April 30, 2008	Wednesday	Rabi-us-Sani 23, 1429

RAWALPINDI, April 29: The United Nations has proposed a trans-Asian energy system for enhanced regional energy security for a sustainable social and economic development in the 21st century.

“Asia and the Pacific as a region is rich in energy resources, but these resources are unevenly distributed, trade in energy is considerably imbalanced,” says “energy security and sustainable development in Asia and the Pacific,” a theme study released by the United Nations Economic and Social Commission for Asia and the Pacific (Escap).

Some 1.7 billion people in the region are using traditional biomass fuels, and one billion people still lack access to electricity.

Spiralling energy prices, the study notes, pose a serious threat to environmentally sustainable economic development which is crucial in helping the poor become a part of the region’s remarkable economic success story.

The energy system could be further developed, and indeed, greater regional and sub-regional cooperation could create a broad energy market that would make the region self-sufficient.

The study notes that the governments were individually seeking and taking measures to ensure a steady supply of energy resources to sustain their economic growth.

The study says in the era of globalisation, a collective cooperation framework, based on cooperation rather than competition, could supplement national efforts and lead to a “win-win” solution for all.

A trans-Asian energy system could be defined as an “Asia-wide integrated energy system linking and synergising sub-regional energy systems.”

This would aim to achieve greater cooperation, coordination and integration -- allowing countries to share information and expertise, leading to a system of trans-boundary energy trade and exchange, it points out.

An integrated region-wide energy system will allow countries to balance supply and demand within the region in an efficient manner -- opening up the potential for energy trade between countries that do not share borders or belong to the same sub-region. This would benefit both supplying and consuming countries as well as countries of transit.

The trans-Asian energy system would inevitably encounter a number of challenges and barriers.

It would be important, therefore, to build political trust among member states so that they are prepared to be interdependent and share risks and rewards. This kind of participation can be fostered by joint activities and studies.

In order to ensure commercial viability, the trans-Asian energy system would also need to engage other stakeholders, in particular the private sector.