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- ..'V v. '>' COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 18.11.1997 
COM(97) 550 final 
97/0302 (CNS) 
Proposal for a 
COUNCIL DECISION 
'y-^xA y.-."3 adopting a multiannual framework programme for actions in the energy sector 
(1998-2002) and 
CONNECTED MEASURES 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
INTRODUCTION 3 
1. IMPROVING THE COHERENCE AND EFFECTIVENESS OF ENERGY POLICY 7 
1.1 Generallogic 7 
1.1.1 Horizontal actions 7 
1.1.2 Thematic programmes 7 
1.1.3 Co-ordination of energy components under other Community programmes 
and policies 8 
1.2 Structure of the framework programme 8 
1.2.1 Legislative basis 8 
1.2.2 Bodies 8 
1.2.3 Management and control 9 
1.3 Actions and programmes 10 
1.3.1 Prospective analyses and market monitoring (cf.. Annex II) 10 
1.3.2 International energy co-operation (cf. Annex III) 12 
1.3.3 Promotion of renewable energy sources and implementation of a strategy and 
Community action plan in this area (cf. Annex IV) 14 
1.3.4 Encouragement of energy efficiency (see Annex V) 16 
1.3.5 Promotion of clean and efficient use of solid fuels (cf. Annex VI) 17 
1.3.6 Co-operation in the nuclear sector on safety, industrial collaboration with 
Russia and the New Independent States, transport of radioactive 
materials, including the fight against illicit trafficking) (cf. Annex VII) 18 
1.4 Co-ordination with energy components of other Community Programmes and Policies 21 
1.4.1 Support for research and technological development 21 
1.4.2 Trans-European energy networks t 21 
1.4.3 Other policies or programmes 22 
1.5 General financial elements 22 
2. IMPROVING THE CO-ORDINATION OF THE ENERGY COMPONENTS OF THE 
VARIOUS COMMUNITY POLICIES 23 
CONCLUSIONS 24 
ANNEXES 
-2 
PROPOSAL FOR A COUNCIL DECISION 
adopting 
a multiannual framework programme for actions in the energy sector 
(1998 - 2002) 
and connected measures 
EXPLANATORY MEMORANDUM 
INTRODUCTION 
Calls for the establishment of a framework programme for actions undertaken as part of 
energy policy have been heard in the institutions on numerous occasions during 
discussions on this sector, culminating in a formal request by the «Council.1 On the 
occasion of their examination of the Commission communication on "An overall view of 
energy policy and actions",2 the European Parliament3 and the Economic and Social 
Committee4 expressed the same sentiment. 
Developments related to energy - a vital sector for the economy of the Union and the 
well-being of the European citizen - require a response with a suitable energy strategy: 
The decision taken at the Denver Summit to convene a GS meeting in Moscow in the 
spring of 1998 which is entirely devoted to energy confirms, if there were any doubt, the 
importance that has to be attached to this sector and all the questions relating thereto. 
The communication of 23 April 1997 on "An overall view of energy policy and actions", 
drawn up at the express request of the Council, clearly outlined the following situation: 
I. The Union is, and will increasingly be, confronted with major challenges in terms 
of energy strategy: 
a) By 2020, the degree of external dependency for energy supplies, currently 
standing at 50%, could reach, if current trends continue and no measures are 
taken, 80% for coal, 70% for natural gas and 90% for oil, the latter two 
1 Council Resolution of 8 July 1996 on the White Paper "An energy policy for the European Union" 
(OJ No C 224, 1.8.1996) and Council Regulation (EC) No 701/97 adopting the SYNERGY 
programme (OJ No L 104, 22.4.1997). 
2 COM(97)167finalof23.4.1997. 
3 EP reference... 
4 EC reference... 
remaining the two main sources of energy used in Europe for the foreseeable 
future; moreover, this dependency has to be seen in a geopolitical context 
whose development is very difficult to predict and it should be noted in this 
connection that the analysis and planning group of the Council (COPLA) has 
been instructed by the Political Committee of the CFSP to devote its work in 
the second half of 1997 to the importance of the new geopolitical energy 
situation for the European Union. A security of supply strategy based on 
diversification of sources, the promotion of renewable energy sources 
indigenous to the Union, combined with rational use of energy is required, 
supported by «greater international co-operation and the development of 
trans-European energy network infrastructures connecting the Union to 
external supplies. 
b) The need for vigorous action to improve the competitiveness of Union 
businesses, which are too often handicapped by energy costs higher than those 
borne by their non-European counterparts, particularly American companies 
(for instance, it is estimated that in the chemical sector European companies 
pay up to 45% more than their US counterparts). 
c) The need to ensure that the development of the energy market is compatible 
with environmental objectives, given the concerns expressed by European 
citizens and the international commitments of the Community. The alarming 
level of pollution at the very heart of European cities and the impact of climate 
change on the environment and public health give a sharp reminder to 
governments and citizens about the urgent and far-reaching measures to be 
taken in the field of energy choices. The current discussions in the context of 
the Climate Change Convention and the measures which will have to be taken 
after the Kyoto Conference put a particular stress on this necessity. These 
decisions imply a profound change in consumer culture to be brought about 
through a voluntarist policy on supply and demand. 
II. The Community is pursuing numerous actions in the energy field, but these are 
scattered: 
a) either between different energy policy programmes set up at different times 
and in different circumstances;5 
b) or over various Community policies, such as environment, taxation, external 
relations,6 internal market, structural policies, research or even agricultural 
policy. 
This situation has arisen from the gradual development of the approach to energy 
questions within the Community and the desire to deal with all aspects of this complex 
question. The instruments established to this end have demonstrated their ability to 
5 SAVE,, ALTENER, SYNERGY, .... 
6 Including the energy parts of the PHARE and TACIS programmes. 
respond and overall their operations may be considered satisfactory. Such a scattering of 
actions does however have the following consequences: 
• some lack of transparency for the parties involved; 
• the risk of duplication; 
• a danger of inconsistency between the various actions; 
• management difficulties; 
• use of resources which is not always optimum; 
• missed opportunities for synergistic effects and for maximising complementarity 
of actions. 
In order to respond effectively to the challenges and difficulties that have to be faced, 
Community energy policy should be both more focused and more integrated. The 
establishment of the internal market in gas and electricity in accordance with the principle 
of competing, open markets is a key element in this respect. 
At the level of the actions undertaken by the Community, the concentration of 
operations is the primary condition for an effective policy. In the case of energy, it means 
that efforts must be focused on the following three priority objectives: 
• security of supply; 
• competitiveness; 
• environmental protection. 
Every energy related action, whether taken under the energy policy as such or under 
another Community policy, will have to contribute to these objectives. 
However, if each of these objectives is pursued in a purely "operational" way, the limits 
would soon be reached and the objectives could even prove incompatible with each other. 
The complexity of the situation in which energy policy operates makes it necessary, 
perhaps more than in other fields, to strive for a satisfactory balance between the various 
political, economic and social factors in play. Only a genuinely integrated approach can 
take adequate account of all aspects of the problems to be solved, as has been shown for 
instance by the strategy adopted for the implementation of the "auto oil" programme. 
It is also particularly significant that Agenda 2000 mentions that "The external dimension 
of Community policies- on the environment or energy, for instance - will more than 
before become an integral component of its external policy". 
Energy policy needs to be given higher priority. In order to maximise the benefit from the 
support given by the Union, actions relating to energy policy will have to be implemented 
in accordance with the following guidelines; 
-5-
• every Community action must contribute directly to the achievement of one or 
more of the abovementioned priority objectives; 
• significant improvement in co-ordination between all actions with an energy 
component; 
• greater co-operation between the various interested parties within the Community 
institutions and in the Member States, in full accordance with the principle of 
subsidiarity; 
• ability to respond quickly to developments; 
• clarification and simplification of procedures; 
• strengthening of actions on the basis of priorities and needs. 
Finally, it is essential that this principle of coherence and co-ordination be applied at all 
levels: 
• in Community energy policy itself: the "energy" framework programme has been 
established with this in view (cf. Chapter 1); 
• between the energy components found in a number of other Community policies 
which will be ensured by the establishment of an appropriate structure within the 
Commission (cf. Chapter 2); and the reinforcement of existing co-ordination. 
• with the Member States and the interested parties.7 
Care will also be taken to ensure that the external image of the framework programme is a 
coherent and integrated one. To this end, the Commission will identify key messages and 
target groups for all the information and communication actions organised under the 
programme. Actions aimed at the general public will also be organised, exploiting the 
information networks available in the Member States. 
Co-operation with the Member States and interested parties is set to develop in the appropriate bodies 
provided for firstly by Commission Decision 96/642 of 8 November 1996 setting up an Energy 
Consultative Committee and secondly by the proposal for a Council Decision COM(97)436 
concerning the organisation of co-operation around agreed Community energy objectives. 
-6-
1. IMPROVING THE COHERENCE AND EFFECTIVENESS OF ENERGY POLICY 
. 1.1 General logic 
The main aim of an Energy framework programme is to ensure the 
coherence and effectiveness of actions undertaken under energy policy; it 
will, then, be the effective instrument for rationalising the programmes 
stemming directly from that policy and obtaining the maximum benefit. As 
mentioned above, these programmes were drawn up and implemented at 
different times and in different circumstances: they now have to be 
incorporated into a more integrated, transparent and effective approach, 
established for a period of five years. 
The logic of this approach will be based on the links between horizontal 
actions and thematic actions or programmes. These two categories of 
actions, described in greater detail in - Section 1.3 below, will be 
complementary and organised so as to focus on the priority objectives which 
will remain the constant point of reference for any operation carried out. 
In terms of resources (cf. Section 1.5), the amounts allocated are determined 
by present financial perspectives. Beyond that period, reassessments and/or 
increases will have to be made on the basis of political requirements and 
priorities. 
1.1.1 Horizontal actions 
By their nature, these actions go beyond any specific programme, making a 
global contribution to the priority objectives. While they have their own 
purpose, they will also ensure that actions taken under the thematic 
programmes in the framework programme are co-ordinated and will 
contribute towards coherence with other Community policies. They cover: 
• Prospective analyses and market monitoring 
• International energy co-operation 
1.1.2 Thematic programmes 
These programmes correspond to specific priority themes under the Union's 
energy policy and are justified because they contribute to priority energy 
policy objectives, with a particular emphasis on the promotion of 
environmentally friendly technologies and sustainable development: 
1) Promotion of renewable energy sources and implementation of a 
Community strategy and action plan until 2010 
2) Promotion of energy efficiency and energy saving 
3) Promotion of clean and efficient solid fuels technologies 
4) Nuclear sector co-operation on safety, industrial co-operation with NIS, 
transport of radioactive materials, including measures to combat illegal 
trafficking 
1.1.3 Co-ordination of energy components under other Community 
programmes and policies 
This particularly concerns two types of action which are very important for 
the energy sector, in terms of both content and the scale of the resources 
employed, but which fall within a specific procedural framework and are not 
therefore included as such in this framework programme : 
• Support for research and technological development (RTD) 
• Trans-European energy networks 
Attention will also be paid to improved co-ordination between all other 
policies or programmes whose area of activity include energy components, 
such as external relations (PHARE, TACIS, MEDA), structural fiinds or 
investment support. 
1.2 Structure of the framework programme 
1.2.1 Legislative basis 
The implementation of the framework programme will be based on 
• a basic decision setting out the general framework, its duration, its 
main financial elements and the implementing bodies; the annex to this 
decision " .. ., sets out on an indicative basis the spreading of 
resources between the different specific actions 
• where necessary, specific measures designed to specify the objectives, 
contents and details of each of the actions in question and which, where 
appropriate, will replace the corresponding acts currently in force or in 
the course of being adopted (cf. Annexes II to VII). 
The decision relating to the framework-programme itself will be based on 
Article 235 EC. Those specific actions whose particular focus is the 
promotion of environmental friendly technologies will be based on 
Article 130s, § 1, and the other ones will be based on Article 235. In order to 
maximise transparency and to ensure the degree of coherence necessary for 
the definition and implementation of the approach, it is important that these 
texts should be considered as a package. 
1.2.2 Bodies 
The guiding principle in the search for greater coherence is that particular 
care should be paid to the effectiveness of the decision-making process, 
which itself is based on improved co-ordination, flexibility and availability of 
information. 
The approach will be based on the setting-up of a single committee, 
consultative in nature, for the Energy framework programme (horizontal 
actions and thematic programmes). This single committee will cooperage 
with all the bodies involved, including the various committees mentioned 
below. It will actively contribute towards the co-ordination between energy 
measures undertaken under the various Community policies, and will 
examine the report drawn up periodically by the Commission on the co­
ordination between actions. 
However, given the wide range of questions to be dealt with, and their 
technical complexity, the working methods and organisation must be as 
flexible as possible to ensure access to all the specialist skills required. It 
will be for the single committee to organise its working procedures 
accordingly. 
The establishment of this committee does not affect some of the bodies set up 
for a very specific purpose which will continue their work. This applies to, 
among others: 
- the Consultative Committee on Energy;8 
- the Committee for co-operation around agreed Community objectives;9 
- the Guidelines Committee (trans-European energy networks); 
- RTD management bodies set up in accordance with the procedures of the 
4th and 5th RTD framework programmes. 
1.2.3 Management and control 
By among other things avoiding duplication of effort, integration of the 
approach, instruments and bodies will ensure: 
• optimum management of resources, also guaranteed by recourse to 
costTbenefit analyses; 
• complete transparency for all the parties involved (institutions, Member 
States, companies). 
Systematic evaluation of the actions will be carried out at regular intervals. 
Every year, the Commission will review the implementation of the framework 
8 Commission Decision 96/ 642 of 8 November 1996 setting up an Energy Consultative Committee, OJ 
NoL 292, 15.11.1996. 
9 Proposal for a Council Decision COM(97)436 concerning the organisation of co-operation around 
agreed Community energy objectives. 
9-
programme and its specific parts, and make the appropriate changes in the 
implementation. In the third year of the framework programme and, in any 
event, before presenting its proposals modifying this framework programme 
or proposing subsequent programmes, the Commission will ask independent 
experts to carry out an overall external evaluation of the Community actions 
carried out under the Energy framework programme. 
1.3 Actions and programmes 
The implementation of the framework programme will rationalise to a 
significant extent all the actions and programmes referred to in points 1.1.1 
and 1.1.2 above and provide a further benefit in the shape of greater synergy 
and complementarity between these actions and programmes. The objective 
of this section is to describe these actions and/or programmes and identify 
developments or improvements which might be decided upon as policy 
requirements and priorities evolve. In accordance with the Commission's 
recommendations on reinforcing the pre-accession strategy as mentioned in 
Agenda 2000, candidate countries will be given the opportunity to participate 
in all the actions and programmes undertaken under this framework 
programme. 
Horizontal actions 
1.3.1 Prospective analyses and market monitoring (cf.. Annex 11) 
More than any other, energy policy cannot be conceived without taking 
account of the medium and long-term prospects. This need, underlined by 
the Commission in its Energy White Paper,10 was endorsed by the Council 
and the European Parliament in their examination of this document. 
The studies, analyses, forecasts and connected work (dissemination and 
discussion of results) already form part of the Commission's activities 
concerned with the formulation of energy policy. To do this, the Commission 
relies on the expertise that it has promoted at the most distinguished 
European centres in this field. This makes it possible to avoid duplication of 
effort and exploit at the lowest cost the results of the work and the 
knowledge gained, funded by the various departments of the Commission 
and/or the Member States. 
However, progress has to be made in the area of shared analyses: 
analysis in the energy field is currently in a transitional phase which makes it 
more difficult to carry out. The situation is changing in economic terms, 
given the gradual opening up of energy markets, the increasing importance 
of environmental constraints, and technological prospects calling for the 
development and application of new concepts and different methods taking 
into account work undertaken under the RTD Programme. As regards the 
framework programme, the new analysis must therefore go further, 
10 « An energy policy for the EU" COM(95)682 final, 13.12.1995. 
-10-
strengthening co-operation between the Commission and the Member States 
on the forecasts and involving firms, academic circles and other sources of 
knowledge or experience in the work. The fundamental aim of this 
programme and of the actions proposed in response to this requirement is to 
ensure that decisions at national and Community level on energy matters can 
be taken on common analytical bases. The objective is clearly not to achieve 
standardisation but to align points of view so that those taking decisions have 
identical reference bases in terms of: 
• economic studies and analyses; 
• energy forecasts; 
• the dynamics of energy systems. 
In this context, particular attention should be paid to the effects of the 
implementation of the Single Currency, considering the positive impact on 
competitiveness which can be expected from "EURO-pricing" of oil. 
This action, aimed at greater co-ordination of the factors to be taken into 
account, will be based on the development of an effective partnership 
between the Commission, the Member States and the other parties involved 
in the energy field and will find expression in a work programme covering the 
energy sector in the widest sense. The introduction of coherent analysis 
procedures will make it easier to identify the main questions arising in 
connection with the priority objectives of security of supply, 
competitiveness and environmental protection. 
In this connection, the main areas for actions covered by this programme are: 
(a) identification, at European level, of the major problems concerning 
future energy demand and production as well as energy policy, with 
special emphasis on: 
• strategies for responding to the challenge of climate change in 
energy terms and more general questions relating to the 
environment (including an evaluation of the cost of possible 
responses); 
• the dynamics of the opening up of energy markets and 
corresponding structures, particularly in terms of consequences 
for the future and behaviour of firms; 
• world energy market trends and their influence on the external 
dependency of the European Union (in particular the anticipated 
significant increase in energy demand in Asia and Latin America); 
(b) improved analytical capability so as to be able to identify energy trends 
and possible scenarios on a comparable basis in all Member States, 
having regard in particular to the evolution of market structures and the 
challenge posed by climate change. 
-11-
The need for action in this area is clearly in line with the priority objectives 
on energy matters, particularly as regards the environmental aspects 
(underlined again by the Council at its meeting on 27 May 1997) and the 
completion of the internal energy market, a key element for the 
competitiveness of European firms. 
The action will reinforce the achievement of the energy policy objectives as 
outlined in the White Paper and will build on the efforts already underway. 
The annual appropriations necessary to implement these actions are indicated 
in the financial statement in Annexe II. 
1.3.2 International energy co-operation (cf. Annex III) 
The international dimension is assuming increasing importance in 
energy questions affecting the Union. 
The increasing dependency of the Union on its external suppliers above all 
raises the question of security of supply. The situation is moreover 
complicated by the emergence of energy-hungry markets in the developing 
countries, whereas the European market is expanding only slowly. The 
competitiveness of European businesses in the face of these new markets is 
also of paramount importance. The fact that the major environmental 
problems connected with energy consumption now affect the whole planet 
requires global co-operation which takes account ôf the circumstances of all 
the parties involved, including %the role of energy as a key element of 
sustainable economic development. Finally, steps should be taken now to 
prepare for the changes that enlargement will inevitably bring for Union 
energy policy. 
SYNERGY represents the main external element of the Energy framework 
programme. It constitutes the link between an internal policy and the 
external actions of the Community and is one of the main supports for 
penetration by Community firms of the major external markets. It is 
important in this connection to emphasise that with the technologies 
associated with renewable energy sources and the improvement in energy 
efficiency, the Union has significant industrial and employment potential 
which would be further strengthened if new outlets in third countries were 
opened up to trade with the Member States. 
Compared with other Community instruments which might bè involved in 
external actions in the energy sector, SYNERGY will concentrate on the 
achievement at international level of the three objectives of the framework 
programme: global competitiveness, security of supply and environmental 
protection. Moreover, SYNERGY will seek to improve co-ordination, in the 
interests of greater efficiency, of the various international actions carried out 
by the Community in the energy field and ensure greater coherence with the 
work of international organisations in the sector. 
Within a framework which takes greater account of all energy aspects on the 
one hand and medium term strategy on the other SYNERGY will help to 
12-
fund co-operation on the formulation, preparation and implementation of 
energy policy in areas of mutual interest. However, SYNERGY does not 
fund actions relating to research and technological development, 
demonstration projects or energy infrastructure investment. Projects of this 
type can be financed under other Community instruments. Similarly, 
SYNERGY is not an instrument for assistance to or economic co-operation 
with third countries. SYNERGY actions mainly concern third countries 
facing energy challenges, mainly those in Central and Eastern Europe, the 
New Indépendant States, non-member countries in the Mediterranean basin, 
Latin America and Asia and the African, Caribbean and Pacific signatories to 
the Lomé Convention. SYNERGY can also cooperate with international 
organisations engaged in this sector (e.g. International Energy Agency, the 
Latin American Energy Organisation), international financial institutions 
(EE3, World Bank, EBRD) or developed countries (USA, Japan, Norway 
etc.) to initiate actions of mutual benefit in third countries. The programme 
will be more clearly slanted in favour of Community interests. It will 
therefore be possible for most actions to be initiated by the Union alone, 
including those in the field of energy supply as well as demand. 
On the basis of these guidelines, a multiannual programme of actions to be 
initiated and a list of beneficiary countries are annexed to the decision 
adopting the SYNERGY programme. Under this multiannual programme 
specific action plans will then be established each year on the basis of: 
• other Community programmes and instruments; 
• actions carried out in certain third countries by the Member States; 
• needs expressed by the national industries of the Member States; 
• needs expressed by beneficiary countries. 
To take account of the various complementary elements, these plans will be 
drawn up in a process of consultation of the departments concerned within 
the Commission then submitted to the single committee set up by the Council 
Decision establishing the Energy framework programme. This committee 
will also receive periodic reports on the implementation of the various 
programmes. 
The co-operation will take the form of: 
• advice on energy policy; 
• visits by experts to bodies in third countries; 
• energy studies and forecasts; 
• assistance for international networks discussing and advising on energy 
policy; 
training actions (courses, seminars, technical missions); 
-13-
• co-ordination of the various Community instruments involved in 
international actions in the energy sector; 
• dissemination of information, (brochures, newsletter); 
• promotion of dialogue and exchanges of information and experience 
through conferences, seminars, etc. 
The funding provided by SYNERGY could cover the total requirement of a 
particular project where it is in the interests of the Community alone or take 
the form of cofunding with another partner. 
The total budget for this programme must be sufficient to contribute 
effectively to an improvement in the coherence and complementarity of the 
internal and external dimensions of Union policies, as stressed by the 
Commission in Agenda 2000. nThe breakdown of the required funding is 
indicated in the Financial Statement in Annex III. 
Thematic programmes 
1.3.3 Promotion of renewable energy sources and implementation of a 
strategy and Community action plan in this area (cf. Annex IV) 
Renewable energy sources (RES) help to protect the environment and ensure 
security of supply through diversification of sources. Their increased use 
will also help to achieve other Community objectives of major importance 
such as regional development, economic and social cohesion, employment 
and competitiveness. 
The aim of this action, which adopts the main elements of the proposal 
already presented by the Commission concerning the ALTENERII 
programme,12 is to help increase use of renewable energies and hence of 
their share in the Community's energy balance, including by facilitating the 
legal, socio-economic and administrative conditions required for the 
implementation of the White Paper and action plan for renewable energy 
sources up to 201013 being adopted by the Commission following the wide 
ranging discussions on the 1996 Green Paper.14 
Once these conditions have been determined, it will be easier to encourage 
private and public investment in the production and use of-energy from 
renewable sources. The economic penetration of renewable energy sources 
11 Agenda 2000, Vol. 1, Part 1, Section IV.2 "A strong and coherent Europe". 
12 COM(97) 87 final of 12.3.1997. 
13 COM(97)... 
14 "Energy for the future: renewable energy sources. Green Paper for a Community strategy", 
COM(96) 576 final of 20.11.1996. 
14 
will be helped by targeted actions aimed at increasing operator confidence 
through assistance with the preparation and presentation of projects and 
through the development of new funding possibilities (such as third party 
financing). 
Specific actions eligible for funding, which will involve the promotion of 
market penetration of innovative environmentally friendly technologies, which 
have proved their value and effectiveness will cover among other things: 
• monitoring of the implementation of the strategy and action plan regarding 
RES, and evaluation of the measures to be taken under this programme; 
• market penetration of RES by facilitating, among other things, access to 
specialist advice, analysis of market prospects,' choice of location of 
projects, drawing up of funding plans; the projects will cover, among other 
things, biomass and waste, photovoltaic and thermal solar systems, solar 
power in buildings, small-scale hydroelectric projects, wind power and 
geothermal energy; 
• promotion of product and equipment standardisation; 
• extension of infrastructures for the development of RES in local and 
regional planning, design and evaluation, information, education and 
training; 
• circulation of information with a view to improved co-ordination between 
international, Community, national, regional and local activities, as well as 
the pooling of experience and know-how; 
• studies or other work aimed at implementing or complementing 
Community measures taken to develop the potential of the various 
renewable energy sources. 
The contribution of the renewable energies to the primary energy 
requirements of the European Community is currently slightly below 6% and 
represents some 70 million tpe. In its abovementioned Green Paper, the 
Commission proposed a significant increase in the use of renewable energy 
sources by the year 2010. The proposed indicative target of a doubling of the 
share of renewable energies by 2010 has been confirmed during the 
consultation process and integrated in the White Paper. 
This programme is a fundamental element of the implementation of the 
strategy and action plan for renewable energy sources which will give effect 
to the Paper. The budget available for the actions must be sufficient to make 
a significant contribution to the achievement of this Community objective. 
Details are outlined in the Financial Statement in Annexe IV. The increase 
proposed from 2000 onwards is aimed at taking full advantage, with the new 
financial perspectives, of the White Paper and the action plan. It should also 
be emphasised that the increased use of renewable energies will contribute to 
economic and social cohesion, particularly through the exploitation of local 
energy sources. 
