A4-0326/96

Resolution on the Commission White Paper on an Energy Policy for the European Union (COM(95)0682 - C4-0018/96)

The European Parliament,

- having regard to the Commission's White Paper (COM(95)0682 - C4-0018/96),

- having regard to its opinion of 15 November 1994 on the proposal for a Council Regulation providing for Community financial support for the promotion of European energy technology 1995-1998 - THERMIE II ((OJ C 341, 5.12.1994, p. 48.)),

- having regard to its opinion of 17 November 1994 on the proposal for a Council Decision adopting a specific programme of research and technological development in the field of the environment and climate (1994-1998) ((OJ C 341, 5.12.1994, p. 133.)),

- having regard to its opinion of 13 December 1994 on the proposal for a Council Decision on the signing of the European Energy Charter and its provisional application by the European Community ((OJ C 18, 23.1.1995, p. 34.)),

- having regard to its resolution of 29 June 1995 on the Commission communication concerning an industrial competitiveness policy for the European Union ((OJ C 183, 17.7.1995, p. 26.)),

- having regard to its resolution of 10 October 1995 on the Green Paper 'for a European Union energy policy' ((OJ C 287, 30.10.1995, p. 34.)),

- having regard to its decision of 26 October 1995 on the common position of the Council on the proposal for a Council Decision on a series of measures aimed at creating a more favourable context for the development of trans- European networks in the energy sector ((OJ C 308, 20.11.1995, p. 115.)),

- having regard to its resolution of 29 February 1996 on the working paper of the Commission on small and very small electricity systems in the internal electricity market ((OJ C 78, 18.3.1996, p. 14.)),

- having regard to its opinion of 16 April 1996 on the proposal for a Council Decision concerning a multiannual programme for the promotion of energy efficiency in the Community - SAVE II ((OJ C 141, 13.5.1996, p. 26. )),

- having regard to its opinion of 16 April 1996 on the proposal for a Council Regulation adopting a multiannual programme to promote international cooperation in the energy sector - SYNERGY ((OJ C 141, 13.5.1996, p. 52.)),

- having regard to its decision of 17 June 1996 on the common position of the Council on the the proposal for a European Parliament and Council Directive on energy efficiency requirements for household electric refrigerators, freezers and their combinations ((OJ C 198, 24.6.1996, p. 26.)),

- having regard to its resolution of 4 July 1996 on a Community action plan for renewable energy sources ((OJ C 211, 22.7.1996, p. 27.)),

- having regard to its resolution of 20 September 1996 on East-West cooperation activities in energy and nuclear security ((Minutes of that Sitting, Part II, Item 5.)),

- having regard to the opinion of the Committee of the Regions ((CdR 2/96 rev.)),

- having regard to its opinion of 12 November 1996 on the proposal for a Council Directive to introduce rational planning techniques in the electricity and gas distribution sectors ((Minutes of that Sitting, Part II, Item 8. )),

- having regard to its resolution of 14 November 1996 on the communication from the Commission on the European Community gas supply and prospects (COM(95)0478 - C4-0487/95) ((Minutes of that Sitting, Part II, Item 13(c).)),

- having regard to the Council declaration of Madrid which stated that by 2010, 15% of primary energy should come from renewables,

- having regard to the report of the Committee on Research, Technological Development and Energy and the opinions of the Committee on Agriculture and Rural Development, the Committee on Regional Policy, the Committee on External Economic Relations and the Committee on Transport and Tourism (A4- 0326/96),

A. whereas, in its White Paper, the Commission has devoted considerably more attention than in its Green Paper to the environmental aspects of energy policy and has also proposed specific measures in this field,

B. whereas, further, the development in this White Paper of the consideration of renewable energy sources is at a relatively early stage, and whereas it is essential to integrate renewable energy sources into the whole energy policy,

C. whereas the main points of a policy geared towards renewable energy sources and energy savings consist in:

- using inexhaustible sources,

- the development of (totally new and sustainable) possible substitutes for energy sources that are becoming increasingly scarce,

- improvements in the efficiency of energy use, increase in re-utilization and the development of new and more economical possibilities for use,

- technical improvement and new development of the production process (including production techniques),

- further development of more profitable and renewable sources (such as solar power, photovoltaic energy, biomass energy and wind and tidal energy),

- supporting policy geared to market introduction and the development of a market for renewable energy sources and the appropriate supporting instruments in order to stimulate both supply and demand side on this market, which will make renewable energy more competitive;

- limiting the adverse environmental effects of energy consumption to the framework conditions which have been set, such as keeping to 'critical loads' for acidification and the stabilization and, after 2000, reduction of CO2 concentrations,

