Asian pledge on oil alternatives From correspondents in Cebu January 15, 2007 06:46am
LEADERS across Asia are set to endorse a pledge to move toward nuclear and other alternative energies to help cut the region's dependence on fossil fuels.
Amid concerns about energy security, the so-called East Asia Summit (EAS) between 16 nations from China and Japan to Australia and India, meeting tomorrow for only the second time, will also vow to open up regional energy markets.
A draft of the declaration acknowledges that oil still underpins their economies and that their dependence on crude will not disappear overnight, but calls for better efforts to find future alternatives.
Biofuels, natural gas, nuclear power for selected countries, hydroelectricity and renewable energy should reduce the need for fossil fuels in future, the draft said.
Much of the document reaffirms the bloc's collective commitment to ensuring energy security which was first issued in the inaugural meeting of the EAS in Malaysia in 2005.
The draft does not mention the stockpiling of oil, a possibility which has been mooted as the energy-hungry region looks to cut its dependence on oil imports from the volatile Middle East.
Calls to reduce dependence on oil intensified after prices surged to historic peaks last year. While prices have dropped since, their continued volatility - owing in part to geopolitical tensions - remains a threat.
China, one of the world's biggest energy consumers, has widened its search for energy sources, including venturing as far as Africa.
The declaration said: "Renewable energy and nuclear power will represent an increasing share of global supply."
The leaders will call for a greater effort in the search for new and renewable energy resources and technologies, with the focus on biofuels.
Biofuels - mainly ethanol petrol and biodiesel - are unlikely to fully take the place of oil as an alternative fuel source in the short term.
Malaysia, the world's biggest producer of palm oil, is pushing to develop biofuel from the plant, while the coconut-producing Philippines has offered to host a regional hub for ethanol fuel.
Proposals to stockpile oil are also fraught with difficulties, among them where to store supplies as well as provisions for access and conditions for a drawdown.
Funding is also a problem, especially with plans to build refineries. In the meantime, ASEAN must compete for investments as oil exploration firms look for prospects in other parts of the world.
The high cost of alternative energy sources and tough environmental standards are also hampering efforts to diversify away from oil.
The EAS joins Australia, China, India, Japan, New Zealand and South Korea with the 10 nations of the Association of Southeast Asian Nations (ASEAN).
ASEAN groups Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
(20min delay)