-15-
1.3.4 Encouragement of energy efficiency (see Annex V) 
In the medium and long term, prudent and rational end use of energy 
resources is, in terms of cost effectiveness, the best available solution for 
reducing CO2 emissions. 
The programme SAVE II, adopted by the Council in December 1996,15 has 
proved its effectiveness as a non-technological programme in promoting the 
rational use of energy in all consumer sectors. The previous programme 
(SAVE I) had already made an important contribution towards the 
Community's energy objectives, implementing a wide range of measures such 
as legislative acts, practical pilot projects, studies, monitoring and evaluation 
of progress on energy efficiency, dissemination of information and innovative 
mechanisms for funding and awarding contracts. 
In connection with SAVE, the Council and the Commission have adopted 
nine directives on energy efficiency in domestic appliances, buildings and 
industry: This programme of legislation, as well as the other measures, will 
have to be continued. 
Electricity is of particular importance in the energy sector, since its 
production accounts for around 35% of primary energy consumption and 
30% of CO2 emissions. The end use of energy offers great potential for 
improving efficiency in all sectors of activity (domestic and industrial). The 
old PACE programme, a Community action programme to improve the 
efficiency of electricity use, adopted in 1989 by the Council, has been 
integrated in full into SAVE II. PACE provided for a range of measures to 
improve the energy efficiency of various types of equipment (domestic 
appliances, electric motors), to promote information for consumers on the 
purchase and use of efficient electrical equipment etc. ... These actions, which 
make a significant contribution to reducing CO2 emissions will have to be 
pursued under the new Energy framework programme. In this connection, 
particular attention could be paid to actions to promote energy management 
at regional and local level which could usefully be developed in conjunction 
with the City of the Future project. 
In the context of enlargement, the benefits of measures linked to energy 
efficiency will take on a new dimension when the pricing policies and 
metering practices used in the applicant countries are more in line with 
market-oriented mechanisms. 
If these objectives, which are particularly important given the priority 
accorded to environmental considerations, are to be achieved, the funds 
allocated for the SAVE II programme (whose period of application as 
currently fixed by the Decision of 16 December 1996 will be aligned with that 
of the Energy framework programme) will have to be increased accordingly 
15 Council Decision of 16 December 1996 concerning a pluriannual programme for the promotion of 
energy efficiency in the Community (SAVE II), OJ No L 335 of 24.12.1996. 
16 
in line with the new financial perspectives. Details of the estimated financial 
requirements are given in the Financial Statement in Annex V. 
7.3.5 Promotion of clean and efficient use of solid fuels (cf. Annex VI) 
Solid fuels play à considerable part in the energy balance of the Union, and 
account for 30% of electricity generation. They play a major role in security 
of supply and, as a key element in the establishment of the internal market, 
effectively regulate the prices of other fuels such as natural gas. Maintaining 
diversification of the energy balance and access to all sources is crucial to 
security of supply but also to a balanced approach to the three priority 
objectives of Union energy policy. However, a prerequisite to this is the 
increased penetration of cleaner and more efficient technologies for solid 
fuels, in order to reduce pollutant emissions. 
Clean and efficient solid fuel combustion technologies are rich in potential in 
terms of reducing emissions not only of CO2 but also SO2 and Nox, which 
cause acidification. The action proposed under the Energy framework 
programme (CARNOT) is intended to help achieve this objective. The 
Community must play a role in promoting the market penetration of these 
technologies, encouraging the companies in this sector to establish the 
necessary long term strategies with a view to replacing the thermal power 
stations currently in operation. 
Encouraging the clean and efficient use of sold fuels is particularly urgent 
with the prospect of enlargement. Most of the applicant countries are large 
scale producers and consumers of solid fuels: in Poland, coal and lignite 
account for 76% of primary energy consumption and 94% of electricity 
generation. The corresponding figures for the Czech Republic are 62% and 
76% respectively, and 19 and 27.5% for Hungary. In spite of the reforms 
carried out by these countries with a view to greater diversification, it is likely 
that a significant proportion of their production of solid fuels will continue. 
Conversion of the plants using these fuels is of mutual interest to the 
applicant countries and the Union in both economic and environmental terms. 
The experience of converting plants burning lignite in the new German 
Lander provides a good example of the potential contribution of lignite from 
the countries of Central and Eastern Europe to the energy supplies of an 
enlarged Europe. Technological co-operation on "clean coal" will help to 
integrate those countries into the European Union. 
The year 2002 will see the expiry of the ECSC Treaty which has made a 
major contribution to economic and social expansion in Europe. The 
experience gained with the ECSC Treaty is an asset that the Community must 
exploit to the full. It is particularly important to ensure that the results of 
research already financed or currently under way under the ECSC are 
sufficiently exploited. This proposed action aims to bring new more 
environmentally friendly solid fuel technologies closer to the market. 
Actions to promote the clean and efficient use of solid fuels are in line with 
the conclusions of the Amsterdam European Council on growth and 
17-
employment, which approved allocating financial resources from its reserves 
to 'coal' and 'steel' research on expiry of the ECSC Treaty. The proposed 
CARNOT action under the Energy framework programme will complement 
this future research activity. 
Finally, for the technologies in question, the growth prospects on external 
markets such as China, ASEAN, India etc. are rich in potential for European 
companies, while at the same time helping to reduce greenhouse gas 
emissions, a problem affecting the whole world. 
Details of the financing required for this programme are given in the Financial 
Statement in Annex VI. 
1.3.6 Co-operation in the nuclear sector on safety, industrial collaboration 
with Russia and the New Independent States, and the transport of 
radioactive materials, including the fight against illicit trafficking 
(cf. Annex VII) 
The nuclear sector is the subject of a number of Commission action 
programmes, mainly in the areas of research, technological development and 
education, nuclear safety, health protection, technical assistance and co­
operation with the countries of Central and Eastern Europe and the New 
Independent States, the transport of radioactive materials and the 
implementation of safeguards. Although most of these operations do not fall 
under energy policy in the strict sense, three actions (co-operation on 
safeguards, industrial collaboration with the New Independent States 
and the transport of radioactive materials, including the fight against 
illicit trafficking) come directly under that policy and should therefore 
constitute a specific part of the Energy framework programme. 
Given the existing provisions in the Euratom Treaty, the implementation of 
such action does not require the adoption of specific formal acts. 
However, continued funding should be provided for these actions, the need 
for which is beyond question. 
Co-operation in relation tô the accounting and monitoring of nuclear 
materials (safeguards) as part of technical assistance to the New 
Independent States and Mongolia 
The aim of these measures is to help to improve and computerise the system 
of accounting and safeguards at all levels: installation (site), regional centres, 
company headquarters and national systems. 
In 1993, the Euratom Safeguards Directorate began to collaborate with 
Russian officials with responsibility in this area and, since 1994, specific 
projects have been drawn up. The results of this co-operation are certainly 
encouraging but it will have to be pursued for some time still to achieve the 
desired objectives. As regard Russian participation, apart from training and 
familiarisation, seven inspections and two measurement workshops have been 
organised. From these it emerges that the technical knowledge and 
experience of Russians working in the field of nuclear technology is 
-18-
considerable but the training requirements in relation to modern methods of 
organisation, evaluation and logistics are still great. As regards systems 
design, seven Russian experts worked for a period of eight weeks each in 
Luxembourg from October Ï993 to March 1994. Each period was followed 
by an examination and evaluation of their contributions and conclusions. 
Two seminars were organised within the European Union and a conference 
on nuclear safeguards in St Petersburg. 
It is then useful to pursue measures relating to training and familiarisation in 
the techniques, methods, logistics and evaluation of modern nuclear safety. 
Co-operation should therefore continue between Russia and Euratom in this 
sector, particularly with a view to combating the illicit trafficking of 
radioactive materials. With the entry into force of the partnership and 
co-operation agreements with the New Indepedent States, these activities will 
be further extended. 
In budget terms, the actions in question are funded under TACIS, but as the 
Commission has decided16 that their management should be the responsibility 
of the services in charge of energy policy, it is proposed to examine 
transferring the corresponding appropriations to a budget heading specifically 
relating to energy policy. 
Industrial co-operation with Russia and the NIS: 
Nuclear energy now provides, with the required degree of security, a 
significant proportion of the electricity requirements of the Community, with 
significant environmental implications. The use of nuclear energy is however 
conceivable only if appropriate safety and industrial viability criteria are met. 
This is the case today in the Community, but it is reasonable to take a critical 
look at the situation in certain neighbouring countries, particularly Russia, the 
Ukraine and a number of others which have applied for membership, which 
may wish to expand their use of nuclear energy as their economies develop. 
It is therefore important to go beyond specific short term measures to 
improve the safety of nuclear plants in operation and examine ways of 
ensuring that in the longer term the use of nuclear energy is accompanied by 
all the necessary safety guarantees comparable to those used in the Union. 
For some years the Commission has been carrying out studies and conducting 
working groups with experts in the European nuclear industry, focusing 
mainly on Russia at this stage, in order to gain a better knowledge of the 
present state of the local nuclear industry and define a possible approach to 
achieve a fundamental improvement in safety. This approach is based on the 
concept of transferring the culture of safety through industrial co-operation, 
which is particularly attractive for a country which wishes to expand its use 
of nuclear energy. The Commission is currently studying with the Russian 
authorities the technical, financial and legal barriers to the establishment of 
co-operation schemes between businesses. This process should lead by the 
16 Commission Decision C(97)2879 of 24.9.1997 on the funding of Euratom nuclear safeguards. 
19-
beginning of 1998 to the definition of courses of action and proposals which 
it would be unwise not to pursue. This requires funding of more detailed 
studies of particular problems (e.g. the conditions required for investment, 
specific legal difficulties, etc.) and providing the means to solve generic 
problems. The objective for the Commission is to help establish industrial co­
operation on the largest possible scale without becoming involved in carrying 
out specific projects which is a matter for the operators concerned. 
Transport of radioactive materials 
The production of electricity by means of nuclear power and the increasing 
use of radioactive materials in the health sector, industry or research requires 
such materials to be transported under conditions which guarantee the safety 
of the general population and workers in the industry; in order to take 
account of developments in the transport of radioactive materials, progress of 
technology and know-how and ever stricter obligations concerning 
radiological protection, international, Community and national laws will have 
to adapt to the new circumstances and requirements. 
At the request of the European Parliament, the Commission set up in 1982 a 
standing group of experts in the field of the transport of radioactive materials 
to advise it on the studies and experiments to be carried out and the 
legislation to be drawn up in this sector. The most recent recommendation of 
this groups calls for the implementation of a five-year multiannual programme 
with appropriate funding. This programme should revolve around six fields 
of activity which would benefit from action at Community level: 
• facilitating the functioning of the internal market by identifying the 
harmonisation measures that are required; 
• contributing to the subsequent evolution of legislation through the 
development of experimentation and know-how; 
• evaluating incidents occurring during transport and learning the lessons for 
the future; 
• improving the coherence of emergency measures and the training of those 
involved; 
• co-operating with the countries of Central and Eastern Europe "and the 
New Independent States to help them to improve the safety of transport in 
those countries; 
• improving the public's knowledge, understanding and perception in this 
field. 
The appropriation proposed for the various categories of nuclear action as 
described above for the period in question is outlined in the Financial 
Statement in Annex VII. 
-20-
1.4 Co-ordination with energy components of other Community 
programmes and policies 
1.4.1 Support for research and technological development 
Research and technological development, including demonstration, play an 
essential role in the elaboration of methods which offer high energy efficiency 
and new techniques for the exploitation of fossil, nuclear or renewable 
sources. In this connection, the Fourth Framework Programme for research 
and technological development, established by Articles 13 Of to 13 Op of the 
Treaty, includes for non-nuclear energies a research and energy development 
section (JOULE) and a "demonstration" section (THERMIE). These enable 
major projects in the field of new energy technologies to be carried out in 
conjunction with industry, research centres and universities in the 
Member States. An RTD programme in the field of nuclear safety and 
controlled thermonuclear fusion based on the Euratom Treaty has also been 
implemented with the participation of the Joint Research Centre. Given the 
context and specific structures in which these actions take place, their 
operating methods, bodies and implementing instruments will remain 
unchanged. It is however clear that there is a close link between energy RTD 
activities and the more market-oriented actions carried out under this 
framework programme. A special effort will therefore have to be made to 
improve co-ordination at the appropriate level between the Commission's 
departments and between the other parties involved. More specifically, a 
more formalised approach will be followed for increased co-operation and 
co-ordination between the Single Energy Committee and the equivalent 
structure which will be set up in the context of the Fifth RTD Framework 
Programme. 
1.4.2 Trans-European energy networks 
The trans-European networks are vital arteries for economic development, 
the working of the internal market and greater Community cohesion. Under 
the Treaty (Article 129b, c, d), the European Community has given itself 
powers relating to networks and, in the energy field, it has pursued a policy 
of developing these infrastructures in the electricity and natural gas sectors, 
on account also of the positive effects on security of Community energy 
supply and international co-operation. As regards Community cohesion in 
particular, the Commission is devoting a great deal of its attention to the 
energy problems arising from the special situation of the islands, archipelagos 
and extremely remote areas of the Community.17 
Given the context and specific structures in which this action is being carried 
out, its methods of operation, bodies and implementing instruments will 
remain unchanged, as with research. A special effort is underway to further 
17 Cf. for example the Report presented by the Commission on the progress achieved in implementing 
POSEIMA. COM(94)476 final of 09.12.1994. 
21 
improve co-ordination at the appropriate level between the Commission's 
departments and between the other parties involved. 
7.4.3 Other policies or programmes 
Some other policies, such as external relations (for instance in the context of 
the PHARE, TACIS or MEDA programmes), structural funds or investment 
support include in their area of activity important energy components. 
Special attention will then also be paid to improving co-operation and co­
ordination between the Commission's departments in charge. 
1.5 General financial elements 
In absolute terms, the budget for energy policy as such is not large, not only 
in comparison with other chapters under heading 3 but also in relation to the 
sums set aside for energy measures undertaken under certain Community 
policies. 
The main purpose of developing an integrated approach to energy policy is 
the rationalisation and improved co-ordination of actions. The establishment 
of the multiannual framework programme focusing on the three major 
priority objectives will facilitate the management and more transparent and 
rigorous use of resources thus resulting in more effective actions on the 
existing financial bases. 
It is however essential that the Union should provide itself with sufficient 
resources to implement its policy priorities in the energy sector and that 
provision should therefore be made for certain increases in anticipation of the 
forthcoming financial perspective. This is moreover in line with the financial 
framework set out by the Commission in its memorandum on 
Agenda 2000,18 which in Part 3 makes express provision for the 
development of a number of internal policies intended to serve priority 
objectives shared by all the Member States and where there is an obvious 
added value and refers in this connection to certain priority programmes, 
particularly ones linked with enlargement, innovation and the introduction of 
environment-friendly technologies whose allocations may be increased faster 
than GNP growth. 
Given their potential not only in terms of environmental protection, of 
course, but also job creation, it is proposed to place particular emphasis on 
actions to promote renewable energies (ALTENER) and encourage energy 
efficiency (SAVE). 
The table below gives an indicative breakdown in million ECU, without 
prejudice to any priorities which may be adopted, between the various actions 
and programmes. The estimated budgets, are outlined in detail in the 
Financial Statements in the Annex; 
18 Agenda 2000, Vol. I, "The new financial framework". 
-22-
Energy markets 
analyses and 
monitoring 
International co­
operation in the 
energy sector 
Renewable energy 
sources 
Energy efficiency 
Solid fuels sector 
Nuclear security 
Total 
Nuclear security 
B7-535 1998 
1.50 
7.00 
14.4 
12.5 
0.80 
0.5 
36.7 
2.5 1999 
1.53 
7.14 
15.6 
12.8 
0.81 
0.51 
38.39 
2.5 2000 
1.56 
7.28 
17 
13.9 
0.82 
0.5? 
41.08 
2.5 2001 
1.59 
7.42 
17 
14.6 
0.83 
0.53 
41.97 
2.5 2002 
1.62 
7.57 
17.1 
14.6 
0.84 
0.54 
42.47 
2.5 Total 
7.8 
36.4 
81.1 
68.4 
4.1 
2.6 
200.4 
12.5 
2. IMPROVING THE CO-ORDINATION OF THE ENERGY COMPONENTS OF THE VARIOUS 
COMMUNITY POLICIES 
As stated in the introduction, the April 1997 communication on an overall view of 
energy policy and actions underlined the importance, including in terms of funding, 
of the energy component in a number of major Community policies. Co-ordination 
mechanisms already operate for example in relation to structural policies. Effective 
integration is not however possible without special attention being paid, to improving 
co-ordination between all the parties involved and the coherence of all actions, 
particularly within the Commission and its departments. 
1) In accordance with its internal procedures, the Commission has formally decided 
to set up a network of the Directors-General concerned which will have the 
task of ensuring that: 
• the policy or operational guidelines involving an energy dimension will be drawn 
up in accordance with the principles of consultation and transparency; -
• the actions implementing these guidelines and the allocation of resources relating 
thereto will be co-ordinated on a constant basis and assessed in the light of their 
contribution to the priority objectives of energy policy. 
2) Each year, the network of Directors-General will draw up a summary of all the 
energy actions undertaken under the various Community policies. This report 
will be transmitted to the committee established under the Energy framework 
programme for its consideration, as well as to other interested committees, and 
23 
will be made public thereafter. This will also ensure that the other European 
Institutions are kept informed. 
A more formalised approach will be followed for increased co-operation and co­
ordination between all committees which deal with programmes and policies which 
have an energy component. Automatic information exchange mechanisms will also be 
introduced. 
It is expected that the establishment of a single committee for energy actions and 
programmes falling within the scope of this framework programme, will facilitate the 
co-ordination and coherence of actions undertaken at Community level. It would be 
important for Member States to undertake their own internal reviews of their system, 
in order to improve the links between national and Community bodies. 
CONCLUSIONS 
The Commission communication on an overall view of energy policy and actions 
represented a first step in response to the requests expressly made by the Council and 
the Member States for an integrated approach to Community energy policy. 
Given the vital importance of the sector for the economic and social development of 
the Union and the high priority that should be attached to defining a coherent, 
transparent and effective European energy policy, the Commission considers that the 
introduction of the multiannual Energy framework programme along the lines 
proposed will give practical effect to this approach and provide an appropriate 
response at operational level to the requirements ascertained by the institutions and 
the Member States. 
*)|c)|c)|<)|(*:|c:fc*>|t:|c)|c)|c:|c)ic>|e)|c)|(>|c>|c)|c:|c 
24 
EUROPEAN COMMISSION 
PROPOSAL FOR A COUNCIL DECISION 
adopting a 
MULTIANNUAL FRAMEWORK PROGRAMME FOR 
ACTIONS IN THE ENERGY SECTOR 
(1998-2002) 
PROPOSAL FOR A COUNCIL DECISION ADOPTING A MULTIANNUAL 
FRAMEWORK PROGRAMME FOR ACTIONS IN THE ENERGY SECTOR 
(1998-2002) 
97/0302 (CNS) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission,1 
Having regard to the opinion of the European Parliament,2 
Having regard to the opinion of the Economic and Social Committee,3 
Having regard to the opinion of the Committee of the Regions,4 
Whereas the Commission communicated its views on the future of Community energy 
policy to the Council in its White Paper "An energy policy for the European Union" of 
13 December 1995;5 
Whereas the Commission communicated to the Council in its White Paper of.... 1997 its 
views on the implementation and monitoring of a Community strategy and action plan for 
renewable energy sources to the year 2010 with the aid of new technologies;6 
Whereas the Council adopted the SAVE II programme on 16 December 19967 to boost 
energy efficiency initiatives in the Community with a view to reducing CO2 emissions; 
Whereas the Council and the European Parliament adopted a decision on 26 April 1994 
concerning the fourth framework programme of European Community activities in the 
field of research, technological development and demonstration (1994-1998)8 and a 
4 
5 COM(95) 682, 13.12.1995. 
6 COM(97) 
7 Decision 737/96/EC, OJ No L 335, 24.12.1996. 
8 Council and Parliament Decision 1110/94/EC, OJNoL 115, 6.5.1994, page 31. 
26 
decision of the same date concerning a framework programme of Community activities in 
the field of research and training for the European Atomic Energy Community;9 whereas 
the Commission adopted a proposal on the 5th framework programme of research and 
technological development on 30 April 1997;10 
Whereas the Commission adopted and transmitted to the Council a communication on the 
energy dimension of climate change on 14 May 1997;11 
Whereas the use of cleaner technologies contributes to the objectives of the Community 
strategy to combat acidification;12 
Whereas energy is a vital factor in the economic and social development of the 
Community; 
Whereas the Community's dependence on external energy supplies is set to increase 
significantly in the years to come; 
Whereas the competitiveness of European business is heavily influenced by the level of 
energy costs; 
Whereas it is necessary to the quality of life of citizens to ensure that the development of 
energy production and consumption is compatible with environmental protection 
objectives; 
Whereas CO2 emissions must be reduced; 
Whereas, particularly in view of the political uncertainties involved in the external supply 
markets, the Community must implement a coherent, effective energy policy geared to the 
medium and long-term prospects for economic development; 
Whereas the actions taken under the energy policy should therefore be focused on specific 
priority objectives; 
Whereas, in view of the strategic challenges facing the Community, these objectives 
should focus in particular on ensuring the security of supplies, completing the integration 
of the energy markets, enhancing the competitiveness of European business and the quest 
for environmentally sustainable economic development; 
Whereas the balanced achievement of these objectives requires particular attention to be 
devoted to the transparency, coherence and coordination of all of the energy actions taken 
at Community level; 
9 Council Decision 268/94(Euratom), OJ No L 115, 6.5.1994, page 31. 
10 COM(97)142 final. 
11 COM(97)196 final. 
12 COM(97)88 final of 12.3.1997. 
on 
- 3 - <v <f 
Whereas the Council stressed this need in its Resolution of 8 July 199613 on the White 
Paper "An energy policy for the European Union"; 
Whereas the Council, when it adopted the Regulation adopting a programme to promote 
international cooperation in the energy sector,14 considered that it would be opportune for 
the Commission to present a communication on all the Community programmes with an 
energy component, which could be followed by a proposal on the establishment of a 
framework programme for energy; 
Whereas the Commission presented a communication: "An overall view of energy policy 
and actions",15 from which it emerges that the Community is pursuing a great many 
actions, but that these are scattered either between different energy policy programmes or 
various Community policies; 
Whereas it is necessary to ensure the management, complementarity and optimum use of 
budget resources; 
Whereas only a truly integrated approach will enable proper account to be taken of all the 
aspects of the problems to be resolved; 
Whereas this coherent, coordinated approach must apply both to energy policy as such 
and to the energy components of other Community policies; 
Whereas it is therefore necessary to define and establish a multiannual framework 
programme for the actions taken under the Community's energy policy; 
Whereas this framework programme should be implemented in the form of horizontal 
actions and thematic programmes; 
Whereas the horizontal actions cover forward analyses, market monitoring and 
international energy cooperation; 
Whereas the thematic programmes concern the promotion of renewable energy sources 
and the implementation of a Community strategy in this area, the promotion of energy 
efficiency, promotion of solid fuels and the safe use of nuclear energy; 
Whereas, in view of the context and the specific structures within which energy actions 
relating to trans-European networks are conducted, the structures and the manner in 
which such actions are implemented must be maintained in the appropriate framework; 
Whereas in view of the context and the specific structures within which energy actions 
relating to RTD are conducted, the structures and the manner in which such actions are 
implemented will continue to conform with the arrangements and procedures of the RTD 
13 OJNoC 224, 1.8.1996. 
14 Council Regulation (EC) No 701/97, OJ No L 104, 22.4.1997. 
15 COM(97)167 final, 23.4.1997. 
2 H 
framework programme; whereas, however, cooperation and coordination with the other 
structures must be enhanced; 
Whereas the actions or programmes referred to above should be implemented where 
necessary by means of specific measures which, where appropriate, would replace the 
corresponding instruments currently in force; 
Whereas the principle of seeking the greatest possible coherence calls for the setting up of 
a single committee of an advisory nature for the whole of the framework programme and 
its constituent actions; 
Whereas, in view of the variety and technical complexity of the questions to be addressed, 
the single committee and the Commission should seek the assistance of appropriate 
experts where necessary; 
Whereas the single committee will assist the Commission in ensuring the greatest possible 
transparency and the dissemination of information between all the parties concerned and 
ensure greater consistency of the energy actions taken under the various Community 
policies; 
Whereas, notwithstanding a systematic, regular evaluation of the actions, the "energy" 
framework programme and its specific programmes should be the subject of a mid-term 
review by independent experts; 
Whereas focusing the actions on the three major priority objectives of security of supply, 
competitiveness and protection of the environment will facilitate a more transparent and 
more efficient use of resources; 
Whereas some additional funding could be decided in the light of the political choices and 
priorities adopted; 
Whereas the funding of actions carried out in the priority areas of promotion of 
renewables (ALTENER programme) and energy efficiency (SAVE programme) in 
particular could be reviewed when the next financial perspective is drawn up; 
Whereas, in keeping with the subsidiarity principle and the principle of proportionality 
pursuant to Article 3b of the Treaty, the above priority objectives of energy policy and the 
boosting and coordination of energy actions carried out under the energy policy proper 
and in the framework of other Community policies should, by their nature, be 
implemented at Community level; whereas this Decision is confined to the minimum 
required to achieve these goals; 
Whereas the Treaty does not provide powers for the adoption of this Decision, the 
purpose of which is the coordination of all aspects of energy policy, other than those in 
Article 235; whereas the specific programmes which will implement this framework 
programme will each be adopted on the appropriate legal basis, in particular where their 
objective is the prudent and rational utilisation of natural resources referred to in Article 
130r of the Treaty, 
5-29 
HAS DECIDED AS FOLLOWS: 
Article 1 
(lj A multiannual framework programme for Community actions in the field of 
energy, hereinafter referred to as the "framework programme", is hereby adopted 
for the period 1998-2002. 
