COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 531 final 
Brussels, 25.11.1994 
Recommendation for a 
COUNCIL DECISION 
on signature of the Protocol on energy efficiency and related environmental aspects, 
associated with the European Energy Charter Treaty 
(presented by the Commission) 
Recommendation for a 
COUNCIL DECISION 
on signature of the Protocol on energy efficiency and related environmental aspects, 
associated with the European Energy Charter Treaty 
On 21 September 1994 the Chairman of the Conference for negotiations on the 
European Energy Charter (hereinafter referred to as "the Conference") sent the 
parties negotiating the European Energy Charter Treaty ("the Charter Treaty") a 
draft Protocol on energy efficiency and related environmental aspects ("the Energy 
Efficiency Protocol"). This draft Protocol associated with the Charter Treaty is 
the result of negotiations conducted in parallel to the negotiations on the Charter 
Treaty itself. 
The procedure for signature of the Charter Treaty by the European Communities 
is under way.1 Now it is time to start the procedure to enable the European 
Communities to sign the Energy Efficiency Protocol at the same time as the 
Charter Treaty at the signature ceremony planned in Lisbon on 17 
December 1994. 
The negotiations on the Energy Efficiency Protocol revealed how difficult it was 
for the various parties to the negotiations to strike a balance. Some wanted no 
more than a declaration with no binding force, while others wished to conclude 
an agreement containing extremely ambitious commitments, particularly on 
cooperation with the Eastern European countries, and imposing extremely strict 
obligations on rational use of energy and environmental protection. In view of 
the situation in most Central and Eastern European countries and in the Republics 
of the former Soviet Union today, the European Communities sought to obtain a 
text balanced enough to enable these countries to make substantial progress, in the 
long term, in the areas covered by the Energy Efficiency Protocol, without 
attempting to impose unrealistic obligations. 
The Commission considers that the annexed draft Energy Efficiency Protocol 
circulated by the Chairman of the Conference meets this concern to strike a 
balance. Signature of this Protocol by the European Communities will also make 
a major contribution to the objectives of the programmes developed to assist these 
countries (PHARE and TAOS) in the areas covered by the Protocol. 
Communication from the Commission to the Council and the European Parliament 
COM(94) 405 final of 21 September 1994. 
4. In accordance with the procedures agreed by the Conference, the text has been 
adopted by written procedure. In the written adoption procedure, the 
representatives of the Presidency and of the Commission informed the Secrelariat-
Qeneral of the Conference that the European Communities and their Member 
States considered the negotiations on the Energy Efficiency Protocol completed 
and that the annexed text accurately reflected the outcome of the negotiations. 
Consequently, the Commission confirms its view that the outcome of the 
negotiations puts the European Communities in a position to sign the Energy 
Efficiency Protocol at the same time as signature of the Charter Treaty in Lisbon 
on 17 December 1994. 
5. In conclusion, the Commission therefore proposes to the Council: 
to decide on signature of the Protocol on behalf of the European 
Communities; 
and 
to authorize the President of the Council to designate the persons 
empowered to sign on behalf of the European Communities. 
