Although there's a need for China to reduce energy use, the
country shouldn't become the world scapegoat for surging oil prices
and a tight energy supply, according to the International Energy
Agency (IEA).
"Increased demand for energy from China isn't the only thing
driving up the global oil price," said Noe Van Hulst, director of
Long-term Cooperation and Policy Analysis at the IEA. "In fact,
market fundamentals demonstrate that as long as investment goes to
fuelling oil production, there will be enough oil at affordable
prices for the world economy."
The development of emerging economies such as China and India
did exert pressure on global energy prices, Van Hulst said. But it
was wrong to say they're the only forces driving prices up, he
added.
There would be enough oil reserves for the development of the
global economy, Van Hulst said. The key is whether there is enough
investment put into production.
The Paris-based IEA is an energy policy advisor for 26
industrialized nations and is considered the world's energy
watchdog. The organization predicts the price for oil and natural
gas will stay high into the future due to robust demand and
restricted investment in production.
By 2010, however, oil prices may fall as investments in
production and technology improvements increase, Van Hulst
said.
The IEA's latest World Energy Outlook says the world is being
confronted by a lack of adequate and secure energy supplies at
affordable prices as well as environmental hazards triggered by
over-consumption.
According to the IEA report, "The need to curb the growth in
fossil-energy demand, to increase geographic and fuel-supply
diversity and to mitigate climate-destabilizing emissions is more
urgent than before." In the report, the IEA called for China to cut
back on oil imports and put restrictions on energy use.
Van Hulst advised that China should consider alternative energy
options and rely on policy guidance to enhance energy efficiency.
"Stricter and higher energy efficiency standards involving emission
benchmarks, power generation or other areas should be applied by
the authority to curb demands," Van Hulst said. "What should follow
next is to encourage the adoption and development of cleaner and
renewable energy resources such as clean coal, wind and solar
energy."
China should also reduce or stop subsidizing dirty energy
industries and businesses such as coal production, he said.
Han Wenke, deputy director of the Energy Research Institute
under the National Development and Reform Commission, said the
government should support renewable energy resources. "Developing
renewable energy is investing for the future and the state should
subsidize promising options," Han said.
(China Daily November 28, 2006)