- reducing energy consumption with a view to adopting the sustainable development model which entails not only rationalizing the consumption of energy but reducing it,

D. whereas, in its White Paper, the Commission has now properly devoted greater attention to cogeneration of heat and power,

E. whereas, in its abovementioned resolution of 10 October 1995 on the Green Paper 'for a European Union energy policy', the European Parliament laid down the guiding principles for a gradual liberalization of the electricity market,

F. whereas, in that connection, the following guiding principles are common to both the gas sector and the electricity sector:

- the promotion of a liberalized gas market through a rapid opening of the gas markets of the Member States, together with the possibility of distributing gas in a Member State to various types of users whilst respecting the principle of subsidiarity, with the public service obligation remaining in force,

- the operation of an authorization system for supplies to captive consumers with security of supply, provisions concerning price, service and quality being integral parts of the authorizations,

- the creation of options to provide freedom of choice of gas supplier for comparable consumer groups in the Member States,

- the formulation involving the Member States of public service obligations as an integral part of the authorization system and as a precondition for supply to large-scale consumers and, subsequently, to medium-sized consumers, including security of supply, long-term planning and environmental protection. Rules must also be laid down governing the method of financing of public service obligations,

- freedom of access of gas networks in the Member States with equal, transparent and non-discriminatory conditions, with the possibility also existing of conditions being laid down concerning interoperability,

- the guaranteeing of monitoring at EU level as regards the functioning of the internal gas market and the drawing up of rules for the settlement of disputes, including arbitration procedures,

G. whereas because of the differences between the electricity sector and the gas sector, a number of derogating rules are required or fewer rules will be needed for:

- demarcating in gas policy the specific position of gas producers. This involves major suppliers from two Member States, the specific position of Norway as a EEA Member State and the other gas-producing countries such as Algeria and Russia. Distribution agreements in particular will have to express these differences,

- distinguishing the specific situation of the Member States where one country is self-sufficient while another may be totally dependent on gas imports from the Union or outside, which must lead to respect for a certain degree of freedom in the organization of gas policy in the Member States,

- taking account of the fact that gas distribution companies have mostly concluded very long-term import contracts and balancing this with the need to open up the gas market,

- admitting that in pricing account must be taken of the costs of gas storage provisions in connection with security of supplies and the management of peak demands and the need over the next 20 years to expand underground storage capacity by at least 75% in the various Member States,

- the need for the drawing up of periodic and detailed risk analyses with regard to a possible interruption in supplies from third countries to the EU since the dependence on third countries is increasing - partly because of increasing gas consumption - and the related need possibly to take further measures at Community level concerning the maintenance of strategic reserves,

- the need to base pricing in the gas sector on points of departure different from those in the electricity sector,

- the fact that because of the specific organization of the gas sector the need for 'unbundling' is less urgent,

- specific agreements governing the laying of gas pipelines in Member States so as to be able to guarantee the free distribution of gas in the Member States provided that long-term security of supply is assured,

H. having regard to the importance assigned in Articles 130a-130e of the EC Treaty to economic and social cohesion and assisting the less developed regions in the Union,

I. having regard to the importance of cooperation in the energy sector between the countries of Central and Eastern Europe and the EU, as already put forward in the Green Paper, and the integration of their energy systems into that of the Union,

J. having regard to the need to implement its abovementioned resolution of 20 September 1996 on East-West cooperation activities in energy and nuclear security, particularly the urgent need for better coordination and harmonization of the funds used in this area to meet specific requirements in the regions involved, for the elimination of all barriers that are still hampering international investment and trade to an excessive extent, for the introduction and stimulation of rational energy use in the CEECs and the generation of energy from renewable sources, and for increased nuclear safety by means of binding international cooperation, if possible through independent regulatory authorities,

K. whereas nuclear problems, especially in the CEECs, require the transparent provision of more research funds in the field of safety and the final disposal of nuclear waste, also bearing in mind recent official admissions of new criticalities at Chernobyl,

L. whereas the Commission is properly devoting attention to the need for further efforts to give more tangible form to the EU's energy policy by means of research and development,

1. Welcomes the fact that, in its White Paper, the Commission has taken over to a very large extent the European Parliament's proposals concerning the Green Paper 'for a European Union energy policy' and agrees with its main thrust;

RENEWABLE ENERGY

2. Calls on the Commission, in consultation with the Member States, to develop a financial programme to stimulate renewable energy and at the same time to adopt a model of sustainable development in which energy consumption would be reduced. This programme to stimulate renewable energy would include:

- investigating the possibility of introducing a 'green VAT',

- gradually dismantling direct and indirect subsidies which encourage the use of fossil fuels,

