No C 33/20 Official Journal of the European Communities 7. 2. 83 
Opinion on the proposal for a Council Regulation on the payment of financial incentives 
in support of categories of investment in the rational use of energy 
The text referred to the Committee has been published in Official Journal of the 
European Communities No C 285 of 30 October 1982, page 5. 
A. LEGAL BASIS FOR THE OPINION 
On 6 October 1982 the Council referred the abovementioned proposal to the 
Economic and Social Committee in accordance with Article 198 of the Treaty 
establishing the European Economic Community. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 
203rd plenary session held in Brussels on 15 and 16 December 1982. 
The full text of the opinion is as follows: 
THE ECONOMIC AND SOCIAL COMMITTEE, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 198 thereof, 
Having regard to the request made by the Council of 
the European Communities on 6 October 1982 for 
an opinion on the proposal for a Council 
Regulation on the payment of financial incentives in 
support of categories of investment in the rational 
use of energy (•), 
Having regard to the decision taken by its Bureau on 
13 October 1982 instructing the Section for Energy 
and Nuclear Questions to draw up an opinion on 
the matter, 
Having regard to the opinion adopted by the 
above-named Section at its 76th meeting held on 
3 December 1982, 
Having regard to the oral report made by the 
rapporteur, Mr Pearson, 
Having regard to the discussions on 15 December 
1982 during the 203rd plenary session held on 15 
and 16 December 1982, 
HAS ADOPTED THE FOLLOWING OPINION 
unanimously: 
1. The Economic and Social Committee endorses 
what it said in its opinion of 1 July 1982 (2) on the Commission's communication on 'Investment in the 
rational use of energy'(3): that it is essential to 
develop Community projects and programmes 
which aim to promote the rational use of energy. 
The Committee can generally endorse and indeed 
welcomes the present proposal for a Regulation in 
so far as it should help lead to a reduced 
Community dependence on imported oil, and to a 
more effective use of other energy sources. 
With the prospect of ultimately diminishing reserves 
of oil available to the Community in the coming 
decades, the Committee considers it vital in any case 
for the Community to diversify into alternative 
sources of energy. 
2. Whilst generally endorsing the present proposal 
for a Regulation, the Committee would ask the 
Council nonetheless to take careful note of the 
following general and specific remarks before 
committing the Community to a firm Regulation: 
2.1. Categories of investment in the rational use of 
energy eligible for financial incentives 
2.1.1. The Committee sees the four categories of 
investment included in this proposal for a 
Regulation as only a start in the Community's 
campaign to promote the rational use of energy. It 
expects further proposals of the same sort to emerge 
from the wealth of ideas floated by the Commission 
(1) OJ No C 285, 30. 10. 1982. 
(2) OJ No C 252, 27. 9. 1982. (3) OJ No C 107, 28. 4. 1982. 
7. 2. 83 Official Journal of the European Communities No C 33/21 
in its aforementioned communication on investment 
in the rational use of energy. 
Whilst acknowledging that the draft Regulation is 
limited to encouraging certain categories of 
investment in the rational use of energy, the 
Committee would like to see support extended to 
additional categories of rational energy use in the 
future. 
2.1.2. The Committee nonetheless recommends 
that a further (fifth) category of investment be 
included in the present Regulation as eligible for 
financial incentives. The Community should 
encourage investment in plants — both at the level 
of large-scale users, and also at the major ports 
handling imported coal — for the gasification of 
coal. The benefits include the higher thermal 
efficiency represented by this process, and the fact 
that existing distribution networks can be utilized. 
2.1.3. For the future, the Committee suggests that 
assistance for the wider commercial application of 
renewable energy sources, such as wind and solar, 
should be given some priority, particularly where 
this is a logical follow-through from the 
Community's investment in research and 
demonstration projects. 
Selective ways of assisting industry investment in 
energy conservation should also be pursued, 
especially since many sectors of industry face severe 
investment difficulties in the present recessionary 
climate. 
The Committee would also like to see the 
stimulation of rational energy use included in the 
context of a long-term policy for the transport and 
domestic sectors. 
2.1.4. Those categories of investment which the 
Commission proposes should attract financial 
incentive for converting oil consumption into coal 
consumption, should be adapted to include projects 
aimed at using coal and 'other solid fuels' (brown 
coal, lignite and peat), and so stimulate investment 
using these fuel sources too. 
2.2. The interest rebates as a financial incentive to 
investment in the rational use of energy 
2.2.1. The Committee believes on the one hand 
that the Community needs to be prudent in offering 
incentives, lest it lead to distortion of market forces. 
On the other hand, however, it considers stimulation 
of the rational use of energy to be of such 
importance to the long-term interests of the 
Community that the proposed stimulation of 
particular kinds of investment is justified. 2.2.2. The Committee considers that the proposed 
3 % interest rebate should be maintained for the 
duration of the programme. 
2.2.3. The Committee would urge the Member 
States to see this draft Regulation for what it is: a 
proposal to give financial incentives to support 
certain categories of investment in the rational use 
of energy. Decisions to invest in the specific areas 
prescribed, will, however, be determined not only by 
the interest rate rebates offered, but by many other 
factors, which will vary considerably between 
Member States. 
2.3. The relationship between the proposed 
Regulation and the much-needed Community 
coal policy 
2.3.1. The logical outcome of the Community's 
energy strategy, of which this draft Regulation is a 
part, would be an increase in the use of coal in the 
Community by a considerable amount. The fact that 
the Community has as yet no Community policy on 
coal throws up the prospect of a possible conflict 
between coal-importing and coal-producing 
Member States. The Committee believes, however, 
that the provisions of this draft Regulation, which is 
concerned with consumption/use of coal, rather 
than production, should not be the source of such 
conflict. 
2.4. The potential contained in the draft 
Regulation for increasing the use of urban, 
industrial and agricultural waste, etc. 
2.4.1. The Committee sees the proposal to 
encourage the use of urban, industrial and 
agricultural waste as an initial step in realizing the 
very considerable potential for conventional fuel 
substitution offered by these sources (estimated to be 
equivalent to 50 to 60 million tonnes of oil per 
annum or 7 to 9 % of Community energy 
consumption). The Committee believes that the 
opportunity offered by these sources needs to be 
made more widely known in the Community. 
2.5. Proposal for encouraging investment in 
district heating 
2.5.1. Given that an estimated 40% of the 
Community's gross energy consumption is used for 
space-heating and domestic hot water, the 
Committee would draw attention to the considerable 
potential for reducing the consumption of oil and 
No C 33/22 Official Journal of the European Communities 7. 2. 83 
natural gas, which the Regulation could help 
realize. 
2.5.2. The Committee believes it important to make 
an early impact with such schemes to promote 
investment in the rational use of energy. It proposes 
therefore that priority be given, where possible, to 
promoting investment in economic district heating 
schemes for the production of heat for use in space 
Done at Brussels, 15 December 1982. heating and for industrial and domestic hot water in 
high density housing and industrial estates. 
2.6. Proposal for investment in operations related 
to the preparation of coal 
2.6.1. The Committee believes it essential for 
'power station' to be clearly defined in the 
Regulation. 
The Chairman 
of the Economic and Social Committee 
Francois CEYRAC