Analysis of the Indian-U.S. nuclear agreement, as well as substituting natural gas for coal in fueling the Chinese electricity sector, reveals that side agreements between developed and developing countries could result in massive greenhouse gas emission reductions.

Three months ago the Russian energy giant Gazprom forced Ukraine to pay sharply higher prices for natural gas. At the time, the story was portrayed as a political struggle for control in Kiev. But last week Gazprom announced it was tripling gas prices in Belarus, a country that is politically close to the Kremlin. Moldova has been forced to accept a doubling of prices over the next three to four years, and the other former Soviet republics are already paying market prices for Russian gas.

The truth is that these price increases are not political. Rather, they reflect worrisome economic and geological facts about Russian gas fields. The Kremlin is not simply trying to use Gazprom to reassert authority in Belarus, Ukraine or anywhere else. There are in fact deep problems with Gazprom -- problems created by its inefficient management and a looming decline in gas production.

Russia controls over a quarter of the world's gas reserves -- more than any other country. Most of the known Russian reserves (about 80 percent) are in west Siberia and concentrated in a handful of giant and super-giant gas fields. Since the early 1970s the rate of discovery for these new fields has been declining. Moreover, output from the country's mainstay super-giant fields is also steadily falling.

Huge investments are needed to replace this dwindling supply, and all the options for new production will prove costly and difficult. New fields in the far north and east of the country are distant from most of Russia's people and export markets, requiring wholly new transport systems such as pipelines. Moreover, most of these fields are found in extremely harsh environments where it is technically and financially difficult to operate.

Gazprom controls neither the capital nor the technology that will be needed. The state-controlled company is already deeply in debt and burdened by many expensive obligations, such as supplying Russia's population and friends with cheap gas. The company has to work with foreign partners.

So far Gazprom has been able to forestall crisis. Economic stagnation across the former Soviet Union and Eastern Europe since 1990 dampened gas demand. Russia, which had a surplus at the time, sharply increased its gas exports and made contractual commitments that will remain in force for many years.

But following the long stagnation, Russia's internal gas consumption is rising again as the economy expands. And new Russian policies to promote development of the country's eastern regions will, in the next few years, require large new commitments to supply gas to that region (along with spending on railroads, airports and other infrastructure).

Even when the Russian economy was in the doldrums the country was notable as a large gas consumer because of its extremely inefficient energy system. Today Russia is the world's second-largest gas user, after the United States, although its economy is only one-twentieth the size of the U.S. economy.

Electricity in Russia is produced for the most part by gas, but the country's gas-fired electric generators work at 33 percent efficiency on average, compared with 50 to 55 percent in Europe. More than 90 percent of residential and industrial gas consumers don't have meters. Gas is even cheaper than coal -- Russia is the only large country where that is true -- so incentives to switch to an abundant fuel are weak.

In recent years Russia has boosted gas supplies by squeezing Turkmenistan to sell gas to Russia at a deep discount. But Turkmen gas production is poised to decline, and Turkmenistan's gas industry is barely functional because the country's political environment is scary for long-term investors. Other Central Asian suppliers, notably Kazakhstan, are unlikely to be able to bridge the gap.

Caught between growing internal consumption of gas, continued inefficiency and mounting external obligations, Russia's gas industry faces a looming crisis. Given the country's vast resources, it seems that many producers could fill the void. But a series of policy decisions created two roadblocks that Gazprom has been happy to reinforce. One is the lack of access to the Gazprom-controlled pipeline network, which explains why few companies even bother to look for gas: They know they can't get what they find to market. The other barrier to investment is the low internal prices, which make gas production uneconomic except for companies that can sell their products outside.

Gazprom needs cash -- much more cash -- for investment. At the same time, it needs a strong incentive for former Soviet republics to cut their own very inefficient consumption.

Analysts have ignored the risk that Russia's supplies could fall short because they focus on Russia's vast gas resources and the new Western investors who are -- albeit cautiously -- entering into joint ventures with Gazprom. But those resources and ventures are for the long term, and the looming crisis of supply is unfolding now.

The gas shortage is likely to become most acute over the next few years. If there is an unusually cold winter in 2008, the year of Russia's presidential election, then Gazprom will face a politically unpleasant choice: whether to cut off internal customers (voters) or the Western customers who are the firm's main source of hard cash.

