Proposal for a Council Decision Concerning the Organisation of Cooperation Around Agreed Community Energy Objectives (97/C 27/11) COM(96) 431 final - 96/0218(CNS)

(Submitted by the Commission on 4 October 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaties, and in particular Article 130 (3) of the Treaty establishing the European Community,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas at the Energy Council of 7 May 1996, the Council, in its Resolution on the White Paper 'An Energy Policy for the European Union`, invited the Commission to put in place a process of cooperation between the Community and the Member States in order to ensure that Community and national energy policies are compatible with agreed common energy objectives;

Whereas this process needs to be placed in the context of a shared analysis of the energy situation and of future trends through cooperation at the Community level between Member States on energy studies;

Whereas, the promotion of the internal energy market being a priority task for the Community and the Member States, it is important for the internal energy market that energy trends and issues be analyzed at the Community level, through cooperation with the energy sector and by mobilizing all the local, regional, national and Community elements concerned;

Whereas this process of cooperation, with due regard to the principle of subsidiarity, must ensure a maximum of coherence and convergence in relation to agreed energy objectives if the Community's economic and environmental policy goals are to be achieved;

Whereas the Community has a wide range of competencies in the energy sector under the existing Treaties but there is still no comprehensive energy policy framework;

Whereas the RTD Framework Programmes based on the EC Treaty and the Euratom Treaty ensure the development of new energy technologies related to the non-nuclear and nuclear energy;

Whereas, without prejudice to the existing responsibilities of Member States as regards their own energy sectors, the White Paper proposes a new approach to energy policy cooperation around agreed energy policy objectives and a new approach to monitoring energy trends, in cooperation with the Member States, which would add value by pinpointing and encouraging best practices, by promoting a cooperative approach to energy studies and analysis and by exchanging relevant experience;

Whereas a firm commitment to Community energy objectives by Member States requires effective cooperation at Community level to ensure that both national and Community energy policies contribute to their attainment;

Whereas, in the framework of this cooperation, the Commission needs to have regular and appropriate information from Member States so that it can establish periodic reports on the extent to which Member States' energy policies and Community actions contribute to Community energy objectives;

Whereas these periodic reports that evaluate energy developments in a global manner will provide the basis for an examination of energy developments in the Council and for the Commission to make appropriate new legislative proposals;

Whereas, in order to take account of the changing energy situation, the Community, on the basis of a Commission proposal, needs periodically to examine, and where necessary update, the agreed common objectives;

HAS DECIDED AS FOLLOWS:

Article 1

A framework for energy cooperation between the Community and the Member States is hereby established around agreed Community energy objectives which are set out in the Annex, and which, while constituting specific measures in support of actions taken in the Member States, will notably contribute to:

- achieving a high level of competitiveness in the Community,

- increasing security of supply,

- protecting the environment,

- promoting the rational and efficient use of energy resources and new and renewable energy,

- promoting international energy cooperation and liberalisation,

- ensuring transparency of national and Community energy policy actions,

- developing an analysis of and monitoring the energy market.

Article 2

1. In order to achieve the agreed energy objectives described in Article 1, the Commission will ensure the following:

1. monitoring the impact of agreed common energy objectives on energy policy developments in Member States and the evolution of the global energy situation in view of a possible adaptation of the common energy objectives set out in the Annex;

2. scrutiny of Community and national actions in the energy field and exchange of best practices;

3. monitoring, evaluation and exchange of energy related information on all aspects of energy activity;

4. development of cooperation and linkages in the energy field;

5. encouragement of broad dissemination of the results obtained from the measures in 3 and 4.

2. The Commission will examine the necessity of specific Community actions in support of measures taken in the Member States.

Article 3

1. The Commission shall be informed annually of the measures taken by Member States for achieving the agreed common energy objectives referred to in the annex and on any other measure relevant to these objectives.

2. The Commission will prepare on the basis of the information obtained, where appropriate, a report in the form of a Communication, on the compatibility of energy policies in the Member States and Community actions in the energy field with the agreed common energy objectives. This report shall be forwarded to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

Article 4

This Decision shall enter into force on . . .

Article 5

This Decision shall be published in the Official Journal of the European Communities.

ANNEX

AGREED COMMON ENERGY OBJECTIVES

1. Energy policy at the Community level should contribute to the achievement of the various energy objectives set out in the Treaties, notably market integration, sustainable development, environmental protection and security of supply.

2. Integration of the Community energy market, based on the principle of open and competitive markets, is essential for achieving flexibility, efficiency and long-term security in the energy sector. Integration should take into account the diverse energy mix of the Member States, both fossil and non-fossil, and enhance economic and social cohesion particularly through the development of trans-European networks.

3. Transparent and undistorted energy prices should be guaranteed with the aim of ensuring that markets for all fuels in the Community work efficiently and are fully competitive.

4. In order to achieve the Treaty objective of sustainable development, energy and environmental objectives need to be integrated. Wherever possible the full cost of energy production and consumption should be reflected in the price. Economic non-fossil fuels such as renewables and nuclear, incorporating the highest safety standards, can make an important contribution to this goal.

5. Strengthening of security of supply through improved diversification and flexibility of domestic and imported supplies, environmentally sound indigenous energy resources and efficiency in using energy will provide the capacity to respond quickly and flexibly to supply emergencies, notably with respect to oil and gas.

6. A coordinated approach to external energy relations in order to ensure free and open trade and a secure framework for energy investments. Co-operation with non-member countries should be developed to enhance energy security, to achieve environmental goals and to stimulate the development and dissemination of appropriate energy technologies to third countries.

7. The promotion of renewable energy resources through supportive measures at both Community and national level with the aim of achieving for such fuels a significant share of primary energy production in the Community by 2010.

8. A significant improvement in energy efficiency in the Community by the year 2010 through improved coordination of both national and Community measures.

In order to contribute to the achievement of the above objectives the Community will use the large range of instruments in the energy sector that are available to it, notably

- research and development and the dissemination of new and improved energy technologies,

- harmonizing the fiscal structure with regard to energy products to avoid distortions,

- applying the competition rules of the Treaties with a maximum of transparency and consistency,

- standardization in the energy sector,

- monitoring of the internal market,

- instruments for cooperation with and assisting third countries,

- development of cost-effective instruments for limiting the negative environmental side effects of the production, transport and use of energy.