NoC108/20 OfficialJournaloftheEuropeanCommunities 19.4.93
OpinionontheproposalforaCouncilDirectiveintroducingataxoncarbondioxide
emissionsandenergy(*)
(93/C108/06)
On16July1992theCouncildecidedtoconsulttheEconomicandSocialCommittee,under
Article99oftheEECTreaty,ontheabovementioned proposal.
TheSectionforEconomic,FinancialandMonetaryQuestions,whichwasresponsiblefor
preparingtheCommittee'sworkonthesubject,adopteditsOpinionon9February1993.
TheRapporteurwasMrSchmitz.
Atits303rdPlenarySession(meetingof24February1993),theEconomicandSocial
CommitteeadoptedthefollowingOpinionby92votesto37,withsixabstentions.
1.Generalcomments
1.1.TheCommitteeendorsestheDraftDirective's
aim(2),namelytolimittheemissionofgreenhousegases
andtopromoterationaluseofenergy;theCommittee
wouldreferinthiscontexttoitsOwn-initiative Opinion
onenergyandtheenvironment (3).TheCommittee
does,however,havesomereservationsabouttheform
oftheproposedinstrument.
1.1.1.Avarietyofmeasureswillberequiredtoattain
theabove-mentioned objectives.IntheCommittee's
view,market-management instrumentssuchastaxes
andlevies,taxincentivesandstateaid,canbean
importantadjuncttoregulatorymeasures(4).Theinflu­
enceofmarket-management instrumentsshouldnot,
however,beoverestimated .Theyareallthemorelikely
tobeeffectiveifthepartiesreceivingthesubsidiesor
payingthetaxesandlevieshavealternativecoursesof
actionwherebythedesiredobjectivescanbemet.
1.1.2.Energyandtransportpolicymeasuresshould
alsobeadoptedandeveryeffortmadetoensurethat
policyinthesetwofieldsdoesnotimpedethereduction
ofgreenhousegasesandrationaluseofenergy.
1.1.3.Greenhousegasesareaworldwidephenom­
enonandworldwideactionisneeded.Withthisaimin
view,theECshouldtakeeffectiveactioninitsdealings
withotherStatesoftheOrganizationforEconomic
CooperationandDevelopment (OECD),easternEuro­
peannations,theCommonwealth ofIndependentStates
(CIS),themajornewlyindustrializedcountriesandthe
developingcountries.
1.1.4.Withregardtomarket-management instru­
ments,aCommunityapproachshouldbegivenpriority
overnationalmeasuresinordertoavoiddistortionsof
competitionwithintheCommunity .1.2.Theintroductionofastrategytocurtailgreen­
housegasemissionsandpromotetherationaluseof
energymustnotjeopardizetheabilityofECindustry
tocompetewithitsrivalsinnon-ECcountries.
1.2.1.Ifpoliticiansfailtoactingoodtime,and
majorchangesoccurintheworldclimate,pressure
frompublicopinionmayobligepoliticianstotake
drasticmeasureswhichprecluderationalindustrial
restructuring .
1.2.2.Thenecessaryinvestmentshouldthereforebe
initiatedvoluntarilyandasswiftlyaspossible.Firms
whichadjusttochangeinenvironmental policyingood
timetherebyfrequentlysecureacompetitiveedge.So
farJapaneseindustryseemstohavetakentheleadin
thisrespect.Europeanindustryshouldundertakethe
necessaryinnovationssoastoavoidbeingleftbehind.
1.2.3.ItishoweveressentialthattheEuropeanecon­
omyshouldbegivenadequatetimetoundertakeadjust­
mentmeasuresandknowwhatgeneraleconomic
(includingfinancialincentives)andlegalframeworkit
isgoingtohavetooperatein,atleastinthemedium
term.Specificaidshouldbeprovidedforenergy-inten­
sivesectorsoftheeconomy.