The writer is a research fellow at the Program on Energy and Sustainable Development at Stanford University. She is co-author of "Axis of Oil" and of a forthcoming comprehensive review of Russia's gas pipelines.

The Middle East seems to occupy all the attention of our foreign-policymakers these days. But there are other parts of this globe that are probably more important, and potentially no less dangerous.

One of these is the Taiwan Strait. That narrow passage of water separates China from Taiwan, in Chinese minds a renegade province that must eventually be returned to its control.

The Chinese communist leadership dreads the prospect that Taiwan's democratically elected government might make the island's de facto independence a legal reality. China's heated military buildup in recent years is largely focused on creating the muscle to intimidate Taiwan and to seize the island if that fails.

A war across the Taiwan Strait makes the American top-five list of security dangers. The U.S. commitment to defend Taiwan is ambiguous, but it is not hard to imagine us being drawn into a conflict. And a war in the strait could easily expand to include Japan.

That is why the mayor of Taipei, Taiwan's capital city, got such a rousing welcome last week in Washington. Ma Ying-Jeou, or Mayor Ma as he is popularly known, does not threaten to upset the apple cart of cross-strait relations by pushing Chinese buttons with talk of independence, as the Taiwanese government loves to do.

Sitting down with Ma for breakfast as he made his way home to Taiwan, I could see why he was received with open arms at senior levels of the Bush administration. Ma, the leader of the opposition Kuomintang (KMT) party, is the front-runner in polls to win the 2008 presidential elections. He is articulate, a Harvard Law School graduate with movie-star looks and a reassuring message for Americans.

"We support maintenance of the status quo, which is also U.S. policy,'' he told me.

A KMT-led government would not waver from the "Five Nos,'' a pledge made by President Chen Shui-bian not to take steps toward a declaration of independence. He offers in addition a program of ``Five Dos'' should it return to power.

First, the KMT hopes to resume negotiations with the mainland, based on a 1992 agreement that while there is one China, there are different interpretations of what that means. Second, it will try to reach a peace agreement, lasting from 30 to 50 years. Third, the KMT would expand the already massive economic ties between Taiwan and the mainland into a possible cross-strait common market. Fourth, the KMT would try to create a formula to allow Taiwan to participate in international affairs, including global organizations, short of being an independent state. Last, it would expand cross-strait cultural and education exchanges.

Ma downplays the threat from Beijing these days. "Their goal is no trouble,'' he told me. "They are not interested in unification right now.'' But, he said, the Chinese do worry about "the further drifting away of Taiwan.'' That drift, he fears, could inadvertently force a conflict that might drag in the United States.

That charge is aimed at the government in Taipei. And it is a concern shared by U.S. officials who are visibly unhappy these days with Chen. The warm reception for Ma was intended to send that message to Taipei -- and also to Beijing, ahead of the visit next month of Chinese leader Hu Jintao.

Reassuring as Ma's words may be, there are reasons to be cautious about his message and his prospects.

Taiwanese nationalism may rattle the status quo, but so does China's military buildup. As does the failure of Taiwan to adopt a significant U.S. defense package, offered five years ago, to counter that buildup. The KMT blames the current government for this impasse but the party, which now controls the legislature, has blocked passage of the budget.

Deepening economic ties with China are a market reality, as Taiwan's electronics industry shifts production to low-wage China. But ultimately that could make them another Hong Kong, a satellite of Beijing that must bend to its political will.

Taiwanese are deeply divided. The KMT, the party of mainlanders who fled to the island after the communist victory in 1949, ruled Taiwan for decades as the exiled government of China. But democracy, which came in the 1990s, brought to power native Taiwanese who want to preserve their separate identity.

Ma may prove to be a political leader who plays better in Washington than back home. But if Taiwanese embrace his vision of the status quo at the ballot box, all the better. Ultimately, his mandate must come from Taiwanese, not Americans.

The Honorable Joschka Fischer, member of the Bundestag, and former German Foreign Minister and Deputy Chancellor (1998-2005) in the government of Gerhard Schroeder, will offer a 2006 Frank E. and Arthur W. Payne policy lecture titled "Europe's Prospects in a Globalized World," on April 20, 2006, 4:30 p.m., Bechtel Conference Center, Encina Hall.

