Caspian Energy Initiative

Project

IIED’s Caspian Energy Initiative aims to promote transparency and good governance in the energy sector. We have just completed the latest phase of this initiative – a series of dialogues in Turkmenistan, Kazakhstan and Azerbaijan. The aim of these dialogues was to bring industry, government and civil society stakeholders together to discuss key issues and develop plans for future action. Background papers and workshop reports are available below.

Previous work by IIED in the Caspian Region includes the FCO-supported project ‘Enhancing the stability of the oil and gas investment climate in the Republic of Kazakhstan’ (2008-2010) and our Sustainable development co-operation with BP in Azerbaijan  (2006-2009). This also relates to our ongoing work on Managing risks and opportunities in oil and gas industry contracting chains.

Background

A series of multi-stakeholder dialogues in Turkmenistan, Kazakhstan and Azerbaijan took place in 2011-12 to promote transparency and good governance in the energy sector. A workshop in Turkmenistan was the first in that country to discuss the Extractive Industries Transparency Initiative (EITI)  in a multi-stakeholder forum. Further meetings focused on broader issues around transparency, good governance and sustainable development in the energy sector in Kazakhstan and Azerbaijan. The dialogues were funded by the UK Foreign and Commonwealth Office (Astana, Kazakhstan); the Organisation for Security and Co-operation in Europe (OSCE) (Astana); the Soros Foundation (Almaty, Kazakhstan); and the UK Department for International Development (DfID).

Dialogue 1: Introduction to EITI and principles of good governance in the oil and gas sector (28 September 2011, Ashgabat, Turkmenistan)
The Extractive Industries Transparency Initiative (EITI)  is a voluntary global initiative to promote revenue transparency in the oil, gas and mining sectors. It requires countries to declare the revenues they receive from companies, and requires companies to declare what they pay. Turkmenistan has not yet signed up to EITI. At a workshop on 28th September 2011 participants discussed EITI and broader issues of transparency and good governance in the oil and gas sector. The workshop was hosted by the British Embassy and the Turkmenistan Ministry of Oil and Gas. This was the first meeting of its kind to take place in Ashgabat.

Introduction to the EITI and principles of good governance in the oil and gas sectorThe workshop report ‘Introduction to EITI and principles of good governance in the oil and gas sector: workshop report.’ can be viewed or downloaded in English or Russian.

 

Dialogue 2: Building a green economy in an oil- and gas-producing country (24-26 November 2011, Astana, Kazakhstan)
The Green Economy concept is gaining currency globally, and is embedded in the Government of Kazakhstan’s Green Bridge programme, which emphasizes low-carbon development and ‘greening’ of industry and technologies. In preparation for Rio+20, the Government of Kazakhstan aims to integrate this programme into the mainstream economy and develop energy projects that correspond both to core business and Green Economy principles.

Reports from the workshop can be found here:

  1. Green Economy: international perspectives (Steve Bass, IIED)
  2. Зеленая экономика –международные перспективы (Steve Bass, IIED) (Russian)
  3. OSCE and energy security (Mr. Richard Wheeler, Energy Security Officer, Office of the OSCE Coordinator for Economic and Environmental Activities, Vienna)
  4. Национальный доклад РК для РИО+20 [Kazakhstan national report to Rio+20] (Bulat Yessekin)
  5. Формирование «Глобальной энергоэкологической стратегии устойчивого развития на XXI век» для Конференции ООН по устойчивому развитию «РИО+20» в 2012 году [Global strategy on energy and environment, Kazakhstan submission to Rio+20] (Pivovarov, Parasat) (Russian)
  6. The Green Economy challenge in an oil-abundant country: experience from Azerbaijan – (Ingilab Ahmadov, Public Finance Monitoring Centre, Azerbaijan)
  7. Can the oil and gas industry become a green economy leader? (Emma Wilson, IIED)
  8. Проекты ПРООН/ГЭФ и Правительства РК в области энергетики и изменения климата [Energy and climate change projects of UNDP/GEF and the government of Kazakhstan], Gennady Doroshin (Russian)
  9. The workshop report 'Next steps for a green economy working group in Kazakhstan' can be downloaded in English here.
     

Dialogue 3: Moving beyond EITI in Azerbaijan (February 2012, Baku)
This will be a one-day stakeholder workshop in Baku dedicated to best practice transparency, accountability and good governance in the development of extractive sector in Azerbaijan and going beyond basic EITI (Feb 2012) Azerbaijan similarly seeks to develop a process and activities ‘beyond EITI’. Local stakeholders seek to focus on revenue distribution.

EITI and beyond: Perspectives from AzerbaijanThe workshop report ‘EITI and beyond: perspectives from Azerbaijan.’ can be viewed or downloaded in English

 

Dialogue IV: Moving beyond EITI in Kazakhstan (April 2012, Aktau)
A one-day stakeholder workshop in Aktau dedicated to best practice transparency, accountability and good governance in the development of extractive sector in Kazakhstan and going beyond basic EITI. The laws on the Subsurface and Local Content, and tax and environmental regulations have contradictions that remain unaddressed, and despite the impact of EITI in Kazakhstan, transparency in the energy sector still needs to be improved. Transparency needs to be applied via specific local policy provisions on social investment, environmental decision-making and community participation.

The IEA’s World Energy Outlook 2010 also identified the Caspian region as one of the most energy inefficient in the world. The energy intensity in GDP of the region as a whole in 2008 was more than 30% higher than that of Russia, more than double the global average and over three times that of Europe. As well as supporting energy security, our project will also therefore feed into UK climate change objectives by opening dialogue on energy efficiency and low carbon.

Previous work by IIED in the Caspian region includes the FCO-supported project ‘Enhancing the stability of the oil and gas investment climate in the Republic of Kazakhstan’ (2008-2010) . This work also relates to our initiative on Managing risks and opportunities in oil and gas industry contracting chains.

Publications

Introduction to EITI and principles of good governance in the oil and gas sector,  Emma Wilson (2011), IIED | in Russian.

EITI and beyond: Perspectives from Azerbaijan,  Ingilab Ahmadov, Emma Wilson (2012), IIED

Donors

UK Foreign & Commonwealth Office (Astana, Kazakhstan)

The Organisation for Security and Co-operation in Europe (OSCE) (Astana)

The Soros Foundation (Almaty, Kazakhstan)

UK Department for International Development (DfID)

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