Natural Resources Canada
98/21
April 1, 1998

ENERGY MINISTERS AGREE ON WORLD ENERGY FUTURE

Moscow, Russia — Energy issues transcend boundaries and oceans. G8 Energy Ministers concluded their 2-day meeting in Moscow today with a strong reaffirmation of international cooperation on global energy issues.

"Full cooperation on energy issues within and beyond these eight countries is essential to the world's long-term economic and environmental well-being," said Ralph Goodale, Minister of Natural Resources Canada, who represented Canada at the meeting. "A major objective of the Canadian team," added Minister Goodale, "was to explore the area of energy sector development and investment."

The Ministers' Communiqué noted that they had reached a consensus on various issues related to liberalized energy markets and energy sector restructuring. The Ministers welcomed the continuing integration of global energy markets, agreeing that open markets and transparent legal and regulatory frameworks are key to meeting the world's future energy needs. They cautioned, however, that governments still have roles to play in ensuring that the supply of energy is secure and that environmental objectives are met.

The Ministers' discussions addressed energy and the environment. In the Communiqué, they acknowledged the strong link between energy production and use and environmental quality, and reaffirmed the importance of promoting the sustainable production, conversion, transport and use of energy resources. They also stressed the need for action to address climate change.

On the issue of climate change, Minister Goodale noted that he was "especially pleased that we were able to reach a consensus on the need to constructively engage developing countries in climate change solutions, and the urgency of working on flexibility mechanisms such as emissions trading."

Competitive markets and a non-discriminatory operating frameworks were emphasized in a report presented to the G8 Energy Ministers by business leaders who had met prior to the Energy Ministers' Meeting. Some Canadian businesses attending the Business Consultative Meeting were AECL, Cameco, Canadian Fracmaster, Canadian Nuclear Association, Export Development Corporation, SNC-Lavalin and Yugraneft\NOREX Petroleum. While in Moscow, Minister Goodale is meeting with his counterparts in the Russian government including Mr. Boris Nemtsov, the First Deputy Chairman of the Government of the Russian Federation, to discuss issues of bilateral importance, including increasing trade and investment. In 1997, trade between the countries totalled $1 billion, and Canadian investment was $750 million. Canadian companies have demonstrated particular expertise in areas that are directly relevant to the development of the Russian economy and could play leading roles in Russian oil and gas, mining, forestry and electricity sectors.

"The potential for increased trade and investment, especially in the natural resources area, is large," said Minister Goodale. "However, it will be crucial for Russia to continue to make progress in reforming its regulatory and financial systems before our companies will be fully confident to invest. It is clear from my discussions that the Russian government understands this concern."

The Ministers also discussed nuclear safety. As other G8 countries, Canada takes its commitment to nuclear safety and the commitments of the Moscow Summit very seriously. Canada played a key role in the development of the International Nuclear Safety Convention and was the first country to sign on.

Canada encourages other countries to implement promptly all elements of the convention including a regime that will ensure plant closure in the event regulatory safety requirements cannot be satisfied.

For more information contact:
Dave MacInnis
Natural Resources Canada
(613) 996-2007