1.2.4.Positivemeasureswhichcouldbepromoted
byMemberStatesincludefiscalstimulusforintrodu­
cingmoreefficientandenvironmentally friendlytech­
nologyandincreasingenergysavings.Thefollowing
areexamplesofpossibleactionswhichcouldbeeasily
undertaken :
—taxrebatesforindustryifenergyconsumptionis
betterthanthefigureslaiddownbylaw;
—providediscountsyearlyofeverytwoyearsfor
domesticandcommercialconsumersiftheirenergy
consumptionfiguresarebetterthanthoselaiddown
bylaw;
—fiscalrebatesforthosehouseholdswhichinstall
highlyefficientkitchens(cooker,oven,fridge)and
heatingsystems(boilers);HOJNoC196,3.8.1992,p.1.
(2)CouncilDecisionof29October1990.
HOJNoC269,14.10.1991.
(4)OJNoC332,31.12.1990.

19.4.93 OfficialJournaloftheEuropeanCommunities NoC108/21
—taxincentivesoninvestmentsinmoreefficientand
environmentally friendlytechnology;and
—informationandawarenesscampaigns.
1.3.Thereisconsiderabledoubtastowhetherthe
carbondioxidecomponentoftheproposedtaxcan
bringaboutasignificantlevelofsubstitution,given
thatthestructureofenergysourcesisdeterminedby
technicalconsiderations .Assumingthatsuchsubsti­
tutionispossibleinthemediumterm,aseriesofques­
tionsneedstobeaddressed.
1.3.1.Theintroductionofataxoncarbondioxide
emissionswouldgivenuclearfuelsanadvantageover
energygeneratedfromfossilfuels.Thisisjustifiable
insofarasnuclearenergyhelpstoreducegreenhouse
gases.IntheCommittee'sview,theeconomicpreference
fornuclearenergycanonlybeacceptedifotherEC
levelmeasuresaretakentoensurethatthecostsassoci­
atedwiththehazardsofusingnuclearenergy(inpar­
ticularthedisposalofnuclearwasteanddecom­
missioning)arefullybornebynuclearpowerstation
operators,inaccordancewiththe'polluterpays'prin­
ciple.
1.3.2.Scientistsareunabletoagreeontherelative
'greenhousepotential'ofthevariousfossilfuelsviewed
overdifferentperiodsoftime.Inthelong-termperspec­
tive(100years),carbondioxideisthemostimportant
greenhousegasandligniteisthefuelwhichcauses
themostseriousdamage.The'greenhouse'potential
rankingafterligniteisthenasfollows:bituminous
coal,oiland,finally,naturalgas.Intheshort-term
perspective,accountmust,however,alsobetakenof
methane.Methanehasarelativelyhighgreenhouse
potentialbutonlyremainsintheatmospherefora
relativelyshorttime.Giventhatatpresentproduction
ofnaturalgasdoesinfactyieldrelativelyhighlevelsof
methaneemissions—andthisislikelytobethecasefor
theforeseeablefuture—oneschoolofscientificthought,
whichhastobetakenseriously,holdsthatintheshort­
termperspective (20years)thegreenhousepotentialof
naturalgas(C02+methane)ishigherthanthatof
oil.Ifthesescientificassertionsarecorrect,thereisa
dangerthatataxleviedsolelyoncarbondioxideemis­
sionswhichdoesnottakeaccountofthemethanefactor
willbringaboutalarge-scalerestructuring ,interalia
fromoiltogasconsumption ,leadingconsequentlyin
themediumtermtoanincreaseratherthanareduction
intheglobalgreenhousepotential.Inviewofthefact
thattheCouncilhassetashort-termstabilizationobjec­
tive(fortheyear2000)andisalsobankingonrestruc­
turingoftheenergymarkerinthemediumterm,the
medium-termclimaticalimpact,includingtheeffect
ofthemethanefactor,mustbeexaminedbeforeany
assessmentcanbemadeofwhetherthecarbondioxide
componentofthetax,asproposedbytheCommission ,
willhaveabeneficialoradetrimentaleffectonthe
climate.