(2) The framework programme shall primarily contribute to the pursuit of the 
following priority objectives: 
to guarantee the security of energy supplies; 
. to ensure competitiveness; 
to promote the compatibility of the development of the energy market with 
environmental protection objectives. 
(3) The framework programme shall also contribute to greater transparency, 
coherence and coordination of all the Community's energy actions in the field of 
energy policy and ensure that they mesh effectively with the actions taken in the 
framework of other Community policies. 
Article 2 
(1) Notwithstanding the actions relating to energy conducted in the framework of 
research policy or trans-European networks respectively, the framework 
programme shall be implemented through six specific programmes of a horizontal 
or thematic nature corresponding to the following actions: 
(a) development, in cooperation with the Member States, of a programme for 
regular monitoring of the evolution of the energy markets and trends, so 
that political decisions relating to energy can be taken on the basis of a 
joint analysis; 
(b) reinforcement, within the area of competence of the framework 
programme, of international cooperation in the energy field in order to 
encourage, firstly, greater diversification of energy sources and, secondly, 
greater transparency and stability of the international gas and oil markets in 
particular; 
(c) promotion of new and renewable energy sources and implementation of a 
Community strategy and action plan for renewable energy sources to the 
year 2010; 
(d) encouragement of rational and efficient use of energy resources; 
(e) regeneration of the coal sector, notably through the use of environmentally 
compatible technologies; 
Q 0 
(f) safer use of nuclear energy. 
(2) Each specific programme, the duration of which will coincide with the period of 
application of this framework programme, shall set out the arrangements for its 
implementation. 
(3) Implementation of the framework programme may give rise, within its area of 
competence, to additional programmes and Community participation in 
programmes undertaken by several Member States. It may also lead to 
cooperation with third countries or international organizations. 
Article 3 
(1) The annual appropriations shall be authorized by the budgetary authority within 
the constraints of the financial perspective. 
(2) The detailed rules for financial participation by the Community in actions taken 
under the framework programme shall be laid down in accordance with the 
provisions of the Financial Regulation applicable to the general budget of the 
European Communities. 
Article 4 
(1) The Commission shall be responsible for the implementation of the framework 
programme and for drafting guidelines applicable to the actions and measures to be 
taken under each of the specific programmes. 
(2) The Commission shall be assisted in the management of the framework programme 
by a committee of an advisory nature composed of representatives of the Member 
States and chaired by the representative of the Commission. 
The representative of the Commission shall submit to the committee a draft of the 
measures to be taken. The committee shall deliver its opinion within a time limit 
which the chairman may lay down according to the urgency of the matter, if 
necessary by taking a vote. 
The opinion shall be recorded in the minutes; in addition, each Member State shall 
have the right to ask to have its position recorded in the minutes. 
The Commission shall take the utmost account of the opinion delivered by the 
committee. It shall inform the committee of the manner in which its opinion has 
been taken into account. 
Article 5 
(1) The Commission shall examine each year the state of implementation of the 
framework programme and its specific programmes. It shall assess the overall 
effectiveness of the framework programme and its contribution to the objectives of 
Community policy. It shall also assess whether the objectives, priorities and 
financial resources are still appropriate to the changing situation. If necessary, it 
31 
shall submit proposals to adapt or supplement the framework programme and/or 
the specific programmes. 
(2) In the third year of the period of application of this framework programme and at 
all events before submitting its proposals for the establishment of a subsequent 
framework programme, the Commission shall have an external assessment 
conducted by independent experts of the overall implementation of the Community 
actions carried out under the framework programme. The Commission shall 
communicate the conclusions thereof, together with its comments, to the 
European Parliament, the Council, the Economic and Social Committee and the 
Committee of the Regions. 
(3) The independent experts referred to in the preceding paragraph shall be chosen by 
the Commission in a balanced fashion. 
Article 6 
This Decision is addressed to the Member States. 
Done at Brussels, For the Council 
The President 
Ox* 
FINANCIAL STATEMENT 
,1. TITLE OF OPERATION 
Proposal for a Decision defining and establishing a multiannual framework 
programme for actions in the energy sector (1998-2002). 
2. BUDGET HEADING INVOLVED 
B4-1 andB7-535inpart. 
3. LEGAL BASIS 
Article 130s or 235 of the EC Treaty (see individual decisions). 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
Energy is a decisive factor in economic and social development. At present, 
the Community's energy actions are scattered between different programmes 
established at different times and in different contexts and between different 
Community policies, such as external relations, structural policies or research. 
This results in a lack of transparency and the risk of duplication or 
inconsistency of the actions. 
The development of an integrated approach, and in particular the 
establishment of a multiannual framework programme for actions by the 
Community in the energy sector, is designed to meet the need identified by 
Member States and within the Commission to improve the transparency, 
coordination and effectiveness of these actions. It will also be easier to 
identify the additional measures needed with regard to the priority 
objectives of security of supply, competitiveness and environmental 
protection. 
The framework programme will be the umbrella for the programmes and 
actions for which the Directorate-General for Energy is currently responsible. 
In legislative terms, it will take the form of a basic instrument setting out the 
general framework and specific instruments defining the content of and 
implementing the specific actions (see Annexes II to VII to this proposal and 
the corresponding financial statements). Furthermore, in order to ensure the 
necessary coherence between the energy components of the various 
Community policies, the Commission will set up a network of the 
Directorates-General concerned. 
-9-33 
4.2 Period covered 
1998-2002. 
The arrangements for renewal of the action are indicated in Article 5 of the 
proposal for a decision. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
5.1 Non-compulsory expenditure 
5.2 Differentiated appropriations 
5.3 Type of revenue involved 
Some associated countries will be able to contribute to the funding of the 
thematic programmes under the arrangements provided for in these 
programmes (see individual financial statements). 
6. TYPE OF EXPENDITURE 
Apart from its participation in the energy-related activities carried out in the context 
of Community policies in the field of RTD, trans-European networks, etc., the 
European Community participates in the funding of activities concerning: 
- forward studies and monitoring of the energy markets; 
- international energy cooperation; 
- promotion of renewable energy sources and implementation of a Community 
strategy and action plan in this area; 
- promotion of energy efficiency; 
- promotion of the clean and efficient use of solid fuels; 
- nuclear sector (cooperation on safety, industrial cooperation with the NIS, 
transport of radioactive materials, including action to combat illegal trafficking). 
The arrangements for and rates of Community financial participation are described in 
detail in the financial statements for the individual actions. 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation 
The "energy" framework programme sets the maximum overall amount and 
its distribution between the various horizontal actions and thematic 
programmes. These amounts cover the funding of the actions as such and 
personnel and administrative expenses. 
-10-34 
7.2 Itemised breakdown in heading 3 (in million ECU) 
Analyses and monitoring of the energy 7.8 
markets 
International energy cooperation 36.4 
Promotion of renewables 81.1 
Encouragement of energy efficiency 68.4 
Penetration of clean technologies for 4.1 
solid fuels 
Nuclear safety 2.6 
TOTAL 200.4 
7.3 Indicative schedule of appropriations 
The effective implementation of the framework programme requires 
resources to be planned for the whole of the period covered. 
The development of an integrated approach to energy policy is primarily 
intended to streamline and improve the coordination of the measures. The 
establishment of the multiannual framework programme and its focus on 
three major priority objectives will facilitate the management and the more 
transparent, more rigorous use of resources, which in turn will contribute to 
greater efficiency of the actions on the basis of the available budget. 
However, the Union must procure the resources necessary to implement its 
political priorities in the energy sector and already make provision for 
certain increases when the next financial perspective is drawn up. This would 
be in line with the financial framework defined by the Commission in its 
communication Agenda 2000,16 which explicitly provides in heading 3 for 
the development of a number of internal policies intended to serve objectives 
shared by all the Member States and where there is an obvious added.value, 
and cites in this connection certain priority programmes related in particular 
to enlargement, innovation and the application of environment-friendly 
technologies which should see their allocation rise more rapidly than GNP. 
In view of their potential in partiuclar as regards environmental protection 
and job creation, it is proposed to place particular emphasis on actions to 
16 Agenda 2000, Volume I, "The new financial framework'' 
11 -35 
promote renewable energy sources (ALTENER programme) and encourage 
energy efficiency (SAVE programme). 
Analyses and 
monitoring of the 
energy markets 
International 
energy 
cooperation 
Renewable 
energy sources 
Energy efficiency 
Solid fuels sector 
Nuclear safety 
Total 1998 
1.50 
7.00 
14.4 
12.5 
0.80 
0.5 
36.7 1999 
1.53 
7.14 
15.6 
12.8 
0.81 
0.51 
38.9 2000 
1.56 
7.28 
17 
13.9 
0.82 
0.52 
41.08 2001 
1.59 
7.42 
17 
14.6 
0.83 
0.53 
41.97 2002 
1.62 
7.57 
17.1 
14.6 
0.84 
0.54 
42.27 Total 
7.8 
36.4 
81.1 
68.4 
4.1 
7.6 
200.4 
Nuclear safety 
B7-535 2.5 2.5 2.5 2.5 2.5 12.5 
8. FRAUD PREVENTION MEASURES 
Several financial and administrative fraud prevention measures are planned which are 
adapted to the specific nature of the individual actions. They operate throughout the 
process and include: 
Before contract signature: 
- qualitative and financial analysis of the bids, proposals or grant applications;. 
- involvement of the other Commission services concerned with a view to avoiding 
any duplication of effort. 
After contract signature: 
- examination of the schedules of expenditure before payment, on several levels 
(financial management, officials technically responsible) and consultation of the 
Commission departments concerned on the results; 
12-36 
- payment of the work after acceptance on the basis of a percentage estimated 
before contract award, and in the light of a final financial report on the action. 
Supporting documentation may be required for travel and subsistence expenses; 
- internal audit by the financial controller; 
- local inspection to detect errors or other irregularities by examination of the 
supporting documentation. 
The single committee for the "energy" framework programme and the other bodies 
concerned will be fully informed of the results of the work. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Objectives and target population 
The Union is increasingly facing major challenges in terms of energy strategy: 
• increasing dependence on external supplies, in a geopolitical context 
whose development is unpredictable; 
• need to support the competitiveness of European industries; 
• need to ensure that the development of the energy market is 
compatible with the environmental protection objectives. 
At present, the Community's energy actions are scattered: 
• between different Community policies; 
• or, in the case of the energy policy itself, between different 
programmes established at different times and in different contexts. 
This dispersal of effort results in a lack of transparency, the risk of 
duplication and/or inconsistency of the various actions, management 
difficulties and a risk of non-optimum use of resources. 
The establishment of a multiannual framework programme in the energy 
sector is designed to: 
• improve the situation in order to provide a sound basis for responding to 
the problems and challenges facing Community energy policy; 
• reinforce and consolidate the action needed to implement a successful 
energy policy in the Union. 
These actions will be implemented in accordance with the following 
guidelines: 
-13 37 
• each Community action should contribute to the achievement of the 
priority objectives of security of supply, competitiveness and 
environmental protection; 
significant improvement in the coordination of all the actions with an 
energy component; 
• promotion of cooperation between the various actors in the Community 
institutions and the Member States; 
• clarification and simplification of procedures. 
This general improvement will benefit all the actors, from institutions and 
national and local administrations to businesses in the sector, many of whom 
are SMEs. 
9.2 Grounds for the operation 
The assessments carried out in 1997 of all the energy programmes found that 
they had largely met their objectives. The aim of establishing the multiannual 
"energy" framework programme is to improve the coherence and 
effectiveness of the actions in view of the strategic importance of the 
challenges facing the Union in the energy sector, more particularly as regards 
environmental concerns. The follow-up to the Kyoto Conference on climate 
change and the implementation of the Community strategy and action plan for 
renewable energy sources to the year 2010 will be decisive in this respect. 
9.3 Monitoring and evaluation of the operation 
The actions will be systematically reviewed. Each year the Commission will 
examine progress in implementing the framework programme and its specific 
programmes. Depending on the evolution of priorities, proposals may be 
presented to adjust or supplement the framework programme and/or the 
specific programmes. During the third year of application of the framework 
programme and, at all events, before presenting proposals on the 
establishment of a subsequent framework programme, the Commission will 
have independent experts carry out an overall external evaluation of progress 
in implementing the Community actions carried out under the framework 
programme. 
-14-38 
10. ADMINISTRATIVE EXPENDITURE 
(for details, please refer to the financial statements for each part of the programme) 
10.1 Impact on the number of staff 
Type of post 
Officials or 
temporary 
agents A 
B 
C 
Other resources 
Total Staff to be assigned to 
management of the action 
permanent 
staff 
30.5 
10 
15 
:j||||||||||l||; 
55.5 temporary 
staff 
Seconded 
national 
exp: 7 
Exp: 6 
Temp: 3 
16 of whom 
existing resources 
within the DG or 
service concerned 
22 
7.5 
10 
5 
2 
2 
48.5 additional 
resources 
8.54 
2.5 
5 
2 
4 
1.5 
16 duration 
5 years 
Indicate when the additional resources will be required. 
• The necessary human and administrative resources will be mobilised on the basis of the 
annual Commission decision on the allocation of resources, in particular in the light of 
the staff and additional amounts to be granted by the budgetary authority. 
• One category A post has been entered in the preliminary draft budget for 1998. 
10.2 Overall financial impact of the additional human resources 
(ecus) 
Amounts Calculation method 
Officials 1 648 000 103 000 ecus x 16 
Temporary agents Sec. nat. exp.= 40 000 x 2 
Other resources (state Service providers = 120 000 x 4 
budget heading) Temporary = 80 000 x 3 
OA 1520 sec. nat. exp. 80 000 
OA 1178 service providers 480 000 
OA 1175 temporary 240 000 
Total 1 2 448 000 | • 
The amounts show the total cost of additional posts for the entire duration of the action where it is 
specified and for 12 months where it is indeterminate. 
-15- 39 
10.3 Increase in other operating expenditure resulting from the operation 
(ecus) 
Budget heading Amounts Calculation method 
(No and title) ; 
OA 1300 Missions 420 000 based on available statistics in 1996 
OA 25 committees, groups, 366 200 and 1997 
invitation of experts 
'• Total 1 786 200 | 
The amounts correspond to the total expenditure for the operation if its duration is fixed or to the 
expenditure for 12 months if its duration is indeterminate. 
Observatory 
Synergy 
Altener 
Save 
Solid fuels 
Nuclear 
Total Post 
A 
2 
6 
11 
10 
1 
0.5 
30.5 B 
1 
1 
3 
3 
0.5 
1.5 
10 C 
1 
4 
5 
5 
0 
0 
15 Existing 
A 
2 
6 
6 
6.5 
1 
0.5 
22 B 
1 
1 
1.5 
2 
0.5 
1.5 
7.5 C 
1 
4 
2 
3 
0 
0 
10 New 
A 
0 
0 
2.5 
1.5 
0 
0 
4 B 
0 
0 
1 
1 
0 
0 
2 c 
0 
0 
1.5 
1 
0 
0 
2.5 1 sec nat exp 
1 sec nat exp 
2 sec nat exp 
3 sec nat exp 
external 
1178 2 experts (Alt) 
1175 1 temporary (Alt) 2 experts (SAVE) 
1.5 temporary (SAVE) +1.5 seconded nat. experts 
Missions 0A 1B00 Committees 
Observatory 50 000 20 000 
Synergy 120 000 46 200 
Altener 130 000 108 000 
Save 100 000 . 216 000 
Solid fuels 10 000 0 
Nuclear 10 000 0^ 
1 420 000 1 390 200 
-16 0 
EUROPEAN COMMISSION 
ANNEX II 
Establishment of a 
MULTIANNUAL PROGRAMME OF STUDIES, 
ANALYSES, FORECASTS AND OTHER 
RELATED WORK IN THE ENERGY SECTOR 
(1998-2002) 
41 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
"European Energy Observatory" - Forward analysis, forecasting and observation 
of markets 
2. BUDGET HEADING INVOLVED 
Item B4-1040 
3. LEGAL BASIS 
Operation for which the amount is not significant. 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
To develop, in cooperation with the Member States, a programme of regular 
monitoring of market developments and energy trends in order that energy 
policy decisions can be taken on the basis of a shared analysis. 
As an indication, the following are among the main areas covered: 
1. identification and analysis of the main European problems as regards 
future energy demand and production and energy policy, focusing on: 
(a) strategies for meeting the energy challenge posed by climate 
change and respect for the environment; 
(b) the dynamics of the opening-up of the energy markets and 
the corresponding structures, particularly in terms of its 
consequences for the future and the behaviour of firms in the 
context of completion of the internal energy market, which 
requires an effective mechanism for observing and monitoring the 
markets; 
(c) world energy market trends influencing external dependence 
(particularly the considerable growth of energy demand expected 
in Asia and South America); 
2. improvement of the analysis capability in order to be able to make 
comparative forecasts of energy trends and scenarios in all the Member 
States in the light of changes in market structures and of the challenge 
posed by climate change and the environmental imperatives. 
40 
The action is intended to promote the formulation of new energy choices 
on the basis of medium and long-term forecasting analysis models with 
the aim of developing a Community Analysis Method which would better 
serve the European Union's information exchanges and analytical needs. 
The emphasis will be on: 
- cooperation between the Commission and the Member States and on the 
involvement of the circles concerned, enterprises, academic circles and 
other sources of knowledge and experience; 
- complementarity of the work with similar work carried out by the Member 
States or international organisations such as the International Energy 
Agency. 
Particular attention will be given to consolidation of the internal energy 
market, security of supply, protection of the environment and the 
economic development of the energy industry. 
The analyses and forecasts concerning the Member States in the field of 
energy also cover the Central and Eastern European Countries that are in 
the process of joining. 
4.2 Period covered and arrangements for renewal or extension 
Selective programme of study and related work with the aim of developing a 
Community-level capability for analysis and forecasting of activities and 
problems in the field of energy, incorporated in the energy framework 
programme (1998-2002). 
5. CLASSIFICATION OF EXPENDITURE 
NCE/DA 
6. TYPE OF EXPENDITURE 
- Financing, part financing or subsidy of studies concerning the analysis of markets 
and their development, evaluation of the operation and new guidelines (the 
subsidised bodies may also purchase results of studies, surveys and analyses as 
well as software, including its development costs, etc.). 
- Financing, part financing or subsidy of expenditure on information and 
dissemination (conferences, seminars, publications including printing and 
translation costs, etc.). 
- Financing, part financing or subsidy of expenditure on informatics connected with 
the data necessary for carrying out additional energy analyses (in particular 
collection, database storage, statistical processing and presentation). 
43 
7. FINANCIAL IMPACT 
7.1 Method of calculating the total cost of the operation (link between the costs of its 
individual components and the total cost). The nature of the work does not change 
from one year to the next. The studies are specified in accordance with the 
Commission's objectives in order to answer the policy questions put by the Member 
States, the Council and Parliament. 
• Analyses of European energy markets 
studies costing an average of ECU 50 000 x 11 x 5 years, 
including: 
studies and multi-client forecasts costing ECU 10 000-20 000, 
sectoral subject-related and/or fuel-related studies, ECU 40 000-300 000, 
e.g. liberalisation of gas and/or electricity, refining, prices and taxation; 
• World market analyses 
studies costing an average of ECU 50 000 x 10 x 5 years, 
including: 
studies and multi-client forecasts by region costing ECU 10 000-20 000, 
sectoral subject-related and fuel-related studies by region, ECU 40 000-300 000, 
e.g. security of supply, geopolitical strategy, consumer-producer dialogue; 
4 ' 
• Financial support for economic analysis networks 
participation expenses averaging ECU 66 000 x 3 x 5 years, 
including: 
energy policy research centres, 
collaboration with industry at the European level (Eurogas, Eurelectric, Europia); 
• Other operational expenditure 
seminars or workshops costing ECU 80 000 x 1 x 5 years, 
conferences costing ECU 120 000 x 1 x 5 years, 
information and publications costing an average of ECU 50 000 x 2 x 5 years, 
including publication of the "Annual Energy Review". 
44 
7.2 Breakdown of the operation by individual components (in million ECU) 
Breakdown 
Analyses of European energy 
markets 
World market analyses 
Financial support for economic 
analysis networks 
Other operational expenditure 
including overall evaluation of the 
framework programme 
TOTAL 1998 
0.5 
0.5 
0.2 
0.3 
1.5 1999 
0.53 
0.5 
0.2 
0.3 
1.53 2000 
0.56 
0.5 
0.2 
0.3 
1.56 2001 
0.59 
0.5 
0.2 
0.3 
1.59 2002 
0.62 
0.5 
0.2 
0.3 
1.62 Total 
2.8 
2.5 
1.0 
1.5 
7.8 
Comments: 
The nature of the work does not change so the budget resources are stable between 1999 
and 2002. 
7.3 Operational expenditure on studies, experts, etc., entered in part B of the budget 
EC in million ECU (current prices) 
Conferences, 
workshops, 
information and 
publications 1998 
0.3 1999 
0.3 2000 
0.3 2001 
0.3 2002 
0.3 Total 
1.5 
7.4 Schedule of commitment appropriations 
Commitment 
appropriations 1998 
1.5 1999 
1.53 2000 
1.56 2001 
1.59 2002 
1.62 Total 
7.8 
45 
8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
Before signing of contracts: 
- qualitative and financial analysis of tenders, proposals or requests for subsidies; 
- involvement of other Commission departments concerned in order to avoid any 
duplication of effort. 
After signing of contracts: 
- examination of expenditure records before payment, at several levels (financial 
manager, technical managers), and consultation of Commission departments 
concerned on the results; 
- internal audit by the financial controller; 
- on-the-spot checks making it possible to find mistakes or irregularities by 
examining supporting documents; 
- notification of the committee referred to in Article 4 of the Decision adopting the 
multiannual framework programme on energy and of the Energy Consultative 
Committee set up by Commission Decision 96/642/EC of 8 November 1996. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1 Specific and quantified objectives; target population 
Links with general objective 
The operation is designed to improve the European Union's energy balance, 
first of all by analysing the energy situation and preparing energy policy 
guidelines, particularly those responding to the challenges of climatic change 
and respect for the environment. 
Secondly the operation aims to improve forecasting of how the European 
Union's energy economy is going to develop in its international context. It 
will thus help to consolidate the internal energy market, manage the 
relationship between energy and the environment and develop cooperation on 
energy matters with third countries. By aggregation of the results obtained, 
the operation will give added value to the complementary analysis work being 
done in the Member States. 
Target population 
For observation of the energy markets: decision-making bodies at the 
Commission and in the Member States. As regards the production, transport 
46 
and consumption of energy: the whole population of the Community, the 
OECD and the world in general. 
9.2 Grounds for the operation 
Section 86 of the Green Paper (COM(94) 659 final of 11 January 1995) says 
that convergence must start at the level of economic analysis. The sine qua 
non of an energy policy is the ability to accommodate market trends and to 
adapt immediately to any new developments. But these developments on the 
Community's internal market will be increasingly dependent on global trends 
in consumption, in production and in transport conditions. These analyses are 
made by companies and international organisations. Without duplicating this 
work and by using its results, it seems necessary to have at the Community 
level means of analysis which would enlighten the Community decision­
making process. It is obvious that the application of the rules of operation of 
the internal market and the adjustment of priorities as regards research, 
environment, international cooperation, networks and economic and social 
cohesion have to rest on a consensual analysis of the problems and market 
trends. Involvement of academic circles, industries, consumers and the 
administrations in an open and transparent way would guarantee a coherent 
analysis on which to base the development of an energy policy. 
Point 6 of the Council Resolution (No 7802/95) on the Green Paper, of 
1 June 1995: 
"Considers that the operation of the internal market requires the 
strengthening of consultation and cooperation between the Member States 
within the Community and the development of Community methods of 
analysis, in particular with respect to the functioning of the market 
mechanisms, which could enlighten the Community decision-making 
process". 
The White Paper (COM(95) 682 final of 20 December 1995) recommends, in 
section 134: 
"In terms of immediate action the Commission intends to take the following 
initiatives in 1996 without prejudging the results of the forthcoming Inter-
Governmental Conference: the establishment of a programme to -monitor 
energy trends, in cooperation with Member States, industry and other bodies, 
in order that political decisions related to energy can be made on the basis of 
a shared analysis". 
This proposal, based on the existing treaties, is necessary to meet the need for 
a more cooperative and transparent policy-making procedure. 
The operation is also justified by the fact that the analysis methods contribute: 
47 
to managing Community policies in such a way as to help in achieving 
common goals, in particular completion of the internal energy market, 
improvement of the quality of the environment, and security of supply; 
to the convergence of European policy by a better knowledge of the long-
term development prospects of the world market; 
to securing added value for the studies and expert assessments carried out in 
the Member States by putting them into a common perspective. 
Carrying out studies and surveys of the energy market will make it possible to 
measure how far national policies and Community objectives coincide and to 
open up discussion of the long-term prospects. 
At the Community level the Commission will be undertaking additional 
analysis work to complement that being done in the Member States and 
aggregating the results obtained. 
Choice of instruments 
Depending on the nature of the activities planned or appearing to be in need 
of action, recourse will be had to calls for tender, calls for proposals or 
subsidies. Collaborative efforts will be strongly encouraged not only in order 
to take advantage of the complementarity, the multidisciplinary nature of 
expert studies and the resulting creativity, but also to foster a common 
approach and a common understanding. 
