What Role Can the G20 Play in Global Energy Governance? Implications for China's Presidency
| DOI | http://doi.org/10.1111/1758-5899.12288 |
| Published date | 01 May 2016 |
| Author | Xunpeng Shi,Philip Andrews‐Speed |
| Date | 01 May 2016 |
What Role Can the G20 Play in Global Energy
Governance? Implications for China’s
Presidency
Philip Andrews-Speed and Xunpeng Shi
Energy Studies Institute, National University of Singapore
Abstract
The prevailing architecture of global energy governance is fragmented, uncoordinated and failing to yield the required out-
comes. This article examines the argument that the Group of 20 (G20) can provide a leadership role to improve the quality of
global energy governance. Energy has characteristics of a global public good and the energy system resembles a complex
adaptive system. These observations imply that the global governance of energy should be polycentric and this, in turn,
entails a high level of coordination and trust between governing actors. Clubs and networks are institutions that can usefully
enhance coordination and trust. In this respect, the G20 can be seen as a club at the hub of networks that can play a key role
in improving the global governance of energy and China’s presidency of the G20 in 2016 provides a unique opportunity for
the G20 to prove its worth.
Policy Implications
•The effective governance of energy at a global scale requires a step change in the level of collective action between
nations, but it is unrealistic to create a new institution to undertake this task. The institutions of global energy governance
have a strong polycentric character that requires greater trust and coordination in order to be more effective.
•As a club at the apex of multiple networks, the G20 is well placed to shoulder leadership, trust-building and coordinating
roles in global energy governance, not least because its membership accounts for 75 per cent of global commercial
energy consumption and 80 per cent of CO
2
emissions from energy use.
•Key priorities for the G20 include improving the transparency of information relating to energy and enhancing coordina-
tion between existing international organisations in the field of energy.
•China is the world’s largest consumer of energy and is heavily dependent on international markets for energy commodi-
ties, investment and equipment. It is therefore well-placed and has the incentive to use its presidency of the G20 to push
forward a global energy agenda.
Energy is just one of many fields in which the call for effec-
tive global governance is becoming louder (Avant et al.,
2010). Energy is of particular importance to all nations and
societies as it is a vital ingredient for a modern economy,
yet it is both under-provided and over-used. At the same
time energy is creating serious negative environmental and
social externalities, the most prominent of which is global
climate change. Energy markets are increasingly global in
reach, many of the external costs of energy production and
use are regional or global in their geographic extent, and
the issue of access to energy for the poor is now a global
concern. Nevertheless, the architecture for global energy
governance remains fragmented and incoherent.
Given that it is unlikely for a truly global body to be cre-
ated to manage all aspects of energy governance, it has been
argued that the Group of 20 (G20) could play a role in build-
ing a higher degree of coordination between existing inter-
national organisations as well as between individual nations
(Dubash and Florini, 2011; Leal-Arcas and Filis, 2013). The aim
of this paper is to examine the validity of this proposal
through the lenses of public goods and complexity. The main
contribution of this paper takes the form of a conceptual
framework for global energy governance with a focus on the
G20. This approach emphasises the efficacy of decentralised,
polycentric governance systems and highlights the important
roles played by networks and clubs.
We begin by summarising the need for effective gover-
nance of energy at a global level and reviewing the recent
critiques of global energy governance. We then examine the
principles of public goods and complexity and their rele-
vance to the governance of energy. Taken together, these
approaches highlight the importance of clubs and networks
in building trust and shared norms and promoting collective
action. In line with the broader analysis of Kirton (2013), we
argue that the G20 can, in principle, play a vital role as a
club which forms a hub of networks that spans the global
energy arena. China’s presidency of the G20 in 2016 will
provide a vital test of whether this potential will be realised.
©2015 University of Durham and John Wiley & Sons, Ltd. Global Policy (2016) 7:2 doi: 10.1111/1758-5899.12288
Global Policy Volume 7 . Issue 2 . May 2016
198
Research Article
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