Cooperation with the International Energy Charter (IEC)

The International Energy Charter was established to eliminate the economic disunity that previously existed in Europe in the early 1990s with the end of the Cold War. The prospects for mutually beneficial cooperation between the West and the East were not so clear, thus establishing a need to ensure the development of energy cooperation between Eurasian states. On the basis of these considerations, the Energy Charter process emerged.
The common approach adopted between energy exporters and importers in a period of growing globalisation and interdependence in the world is that a more balanced and effective framework for international cooperation can be provided by multilateral rules rather than bilateral agreements. Therefore, the Energy Charter plays an important role on the basis of principles of sustainable development and open and competitive markets in the context of efforts to create a legal framework for global energy security.
The Energy Charter Treaty was signed in December 1994 and came into force in 1998. So far, it has been signed by 55 States, the European Union and Euratom. The Treaty was developed on the basis of the European Energy Charter in 1991. Although the Treaty itself is a statement of political will that promotes energy cooperation between the East and the West, the Energy Charter is a unique legally binding multilateral document.
The main purpose of the Energy Charter Treaty is to strengthen legal norms in the energy sector by establishing uniform rules and to achieve the compliance with these rules by all participating governments, while minimising the risks associated with investment and trade in the energy sector.
Azerbaijan signed the Energy Charter Treaty on December 17, 1994. The document came into force on April 16, 1998.
Azerbaijan has been cooperating with the International Energy Charter for more than twenty years. Since Azerbaijan agreed to the Hague II document of the International Energy Charter, a new stage started in the relations with the organization.
Thereafter, meetings of the Implementation Group of the International Energy Charter (IEC) and the Budget Committee were held in Brussels on September 14-15, 2017. At the meetings, the financial and audit reports of 2016, budget expenditures of 2017, the work programme project for 2018-2019, perennial commitment and other issues were discussed. Opinions and proposals were also raised on the Ashgabat Declaration, ‘Assessment of Investment Risks in the Energy Sector - Pilot Report of 2017’ and other topics. A representative from the Ministry of Energy attended the meeting.
On October 19-20, 2017, the Implementation Group, Strategy Group and Budget Committee of the International Energy Charter held final meetings for 2017 in Brussels. At the meetings, general provisions on investment agreements in the energy sector, reports on potential standardisation of liquefied natural gas contracts, consultations on multilateral framework agreement on transit of energy resources, energy efficiency in Kyrgyzstan, the Declaration of Ashgabat Energy Charter, assessment of energy investment risks, the 2018 Tehran International Energy Conference and other issues were discussed. A representative from the Ministry of Energy attended the meetings.
The delegation, led by the Deputy Minister of Energy, participated in the 28th Session of the Energy Charter Conference in Ashgabat, Turkmenistan, on November 28-30, 2017.
The next meeting of the International Energy Charter Implementation Group and the first meeting of the subgroup on modernisation were held in Brussels on January 31 - February 3, 2018. Transit, energy efficiency, modernisation of the Energy Charter agreement and assessment of energy investment risks were discussed at the meetings. Discussions were held on global energy cooperation, investment promotion and protection standards, transit issues, regulation in the Energy Charter Treaty, as well as amendments to some provisions of the agreement, including new trends in international energy agreements. In 2020, the decision was made for Azerbaijan to take over chairmanship of the Energy Charter Conference. A representative from the Ministry of Energy attended the meetings.
On March 15, 2018, a round table on the draft law ‘On Energy Efficiency’ was held in Baku. The Minister of Energy of the Republic of Azerbaijan, Parviz Shahbazov, Secretary-General of the Energy Charter Secretariat, Urban Rusnák, as well as governmental bodies, international organisations and experts all attended the meeting.
On March 15, 2018, with the support of the Energy Charter, a presentation of the draft law of the Republic of Azerbaijan ‘On the Efficient Use of Energy Resources and Energy Efficiency’ was held.
On March 17-26, 2018, employees of the Ministry of Energy visited Brussels to participate in discussions on the same draft law of the Republic of Azerbaijan ‘On the Efficient Use of Energy Resources and Energy Efficiency’.
On May 21, 2018, within the framework of the E4Energy programme, a meeting was held with the participation of EC experts and representatives of relevant bodies in the Ministry of Energy in connection with the methodology for the preparation of the long-term development strategy of the energy sector.
On July 5, 2018, the Ministry of Energy held a meeting with the participation of relevant bodies and EC representatives to study international experience in the development strategy of the energy sector with the support of the EU4Energy programme.
On September 30, 2019, a representative from the Ministry of Energy participated in a ministerial panel at the event ‘Energy Investment Risk Assessment in the Energy Sector 2019’ (EIRA2019), organised by IEC in Brussels.
On October 24, 2019, the International Energy Charter Forum was held in Baku. Minister of Energy, Parviz Shahbazov, and Secretary General of the Energy Charter, Urban Rusnák, made opening remarks at the forum dedicated to ensuring energy transition through technology and policy innovations.
On December 10-11, 2019, the 30th Conference and Ministerial Meeting of the International Energy Charter was held in Brussels, Belgium. Deputy Minister of Energy, Samir Valiyev, attended the event.