- making it fiscally attractive to invest in the development of sustainable energy,

- creating ways of linking the writing-off of investments in sustainable energy to the quantity of energy to be input into the network, including Full Cost Rates and In-Feed Laws,

- developing an accelerated writing-off programme for out-of-date and polluting power stations,

- including a new R and D programme in the Fifth Framework Programme enabling the level of investments by energy companies and industry to be reduced,

3. Considers it necessary to increase the proportion of renewable energies in the primary energy mix in the European Union by the year 2010 to at least 15%, with the share of biomass energy in particular increasing,

4. Calls on the Commission to investigate with the Member States the possibility of improving access for energy produced from renewable sources to the electricity grid inter alia by:

- making the use of sustainable energy compulsory (e.g. a 'non-fossil fuel obligation',

- a take-back guarantee for sustainable energy produced on a small scale,

- specifying a compulsory percentage of sustainable energy in public service contracts,

- organizing public campaigns to encourage consumers to make use of sustainable energy at a slightly higher price;

5. Takes note of the Commission's efforts to develop the instruments relating to sustainable energy policy further and asks in particular that more attention should be paid to energy-efficiency labelling and the successful application in some Member States of the covenants for energy efficiency and saving between government and industry, taking due account of the EU's competition rules;

6. Calls on the Commission to draw up a study into best practice instances of decentralized/local energy generation and distribution in the Member States and in the field of generation at the point of use, so that distribution and transport costs are avoided, and hopes that these findings will be widely disseminated in the Member States and calls on the Commission to bring forward proposals in this area;

7. Calls on the Commission to publish as quickly as possible its communication on cogeneration, which should include an analysis of its use (including the effect of the electricity directive on the market penetration potential of combined heat and power) and also to make proposals to encourage the use of combined heat and power in the Member States and to eliminate existing hindrances, and to develop proposals on how to achieve more decentralized/local energy production;

8. Expects the Commission to raise awareness in the Member States - through studies, conferences and demonstration projects, etc. - for combined heat and power as a very important standard in the construction of new power stations and, where possible, bring about a connection with existing and innovative industrial projects which produce heat so as to increase the energy yield and to restrict the emission of pollutants such as CO2;

9. Hopes that the Commission will investigate the extent to which it can develop financial instruments which increase the use of combined heat and power on both a small and large scale and can ensure that outdated and badly polluting power stations are rapidly taken out of service and subsequently decommissioned;

10. Recalls the need for EU standards for basic materials for the generation of energy from renewable resources, the promotion of renewable energy sources by its use in public buildings, training for construction engineers, distribution of product information and the elimination of current discriminations which put energy from renewable sources at a disadvantage;

11. Expects the Commission to make standards more stringent for equipment within the framework of technical and economic possibilities and to introduce energy-efficiency labelling of equipment;

12. Calls on the Commission when establishing the minimum excise rates for a number of fuels (the CO2/energy tax) to ensure that:

- the minimum excise rates, as far as this is practically possible, are based on the CO2 content of the fuels so that there is a real internalization of external costs and account is taken of the environmental pollution caused by a specific fuel,

- the level of the minimum excise rate will be such that a significant contribution is made to the Community's international obligations with regard to CO2 reduction;

13. Expects the Commission to support the development of a separate market for energy from renewable sources outside the EU by:

- removing, in consultation with the World Bank, bureaucratic obstacles imposed by local banks in third countries, so as to enable sustainable energy to be imported on a large scale;

- stimulating EU exports in the fields of sustainable energy and technology transfer from the EU;

- establishing EU centres for sustainable energy in third countries and developing networks under the MEDA programme;

- setting up a biomass programme for Central and Eastern European countries even before they become Member States, and a corresponding transfer of technology;

- setting up, in consultation with the World Bank, longer-term funding schemes for third countries wishing to produce sustainable energy;

- ensuring that the need to develop such a market appears on the agenda at the Singapore World Trade Conference;

- developing common implementation plans for CO2 reduction between the EU and third countries, including technical support and help in setting up imports of sustainable energy;

- setting up an exchange for sustainable energy products and demonstration projects in third countries by EU firms;

14. Takes note of the proposals submitted by the EU on sustainable energy policy in the context of international climate negotiations and the Berlin mandate with a view to the establishment of a supplementary protocol to the UN framework treaty on climate change and calls on the Commission in consultation with the Member States to integrate, as far as is practically possible, these proposals into the further development of the policy on sustainable energy;