1.3.3.Worldenergyconsumption isincreasing.
(AssessmentsmadeattheXVthWorldEnergyConfer­
enceheldinSeptember1992indicatethatintheperiod
1990-2020,overallprimaryenergyconsumptionwill
increaseby53%.)Itisestimatedthat80%ofthe
growthinenergyconsumptionwillbeinthedeveloping
countries.Thisisunderstandable consideringthehugedifferenceinenergyconsumptionperheadinindustrial­
isedanddevelopingcountries.Ifthistrendisnothalted,
climateprotectionpolicy,asawhole,willfail.Apre­
requisiteforthesuccessofanyclimateprotectionpolicy
istherefore,intheshortterm,thestabilizationofworld
energyconsumptionand,inthelongterm,thereduction
ofconsumption,especiallyintheindustrialcountries
onaccountoftheirhighpercapitaconsumption .The
energycomponentoftheproposedtaxisprimarily
gearedtotheachievementofthisobjective.Inthis
respectthegoalsofenergypolicyandclimateprotection
policyareincompleteharmony.Themainaimofthe
carbondioxidecomponentoftheproposedtaxisto
changethestructureoffuelconsumption (toppriority
isgiventonaturalgaswhereascoalconsumptionisset
todecline).Measuredoverthelongterm,however,
stocksofallfossilfuelsareinshortsupply.Coal,too,
willbeneededinthelongterm.Inthelongterm,too,
thecarbondioxidecomponentoftheproposedtaxwill,
inthefinalanalysis,onlychangetheorderinwhich
fuelsareconsumed;itwillnot,however,definitively
preventatmosphericfactorsfromdamagingtheclimate
(energypolicypursuesanerraticcourse,withhighre­
equipmentcostsfortheeconomy).Furthermore,despite
thecurrentshort-termsurplusofenergyproducts,the
relativesituationasregardsshortageofsupply(stocks
ofthevariousindividualfuelswilllastfordiffering
periods)willstarttoinfluencethepricestructureby
thefirsthalfofthenextcenturyatthelatest.Conse­
quently,asstocksofoilandnaturalgaswillrunout
morequicklytheirrelativeshortagewillbemorerapidly
exacerbatedthantheshortageofcoalandtheirprice
willlikewiseincreasemorerapidlythanthatofcoal.It
isperfectlypossiblethatthesemarket-driven increases
inthepriceofoilandnaturalgaswill,withinafew
decades,morethancancelouttheincreaseinthecost
ofcoalduetotaxation.Inthisscenario,thequestion
arisesastowhetherthelikelyconsequentincreasein
theuseofimportedcoalwillnotbeintotalcontradic­
tion,fromanenergypolicystandpoint (securityof
supply),totheearlierpolicyofcuttingbacktheCom­
munity'scoalproductioncapacity.
1.3.4.TheCommitteethereforehasdoubtsabout
thecarbondioxidecomponentofthetax,asproposed
bytheCommission .
1.4.TheCommitteehasrepeatedlyexpresseditssup­
portforthe'polluterpays'principle.Theapplication
ofthisprincipletogreenhousegasesisdifficultgiven
theirglobalnatureandlong-termeffect.TheCom­
mitteeneverthelessconsidersthatatleastpartofthe
externalcostsgeneratedbygreenhousegasesshouldbe
internalized .ForthisreasontheCommitteecallsfora
taxonemissionsoftherelevantgreenhousegases,car­
bondioxideemissionsandmethanereleasesinenergy
productioninparticular.