The Honorable Joschka Fischer's Biography:

There was no Orange-style revolution in Belarus following the 19 March presidential elections. But there may have been the beginning of a revolution of the spirit that will bring the last tyranny in Europe to an end. Observers should not lament the "failure" of revolution but should hail the beginning of a genuine democratic movement, which is stronger today than it was just a few years ago.

From the beginning of this campaign, there was little sign of a real contest. Lukashenka could have won a free and fair election: Strong economic growth and social stability might have guaranteed him half of the vote or so, had the vote actually been counted. But a free and fair vote carried the risk of defeat, however remote, and the ghost of the Orange Revolution in Ukraine in 2004 fueled hysteria within the regime. Consequently, just before the vote, the government criminalized opposition-related activity and began to arrest election monitors and activists from nongovernmental organizations on charges of terrorism.

Yet Lukashenka wanted some legitimacy for his reelection and therefore allowed opposition candidates to participate. Surprisingly, two challengers, the leader of the united opposition, Alyaksandr Milinkevich, and the former rector of the Belarusian State University, Alyaksandr Kazulin, refused to bow to the dictator and decided to play by their own rules. Their 30-minute campaign speeches on state TV (that is how much exposure to alternative opinions an ordinary TV viewer in Belarus has had in five years) were devoted not much to the issues but to attacking Lukashenka's character - an act previously unthinkable in a country where one official once declared Lukashenka to be "a bit higher than God." Both candidates emphasized freedom and democracy rather that day-to-day issues in their messages and found much sympathy, to the surprise of observers. Thousands turned out on the streets to hear speeches from opposition candidates, numbers that were unthinkable even in Minsk just a year ago.

Lukashenka saw the crowds as well and got nervous. Kazulin, whose particularly scathing attacks made him an instant celebrity, was beaten up by riot police. Dozens of observers and reporters were denied visas, expelled, or even arrested and charged with helping to plot a coup. State TV propped up its propaganda, and the KGB began to discover one plot after another every several days. In the last revelation, the head of the KGB claimed that the opposition would poison the tap water in Minsk using decomposing rats. And dozens of opposition activists with experience in street protests were rounded up in the run-up to the vote. Yet even in the face of these repressive tactics, Lukashenka's autocratic regime failed to deter people from mobilizing on the streets after the vote to denounce the fraudulent results.

On 19 March, at least 20,000 people took to the streets to protest the announcement of a "smashing" victory for Lukashenka, who was declared winner with 83 percent of the vote cast. And the protesters did not stop there, organizing an around-the-clock vigil on the central square of Minsk to demand annulment of the vote and new elections.

To be sure, the size of the protests was nowhere near the crowds that turned out in the streets in Kyiv a year and half ago. Yet thousands of Belarusians braved not only the blizzard but explicit threats of jail and even the death penalty made by the KGB on the eve of elections. Most of them faced immediate dismissal from state jobs or university if found in the crowd or even caught checking an opposition website. And they barely had means to communicate with each other due to suspension of most of the opposition press and an almost total blockade of the Internet and mobile communications. Could one have expected a protest of more than just a handful of dissidents in these, almost Soviet-style conditions?

SMALL VICTORIES

In retrospect, one has to admit that the protest was doomed. The opposition knew it did not win the elections and hence did not attempt to stage a revolution as such: that is, to attempt to snatch power from Lukashenka by force. Instead, the protest turned into a show of defiance, an attempt to get the sympathy and attention of fellow countrymen. Day after day, the numbers dwindled, not least because each new day brought the protesters closer to an imminent show of force by the government. It came on the morning of 23 March, when people on the square were surrounded and thrown into police trucks, then taken to jails and sentenced to various prison terms.

The dramatic end of the protest also highlighted an unpleasant fact for the Belarusian opposition: A combination of fear imposed by the government on one part society, and acceptance of the regime by another part, still limits its appeal and following. The streets of Minsk these days were full of pictures of solidarity and defiance, but also of indifference from passers-by and loathing for the protesters from the regime's supporters.