15. Requests the Commission to make every effort in cooperation with Parliament to defend and promote the SAVE II programme and the Rational Planning Directive as the only realistic CO2 strategies available to the EU; calls also for targets to be set, such as a stabilization of CO2 emissions in 2005 by comparison with 1990, a 1% per year increase in the use of renewable energy and an energy efficiency target of a 1.5% per annum reduction in primary energy consumption; asks for the SAVE II programme to be opened up to the countries in the Mediterranean region because of the favourable cross-border impact;

16. Advocates, in the context of planning more intensive use of renewable energy sources, that more attention should be given to the possibilities of using water in the various European river basins, including hydroelectric energy;

17. Urges the Commission to organize a conference with the Member States on sustainable building, including the use of sustainable energy, and the application of energy consumption and re-use standards and the creation of a 'Task Force on Eco-building' within the Commission;

18. Looks to the Commission, in cooperation with the Member States, to launch a large-scale campaign in the field of sustainable energy and energy saving, aimed at obtaining public support. This campaign should concentrate on information, demonstrations, studies, cooperation between towns which are in the forefront in this area, project subsidies, etc.; the Commission is expected to set criteria on which the Member States can base their subsidy provisions in the light of free competition;

19. Urges the Commission to submit an R& TD programme in the area of the social sciences to promote guidelines for individual and collective behaviour which encourage energy savings and, in particular, lower energy consumption;

GAS

20. Notes that there is a need for further formulation of guiding principles for the gas sector and calls on the Commission to step up progress in this area and to begin consultation with Parliament on this subject at an early date;

21. Would like to see more funds devoted to R& D in the gas sector to cover exploration (extraction techniques for small gas fields), large-scale storage, energy-saving technology, coal gasification, new applications (including the motor vehicle sector) and the use of gas with other sources to achieve a sharp increase in energy yield (including gas-fired cogenerators);

INTERNATIONAL CONTEXT

22. Calls on the Commission to include as an objective of energy policy the lowering of import dependency;

23. Believes that the Commission should organize one or more well-prepared regional energy conferences as soon as possible together with the G7, EBRD, WANO, EIB, the World Bank, the IMF and energy NGOs in Central and Eastern Europe with a view to establishing clearly for each of those countries how the energy policy can best be supported by:

- removing the link between economic growth and energy consumption, together with a move towards lower energy use in heavy industry, with the aim of increasing energy efficiency by at least 10 percentage points to bring it up to EU level;

- developing a package of energy efficiency measures in the fields of energy production and distribution, heat production and distribution to households, as well as energy saving campaigns;

- encouraging energy investment, including investment by EU firms, inter alia by developing an attractive programme of direct foreign investment in cooperation with Western financial institutions;

- developing affordable technologies for the measurement of energy consumption - particularly in households - and on this basis to adapt the energy bill more accurately to the individual consumer;

- encouraging the installation of gas-fired combined heat and power stations (co-generation) and the wider application of combined heat and power technology;

- more rapid introduction of renewable energy sources, particularly in thinly populated areas, with the aim of having at least 10% of all energy in CEECs produced from renewable energy sources by 2015;

- speeding up the privatization of the energy sector and removing the link between production, transit and distribution;

- ensuring that transit and interconnection prices are based on non- discriminatory and transparent criteria;

- developing institutions which can contribute in some form to the operation of market forces in the energy sector and to the development of energy saving programmes and the rapid introduction of renewable energy sources;

- raising the safety objectives in the use of nuclear energy under the auspices of the IAE. Disposal of nuclear waste and the reaching of agreements - in consultation with neighbouring countries - on increasing the safety of, or closing down, dangerous nuclear power stations. In this context it is necessary to find some way of importing alternative forms of energy at an affordable price: any financial arrangements in this connection need to be made with the international financial institutions;

24. Hopes that all nuclear powers, including the former Soviet Union, will be encouraged to become active members of the International Safety Convention. In future, financial aid must be made dependent on this;

25. Proposes the establishment of an energy panel for nuclear safety to advise the Commission on the way in which projects are set up in CEECs and on projects submitted, which should inform Parliament of all of its recommendations; in preparation, plant managers of Soviet technology in the CEECs and the former CIS states should be asked, in consultation with the national safety authorities, to draw up a list of the most urgent safety improvements at their plants;

26. Hopes that PHARE and TACIS project criteria will be changed so that less emphasis is placed on the carrying out of studies and on advice and more on the supplementary financing and cofinancing of the findings of the regional energy conferences;

27. Hopes that the Commission will coordinate the financial aid provided by the IMF, World Bank, EBRD and EIB with the PHARE and TACIS funds, so that - together with private investors and operators and the relevant CEEC - the best possible financial rules may be established to support the findings of the regional conferences, and asks the Commission to report back periodically to it on this subject;

