Paro Declaration Calls for Free Trading, Freedom of Energy Transit
27 July 2015
The Cleaner, Greener South Asia: Managing Climate Change and Water Resources Conference organized by the SAARC Chamber of Commerce and Industry (SAARC CCI), in collaboration with the Bhutan Chamber of Commerce and Industry, concluded with the Paro Declaration on 25 July 2015 in Bhutan. The Declaration called for free trading of energy-related materials, products, and equipment; freedom of energy transit through pipelines and grids in the region; and urged protection and promotion of foreign investment in energy and an extension of most-favored nation treatment.
According to SAARC CCI President Suraj Vaidya, the Declaration aims to increase investment in the power sector in the region since energy is vital for economic and industrial growth. It also promotes the forming of agreements on energy and energy projects at the SAARC level to increase accessibility and affordability of power supplies.
Conference participants, including energy experts, political leaders, and policymakers, also called for mechanisms for state-to-state or investor-to-state projects in the region, and agreed that South Asia should be grouped into three sub-grid systems, as follows:
- Eastern grid, comprising Bhutan, Bangladesh, India, and Nepal;
- Western grid, comprising Afghanistan, India, and Pakistan; and
- Southern grid, with India and Sri Lanka.
Hydropower, according to the Declaration, should also be categorized under renewable energy.
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