1.5.Greenhousegasemissionscanonlybecurbed
effectivelybyworldwideaction.Forthisreason,consul­
tationsshouldbeheldwiththeotherOECDcountries
andtheleadingnewlyindustrializedcountriesbefore
thegreenhousegastaxproposedbytheCommitteeis
introducedintheEC.Theintroductionofthegreen­
housegastaxshouldformonlyonepartofapackage
ofmeasures(includingresearchanddevelopment )

NoC108/22 OfficialJournaloftheEuropeanCommunities 19.4.93
againstmakingtheintroductionofagreenhousegas
taxdependentupontheattitudeofindividualOECD
States.enshrinedinaworldwideagreement,alongthelinesof
theMontrealagreementonCFCs,tocurbgreenhouse
gasemissions.Exemptionsshouldnotbepermitted.
Underthisagreementasubstantialproportionofthe
revenuefromthegreenhousegastaxshouldbeusedto
underpininvestmentsinmeasurestoreducegreenhouse
gasemissionsinthedevelopingcountries,EasternEuro­
peandtheCIS.Asubstantialreductioningreenhouse
gasemissionscanbeachievedinthesecountriesat
relativelylowcost.
1.5.1.TheCommitteerecognizesthattherewillbe
technicalproblemswiththeintroductionofageneral
greenhousegastax.Withadequatepoliticalwill,how­
ever,itwillbefeasibletogetclosetothegoalof
graduallyextendingthetaxtoasmanymajorgreen­
housegasesaspossible4.Inthefirstphasethemethane
releasedbytheenergysectorshouldbetaxedaswell
asCChemissions.
Relative
contribution
tothe
greenhouseeffect
measuredover
a100-yearperiodLifespanSources
known/unknown
Carbonicgas 61,0% long known
Methane 15,0% short semi­
quantitative
information
available
Nitrousoxide 4,0% longqualitative
information
available
CFC 11,0% long known
HCFC-22 0,5%generally
shortknown
Miscellaneous
(ozone)8,5% shortqualitative
information
available1.6.TheCommitteegenerallyendorsestheenergy
componentsoftheproposedtaxastheycouldmake
animportantcontributiontosecuringrationaluseof
energy,promotingtheuseofrenewableenergysources
andreducinggreenhousegasemissions.
1.6.1.Empiricalresearchhasconfirmedthat
increasesinenergypricespromoteamorerationaluse
ofenergyinthemediumterm.[StudybyProfessor
Wolfsonontheextenttowhichenergyconsumptionis
influencedbyenergyprices.'Regulatorytaxationdoes
reduceemissions,withmedium-termelasticitiesranging
from—0,1to—1,0,andbroad-basedandOECD-wide
levieswillbeshiftedbackwardsinupto30%lower
pricesatsource'(quotation).]Animportantconsider­
ationhere,however,isthatgeneral,long-termcon­
ditionsshouldbesufficientlypredictabletoenablebusi­
nessandprivateconsumerstoplanahead.Thisraises
thequestionastowhethererraticfluctuationsinworld
energypricesshouldbecushionedbyflexibleEC
arrangements .
1.6.2.Along-termincreaseinenergypricesisan
importanteconomicprerequisiteforviableinvestment
innuclearfusion,renewablerawmaterials(agri­
culture),andotherrenewableenergysources.Research,
intosolarenergy,forexample,hasdemonstratedthat
renewablesourcesofenergy,inparticularhydrogen,
couldcorneralargeshareoftheelectricitymarketif
energypricesincrease.(CommissionofInquiry'Safe­
guardsfortheearth'satmosphere'oftheGermanBun­
destagof2October1990.)
1.6.3.TheCommitteedoes,however,rejectthe
impositionofanenergytaxthatwillbeusedtocover
generalbudgetshortfalls.TheCommitteetherefore
proposesthatanenergylevy,imposedatnationallevel,
beintroduced,andthattheproceedsbeusedforthe
specificpurposeofpromotinginvestmentsinenergy­
savings,insofarastheresultantenergyconsumption
figuresarebetterthanthoselaiddownbylaw,for
promotinginvestmentsinrenewablesourcesofenergy
andforpreventingsocialhardshipamongstprivateand
smallbusinessconsumers.Inthiswaytheenergylevy
willalsomakeasubstantialcontributiontocurbing
emissionswhichpollutetheenvironment ,suchasemis­
sionsofgreenhousegases.Risingenergyconsumption
intheCommunitysince1986hasalsoresultedina
steadyriseinC02emissions.[Commissionworking
paper:'TheenergyconsequencesoftheproposedCO,-
energytax'dated23October1992,SEC(92)1996.]Itis
notcleartowhatextentthefallinoilpriceshasplayed
apartinthis.
