"Israel could more easily attract many more foreign investors if it joins the Energy Charter," Energy Charter senior expert, expansion and outreach Patrice Dreiski told "Globes". He says that in view of the small number of oil majors that have entered Israel's oil and gas exploration market, "joining the Energy Charter Treaty is especially important given that it is impossible to deny that there are companies that are in no hurry to invest in Israel for political reasons, which I do not have to elaborate."
Another consideration is the development of the Leviathan natural gas field, including construction of pipelines to Jordan, the Palestinian Authority, and other countries in the region. "Israel wants to cooperate with Cyprus and Turkey, both of which have already signed the charter," says Dreiski. "By signing the treaty, Israel basically climbs on to a clear international platform that offers norms of conduct and can bridge political differences and disputes."
Energy Charter's 61 member states will convene in Brussels in late April to update the charter's declaration and add 25 new members. The Energy Charter has only political significance; each signatory declares that it is prepared to cooperate on issues, such as guaranteeing energy supply routes and reducing environmental damage. Another key principle is non-discrimination against foreign investors and companies. The Energy Charter is currently considering expanding its declaration to cover issues such as renewable energy, which were less relevant when the organization was founded in December 1991.
"Signing the Energy Charter Treaty means a political commitment to accept, though not necessarily to implement, the treaty's principles," says Dreiski. The Energy Charter Treaty translates the charter's principles into a binding legal document. To become a full member of the Energy Charter, a country must ratify the treaty, submit reports describing the adoption of the treaty in terms of the business environment, energy market structure, and regulation on environmental, sustainability and other issues. In the final stage, the applicant country needs the consent of all 53 full members of the Energy Charter Treaty.
Israel is one of the few Middle Eastern countries that is not a member of the Energy Charter. In addition to Cyprus and Turkey, member states include Egypt, which has observer status, and Jordan, which is undergoing the ascension process for full membership. The Palestinian Authority has also signed the charter and its wish to become a full member could give Israel an opportunity to set conditions for the Palestinians' membership.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2014
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