ENERGY CHARTER PROTOCOL ON ENERGY EFFICIENCY 
AND RELATED ENVIRONMENTAL ASPECTS 
PREAMBLE 
THE CONTRACTING PARTIES to this Protocol, 
Having regard to the European Energy Charter adopted in the Concluding Document of the 
Hague Conference on the European Energy Charter, signed at The Hague on 17 December 
1991; and in particular to the declarations therein that co-operation is necessary in the field 
of energy efficiency and related environmental protection; 
Having regard also to the Energy Charter Treaty, opened for signature from 17 December 
1994 to 16 June 1995; 
Mindful of the work undertaken by international organizations and fora in the field of energy 
efficiency and environmental aspects of the energy cycle; 
Aware of the improvements in supply security, and of the significant economic and 
environmental gains, which result from the implementation of cost-effective energy efficiency 
measures; and aware of their importance for restructuring economies and improving living 
standards; 
Recognizing that improvements in energy efficiency reduce negative environmental 
consequences of the energy cycle including global warming and acidification; 
Convinced that energy prices should reflect as far as possible a competitive market, ensuring 
market-oriented price formation, including fuller reflection of environmental costs and 
benefits, and recognizing that such price formation is vital to progress in energy efficiency 
and associated environmental protection; 
Appreciating the vital role of the private sector including small and medium-sized enterprises 
in promoting and implementing energy efficiency measures, and intent on ensuring a 
favourable institutional framework for economically viable investment in energy efficiency; 
Recognizing that commercial forms of co-operation may need to be complemented 
by intergovernmental co-operation, particularly in the area of energy policy formulation and 
analysis as well as in other areas which are essential to the enhancement of energy efficiency 
but not suitable for private funding; and 
Desiring to undertake co-operative and co-ordinated action in the field of energy efficiency 
and related environmental protection and to adopt a Protocol providing a framework for using 
energy as economically and efficiently as possible: 
HAVE AGREED AS FOLLOWS : 
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PARTI 
INTRODUCTION 
ARTICLE 1 
SCOPE AND OBJECTIVES OF THE PROTOCOL 
(1) This Protocol defines policy principles for the promotion of energy efficiency as a 
considerable source of energy and for consequently reducing adverse Environmental 
Impacts of energy systems. It furthermore provides guidance on the development of 
energy efficiency programmes, indicates areas of co-operation and provides a 
framework for the development of co-operative and co-ordinated action. Such action 
may include the prospecting for, exploration, production, conversion, storage, 
transport, distribution, and consumption of energy, and may relate to any economic 
sector. 
(2) The objectives of this Protocol are: 
(a) the promotion of energy efficiency policies consistent with sustainable 
development; 
(b) the creation of framework conditions which induce producers and consumers 
to use energy as economically, efficiently and environmentally soundly as 
possible, particularly through the organization of efficient energy markets and 
a fuller reflection of environmental costs and benefits; and 
(c) the fostering of co-operation in the field of energy efficiency. 
ARTICLE 2 
DEFINITIONS 
As used in this Protocol : 
(1) "Charter" means the European Energy Charter adopted in the Concluding Document 
of the Hague Conference on the European Energy Charter signed at The Hague on 
17 December 1991; signature of the Concluding Document is considered to be 
signature of the Charter. 
(2) "Contracting Party" means a state or Regional Economic Integration Organization 
which has consented to be bound by this Protocol and for which the Protocol is in 
force. 
(3) "Regional Economic Integration Organization" means an organization constituted by 
states to which they have transferred competence over certain matters a number of 
which are governed by this Protocol, including the authority to take decisions binding 
on them in respect of those matters. 
(4) "Energy Cycle" means the entire energy chain, including activities related to 
prospecting for, exploration, production, conversion, storage, transport, distribution and 
consumption of the various forms of energy, and the treatment and disposal of 
wastes, as well as the decomissioning, cessation or closure of these activities, 
minimizing harmful Environmental Impacts. 
(5) "Cost-Effectiveness" means to achieve a defined objective at the lowest cost or to 
achieve the greatest benefit at a given cost. 
(6) "Improving Energy Efficiency" means acting to maintain the same unit of output (of 
a good or service) without reducing the quality or performance of the output, while 
reducing the amount of energy required to produce that output. 
(7) "Environmental Impact" means any effect caused by a given activity on the 
environment, including human health and safety, flora, fauna, soil, air, water, climate, 
landscape and historical monuments or other physical structures or the interactions 
among these factors; it also includes effects on cultural heritage or socio-economic 
conditions resulting from alterations to those factors. 
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PARTH 
POLICY PRINCIPLES 
ARTICLE 3 
BASIC PRINCIPLES 
Contracting Parties shall be guided by the following principles: 
(1) Contracting Parties shall co-operate and, as appropriate, assist each other in 
developing and implementing energy efficiency policies, laws and regulations. 
