Publication Name

Environment and Security

This report sets out to identify the issues

that affect the environment of the Caspian

Sea, focussing specifically on the eastern

Caspian Sea shores of Turkmenistan and

Kazakhstan. Reaching beyond an exclu-

sively environmental perspective, the report

analyses the changes that are profoundly

modifying the livelihoods of people living in

the eastern Caspian region and could lead

to social tension or even regional instabil-

ity. The analysis identifies several areas that

correspond to this concern. The boom in the

energy sector in the last ten years has left

a lasting mark on the region, changing its

socio-economic conditions. In many cases

these changes are a stress factor for both

the environment and local communities.

Furthermore, various military and industrial

activities have in the past contributed to en-

vironmental degradation, or still do, which

in turn has a negative impact on human se-

curity. Climate change and natural disasters

are also a risk factor for the eastern Caspian

region. As none of these elements can be

isolated from the others, the report looks at

how these risk factors interact.

The eastern Caspian region is well endowed

with oil and gas resources and since the

1990s the region’s energy sector has enjoyed

massive growth leading to core changes in

the socio-economic conditions of the whole

area. Both the geographical position at the

crossroads between East and West, be-

tween Russia, Central Asia, the Caucasus

and Iran, and the presence of hydrocarbon

reserves have focussed global interest on

the Caspian over the last 20 years.

Growing demand for energy, particularly

fromWestern (EU, USA) and Easternmarkets

(China, India), combined with rising energy

prices and efforts by top energy importers to

diversify sources have encouraged competi-

tion fuelled by commercial and political fac-

tors, making this part of the world the nub

of the “New Great Game”. Over the years

a large number of actors and stakeholders

have been involved in the complexities of

planning and constructing pipeline systems

in a region that has undergone significant

political change since independence.

The break-up of the Soviet Union introduced

four new actors to the region: Azerbaijan, the

Russian Federation, Kazakhstan and Turk-

menistan, which with Iran now border the

Caspian Sea. Since then the legal status of

borders on the Caspian Sea and its shelf re-

sources has been under negotiation. At the

same time the military presence in the re-

gion has increased, a trend that also needs

further monitoring. Protecting oil and gas

infrastructure is a security concern for both

littoral states and major energy consumers.

Clarifying the legal status of the Caspian Sea

is one of the key issues in regulating access

to its natural resources. Clear and agreed

upon regulations increase the predictability

of the situation while decreasing the politi-

cal risks related to possible confrontation

over access to these resources. This in turn

increases the interest for global, regional

and national actors to invest in the Caspian

region. The fact that the legal status of the

Caspian Sea is still an open question under-

lines this reality and the pressure of political

and economical interests towards finding a

common solution. At the same time, states

have been able to find cooperative solu-

tions not only on a bilateral or trilateral basis

but also in a multilateral framework (ie the

Tehran Convention). Past experience has

shown that the Caspian States have been

able to develop a positive dialogue, espe-

cially on environmental issues.

Conclusions and recommendations

Conclusions