H.E. Benita Ferrero-Waldner, Member of the European Commission and Commissioner for External Relations and European Neighbourhood Policy, outlines from the Ministers’ Rostrum efforts to develop a focused external energy security policy as an integral part of the EU’s foreign policy in a new global energy landscape. Cautioning that the world no longer can take secure and affordable energy for granted, Commissioner Ferrero-Waldner notes internal and external measures to be taken and recognizes the important role that the International Energy Forum has to play in reminding producer, consumer and transit countries of their common interest in a non-discriminatory and competitive world energy market. Commissioner Ferrero-Waldner and Energy Commissioner A. Piebalgs convened a Conference on the EU’s External Energy Policy in Brussels in November 2006, which the Secretariat was honoured to attend.

Before assuming her present position in 2004, Commissioner Ferrero-Waldner, served as Federal Minister of Foreign Affairs of Austria from 2000. Prior to being appointed Minister, she served as State Secretary for Foreign Affairs from 1995. Her earlier positions include that of Chief of Protocol of the United Nations Secretariat in New York and posts in the foreign service of Austria.

The world has recently entered a new energy landscape. After a long period of relative stability we can no longer take secure and affordable energy supplies for granted.

We see the rising demand for energy imports from an increasing number of countries, declining production from the mature hydrocarbon reserves in Europe and America, the pressing challenge of tackling climate change, and the high and volatile energy prices that are a combination of more than a decade of underinvestment in many producing areas as well as increasing geopolitical complexities and risks surrounding energy supply and transportation. Security of energy supply is at the top of the political and business agenda.

Within the EU, there is a growing consensus on the importance and advantages of our 27 Member States’ working together. The energy package proposed by the Commission in January and endorsed at the European Council in March has established a clear action plan to start tackling these challenges - both internally and externally.

Internally, this includes the achievement of a genuine EU-wide internal energy market; plans to link up Member States’ energy infrastructure; increasing the solidarity over national oil stocks and examining options for increasing gas security, improvement of energy efficiency by 20% by 2020, a binding overall EU target of 20% of renewable energy by 2020, a binding minimum target of 10% of biofuels in the transport sector by 2020 and the development of a European Strategic Energy Technology Plan.

These are internal measures that the EU itself can take by itself. Nevertheless, our demand for fossil fuels is likely to continue to grow, and these resources will increasingly have to be supplied by countries outside the EU.

However, we have to recognise that this carries certain additional technical and political risks - risks such as disruptions in supplies caused by technical problems with pipelines resulting from a lack of sufficient maintenance or investment, specific adverse climatic conditions or the increasing threat of terrorism. There are also concerns in many major consumer countries that, in the current market conditions, supplier countries may try to use their market power in an uncompetitive or even political manner.

These concerns need to be addressed in a pragmatic way. Our relationships in the energy sector are and must remain mutually beneficial. The energy that the EU for example buys from producer countries contributes very significantly to their economic growth and the improved living conditions of their populations. In turn, the stable flow of reasonably priced energy remains an important motor for Europe’s economic growth.

At the EU level, there has been a clear focus over the past year on developing a focused external energy security policy as an integral part of the EU’s foreign policy. This was confirmed at the March European Council, which defined an action plan to 2009 that prioritises consumer-to-producer as well as consumer-to-consumer and consumer-to-transit countries dialogues and partnerships. This is where the International Energy Forum has an important role to play: to remind producer, consumer and transit countries that they all have a common interest in a non-discriminatory and competitive world energy market.

Facilitating objective discussions on issues of concern and encouraging all participants to recognise the commonality of their interests is the most effective way of ensuring global energy security and of underpinning global economic growth. This, combined with a proactive approach to the post-20l2 negotiations on climate change, is the cornerstone to ensuring global energy sustainability.