9.3 Monitoring and evaluation of the operation 
The committee of the energy framework programme and the Energy 
Consultative Committee set up by Council Decision No 96/642/EC of 
8 November 1996 will be kept regularly informed of the results of the work. 
The two main recommendations of the recent evaluation of heading B4-1040 
for the period 1993-1995 are as follows: 
More use should be made of frame-contracts for recurring tasks such as data 
modelling and conference organisation. 
The Member States' energy ministries are currently playing a relatively 
passive role in European analysis and forecasting. To make full use of the 
added value at Community level, Member States should be encouraged to 
work more closely together, perhaps in small groups, to take on common 
sectoral problems. There should be more pooling and sharing of modelling 
and analysis of competence. 
48 
10. COMPONENTS OF ADMINISTRATIVE EXPENDITURE 
Effective mobilisation of the necessary administrative resources will result from the 
Commission's annual decision on the allocation of resources, taking account in 
particular of the additional human and financial resources granted by the budgetary 
authority. 
10.1 Impact on the number of jobs 
Job type 
Officials A 
or temporary B 
staff C 
Other resources 
Total Staff needed for managing the 
operation 
permanent jobs 
2 
1 
1 
4 temporary jobs 
1 seconded 
national expert 
1 of whom 
by using existing 
resources in DG 
or department 
concerned 
2 
1 
1 
1 seconded 
national expert 
5 by using 
additional 
resources Duration 
5 years 
5 years 
10.2 Overall financial impact of additional human resources 
None. 
49 
10.3 Other annual operating expenditure arising out of the operation 
Budget heading Amounts Calculation method 
(number and title) 
« 
A-1300 Mission expenses, 50 000 Missions connected with financial 
travel expenses and incidental support, conferences and 
expenditure workshops on basis of financial 
year 1996 
A-2500 Expenses of experts One meeting of 15 experts from 
in the Framework Programme 20 00° the Member States + 5 from 
Committee outside 
Total 70 000 
The appropriations shown are financed from within the existing allocations of the departments 
managing the programme. 
50 
EUROPEAN COMMISSION 
ANNEX III 
PROPOSAL FOR A COUNCIL REGULATION 
adopting a 
MULTIANNUAL PROGRAMME TO PROMOTE 
INTERNATIONAL COOPERATION IN THE ENERGY SECTOR 
(1998-2002) 
51 
PROPOSAL FOR A COUNCIL REGULATION ADOPTING A MULTIANNUAL PROGRAMME 
TO PROMOTE INTERNATIONAL COOPERATION IN THE ENERGY SECTOR (SYNERGY 
PROGRAMME) (1998-2002) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission1, 
Having regard to the opinion of the European Parliament2, 
Whereas, for reasons of the competitiveness of the Community's industries, security of 
supply and protection of the environment, energy matters must be an important element in 
the Community's international activities; 
Whereas a multiannual framework programme for actions in the energy sector is being 
implemented; 
Whereas the Community's accession to the Energy Charter Treaty and the Convention on 
Climate Change commits it to continue with international cooperation in the energy field; 
Whereas the conclusions of the Council of Ministers for Development and Cooperation of 
18 November 1992 on the guidelines for cooperation with the developing countries for 
clean and efficient energy technology stressed that an essential objective of energy 
cooperation with all developing countries was the implementation of effective energy 
policies; 
Whereas, as stressed in the Council resolution of 8 July 1996 on the White Paper "An 
energy policy for the European Union", energy developments in the Community are 
increasingly influenced by external developments and efforts must therefore be made to 
ensure that the Community develops a coherent and consistent approach to energy 
matters with third countries; 
Whereas the Community is engaged in international energy activities under various 
programmes; whereas, to ensure that these activities are consistent, they should be 
coordinated more closely; 
Whereas coordination of the Community's other measures in the energy sector is 
necessary; whereas there must therefore be no duplication with other programmes of the 
Community, of the Member States or of third countries or international organisations in 
the field of energy policy; 
O A'., 
WThereas, by reason of their wide-ranging nature, the principal objectives of the 
programme, particularly the coordination of the various programmes of international 
measures, can be attained best at Community level; 
Whereas it is necessary to establish a specific legal instrument for the Community's 
international cooperation activities in the field of energy policy; 
Whereas according to the Council resolution on the White Paper "An energy policy for 
the European Union", political and trade relations are essential components of energy 
policy and, accordingly, the Community's international energy cooperation measures 
should be integrated more effectively in its external policy as a whole; 
Whereas the objectives of energy cooperation pursuant to the programme should be to 
improve the competitiveness of Community industries, to enhance security of supply, to 
promote sustainable development and to improve energy efficiency; whereas such 
cooperation may be put into effect by cooperating in and co-financing projects; 
Whereas such cooperation should be anchored in an indicative programme and may be the 
subject of agreements with the States concerned or with international networks of study 
and research centres; 
Whereas, since the cooperation in question is external cooperation, it is governed by the 
special provisions laid down in Title IX of the Financial Regulation of 21 December 1977 
applicable to the general budget of the European Communities, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Within the framework programme for actions in the energy sector, a specific programme 
of cooperation with third countries in fields of mutual benefit, hereinafter referred to as 
"SYNERGY", shall be implemented by the Community. 
This programme shall concern: 
• aid with the definition, formulation and implementation of energy policy for third 
countries; 
• promotion of industrial cooperation between the Community and third countries in the 
energy sector; 
• closer coordination of the Community's external activities in the energy field. 
Article 2 
SYNERGY shall be addressed to all States which are not members of the Community and 
first and foremost those countries and regions considered priorities in the Community's 
external relations in terms of its political and economic interests and security of energy 
supply. 
Article 3 
1. Implementation of the SYNERGY programme shall start on 1 January 1998 and 
end on 31 December 2002. 
53 
2. The annual appropriations shall be authorised by the budgetary authority within 
the limits of the financial perspectives. 
Article 4 
1. The programme shall help achieve the Community's main energy objectives as 
described in the White Paper "An energy policy for the European Union". To the 
same end, the Community may also maintain relations with international energy 
organisations. The measures to implement the programme shall be adopted in 
accordance with the rules set out in Article 4 of the Decision adopting the 
multiannual framework programme for actions in the energy sector. No funding 
may be granted to research, development and demonstration projects. 
2. In order to achieve these objectives, the Community shall contribute, in particular, 
to the financing of activities concerning: 
energy policy advice and training; 
energy analyses and forecasting; 
closer dialogue and exchanges of information on energy policy, notably by 
means of organisation of conferences and seminars; 
support to regional transboundary cooperation; 
improving the framework for industrial cooperation on energy; 
coordination of the Community instruments for international action in the 
energy sector and other similar international programmes. 
3. The cooperation shall also cover costs related to the preparation, implementation, 
monitoring and evaluation of performance of these operations, as well as costs 
concerning information. 
Article 5 
1. Community contributions may take the form of grants which shall be released in 
tranches as projects materialise. 
2. SYNERGY programme funding shall be granted only after verification that the 
activities cannot qualify for financing from other programmes. 
3. Financing decisions and any contracts resulting therefrom shall expressly provide, 
inter alia, for acceptance by the beneficiaries of supervision by the Commission 
and the Court of Auditors, which may be carried out on the spot if necessary. 
Article 6 
1. An indicative programme covering the period referred to in Article 3 is established 
in the Annex. This programme defines the principal objectives, guidelines and 
priorities of Community cooperation in the indicative areas referred to in Article 4. 
2. An action programme based on the indicative programme referred to in paragraph 
1 shall be adopted in accordance with the procedure provided for in Article 4 of 
the Council Decision adopting a framework programme for actions in the energy 
sector. This action programme shall include a list of the main projects to be 
3 
54 
financed within the indicative areas referred to in Article 4. The content of the 
programme shall be determined so as to provide Member States with the relevant 
information to enable the committee set up under the abovementioned procedure 
to give its opinion. 
Specific agreements may be concluded with third countries and international 
organisations, in the framework and for the duration of the indicative programme 
referred to in paragraph 1, in order to define the main lines of cooperation with the 
countries concerned and the consultation procedures regarding implementation of 
the programme. 
Contracts may also be concluded within the framework of the indicative 
programme referred to in paragraph 1 with international networks of study and 
research centres in order to define the contribution of these networks to 
achievement of the objectives described in the abovementioned indicative 
programme. 
Article 7 
1. The Commission shall implement operations in accordance with the action 
programme referred to in Article 6(2). 
2. Service contracts shall, as a general rule, be awarded by restricted invitations to 
tender in conformity with Article 118 of the Financial Regulation applicable to the 
general budget of the European Communities. 
Negotiated contracts may be awarded for operations involving an amount below 
ECU 50 000. 
Supply contracts, where needed to supplement service contracts and limited to the 
objectives of SYNERGY, shall be awarded by means of open invitations to tender, 
except in the cases provided for in Article 116 of the Financial Regulation. 
Participation in invitations to tender and contracts shall be open on equal terms to 
all natural and legal persons in the Member States and in the beneficiary States. 
Participation by natural and legal persons from other countries may be authorised 
by the Commission on a case-by-case basis if the programmes or projects 
concerned require specific forms of assistance specifically available in these 
countries. 
3. Taxes, duties and the purchase of immovable property shall not be funded by the 
Community. 
4. In the case of co-financing, the participation of enterprises from the third countries 
concerned in invitations to tender and contracts may be authorised by the 
Commission on a case-by-case basis. The Commission shall render account thereof 
in the report referred to in Article 9. 
55 
Article 8 
1. The Commission shall, together with the Member States, ensure effective 
coordination of the expert assistance provided in the beneficiary States by the 
Community and individual Member States on the basis of the information supplied 
by the Member States. 
2. Coordination and cooperation with the international financial institutions and other 
sources of funds shall be encouraged. 
3. The Commission shall examine ways of promoting co-financing by the SYNERGY 
programme, bilateral cooperation from the Member States, the programmes of 
other international organisations and other Community programmes. It shall, in 
particular, contribute to closer coordination and complementarity between the 
contributions made by SYNERGY and the other Community instruments for 
international energy cooperation in order to avoid duplication. It shall also ensure 
that duplication is avoided between the SYNERGY programme and any other 
programme or action of other international organisations in the field of energy. 
Article 9 
1. The Commission shall present a report by 31 December 2000 on the 
implementation of the specific programme in the two previous financial years, 
based on an external assessment by independent experts. 
2. The Commission shall present a report by 31 December 2002 on the 
implementation of the programme and the results obtained in third countries and 
Member States, accompanied by the external assessment by independent experts 
on which it is based. 
3. Each year the Commission shall present a report on the implementation of the 
external energy activities under the various Community instruments. 
4. These reports shall be addressed to the European Parliament and the Council. 
Article 10 
This Regulation annuls and replaces Council Regulation (EC) No / 
This Regulation shall be binding in its entirety and directly applicable in all "Member 
States. 
Done at Brussels, For the Council 
The President 
56 
Annex 
INDICATIVE ACTION PROGRAMME 
For the purposes of implementing the SYNERGY programme and drawing up the 
action programme the following guidelines shall be taken into account. 
The tasks of SYNERGY are to help achieve the Community's energy objectives as set 
out in the Council's resolution on the White Paper "An energy policy for the European 
Union": 
overall competitiveness, 
security of supply, 
environmental protection. 
Each of these objectives has a sizeable external component, as is made clear in the 
White Paper. SYNERGY will implement action in line with its objectives and ensure 
closer coordination of international cooperation activities in the field of energy policy 
being conducted elsewhere in the Community. 
The SYNERGY guidelines have been drawn up on that basis. 
I. AREAS OF COOPERATION LINKED TO THE COMMUNITYS ENERGY 
OBJECTIVES 
A) Activities pursuant to all three objectives: 
advise third countries on energy policy; 
encourage energy efficiency in third countries; 
develop local and, in particular, renewable energy sources; 
encourage regional energy integration; 
promote consistency in the implementation of Community programmes in 
specific regions (e.g. the Black Sea, the Mediterranean and the Gulf). 
B) Overall competitiveness: 
support the development of cooperation designed to strengthen the presence of 
European players on key markets in the energy sector, in particular Asia and 
Latin America; 
advise third countries on organisation of the energy sector; 
support liberalisation and opening-up of the energy sector, helping third 
countries to draw up energy policies in this new situation, in particular in 
conformity with the Energy Charter Treaty; 
favour greater investment by European undertakings in the energy sector in 
third countries. 
57 
C) Security of supply: 
dialogue with energy-producing and exporting countries: Gulf, Russia, 
producer countries in America, Asia and Africa; 
encouraging dialogue between the European Community and the countries 
which have signed the Energy Charter Treaty, in particular with the transit and 
energy-producing transit countries, by helping to implement the provisions of 
the Energy Charter Treaty; 
participation in and support for the work of international bodies in this sector: 
ministerial and producer/consumer conferences, International Energy Agency; 
support in creating a favourable environment for investment in third countries 
in the production and transit of energy, in conformity with international law, 
particularly the Energy Charter Treaty and the disciplines agreed within the 
WTO. 
D) Environment: 
training decision-makers and staff in the energy industry in third countries in 
environmental awareness; 
disseminating the Community's experience and information on energy and the 
environment; 
encouraging use of clean technology, in particular for the combustion of coal in 
major consumers like China, taking the implications for energy policy into 
account; 
strengthening and supporting efforts to have environmental aspects taken into 
account in third countries' energy policy and planning; 
encouraging and helping third countries to plan and implement national energy 
supply and use policies in keeping with each different environmental situation. 
II. GEOGRAPHICAL PRIORITIES AND CONSISTENCY WITH THE 
COMMUNITY'S INTERNATIONAL COOPERATION PROGRAMMES 
A) Role and priorities: 
In international relations in the energy field SYNERGY: 
- will promote energy cooperation vis-à-vis third countries; 
- will aim at having its objectives taken into account in the external cooperation 
activities carried out by other Community programmes; 
- will facilitate the emergence of energy projects financed by other Community 
cooperation instruments. 
58 
B) Geographical priority areas 
SYNERGY will concentrate on the geographical priorities in the Community's external 
relations and will help achieve certain of those priorities. 
The areas given priority by SYNERGY are: 
Central and Eastern Europe; 
New Independent States (NIS); 
Mediterranean third countries; 
Latin America: emphasis will be placed on Mercosur, Chile, Mexico and 
Venezuela; 
Asia: China, India and the Asean countries; 
Africa. 
59 
FINANCIAL STATEMENT 
ITEMB4-1041 
1. TITLE OF OPERATION 
Promotion of international cooperation in the energy sector - SYNERGY 
programme. 
2. BUDGET HEADING INVOLVED 
B4-1041 
3. LEGAL BASIS 
Council Regulation (EC) No 701/97 of 14 April 1997 adopting a programme to 
promote international cooperation in the energy sector - SYNERGY programme 
(OJNoL104, 22.4.1997, p. 1). 
Proposal for a Council Regulation (EC) extending the programme to promote 
international cooperation in the energy sector- SYNERGY programme - as 
established by Council Regulation (EC) No 701/97 of 14 April 1997. 
Proposal for a Council Decision adopting a framework programme for actions in 
the energy sector (1998-2002). 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
The need for an international cooperation programme at European level to 
complement the internal policies in this sector has been heightened by 
developments on the world energy scene in recent years: 
- Europe's growing dependence on outside energy sources; 
- extremely sharp increase in demand for energy in developing countries; 
- growing impact of environmental problems, particularly greenhouse gas 
emissions, on energy choices. 
60 
The objective is to promote cooperation in the field of formulation and 
implementation of energy policy in third countries to help achieve the objectives of 
the European Union's energy strategy, namely: 
- overall competitiveness; 
- security of energy supply for Europe; 
- environmental protection. 
This operation should help to attain these objectives by launching schemes aiming, 
in particular, at: 
- improving energy efficiency in third countries; 
- promoting use of clean technologies; 
- encouraging use of local and, in particular, renewable energy sources; 
- providing support for regional integration and opening-up of the energy sector 
in third countries; 
- fostering dialogue and contacts between Europe, third countries and, in 
particular, producer countries and international organisations in the energy 
field; 
- supporting penetration by European energy undertakings in third countries; 
- strengthening ties between experts and decision-makers in the energy sector 
within the Community and between the Community and third countries. 
The operation also provides support for the European Union's external relations 
policy and helps to establish frameworks for steering and preparing energy projects 
and to pave the way for the accession of Central and Eastern European countries. 
Formulation of the annual programme, in collaboration with other Commission 
departments and representatives of the Member States, will provide an opportunity 
to target SYNERGY on the priority issues, taking account of the annex to the 
Regulation, as proposed by the European Parliament. 
4.2 Period covered 
Five years, from 1 January 1998 to 31 December 2002. 
5. CLASSIFICATION OF EXPENDITURE 
Non-compulsory expenditure/differentiated appropriations. 
61 
6. TYPE OF EXPENDITURE OR RE VENUE 
EXPENDITURE 
Financing of studies, technical assistance and advice through the possible 
intermediary of experts, training and promotion activities, dissemination of 
information, organisation of conferences, seminars, workshops, technical and 
educational visits, support for energy cooperation or energy policy institutions and 
other activities in support of energy policy. 
Expenditure on promotion of the programme, dissemination of the results and 
evaluation of the programme by outside experts and operating expenditure of 
bodies supporting cooperation in the energy field. 
Normally the Community will contribute not more than 50% of the total cost of 
the project and will fund projects jointly with third countries, the Member States 
or international organisations. 
In certain cases, however, the Community can contribute up to 100%: to finance 
experts seconded full time to the authorities in third countries or action solely in 
the interest of the Community (preliminary studies, reconnaissance missions, 
European energy centres, project evaluation, etc.). 
REVENUE 
Any revenue from repayments by States participating in the European Energy 
Charter is available for re-use in accordance with Article 27(2)(b) of the Financial 
Regulation of 21 December 1977 applicable to the general budget of the European 
Communities (OJ No L 356, 31.12.1977, p. 1), as last amended by Regulation 
(EC, Euratom, ECSC) No 2335/95 (OJNo L 240, 7.10.1995, p. 12). 
7. FINANCIAL IMPACT 
7.1 Method of calculating total cost of operation (link between unit costs and total 
cost) 
• Horizontal measures 
Short-term missions by experts from Europe or third countries: 
transport, fees and daily allowances: 240 missions costing ECU 10 000 each 
One interim evaluation and one final evaluation of the programme costing an 
average of ECU 150 000 = ECU 300 000. 
Energy analyses 
Studies costing an average of ECU 100 000 x 64 
Cooperation in formulating energy policy in third countries 
Long-term (six-month) missions by experts costing an average of ECU 100 000 
per mission x 63 
62 
• Financial support for energy institutions 
Long-term (one-year) missions by experts costing an average of ECU 200 000 per 
mission x 30 
Technical visits and training in Europe for 25 citizens from third countries costing 
an average of ECU 20 000 x 150 visits 
• Support for industrial cooperation 
Seminars costing an average of ECU 100 000 x 10 
Visits by European delegations to third countries costing an average of 
ECU 74 000x10 
• Seminars, conferences and workshops 
Seminars or workshops costing an average of ECU 100 000 x 20 
Conferences costing an average of ECU 200 000 x 15 
• Information and training 
(Grants and scholarships) 
63 
7.2 Itemised breakdown of cost in ECU million 
Breakdown 
Horizontal measures 
Energy analyses 
Cooperation in formulating energy 
policy in third countries 
Support for industrial cooperation 
Financial support for energy 
institutions 
Seminars, conferences and 
workshops 
Information and training 
TOTAL= 1998 
0.5 
1.2 
1.2 
0.3 
1.8 
1 
1 
7.00 1999 
0.5 
1.3 
1.2 
0.34 
1.8 
1 
1 
7.14 2000 
0.58 
1.3 
1.3 
0.3 
1.8 
1 
1 
7.28 2001 
0.5 
1.3 
1.3 
0.4 
1.8 
1 
1.12 
7.42 2002 
0.62 
1.3 
1.3 
0.4 
1.8 
1 
1.15 
7.57 Total 
2.7 
6.4 
6.3 
1.74 
9 
5 
5.27 
36.4 
Comments: 
The increase in budgetary resources from 2000 on will be allocated to three types of 
action: 
- support for industrial cooperation to help European undertakings in this sector to 
penetrate markets in third countries; 
- cooperation in formulating energy policy so that third countries take account of the 
Community's energy objectives; 
- increased expenditure on evaluation and monitoring of the action envisaged (under 
"Horizontal measures"). 
7.3 Operating expenditure on studies, experts, etc. entered in Part B of the 
budget 
EC in ECU million (current prices) 
Information and publications 1998 
0.2 1999 
0.2 2000 
0.2 2001 
0.2 2002 
0.2 Total 
1 
64 
7.4 Indicative schedule of commitments and payments 
The amount will be set annually by the budgetary authority. 
The indicative commitment and payment appropriations (in ECU million) will be as 
follows: 
Commitment 
appropriations 
Payment appropriations 
1997 
1998 
1999 
2000 
2001 
2002 
2003 
Total 1998 1999 
7.14 
6 
1.14 
7.14 2000 
7.28 
6 
1.28 
7.28 2001 
7.42 
6 
1.42 
7.42 2002 
7.57 
6.5 
1.07 
7.57 Total 
36.4 
6 
7 
7.14 
7.28 
7.92 
1.07 
36.4 
l_ I I 1 I I I 
Financial support for energy institutions in third countries should decrease as the 
institutions become self-sufficient. 
8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
The work is paid after its acceptance on the basis of a contribution rate set before award 
of the contract, and in the light of a final financial report on the operation. Documentary 
proof of travel and subsistence expenses may be required. Checks on the documents and 
on-the-spot inspections may be carried out. 
9. ELEMENTS OF COST-EFFECTIVENESS 
9.1 Specific objectives 
A distinction can be drawn between: 
• the specific objectives to which SYNERGY contributes without bearing 
sole responsibility for the results; 
65 
• the direct objectives of the SYNERGY schemes. 
9.1.1 Objectives of the programme 
• To reduce the predicted increase in greenhouse gas emissions worldwide by 
means of measures to encourage energy efficiency, new technologies, 
renewable sources and energy planning. 
• To increase energy investment and exports by European undertakings in third 
countries. 
• To facilitate interconnection of the energy networks in third countries and 
between third countries and Europe. 
• To prepare for accession of the associated countries by helping to bring their 
energy policies closer to EU energy policy. 
• To maintain or increase the capacity for exporting energy from third countries 
to Europe, despite the growing demand in third countries. 
9.1.2 Specific objectives of the schemes 
In the case of seminars, conferences, workshops and financial support for 
cooperation bodies: 
• to strengthen ties between decision-makers in the public or private sectors in 
Europe and in third countries; 
• to foster contacts between the authorities responsible in third countries; 
• to help to implement other cooperation schemes between the Community and 
third countries; 
• to disseminate information on the energy situation in Europe. 
In the case of cooperation in formulating energy policy in third countries and 
energy analyses: 
• to make a European contribution to formulation of energy plans and regulations 
in third countries. 
In the case of training and information: 
• to train members of the profession in third countries and make them aware of 
European points of view. 
Target population 
States, public energy services, businesses, individuals from third countries and 
from the European Community. 
9.2 Grounds for the operation 
Action at Community level is justified for the following reasons: 
• only the Community can support European interests and undertakings without 
favouring any particular Member State; 
• the Community as such is designated as the intermediary with third countries in 
contexts such as the G-24 or agreements concluded with some third countries 
which explicitly include energy in their scope; 
• action at Community level will make it possible to complete the measures taken 
at the level of Member States and to strengthen their impact; 
• the European Community can represent better the interests of the Member 
States as a whole; 
• action at European Community level will make it possible to use expertise 
scattered between several Member States. 
Compared with the Community's other international cooperation programmes, 
SYNERGY provides a means of taking account of the Community's energy 
interests with the aim of closer coordination of the programmes covering different 
regions of the world. 
9.3 Monitoring and evaluation of the operation 
First, the officials responsible for each geographical region already manage, 
monitor and evaluate, at their level, each project of which they are in charge. 
Performance indicators selected 
As SYNERGY is a programme of cooperation in formulating energy policies, it is 
difficult to determine quantitative indicators of its impact. 
Furthermore, action relating to energy policy influences production or 
consumption figures only in the medium or long term. 
Nevertheless, it is possible to apply indicators corresponding to the two types of 
objective mentioned in Section 9.1. 
In the case of the general objectives: 
• comparison of greenhouse gas emission levels with forecasts; 
• country-by-country trends in the energy efficiency index; 
• increase in local production, particularly the share taken by renewable sources; 
• amount of European energy investment and exports; 
6 
• growth in energy exports from third countries, in relation to their domestic 
demand trends; 
• investments in interconnections between third countries and between Europe 
and third countries. 
In the case of the specific objectives of the schemes: 
• number of participants at conferences or meetings organised by SYNERGY 
plus, possibly, number of business contacts made and of measures taken to 
follow up suchf meetings; 
• number of countries drawing on European experience to formulate their energy 
policy; 
• number of members of the profession trained; 
• number of people informed about the projects; 
• cooperation schemes to follow up a SYNERGY project. 
Details and frequency of planned evaluations 
The proposal for a Council Regulation provides for two reports, based on an 
assessment by independent experts. 
The first, after two years' activity, will focus primarily on implementation of the 
programme. 
The second, at the end of the programme, will also examine the results of the 
programme in the countries concerned. 
The projects funded will also be audited by independent experts. 
9.3 Elements for evaluation of cost-effectiveness 
To compare the figures with other programmes, allowance must be made for the 
fact that the projects are managed and monitored directly by officials from the Unit 
and that these tasks are not farmed out. Moreover, SYNERGY takes the form of 
Community initiatives and action (such as the Euro-Mediterranean Forum) which 
provide results that can be used by other programmes. This calls for greater 
involvement by officials for identification and negotiation of the projects. 
