COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 36 final 
Brussels, 14 February 1991 
COMMUNICATION FROM THE COMMISSION 
on 
EUROPEAN ENERGY CHARTER 
COMMUNICATION FROM THE COMMISSION 
on 
A European Energy Charter 
Introduction 
1. In Dublin on 25 and 26 June 1990 the European Council asked the 
Commission to examine the Dutch Government's proposal to set up a 
European energy network. 
The memorandum submitted in Dublin by the Dutch Prime Minister, 
Mr Lubbers, proposed establishing a European Energy Community to 
capitalize on the complementary relationship between the European 
Economic Community, the USSR and the countries of Central and 
Eastern Europe. In late August the Dutch administration followed 
this up by sending the Commission a note giving further details on 
some of the points raised in the original memorandum. At the end 
of the year a second version of this note, dated 17 December, was 
submitted. 
2. Having taken into consideration different formal and informal 
communications from several Member States, President Delors, at the 
CSCE Summit in Paris on 21.11.90, developed the ideas of the 
Commission on the possible content of a European Energy Charter. In 
particular, he indicated that the central objective of energy 
policy is to ensure security of supply in conditions which allow 
the competitiveness of the economy and the well-being of our 
people to grow, at the same time creating a stable and advantageous 
situation for energy producers. 
3. A European Energy Charter could create a climate of confidence 
propitious for optimum utilization and allocation of resources. It 
would contribute towards diversifying sources of supply and 
integrating the environmental dimension. 
4. In Rome on 14 and 15 December 1990, the European Council concluded 
that long-term cooperation was needed in Europe and called for an 
international conference to be convened in 1991 to draft a European 
Energy Charter. 
The Commission of the European Communities therefore supports the 
proposal to invite all countries concerned to a conference to draft 
such a Charter. The objective is to compile a detailed list of the 
principles and rules of the game which will be applied in their 
dealings with each other and with the rest of the world. 
The Charter would provide a framework for discussing, and 
subsequently deciding on, specific forms of cooperation in Europe 
which would be covered by separate protocols on each issue. 
5. The interest of such a Charter between the countries concerned 
lies in the complementary relationship in Europe between the owners 
of the resources, the holders of the advanced technologies and 
knowhow, and the consumer markets. 
The Charter should clearly express this interdependence in the 
energy field in Europe and increase the awareness of the shared 
iosponsibiIity foi tho supply and onviionmont.il problems. From all 
these points of view, all European citizens would benefit from 
effective implementation of the Charter. The Charter could also 
provide an opportunity for a formal declaration of the new spirit 
of cooperation throughout Europe. 
6. This objective finds itself fully integrated within the energy 
policy which the Commission wishes to promote and which consists 
of ensuring the security of supply in the Community with a view to 
completing the internal energy market and providing an external 
relations policy to back it up. 
The European Energy Charter fits in fully with this strategy. 
7. Such a Charter would provide the European Community with a new 
framework allowing an expansion of trade which, in turn, would add 
to the stability of its entire energy supply. 
The countries of Central and Eastern Europe would obtain the 
assistance they need for economic recovery and for obtaining energy 
supplies under conditions allowing a cleaner environment, a better 
balance between different energy sources and more efficient use of 
energy. 
Finally, for the Soviet Union, this expansion of its energy market 
and closer cooperation can be expected to raise the resources for 
modernization of the Soviet energy industry. 
8. However, despite the obvious benefits of this approach to all 
involved, Europe must not isolate itself from the rest of the 
world. On the contrary, it must contribute towards a more dynamic 
world economy and favour development of the synergy between those 
countries having reciprocal interests in the energy domain in 
Europe. 
9. Concerning as it does the activities of enterprises and 
interventions by public authorities in the energy sector, the 
Community confirms its commitment to a rigorous competition policy, 
taking into account the specifications of the different energy 
markets. The principles of this competition policy must be 
implemented in order to liberalise trade, extend consumer choice, 
increase the competitiveness of enterprises and ensure security of 
supply. 
A. INSTITUTIONAL ASPECTS 
10. By nature, the European Energy Charter should be a form of code of 
conduct which the signatories agree to observe and enforce. 
3 
The Charter will have to be implemented by a series of specific 
agreements or protocols imposing binding obligations on the 
signa toi los. In piactico, those wou I (J havo tho forco of 
international legal acts binding the parties in good and due form. 
These agreements would aim to adapt the principles defined in the 
Charter to the particular situation of each energy sector. 
Commercial contracts between enterprises would thus be concluded 
respecting the rules contained in these agreements. 
B. CONTENT OF THE CHARTER 
11. The Charter must set out a series of principles, objectives and 
methods to be applied by each country signing it. 
(A) Pr indoles 
12. The recitals or introduction to the Charter should refer to the 
commitments given in the Paris Charter adopted at the CSCE Summit 
on 21 November 1990. 
