No C 310/32 Official Journal of the European Communities 30. 11. 81 
Opinion on the communication from the Commission to the Council on the review of i nergy 
policy objectives for 1990 and Member States' investment programmes 
The opinion of the Committee is not based on any text. 
A. LEGAL BASIS FOR THE OPINION 
At its 187th plenary session held on 29 and 30 April 1981 the Committee, acting on a proposal 
from the Bureau, decided to deliver an opinion on the abovementioned subject on its own 
initiative. 
B. OPINION OF THE ECONOMIC AND SOCIAL COMMITTEE 
The Economic and Social Committee prepared its opinion on the above matter at its 190th 
plenary session held in Brussels on 23 and 24 September 1981. 
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 235 
thereof, 
Having regard to its decision of 29 April 1981 to issue an 
initiative opinion on the communication from the 
Commission to the Council on the review of energy, 
policy objectives for 1990 and Member States' investment 
programmes, 
Having regard to the Bureau's decision of 28 April 1981 
to instruct the Section for Energy and Nuclear Questions 
to draw up an opinion and report on the matter, 
Having regard to the opinion which the Section for 
Energy and Nuclear Questions issued at its 64th meeting 
held on 4 September 1981, 
Having regard to the discussions at the 190th plenary 
session held on 24 September 1981; 
Having regard to the oral report made at that meeting by 
Mr Margot, the Rapporteur, 
HAS ADOPTED THE FOLLOWING OPINION 
by a majority with two votes against and eleven 
abstentions. 
1. General comments 
1.1. In 1979 the Committee issued an opinion on its 
own initiative on the communication from the 
Commission to the Council on energy objectives for 1990 and the programmes of the Member States (COM(78) 
613 final and Official Journal of the European 
Communities No C 227 of 10 September 1979). This 
communication was intended in the first instance to form 
the third report to the Council on the implementation of 
the objectives for 1985; the communication did, 
however, also set out for the first time energy objectives 
for 1990. The Commission's forecasts for the additional 
period of 1985 to 1990 were based on the forecasts 
forwarded by the Member States. 
1.2. Following the Council's Decision of 9 June 1980 
on energy policy and the convergence of Member States' 
energy policies which called for a continuous assessment 
of the energy objectives and the energy policies of the 
Member States, the Commission issued a report in a 
communication to the Council dated 25 February 1981. 
This communication, which is the subject of our opinion, 
analyses the progress made towards the achievement of 
the Community's objectives for 1990 and the suitability 
of the investment plans by examining the national 
programmes. 
1.3. The role of the EC policy vis-a-vis the policies of 
the Member States has been summed up by 
Commissioner Davignon in the following terms: 
'(a) coordinated action to deal with short-term crises, 
and to share the burden of shortages fairly so that 
economic damage to the Community as a whole is 
minimized; 
(b) harmonization of national policies, so that 
equivalent results (e.g. in energy saving) are 
achieved by means best suited to each country. The 
Commission provides the necessary critical 
analysis, and works for the adoption of common 
basic principles, throughout the Community - e.g. 
on energy pricing, the role of coal, nuclear; 
30. 11. 81 Official Journal of the European Communities No C 310/33 
(c) agreement on goals. The Commission makes the 
original proposals and monitors achievement. 
Performance must of course be judged in the light of 
developments in the economic situation; 
(d) cooperation in advanced technology (R&D and 
demonstration projects). The Commission initiates 
and has sometimes a management role and 
sometimes a coordinating role; 
(e) action within a Community legal framework e.g. to 
establish energy saving norms and standards, or 
where necessary to protect the common market 
(avoiding obstacles to trade); 
(f) coordination of external policies e.g. energy part of 
North/South dialogue, relations with producers of 
oil and other energy raw materials, energy aid to 
developing countries.- The roles of the Community 
and Commission are still evolving.' 
The present Commission communication primarily 
examines the situation in the Member States in the light of 
the Council Resolution on energy objectives for 1990 and 
the above definition of the role of Community policy. 
A second part of the communication deals at length with 
the question of energy savings which will shortly be the 
subject of a specific report. The third part of the 
communication deals with investment policy and 
examines whether the funds available at present for 
investments in the energy field are adequate to promote 
the achievement of the Community's objectives. 