10. ADMINISTRATIVE EXPENDITURE 
The annual decisions taken by the Commission on allocation of resources will 
make sure that the administrative resources required are effectively made available, 
68 
taking account, in particular, of any extra staff and funds granted by the budgetary 
authority. 
10.1 Impact on the number of staff 
Post 
Officials 
or temporary 
staff A 
B 
C 
Other resources 
Total Staff to be assigned to 
management of the 
operation 
permanent 
staff 
2.5 
1 
2 
5.5 temporary 
staff 
0.5 
1 seconded 
national 
expert 
1.5 of whom 
existing 
resources 
within the 
DG or 
department 
concerned 
3 
1 
2 
1 seconded 
national 
expert 
7 additional 
resources duration 
10.2 Total financial impact of the human resources 
The total annual cost of administration of the programme can therefore be 
estimated at 7 x ECU 103 000 = ECU 721 000. 
10.3 Other operating expenditure 
Budget heading Amount Method of calculation 
A-130 Mission expenses, travel 120 000 Estimate based on expenditure in the 
expenses and incidental expenditure first nine months of 1997. 
A-2510 Meeting specifically on 46 200 Two meetings per year with two 
international cooperation within the representatives per Member State, 
Framework Programme Committee based on an average cost "of ECU 
770. These meetings should be held in 
common with the meetings on the 
other specific programmes. 
Total 166 200 
The appropriations indicated are funded from the existing amount allocated to the 
departments running the programme. 
10 69 
EUROPEAN COMMISSION 
ANNEX IV 
PROPOSAL FOR A COUNCIL DECISION 
adopting a 
multiannual programme for 
the promotion of renewable energy sources 
in the Community 
(1998-2002) 
70 
PROPOSAL FOR A COUNCIL DECISION ADOPTING A MULTIANNUAL 
PROGRAMME FOR THE PROMOTION OF RENEWABLE ENERGY SOURCES 
IN THE COMMUNITY - ALTENER II 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 130s (1) thereof, 
Having regard to the proposal from the Commission,1 
Having regard to the opinion of the Economic and Social Committee,2 
Having regard to the opinion of the Committee of the Regions,3 
Acting in accordance with the procedure laid down in Article 189c of the Treaty, in 
cooperation with the European Parliament,4 
Whereas Article 13 Or of the Treaty lays down that one of the objectives of Community 
action is to ensure prudent and rational utilization of natural resources; 
Whereas Article 129 of the Treaty lays down that health protection requirements shall 
form a constituent part of the Community's other policies; whereas this programme 
contributes to health protection; 
Whereas, at its meeting on 29 October 1990, the Council announced its objective of 
stabilising total C02 emissions by 2000 at the 1990 level in the Community as a whole; 
whereas at its meetings in March and June 1997, the Council adopted as a negotiating 
position for the Kyoto meeting under the Convention on Climate Change a reduction 
in greenhouse gas emissions of 7.5% by 2005 and 15% by 2010 compared with 1990 
levels; 
71 
Whereas to achieve significant reductions in C02 emissions in the Community greater 
efforts are required, particularly in view of the fact that C02 emissions from energy 
consumption in the Community are likely to increase by between 5 and 8% between 
1995 and 2000, assuming normal economic growth; whereas it is, therefore, essential 
to adopt additional measures; 
Whereas a mechanism for monitoring C02 and other greenhouse gas emissions was 
established by Council Decision 93/398/EEC of 24 June 1993;5 
Whereas, at its meeting on 25 and 26 June 1996, the Council noted that in the 
framework of negotiations seeking a protocol according to the Berlin Mandate, the 
Second Assessment Report of the Intergovernmental Panel on Climate Change 
(SARIPCC) had concluded that the balance of evidence suggests that there is a 
discernible human influence on global climate change and had stressed the need for 
urgent action at the widest possible level, noted that significant 'no-regrets' 
opportunities were available and requested the Commission to identify which measures 
have to be taken at Community level; 
Whereas with the Green Paper of 11 January 19956 and the White Paper of 
13 December 19957 the Commission communicated to the European Parliament and 
the Council its views on the future of energy policy in the Community and on the role 
that renewable energy sources should play; 
Whereas in its resolution of 4 July 19968 the European Parliament calls on the 
Commission to implement a Community action plan to promote renewable energy 
sources; 
Whereas with the Green Paper of 20 November 1996,9 Energy for the Future: 
Renewable sources of energy, the Commission started the process of the development 
and subsequent implementation of a Community strategy and an action plan on 
renewable energy sources (RES); 
Whereas Article 130a of the Treaty provides that the Community shall develop and 
pursue its actions leading to the strengthening of its economic and social cohesion and 
that, in particular, it shall aim at reducing disparities between the various regions and 
especially the backwardness of the least-favoured regions; whereas those actions cover 
inter alia the energy sector; 
5 OJNoL167, 9. 7. 1993, p. 31. 
6 COM(94)649 of 11.01.1995. 
7 COM(95)682ofl3.12.1995. 
8 A4-0188/96-EP 251.039. 
9 COM(96)576 final of 20.11.1996. 
7 O 
Whereas by Decision 93/500/EEC of 13 September 199410 the Council adopted a 
Community programme for the promotion of renewable energy sources (ALTENER) 
aimed at reducing C02 emissions by increasing the market share of renewable energy 
sources and their contribution to overall primary energy production in the Community; 
whereas that programme ends on 31 December 1997; 
Whereas the Community has recognised that the ALTENER programme represents an 
important element of the Community strategy for reducing C02 emissions; 
Whereas the Commission has presented a proposal11 for a Council Decision adopting a 
multiannual programme for the promotion of renewable energy sources in the 
Community (ALTENER II); 
Whereas a multiannual framework programme for actions in the energy sector has 
been implemented; 
Whereas European Parliament and Council Decision No 1110/94/EC of 
26 April 199412 established a fourth framework programme for research, technological 
development and demonstration projects; whereas policy in the field of renewable 
energy sources is an important instrument for the use and promotion of the new energy 
technologies that the framework programme will develop; whereas the ALTENER II 
programme is an instrument which complements that programme; 
Whereas the Commission has presented to the Council and the European Parliament its 
proposals relating to the 5th RTD Framework Programme;13 
Whereas the increased use of renewable energy sources will have a positive effect both 
on the environment and on security of energy supplies; whereas a high degree of 
international cooperation is desirable to achieve the best results; 
Whereas a strengthened ALTENER II programme represents an essential instrument 
for developing the potential of renewable energy sources; 
Whereas in implementing the programme, there should be close cooperation with other 
Community actions and programmes also concerned with promoting renewable energy 
sources; 
Whereas it is politically and economically desirable to open the ALTENER II 
programme to the associated Central and East European countries in accordance with 
the conclusions of the European Council meeting in Copenhagen in June 1994,14 and 
10 OJ No L 235, 18.09.1993. 
11 COM(97)87 final of 12.03.1997. 
12 OJNoL 126, 18.05.1994. 
13 
14 
73 
as outlined in the communication on this subject presented to the Council by the 
Commission in May 1994,15 and also to Cyprus, 
HAS ADOPTED THIS DECISION: 
Article 1 
1. A five-year programme of measures and actions to promote renewable energy 
sources in the Community, called ALTENER II, hereinafter referred to as 'the 
programme", shall be implemented. 
The objectives of the programme shall be to: 
(a) help create the necessary conditions for the implementation of a Community 
action plan for renewable energy sources, and in particular the legal, 
socioeconomic and administrative conditions, and to 
(b) encourage private and public investments in the production and use of 
energy from renewable sources. 
These two objectives contribute to achieving the overall Community objectives 
and concerns of limiting C02 emissions, increasing the share of renewable 
energy sources in the energy balance, reducing energy import dependence, 
ensuring the security of energy supply, and fostering economic development, 
economic and social cohesion and regional and local development. 
2. Community financial support shall be granted under the programme for actions 
meeting the objectives of this Decision. 
3. The ALTENER II programme shall begin on 1 January 1998 and end on 31 
December 2002. 
4. The annual appropriations for the implementation of the programme shall be 
authorized by the budgetary authority within the limits of the financial 
perspectives. 
Article 2 
The following actions and measures relating to renewable energy sources shall be 
financed under the programme: 
(a) Studies and other actions, intended to implement and complement Community 
measures taken to develop the potential of renewable energy sources. These 
include the development of sectoral and market strategies, the development of 
norms and standards, grouped procurement and the analysis of the legal, 
socioeconomic and administrative conditions which are more favourable to the 
15 COM 
74 
market penetration of renewable energies and the preparation of appropriate 
legislation; 
(b) Pilot actions aimed at creating or extending infrastructures and instruments for 
the development of renewable energy sources in: 
local and regional planning, 
the tools for planning, design and evaluation, 
new financial and market instruments, 
information, 
education and training; 
(c) Measures proposed by the Commission to encourage the exchange of experience 
and know-how aimed at improving coordination between international, 
Community, national, regional and local activities; establishment of a centralised 
system for collecting and circulating information and know-how on renewable 
energy sources; 
(d) Measures to encourage the exchange of experience and know-how, proposed by 
an entity other than the Commission; 
(e) Targeted actions facilitating the market penetration of renewable energy sources 
and encouraging investment, by assisting the preparation, presentation and 
implementation of projects. 
The aim of these targeted actions is to facilitate and accelerate investment in new 
operational capacity for the production of energy from renewable sources by providing 
financial support in order to reduce the peripheral and services costs of renewable 
energy projects, and thus overcome the non-technical obstacles present. 
This action shall promote, inter alia: access to specialized advice, analysis of market 
prospects, choice of location of projects, application for construction and operation 
permits, establishment of financing plan, preparation of calls for tender, training of 
operators, and plant commissioning. 
The targeted actions shall concern projects carried out in the following areas: 
biomass, including energy crops, fire wood, residues from forestry and 
agriculture, municipal waste,16 liquid biofuels and biogas, 
thermal and photovoltaic solar systems, 
passive and active solar systems in buildings, 
16 Communication from the Commission on the review of the Community strategy for waste 
management, COM(96)399 final of 30.07.1996. 
75 
small scale (< 10 MW) hydroelectric projects 
wind power 
geothermal energy. 
(f) Actions intended to: 
monitor the implementation of the Community strategy and action plan for 
the development of renewable energy sources, 
support initiatives taken in implementing the action plan, particularly with a 
view to promoting better coordination and greater synergy between actions, 
including all Community funded activities, 
monitor the progress achieved by the Community and its Member States 
with regard to the development of renewable energy sources, 
evaluate the impact and cost effectiveness of measures undertaken under this 
programme. This evaluation shall also take into account the environmental 
and social aspects. 
Article 3 
1. All costs relating to the actions and measures referred to in points (a), (c) and (f) 
of Article 2 shall be borne by the Community. 
2. The level of funding under this programme for the actions and measures referred 
to in points (b) and (d) of Article 2 may not exceed 50% of their total cost, the 
balance being made up from either public or private sources or a combination of 
the two. 
3. The level of funding under this programme for the actions and measures referred 
to in Article 2(e) shall be established annually for each of the targeted actions in 
accordance with Article 4(2). 
Article 4 
1. The Commission shall be responsible for the implementation of the programme. 
2. The conditions and guidelines applicable to funding for the actions and measures 
referred to in Article 2 shall be defined annually, regard being had to: 
(a) the priorities set out by the Community and the Member States in their 
programmes for the promotion of renewable energy sources, 
(b) criteria relating to the profitability and development potential of renewable 
energy sources and their effects on employment and the,environment, in 
particular the reduction of C02 emissions; 
76 
(c) for the actions referred to in point (e) of Article 2, the relative cost of the 
assistance, the new production capacity expected to arise and the extent of 
transregional and/or transnational benefits; 
(d) the principles established in Article 92 of the Treaty and the relevant 
Community guidelines on State aid for environmental protection. 
Article 5 
The Commission shall be assisted by the committee referred to in Article 4 of the 
Council Decision adopting a multiannual framework programme for actions in the 
energy sector. 
Article 6 
1. During the second year of the programme, the Commission shall present a report 
to the European Parliament, the Council, the Economic and Social Committee 
and the Committee of the Regions, on the measures taken to promote renewable 
energy sources at the level of the Community and of the Member States, with 
reference in particular to the objectives set out in Article 1. This report shall be 
accompanied by proposals for any amendments to the programme which may be 
necessary in the light of those results. 
2. On expiry of the programme, the Commission shall assess the results obtained 
from the application of this Decision and the consistency of national and 
Community actions. It shall present a report thereon to the European 
Parliament, the Council, the Economic and Social Committee and the Committee 
of the Regions. 
Article 7 
The programme shall be open to participation by associated Central and Eastern 
European countries (CEEC) in accordance with the conditions, including financial 
provisions, laid down in the additional protocols to the Association Agreements, or in 
the Association Agreements themselves, relating to participation in Community 
programmes. The programme shall also be open to participation by Cyprus on the 
basis of additional appropriations, under the same rules as those applied to EFTA/EEA 
countries, in accordance with procedures to be agreed with those countries. 
Article 8 
This Decision cancels and replaces Council Decision (EC) No 
Article 9 
This Decision is addressed to the Member States. 
Done at Brussels, For the Council • 
The President 
77 
FINANCIAL STATEMENT 
1. TITLE OF THE OPERATION 
Energy framework programme (1998-2002) 
ALTENER II. Multiannual programme for the promotion of renewable energy 
sources in the Community 
2. BUDGET HEADING 
B4.1030 
3. LEGAL BASIS 
Council Decision 93/500/CEE of 13 September 1993 (OJ No. L 235 of 18.9.93, 
p. 41). ALTENER I Programme. 
Proposal for a Council Decision, presented on 22 May 1997, concerning a 
multiannual programme for the promotion of renewable energy sources in the 
Community (ALTENER II) (OJNo C 192, 24.06.1997, p. 16). 
Proposal for a Council Decision adopting a framework programme for actions in the 
energy sector (1998-2002). 
4. DESCRIPTION OF THE OPERATION 
4.1. General objective 
The Commission considers that a continuation of the ALTENER programme is 
necessary. It makes an essential contribution to an increased use of environmentally 
friendly renewable energies and is an important part of the Community's strategy to 
reduce CO2 emissions. This objective is in conformity with Articles 130r and 130s of 
the Treaty. 
Renewable energy's contribution to the primary energy needs of the European 
Community is presently just below 6% and amounts to about 70 Mtoe. In its 
Communication on "Energy for the Future : Renewable Energy Sources. Green 
Paper for a Community Strategy", the Commission proposes a significant increase in 
the use of renewables for the year 2010. An indicative target of a doubling of the 
share of renewable energies by 2010 was settled upon during the process of adopting 
the Green Paper. The Commission is preparing a proposal for a Communication on 
the White Paper. "Community strategy for renewable energy sources up to 2010", 
together with an action plan. ALTENER II has an important role to play in the 
implementation and follow-up of this strategy and its action plan. 
The purpose of the ALTENER programme is to make a meaningful contribution to 
the achievement of this Community objective. Increased use of renewable energies 
will also contribute to social cohesion within the Community, promote the 
valorisation of local energies and accelerate the penetration of new energy 
78 
technologies (many of which have been developed with Community funding) into the 
marketplace. 
In the light of the considerations mentioned above, the Commission is proposing a 
continuation of the ALTENER programme which will embody many of the 
recommendations made by a team of independent experts and the conclusions of the 
ALTENER Conference as well as the experience gained by the Commission in the 
operation of the ALTENER programme and other energy actions. 
4.2. Period covered and arrangements for renewal or extension 
The action covers a period of five years from 1 January 1998 to 31 December 2002. 
5. CLASSIFICATION OF EXPENDITURE 
NCE/DA 
6. TYPE OF EXPENDITURE OR REVENUE 
The budget proposed for ALTENER II is ECU 81.1 million. 
The budget for ALTENER I was originally ECU 40 million but the allocation was 
increased by the end of the programme to some ECU 46.4 million. 72% of the total 
budget was spent in the years 1994, 1995 and 1996. Year 1993 had in practice only 
four months - the programme was adopted on 18.09.1993 - and in 1997 the budget 
available is ECU 8.2 million. 
ALTENER II will be composed of six types of actions and measures concerning 
renewable energy sources: 
A. EXTENSION OF ALTENER I ACTIONS : 
(a) studies and other actions intended to implement and complement Community 
measures taken to develop the potential of renewable energy sources, such as 
sectoral and market strategies, the development of norms and standards, 
grouped procurement and legislation; 
(b) pilot actions aimed at creating or extending infrastructures and instruments for 
the development of renewable energy sources in: 
- local and regional planning, 
- the tools for planning, design and evaluation, 
- new financial and market instruments, 
- information, 
- education and training; 
(c) measures proposed by the Commission to encourage exchanges of experience 
and knowhow; establishment of a centralised system. for collecting and 
circulating information on renewable energy sources; 
79 
(d) measures to encourage exchange of experience and knowhow proposed by an 
entity other than the Commission. 
B. NEW ACTIONS TO PROMOTE PENETRATION OF RENEWABLES 
(e) targeted actions facilitating the penetration of renewable energy sources and 
encouraging investment in the following areas: 
- biomass, including energy crops, fire wood, residues from forestry and 
agriculture, municipal waste, liquid biofuels and biogas, 
- thermal and photovoltaic solar systems, 
- passive and active solar systems in buildings, 
- small scale hydroelectric projects, 
- wind power, 
- geothermal energy. 
C. NEW ACTIONS IMPLEMENTING THE COMMUNITY RES 
STRATEGY 
(f) Actions intended to: 
- monitor the implementation of the Community strategy and action plan 
for the development of renewable energy sources; 
- support initiatives taken to implement the action plan particularly with a 
view to promoting greater synergy between actions; 
- monitor the progress achieved by the Community and its Member States 
with regard to the development of renewable energy sources; 
- evaluate measures taken under this programme. 
Financial support will be: 
- up to 100% for the expenses relating to the actions described in 
paragraphs a), c) and f). 
- between 30% to 50% of the total cost for actions described in paragraphs 
(b) and (d), the remainder being borne by the Member States or by 
private companies. 
The level of financial support for the various actions under Article 2(e) will be 
defined annually. 
The actions selected will be entered under an indicative programme with annual 
fixing of priorities and guidelines. 
Annual guidelines will be submitted for opinion to an advisory committee made 
up of representatives of the Member States. 
Any financing will be the subject of a contract between the Commission and the 
person responsible or the coordinator of the financed action. 
10 Ï0 
7. FINANCIAL IMPACT 
The annual appropriations for the implementation of the programme will be 
established by the budgetary authority within the limits of the financial 
perspectives. The amount will be fixed annually by the budgetary authority (see 
Table 7.2). 
The proposed indicative budget is ECU 81 100 000. 
The amounts proposed are subject to the limits of the financial perspectives 
currently in force. When the next financial perspectives are drawn up, the 
funding of priority actions to promote renewable energy sources could be 
reconsidered. 
7.1. Method of calculating total cost of operation (definition of unit 
cost) 
The following detailed breakdown and explanation by action indicate how the 
total cost of the operation has been calculated. 
Actions under Art. 2a) Implementing and complementing Community 
measures taken to develop the potential of RES 
Sectoral studies: the past average cost has been taken as the basis considering, 
however, that all the studies have now to include all 15 Member States and the 
CEECs. (As regards the Member States, the studies were carried out on the 
basis of EUR-12 and have now to be extended to EUR-15). 
Harmonisation: same approach as for sectoral studies. The harmonisation of, 
among other things, authorisation procedures and conditions for connection to 
the grid as well as measures in force in the Member States is analysed on the 
basis of the projects in implementation of the strategy. 
Standards: the past average cost ~ ECU 500.000/mandate. 
H 81 
inkECU 
Breakdown 1998 1999 2000 2001 2002 I Total 
Art. 2a) Implementing and complementing Community measures taken to develop 
the potential of RES 
* Studies on sectoral 
and market strategies 
* Background for 
harmonisation 
* Development of 
norms and standards 
Subtotal Art. 2a 500 
1000 
500 
2 000 500 
500 
1000 
2 000 1000 
1 500 
1 500 
2 000 1000 
1 500 
1 500 
2 000 1000 
1 500 
1 500 
2 000 4 000 
6 000 
6 000 
10 000 
Actions under Art. 2b) Infrastructures and instruments for the 
development of RES 
Infrastructures and planning: At least one project per year for 10 countries and 2 
for 5 countries in the three types of infrastructures. Local and regional planning 
and training and information infrastructures must be improved. 
inkECU 
Breakdown 1998 
Art. 2b) Actions on infrastructures anc 
* Projects relating to 
planning and tools 
* Projects developing tools 
for design, assessment and 
evaluation 
* Projects on new financial 
and market instruments 
* Infrastructures for 
information, education and 
training 
Subtotal Art. 2b 1 500 
1 000 
1 000 
1 000 
4 500 1999 2000 2001 2002 || Total 
instruments for the development of R 
1 600 
1 100 
1 100 
1 100 
4 900 1 900 
1 000 
1000 
1 100 
5 000 1900 
1000 
1 000 
1 100 
5 000 1 900 
1 000 
1 000 
1 100 
5 000 ES 
8 800 
5 100 
5 100 
5 400 
24 400 
Actions under Art 2c) and Art. 2d) Dissemination of information 
Community events and publications: Four contractors' meetings on 
infrastructures and four on sectoral items. Promotional expenses, fact-sheets, 
brochures, etc. Promotion of the "campaign for take-off'. 
Temporary networks for specific tasks: In ALTENER I the three biomass 
networks were financed at only 30% and the cost was ECU 1.2 million in 95 and 
ECU 1 million in 96. The action has to be extended to other energy sources and 
the rate of funding increased. 
Centralised system for collecting and circulating information (creation of 
"Agores" virtual centre): Being a new action, estimated costs have been 
12 82 
calculated from the experience of the EnR network on collecting and processing 
information from Member States for ALTENER and its cost, and extrapolating, 
taking into account the increased number of countries, tasks and items to be 
included. The action will gradually be developed and extended to other targeted 
countries and activities. 
Support to national, regional and local information actions in collaboration with 
Member States local authorities, etc.: Support to at least two national events per 
year (max. 50% funding). 
Support to existing networks, associations and other parties: Almost all sectoral 
associations or federations hold one event per year and, for some of them, a 
world event every two years. Financial support could be from 30.000 to 
100.000. Support to newsletters or information actions could also be given. 
inkECU 
Breakdown 1998 1999 2000 
Art. 2c) + 2d) Dissemination of information, including co-
* Community events and 
publications, promotion of 
"campaign for take-off' 
* Temporary networks for 
specific tasks on biomass, 
waste, liquid, biofuels, solar 
thermal, solar PV, buildings, 
etc. 
* Centralised system for 
collecting and circulating 
information 
* Support to national, 
regional and local 
information actions in 
collaboration with Member 
States, local authorities, 
including EEA, CEECs, 
Cyprus 
* Support to existing 
networks, association and 
other parties 
Subtotal Art. 2c) and 2d) 500 
750 
750 
500 
500 
3 000 400 
750 
750 
500 
400 
2 800 500 
750 
750 
500 
500 
3 000 2001 2002 || Total 
inanced actions 
500 
750 
750 
500 
500 
3 000 500 
750 
750 
500 
500 
3 000 2 400 
3 750 
3 750 
2 500 
2 400 
14 800 
Actions under Art. 2e) Targeted actions promoting the penetration of RES 
and encouraging investment 
The financing will be for peripheral activities assisting the penetration of 
renewables and facilitating investments. The amounts proposed for this action 
13 
83 
have been based on the calculations provided by industry taking into account 
projections of development of the various sectors and estimates of the varying 
peripheral costs from industry. The contribution from this programme to these 
peripheral costs will be defined by the Commission during the call for tenders. 
