged since the development of the original Energy Charter Treaty in the early 1990s. The International Energy Charter was signed on 20 May 2015 by 72 Countries plus the EU, Euratom, and ECOWAS at a Ministerial conference hosted by the government of the Netherlands.

Energy Community: The Energy Community, also referred to as the Energy Community of southeast Europe, is an international organization established between the European Union (EU) and several third countries to extend the EU internal energy market to Southeast Europe and beyond. With their signatures, the Contracting Parties commit themselves to implement the relevant EU energy acquis communautaire, develop an adequate regulatory framework, and liberalize their energy markets in line with the acquis’s acquis under the treaty.

Energy Charter Treaty: The Energy Charter Treaty (ECT) is an international agreement that establishes a multilateral framework for cross-border cooperation in the energy industry. The treaty covers commercial energy activities, including trade, transit, investments, and energy efficiency. In addition, the treaty contains dispute resolution procedures both for States Parties to the treaty (vis-a-vis other States) and between States and the investors of other States, who have made investments in the former territory.

European Integrated Hydrogen Project: The European integrated Hydrogen Project (EIHP) was a European Union project to integrate United Nations Economic Commission for Europe (UNECE or ECE) guidelines and create a basis for ECE regulation of hydrogen vehicles the necessary infrastructure replacing national legislation and regulations. This project aimed to enhance the safety of hydrogen vehicles and harmonize their licensing and approval process.

Jus Cogens: Jus cogens, also known as the peremptory norm, is a fundamental and overriding principle of international law. It is a Latin phrase that translates to ‘compelling law.’ It is absolute, which means that there can be no defense for the commission of any act prohibited by jus cogens.

EurObserv’ER: EurObserv’ER is a consortium dedicated to monitoring the development of the various sectors of renewable energies in the European Union. Created in 1999 by Observ’ER, the Observatory of renewable energies in France, it is composed of five other partners: ECN (The Energy research Centre of the Netherlands), IEO (EC BREC Institute of Renewable Energetic Ltd), RENAC (Renewables Academy AG), FS (Frankfurt School of finance and management) and IJS (Institut Jozef Stefan ).

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