BRICS to develop joint energy strategy

Today I want to talk about energy and the need for the BRICS to have a coordinated energy strategy given that a number of them are major producers and other members are large consumers.  
It seems that the Russians also seem to think that a common energy strategy is a good idea.

The Russian Ministry of Energy has announced that there is  the need for the BRICS members to share a unified energy strategy . The expert community highlighted that this will facilitate not only the stabilisation of energy prices, but also the deepening of scientific and technical cooperation, including the development of green energy. Furthermore, they believe it is essential to forecast fuel and energy balances in order to assess the potential for energy deficit in the participating countries. So what other key points may be included in the document and how this will affect the fuel and energy sectorof Russia.

So what are the prospects for the unification of eenergy strategies between the countries? Particularly between Russia, India and China which already cooperate fully within the nuclear sector and cooperation with Russia and China with the cross border sales of electricity. Plus India is a major buyer of Russian coal.
The BRICS countries of China and India are the primary importers of Russian energy resources, representing the majority of its international trade in fuel and energy resources. To further coordinate the association and to stabilise energy prices, it is necessary to expand the energy dialogue between the countries, according to Antonina Levashenko, head of the Russia-OECD Centre at the IPEI of the Presidential Academy, who spoke to Izvestia.

This can be achieved by approving a common energy strategy. First and foremost, it is essential to implement measures to attract foreign investment among the member countries, as well as other financial incentives to drive the development of the energy sector.
 Furthermore, the BRICS countries may wish to explore the possibility of implementing initiatives to facilitate the exchange of industrial infrastructure and innovative technologies, as well as to enhance scientific and technical cooperation. They may also wish to consider the potential for the development of energy, including green energy, and to study the prospects for this. This is according to Antonina Levashenko. — For instance, methods for reducing methane emissions from energy extraction could be employed to "green" coal and oil.

Also, it is essential to align the actions of nations with the objective of maximizing the potential of nuclear energy. The IEA anticipates that following the peak in coal consumption in 2023-2024, there will be a modest increase in nuclear energy, particularly in Russia, China, and India.
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The Energy Institute has stated that the BRICS countries, in particular India and China, accounted for the majority of coal and oil consumption in 2023. Despite China accounting for the majority of global coal consumption, forecasts from SP Global and the IEA indicate that India is set to experience a surge in industrial coal use and growth in the electricity generation market in the 2030s. Indian consumption is projected to grow by an average of 3.1% per year, reaching 2.9 billion tons by 2050.
The long-term forecasts of the IEA and the Energy Institute indicate that in 2023–2024 the EU and US will reach the ceiling of coal and oil consumption. This is according to an expert who noted that the forecasts are clear. However, as a result of sanctions and restrictions, Russia has already almost completely reoriented its supplies to the BRICS countries.

The largest importers of Russian oil are China, India, and a number of other countries, particularly South Africa and Brazil. Overall, there is a notable rise in oil consumption anticipated in South Africa. This is due to the country's economic expansion and population growth. Antonina Levashenko highlighted the importance of Russian oil supplies for ensuring energy security in the republic.
The strategy should include forecasts of fuel and energy balances to assess the potential for energy deficits in the participating countries. This is according to Associate Professor of the Institute of Economics, Mathematics and Information Technology of the Presidential Academy Tamara Safonova.

"Such balances can help identify promising areas of cooperation in the energy sector and determine a list of joint investment projects for the development of energy infrastructure and new environmentally friendly technologies," she told Izvestia.
Within the framework of BRICS+, cooperation in the field of fuel and energy complexes may take the form of investment. This may include mutual investments in the field of extraction, processing, development of production and transshipment capacities, as well as the development of new green technologies in energy, reduction of greenhouse gas emissions, construction of nuclear power plants, etc.
Russia has already rebuilt energy markets into friendly and neutral countries, and there is also the potential for forming new logistics chains in line with the progressive expansion of BRICS. One of the most crucial aspects of collaboration could be the establishment of a unified currency for the union. To attain this objective, the majority of mutual settlements for energy resources are currently conducted in the national currencies of the member countries of the union.
During a meeting of BRICS energy ministers, the head of the Russian department, Sergei Tsivilev, emphasised the significance of developing a unified BRICS energy strategy.
The expansion of the association in 2024 has led to a notable increase in the role of BRICS in the global oil market. Currently, the association's countries account for over 40% of global oil production and approximately 40% of global consumption of petroleum products.

He stated that, according to forecasts by Russian experts, by 2050 the BRICS countries will account for 50% of global energy production and consumption.

Russian indicators
Russia and other BRICS countries are well positioned in the extraction and export of critical materials, which are essential for the development of renewable energy technologies (RES) and the implementation of climate transition strategies. This is according to Ivan Ermokhin, a research fellow at the Russia-OECD Center at the IPEI RANEPA,

According to data from the Organisation for Economic Co-operation and Development (OECD), China accounts for 24% of global critical raw material supplies, Russia for 10%, and Brazil for 6%. In 2022, Russia was the world's largest supplier of palladium (41.9%), the second largest supplier of vanadium (20.4%), platinum (12.2%), rhodium (8.9%), cobalt (6.3%), aluminium (5.8%), germanium (5.3%) and gallium (2.1%). Furthermore, all BRICS countries possess substantial mining capabilities for critical materials.
It is essential to enhance the capacity of the Russian Federation and the BRICS countries to serve as the primary suppliers of critical raw materials for the global community. Given that the largest markets for mineral raw materials are located in the BRICS countries, it is recommended to develop areas of cooperation in the field of mineral security and critically important materials. As a case in point, there is a precedent in OPEC, which has ensured cooperation between member countries in coordinating actions in the extraction and trade of critical raw materials. These may also include measures related to the introduction of recycling and reuse technologies.
In Russia last year, of the 38 trillion rubles of taxes and fees received by the consolidated budget from the Federal Tax Service (customs duties are not included), taxes from the electricity supply sector accounted for 3%, according to Elena Anisimova, Senior Director and Head of the Sovereign and Regional Ratings Group at ACRA, who spoke to Izvestia. Meanwhile, 33% of the revenue was generated from the extraction of minerals.
— It is reasonable to assume that the fuel and energy sector is considered broadly in this context, encompassing resource extraction, processing, and transportation of electricity. Additionally, a portion of the income from the extraction sector is directly related to the fuel and energy sector in terms of the resources utilized by power plants, the expert noted.