This action has a very important role to play in the implementation of a 
"campaign for take-off' that the Commission is planning under the White Paper 
on renewables, one aim of which is to fill the gaps after the demonstration 
projects and encourage investment. 
inkECU 
Breakdown 1998 
Art. 2e) Targeted actions promoting t 
* Launching annual calls for 
tender/proposals and 
modifications or 
reorientations 
* Targeted actions: 
-Area 1: biomass, biogas, 
biofuels 
-Area 2: solar thermal and 
PV 
-Area 3 : solar in buildings 
-Area 4: small hydroelectric 
-Area 5: wind 
-Area 6: geothermal 
Subtotal Art. 2e) 100 
1 000 
750 
500 
500 
500 
250 
3 600 1999 2000 
îe penetration of R 
100 
1000 
1000 
1 000 
500 
500 
300 
4 400 100 
1 500 
1 500 
1 100 
500 
500 
300 
5 500 2001 2002 | Total 
ES 
100 
1 500 
1 500 
1 100 
500 
500 
300 
5 500 100 
1 500 
1 500 
1 200 
500 
500 
300 
5 600 500 
6 500 
6 250 
4 900 
2 500 
2 500 
1 450 
24 600 
inkECU 
Breakdown 1998 1999 2000 2001 2002 | Total 
Art. 2f) Implementing Community strategy and action plan for the development of 
RES 
* Monitoring of Member 
States and Community 
strategy measures; survey 
on action plan progress 
* Support for initiatives 
taken to implement the 
Action Plan 
* Monitoring progress on 
RES in the Community, in 
Member States and 
associated countries; 
statistics 
* Ongoing evaluation and 
follow-up of the programme 
TOTAL 500 
250 
300 
250 
1 300 500 
450 
300 
250 
1 500 500 
450 
300 
250 
1 500 500 
450 
300 
250 
1 500 500 
450 
300 
250 
1 500 2 500 
2 050 
1 500 
1250 
7 300 
14 84 
7.2. Itemised breakdown (commitment appropriations) 
inkECU 
Breakdown 
art.2 a) Implementing and 
complementing Community 
measures taken to develop 
the potential of RES 
art.2 b) Actions on 
infrastructures and 
instruments for the 
development of RES 
art.2 c) and d) 
Dissemination of 
information 
art.2 e) Targeted actions 
facilitating penetration of 
RES and encouraging 
investment 
art.2 f) - Monitoring of 
strategy and progress; 
evaluation and follow-up of 
the programme and actions 
Total 1998 
2 000 
4 500 
3 000 
3 600 
1 300 
14 400 1999 
2 000 
4 900 
2 800 
4 400 
1 500 
15 600 2000 
2 000 
5 000 
3 000 
5 500 
1 500 
17 000 2001 
2 000 
5 000 
3 000 
5 500 
1 500 
17 000 2002 
2 000 
5 000 
3 000 
5 600 
1 500 
17 100 Total 
10 000 
24 400 
14 800 
24 600 
7 300 
81 100 
15 85 
Comparison investment 
RES 
Biomass 
Solar PV 
Solar 
thermal 
Solar in 
buildings 
Small 
hyrdo 
Wind 
Geotherm 
al 
TOTAL Overall 
unit cost 
ECU/kW 
800 
4 000 
250/m2 
100 
1 100 
800 
2 000 t/peripheral 
• Peripheral 
costs as 
% 
% 
10 
20 
10 
20 
25 
15 
10 costs 
Peripheral 
costs in 
ECU 
ECU/kW 
80 
800 
25/m2 
20 
275 
120 
200 Estimate 
of eligible 
peripheral 
costs on 
basis of 
planned 
resources 
MECU 
18 
6 
8 
8 
4 
4 
2 
50 Estimate 
of (non-
eligible) 
investmefi 
ts 
MECU 
180 
30 
80 
40 
14 
26.5 
20 
392.5 Installed 
capacity 
MW 
225 
7.5 
320 mio 
m2 
400 
14.5 
33.5 
10 
Actions under Art 2f) Implementation of the Community RES strategy and 
action plan 
Monitoring of Member States and Community strategy measures; survey on 
action plan progress: Monitoring mechanisms have to be built up on a 
progressive basis based on national institutions (Energy agencies) for which the 
cost could be estimated at ECU 200.000-300.000 per year. Surveys are 
calculated on an average ECU 15.000 per country and year basis. Gradual 
extension to CEECs. 
Support of initiatives under the action plan: The costs are calculated on average 
ECU 15,000 per country per year, plus ECU 25,000 for coordination. Gradual 
extension to CEECs. 
Monitoring progress in the Community and in Member States with regard to the 
development of RES: Surveys for statistical purposes have been calculated by 
the Statistical Office on a ECU 20.000 per country and year basis. Gradual 
extension to CEECs and to other sectors: employment, training, etc. 
Ongoing evaluation and follow-up of the programme: The costs are calculated 
on average ECU 15.000 per country per year, plus ECU 25.000 for 
coordination. Gradual extension to CEECs and increase as the programme and 
strategy progress. 
16 86 
7.3. Operating expenses for studies, experts, meetings, etc. included in 
partB 
inkECU 
Breakdown Budget 
- Studies 50 000 ' 
*- Experts and evaluators meetings 25 000 
- Conferences and congresses 25 000 
- Information and publication 
TOTAL 250 000 
7.4. Schedule of commitment appropriations 
Commitment 
appropriations 1998 
14 400 1999 
15 600 2000 
17 000 2001 
17 000 2002 
17 100 TOTAL 
81 100 
FRAUD PREVENTION MEASURES; RESULTS OF MEASURES 
TAKEN 
The contracts awarded are paid on the basis of actual expenditure (except for 
study expenses which are flat-rate and paid on the basis of the accepted results). 
Most of the costs associated with the ALTENER projects are not linked to 
investments, so in most cases they are paid on the basis of accepted results. 
ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1. Specific objectives of the action to be taken under ALTENER II 
The Community will implement a five-year programme of measures and actions 
to promote renewable energy sources in the Community. The objectives of this 
programme will be to: 
Specific Objectives Means Target Population 
Implement and complement 
Community measures to develop 
the potential of RES Sectoral market strategies Decision makers, industry, promoters 
Harmonise the RES market Development of norms and 
standards and harmonisation of 
legal, socio-economic and 
administrative conditions Industry, producers, users 
Increase confidence and RES 
market penetration, and improve 
the sectors global maturity and 
competitiveness by supporting 
infrastructures National, regional and local 
planning 
Development of planning, design, 
assessment and evaluation tools 
and methodologies National, regional and local authorities, 
decision makers 
Decision makers, promoters, industry, 
producers 
17 
87 
Increase confidence and RES 
market penetration by improving 
dissemination and co-ordination 
between international, 
Community, national, regional and 
local experiences and activities 
Accelerate investment by 
increasing operational capacity for 
the production of energy from RES 
Implement Community RES 
strategy Development of new financial and 
market instruments 
Information infrastructures 
Education and 
infrastructures. training 
Community, national and regional 
events and publications 
Temporary and specific networks 
for exchanging know-how 
Centralised system for collecting 
and circulating information 
Support to existing networks 
Financial support for projects in 
order to reduce peripheral and 
service costs 
- Assessment of Member States 
and Community strategy measures 
and surveys on action plan 
progress 
- Implementation of the Action 
Plan, particularly with a view to 
promoting synergy with other 
Community and Member States 
actions. 
- Monitoring of progress on 
RES in the Community and 
Member States Financial institutions, promoters, 
investors, producers, users 
Decision makers, users 
University and technical students, 
retraining courses for workers, 
technicians, architects, engineers, 
schools, users 
Decision makers, industry, promoters, 
developers, producers, users 
Promoters, developers 
International, national, regional and 
local authorities, policy and decision 
makers, industry, promoters, 
developers, producers, users 
Industry, producers and users 
associations 
Public and private promoters, investors, 
producers and users 
Community institutions, Member States 
authorities, policy and decision makers 
Community institutions, Member States 
authorities 
Member States authorities, policy and 
decision makers, industry, promoters, 
producers and users 
9.2. Grounds for the operation 
Costs 
If we are to achieve a significant improvement in the share of RES in gross 
internal energy consumption, the supplementary investments necessary as 
estimated in the TERES II report could be ECU 180 billion up to 2020. 
Financing of such levels from the budgets of the European Union and from the 
Member States is excluded. The only possibility is independent financing by all 
the economic operators acting in a Community framework. The Commission 
intervenes by creating harmonized market conditions and supporting actions 
where additionality is clearly established or which have a multiplier effect. 
18 88 
The expected results are: 
Improvement in the quality of RES in the market 
Increase in confidence of promoters and investors in RES 
Increase in confidence in RES for users and consumers 
Appropriate solutions related to specific conditions and adequate 
infrastructures 
Adequate access to RES in the market 
Implementation of large-scale RES projects 
Effective monitoring of RES strategies in place 
Better complementarity between actions 
9.3. Monitoring and evaluation of the action 
For the purposes of evaluation and establishment of selection criteria for the 
projects, the Commission is assisted by an Advisory Committee composed of 
representatives of the Member States and national experts. For actions under 
Article 2(e) a technical group derived from the Advisory Committee will meet 
annually. 
Selected performance indicators: 
Global indicators: 
reduction of CO2 emissions; 
increase in the share of renewable energies in the gross domestic 
consumption of the Community 
increase in energy production capacity from renewable sources 
progress on the implementation of the Community RES strategy and action 
plan in the EC and in Member States. 
Specific indicators: 
number of norms and standards developed (art. 2a) 
number and scope of financial and market instruments that increase 
confidence (art 2a and b) 
number and scope of dissemination products and activities that increase 
confidence (art. 2c and d) 
number and type of infrastructures operating (art. 2b) (by survey) 
number and scope of local, regional and national plans (art. 2b) 
scope and groups targeted by promotion campaigns or information 
activities (art 2c and d) (by survey) 
new capacities established (art 2e) (see point 7.1 art. 2e) 
success rate of targeted projects (art. 2e). 
rates of SMEs involved in the projects (art. 2e) 
measures implemented in Member States (art 2f). 
19 89 
A monitoring system will be designed which will indicate how data on the listed 
indicators will be gathered and how the results will be verified. 
* The peripheral costs vary according to the technologies. The level of 
Community support for eligible costs connected with targeted actions (art. 2) is 
determined annually for each technology in accordance with art. 3.3 and 4.2. 
Methods and periodicity of the evaluation envisaged. 
The Commission continuously assesses the development of renewable energy in 
the Member States and submits a report periodically to Council and Parliament. 
In addition, the Commission will make regular reports to the ALTENER 
Advisory Committee which is made up of representatives of the Member States 
and which meets three or four times a year. 
The Commission engaged a team of independent consultants to carry out an 
evaluation of the ALTENER I programme. The new ALTENER II programme 
incorporates a large number of the recommendations put forward by this group 
of experts. The Commission also established a report on the results achieved at 
the end of the third year of the ALTENER programme. This report will be 
forwarded to the Council and to the European Parliament, in accordance with 
Article 8 of the Council Decision of 13 September 1993 (93/500/EEC). 
During the second year of ALTENER II an evaluation of the programme will be 
initiated so that an interim report on the results achieved can be presented before 
a new budgetary framework is proposed. 
10. ADMINISTRATIVE IMPACT 
The effective mobilisation of the necessary administrative resources will result 
from the annual Commission decision on the allocation of resources, taking into 
account in particular manpower and the additional amounts which will be 
granted by the budgetary authority. 
10.1 Impact on staff requirements 
The ALTENER programme develops Community strategy for renewable energy 
sources and is the only Community programme dedicated solely to promoting 
the penetration of renewable energy sources. The administrators responsible for 
the technical management of the contracts concerning pilot projects, studies, 
standards, dissemination of information and monitoring of specific networks are 
at the same time in charge of preparing Commission communications, legislative 
proposals to promote the penetration of renewable energy sources and the 
preparation, follow up and monitoring of Community strategy and the action 
plan. The procedures and discussions leading to the legislative proposals 
presented to the other institutions of the Union may be seen as a laborious 
exercise taking up around 30% of staff working time. The remaining 70% is 
spent on the technical management of projects funded under the ALTENER 
programme (in October 1997, the number of contracts under way was around 
190). ALTENER activities concern seven major energy sectors - biomass, small 
20 O 0 
hydroelectric wind power, solar thermal, solar PV, passive solar in buildings and 
geothermal - and four areas for pilot projects - local and regional planning, 
infrastructures for information, education and training, new financial and market 
instruments and the development of tools for the design and follow up of the 
evaluation. 
For the sound management of the ALTENER programme, it is essential that at 
least one person should be responsible for each sector in order to be able to 
develop sectoral strategies properly and have an overview of all activities. 
Types of post 
Officials or 
temporary 
staff 
Other 
resources A 
B 
C Manpower to 
be assigned to 
the 
management 
of the action 
Permanent 
posts 
8.5 
2.5 
4.5 Temporary 
posts 
2 END 
2 experts 
2 interim of which 
by the use of 
the existing 
resources 
within the 
DG 
6 
1.5 
2 
2 interim by recourse to 
additional 
resources or 
within the DG 
2.5 
1 
1.5 
2 END 
2 experts duration 
5 years 
10.2 Overall financial impact of the additional human resources 
The additional overall cost for administering the programme may therefore be 
estimated at: 
Officials: 
5x5 years x ECU 103 000 x 0.70 (see point 10.1) = 
Experts: (AO-1178) 
2x 5 years x ECU 120 000 = 
END: (AO-1520) 
2x 5 yearsxECU40 000 = 
TOTAL = ECU 1 802 500 
ECU 1 200 000 
ECU 400 000 
ECU 3 402 500 
21 31 
10.3 Other operating expenditure arising from the action 
Budget heading Annual amounts Method of calculation 
(no title) 
A-1300 Mission expenses, 
travel expenses and 
incidental expenditure ECU 130 000 Meetings of contractors 
for each part of the 
actions, follow-up of 
projects 
A-2510 Specific meetings 
for renewal of members of 
framework programme 
committee (four times a 
year) ECU 108 000 ECU 900 x 30 persons x 
four meetings 
Total ECU 238 000 
The total cost for the entire duration of the programme will be 238 000 x 5 = 
ECU1 190 000. 
# 
The appropriations indicated are financed from the existing allocations for the 
departments administering the programme. 
22 32 
EUROPEAN COMMISSION 
ANNEX V 
PROPOSAL FOR A COUNCIL DECISION 
adopting a 
MULTIANNUAL PROGRAMME 
FOR THE PROMOTION OF 
ENERGY EFFICIENCY 
(1998-2002) 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 130s(l) thereof, 
Having regard to the proposal from the Commission,1 
Having regard to the opinion of the Economic and Social Committee,2 
Having regard to the opinion of the Committee of the Regions,3 
Acting in accordance with the procedure laid down in Article 189c of the Treaty,4 in 
cooperation with the European Parliament, 
Whereas Article 13 Or of the Treaty states that one objective of the Community policy on 
the environment shall be to ensure a prudent and rational utilisation of natural resources; 
Having regard to Council Decision No. 736/97 of 16 December 1996 concerning a 
multiannual programme for the promotion of energy efficiency in thé Community -
SAVE II;5 
Whereas at its meeting on 29 October 1990 the Council set an objective of stabilising total 
CO2 emissions by the year 2000 at the 1990 level in the Community as a whole; whereas 
at its meetings in March and June 1997 the Council adopted as its negotiating position for 
the Kyoto meeting under the Convention on Climate Change a 7.5% reduction in 
greenhouse gas emissions by 2005 and a 15% reduction by 2010 in relation to 1990 levels; 
Whereas to achieve significant reductions in Community CO2 emissions further efforts will 
have to be made, particularly since CO2 emissions due to energy consumption are 
expected to increase by 5 to 8% between 1995 and 2000, assuming normal economic 
growth; whereas, therefore, additional measures are indispensable; 
Whereas Decision 93/389/EEC6 established a monitoring mechanism of Community C02 
and other greenhouse gas emissions; 
Whereas the Commission, in its communication of 8 February 1990 on energy and the 
environment, highlighted energy efficiency as the cornerstone of. future efforts to reduce 
the negative impact of energy on the environment; 
5 OJL 335, 24.12.1996 
6 OJL 167, 9.7.1993, p.31. 94 
Whereas improvement in the management of energy is urgently needed in order to 
contribute to the protection of the environment, to a better security of energy supply and 
to sustainable development; 
Whereas the Commission has communicated to the Council and the European Parliament, 
by means of the Green paper of 11 January 1995 and the White Paper of 13 December 
1995, its views on the future of energy policy in the Community, and the role of energy-
saving and energy efficiency measures; 
Whereas Article 130a of the Treaty provides that the Community should develop and 
pursue its actions leading to the strengthening of its economic and social cohesion, and 
that it should, in particular, reduce disparities between the levels of development of the 
various regions and the backwardness of the least-favoured regions; whereas energy 
should be integrated into that effort; 
Whereas, by Decision 91/565/EEC,7 the Council adopted a Community energy efficiency 
programme (SAVE) aimed at strengthening energy efficiency infrastructures within the 
Community; whereas that programme expired on 31 December 1995; 
Whereas the Community recognised the SAVE programme as an important element of the 
Community's C02 reduction strategy; whereas the communication of the Commission of 8 
May 1991 on the European Community's energy programming activities at regional level, 
the conclusion of the Council on this communication, and the Resolution of the European 
Parliament of 16 July 1993 stated that those activities should be pursued, amplified and 
utilised as a support for the energy strategy of the Community; whereas this initiative for 
regional actions should now be totally incorporated into a new SAVE II programme; 
Whereas, by Decision No 1110/94/EC of the European Parliament and of the Council,8 a 
fourth framework programme for actions in technological research, development and 
demonstration was established; whereas energy efficiency policy constitutes an important 
instrument for the use and promotion of the new energy technologies that the framework 
programme will establish; whereas the SAVE II programme represents a policy instrument 
which complements this programme; 
Whereas the Commission has presented to the European Parliament and the Council its 
proposals for the 5th RTD Framework Programme;9 
Whereas the SAVE II programme aims at improving energy intensity of final consumption 
by a further one percentage point per annum over that which would have been otherwise 
attained; 
Whereas at its meeting on 15 on 16 December 1994 the Council stated that the target of 
stabilising C02 emissions can only be achieved by a co-ordinated package of measures to 
import energy efficiency and the rational use of energy which are based on supply and 
demand at all levels of energy production, conversion, transport and consumption and to 
7 OJL 307, 8.11.1991, p.34. 
8 OJL 126, 18.5.1994, p.l 
9 COM(97) 95 
exploit renewable energies, and that local energy management programmes are amongst 
these measures; 
Whereas, in its opinion on the Commission's Green Paper on energy policy, the European 
Parliament called for the formulation of objectives and a common programme for energy 
efficiency and savings compatible with the objectives concerning the emissions of 
greenhouse gases as agreed in Rio de Janeiro (1992) and Berlin (1995), called for a SAVE 
II programme and requested that the Commission clarify the role which it intends to play 
in energy savings and efficiency by creating practical projects; 
Whereas improved energy efficiency will have a positive impact on both the environment 
and the security of energy supplies which are global in nature; whereas a high level of 
international cooperation is needed to produce the most positive results; 
Whereas between 180 and 200 million tonnes of C02 emissions could be avoided by the 
year 2000 by an improvement of 5 % in the energy intensity of final demand additional to 
the conventional expectations; 
Whereas the SAVE II programme is an important and necessary instrument for promoting 
increased energy efficiency; 
Whereas in order to prevent duplication and to achieve synergy, care should be taken in 
implementing the programme to ensure close cooperation with other Community 
programmes linked directly with energy efficiency promotion; 
Whereas it is politically and economically desirable to open the SAVE II programme to 
the associated Central and Eastern European Countries in accordance with the 
conclusions of the European Council meeting in Copenhagen in June 1994 and as outlined 
in the Commission communication to the Council on the subject in May 1994, and to the 
associated Mediterranean Countries and Cyprus; 
Whereas, in order to ensure that Community aid is used efficiently, the Commission must 
ensure that projects are subject to thorough prior appraisal and shall systematically 
monitor and evaluate the progress and results of supported projects; 
Whereas a multiannual programme of action in the energy sector is being implemented, 
HAS ADOPTED THIS DECISION: 
Article 1 
1. The Community shall implement, within the Energy Framework Programme, a 
multiannual specific programme for the preparation and implementation of schemes and 
measures in a cost-effective manner in order to promote energy efficiency within the 
Community. The general overall objectives of this programme shall be: 
(a) to stimulate energy efficiency measures in all sectors; 
(b) to encourage investments in energy conservation by private and public consumers 
and by industry; 
(c) to create the conditions for improving the energy intensity of final consumption. 
36 
2. Community financing shall be provided under the 'SAVE II programme to 
promote energy efficiency in the Community', hereafter referred to as 'the programme', 
for actions which fall within the objectives of this Decision. 
Article 2 
Under the programme, financing shall be provided for the following categories of energy 
efficiency schemes and measures: 
(a) studies and other related measures designed to implement and supplement 
Community schemes (such as voluntary agreements, mandates to standardisation bodies, 
cooperative procurements and legislation) for improving energy efficiency, studies 
concerning the effects of energy pricing on energy efficiency, and studies with a view to 
establishing energy efficiency as a criterion within Community programmes; 
(b) targeted sectoral pilot schemes aimed at speeding up investment in energy 
efficiency and/or improving energy use patterns, to be carried out by public and private 
firms or organisations and by existing Community-wide networks or temporary 
Community-wide groupings of organisations and/or firms set up to carry out these 
schemes; 
(c) measures proposed by the Commission for fostering exchanges of experience 
aimed at improving coordination between international, Community, national, regional 
and local activities, using appropriate means of disseminating information; 
(d) measures such as those described in (c) above but proposed by entities other than 
the Commission; 
(e) monitoring energy efficiency progress in the Community and in each Member 
State; ongoing evaluation and monitoring of the schemes and measures carried out under 
the Programme; 
(f) specific measures to improve energy management at regional and urban level with 
a view to achieving greater cohesion between Member States and regions in the field of 
energy efficiency. 
Article 3 
1. All the costs relating to the schemes and measures referred to in Article 2 (a), (c) 
and (e) shall be borne by the general budget of the European Communities. 
2. The level of funding for the schemes and measures referred to in Article 2 (b), (d) 
and (f) shall be set at a maximum of 50 % of their total cost. 
3. The balance of the funding of the schemes and measures referred to in Article 2 
(b), (d) and (f) may be made up from either public or private sources or from a 
combination of the two. 
Article 4 
1. Implementation of the programme shall begin on 1 January 1998 and terminate on 
31 December 2002. 
37 
2. The annual appropriations shall be authorised by the budgetary authority within 
the limits of the financial perspectives. 
Article 5 
1. The Commission shall be responsible for the financial execution and 
implementation of the programme. The Commission shall also ensure that action under 
this programme is subject to prior appraisal, monitoring and subsequent evaluation, which, 
on completion of the project, shall include assessment of impact, implementation and 
whether their original objectives have been achieved. 
« 
2. The selected beneficiaries shall submit reports to the Commission on a six-monthly 
basis and on completion. 
3. The conditions and guidelines to be applied for the support of all actions and 
measures referred to in Article 2 shall be defined each year taking into account: 
the cost effectiveness criteria, the savings potential and environmental impact, in 
particular the reduction of CO2 emissions, 
the list of priorities referred to in Article 7, 
the cohesion of Member States in the field of energy efficiency. 
The Committee referred to in Article 6 shall assist the Commission in defining these 
conditions and guidelines. 
Article 6 
The Commission shall be assisted, for the purposes of implementing the programme, by 
the Committee referred to in Article 4 of the Council Decision concerning a multiannual 
framework programme for action in the energy sector. 
Article 7 
The Commission shall draw up annually a list of priorities for funding under the 
programme. This list shall take into account complementarity between the SAVE II 
programme and the national programmes on the basis of annual information in a summary 
form supplied by each Member State. Priority shall be given to those areas where such 
complementarity is greatest. 
The committee referred to in Article 6 shall assist the Commission in defining the list of 
priorities. 
Article 8 
1. After each year of the programme, the Commission shall present to the European 
Parliament and to the Council a progress report together with proposals concerning any 
changes in the guidelines, defined in accordance with Article 5(3), which may prove 
necessary in the light of the previous year's results. 
2. After the third year of the programme, the Commission shall present a report to 
the European Parliament and to the Council on the energy efficiency measures taken at 
Community and Member State level and on the results achieved, with particular reference 
38 
to the objectives outlined in Article 1. The report shall be accompanied by proposals for 
any amendments to the programme which may prove necessary in the light of those 
results. 
3. On expiry of the programme, the Commission shall make an overall assessment of 
the results achieved by applying this Decision, and of the coherence between national and 
Community measures. It shall present a report thereon to the European Parliament, the 
Council, the Economic and Social Committee and the Committee of the Regions, stating 
in particular how far the objective outlined in Article 1 has been achieved. 
Article 9 
The programme shall be open to the participation of associated Central and Eastern 
European countries in accordance with the conditions, including financial arrangements, 
agreed to in the Additional Protocols to the association Agreements, concerning 
participation in Community programmes. This programme shall be open to the 
participation of Cyprus on the basis of additional appropriations in accordance with the 
same rules as apply to the EFTA countries following procedures to be agreed with the 
countries in question. 
Article 10 
This Decision cancels and replaces Council Decision (EC) No. 736/97 of 16 December 
1996. 
Article 11 
This Decision is addressed to the Member States, 
Done at Brussels, For the Council 
The President 
39 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
Energy Efficiency SAVE - Renewed efforts to achieve greater energy efficiency in the 
European Union. 
2. BUDGET HEADINGJNVOLVED 
B4.1031 
3. LEGAL BASIS 
Article 130s(l) of the EC Treaty. 
Council Decision 91/565/EC of 29 October 1991 (OJ L 307, 8/11/1991, p.34). 
SAVE I Programme. 
Council Decision 96/737/EC of 16 December 1996 (OJ L 335, 24/12/1996, p.50). 
SAVE II Programme. 
Proposal for a Council Decision concerning a framework programme for action in 
the energy sector (1998-2002). 
4. DESCRIPTION OF OPERATION 
4.1 General objective 
The general objective is to give added force to the Member States' energy 
efficiency schemes with a view to achieving - by 2010 - final energy savings 
of 100 Mtoe/year. In relation to the 1990 figures, this represents a reduction 
of 12% in final energy consumption and of more than 15% in CO2 emissions. 
In the absence of an appropriate fiscal measure adopted at EU level, the 
Energy Efficiency SAVE Programme (part of the Framework Programme) 
remains one of the few Community instruments which can still significantly 
help cut CO2 emissions by 2010. Its contribution will depend directly on the 
vigour with which the programme is implemented. As, moreover, the 
regulations introduced under the SAVE Programme will be kept to an 
essential minimum, other types of measure under the Programme will have to 
be given added force. For these reasons, and in view of the EU's 
forthcoming enlargement, a significantly greater budget must be allocated to 
achieving the Programme's objectives. 
Implementation of SAVE I and II has shown that the effectiveness of these 
measures increased with their proximity to the consumer. 
100 
4.2 Period covered 
Five years, from 1 January 1998 to 31 December 2002. 