1.4. In this own-initiative opinion the Committee has 
deliberately avoided reiterating the standpoints set out in 
earlier opinions with regard to energy policy in general 
and the various aspects of this policy. The Committee has 
sought to concentrate its remarks on the Commission's 
analysis of both the energy objectives for 1990 and the 
investment programmes of the Member States. 
1.5. The Committee wishes to express its satisfaction 
that progress towards the achievement of the 
Community's objectives for 1990 and the suitability of 
the investment plans are being monitored. The 
Committee does, however, regret that the information 
contained in the previous communication from the 
Commission on the implementation of the objectives for 
1985 has not been subjected to a new appraisal. The 
achievement of these latter objectives can give increased 
credibility to the 1990 objectives or draw attention to the 
need to update these objectives. 1.6. The Committee notes that the Commission takes 
the view that the economic forecasts on which the 
Member States have based their programmes should be 
reviewed downwards. The economic growth forecast of 
3-2% has therefore been reduced to 2-5%. The 
Committee fears that, in the light of recent developments, 
economic growth may be further reduced. The 
subsequent fall in energy consumption would in no way 
be indicative of an appropriate energy policy but of a 
regrettable continuation of the recression. 
1.7. The Committee feels that as regards the trend in 
energy consumption it would be useful to assess the role 
played by the recession and by other factors, including the 
energy policies pursued by the Member States. 
In view of the slow-down in economic growth, the 
Committee is also anxious that the impact of energy 
policy on employment should be examined. 
1.8. The Committee also notes that whilst the 
Commission considers that the postulated ratio of 0 • 7 
between energy growth and economic growth can be 
achieved, it believes that oil consumption is likely to 
account for 43 % of total energy consumption rather than 
40 %. This forecast is ascribed to the fact that investment 
programmes in the field of electricity generation from 
coal and nuclear power are behind target and the use of 
renewable energy sources is getting under way slowly and 
will therefore only be able to contribute marginally to 
total energy supplies during the forecast period. The 
Committee is sceptical about the 0-7 ratio between 
energy growth and economic growth. It attaches more 
importance to the energy consumption/GNP unit ratio 
which permits a more accurate assessment of real energy 
savings, irrespective of variations in general economic 
activity. 
1.9. Attention has already been drawn in the ESC 
opinion (') to the need for the Community's energy 
objectives to form an integral part of its relations with 
non-EEC countries; this is necessary to contribute to a 
better balance between energy supply and demand at 
international level via an expansion of energy supplies 
coupled with action to promote rational energy 
consumption; the Committee would once again stress this 
point. In view of the direct effects of the insolvency of the 
developing countries on economic growth in European 
countries, the Committee considers that it is also in the 
interest of the European Community to help to reduce the 
energy dependency of the non-oil LDCs particularly by 
promoting the prospection for and use of their domestic 
energy sources and by encouraging rational energy use. 
(') OJ No C 227, 10. 9. 1979, p. 6. 
No C 310/34 Official Journal of the European Communities 30. 11. 81 
2. SPECIFIC COMMENTS 
2.1. Examination of the guidelines 
2.1.1. In the context of the relation between the 
consumption of primary energy and the GNP the 
Committee calls upon the Commission continuously to 
review the data on which the energy objectives are based 
in the light of the medium-term economic policy 
programmes and the development of the economic 
situation. 
2.1.2. The Committee is pleased to note that the 
Commission no longer contents itself simply with noting 
the data provided by the Member States in connection 
with oil consumption; it also makes critical comments on 
the policies being pursued in the light of the need to limit 
the energy dependence of the Community. In this context, 
full account must, however, be taken of the specific 
situation of each of the Member States, both as regards 
their socio-economic priorities, their own energy sources, 
the state of development of these resources and the 
structure of industry. 
2.1.3. Though the postulated increase in electricity 
generated from solid fuels or nuclear power may appear 
to be feasible from an overall point of view, it is clear that 
the policies followed by the various Member States in this 
field diverge very considerably and that the use of 
hydrocarbon fuels in power stations is declining too 
slowly. The Committee feels that action in this area must 
^be better coordinated and that account should be taken of 
the specific circumstances of each Member State. 
In this connection, the Committee recalls its opinion on 
Energy Objectives for 1990 (') which urges that priorities 
for the implementation of nuclear plant construction 
programmes and programmes for the storage and 
treatment of radioactive waste should be linked to a more 
intensive campaign to maintain and develop the safe use 
of nuclear energy and to provide objective information in 
this area. 