13. Subsequent recitals could refer more specifically to the need for 
developing cooperation and interdependence in the energy field as a 
more effective means of sharing responsibility for security of 
supply, the environment and optimum, and efficient use of 
resources. 
In this respect, mention must also be made of the need to allow 
maximum use of market forces and of the shared desire to help them 
work. 
(B) Object ives 
14. After the recitals setting out the general principles, the body of 
the Charter must define the signatories' specific energy policy 
object ives. 
To this end, it should first proclaim the signatories' will to 
ensure greater security of supply under satisfactory economic 
conditions and to promote the construction of a large European 
energy market taking due account of environmental protection 
requirements. 
15. This spirit of cooperation should give birth to a series of common 
objectives, each logically following on from the other and falling 
under three headings: 
(i) expansion of trade in energy; 
(ii) cooperation and coordination in the energy field; 
(iii) optimum use of energy and environmental protection; 
(C) Implementat ion 
16. The body of the Charter must also specify the means which the 
signatories agree to employ in order to attain each of these 
objectives. Six should be noted at this juncture: 
(i) access to resources-, 
(ii) conditions for exploitation of rosourcos; 
(Ml) rules on investment a ; 
(iv) free trade in energy; 
(v) cooperation on product standards and quality; 
(vi) research, development and innovation. 
Access to resources 
17. The top priorities for the declarations in the Charter on this 
subject must be: 
(i) non-discriminatory, transparent rules on the exploration, 
development and acquisition of resources (including the 
principles governing ownership or sharing of resources); 
(ii) introduction of mining rights applicable to all operators; 
Exploitation of resources 
18. The Charter should declare the principles of non-discrimination and 
transparency with regard to: 
(a) the law on ownership; 
(b) the rules on the operation of companies. 
The countless laws, rules and administrative regulations on 
operation of the industry vary from one country to another. The 
principles set out above must be applied in particular to: 
(i) ownership of resources; 
(ii) operation of companies' management boards; 
(Hi) rules on taxation; 
Rules on investments 
19. This is a key consideration for any industrial activity but it is 
all the more important for the energy industry, with its 
exceptionally heavy investments and long pay back times. The 
provisions on protection of investments could draw on the general 
principles laid down in the existing international law. 
The right to repatriate profits and to obtain or use the 
convertible currency needed must be guaranteed. 
Free trade 
20. Freedom of trade cannot be divorced from the development and 
diversification of resources. The Charter must, therefore, also 
seek to boost trade in energy in Europe. Some of the issues this 
raises include: 
(i) the need to expand the main transmission grids; 
(ii) the will to promote interconnection of the grids; 
(iii) removal of the technical, legal, administrative or tariff 
barr iers to trade; 
(iv) acceptance and enforcement of the right of transit; 
(v) promotion cf international trade; 
Technical specifications and safety rules 
21. Free movement of energy products calls for a European-wide 
approximation of the quality standards and requirements imposed on 
the energy industry or mutual recognition of the rules on the 
subject. Amongst other things, this will entail: 
implementation of technical specifications, rules and 
conformity test systems which aim to ensure a high level of 
protection regarding health, the environment, and the interest 
of consumers and workers; 
elaboration to this effect of a common agreement on such 
technical specifications and common rules or a movement to 
mutual recognition of their specifications and rules. 
High standards must be maintained on safety and the protection of 
health, the environment, and consumers' and workers' interests. 
Research, technological development and innovation 
22. All the signatories should declare their will: 
(i) to promote exchanges of technology and participate in joint 
R&TD activities; 
(ii) to cooperate on application of the new technologies 
emerging from the R&TD, for example, by taking part in 
pilot or demonstration projects; 
(iii) to stimulate the application of technological innovations; 
(iv) to guarantee the free movement and dissemination of new, 
energy-efficient technologies throughout Europe (subject to 
the international rules on industrial and commercial 
property); 
(v) to conduct the requisite information and training 
campaigns. 
C. SPECIFIC INTERNATIONAL AGREEMENTS 
23. Protocols or specific Agreements implementing the Charter will be 
signed to lay a firmer foundation for attaining the objectives of 
the Charter and for setting up the instruments required. 
Each protocol will contain: 
(a) a description of the form of cooperation envisaged; 
(b) details of the resources to be deployed (budget, regulations, 
staff, etc.); 
(c) a list of the countries participating and of the specific 
commitments made by each of them to the measures planned; 
(d) the duration of the measures and commitments. 
