RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE on the Commission's review of Member States' energy policies (84/C 160/02) (adopted unanimously at the 242nd session of 17 May 1984)

THE CONSULTATIVE COMMITTEE,

Having studied both the Commission's review of Member States' energy policies and its main findings (1),

Noting that statements by governments indicate that: - the Community's production of oil will decline from 1985 onwards, and indigenous production of natural gas will resume its decline before the decade ends,

- Community oil and gas imports will accordingly increase by nearly one-third by 1990, and their share of gross energy consumption will climb back to some 41 %,

- despite some increase in the contribution of nuclear power, Community dependence on energy imports is not expected to decline further between 1983 and 1990, but is expected to increase from some 42 % to about 47 %,

Conscious accordingly that the Community is still not progressing with the comprehensive and rapid restructuring of its energy consumption which it adopted as a policy objective after the oil crises of 1973 and 1979,

Reaffirming its view, as expressed in a number of resolutions and opinions over recent years (2), that Community energy policy should seek a marked and early reduction in dependence on imported oil and gas and that it is accordingly necessary to implement a Community policy mobilizing all available means with the aim of increasing the contribution of coal to energy consumption, further develop nuclear power and alternative sources of energy as well as of promoting the rational use of energy,

Drawing attention to the development of the electricity sector as a particularly effective means to ensure the diversification of energy inputs and the introduction of alternative sources of energy,

Deeply concerned therefore that the Member States' programmes show that even by 1990 coal's share of gross energy consumption is likely to be only some 20 %, and that the share of Community-produced coal is forecast to decline from nearly 16 to merely 13,5 % of energy consumption,

Believing in consequence that it is necessary urgently to modify existing energy policy which subjects Community supplies to an excessive dependence and involves some risk,

Welcoming in this connection the views of the Commission, according to which oil dependence remains high, particularly in relation to the Middle East dispute, "new difficulties that could arise on the world oil market" ... "the guidelines formulated four years ago are now out of date" ... "the net contribution of replacement fuels will be much less than forecast" ... (in 1990, five Member States - Italy, Greece, the Netherlands, Denmark and Ireland - will still depend on oil for half their energy supplies),

Welcoming the Commission's intention in the course of the next 12 months to forward proposals to the Council concerning new guidelines for the next 10 years,

Stressing with the above prospects in mind that coal is the source of fossil energy with the best availability, both now and in the future, at a price relatively competitive with other fossil fuels, (1) Doc. COM(84) 87 final : "Progress in structural change - The main findings of the Commission's review of Member States'energy policies".

Doc. COM(84) 88 final : "Review of Member States' energy policies".

(2) Resolution of 21 and 22 June 1983 (OJ No C 191, 16.7.1983) ; opinion of 6 and 7 May 1983 (OJ No C 147, 6.6.1983) ; resolution of 8 May 1981 (OJ No C 161, 1.7.1981) ; resolution of 6 June 1980 (OJ No C 161, 1.7.1980) ; resolution of 15 June 1979 (OJ No C 175, 12.7.1979) ; report by Mr Thomas of 11 May 1979 (OJ No C 161, 28.6.1979).

Considering that, in order to guarantee this supply, the Community should at the same time stabilize its production by developing the most efficient capacity, and implement an investment policy to ensure necessary supplies from third countries under favourable conditions, in order to obtain the greatest possible economic benefit,

Believing that the contribution of Community coal is indispensable to the security of supply of all Member States and that, because of long-term coal requirements, measures to maintain this contribution need to be taken by the Community and its Member States for their future security,

Recognizing that market conditions require the Community coal industry to act on a broad front to modify its level of production and, at the same time, to augment the productivity necessary to ensure secure energy supplies to the Community under satisfactory economic conditions,

Reiterating that in the present difficult economic circumstances the Community coal industry needs help to continue the investment effort required to improve productivity in mines with good geological and mining conditions and to open new, efficient productive capacity,

Acknowledging that, if the Community is able to bring about a lasting expansion of the role of coal in meeting Community energy demand, this will in the longer term necessitate an increase in its coal imports from third countries,

Agreeing that "the likely effects on the environment of increased coal use within the Community are not such as to lead the public authorities to slow down efforts aimed at conversion to coal" (1), 1. Congratulates the Commission for the analysis it has made and invites it in consequence to define an overall well-balanced energy policy for the Community in which coal along with nuclear power will have a particularly important role;

2. Welcomes the Commission's proposals for Community aid for investment in the sinking of new mines and the modernization of existing mines, and to provide for additional aid to restructure the industry so that its contribution to meeting energy needs and providing secure supply may be on a firm economic basis;

3. Welcomes the recent extension of the system for aid to Community coking coal and coke, which has worked well as variously amended since 1967, as a positive contribution to Community policy by strengthening security of supply in that sector;

4. Calls upon the Commission to make every effort to give priority to ensuring that the long-term preservation of this measure, which is important to both the coal and steel industries;

5. Urges the Commission to call in the strongest terms on Member States to adopt a policy of accelerated and systematic substitution of oil and gas by solid fuels;

6. Takes the view that one important initiative to achieve this will be to accelerate coal burn in power stations (a potential additional market of the order of 100 million tonnes of coal equivalent), bearing in mind that nuclear energy and lignite have a cost advantage over coal in base load, but that coal is the most suitable and economic fuel for all medium load conditions;

7. Emphasizes that there is a great potential for substitution of oil and gas by coal in the general industrial sector, domestic heating and among small consumers (a potential market of some 150 million tonnes of coal equivalent);

8. Considers therefore that the Commission should develop, in collaboration with the coal industry (producers, workers and consumers and dealers), a comprehensive action programme aimed at overcoming as rapidly and effectively as possible the psychological, financial, technical and planning impediments to a more extensive conversion to coal, despite the latter's clear price advantage;

9. Suggests that the proposals already made by the Commission and supported by the Consultative Committee concerning: - the priority to be given to coal as a means of substitution,

- the promotion of investment in rational energy utilization, (1) The role for coal in Community energy strategy (OJ No C 105, 26.4.1982).

- the promotion of demonstration projects in the energy sector, particularly by the substitution of solid fuels for hydrocarbons,

- the promotion of research and development in coal-utilization technology,

would gain greater significance in the context of the comprehensive action programme described above, supports the Community policy on the rational use of energy and on research, and invites the Commission to promote this policy and support the national efforts in this field with a view to creating new jobs;

10. Requests the elaboration of a strategy associating the relevant parties within the Community, notably the developing countries, so that they may invest in the world coal chain, and thus safeguard this indispensable complement to Community coal supply while at the same time ensuring important outlets for the equipment-manufacturing industries of the Community;

11. Draws attention to the underlying economic and social considerations involved in a strategy for coal which it regards as of equal importance;

12. Expresses the hope that the Council may decide without further delay on the proposed transfer of 60 million ECU from the general EEC budget to the ECSC budget for 1984 and subsequent years to assist in finding a solution to the social problems arising from the restructuring of the coal sector;

13. Stresses that technical mining and utilization research and development is a fundamental requirement for improving the productivity and competitiveness of the Community coal industry and that Community aids in these important fields should be maintained and increased;

14. Reaffirms the vital importance of maintaining Community mining undertakings, so that a solidly-based and long-term employment and investment policy can be pursued in the interest of job preservation and the livelihoods of hundreds of thousands of people in regions whose economies depend upon coal and its utilization.