G7 leaders believe crisis in Ukraine requires step change to approach to diversifying energy supplies

The use of energy supplies as a means of political coercion or as a threat to security is unacceptable, according to a G7 declaration issued after the G7 Summit held in Brussels on June 4-5, 2014.

"The crisis in Ukraine makes plain that energy security must be at the centre of our collective agenda and requires a step change to our approach to diversifying energy supplies and modernising our energy infrastructure," reads the declaration.

"Under the Rome G7 Energy Initiative, we will identify and implement concrete domestic policies by each of our governments separately and together, to build a more competitive, diversified, resilient and low-carbon energy system," reads the document.

This work will be based on the core principles agreed by our Ministers of Energy on May 5-6, 2014, in Rome, which include development of flexible, transparent and competitive energy markets, including diversification of energy fuels, sources and routes, and encouragement of indigenous sources of energy supply; reducing our greenhouse gas emissions, and accelerating the transition to a low carbon economy as a key contribution to sustainable energy security.

Among the principles is enhancing energy efficiency in demand and supply, and demand response management; promoting deployment of clean and sustainable energy technologies and continued investment in research and innovation; improving energy systems resilience by promoting infrastructure modernization and supply and demand policies that help withstand systemic shocks and putting in place emergency response systems, including reserves and fuel substitution for importing countries, in case of major energy disruptions.

Based on these principles G7 will take the following immediate actions:

"We will complement the efforts of the European Commission to develop emergency energy plans for winter 2014-2015 at a regional level.

Working with international organizations such as the International Energy Agency (IEA), the International Renewable Energy Agency, and the international financial institutions, we will supply technical assistance, including leveraging the private sector, and facilitate exchanges with Ukraine and other European countries seeking to develop indigenous hydrocarbon resources and renewable energies, as well as to improve energy efficiency.

We will also promote the use of low carbon technologies (renewable energies, nuclear in the countries which opt to use it, and carbon capture and storage) including those which work as a base load energy source; and

Promote a more integrated Liquefied Natural Gas (LNG) market, including through new supplies, the development of transport infrastructures, storage capabilities, and LNG terminals, and further promotion of flexible gas markets, including relaxation of destination clauses and producer-consumer dialogue."

"We ask our Energy Ministers to take forward this Rome G7 Energy Initiative and report back to us in 2015," reads the document.