1.6.4.Thedevelopmentofenergy-savingindustrial
plantandconsumergoodsandofinstallationstopro­
duceenergyfromrenewablesourcesisanimportant
contributiontostrengtheningthecompetitiveness of
Europeanindustry.HencetheenergylevyhasnotonlySource:IPCC.
1.5.2.Inordertoensurethatsuchnegotiationsare
successful,theCommunityshoulddecidewhatform
thegreenhousegastaxshouldtakebeforethetalksget
underway.Thetaxshould,however,belowerthan
thatleviedonthecarbondioxidecomponentofthe
Commission'sproposedcarbondioxide/energytax,not
leasttoimprovethechancesofreachingagreement
withnon-ECcountries.
1.5.3.TheCommunityshouldintroducemeasures
whichenablethedevelopingcountriestoparticipate
inactionstoreducegreenhousegasemissions.The
Communityshouldalsoundertaketousepartofthe
greenhousegastaxrevenuetohelpthedeveloping
countriestomakethenecessarychanges.Theprovision
ofsuchfinancialsupportcouldalsoimprovetheCom­
munity'snegotiatingposition.
1.5.4.TheCommitteesharestheconcernthatunilat­
eralCommunityactioncould,intheshortterm,create
competitionproblemsforindividualsectorsofEC
industry.TheCommitteewould,however,warn

19.4.93 OfficialJournaloftheEuropeanCommunities NoC108/23
Fundshouldbeusedtopromotepublicandprivate
investmentinrationalenergyuse.Back-uparrange­
mentsshouldbeintroducedaspartofaspecial'Com­
munityinitiative'whichwouldtaptheresourcesofthe
RegionalFund.TheCommissionshoulddrawupa
proposalalongtheselineswithoutdelay.anenvironmental objectivebutisalsoimportantfor
industrialpolicy.TheCommitteethereforeurges
exemptionfromthelevyforhydroelectricinstallations,
togetherwiththeotherrenewablesourcesofenergy.It
isessentialtoinvolvethetwosidesofindustry,bothat
EClevelandattheleveloftheMemberStates,inthis
matter.
1.6.5.InacceptingtheCommissionproposalaspart
ofanoverallenergypackagewhichalsocontainsnon
fiscalmeasurestodecreaseC02emissionsandincrease
efficiencyandsavings,theCommittee,whileenthusi­
asticallysupportingtheprogrammes,suggeststhat
greateremphasisbeplacedonThermieandAltener.
ThenewSAVEprogramme,however,iscompletely
inadequatetoprovideasubstantialcontributionand
thereforeshouldbestrengthenedtoatleastitsoriginal
position.
1.7.FortheCommission,theintroductionofthe
carbondioxideandenergytaxisconditionalonthe
preservationoftaxneutrality.MemberStateswill,how­
ever,beresponsiblefordeterminingtheactualpro­
cedurestobeused.2.Specificcomments
2.1.TheCommitteeadvocatestheintroductionof
twodifferent,complementary instruments :
—ataxongreenhousegasemissions;
—alevyontheenergycontent.
Thegreenhousegastaxshouldbeleviedwithout
exemptiononCOzandthereleaseofmethaneinenergy
production.Thetaxshouldhoweverbelowerthan
thatproposedbytheCommissionforcarbondioxide
emissions.Overall,includingtheenergylevy,thiswould
givealowertax.
Theintroductionofataxongreenhousegasemissions
andalevyontheenergycontentshouldbepostponed
untiltheeconomicsituationismorefavourablethan
thesituationcurrentlyprevailing.