Lukashenka's opponents still have a long way to go to communicate their message to the entire society - and will have to do so in an even more repressive political climate than they have endured so far. But failures and disappointments shall not distract attraction from the opposition's successes in this campaign and afterward. It achieved unity and presented society with a leader whom many accepted as a credible alternative to Lukashenka. It invigorated the network of democratic activists, who braved certain repression and imprisonment. It spurred public debate, and the quest for free information was boosted even when the regime knocked out independent newspapers by the dozens. And it proved to the society and the entire world that support for democratic change in Belarus is not limited to just a handful of fanatics.

The March events may be the beginning of a newly invigorated fight for democracy in Belarus as much as it can trigger a new, more severe round of oppression from the regime. The West cannot stop paying attention. Those struggling for democracy, especially those already in jail, deserve our solidarity; families of political prisoners need support; and recently expanded democratic assistance programs, especially efforts to expand access to independent media within Belarus, must be sustained, not cut, now that the election is over.

Democrats in Belarus defied expectations and demonstrated that they exist, they have some popular support, and they are willing to take risks in their fight for freedom. Now, more than ever, supporters of freedom in the West need to stand with them.

PESD fellow Nadeja Victor presented Global Natural Gas Market and Russian Gas Supply Presentation on March 14 during the "market mechanisms of energy market regulation and ways of improving them" roundtable chaired Anantoliy Yanovskiy, Director, Department of Fuel and Energy Complex, Ministry of Industry and Energy, RF. In the meeting of the Group of Eight energy ministers the following days, the chair's statement was the following:

1. G8 Energy Ministers met in Moscow on 15-16 March 2006 in order to discuss the matters of mutual interest related to global energy security.

2. The reliable energy supply plays a key role in development of worlds economies bearing in mind that the well-being, way and quality of life of people directly depend on access to energy.

3. Ministers are aware that the 21st century is sure to witness a significant increase of the global consumption of energy, primarily by dynamically developing economies. Despite the increased presence of alternative sources in the energy mix, the fossil fuels will remain the basis of the world energy industry for at least the first half of the 21st century.

4. Ministers discussed the challenges to the global energy security, issues related to promotion of market efficiency of the fuel and energy sector. We note that meeting energy security challenges will require reliance on market-oriented approaches aimed at increasing energy supply and stemming growth in demand, while encouraging market-based pricing, competition, energy efficiency, and conservation.

5. Ministers point out the importance of further development and strengthening of dialogue among energy producer, transit and consumer countries, including information exchange on the current situation as well as medium- and long-term plans and programmes of development of their respective energy sectors.

6. Ministers confirm our support for appropriate international initiatives such as the Joint Oil Data Initiative aimed at greater accessibility and transparency of data on reserves, demand and supply, stocks and production capacities.

7. Ministers note that a stable future of the international energy sector requires significant investment in the production, transportation and processing of energy resources. We recognize that to attract investment it is essential for countries to have open and favourable investment regimes including stable and predictable regulations, clear tax laws, and efficient administrative procedures as well as fair and reciprocal access to markets along the energy value chain.

8. Ministers favour the implementation of the Action plan adopted last year by our leaders in Gleneagles which includes a wide range of measures to promote innovations, increase energy efficiency and enhance environmental protection.

9. Ministers proceed from the fact that diversification of the energy portfolio in terms of energy sources, suppliers and consumers as well as delivery methods and routes will reduce energy security risks not only for individual countries but for the entire international community. Joint efforts of the G8 and other countries aimed at wider use of renewable and alternative energies, development and implementation of innovative energy technologies and development of low-carbon energy would contribute substantially to the solution of this strategic task. For those countries that wish, wide-scale development of safe and secure nuclear energy is crucial for long-term environmentally sustainable diversification of energy supply.

10. Ministers agree that continued international cooperation to develop the low carbon technologies of the future will be crucial. Facilitating development and deployment of innovative energy technology solutions will have longer term environmental, economic and energy security benefits and be key to a global sustainable energy future.

11. A significant reduction of the gap in energy supply between developed and undersupplied less-developed countries is a major aspect of global energy security.

The UN Department of Economic and Social Affairs' Division for Sustainable Development independently published a report by PESD director David Victor on sustainable energy services for the poor. The motto for UNDESA's Division for Sustainable Development is "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs." The report is part of PESD's research on Low Income Energy Services and can be downloaded in its entirety below.