(2) Contracting Parties shall establish energy efficiency policies and appropriate legal and 
regulatory frameworks which promote, inter alia: 
(a) efficient functioning of market mechanisms including market-oriented price 
formation and a fuller reflection of environmental costs and benefits; 
(b) reduction of barriers to energy efficiency, thus stimulating investments; 
(c) mechanisms for financing energy efficiency initiatives; 
(d) education and awareness; 
(e) dissemination and transfer of technologies; 
(f) transparency of legal and regulatory frameworks. 
(3) Contracting Parties shall strive to achieve the full benefit of energy efficiency 
throughout the Energy Cycle. To this end they shall, to the best of their competence, 
formulate and implement energy efficiency policies and co-operative or co-ordinated 
actions based on Cost-Effectiveness and economic efficiency, taking due account of 
environmental aspects. 
(4) Energy efficiency policies shall include both short-term measures for the adjustment 
of previous practices and long-term measures to improve energy efficiency throughout 
the Energy Cycle. 
(5) When co-operating to achieve the objectives of this Protocol, Contracting Parties shall 
take into account the differences in adverse effects and abatement costs between 
Contracting Parties. 
(6) Contracting Parties recognize the vital role of the private sector. They shall encourage 
action by energy utilities, responsible authorities and specialised agencies, and close 
co-operation between industry and administrations. 
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(7) Co-operative or co-ordinated action shall take into account relevant principles adopted 
in international agreements, aimed at protection and improvement of the environment, 
to which Contracting Parties are parties. 
(8) Contracting Parties shall take full advantage of the work and expertise of competent 
international or other bodies and shall take care to avoid duplication. 
ARTICLE 4 
DIVISION OF RESPONSIBILITY AND CO-ORDINATION 
Each Contracting Party shall strive to ensure that energy efficiency policies are co-ordinated 
among all of its responsible authorities. 
ARTICLE 5 
STRATEGIES AND POLICY AIMS 
Contracting Parties shall formulate strategies and policy aims for Improving Energy Efficiency 
and thereby reducing Environmental Impacts of the Energy Cycle as appropriate in relation 
to their own specific energy conditions. These strategies and policy aims shall be transparent 
to all interested parties. 
ARTICLE 6 
FINANCING AND FINANCIAL INCENTIVES 
(1) Contracting Parties shall encourage the implementation of new approaches and 
methods for financing energy efficiency and energyrelated environmental protection 
investments, such as joint venture arrangements between energy users and external 
investors (hereinafter referred to as "Third Party Financing"). 
(2) Contracting Parties shall endeavour to take advantage of and promote access to private 
capital markets and existing international financing institutions in order to facilitate 
investments in Improving Energy Efficiency and in environmental protection related 
to energy efficiency. 
(3) Contracting Parties may, subject to the provisions of the Energy Charter Treaty and 
to their other international legal obligations, provide fiscal or financial incentives to 
energy users in order to facilitate market penetration of energy efficiency technologies, 
products and services. They shall strive to do so in a manner that both ensures 
transparency and minimizes thé distortion of international markets. 
ARTICLE 7 
PROMOTION OF ENERGY EFFICIENT TECHNOLOGY 
(1) Consistent with the provisions of the Energy Charter Treaty, Contracting Parties shall 
encourage commercial trade and co-operation in energy efficient and environmentally 
sound technologies, energy related services and management practices. 
(2) Contracting Parties shall promote the use of these technologies, services and 
management practices throughout the Energy Cycle. 
ARTICLE 8 
DOMESTIC PROGRAMMES 
(1) In order to achieve the policy aims formulated according to Article 5, each 
Contracting Party shall develop, implement and regularly update energy efficiency 
programmes best suited to its circumstances. 