ThefollowingcommentsontheindividualArticlesof
theDraftDirectiverelatetotheenergycomponentof
theCommission'sproposedtax.
2.2.Article1
2.2.1.Article1(1)
Anenergylevyshouldbeintroducedinsteadofageneral
energytax.Theenergylevyproceedsshouldbeused
forthespecificpurposeofpromotinginvestmentsin
energysavings,insofarastheenergyconsumptionfig­
urestherebyobtainedarebetterthanthoselaiddown
bylaw,forpromotinginvestmentsinrenewablesources
ofenergyandforsupportingmeasurestoalleviate
hardshipamongstprivateconsumersandsmallbusiness
consumers.TheMemberStatesshouldexaminethe
caseforestablishingfundsinthisrespect(onefor
industry,oneforenergyutilitiesandoneforprivate
andsmallbusinessconsumers).
2.3.Article9
2.3.1.Article9(3)
TheCommitteeendorsestheproposedphasedincrease
intherateofthelevyasasuddensharpincreasewould
makeitimpossibletoachievethedesiredstructural
adjustmentprocess.(IEAWorldEnergyModel/energy
marketoutlook.'Themacro-economic effectofacar­
bontaxcouldreduceGDPby0,5%to3%in2000,
providedalltaxrevenuesarerecycled;themacro-econ­1.7.1.TheCommitteeagreeswiththeCommission
thatitisessentialtosafeguardtheabilityofECindustry
tocompetewithitsleadingrivals.Taxneutralitydoes
not,however,fallwithinthetermsofreferenceofthe
EuropeanCommunityandislefttotheMemberStates.
Ifitadoptsanenergylevy,theCouncilcanrecommend
totheMemberStatesthattheyintroducecompensatory
fiscalmeasures.Suchmeasuresshouldnotbeinconflict
withECcompetitionpolicyandshouldthereforebe
closelymonitoredbytheCommission .
1.7.2.Inordertoensurethattheproceedsofthe
levyareusedforspecificpurposes,theCommittee
recommendsthatMemberStatesshouldpaytherev­
enueintospecialfunds.TheCommitteeproposesthat
threefundsbesetup,oneforindustry,oneforthe
energyutilitiesandoneforprivateandsmallbusiness
consumers .Thesectorsconcernedshouldbeconsulted
overtheallocationofmoneyfromthesefunds.In
thiscontext,supportcouldbegiventoenergy-saving
programmesadoptedvoluntarilybyindustry.TheEC
shouldmakeappropriatearrangements ,whichshould
howeverbeflexibleenoughtoalloweffectivemeasures
tobetaken,inlinewithnationalandregionalcon­
ditions,tobringaboutenergysavingsandpromotethe
useofrenewablesourcesofenergywithoutinflicting
socialhardshiponprivateorsmallbusinessconsumers.
1.8.Thefinancialburdenimposedonindustryand
privateconsumersbyaCommunity-wide greenhouse
gastaxandenergylevywillvaryfromregiontoregion.
TheCommittee thereforerecommends selective
regionalpolicymeasuresfinancedfromtheECfunds.
Accountshouldbetakenofeachcountry'srequirements
andlevelofdevelopment .MoneyfromtheCohesion

NoC108/24 OfficialJournaloftheEuropeanCommunities 19.4.93
2.4.2.Article10(2)
Partialorcompleteexemptionfromthelevyshouldbe
authorizedonlyincaseswhereenergyconsumption is
betterthanthefigureslaiddownbylaw.omiceffectcanbereducedbyphasinginthetax,to
givehouseholdsandproducerstimetoadjusttheir
consumptionpatternsortheirproductiontechniques.')
2.3.2.Article9(3)
Itshouldbepossibletosuspendtemporarilythepro­
posedincreasesintherateofthelevyintheeventof
sharppriceincreasestriggeredbyconditionsonthe
worldmarket.Itshouldbepossibletobringforward
theincreaseintherateofthelevyintheeventofsharp
fallsinprices.