24. Several specific areas in which cooperation would be of benefit to 
all involved can be pinpointed already. For example, the 
implementing agreements could cover: 
(i) nuclear energy and safety improvements in this field; 
(ii) mining and clean coal technologies; 
(iii) efficient use of energy (rational use and energy saving); 
(iv) development of renewable energy sources; 
(v) use of natural gas and transmission via high-pressure gas 
p i peIi nes; 
(vi) modernization of power stations, interconnection of power 
grids and transmission of electricity via high-voltage 
power Iines; 
(vii) use and transportation of oil and modernization of 
ref iner ies; 
(viii) transfers of technology and encouragement of innovation. 
D. MANAGEMENT OF THE CHARTER 
25. Adequate arrangements will have to be made for checking that the 
principles laid down in the Charter and the specific international 
Agreements are implemented properly. 
The European Community could suggest convening a Ministerial 
Conference once a year for this purpose and setting up an 
arbitration board to settle any disputes on interpretation or 
application of the international agreements adopted to implement 
the Charter. 
An ad hoc secretariat reflecting the composition of the signatories 
will be charged with the effective implementation of the Charter 
and the specific Agreements. It could call on the services of other 
interested specialist organisations in the energy field. 
As a transitional measure, and if necessary, the Commission of the 
European Communities could monitor and coordinate the action taken. 
E. TIMETABLE 
26. The Communication accompanied by the indicative draft of the 
Charter will be sent to the Council in February 1991. 
27. The Community will convene an International Conference with a view 
to commencing negotiations with the third world countries concerned 
by the second half of 1991 at the latest. 
This Conference could meet periodically with a view to finishing 
its work before the end of the year. 
EUROPEAN ENERGY CHARTER 
The representatives of the Governments of the States and the 
representatives of the European Community participating in the 
Conference, the President of the Council and the President of the 
Commission of the European Communities meeting in ... on ..., 
Having regard to the Paris Charter for "a new Europe" signed in Paris 
on 21 November 1990 following the Conference on Security and 
Cooperation in Europe; 
Having regard to the report on the conclusions and recommendations of 
the CSCE meeting in Sofia on 3rd November 1989, on the protection of 
the environment, 
Having regard to the document adopted in Bonn on 11th April 1991 by the 
CSCE conference on economic cooperation in Europe, 
Anxious to give formal expression to this new desire for a European-
wide cooperation based on mutual respect in order to create the 
conditions for reducing tension and imbalance within the international 
commun i t y, 
Aware that there are problems of reconstruction and restructuring in 
the countries of Central and Eastern Europe has slowed down and that it 
is desirable for the European Community and all the countries concerned 
to participate in joint measures to bring about the economic progress 
which is essential if the reforms undertaken in these countries are to 
be successful, 
Certain that making use of the complementary features of Europe where 
energy is concerned will benefit the world economy, 
Persuaded that energy is essential for economic progress and more 
generally for social development and a better quality of life, 
Convinced that there exists in Europe a common interest in problems of 
energy supply, safety of industrial plants, particularly nuclear plant, 
and environmental protection, 
Concerned to do more to attain the objectives of security of supply, 
optimum management of resources and efficient use of resources, 
Assured of support from the European Community in view of the 
increasingly important role it is playing in energy policy, 
particularly through completion of the internal energy market, 
Resolved to promote a new model for energy cooperation in the long term 
in Europe within the framework of a market economy, 
Eager to establish a climate of confidence so as to be able to 
capitalize on the existing complementary features and to establish 
closer, mutually beneficial commercial relations, 
S 
Convinced of the importance in this connection of improving energy 
infrastructure, 
Aware of the consequent need to develop technological cooperation and 
to promote the free movement of energy products in order to increase 
trade throughout the continent of Europe, 
Affirming that their energy policies are linked by interests common to 
all their countries and that they should be implemented in accordance 
with the principles set out below, 
Affirming the essential importance of improving the production, 
transport and efficient use of energy with due regard for the 
environment in the perspective of a market covering the whole continent 
of Europe, 
Affirming, finally, their desire to take the consequent action and 
apply the principles set out below, 
HAVE ADOPTED THE FOLLOWING DECLARATION CONSTITUTING THE "EUROPEAN 
ENERGY CHARTER" 
Title I : OBJECTIVES 
With a view to improving security of supply on the most satisfactory 
economic basis and developing energy activities with due regard for the 
environment, the signatories agree to promote the construction of a 
large European energy market. 
To this end, they consider it necessary to take action in the following 
f ieIds: 
1. Expansion of trade in energy, which will be achieved by means of: 
a free market in energy; 
free access to known and future energy resources and exploitation 
thereof on the basis of long-term profitability; 
removal of technical or administrative barriers to trade and 
modernization, renewal and rationalization of the installations for 
the production, transfer and use of energy; 
development of infrastructure. 
2. Cooperation and coordination in the energy field, which will 
entai I : 
access to technical and economic data; 
formulation of laws allowing all concerned to exploit the 
resources; 
harmonization at a high level of the technical specifications and 
safety rules applicable to energy products and installations; 
research, technological development and demonstration projects. 