(2) These programmes may include activities such as the: 
(a) development of long-term energy demand and supply scenarios to guide 
decision-making; 
(b) assessment of the energy, environmental and economic impact of actions taken; 
(c) definition of standards designed to improve the efficiency of energy using 
equipment, and efforts to harmonize these internationally to avoid trade 
distortions; 
(d) development and encouragement of private initiative and industrial co­
operation, including joint ventures; 
(e) promotion of the use of the most energy efficient technologies that are 
economically viable and environmentally sound; 
(f) encouragement of innovative approaches for investments in energy efficiency 
improvements, such as Third Party Financing and co-financing; 
(g) development of appropriate energy balances and data bases, for example with 
data on energy demand at a sufficiently detailed level and on technologies for 
Improving Energy Efficiency; 
(h) promotion of the creation of advisory and consultancy services which may be 
operated by public or private industry or utilities and which provide 
information about energy efficiency programmes and technologies, and assist 
consumers and enterprises; 
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(i) support and promotion of cogeneration and of measures to increase the 
efficiency of district heat production and distribution systems to buildings and 
industry; 
(j) establishment of specialized energy efficiency bodies at appropriate levels, that 
are sufficiently funded and staffed to develop and implement policies. 
(3) In implementing their energy efficiency programmes, Contracting Parties shall ensure 
that adequate institutional and legal infrastructures exist. 
PARTffl 
INTERNATIONAL CO-OPERATION 
ARTICLED 
AREAS OF CO-OPERATION 
The co-operation between Contracting Parties may take any appropriate form. Areas of 
possible co-operation are listed in the Annex. 
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PART IV 
ADMINISTRATIVE AND LEGAL ARRANGEMENTS 
ARTICLE 10 
ROLE OF THE CHARTER CONFERENCE 
(1) All decisions made by the Charter Conference in accordance with this Protocol shall 
be made by only those Contracting Parties to the Energy Charter Treaty who are 
Contracting Parties to this Protocol. 
(2) The Charter Conference shall endeavour to adopt, within 180 days after the entry into 
force of this Protocol, procedures for keeping under review and facilitating the 
implementation of its provisions, including reporting requirements, as well as for 
identifying areas of co-operation in accordance with Article 9. 
ARTICLE 11 
SECRETARIAT AND FINANCING 
(1) The Secretariat established under Article 35 of the Energy Charter Treaty shall provide 
the Charter Conference with all necessary assistance for the performance of its duties 
under this Protocol and provide such other services in support of the Protocol as may 
be required from time to time, subject to approval by the Charter Conference. 
(2) The costs of the Secretariat and Charter Conference arising from this Protocol shall 
be met by the Contracting Parties to this Protocol according to their capacity to pay, 
determined according to the formula specified in Annex B to the Energy Charter 
Treaty. 
ARTICLE 12 
VOTING 
(1) Unanimity of Contracting Parties Present and Voting at the meeting of the Charter 
Conference where such matters fall to be decided shall be required for decisions to: 
(a) adopt amendments to this Protocol; and 
(b) approve accessions to this Protocol under Article Vf. 
Contracting Parties shall make every effort to reach agreement by consensus on any 
other matter requiring their decision under this Protocol. If agreement cannot be 
reached by consensus, decisions on non-budgetary matters shall be taken by a three-
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fourths majority of Contracting Parties Present and Voting at the meeting of the 
Charter Conference at which such matters fall to be decided. 
Decisions on budgetary matters shall be taken by a qualified majority of Contracting 
Parties whose assessed contributions under Article 11(2) represent, in combination, at 
least three-fourths of the total assessed contributions. 
(2) For purposes of this Article, "Contracting Parties Present and Voting" means 
Contracting Parties to this Protocol present and casting affirmative or negative votes, 
provided that the Charter Conference may decide upon rules of procedure to enable 
such decisions to be taken by Contracting Parties by correspondence. 
(3) Except as provided in paragraph (1) in relation to budgetary matters, no decision 
referred to in this Article shall be valid unless it has the support of a simple majority 
of Contracting Parties. 
