COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Decision of the European Parliament and the Council adopting a multiannual programme for action in the field of energy: "Intelligent Energy - Europe" programme (2003-2006)

2002/0082 (COD)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the common position of the Council on the adoption of a Decision of the European Parliament and the Council adopting a multiannual programme for action in the field of energy: "Intelligent Energy - Europe" programme (2003-2006)

1- BACKGROUND

Date of transmission of the proposal to the EP and the Council (document COM(2002) 162 final - 2002/0082 COD): // 10 April 2002

Date of the opinion of the European Economic and Social Committee: // 18 September 2002

Date of the opinion of the European Parliament, first reading: // 20 November 2002

Date of the opinion of the Committee of the Regions: // 20 November 2002

Date of Political Agreement on a common Position: // 25 November 2002

Date of adoption of the common position: // 3 February 2003

2- OBJECTIVE OF THE COMMISSION PROPOSAL

In its Green Paper entitled "Towards a European strategy for the security of energy supply [1]", the Commission calls for the following actions in a long-term energy context:

[1] COM(2000) 769 final, 29.11.2000.

- The European Union must take clear action to shift the balance away from supply policy towards a policy focused on demand. There is little margin for increasing Community supply, given the needs in this field, but the room for manoeuvre on demand is more promising.

- On the subject of energy demand, the Green Paper calls for a genuine change in consumer behaviour. There will have to be an active policy on energy-saving and diversification for the transport and construction industries as well as the electrical equipment sector so as to promote non-polluting forms of energy.

- On the subject of energy supply, priority must be given to combating global warming. The development of new and renewable energy sources (including biofuels) is the key to change. Doubling their share in the energy supply quota from 6 to 12% and increasing electricity production based on these energy sources from 14 to 22% is an objective for 2010.

The broad lines of action set out in the Green Paper were confirmed and strengthened by the new EU priorities agreed at the last European Council in Gothenburg, especially as regards the EU strategy for sustainable development.

This proposal for a Decision of the European Parliament and of the Council concerns a multiannual programme for actions in the field of energy - the "Intelligent Energy for Europe" programme - for the period from 2003 to 2006. The programme is designed as the main Community instrument for non-technological support in the field of energy. It provides continuity for the actions undertaken under the ALTENER, SAVE and, to a certain extent, SYNERGY programmes and combines all activities in the energy sectors that contribute to the accomplishment of the main aims of Community energy, transport and sustainable development strategies.

The programme is structured around four specific fields:

* rational use of energy and demand management (SAVE),

* new and renewable energy sources (ALTENER),

* energy aspects of transport (STEER), and

* promotion at international level in the fields of renewable energy sources and energy efficiency (COOPENER).

Six types of action are foreseen for each field:

a) implementation of strategies, development of standards, studies, etc.;

b) creation of structures and financial and market instruments, including local and regional planning;

c) promotion of systems and equipment to ease the transition from demonstration to marketing;

d) development of information and education structures and utilisation of the results;

e) monitoring, and

f) assessment of the impact of the actions.

It is essential that the European Union provides itself with the resources needed to implement this ambitious action programme on energy against the backdrop of the Community strategy for sustainable development adopted by the European Council in June 2001. The Commission's initial proposal for the former energy framework programme (1998-2002) provided for a budget of EUR200 million for five budget years, which was ultimately brought down to EUR175 million.

Several factors justify an upward revision of the budgetary allowance for this programme compared with the energy framework programme:

Firstly, strengthening is needed for actions flowing from the new policy guidelines, the adopted and planned legislation in the areas of renewable energy sources and energy efficiency and the priority given to the energy aspects of transport in the sustainable development strategy.

Secondly, there is the bolstering of international action, in particular co-operation with the developing countries against the backdrop of the Kyoto mechanisms and the priority given to renewable energy sources by the World Summit on Sustainable Development (WSSD), in Johannesburg.

Finally, there is the need to increase the rate of spread of best practices and technologies in order to increase the utilisation of the programme results.

Consequently, the Commission has proposed an increase of the financial reference amount, resulting in a total budget of EUR 215 million for EU-15 for the four-year period.

3- COMMENTS ON THE COMMON POSITION

(a) General

Based on the success of the previous programmes, this proposal is considered by the Council and European Parliament, as well as by the Commission, to be a key instrument for meeting both renewable and energy efficiency EU objectives and EU international commitments on climate change and sustainable development.

The Spanish and most recently the Danish Presidency have treated this proposal as a matter of high priority and have consequently intensified work in the Council. During both Presidencies a spirit of constructive co-operation and compromise has also prevailed in the discussions amongst the Member States and this has resulted in an improved document.