Stanford, California - If the deal to supply India with nuclear technologies goes through, future generations may remember it for quite different reasons than the debate over nuclear proliferation.

Nuclear power emits no carbon dioxide, the leading cause of global warming. And India, like most developing countries, has not been anxious to spend money to control its emissions of this and other so- called greenhouse gases.

India is embracing nuclear power for other reasons - because it can help the country solve its chronic failure to supply the electricity needed for a burgeoning economy. But in effect, the deal would marry their interest in power with ours in protecting the planet.

India is growing rapidly. In recent years its economy has swelled at more than 7 percent per year, and many analysts believe it is poised to grow even faster in the coming decade.

The economic growth is feeding a voracious appetite for electricity that India's bankrupt utilities are unable to satisfy. Blackouts are commonplace. Farmers, who account for about two-fifths of all the power consumed, can barely rely on getting power for half of every day. In industrial zones, the lifeblood of India's vibrant economy, unstable power supplies are such trouble that the biggest companies usually build their own power plants.

So most analysts expect that the demand for electricity will rise at about 10 percent a year. (For comparison, U.S. power demand notches up at just 2 percent annually.)

Over the past decade, about one third of India's new power supplies came from natural gas and hydro electricity. Both those sources have been good news for global warming - natural gas is the least carbon- intensive of all the fossil fuels, and most of India's hydroelectric dams probably emit almost no greenhouse gases.

However, the bloom is coming off those greenhouse-friendly roses. New supplies of natural gas cost about twice what Indians are used to paying, and environmental objections are likely to scupper the government's grand plans for new hydro dams.

That leaves coal - the most carbon-intensive of all fossil fuels. Already more than half of India's new power supplies come from coal, and that could grow rapidly.

Traditionally, the coal sector was plagued by inefficiencies. State coal mines were notoriously dangerous and inefficient. Coal-fired plants in western provinces, far from the coal fields and vulnerable to the dysfunctional rail network, often came within days of shutting operations due to lack of coal.

All that is changing. Private and highly efficient coal mines are grabbing growing shares of the coal market. Upgrades to the nation's high-tension power grid is making it feasible to generate electricity with new plants installed right at the coal mines.

These improvements make coal the fuel to beat.

So the deal struck with President George W. Bush matters. At the moment, India has just 3 gigawatts of nuclear plants connected to the grid. Government planners envision that nuclear supply will grow to 30 GW over the next generation, but that will remain a fantasy without access to advanced nuclear technologies and, especially, nuclear fuels - such as those offered under the deal with the Bush administration.

By 2020, even after discounting for the government's normal exuberance in its forecasts, a fresh start for nuclear power could increase nuclear generating capacity nearly ten-fold.

By displacing coal, that would avoid about 130 million tons of carbon dioxide per year (for comparison, the full range of emission cuts planned by the European Union under the Kyoto Protocol will total just 200 million tons per year).

The effort, if successful, would eclipse the scheme under the Kyoto Protocol, known as the Clean Development Mechanism, that was designed to reward developing countries that implement projects to reduce their emissions of greenhouse gases. The largest 100 of these CDM projects, in total, won't reduce emissions as much as a successful effort to help India embrace safe nuclear power.

The benefits in slowing global warming are not enough to make the deal a winner. Care is needed to tame the risks of proliferation, especially those connected from India's system of breeder reactors that make more weapons-capable fuel than they consume. And complementary efforts, led by Indians, are needed to fix the trouble in India's electricity sector that have so far discouraged private investors.

None of this will be easy. There are no silver bullets in cooling the greenhouse.

What is important is that the deal is not just a one-off venture, as the administration's backers, on the defensive, have suggested. It could frame a new approach to technology sharing and managing a more proliferation proof fuel cycle that, in turn, will multiply the benefits of a cooler climate.

Coal-rich China is among the many other countries that would welcome more nuclear power and whose emissions of carbon dioxide are growing fast - even faster than India's.

Quite accidentally, it seems, the Bush administration has stumbled on part of an effective strategy to slow global warming. Now it should marry that clever scheme overseas with an effective plan here at home.

