NoC 188/10 Official Journal of the European Communities 14.7.83 
II 
(Preparatory Acts) 
COMMISSION 
Amendment to the proposal for a Council Regulation on the payment of financial 
incentives in support of categories of investment in the rational use of energy (') 
(Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty 
on 22 June 1983) 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 235 thereof, 
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, pursuant to Article 2 of the Treaty, the 
Community has as its task to promote throughout the 
Community a harmonious development of economic 
activities, a continuous and balanced expansion and 
an increase in stability; 
Whereas there exists in this context a critical need for 
the Community to diversify its energy supplies and 
to switch away from oil to alternative forms of 
energy; 
Whereas it is also important in this context that the 
structure of energy demand should be modified so as 
to reduce substantially and permanently the constraint 
which excessive energy dependence still imposes on 
the economic activity of the Community; 
Whereas at the same time the structure of demand for 
energy cannot be sufficiently modified without a 
volume of investment markedly higher than that 
which has so far been made in the Community as a 
whole; 
Whereas in the present situation many producers and 
consumers hesitate before making the requisite 
investments, particularly as a result of the uncertainty 
about the prospects of the economy or in respect of 
energy; 
O OJ No C 285, 30. 10. 1982, p. 5. Whereas, despite the national measures already 
introduced to encourage investment, the volume of 
investment in energy — and especially in the rational 
use of energy (0,4 % of gross domestic product 
(GDP) in 1980) — has remained insufficient; 
Whereas the Community should therefore provide an 
additional active aid to investment in the rational use 
of energy; 
Whereas certain categories of investment in this field 
are especially important in ensuring the achievement 
of the energy policy objectives, particularly the 
diversification of sources of energy and the modifying 
of the pattern of demand, and in consequence are of 
great public interest; 
Whereas this applies to investments designed to 
exploit industrial waste heat, or recover heat from 
waste or to encourage the use of solid fuel in the 
production of heat for district heating systems; 
Whereas this also applies to investment enabling firms 
to replace more rapidly oil-fired plant by coal-fired 
plant using novel high-yield techniques; 
Whereas this applies equally to investments in the 
preparation of coal to render this fuel economically 
attractive for use in heat-generating plant the 
location, size, and fuel requirements of which vary 
widely; 
Whereas this applies equally to investments designed 
to produce energy from urban, agricultural and 
industrial waste, and also from agricultural by­
products ; 
Whereas the commitment of these categories of 
investment encounters economic and financial 
obstacles arising from uncertainty about the future 
course of energy prices, the long payback period 
generally required for investment, the cost of 
equipment, high and unstable interest rates, cash flow 
14.7.83 Official Journal of the European Communities NoC 188/11 
constraints on commercial enterprises and budgetary 
constraints which restrict the activity of certain 
organizations, especially local authorities; 
Whereas there is a need to bring into play the 
Community's lending instruments which are suitable 
for accelerating the implementation of investment 
projects falling under one of the four headings set out 
above, these investment projects having been hindered 
hitherto by the obstacles and uncertainties referred to 
above; 
Whereas the granting of a specific incentive funded 
from the budget of the European Communities — 
and associated with, and where appropriate additional 
to, other national or Community incentives — would 
be capable of initiating or accelerating the decisions 
to invest; 
Whereas, in this context, it is appropriate that 
investors granted loans under the terms of Article 54 
of the ECSC Treaty should also be eligible for such 
incentives; 
Whereas such investments are likely to have 
significant positive effects on economic and industrial 
activity, competitiveness and hence on employment; 
Whereas the granting of these aids by the Community 
must not affect the conditions of competition in a 
manner incompatible with the relevant principles set 
out in the Treaty; 
Whereas the Treaty does not provide the specific 
powers necessary for these purposes, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Investment which falls within one of the four cate­
gories set out below and which is in receipt either of 
loans granted by the European Investment Bank from 
its own resources, or of loans granted under the 
Council decisions empowering the Commission to 
contract loans under the New Community 
Instrument, or of loans granted under Article 54 of 
the ECSC Treaty, may receive a specific incentive 
granted in the form of an interest rebate: 
Category 1: 
investment in heat generation for district-heating 
systems using industrial waste heat, solid fuels and 
waste material and for combined heat and power 
systems designed to use the waste heat from existing 
power stations and industrial plants. Category 2 : 
investment in the conversion of industrial fuel-oil-
fired plant to solid fuels such as coal, lignite and peat. 
Category 3: 
investment in operations related to the preparation of 
solid fuels for users other than power stations and 
coking plants including gasification granulation and 
mixtures of oil and water. 
Category 4: 
investment in the generation of energy from urban, 
agricultural and industrial waste and from agricultural 
by-products. 
Article 2 
Subject to approval of the granting of a subsidized 
loan, the Commission shall decide on the eligibility of 
projects for an interest rebate in accordance with the 
following guidelines: 
— the investment must be consistent with the energy 
objectives of the Community, 
— the investment must make use in an efficient 
manner of adequately proven technology, 
— the investment must be consistent with the 
provisions of the Treaty and of derived 
legislation, particularly in the area of competition, 
in addition to Community regulations and policies 
which apply to the cases in question. 
Article 3 
1. Subject to the provisions of Article 5 (2), the 
rate and duration of the interest rebate referred to in 
paragraph 1 shall be as follows: 
— 3 % per annum for a period of 10 years in the 
case of category 1, 
— 3 % per annum for a period of five years for 
categories 2, 3 and 4. 
2. When the interest rebate applies to ECSC loans, 
the sum is paid directly to the investor. In all other 
cases, it will be paid to the EIB. 
3. Where appropriate in the view of the Commission 
and EIB, the interest rate rebate may be wholly or 
partly capitalized in order to provide a postponement of 
principle and/or interest payments for up to two 
years. 
Article 4 
The procedure governing applications for subsidized 
loans, their payment and their administration will be 
in accordance with the rules and procedures 
governing each of the individual lending instruments 
listed in Article 1. 
No C 188/12 Official Journal of the European Communities 14.7.83 
Article 5 
The financial incentives provided for in Article 1 of 
this Regulation may be additional to: 
(a) the subsidy of certain loans granted in the context 
of the European Monetary System and to aids 
paid from the Regional Development Fund; 
(b) subsidies which may in certain cases be granted 
under Article 54 of the ECSC Treaty. In this case 
the rate and duration of the rebate granted in 
respect of this Regulation shall be limited to 2 % 
per year over five years; 
(c) existing national aids, subject to conditions to be 
fixed by the Commission. 
Article 6 
Sums payable in respect of incentives granted under 
this Regulation shall be paid by the Commission from the appropriations provided for this purpose in the 
general budget of the European Communities. 
Article 7 
1. Provisions for the implementation of this Regu­
lation shall be adopted by the Commission. 
2. Except in respect of rebates on ECSC loans, the 
application of this Regulation shall be covered by a 
Cooperation Agreement between the Commission and 
the European Investment Bank. 
Article 8 
This Regulation shall come into force on 1 January 
1983; it shall apply until 31 December 1987. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.