Declaration of the National Authorities responsible for Energy Matters within the Framework of the Summit of Latin-American and Caribbean Countries on Integration and Development

The National Authorities responsible for Energy Matters of Latin American and Caribbean countries, gathered together in Caracas, Bolivarian Republic of Venezuela, on 13 May 2011, within the framework of the Declaration of Salvador (Bahia), the Cancun Declaration, the Caracas Work Schedule for the Implementation of the Montego Bay Action Plan, of the Summit of Latin American and Caribbean Countries on Integration and Development (CALC),

Considering

The strategic importance of energy for the social and economic development of our peoples and the need to correct existing asymmetries in Latin America and the Caribbean relative to the world, towards sustainable energy use;

The political willingness and the interest of governments and peoples in the region in resolving such asymmetries, through the coordination and harmonization of joint policies and strategies to accomplish a sound integration under the principles of solidarity, complementarity, reciprocity, mutual benefit and respect to the sovereignty of each country; 

That the region holds huge and valuable energy natural resources, both renewable and non-renewable, as well a great potential for the development of new energy sources, which suffice to meet the energy needs of our peoples, and at the same time allow for the diversification of the regional energy matrix;  

That in the whole region alternative and supportive schemes of cooperation and energy integration have been consolidated, which schemes have made a positive impact on the quality of life in our countries, highlighting the PETROCARIBE Energy Cooperation Agreement, the Margarita Declaration of Heads of State and/or Government, the Energy Structure Draft Project of the Union of South American Nations (UNASUR), the Bolivarian Alliance for the Peoples of Our America (ALBA), the PETROCARIBE Energy Security Treaty, OLADE, the San Jose Agreement, the Caracas Energy Cooperation Agreement, PETROCARIBE, PETROSUR, the Mesoamerica Project, the Mesoamerican Energy Integration Programme and the Electric Inter-Connection System of Central American Countries (SIEPAC);

Do hereby agree as follows:

1. Reassert that energy integration is essential for the social and economic development of our peoples and it should be addressed based on the principles of solidarity, flexibility, gradual nature, plurality, diversity, complementarity of actions, voluntary participation, reciprocity, mutual benefit, as well as the sovereign right of each country to set the conditions on exploitation of its natural resources.

2. Acknowledge the importance of the PETROCARIBE Agreements to meet the energy needs of member countries of this organisation by means of the steady supply of crude oil and products with supportive financing schemes for the decrease of energy costs as a result of the elimination of intermediaries, as well as to develop social projects of high impact.

3. Acknowledge the progress in the field of energy integration made by the Union of South American Nations (UNASUR), where the 12 Member States have approved the Guidelines of the South American Energy Strategy and its Action Plan, as well as the Structure of the South American Energy Treaty developed by the South American Energy Council, with the latter being noteworthy as a baseline platform in the context of Latin American and Caribbean integration.

4. Acknowledge the progress made in the field of energy integration in the Common Market of the South (MERCOSUR) and the Bolivarian Alliance for the Peoples of Our America (ALBA).

5. Recognise the contribution to the Mesoamerican energy integration of the Mesoamerican Project, the Mesoamerican Energy Integration Programme (PIEM), the Central American Integration System (SICA), and the Electric Interconnection System of the Central American Countries (SIEPAC).

6. Recommend recognition of the Latin American Energy Organisation (OLADE) as a support agency with a view to providing advice and contributing with the goals of regional energy integration.

7. Acknowledge the importance of the PETROSUR initiative, envisaged as an agency that proposes the establishment of a cooperation platform among South American oil and energy companies.

8. Recommend the promotion of schemes of joint participation among Latin American and Caribbean energy companies, according to the reality of each country, through Joint Ventures, Bi-national Companies, Grand-National Companies and other partnership modalities, which help capitalize on their potential complementation, under the principles established herein.

9. Reaffirm the need to strengthen the regional infrastructure in the sector throughout the chain value by means of exploration and construction, enlargement, overhaul and streamlining of the infrastructure sector, among others, through joint development of our countries, for the purposes of meeting the energy needs in the region with the participation of the public and private sectors, as appropriate.

10. Recognise the fact that energy security requires a steady and efficient energy supply with a high sense of utilisation of natural resources by producing countries and bearing in mind the needs of Latin American and Caribbean consuming countries to have access to energy in conditions of non-discrimination and free exchange that ensure their socioeconomic development with a fair return for producing countries in accordance with the laws of each country.

11.  Emphasize that oil is a natural resource used in energy generation due to its wide range of uses, remaining as one of the main sources within the world energy matrix. Therefore the increase of reserves in our region is of the essence to give our peoples access to energy and ensure our energy security.

12. Acknowledge that natural gas is the most economical and cleanest fuel fossil and a very important energy source for residential, industrial and transportation sectors worldwide. Likewise, prospects for increasing production of natural gas are of the essence for regional gas development. This entails facilitation of cross-border trade of this fuel in conditions of reliable supply, as well as construction of the transportation infrastructure to allow for connection between production centres and regional markets.

13.  Highlight the great hydroelectric potential of our region and the importance of fostering new projects, bearing in mind preservation of water resources.

14. Support development, promotion and use of alternative and renewable energy sources for electricity generation, based on the region’s great potential in energy sources, namely, inter alia: wind, sun, biomass, geothermal and tidal energy sources, and biofuels, thus bolstering technology cooperation, capacity building and mechanisms for infrastructure development among the countries in the region, bearing in mind the principle of sustainable development.

15. Reassert the importance of making public policies, developing programmes and setting strategies aimed at conservation and preservation of primary energy resources, as well as the promotion of efficient and rational use of energy, conceived as a pivotal component to strike a balance between energy supply and demand.

16. Recognise and encourage energy efficiency and use of alternative fuels, such as natural gas, particularly in the transportation sector, as a substantial component for sustainable socioeconomic development.

17. Stress the significance of industrialisation of the Latin American and Caribbean energy sector for the purposes of added value, technology progress and job creation, thus entailing a great potential for the regional socioeconomic development.

18. Recognise the significance of biofuels and encourage the exchange of experiences on their use as energy sources that contribute to boost sustainable development, diversify the countries energy matrix, incorporate technologies and additional sources of revenues into the agricultural sector, and mitigate the effect of greenhouse gases.
 
19. Recognise the principles of universal access, non-discrimination and steady electricity service, as well as the strategic importance of electric energy as one of the main driving forces for the socioeconomic development of our peoples. Likewise, there is the need to reinforce and optimise the electricity interconnection structure and sovereign mechanisms which facilitate transit, promote regional and sub-regional energy integration and full utilisation of the potential complementation among countries, in line with the respective domestic laws and the assurances to meet the internal demand of each country.

20. Recognise the right of every nation wishing to start using nuclear energy for peaceful purposes to exchange the experiences with the countries in the region which have made progress in developments of power generation, meeting the most stringent security requirements.

Final Provisions

21. Recommend the Latin American and Caribbean Heads of State and/or Government the establishment of an agency composed of the national authority of each country in energy matters within the framework of the institutional status to be adopted by the Latin American and Caribbean Community of States during the next Summit, based on the guidelines herein set forth.

22. Consider the appropriateness of the guidelines of the South American Energy Treaty as an element for the development of regional energy integration of the Community of Latin American and Caribbean States (CELAC).  

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