The nuclear deal reached during President Bush's recent visit to India unleashed a predictable wave of criticism. From editorial and op-ed pages to Congress, led by the left but supported on the right, the administration has been assailed for making a bad bargain.

Under the agreement, which still needs congressional approval, India would open much of its nuclear facilities to international inspections in return for gaining access to the world's supplies of uranium and U.S. nuclear expertise.

The attacks on the deal reflect the view of the nonproliferation lobby -- the experts and policymakers whose central concern is to stop the spread of nuclear weapons. I share their aim. But American arguments against the India deal are misleading and only expose the deep contradictions, if not hypocrisy, of our own nuclear policies.

There are two main criticisms of the agreement: first, it undermines the Nuclear Nonproliferation Treaty, the NPT, and second, it permits, even encourages, India to expand its nuclear weapons production.

The NPT issue is particularly sensitive at a time when the international community is trying to persuade Iran to give up certain nuclear technologies which many nations fear are part of a secret bomb program.

The NPT created two sets of global rules -- one for the five nuclear weapons powers it recognizes (China, the United States, Russia, Britain and France) and another for everyone else. The five, for example, allow only "voluntary'' international safeguards on their civilian nuclear facilities. They have no obligation to open their military programs to any kind of scrutiny. And the NPT places no real limits on their arsenals, other than a vague commitment to reduce and eventually eliminate all nuclear weapons.

The rest must open their nuclear energy programs fully to international inspection and agree never to build bombs. In exchange, they gain access to the peaceful uses of nuclear energy.

Iran -- and North Korea -- made that bargain and can be held to account for breaking the rules. But India consistently regarded that as an unequal trade-off and never signed the NPT; neither did Pakistan and Israel, two other nuclear weapons states.

India's nuclear program is the product of decades of largely indigenous effort; it did not result from secretive proliferation in violation of the NPT.

The deal with India turns the five into six. It treats India as a de facto member of the inner club. The deal would require changes in U.S. law to remove existing restrictions on the transfer of nuclear energy technology, changes that would allow India to be treated no differently from China.

That does not weaken the NPT -- it strengthens it. It brings it more into accord with reality and gives India a stake in a system it had previously rejected as unfair. It paves the way for India to join the Nuclear Suppliers Group, the international organization that controls nuclear exports.

The critics are right that the deal enables India to expand its production of fissile materials to make nuclear warheads. Eight of India's 22 power reactors will remain outside international controls, along with a new breeder reactor. The Indians fought for that exemption because they feel their nuclear arsenal may not be large enough to deter a nuclear first strike by Pakistan or China in the future. Critics fear that with increased access to uranium and limited inspections, India will set off an arms race in South Asia.

Again, the agreement simply treats India like the five. Nonproliferation experts claim that unlike India, however, the five have halted their production of plutonium and highly enriched uranium that could be used to build new weapons. This is true, but misleading.

The five have massive stockpiles of fissile material built up during the Cold War. "If I've got a full pantry, it's easy for me to swear off trips to the supermarket,'' said Michael Levi, an arms-control expert at the Council on Foreign Relations.

Moreover, the United States has embarked on a new program to rebuild its nuclear weapons production capability, including creating new facilities to produce plutonium cores for warheads and to assemble them.

India has agreed to back a global pact to cut off fissile-material production. But the Bush administration does not support a treaty that would actually verify this is taking place. And the U.S. Senate has refused to ratify the Comprehensive Test Ban Treaty that would permanently halt any new testing of nuclear weapons.

A Congress that can support those policies is hardly in a position to challenge the administration's agreement with India. Rather than block the U.S.-India deal, it makes more sense to improve it. This could include reaching agreements for cooperation between the two countries to ensure the safety and security of nuclear facilities, including those for military purposes, suggested Stanford Professor Scott D. Sagan, a leading expert on nuclear safety and nonproliferation. "Reducing the risk of terrorist theft of nuclear materials or weapons in India would also help protect the United States,'' argues Sagan.

Beyond that, the six acknowledged nuclear powers should begin to seriously fulfill their part of the NPT bargain -- to cap fissile-material production, to ban nuclear testing, and to eventually radically reduce stored arsenals of nuclear weapons and materials.