In the fourth quarter of 2013, the province of Alberta and China entered into a non-binding cooperation agreement to increase energy trade between the respective jurisdictions. The agreement explicitly acknowledges Alberta's major role in global resource development and China's growing need for a reliable, competitive and sustainable supply of energy.
The agreement sets forth five guiding principles intended to facilitate its successful implementation. These include:
- the adoption of a comprehensive approach to energy policy
development, associated investment and trade, environmental and
regulatory policy, as well as research, technology and information
sharing;
- a commitment to continuous improvement in responsible energy
development, including an emphasis on environmental stewardship and
sustainability;
- the respect for intellectual property and related international
standards and practices;
- a commitment to timely information sharing;and
- an acknowledgement that the industry will maintain a crucial role in the successful implementation of the agreement.
In an effort to operationalize the agreement, the participants have agreed to collaborate in the formalization of a framework that ensures direct dialogue between the participants as well as relevant stakeholders. In doing so, the participants aim to develop policy initiatives that fulfil the objectives of the agreement by facilitating partnership and business opportunities for public and private entities in Alberta and China as well as develop a joint work program in the areas of sustainable energy.
While the agreement does not impose any legally binding obligations on the participants, it is the first of its kind between the Chinese central government and a Canadian province. The agreement gives Alberta direct access to decision-makers at China's highest levels and may prove to be a critical step towards increasing trade with the world's largest growing economy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.