Cambodia and the rest of the world’s emerging economies have been called on by the World Economic Forum (WEC) to install “effective” reforms to reinvigorate the global energy market.
The WEC’s Global Energy Architecture Performance Index Report 2015 was released yesterday. Cambodia ranked as having the fifth-worst performing energy system out of 125 countries worldwide, according to the report.
“[This year] has been a turbulent year for the energy sector – geopolitical uncertainties, slowing economic growth and the drop in oil prices are affecting energy systems around the world,” Roberto Bocca, senior director and head of energy industries at the WEC was quoted saying in a release.
“In this context, effective energy reforms are more important than ever to drive economic competitiveness, particularly in major emerging economies – these nations face some of the greatest challenges across the energy triangle.”
The WEC report stated that emerging energy market governments should install attractive signals for potential investors, which rebalance the risk and reward ratio.
“In Colombia, amendments made to the fiscal regime more than a decade ago helped change the incentives for oil and gas investors. These have had impressive results for the oil and gas sector, including increased flows of foreign direct investment,” the WEC report states.
The Cambodian government is currently working on a new petroleum and gas extraction law, which is expected to be completed in 2015.