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ASIA COOPERATION DIALOGUE (ACD) ENERGY ACTION PLAN

I.  Introduction
Energy is one among the twenty areas of cooperation in the ACD. The increasing volatility in oil price and the growing energy demand in the region pose challenges on energy supply security (for consumers and producers) and economic stability of each in the Asian region. These challenges necessitate further collaborative efforts among and between energy exporters and importers. The ACD with all its complementarities and diversities is seen as an appropriate venue to address the increasing energy demand in Asia which is expected to account for 35 percent of the world's energy demand by 2020.

Several meetings have been held within the ACD framework to advance energy cooperation among its member states. The 3rd ACD Ministerial Meeting in Qing Dao, China, in June 2004, agreed on promoting energy cooperation as listed in the Qing Dao Initiative. This Initiative listed priority fields of cooperation, which include: exchanging of information and views; encouraging cooperation in exploration and exploitation, infrastructure; promoting conducive environment for investment; strengthening cooperation in energy efficiency and conservation and renewable energy; and promoting human resource development and capacity building.

At the 1st ACD Energy Forum held in Bali in September 2005, the need to formulate an ACD Energy Action Plan was underscored to serve as a blue print for a collaborative approach in implementing energy programs and projects for the realization of enhanced regional security and sustainability of energy resources and technologies. The Doha Declaration of the ACD Ministerial Meeting in May 2006 welcomed the Initiative and reflected the sense of ACD members to accord "priority in energy security, research and assessment in energy, energy infrastructure development and encouraging member countries to explore the possibility of re-investing revenues that accrue from the energy trade in the ACD Countries". On the other hand, their Manama Declaration, the outcome document of the Conference on Energy and Climate Change held in November 2008, emphasized the need to strengthen on efforts made by member states in promoting and strengthening of relations in Asia, in all primary areas of cooperation, and in particular in energy and climate change.

The growing awareness on the importance of new and renewable energy sources are further reasons for an effective cooperation in the energy field for the ACD. Therefore, the ACD Energy Action Plan is necessary to be the basic document on energy cooperation among ACD member states.

Further to these declarations and recommendations from previous ACD ministerial meetings and other ACD energy related meetings is the outcome of the first ACD Summit held in Kuwait in October 2012. Acknowledging that energy security is a "regional and global challenge facing ACD member countries", and that "sustainable energy is a key factor in achieving prosperity and economic growth in Asia", the ACD member states committed to move forward its energy cooperation with the "review, finalization. And adoption of the ACD Energy Action Plan."

The Draft Energy Plan of Action was considered by the ACD Co-Prime Movers on Energy during the 3rd ACD Energy Working Group Meeting on 27.03.2013 in Dushanbe, Tajikistan and finalized the draft during the 4th ACD Energy Working Group Meeting on 23rri November 2013 in Manama, Kingdom of Bahrain.

 II.  Plan of Action

A.  Areas of Cooperation
The Plan of Action shall enable the ACD member states to build a cohesive cooperation forum that will ensure the institutionalization and materialization of energy cooperation in Asia. It shall serve as framework in ensuring energy security and promoting energy accessibility and sustainability. It is intended to be implemented for a period of five (5) years reckoned from its adoption during the 12th ACD Ministerial Meeting in Manama, Bahrain in November 2013. It will essentially consist of five (5) thematic core areas of cooperation in order to promote energy security, as follows:

1. Development and utilization of renewable energy resources and other non-conventional fuels
2. Exploration, development and utilization of indigenous energy resources using efficient and environment-friendly technologies as well as the promotion of energy access
3. Promotion of energy efficiency and conservation measures/ programs
4. Establishment of regional energy infrastructure network and trade facilitation
5. Encouragement of new investments in environment-friendly energy fossil fuel products.

B.  Implementation of Areas of Cooperation
In implementing these five thematic core areas of cooperation in the region, it is proposed that ACD member states need to consider actions as follows:

1. Promoting information exchange and sharing of best practices on energy policies, plans and programs among the ACD member states
   1. Encouraging states to exchange and share views on their domestic energy situations and the international energy market with a view to facilitating mutual benefits for both, consumers and producers in Asia in various energy sources
   2. Facilitating information exchange in innovative development sphere and transfer of energy related technologies in production, consumption and trade in energy resources
   3. Disseminating information on clean combustion techniques and technologies.
2. Synchronizing policies and strategies of ACD member states on exploration, development and utilization of energy resources
   1. Encouraging close collaboration to harmonize specification and standardization of energy  services and technologies, where appropriate, to encourage trade and investment in the region
   2. Establishing cooperation on energy exploration to increase the potential of new energy resources in ACD member sales in consultation with the relevant agencies and institutions
   3. Promoting renewable energy and energy efficiency improvement.
3. Promoting an investor-friendly environment in ACD member states to attract private sector participation on energy development.
   1. Strengthening coordination and cooperation on the possible establishment of a regional network that will facilitate the efficient transport and transmission of energy to individual member states
   2. Improving energy access by strengthening bilateral and regional power interconnectivity that will address the energy supply requirements of ACD member states especially in providing rural electrification services
   3. Promoting cooperation in securing gas supply and demand as well as other related businesses between and among ACD member states
4. Enhancing capacity building of human resources on all aspects of energy exploration, development and utilization
   1. Strengthening existing institutions and establishing new institutions, where necessary, for training and human resources development
   2. Promoting sharing and transfer of technology including training and exchange of best practicesEncouraging joint research programs and activities amongst relevant institutions

III.  Source of Funding
Unless otherwise agreed, cost of activities under this action plan should be based on the contributions of ACD interested states on a voluntary basis and the assistance by the third parties (both producers and consumers), including international organizations.

ACD will work closely with other regional and international organizations in the energy sphere to maximize impact and promote complementarily of work.

IV.  Monitoring and Evaluation
The Energy Co-Prime Movers and other ACD Members States may suggest and promote any other activities not listed in the Annex, making the Plan of Action a living document.

The progress on the implementation of the Plan will be reviewed periodically by the Energy Co-Prime Movers.

LIST OF PROPOSED AND POSSIBLE ACTIVITIES
Annex 1: Promoting information exchange and sharing of best practices on energy policies, plans and programs among the ACD Member States.

Annex 2: Synchronizing policies and strategies of ACD member states on exploration, development and utilization of energy resources.

Annex 3: Promoting an investor-friendly environment in ACD Member States to attract private sector participation on energy development.

Annex 4: Enhancing capacity building of human resources on all aspects of energy exploration, development and utilization.

Source:SNP Infra Research