(4) A Regional Economic Integration Organization shall, when voting, have a number of 
votes equal to the number of its member states which are Contracting Parties to this 
Protocol; provided that such an Organization shall not exercise its right to vote if its 
member states exercise theirs, and vice versa. 
(5) In the event of persistent arrears in a Contracting Party's discharge of financial 
obligations under this Protocol, the Charter Conference may suspend that Contracting 
Party's voting rights in whole or in part. 
ARTICLE 13 
RELATION TO THE ENERGY CHARTER TREATY 
(1) In the event of inconsistency between the provisions of this Protocol and the 
provisions of the Energy Charter Treaty, the provisions of the Energy Charter Treaty 
shall, to the extent of the inconsistency, prevail. 
(2) Article 10(1) and Article 12(1) to (3) shall not apply to votes in the Charter 
Conference on amendments to this Protocol which assign duties or functions to the 
Charter Conference or the Secretariat, the establishment of which is provided for in 
the Energy Charter Treaty. 
3 
PART V 
FINAL PROVISIONS 
ARTICLE 14 
SIGNATURE 
This Protocol shall be open for signature at Lisbon from 17 December 1994 to 16 June 1995 
by the states and Regional Economic Integration Organizations whose representatives have 
signed the Charter and the Energy Charter Treaty. 
ARTICLE 15 
RATIFICATION, ACCEPTANCE OR APPROVAL 
This Protocol shall be subject to ratification, acceptance or approval by signatories. 
Instruments of ratification, acceptance or approval shall be deposited with the Depositary. 
ARTICLE 16 
ACCESSION 
This Protocol shall be open for accession, from the date on which the Protocol is closed for 
signature, by states and Regional Economic Integration Organizations which have signed the 
Charter and are Contracting Parties to the Energy Charter Treaty, on terms to be approved by 
the Charter Conference. The instruments of accession shall be deposited with the Depositary. 
ARTICLE 17 
AMENDMENTS 
(1) Any Contracting Party may propose amendments to this Protocol. 
(2) The text of any proposed amendment to this Protocol shall be communicated to 
Contracting Parties by the Secretariat at least three months before the date on which 
it is proposed for adoption by the Charter Conference. 
(3) Amendments to this Protocol, texts of which have been adopted by the Charter 
Conference, shall be communicated by the Secretariat to the Depositary which shall 
submit them to all Contracting Parties for ratification, acceptance or approval. 
(4) Instruments of ratification, acceptance or approval of amendments to this Protocol 
shall be deposited with the Depositary. Amendments shall enter into force between 
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Contracting Parties having ratified, accepted or approved them on the thirtieth day 
after deposit with the Depositary of instruments of ratification, acceptance or approval 
by at least three-fourths of the Contracting Parties. Thereafter the amendments shall 
enter into force for any other Contracting Party on the thirtieth day after that 
Contracting Party deposits its instrument of ratification, acceptance or approval of the 
amendments. 
ARTICLE 18 
ENTRY INTO FORCE 
(1) This Protocol shall enter into force on the thirtieth day after the date of deposit of the 
fifteenth instrument of ratification, acceptance or approval thereof, or of accession 
thereto, by a state or Regional Economic Integration Organization which is a signatory 
to the Charter and a Contracting Party to the Energy Charter Treaty or on the same 
date as the Energy Charter Treaty enters into force, whichever is later. 
(2) For each state or Regional Economic Integration Organization for which the Energy 
Charter Treaty has entered into force and which ratifies, accepts, or approves this 
Protocol or accedes thereto after the Protocol has entered into force in accordance with 
paragraph (1), the Protocol shall enter into force on the thirtieth day after the date of 
deposit by such state or Regional Economic Integration Organization of its instrument 
of ratification, acceptance, approval or accession. 