During the preparation of the first reading in the European Parliament, positions expressed in the Parliament were continuously made known to the Council, providing useful guidance to Member States in developing and negotiating the Common Position. From 39 European Parliament amendments, 22 are fully or partially reflected in the Common Position and 17 rejected.

In general, where the text of the Common Position departs from the Commission Proposal it is for the purpose of clarifying and defining the scope and concepts as set out in the original text.

Concerning the financial reference amount in the text of the Common Position, Member States have reached a compromise on an overall amount of 190 MEUR, 25MEUR lower than the Commission's proposal. Further, Article 6 includes additional conditions for the revision of the budgetary allocation between the four fields and additional provisions for the revision of the programme's financial reference amount, the latter according to the framework of the financial perspectives and taking into account applications received. The Commission can support this compromise.

(b) Main objectives of amendments proposed by the Parliament to this proposal

The European Parliament firmly supported the main parts of the Commission's proposal. An important number of the EP amendments in First Reading were to improve and update the text according to new policy developments both at EU and international level and to provide input in order to clarify, focus and/or extend the programme's definitions, objectives and scope, both in the articles and recitals. Corresponding to these issues, amendments 1-7, 11, 13, 15, 18-21, 27 and 34 have been fully or partially reflected in the text of the Common Position while not amendments 16, 17 and 31. Important references to transparency, gender, public access to documents on project results and other facilitating opportunities, etc. have been added, corresponding to EP amendments 14, 22, 23 and 28.

Building on the new and enhanced EU and world priorities and objectives concerning energy, environment and sustainability, the European Parliament considers that the financial envelope for promotional action in the fields of renewable energy sources and energy efficiency should be increased. (Amendments 32 and 41). In addition, the new field COOPENER should be particularly reinforced in the light of the EU's specific commitment on renewable energy sources at Johannesburg.

The positions of the European Parliament and the Council concerning the financial reference amount are clearly the main point for resolution in order to achieve a final agreement. The European Parliament will certainly consider in this context the revision clause that has been included in the text by the Council during the final discussions.

(c) Other elements of the Common Position in relation to amendments sought by the European Parliament

The Commission's internal programme management and implementation were also addressed. However, amendments (numbers 8, 10, 24, 29, 33, 35, 37-40) related to commitology rules and internal management have not been fully reflected in the Common Position or only partially (amendments 26 and 30). General provisions currently in force should apply and there are no reasons for adapting them solely for the purpose of the management of this programme.

Regarding the proposed amendments 9 and 25 on the creation of a 'traditional' European Energy Agency, no reference has been included in the Common Position. It was felt that such an Agency would address energy policy issues and that therefore a decision on a new programme was not an appropriate instrument for its creation. The Commission intends to proceed at this point in time by creating an 'Executive Agency' to assist in the management of the Community action under the programme. However, this is not within the scope of this decision and a separate proposal for a Decision is in preparation.

4- CONCLUSION

The Commission considers that the Common Position adopted by majority of the Council on 3 February 2003 is generally faithful to the spirit and contents of the Commission's proposal of 10 April 2002, which itself was tabled in response to suggestions of the Council and the European Parliament concerning the continuation of Community action in the framework of energy programmes.

The Commission also considers that the Common Position provides - in line with the proposal adopted by the Commission - for the targeting, reinforcement and improvement of Community action in the fields of energy efficiency and renewable energy sources while extending this action to the energy aspects of transport and to co-operation with developing countries.

The Commission believes that the Common Position has succeeded in retaining the intention of the Commission proposal and in taking into consideration a considerable number of the amendments of the European Parliament.

The Common Position also takes into account new developments of Community policy in the fields of energy, environment and sustainable development although the Commission considers that these new priorities and newly defined objectives have not been fully reflected in the financial reference amount. However, in order to help to reconcile the divergent positions, the Commission has actively contributed to an agreement.. The Commission takes note that the mid-term revision clause provided for in the Common Position foresees an examination and - if appropriate - revision of the reference amount within the framework of the financial perspectives and taking into account applications received.

Concerning the references to transparency and equal opportunities, the Commission believes that these, too, as expressed in the Common Position, are very much in line with the amendments adopted by Parliament.

The Commission therefore commends this Common Position to the European Parliament.

5- Commission's Declaration to the Common Position

While noting the indicative budgetary allocation reflected in the Annex to the Decision, the Commission intends to cover the SAVE and ALTENER fields of actions in a balanced and flexible way over the four years of the programme, taking due account of the quality of projects submitted.