28. Urges once more the conclusion of an Energy Charter with the countries of the Mediterranean region and the development of bilateral energy contacts between those countries and the EU (e.g. the encouragement of gas investment between Algeria and the EU);

29. Advocates closer relations in the form of agreements with the most important oil-producing third countries and hopes, in this context, that the Commission will speed up the negotiations with the countries of the Gulf Cooperation Council on the conclusion of a free trade agreement;

30. Stresses the need for a comprehensive harmonization of environmental requirements in the energy sector, to prevent global distortion of competition to the disadvantage of the EU, which has achieved a high level of protection in this area;

RESEARCH AND DEMONSTRATION

31. Calls on the Commission to produce an 'illustrative renewables programme' and an 'illustrative energy efficiency programme' and promote each of them on an equal basis with the promotion of nuclear power arising from the Euratom Treaty obligations and the consequent 'indicative nuclear programme' (PINC);

32. Calls on the Commission to produce plans to increase considerably demonstration activities for renewable and energy efficiency projects for the Fifth Framework programme;

33. Calls on the Commission to produce plans to put renewables R & D and energy efficiency R & D on a comparable funding level to proposals for nuclear energies within the Fifth Framework programme;

34. Calls on the Commission to investigate additional action to improve the efficiency of electrical transmission lines (grid lines);

35. Calls on the Commission to submit a coherent R& D programme which draws on the one hand on the various programmes such as Synergie, Thermie, SAVE, etc. and, on the other, from the Fourth Framework Programme, Community research centres, PHARE, TACIS, EUREKA, EURATOM, etc. and is more balanced in the use of resources intended for programmes concerning renewable energy sources;

36. Hopes that the fifth framework programme will include a section entitled 'Energy and the Environment', with the accent on demonstration projects for renewable energy and successful market introduction. Attention should also be paid to the participation of SMUs as suppliers for the EU's R& D activities because a large part of research is currently being carried out by SMUs and by major public research organizations;

37. Hopes that the Commission together with the Member States investigates how the application of all possible energy management measures can be encouraged on the demand side by passing on external costs and benefits and hopes also that the Commission, together with the Member States, will set up demonstration and information programmes in order to encourage the use of heat pumps which contribute to a considerable energy saving in the space heating sector;

REGIONAL POLICY

38. Expects regional activities in the area of renewable energies to be taken into account, encouraging regional solutions and creating jobs at regional level and reducing the dependence of the regions on external energy sources;

39. Points out that the Structural Funds constitute the main source of Community funding for energy projects and calls on the Commission to endeavour to coordinate better structural measures and energy policy priorities;

40. Calls on the Commission to ensure that its proposals and the implementation of Community energy policy, on the basis of the White Paper and Parliament's recommendations, will contribute to a greater extent and more specifically to assisting the less developed regions, in the context of the policy of economic and social cohesion;

41. Is in favour of regional and local authorities being represented in the Energy Consultative Committee and calls on the Commission to ensure that regional and local authorities can step up their role in the achievement of the joint objectives of energy policy;

42. Calls on the Commission to strengthen its policy with regard to regional and local authorities so that they can assist in the achievement of common objectives, in particular as regards:

- urban and collective heating technologies;

- the use of local renewable energy sources;

- the access of local and regional energy producers to national and European networks;

- the creation of the Community structure and their responsibility as regards energy consumption;

- fostering a mixed urban structure and encouraging practical applications of the information society, with a view to reducing traffic;

- the use of environmental taxes on traffic in order to protect the environment and encourage the use of public transport;

43. Calls on the Commission to ensure that energy consultation bodies include the representation of the environmental and cost concerns of individual citizens;

44. Considers that exchanges between regions and cities in the context of the SAVE programme, as proposed in the White Paper (paragraph 121) must ensure a beneficial effect for the less developed regions, in the context of the policy of economic and social cohesion;

TRANSPORT

45. Calls on the Commission to instigate a much more significant legislative programme to improve quickly energy efficiency in road transport;

46. Urges the Commission to make great efforts to achieve consensus with the Member States on the introduction of standards for energy-efficient engines with low emissions and measures in the areas of transport management which would reduce energy consumption; invites the Commission to pay greater attention to R & D as regards the use of electric traction in transport technology by means of improved battery technology;

47. Approves the Commission's work programme set out in the Annex, on condition that the additional activities referred to in this resolution are accepted by the Commission or that the activities it proposes are amended accordingly;

48. Instructs its President to forward this resolution to the Commission, the Council, the governments and parliaments of the Member States and the governments and parliaments of countries applying for accession to the EU.