(3) For the purposes of paragraph (1), any instrument deposited by a Regional Economic 
Integration Organization shall not be counted as additional to those deposited by 
member states of such Organization. 
ARTICLE 19 
RESERVATIONS 
No reservations may be made to this Protocol. 
ARTICLE 20 
WITHDRAWAL 
(1) At any. time after this Protocol has entered into force for a Contracting Party, that 
Contracting Party may give written notification to the Depositary of its withdrawal 
from the Protocol. 
(2) Any Contracting Party which withdraws from the Energy Charter Treaty shall be 
considered as also having withdrawn from this Protocol. 
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(3) The effective date of withdrawal under paragraph (1) shall be ninety days after receipt 
of notification by the Depositary. The effective date of withdrawal under paragraph(2) 
shall be the same as the effective date of withdrawal from the Energy Charter Treaty. 
ARTICLE 21 
DEPOSITARY 
The Government of the Portuguese Republic shall be the Depositary of this Protocol. 
ARTICLE 22 
AUTHENTIC TEXTS 
In witness whereof the undersigned, being duly authorized to that effect, have signed this 
Protocol in English, French, German, Italian, Russian and Spanish, of which every text is 
equally authentic, in one original, which will be deposited with the Government of the 
Portuguese Republic. 
Done at Lisbon on the seventeenth day of December in the year one thousand nine hundred 
and ninety-four. 
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ANNEX 
ILLUSTRATIVE AND NON-EXHAUSTIVE LIST 
OF POSSIBLE AREAS OF CO-OPERATION PURSUANT TO ARTICLE 9 
Development of energy efficiency programmes, including identifying energy efficiency 
barriers and potentials, and the development of energy labelling and efficiency standards; 
Assessment of the Environmental Impacts of the Energy Cycle; 
Development of economic, legislative and regulatory measures; 
Technology transfer, technical assistance and industrial joint ventures subject to international 
property rights regimes and other applicable international agreements; 
Research and development; 
Education, training, information and statistics; 
Identification and assessment of measures such as fiscal or other market-based instruments, 
including tradeable permits to take account of external, notably environmental, costs and 
benefits. 
Energy analysis and policy formulation: 
assessment of energy efficiency potentials; 
energy demand analysis and statistics; 
development of legislative and regulatory measures; 
integrated resource planning and demand side management; 
Environmental Impact assessment, including major energy projects. 
Evaluation of economic instruments for Improving Energy Efficiency and environmental 
objectives. 
Energy efficiency analysis in refining, conversion, transport and distribution of hydro-carbons. 
Improving Energy Efficiency in power generation and transmission: 
cogeneration; 
plant component (boilers, turbines, generators, etc); 
network integration. 
Improving Energy Efficiency in the building sector: 
thermal insulation standards, passive solar and ventilation; 
space heating and air conditioning systems; 
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high efficiency low NOx burners; 
metering technologies and individual metering; 
domestic appliances and lighting. 
Municipalities and local community services: 
district heating systems; 
- efficient gas distribution systems; 
energy planning technologies; 
twinning of towns or of other relevant territorial entities; 
- energy management in cities and in public buildings; 
waste management and energy recovery of waste. 
Improving Energy Efficiency in the industrial sector: 
joint ventures; 
energy cascading, cogeneration and waste heat recovery; 
energy audits. 
Improving Energy Efficiency in the transport sector: 
motor vehicle performance standards; 
development of efficient transport infrastructures. 
Information: 
awareness creation; 
data bases: access, technical specifications, information systems; 
dissemination, collection and collation of technical information; 
behavioural studies. 
Training and education: 
exchanges of energy managers, officials, engineers and students; 
organization of international training courses. 
Financing: 
development of legal framework; 
Third Party Financing; 
joint ventures; 
co-financing. 
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ISSN 0254-1475 
E 
Catalogue number : CB-CO-94-552-EN-C 
ISBN 92-77-82691-6 
Office for Official Publications of the European Communities 
Lr2985 Luxembourg