This larger question was considered by energy ministers of the G8 countries at their meeting in Moscow of 1 April 1998. A paper written jointly by the IEA and the Energy Charter Secretariat for this meeting is given in an appendix to this booklet. The ability of countries to mobilise enough capital for their energy investment needs depends on the quality of their investment, fiscal and regulatory policies. This in turn crucially affects the rate of economic growth and living standards in those countries. One of the most important considerations for potential investors is a country's political and economic stability.
Companies also evaluate other market, financial and legal risks.
The main areas are market access, including market structure, discrimination and bureaucracy and market operation, including the legal framework, the financial environment and market conditions. Companies want assurance that they can obtain authorisations needed for new investments. Procedures must be based on clear and consistent criteria and should minimise bureaucratic complexities and delays. Foreign investors will be particularly deterred if there is discrimination on nationality grounds. Companies will want to be sure that they can, if necessary, protect their investments by recourse to law, including whenever necessary access to international arbitration.