5. CLASSIFICATION OF EXPENDITURE OR REVENUE 
DNO/CD 
6. TYPE OF EXPENDITURE OR REVENUE 
The programme will consist of six types of measure: 
(a) studies and other related measures designed to implement and supplement 
Community schemes (such as voluntary agreements, mandates given to 
standardisation bodies, cooperative procurements and legislation) for 
improving energy efficiency; studies concerning the effects of energy 
pricing on energy efficiency; studies with a view to establishing energy 
efficiency as a criterion within Community programmes; 
(b) targeted sectoral pilot schemes aimed at speeding up investment in energy 
efficiency and/or improving energy use patterns, to be carried out by public 
and private firms or organisations and by existing Community-wide 
networks or temporary Community-wide groupings of organisations 
and/or firms set up to carry out these schemes; 
(c) measures proposed by the Commission for fostering exchanges of 
experience aimed at improving coordination between international, 
Community, national, regional and local activities, using appropriate means 
of disseminating information; 
(d) measures such as those described in (c) above but proposed by entities 
other than the Commission, e.g. universities, public and private bodies, 
energy agencies, consultants, etc.; 
(e) monitoring energy efficiency progress in the Community and in each 
Member State; ongoing evaluation and monitoring of the schemes and 
measures carried out under the Programme; 
(f) specific measures to improve energy management at regional and urban 
level with a view to achieving greater cohesion between Member States 
and regions in the field of energy efficiency. 
100% subsidies for the costs of the measures described in paragraphs 4(a), (c) and 
(e). 
Cofinancing contributions ranging from 30% to 50% for measures to support the 
Member States as described in paragraphs 4(b), (d) and (f). 
The measures concerned will be covered by a multiannual indicative programme 
under which priorities and action plans will be decided annually. 
01 
The plans will be submitted to an advisory committee made up of representatives of 
the Member States. 
All financing will be the subject of a contract between the Commission and the co­
ordinator or person responsible for the measure being financed. 
7. FINANCIAL IMPACT 
The proposed amounts will be subject to the limits set by the financial perspective 
currently in force. When the next financial perspective is drawn up, the financing of 
priority measures to promote energy efficiency might be reconsidered. 
The proposed indicative budget is 68.4 MECU. 
7.1 Method used to calculate the cost of the measure 
Global climate change poses a major challenge to us all. In preparation for the 3rd 
Conference of the Parties in Framework Convention of the United Nations on Climate 
Change in Kyoto in December 1997, the Council adopted a negotiating position for 
industrialised countries for a 15% reduction in emissions of the principal greenhouse gases 
by the year 2010 and at least 7.5% by the year 2005 compared with 1990 levels. The 
present trend in emissions, based on the application of current policies and measures, 
indicates an increase in CO2 emissions of approximately 8% by 2010, which means that a 
reduction in real terms of 23 % may well be required. Major effort in several policy areas 
will be needed, in particular as regards energy production and use, as outlined in a recent 
Commission Communication on Climate Change - The EU Approach for Kyoto. SAVE II 
stands for Specific Actions for Vigorous Energy Efficiency. It was approved by the 
European Council on December 16, 1996 (96/73 7/EEC) as one of the three main Union-
wide programmes to promote energy efficiency. The other two programmes, JOULE and 
THERMIE, are technology-oriented, representing the spectrum from research through to 
demonstration and dissemination of energy technologies, of which energy efficiency is but 
one of the technology areas promoted. SAVE is the only Community programme solely 
dedicated to improving energy efficiency. 
7.1.1. Studies and other related measures designed to implement and supplement 
Community schemes (such as voluntary agreements, mandates to 
standardisation bodies, cooperative procurements and legislation) for 
improving energy efficiency, studies concerning the effects of energy 
pricing on energy efficiency, and studies with a view to establishing energy 
efficiency as a criterion within Community programmes. 
Studies are required to prepare the technical dossiers which are necessary 
for developing effective energy efficiency standards and legislative activity, 
if appropriate. A certain amount of ongoing work in the area of labelling 
and equipment standards has been completed but the effort should be 
continued. The savings arising from the Boiler Directive (92/42/EEC) 
alone could be as much as ECU 1 billion per year (with annual energy 
savings of over 11 million tonnes of oil equivalent to the year 2010 for the 
twelve Member States). The budget amounts given in the table below are 
estimations based on the experience of recent years. It is estimated that 30 
studies, each costing ECU 200 000 on average, are needed to continue 
SAVE activities in the following areas: 
102 
• Buildings, Transport, Demand side Management 
• Combined Heat and Power 
• Appliance labelling and European Community energy end-use efficiency 
standards. 
• Voluntary Agreements. 
• International energy end-use efficiency standards . 
• Studies leading to other legislative measures 
• Measures aimed at establishing energy efficiency as a criterion within 
existing EU strategic programmes. 
This is an activity which has evolved as the Community's programmes have evolved. 
Programmes such as VALOREN (now included within INTERREG) which was funded 
by the European Development Fund have an enormous potential of energy efficiency as an 
engine for regional development. This very positive experience should be built upon. 
7.1.2. Targeted sectoral pilot schemes. 
By the end of 1997, SAVE will have supported approximately 350 
sectoral pilot schemes. The main areas of interest were education and 
training, information, integrated resource planning, transport, buildings, 
cogeneration and monitoring and targeting. This activity will include more 
international projects where several Member States will be involved. As the 
annual budget of SAVE is limited, experience shows that despite their 
good quality only 20% of the proposals are likely to be approved each 
year. The average cost of a pilot scheme, based on the experience of the 
last six years, is ECU 100 000. For targeted schemes in which more than 
one Member State participates, this cost will be increased: the average cost 
of each project is expected to be ECU 200 000. For a total five-year 
budget of ECU 28 million, 140 schemes may be supported in all Member 
States or 9 pilot schemes per Member State. 
7.1.3. Dissemination of information. 
Information to the consumer is an important element in raising awareness 
of improvements in energy consumption behaviour. Although most SAVE 
projects are included to the CORDIS database which is open, free of 
charge, through the world wide web to the general public, more 
information activities should be undertaken to improve dissemination of the 
results of programme activities and to make Member States more aware of 
energy efficiency issues. This action would be closely co-ordinated with 
the results of all the initiatives developed under the SAVE programme. In 
the light of the experience gained in previous years and the need for 
dissemination and information activities in all Member States, the estimated 
budget is ECU 9.1 million, of which roughly 45% is for activities proposed 
by the Commission (conferences, web sites, databases, contractors 
meetings, publications etc.) and 55% for information activities proposed 
103 
and co-financed by third parties such as national energy agencies, 
consultants, universities etc. 
7.1.4. Monitoring energy efficiency progress at national and EU level and 
ongoing evaluation and monitoring of the schemes and measures carried 
out under the programme. 
A number of important analytical tools have been developed under SAVE . 
These include energy indicators (useful for comparing the Member States' 
energy efficiency in different sectors), the extension of the MURE II model 
to policy measures in the field of energy efficiency, a database on the 
SAVE and Member State initiatives and a user-friendly method of 
disaggregating energy intensity information in such a way as to highlight 
the advances attributable to energy efficiency alone. All these activities 
should be continued and expanded to include the Central and Eastern 
European countries and Cyprus with a view to monitoring the progress of 
energy efficiency in Europe. This will be very important in the context of 
the EU1 s environmental commitments. The evaluation of SAVE pilot 
schemes and of the programme as a whole must be given priority over the 
next few years in order to satisfy requirements of the other EU bodies. 
Further development and updating of the above tools will cost about 
ECU 200 000 per year, to which should be added the cost of monitoring 
energy efficiency progress in the third countries awaiting accession. This 
monitoring of energy efficiency progress together with the evaluation of all 
SAVE activities is expected to cost ECU 2.5 million over the next five 
years. 
7.1.5. Specific measures to improve energy management at regional and urban 
level and to promote greater cohesion between Member States and regions 
in the field of energy efficiency. 
This scheme is designed to assist local authorities in regions, islands and 
urban areas in setting up energy management agencies whose main role will 
be to implement regional and local policies for optimum energy use. The 
programme thus helps integrate energy policy into local plans for 
sustainable development and contributes to local and regional 
environmental efforts. Action to set up local energy agencies and to 
improve collaboration between local, regional and national authorities on 
energy issues should be continued in order to make local authorities more 
aware of these issues and to improve the link between energy efficiency 
and environmental protection. Experience in previous years indicates that 
it will cost about ECU 175 000 to maintain a local energy agency for three 
years. This means that, with a budget of ECU 22.8 million, 130 new local 
agencies will be created - an average of 9 local agencies per Member State. 
There is potential in the European Union for setting up 1 600 local energy 
management agencies in administrative units with a population of over 
100 000. To date the Commission has contributed to the creation of 140 
such agencies. This phase should be considered as a pilot phase: the local 
benefits are already starting to be acknowledged, and increasing numbers 
. of local authorities are keen to set up their own local energy management 
agency. 
104 
7.2 Breakdown of the costs (ECU million) 
The amount will be fixed annually by the budgetary authority. 
1 
2 
3 
4 
5 
6 
7 Art. 2 activities 
studies and other measures designed to 
implement and supplement Community 
schemes for improving efficiency 
targeted sectoral pilot schemes 
dissemination of information (proposed by 
the Commission) 
dissemination of information (proposed by 
third parties) 
monitoring energy efficiency progress in the 
Community and in each Member State; 
ongoing monitoring and evaluation of the 
schemes and measures carried out under the 
Programme 
specific measures to improve energy 
management at regional and urban level with 
a view to achieving greater coherence 
between Member States and regions in the 
field of energy efficiency 
Total 1998 
1.0 
5.0 
1.0 
1.0 
0.5 
4.0 
12 
,.5 1999 2000 
1.0 
5.0 
1.0 
1.0 
0.5 
4.3 
12.8 2001 
1.4 
5.5 
1.0 
1.0 
0.5 
4.5 
13.9 2002 
1.3 
6.2 
0.6 
• 1.0 
0.5 
5.0 
14.6 Total 
1.3 
6.3 
0.5 
1.0 
0.5 
5.0 
14.6 6.0 
28.0 
4.1 
5.0 
2.5 
22.8 
68.4 
7.3. Operational expenses for studies, experts, meetings etc. included in part B 
ECU million 
Breakdown Budget 
- Studies 0.050 
(specified in Article 2(a) )* 
- Meetings of experts and assessors (for all measures 0.025 
under Article 2) 0.025 
- Conferences and seminars 0.150 
(measures specified by...) 
- Information and publications 
TOTAL 0.250 
7.4. Schedule of appropriations for commitments 
ECU million 
1998 
12.5 1999 
12.8 2000 
13.9 2001 
14.6 20002 
14.6 TOTAL 
68.4 
05 
8. ANTI-FRAUD MEASURES PROVIDED FOR (AND RESULTS OF THEIR 
IMPLEMENTATION 
The contracts awarded are paid for on the basis of actual expenditure and after 
verification (except for study fees, where a fixed amount is paid on the basis of the 
accepted results). 
9. COST-EFFECTIVENESS ANALYSIS 
9.1 Specific aims of the action to be taken under the Energy Framework 
Programme (1998-2002) : Energy efficiency SAVE 
The SAVE Programme aims at improving energy intensity of final 
consumption in the EU by a further one percentage point per annum over that 
which would have been otherwise attained; 
Who is affected by this action 
Public and private bodies; universities; national, regional and urban agencies 
and bodies for promoting energy efficiency; all sectors involved in promoting 
energy efficiency (e.g. consultants, manufacturers of household electrical 
appliances, central heating suppliers, architects) and, by extension, the entire 
population of the EU. 
9.2 Justification for the action 
Costs 
In order to achieve permanent annual energy savings of 1 tonne oil equivalent 
(toe) an average capital outlay of ECU 1 000 is required. To save 100 Mtoe/year 
will thus require an investment of ECU 100 billion. Financing such an amount 
from the budget of the EU and its Member States is out of the question. The only 
solution is joint financing by all the economic operators acting within a 
Community framework. The Commission will cofinance only those schemes 
which clearly show evidence of additionality. 
Derived effects 
To be supported by SAVE, projects must: 
help improve energy intensity; 
make a significant contribution to protecting the environment and 
combating the greenhouse effect; 
have a stabilising effect on world energy prices; 
improve the EU's balance of payments; 
make EU industry more competitive on the world market; 
improve the EU's security of supply and reduce its vulnerability to energy 
market disturbances; 
106 
help complete the internal market and increase economic and social 
cohesion. 
Furthermore, the availability of highly energy-efficient technologies means this 
technology can be transferred to third countries, thus helping improve the 
management of resources and provide better protection for the world 
environment. 
The legislative and regulatory approach yields the greatest multiplier effect. A 
large multiplier effect is also achieved by the introduction of performance 
standards. In the case of other jointly financed measures, the multiplier effect is at 
least 2 or 3. 
9.3 Monitoring and evaluation 
Selected performance indicators 
Reduction in CO2 emissions, 
Improved energy intensity in the Community, 
The number of measures proposed, accepted and translated into action at 
national level, 
The number of man days per year allocated to training, 
The number of software packages and data bases pooled, 
The number of conferences, seminars, newsletters and other publications. 
Assessment procedures and schedule 
The Commission will constantly monitor the changes in energy intensity in 
the Member States and report regularly to the Council. 
The Commission will also refer constantly to the SAVE Advisory Committee, 
which will be made up of representatives of the Member States and meet 
three or four times a year. 
The Commission will have an assessment drawn up by a team of outside 
experts. Their report will be sent to the Council and European Parliament, in 
accordance with Article 7 of the attached proposal for a Council Decision. 
The assessment must also consider: 
the past and present Programme guidelines, with a view to 
identifying any scope for improvement; 
the relationships between the means deployed and the results 
obtained; 
107 
the actual and potential complementarities between these 
programmes and the other instruments available. 
10. ADMINISTRATIVE EXPENDITURE 
The actual mobilisation of the necessary administrative resources will be triggered 
by the annual Commission Decision on the allocation of resources, taking account 
of such factors as staffing levels and any additional financing granted by the 
budgetary authority. 
10.1 Impact on the number of jobs 
SAVE is a programme dealing with the EU's energy efficiency strategy, and it is 
the only Community programme solely dedicated to improving energy efficiency. 
Officials handling contracts for pilot schemes or studies will, at the same time, be 
drafting communications and legislative proposals concerning the energy efficiency 
of household appliances and boilers, Integrated Resource Planning, Combined 
Heat and Power etc. These procedures and the discussion of legislative proposals 
within all EU institutions take time: it is estimated that 30% of the time is spent on 
drafting and following up the above measures, while the remaining 70% is spent 
managing SAVE contracts (in October 1997 there were 162 current contracts). 
SAVE has activities in ten sectors: buildings, transport, industry, information, 
training, Demand Side Management, Third Party Financing, household appliances, 
Combined Heat and Power and energy efficiency policy. There should be one 
person dealing with each sector and responsible for energy efficiency strategy and 
for following up the related activities. 
Type of post 
Officials or A 
temporary B 
staff C 
Other resources Staff to be employed in 
managing the measure 
permanent 
posts 
8.0 
3.0 
4.0 temporary 
posts 
3.0 seconded 
nat. experts 
2.0 experts 
3.0 temp. of which 
using the existing 
resources of the 
DG/department 
concerned 
6.5 
2.0 
3.0 
3.0 seconded 
national experts 
1.5 temp. using 
additional 
resources 
1.5 
1.0 
1.0 
2.0 
experts 
1.5 temp. Duration 
5 years 
5 years 
108 
10.2 Overall financial impact of additional human resources 
The total additional cost of administering the Programme would thus be: 
ECU 
Officials: 
3.5 x 5 years x ECU 103 000 x 0,70 (see par. 10.1) = 1 261 750 
Experts (A0-1178): 
2x 5 years x ECU 120 000 = 
Temp.(A0-1175): 
1.5x5 years x ECU 80 000 = 
Total 1 200 000 
600 000 
3 061 750 
10.3 Other operational expenses arising from the measure 
Budget heading Amounts per year Method of calculation 
(N° and title) (ECU million) 
A-1300 Mission and travel 0.100 Following up contracts*, 
expenses and other incidental local agencies**, 
expenditure 
contractors' meetings, 
A-2510 Special meetings on participation in information 
"energy efficiency" (four activities organised by SAVE 
times a year) and meetings of etc.*** 
the "labelling" committee 
(four times a year) within the ECU 900 per person x 30 
Framework Programme persons x 8 meetings 
Committee 
0.216 
Total 0.316 MECU 
* In October 1997 there were 162 current SAVE contracts. 
** Up to October 1997, 140 local agencies were subsidised by SAVE 
*** SAVE must inform interested parties as to the legislative measures adopted 
concerning energy efficiency (Directives on labelling, the energy efficiency of household 
appliances, the new strategy on CHP, etc.) 
The total cost for the entire duration of the Programme will be 0.316 x 5 yrs = 
ECU 1.58 milliion 
The amounts indicated are to be financed from the budget already allocated to the 
departments managing the programme. 
109 
EUROPEAN COMMISSION 
ANNEX VI 
PROPOSAL FOR A COUNCIL DECISION 
adopting a 
MULTIANNUAL PROGRAMME OF 
TECHNOLOGICAL ACTIONS PROMOTING THE 
CLEAN AND EFFICIENT USE 
OF SOLID FUELS 
(1998-2002) 
110 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, and in particular Article 235 
thereof; 
Having regard to the proposal from the Commission1; 
Having regard to the opinion of the European Parliament2 
Having regard to the opinion of the Economic and Social Committee; 
Having regard to the opinion of the European Coal and Steel Community Consultative Committee; 
Having regard to the opinion of the Committee of the Regions; 
Having regard to the White Paper on Energy indicating the energy policy objectives of economic 
competitiveness, environmental control, security of supply and maintenance of employment; 
Whereas solid fuels are available in the Community and the ready, abundant, diverse sources of hard 
coal traded world-wide ensure that such fuels are and will remain a low-cost energy source; 
Whereas the promotion of clean and efficient technologies for solid fuels contributes to the 
diversification of primary energy resources and to the balance of Community energy policy 
objectives; 
Whereas solid fuels will be increasingly utilised both in developed and emerging areas of the world, 
thereby contributing to emissions of pollutants and C02; whereas every effort should be made to 
ameliorate such emissions by the promotion of clean and efficient technologies and the application of 
BAT (Best Available Technologies) to existing and new plant using solid fuels; 
Whereas the manufacture and supply of equipment for the clean utilisation of coal, lignite and other 
forms of solid fuels, for use both within and outside the European Community, can contribute to the 
maintenance of employment; 
Whereas, pursuant to Article 13 Or of the Treaty on the European Union, action by the Community 
relating to the environment should improve the quality of the environment and ensure a prudent and 
rational utilization of natural resources, objectives which are furthered by the implementation of 
clean coal technologies; 
Whereas the promotion of more efficient clean solid fuel technologies can make a significant 
contribution to the reduction of polluting emissions arising from the traditional use of fossil fuels at 
European Union level; whereas use of cleaner technologies contributes to the objectives of the 
Community strategy to combat acidification ;3 
1 OJNo 
2 OJNo 
3 COM(97)88 final, 12.3.97 
111 
Whereas the promotion of more efficient clean solid fuel technologies will contribute to the reduction 
of greenhouse gases and the danger of global climate change; whereas wide-ranging co-operation is 
therefore desirable in order to obtain significant results; 
Whereas, since the Treaty establishing the European Economic Community does not provide for 
other powers to cover the energy aspects of the programme referred to in Article 2 below, Article 
235 of the Treaty should be invoked; 
Whereas Council has adopted a White Paper defining the main lines of new Community energy 
policy objectives for coherence and convergence of the policies of the Member States; whereas this 
White Paper states that the contribution of new clean solid fuel technologies can enhance the use of a 
wide variety of fuels, so that they can continue to play a significant part in the overall energy balance 
sheet but with an improved environmental image; 
Whereas the promotion and exploitation of clean solid fuel technologies offers economic advantages 
in terms of employment opportunities with companies in the Union operating on a world-wide basis; 
Whereas to sustain a cleaner, environment, advanced clean solid fuel technologies should be 
developed to achieve improved BAT (Best Available Technologies) at costs which can be afforded; 
Whereas certain countries which are expected to become members of the European Union in the 
coming years are very strongly dependent on the production and use of solid fuels to meet their 
energy requirements; whereas those countries will need to modernise and improve their energy 
technologies in order to comply with European Union legislation relating to the protection of the 
environment; 
Whereas a number of Member States have their own clean solid fuel technology programmes; 
whereas there should be an opportunity for those programmes to co-ordinate with each other and 
with the relevant European Union programmes; 
Whereas it is also important to promote the uptake of technologies developed with financing from 
the specific Research and Technical Development non-nuclear energy programme; 
Whereas a multiannual Framework Programme for Actions in the energy field has been established; 
Whereas the European Parliament and EU industry have indicated their keen interest in pursuing a 
policy of developing clean coal technologies for use in the Union and elsewhere in the world; 
Whereas the Amsterdam European Council highlighted the importance of solid fuel Research and 
Development by its request that the research in that field currently supported under the Treaty 
establishing the European Coal and Steel Community should be continued after the* expiry of the 
Treaty in 2002; 
i 
Whereas there is a need to transfer to the industry the results of the research funded under the 
European Coal and Steel Community, the need for whose continuation has been acknowledged by 
the Amsterdam European Council; 
The term 'solid fuels' covers anthracite, coal, lignite, peat, emulsion and the heavy fraction of petroleum products. 
2 
119 
JL JL A_< 
Whereas the promotion, demonstration and exploitation of clean solid fuel technologies throughout 
the Community are likely to strengthen its economic and social cohesion, as called for by Article 
130a of the Treaty; 
Whereas, to this end, it is appropriate to take account of the Community's indicative objectives and 
make provision for resources to further the attainment of those objectives, taking into consideration 
the particular conditions in each Member State; 
Whereas provision should be made for a five-year programme; 
HAS ADOPTED THIS DECISION: 
Article 1 
Member States shall endeavour to contribute in their energy policies to the promotion of clean solid 
fuel technologies, where appropriate, so as to ensure that the best available technologies (BAT) are 
used in order to limit emissions from solid fuel use, including carbon dioxide emissions. Account 
shall be taken of the Community's indicative objectives relating to clean "coal technologies. These 
objectives are to be reviewed with the Energy Committee (see Article 7.2) on a year by year basis. 
Article 2 
Within the Framework Programme for Energy, the Community shall support a series of actions to 
promote the exploitation of clean solid fuel technologies within the context of the specific 
programme CARNOT (actions for greater penetration and exploitation of clean solid fuel 
technologies), hereinafter referred to as 'the programme' 
The programme shall last for five years, from 1 January 1998 to 31 December 2002 
The annual appropriations are authorised by the budgetary authority within the ceiling of the financial 
perspectives. 
Article 3 
Two categories of actions on clean solid fuel technologies shall be financed under the programme, 
namely: 
a) Measures to foster the creation of an information network aimed at promoting better market 
and technical information between national, Community and international activities through the 
establishment of appropriate means for exchanging information, helping to remove barriers and 
evaluating the impact of the various actions provided for in this article: 
b) Measures to foster industrial strategic cooperation, such as business workshops and seminars, 
industrial on-site visits, studies, evaluations and concertation groupings, aimed at promoting the 
113 
industrial exploitation of clean technologies for energy purposes, in particular heat and power 
production. This will include the promotion of exports of European clean solid fuel technology. 
Article 4 
All costs relating to the actions referred to in Article 3 a) shall be borne by the Community. 
The level of funding for the actions referred to in Article 3 b) shall be between 30 and 50% of their 
total cost. 
The balance of the funding of the actions referred to in Article 3 b) may be made up from either 
public or private sources or from a combination of the two. 
Article 5 
The Commission shall establish guidelines for the support measures referred to in Article 3 b) each 
year, in consultation with the committee provided for in Article 7.1. 
The proposed initiatives referred to in Article 3 and the list of bodies which are to implement them 
shall be submitted annually by the Member States to the Commission, which shall decide on the level 
and conditions of Community funding according to the procedure provided for in Article 7. The 
Commission shall sign contracts relating to the support measures with those bodies. 
Article 6 
The Commission shall be responsible for the implementation of the programme. 
For the implementation of the actions referred to in Article 3 a) and b) the Commission shall apply 
the procedure laid down in Article 7. 
Article 7 
The Commission shall be assisted by the Committee referred to in article 4 of the Council decision 
setting up a multiannual Energy Framework Programme. 
Article 8 
1. During the third year of the programme, the Commission shall present a report to the 
European Parliament and to the Council on the results achieved. The report shall be accompanied by 
proposals for any amendments which might be necessary in the light of these results. 
2. On expiry of the programme, the Commission shall assess the results obtained, the 
application of this Decision and the consistency of national and Community actions. It shall present a 
report thereon to the European Parliament, the Council, the Economic and Social Committee and the 
Committee of the Regions. 
114 
Article 9 
The programme shall be open to associated Central and East European countries in accordance with 
the conditions, including financial arrangements, agreed on in the Additional Protocols to the 
Association Agreements, for participation in Community programmes. The programme shall be open 
to Cyprus on the basis of additional appropriations in accordance with the same rules as those 
applied to the EFTA countries following procedures to be agreed on with the countries concerned. 
Article 10 
This Decision is addressed to the Member States 
Done at Brussels, 
115 
FINANCIAL STATEMENT 
1. Title of the operation 
Programme of technological actions promoting the clean use of solid fuels.4 
2. Budget heading 
B4-1004 
3. Legal basis 
Proposal for a Council Decision adopting a framework programme for actions in the energy 
sector (1998-2002). 
4. Description of the action 
4.1. General objective 
Actions to promote the industrial penetration of clean and efficient technologies for 
coal utilisation are the means whereby coal can make an important contribution to the 
objectives of EU energy policy. 
- through its contribution to security of supply and the competitiveness at European 
level of a primary energy source which accounts for 30% of electricity production, 
and diversification of resources at low and stable prices; 
- through the established potential of a 25% reduction in CO2 emissions from power 
stations through increased efficiency; 
- through its contribution to Community action to combat acidification and other 
pollutants. 