Since 2019, employees of the Ministry of Energy have started to participate in the temporary secondment programme of the EC Secretariat. In 2019, two employees of the ministry were sent to Brussels, each for three months. Also, the deployment of representatives who will work in the Secretariat on a permanent basis during Azerbaijan’s chairmanship of the EC is underway.
The Ministry of Energy of the Republic of Azerbaijan and the International Energy Charter cooperate in the field of energy efficiency. Within this cooperation, an agreement was reached on conducting an In-Depth Review of the Energy Efficiency Policy of the Republic of Azerbaijan. The recommendation part of the document prepared by the International Energy Charter was discussed at the meeting of the Working Group consisting of representatives of relevant bodies established for the development of the National Action Plan on energy efficiency on September 19, 2019. An employee of the Ministry of Energy took part in the discussions of the draft document in Brussels. The final document was posted on the website of the International Energy Charter:
https://www.energycharter.org/fileadmin/DocumentsMedia/IDEER/IDEER-Azerbaijan_2020.pdf

Within the “EU4Energy” program was developed with the support of the Ministry of Energy of Azerbaijan and  the International Energy Charter, the next meeting of the Working Group on the “National Action Plan on Energy Efficiency of Azerbaijan” was held with the participation of international organizations, government agencies and experts on 29 January 2020.

A video conference was held with the participation of Minister of Energy Parviz Shahbazov and Secretary General of the International Energy Charter Urban Rusnak on 4 July 2020. The issues related to the modernization of the Energy Charter Treaty, as well as the measures to be taken within the Azerbaijan's chairmanship of the Energy Charter Conference in the current year were discussed.

Within the Azerbaijan's chairmanship of the International Energy Charter (IEC) Conference in 2020, the third report on “Energy Investment Risk Assessment” (EIRA 2020) was presented online 7 October 2020. Deputy Minister of Energy Samir Valiyev and Secretary-General of the International Energy Charter Urban Rusnak made a speech at the event.

Baku International Energy Charter Forum started in video conference format  in cooperation with the Ministry of Energy of the Republic of Azerbaijan  and International Energy Charter under the Chairmanship of Azerbaijan on 28 October 2020. The Minister of Energy of Azerbaijan Parviz Shahbazov, Secretary General of the Energy Charter Urban Rusnak and Director of Energy Policy, Directorate-General for Energy, European Commission Ms. Cristina Lobillo Borrero delivered a speech at the forum on “Transition to renewables in power generation, transport, heating and cooling: modern challenges and trends”.  The Forum will continue its work in two sessions on the topics of support to renewable energy sources - legal, technical and financial aspects, promotion of energy efficiency, exchange of best practices and knowledge in this direction.

Secretary-General of the International Energy Charter issues a statement on energy security in the South Caucasus in October 2020. Secretary-General Urban Rusnak urges all parties involved to act in line with their international commitments and to refrain from any action that could affect critical energy infrastructure or significantly disrupt or interrupt the energy supply.

On December 16-17, the 31st meeting of the Energy Charter Conference in videoconference format was held under the chairmanship of Azerbaijan. Nearly 100 representatives from more than 30 countries and a number of international organizations took part in the two-day event. On the first day, the procedural matters of the meeting were reviewed and on the second day, a Ministerial Meeting on "Energy efficiency for all: Innovations and investments" was held. 

On 21 December 2020, SOCAR hosts 44th Conference of Industry Advisory Panel of Energy Charter.