3. Optimum use of energy and environmental protection, which wi 
imply: 
the development of new and renewable energy sources-, 
greater energy savings; 
measures to combat pollution. 
Title I I : IMPLEMENTATION 
In order to attain the objectives set out above the signatories agree 
to take joint action in the following fields: 
access to resources; 
exploitation of resources; 
rules on investment; 
free trade; 
technical specifications and rules on security and safety-, 
research, technological development and innovation. 
1. Access to resources 
Considering that optimum development of natural resources is a 
sine qua non for attaining the objective of establishing a large 
European energy market, the signatories agree to facilitate access to 
resources by the interested operators. 
To this end, they shall ensure that the rules on the exploration, 
development and acquisition of resources, including the rules on 
exclusive ownership or sharing of resources, are transparent and 
non-discriminatory. 
They recognize the need to formulate such rules on mining rights 
wherever this has not yet been done. They agree to take all necessary 
measures to coordinate their action in this area. 
2. Exploitation of resources 
Aware of the need to be able to put the available resources on the 
entire market, the signatories agree on the need to remove all 
discrimination and barriers of any kind to the exploitation of such 
resources. 
With a view to facilitating the development and diversification of 
resources, the signatories agree to avoid imposing discriminatory rules 
on operators, notably rules governing the ownership of resources, 
operation of companies' management boards, internal management of 
companies and taxation. 
3. Rules on investments 
Considering that protection of investments is fundamental for their 
development, the signatories guarantee the right to repatriate profits 
and to obtain or use the convertible currency needed. 
They shall ensure that the existing international rules on investment 
and trade are applied. 
lhoy shall cooidinate their rules on company accounts. 
4. Free trade 
In order to promote the growth and diversification of trade, the 
signatories undertake progressively to remove the barriers to trade 
with each other in energy products, including the obstacles to the 
transit of such products across their territory. 
They will encourage the development of the main international 
transmission grids, their opening up to users and their 
interconnection. To this end, they shall ensure the compatibility of 
the technical specifications governing the installation and operation 
of such grids, notably the stability of electricity grids. 
5. Technical specifications and rules on safety 
To promote 
signator ies 
agreements: free movement of energy products and equipment, the 
shall, with due regard to the existing international 
apply technical specifications, rules and conformity test systems 
designed to maintain high standards on safety and the protection of 
health, the environment, and consumers' and workers' interests-, 
to this end, formulate such technical specifications and common 
rules by joint agreement or agree to the mutual recognition of 
their specifications and rules. 
6. Research, technological development and innovation 
The signatories agree to promote exchanges of technology and 
cooperation on their research, technological development and innovation 
act ivit ies. 
To this end, they shall encourage-. 
the preparation of pilot or demonstration projects; 
the application of technological innovations; 
the dissemination of know-how and new technologies. 
This action shall be taken subject to the international 
protection of industrial and commercial property. 
Title III: SPECIFIC AGREEMENTS rules on the 
In order to pursue the objectives of the Charter and implement it 
pursuant to Titles I and II, specific agreements shall be concluded 
between the States concerned and the European Community, signatories of 
the Charter. 
The agreements shall be 
organ i zat ions concerned. open to other States or internationa 
Each agreement shall be concluded for a limited duration and shall 
include: 
a description of the form of cooperation envisaged; 
details of the financial and administrative resources to be 
deployed. 
These specific agreements will give priority to: 
nuclear energy and improvements in reactor safety; 
mining and clean coal technologies; 
efficient use of energy; 
development of renewable energy sources; 
use of natural gas and transmission via high-pressure gas 
pi pelines; 
modernization of power stations, interconnection of power grids and 
transmission of electricity via high-voltage power lines; 
use and transportation of oil and oil products and modernization of 
ref iner ies; 
transfers of technology and encouragement of innovation. 
Title IV: ADMINISTRATION OF THE CHARTER 
The representatives of the signatories shall confer at least once a 
year on application of this Charter. In particular, they shall review 
the measures taken, potential future developments and the 
infrastructure needed. 
An ad hoc secretariat reflecting the composition of the signatories 
will be charged with the effective implementation of the Charter and 
the specific agreements. It could call on the services of other 
interested specialist organisations in the energy field. 
As a transitional measure, and if necessary, the Commission of the 
European Communities shall monitor and coordinate the action taken. 
Title V: SETTLEMENT OF DISPUTES 
Disputes regarding the interpretation or application of the 
international agreements signed under this Charter shall be submitted 
to an Arbitration Board if they cannot be settled directly between the 
signatories concerned. 
Each party in a dispute shall take the necessary steps to ensure that 
the decision of the Arbitration Board is implemented. 
"«9» 
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