A Community action to promote clean coal will complement the incorporation into the 
Treaties of the specific coal provisions of the ECSC Treaty and help the CEEC 
applicants to adapt to the environmental standards of the Union. 
This action will also enable the results of RTD supported by the European Coal and 
Steel Community (ECSC) technical research programme or by national RTD 
programmes to be applied in industry. The new programme does hot provide for any 
RTD actions as such, as these are already covered by the abovementioned programmes. 
4.2 Period covered 
5 years from 1 January 1998 to 31 December 2002. 
5. Classification of expenditure 
NCE/DA 
116 
6. Type of expenditure or revenue 
The programme will be made up of two categories of actions: 
a) Measures leading to the creation of an information network aimed at promoting commercial 
opportunities and technical information among national, Community or international 
activities. 
b) Measures to foster industrial strategic cooperation, such as business workshops and 
seminars, industrial on-site visits, studies, evaluations and concertation groupings, aiming at 
promoting the industrial exploitation of clean coal technologies, including the promotion of 
exports of European technology. 
100% funding for actions described in point a). 
Up to 50% for cofiinding for actions in point b). 
7. Financial impact 
7.1 Method of calculating total cost of operation 
The amount will be fixed annually by the budgetary authority. 
The proposed amount is ECU 4.10 million for the entire programme. 
It breaks down as follows: 
Horizontal actions 
measures to stimulate the creation of an information network with the aim 
of obtaining better information on the market and technologies. The 
necessary information could be incorporated into data bases which will be 
available for example on the Internet. Consideration will be given to one 
member of the network per Member State, which at the same time would 
play the role of server for the network and disseminate the information. 
This network would be coordinated with other existing networks, such as 
the Relay Centres or the OPET. ECU 1.54 million 
measures such as the organisation of workshops, conferences on the 
funding of clean coal technologies and conferences whose aim is to 
disseminate information on such technologies. Consideration will be given 
to ten market studies (for the following technologies: GICC, 
Ultrasupercritique, NOx systems, SOx systems, atmospheric circulating 
fluidised bed, pressurised circulating fluidised bed, pressurised stationary 
fluidised bed, low-cost pulverised coal, among others) as well as eight 
business workshops of a technical, economic and financial nature to 
facilitate the use of the technologies. Also, the possibility of supporting 15 
feasibility studies for various specific projects of the type mentioned above 
is being kept open. In all these actions, the "market in third countries" 
element will be a priority factor. 
actions to promote exports of clean coal combustion technologies. These 
actions could cover activities such as those described above as well as, 
workshops aimed at identifying opportunities for international cooperation 
and possible obstacles to investments in advanced technologies, at the level 
7 ECU 2.56 million 
117 
of both energy efficiency and control of emissions. Consideration will be 
given to 4 and 7 industrial missions in third countries and the EU 
respectively. For each of these missions, some 30 businessmen will 
establish contact and visit existing installations, thus facilitating 
professional relations and the decision-making process. The actions 
mentioned here will cover all coordination expenses as well as, in the case 
of third country missions in the EU, a part Of the cost of travelling on 
Community territory. 
7.2 Itemised breakdown Tin million ECU) 
1998 1999 2000 2001 2002 Total 
Measures leading to the 
creation of an 
information network 
Promotion measures 
TOTAL 0.3 0.31 0.31 0.31 0.31 1.54 
0.50 .0.51 0.51 0.52 0.53 2.56 
0.80 0.81 0.82 0.83 0.84 4.10 
8. Fraud prevention measures; results of measures taken * 
The contracts awarded are paid on the basis of actual expenditure and after verification (with the 
exception of study costs which are flat-rate and paid on the basis of the results accepted). 
9. Elements of cost-effectiveness analysis 
9.1. Specific objectives of the action to be carried out under the Energy Framework 
Programme (1998-2002) 
To complement action by the Member States and industry so as help achieve the Community 
objective of reducing greenhouse gas emissions by 15% compared with 1990 levels, and to 
combat acidification. Contribution to a reduction in CO2 emissions throughout the world 
through the transfer of technology. 
Target population 
- National, regional and urban European agencies and bodies promoting clean and 
efficient technologies; 
- Electricity industry and manufacturers of coal combustion installations in the 
European Union; 
- Agencies, governments and industry in third countries, mainly China, India, Asia and 
other regions which are expected to be major coal consumers. 
\ 9 
JLO 
9.2. Grounds for the operation 
Costs 
According to the studies available to the Commission, for the period covered by the 
programme, an investment potential of ECU 15 800 million has been identified for new 
clean coal installations in the European Union. This amount will be used mainly to 
upgrade indigenous coal and lignite produced under satisfactory economic conditions. 
When EU dependency on energy imports is expected to rise to 70% in 2020, economic 
upgrading of Community resources is very important. 
It costs ECU 500 to remove a tonne of SO2. If one considers that the Community 
strategy against acidification calls for a reduction in annual SO2 emissions from 
combustion plants of around 9 million tonnes (between 1990 and 2010), the potential 
benefit of the application of clean coal technology merely in terms of a reduction in 
SO2, would be around ECU 4 500 million per year. The benefits in terms of a 
reduction in NOx are even greater. 
In terms of CO2, a 5% improvement in the efficiency of electricity generation from coal 
in the European Union would produce a reduction in CO2 of some 100 million tonnes 
per year. 
Spin-off effects 
The actions supported under this programme will meet the following criteria: 
- make a significant contribution to environmental protection and control of the 
greenhouse effect, 
- exercise a stabilising effect on energy prices at world level, 
- improve the balance of payments of the European Union, 
- make European industry more competitive on the world market, 
- improve security of supply for the European Union and make it less vulnerable to 
disruption in the energy market, 
- help to achieve the internal market and economic and social cohesion. 
Moreover, the availability of high efficiency energy technologies makes it possible to 
transfer technology to third countries and thus contributes to better resource 
management and environmental protection at world level. 
9.3. Monitoring and evaluation of the operation 
Performance indicators selected 
reduction of C02 emissions, 
number of initiatives proposed, accepted and adopted by industry, 
private investments intthe promoted projects, 
number of conferences, seminars, newsletters and other publications, 
degree of use of the information network created. 
119 
Details and frequency of planned evaluations 
Moreover, the Commission will report on a regular basis to the Programme Committee 
made up of representatives of the Member States meeting in accordance with the 
procedure. 
This report will be sent to the Council and the European Parliament in accordance with 
Article 7 of the attached proposal for a Council decision. 
The evaluation must also examine: 
past and present guidelines for the programme in a search for possible 
improvements, 
the relationships between the resources employed and the results obtained, 
actual and potential ways in which these programmes complement other existing 
instruments. 
10. Administrative expenditure 
The necessary resources are funded from the existing appropriations of the services managing 
the programme. 
10 
1 9 0 
Table of financial considerations 
Activities Article 3 Budget (million ECU) 
Number 
factions •venge unit 
cost 1998 1999 2000 2001 2002 Total 
'ECU): 
a) Measures to stimulate the creation 
of an information network on the 
market and technologies 
- cost associated with network 
hardware 
- cost of servers (private or public) 
- costs associated with the operation of 
the network and the creation of a 
database 
SUB-TOTAL 
b) Marketing, feasibility studies and 
other investment incentives 
- Market studies 
- "Business workshops" 
c) Promoting exports of clean coal 
technologies to third countries 
- Industrial missions by European 
businessmen in third countries 
- Industrial missions by third countries 
in the EU 
SUB-TOTAL 
GRAND TOTAL 1 
155 
-
1 
10 
2 
-
-0.20 
0.02 
-
0.20 
0.10 
0.30 
0.30 
-
-0.10 
0.30 
0.20 
0.10 
0.20 
0.50 
0,8 0.21 
0.10 * 
0.31 
0.20 
0.30 
0.50 
0.81 0.21 
0.10 
0.31 
0.21 
0.30 
0.51 
0.82 0.21 
0.10 
0.31 
0.22 
0.30 
0.52 
0.83 0.21 
0.10 
0.31 
0.23 
0.30 
0.53 
0.84 0,20 
0.84 
0.50 
1.54 
0.20 
1.96 
0.60 
0.80 
2.56 
4.10 
Number of servers. 
11 
121 
EUROPEAN COMMISSION 
ANNEX VII 
Introduction 
OF MULTIANNUAL ACTIONS CONCERNING NUCLEAR 
SAFEGUARDS AND TRANSPORT OF 
RADIOACTIVE MATERIALS 
(1998 - 2002) 
199 
X /w A-» 
FINANCIAL STATEMENT 
1. TITLE OF OPERATION 
a. Nuclear industry cooperation and transport of radioactive materials 
- Transport of radioactive materials: problems of safeguards, health protection and nuclear 
safety technologies. 
- Industrial cooperation in the civil nuclear sector with the Central and East European 
Countries (CEEC), Russia and the Ukraine. 
b. Training safeguards experts from the CEEC and the New Independent States (NIS) -
Establishing a fissile materials compatibility and control system in Russia. 
2. BUDGET HEADING INVOLVED 
a. B4-1020 of the General Budget of the European Communities (Nuclear industry 
cooperation and transport of radioactive material) 
b. B7-535 of the General Budget of the European Communities (Training and implementation 
of safeguards). 
3. LEGAL BASIS 
Chapters EI and X of the EAEC Treaty (Euratom Treaty), plus: 
a. Article 75 of the EC Treaty (common transport policy) and the 
Council Resolution of 22 July 1996 on technological problems connected with nuclear 
safety (JO No C 185 of 14 August 1996, p. 1). 
Council Resolution of 22 July 1996 on technological problems connected with nuclear 
safety (JO No C 185 of 14 August 1996, p. 1), and Resolution 16 in EP document 
217.774/final of 11 July 1996 "East-West cooperation activities in energy and nuclear 
security". 
b. European Parliament Resolution of 9 April 1992 on nuclear safety in the countries of 
Central and Eastern Europe and the Commonwealth of Independent States (JO No C 125 
of 18 May 1992, p. 244) and the European Parliament Resolution of 29 September 1994 
(PE-B4-00621) on illicit trafficking in nuclear materials and 
Commission communication of 19 April 1996 on illicit trafficking in nuclear materials 
and radioactive substances (COM (96) 171 final). 
123 
4. DESCRIPTION OF OPERATION 
4.1. General objective 
The objectives of the action programme are to improve nuclear safety and safeguards. 
a. Improving nuclear safety in general, particularly by working to improve: 
- the transport of radioactive materials by: 
• facilitating the operation of the internal market by identifying justifiable 
harmonisation measures 
• helping improve legislation further by developing experimentation and know-how 
• evaluating incidents which have occurred during transport and learning lessons for 
the future 
• making emergency procedures more consistent and giving those involved more 
training 
• cooperating with CEEC and NIS to help them improve transport safety in their own 
countries 
• improving public information, comprehension and awareness in this area. 
- Long-term nuclear safety in Eastern Europe, Russia and Ukraine. These countries fully 
intend to continue to use nuclear power as a major source of energy. In addition to 
short-term measures carried out under assistance programmes designed to solve specific 
problems, these countries must be helped to develop a quality and safety approach to the 
whole of the nuclear industry. This is a long-term measure which will be possible only 
through close cooperation between industry in the EU and in Eastern Europe. As a 
means of encouraging cooperation, the Commission should help to identify general 
(industrial, financial and legal) barriers and support pilot ventures where appropriate. 
b. Helping to establish a system of effective and reliable safeguards in the NIS and CEEC 
through cooperation in the following areas: 
- training and retaining of nuclear safeguards experts 
- establishing a fissile materials compatibility and control system in Russia 
- installing control equipment under (b). 
4.2. Period covered 
Five years. The operation should begin in 1998 and continue until 2002. 
5. CLASSIFICATION OF EXPENDITURE 
Non-compulsory expenditure 
124 
6. TYPE OF EXPENDITURE 
a. Subsidies for joint financing with other sources in the private and/or private sectors. In 
some cases, the Commission of the European Communities could fund up to 100% of 
proposals which it considers to be of extreme interest but which cannot be financed jointly 
by other sources (e.g. cooperation with East European countries). 
b. Subsidies/financing for: 
- vocational training classes and courses for safeguards experts in the European 
Union and/or in the NIS and CEEC, including their costs (travel, daily allowance, 
etc.) 
- seminars for experts in the EU and/or the NIS 
- visits by experts to nuclear plants in the European Union and/or NIS 
- the necessary equipment, logistical and DP support 
- translation and interpreting costs 
- travel expenses of the ESD staff and EU experts chosen to carry out the above 
activities 
- taking, transporting and analysing samples, including samples taken in the context 
of illicit trafficking in nuclear materials. 
7. FINANCIAL IMPACT 
7.1. Method of calculating total cost of operation (link between unit costs and total cost) 
The following amounts should be earmarked to cover the objectives of this multiannual 
programme: 
a. B4-1020 Implementation of the programme for the period from 1998 to 2002. 
- some ECU 0.5 million a year for transport of radioactive materials. Financing 
requirements were put at ECU 2 million a year (exceeding current forecasts) by the 
Permanent Working Party for the Transport of Radioactive Materials at its meeting 
on 23 September 1997 in Brussels, on the basis of the work already done on the 
budget for 1996 and 1997 and all the measures to be carried out in 1998 and 1999. 
- some ECU 0.1 million a year as of 2000 for nuclear industry cooperation with 
Eastern Europe. These requirements were worked out at ECU 0.5 million a year on 
the basis of the results of a study on industrial cooperation being conducted with 
Russia. 
b. B7-535 Implementation of the programme for the period from 1998 to 2002. 
- The cost of this action has been put at ECU 2.5 million a year, on the basis of the 
resources used up to now for assistance on safeguards given to the CEEC and NIS 
and the objectives still to be achieved, which means that the total cost should be 
ECU 12.5 million. 
7.2. Itemised breakdown of cost 
Nuclear industry cooperation and transport of radioactive materials 
(B4-1020) 
EC in ECU million (at current prices) 
Breakdown 1998 1999 2000 2001 2002 
Transport of nuclear materials 
Operation of the single market and harmonisation 
Studies on incidents and accidents during 
transport - Emergency measures 
Assistance to CEEC and NIS 
Public awareness 
Sub-total 0.2 
0.2 
0.1 
0.0 
0.5 0.2 
0.2 
0.1 
0.0 
0.5 0.2 
0.1 
0.1 
0.0 
0.4 0.1 
0.1 
0.1 
0.1 
0.4 0.1 
0.1 
0.1 
0.1 
0.4 
Industrial cooperation 
Evaluation of the situation in the NIS 
Bringing industrialists together 
Sub-total p.m. 
p.m. 
p.m. 0.01 
p.m. 
0.01 0.02 
0.1 
0.12 0.03 
0.1 
0.13 0.04 
0.1 
0.14 
TOTAL 0.5 0.51 0.52 0.53 0.54 
foLG 
b. Training experts and implementing safeguards (CEEC and NIS) 
(B7-535) 
EC in ECU million (at current prices) 
Breakdown 
Safeguards training 
Approximation to the Euratom system 
Illicit trafficking 
Improving legislation 
TOTAL 1998 
0.75 
0.75 
0.50 
0.50 
2.5 1999 
0.75 
0.75 
0.50 
0.50 
2.5 2000 
0.75 
0.75 
0.50 
0.50 
2.5 2001 
0.75 
0.75 
0.50 
0.50 
2.5 2002 
0.75 
0.75 
0.50 
0.50 
2.5 
7.3. Operational expenditure on studies, experts, etc. included in part B of the budget 
a. Nuclear industry cooperation and transport of radioactive materials 
(B4-1020) 
EC in ECU million (at current prices) 
1998 1999 2000 2001 2002 
Studies - experiments 
Support for pilot ventures 
Meetings of experts-0.4 
0.1 0.41 
0.0 
0.1 0.32 
0.1 
0.1 0.33 
0.1 
0.1 0.34 
0.1 
0.1 
Total 0.5 0.51 5.2 0.53 0.54 
b. Training experts and implementing safeguards (CEEC and NIS) 
(B7-535) 
EC in ECU million (at current prices) 
- Specialised training classes and 
courses 
- Seminars 
- Visits by experts to nuclear plants in 
the EU 
- Equipment, logistical and DP 
support 
- Travel expenses of officials on the 
spot (including help for operators in 
their own plants) 
Total 1998 
0.75 
0.50 
0.15 
0.8 
0.2 
2.5 1999 
0.75 
0.50 
0.15 
0.8 
0.2 
2.5 2000 
0.75 
0.50 
0.15 
0.8 
0.2 
2.5 2001 
0.75 
0.50 
0.15 
0.8 
0.2 
2.5 2002 
0.75 
0.50 
0.15 
0.8 
0.2 
2.5 
1 on 
J- /-v a' 
7.4. Schedule: commitments and payments in ECU 
a. Nuclear industry cooperation and transport of radioactive materials 
(B4-1020) 
Appropriations for commitment 
Appropriations for payment 
1998 
1999 
2000 
2001 
2002 
2003 1998 
0.5 1999 
0.51 EC in] 
2000 
0.52 ECUmilli 
2001 
0.53 on 
2002 
0.54 2003 
0.8 
0.8 0.15 
0.36 
0.51 0.15 
0.37 
0.52 0.15 
0.38 
0.53 0.15 
0.39 
0.54 0.15 
0.15 
b. Training experts and implementing safeguards (CEEC and NIS) 
(B7-535) 
Appropriations for commitment 
Appropriations for payment 
1998 
1999 
2000 
2001 
2002 
2003 1998 
2.0 1999 
2.0 EC in] 
2000 
2.0 ECU milli 
2001 
2.0 on 
2002 
2.0 2003 
2.0 
1.5 
1.5 2.5 
2.5 2.5 
2.5 2.5 
2.5 2.5 
2.5 1.0 
1.0 
8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 
a. Call for proposals each year during the period from 1998 to 2002. Evaluation and 
selection of proposals by a Commission committee of experts in this field on the basis 
of: 
- technical scientific merit 
- an analysis of the financial data on each proposer. 
128 
After signature of the contract: 
• scrutiny of statements of expenditure before payment at various levels (financial 
manager, scientific manager); 
• internal audit by the financial controller; 
• continual on-the-spot inspections, checking supporting documents, checking for 
errors or other irregularities. 
Checking invoices against expenditure actually incurred and against the guide to 
missions for the duty travel expenses of officials and experts, costs of meetings and 
costs of conferences. 
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 
9.1. Specific and quantified objectives, target population 
9.1.1. Specific and quantified objectives. 
a. Nuclear industry cooperation and transport of radioactive materials 
Transport of radioactive materials 
- Facilitating the operation of the internal market by identifying justifiable harmonisation 
measures: 
• harmonising methods for evaluating conditioning safety in accordance with the 
regulations; 
• harmonising conditioning standards and of the level of intrinsic safety of materials. 
- Helping to improve legislation further by developing experiments and know-how. 
- Evaluating incidents which occurred during transport and learning lessons for the future. 
- Making emergency procedures more consistent and giving those involved more training. 
- Cooperating with CEEC and NIS to help them improve transport safety in their own 
countries (some of them will be negotiating accession to the Community). 
- Improving public information, comprehension and awareness in this area. 
Nuclear industry cooperation 
- Identifying specific barriers to cooperation between industries, within the context of 
existing industrial, financial and legal structures, with a view to establishing a 
market-orientated approach in the East; proposing ways of facilitating cooperation. 
- Establishing an information/contact network between industrialists in the EU and in 
Eastern Europe. 
129 
b. Training experts and implementing safeguards (CEEC and NIS) 
Following the political upheavals in the Eastern bloc and in view of cases of illicit 
trafficking in nuclear and radioactive materials from the East, it is essential, in 
accordance with the resolutions of the European Parliament and the policy of the 
Council and the Commission, to provide for the on-going training of local operators to 
control nuclear materials in the power plants of these countries. It is also necessary to 
set up an effective nuclear materials control and compatibility system. 
The aim of the programme, which already started between 1993 and 1996 (budget 
heading B4-2001), will be to continue with and to develop on-the-spot actions in close 
cooperation with the operators. The proposed actions will concern the compatibility 
of nuclear materials, physical inventory-taking procedures, computerised nuclear 
material accounting by the plant and the central control body, the organisation of an 
independent inspectorate and the establishment of monitoring and measurement 
systems. 
The Commission considers that the scope of the problem justifies continuing this 
action since the work already done has given encouraging results. 
9.1.2. Target population 
All citizens of the EU, CEEC and NIS. 
Transporters of radioactive materials. 
Those in the nuclear industry. 
National safety and safeguards authorities. 
Nuclear safety safeguards, control experts from the CIS and the nuclear plants of these 
countries. 
International organisations concerned with nuclear safety and safeguards. 
9.2. Grounds for the operation 
9.2.1. Need for Community financial aid 
a. Nuclear industry cooperation and transport of radioactive materials 
Transport of radioactive materials 
130 
In order to support these activities and at the request of the European Parliament,1 the 
Commission in 1982 established a Permanent Working Party of national experts 
technically responsible for the safe transport of radioactive materials. The Working 
Party organised exchanges of information on the application of regulations on the 
international transport of radioactive materials between Member States and outside the 
European Union. The Working Party proposed guidelines for an action programme on 
this subject to be prepared by the Commission, with the aim of providing the basic 
knowledge required to improve international regulations. 
The Commission was also asked to provide the European Parliament and the Council 
with regular information on new developments in the transport of radioactive 
materials, and on the recommendations prepared by the Working Party. 
In 1996 the European Parliament reinstated the budget heading on the transport of 
radioactive materials.2 The heading was allocated ECU 2 million in appropriations for 
commitment for 1996, and for 1997 was allocated ECU 0.7 million. 
The total amount committed for 1996-97 was ECU 2 661 971 (98.59% of the 
resources available). 
At its last meeting in Brussels on 23 September 1997, the Working Party 
re-emphasised the importance of implementing a multiannual programme (over five 
years) in this sensitive area with substantial funding (ECU 2 million a year). 
Nuclear industry cooperation 
To date the Commission has been concentrating on short-term measures to improve 
nuclear safety problems in the East. Action has been focused primarily on those power 
plants still operating, in terms of analysing safety, providing operational support 
(operational safety) and purchasing equipment from the West. Since these countries 
intend to continue to use nuclear power in the long term, the processes for 
manufacturing parts and equipment locally must be improved in order to provide 
components whose quality is a guarantee of safety. One way of doing this is to 
improve cooperation between the industry in the Union and in the East, by overcoming 
the barriers to this cooperation. The Commission can play a guiding role by helping 
with general analysis, contacts and information, and even by supporting pilot ventures. 
1 European Parliament Resolution published in OJ No C40 of 15.2.1982, p. 43. 
2 General Budget of the European Communities for 1996 - budget heading No B4-1020. 
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b. • Training experts and implementing safeguards (CEEC and NIS) 
This is one of the key elements for achieving the objectives established by the Essen 
European Council, in accordance with the European Parliament Resolution and the 
Commission Communication. It also ties in perfectly with the general objectives of the 
Union to improve the operating conditions of nuclear plants in Eastern Europe. 
Moreover, the problems of improving the control of nuclear materials and, by 
extension, reducing illicit trafficking in nuclear materials were the subject of an 
important declaration by the G8 countries at the Moscow Summit in April 1996. 
In addition, informal procedures have been established for achieving complementarity 
between activities organised by third countries (USA and Japan), the Member States 
(UK, France, Sweden and Finland) and the IAEA, and those organised through Phare 
and Tacis. 
It is important to make it clear that, unlike with Phare and Tacis, the training of experts 
and the implementation of projects is essentially the task of the Euratom inspectors, 
who have the requisite experience. Proper monitoring requires frequent visits to sites, 
the routing of equipment and the ability to adapt swiftly to needs as they arise. It is 
essential to act quickly and very flexibly. 
9.2.2. Choice of ways and means 
This project will be financed by subsidies and financial aid. 
9.3. Monitoring and evaluation of the operation 
a. Nuclear industry cooperation and transport of radioactive materials 
Transport of radioactive materials 
This action should make it possible to check whether existing regulations are being 
correctly applied, to determine the need to improve them and to help to establish the 
internal market. If necessary, this action should result in further measures by the 
Commission to harmonise legislation or practices concerning the transport of 
radioactive materials in the EU. 
To help Central and East European Countries and the CIS and those joining the 
Community or operating in its territory. 
One objective still to be achieved is to improve information to the public on the 
transport of radioactive materials.. 
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Nuclear industry cooperation 
Fuller understanding of local industrial problems and support for a market approach 
should generally help to improve economic development in Eastern Europe, which is 
also in the interests of the Union. 
b. Training experts and implementing safeguards (CEEC and NIS) 
Performance indicators: 
If this action is successful it should ensure that in Eastern Europe nuclear materials will 
be subject to more rigorous control, as in the European Union. The best indicator of 
success will be that nuclear energy is used only for peaceful purposes. 
Measuring the activities used: 
To give some idea, in 1995 the Safeguards Directorate launched 27 activities, ten in 
Russian territory and 17 within the European Union, chiefly in Luxembourg, with 103 
experts from Eastern Europe participating in one or more of these activities for a total 
of 850 man-days. To this total should be added the number of days spent by Euratom 
staff on these various activities. 
10. Administrative expenditure 
a. Nuclear industry cooperation and transport of radioactive materials 
The proposed annual commitments are less than the level of commitments in 1996. The 
human resources allocated to them in 1996 and 1997 correspond to 1.5 B officials and 
0.25 A officials. Thus no additional resources will be required. 
b. Training experts and implementing safeguards (CEEC and NIS) 
Between 1993 and 1996 the Commission was able to manage and absorb the activities 
provided for in heading B4-2001 without requiring any additional staff and despite the 
workload arising from the obligations in Chapter 7 of the Euratom Treaty. To date, no 
additional resources have been requested. 
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ISBN 92-78-28180-8 
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