Moreover, the Committee feels that the total direct and 
indirect costs and benefits of nuclear-based electricity 
generation should also be consistently and thoroughly 
monitored. 
2.1.4. Although the percentage of total EC energy 
requirements covered by renewable energy sources by 
1990 is to remain very small, the Committee shares the 
Commission's view that increased efforts must be made in 
(') OJ No C 227, 10. 9. 1979, p. 6. this respect, particularly by means of a better exchange of 
information on the work being carried out in the various 
Member States and the results of this work. The 
Committee also feels that more specific support should be 
given to pilot projects into renewable energy sources. 
2.1.5. The Committee broadly endorses an energy 
price policy in line with real energy price trends. The 
inflationary effect of increases in energy prices must 
however not be ignored. On the other hand, trends in 
energy prices must not be considered solely from the point 
of view of possible economies; account must also be taken 
of social aspects and the real needs of both industrial and 
private consumers. 
The Committee notes moreover that differences in the 
price of energy products in the Member States cannot be 
ascribed solely to a lack of domestic energy sources or to 
the energy policy being pursued. Differences in taxation 
dictated inter alia by budgetary considerations are also a 
factor here. 
2.2. Energy saving 
2.2.1. The Committee shares the view of the 
Commission that the fall in energy consumption brought 
about by the economic crisis should encourage rather 
than discourage efforts to reduce energy consumption. 
Many Member States have a lot of ground to make up as 
regards the rational use of energy. 
2.2.2. The Committee attaches considerable 
importance to appropriate action to inform and educate 
the public. Steps must be taken to prevent an increase in 
oil supplies accompanied by lower demand leading to a 
decline in the energy savings fostered by the oil crisis. The 
need to curtail our dependence on imported energy must 
be emphasized, inter alia in the light of rising energy costs 
which are an obstacle to economic recovery, in particular 
because of their impact on the balance of payments. 
2.3. Investments 
2.3.1. The Commission's review of energy investment 
projects is based on data supplied by the Member States. 
This data may have been influenced by a desire to portray 
government policy in a favourable light and should 
perhaps be treated with caution. 
2.3.2. The Committee notes that, as stated in the 
Commission communication, energy investment 
projects in most Member States are hampered by public 
unease about the development of nuclear energy and coal 
and by uncertainty about trends on the energy market. 
The Committee feels that the impact of public opinion 
30. 11. 81 Official Journal of the European Communities No C 310/35 
should not be ignored. The Member States must, at all 
events, take account of the democratic decision- making 
process based on objective information. 
2.3.3. In connection with efficient energy use, the 
Committee attaches considerable importance to 
consistent management of energy. Energy-saving 
investment in undertakings must be encouraged and 
attention must also be given to optimal siting of power 
stations (i.e. decentralized and near to areas of 
consumption) in order to minimize the considerable 
transmission losses which occur when electricity is 
transmitted over long distances. Surplus capacity in 
specific regions must also be used to meet demand in other 
regions. 
2.3.4. The Committee also feels that the list of energy 
investments must also cover investments on R & D and 
pilot projects which lead directly or indirectly to energy 
savings. 2.3.5. The cost factor undoubtedly plays a key role in 
the assessment and implementation of energy investment 
programmes. The Committee feels that taxation, capital 
costs and government subsidies - and in particular the 
uncertainty which they create - which can hamper 
investment profitability, must be curtailed as far as 
possible. The Committee also hopes that steps can be 
taken to enable any profits accruing from a realistic prices 
policy to be used for energy investments. 
2.3.6. The Committee realizes that the recession, 
which is compelling a number of undertakings and sectors 
to restructure, may lead to energy-saving investments 
being pushed into second place. State aid to these sectors 
and undertakings must also comprise incentives for 
energy-saving investment. 
2.3.7. The Committee feels that investment in 
renewable energy sources must not be neglected even 
though they will play only a limited role in overall energy 
supplies up to 1990. 
Done at Brussels, 24 September 1981. 
The Chairman 
of the 
Economic and Social Committee 
Tomas ROSEINGRAVE 
ANNEX 
to the opinion of the Economic and Social Committee 
Rejected Amendment 
The following amendment, tabled in accordance with the Rules of Procedure, was rejected during the 
debate: 
Page 35 
Delete the last sentence of 2.3.2: 'The Member States must at all events take account of democratic 
decisions taken on the basis of objective information.' 
Voting 
For: 32, against: 62, abstentions: 13.