2.4.Article10
2.4.1.Article10(1)
TheCommitteecanendorsethegrantingofareduction
intherateofthelevyonlyonconditionthatsucha
reductionisforalimitedperiod.2.5.Article11
Inordertoavoid'knock-on'effects,taxcutsandtax
refundsshouldbegrantedonlyiffirmsarethereby
enabledtoachievebetterenergyconsumptionfigures
thanthoselaiddownbylaw.TheCommissionshould
introduceappropriateproposalsinaccordancewiththe
proceduresetoutinArticle13ofitsDraft.
DoneatBrussels,24February1993.
TheChairman
oftheEconomicandSocialCommittee
SusanneTIEMANN
APPENDIX
totheOpinionoftheEconomicandSocialCommittee
Thefollowingproposedamendment (counter-Opinion ),whichreceivedatleastonequarterofthevotescast,
wasdefeatedinthedebate:
Deletethetextfrompoint1onwards,andreplaceitbythefollowing:
'1.Generalcontext
Theexactnature,mechanismsandscaleoftheriskofanincreaseinglobalwarminghasnotyetbeen
adequatelygauged.Itisthereforeappropriatetodisplaymoderationwhendecidingonthescaleofthe
measurestobetaken.Italsofollowsthatitisnecessarytoevaluateallpossiblemeasuresandidentifythose
whicharethemosteffectiveinenvironmental termsandtheleastriskyorcosdyineconomicterms.
Furthermore,theCommitteeunderlinesthevitalimportanceofmakingarealisticappraisalofthescopefor
theadjustments—orevenradicalchanges—oftechnologywithoutwhichtheC02emissionobjectiveswill
beimpossibletoattainorwillcausemajoreconomicandsocialdamage.TheCommission'sProposalfora
Directiveistotallyinadequateinthisrespect.
Bearinginmindthisseriousshortcoming,theproposaltointroduceataxdesignedtoreduceC02emissions
intheECshouldbeconsideredfromfourfundamentalstandpoints :
—itseffectivenessinachievingthegoalwhichhasbeenset,namelytostabilizeglobalC02emissionsover
thenexttenyearsbyreducingtheunitenergyconsumptionofindustryandbybringingaboutaswitch­
overtotheleastpollutingformsofenergyandproductswhichusethelowestamountofenergy;
—maintenanceoftheinternationalcompetitiveness ofECindustry;
—theaggregateeffectivenessofothermeasurestostabilizeglobalC02emissions;
—thelikelyimpactofmeasurestakeninrespectoftheothergreenhousegases.

19.4.93 OfficialJournaloftheEuropeanCommunities NoC108/25
2.ObjectionstotheproposalforaDirective
Againstthebackgrounddescribedabove,theCommitteeconsidersthattheCommission'sProposalfora
Directiveiswhollyunsatisfactoryforfourmainreasons:
—firstly,theeffectivenessoftheproposedtaxwillbeextremelylimited.Accordingtothemacro-economic
calculationsmadein1990and1991,theproposedraxwillbarelyreduceunitenergyconsumptionby
morethanafewpercentagepoints.TheCommissionitselfexpectstheproposedtaxtomakeonlya
minorcontribution (25%)totheachievementofitsgoalofstabilizingC02emissionswithinthenext
eighttotenyears.ArecentstudybyDGXVIIandvariousindustrialstudieshaveconfirmedthisvery
lowlevelofeffectiveness ;
—secondly,thecompetitiveness ofalargenumberofECindustrieswouldbeseriouslyjeopardizedifthe
ECweretotakeunilateralaction.Inthiscontext,theCommitteedrawstheattentionoftheECbodies
totheneedtotakeaccountnotonlyofOECDstatesbutalsoofpotentialcompetitionfromcountries
suchasBrazil,centralandeasternEuropeancountriesandtheCommonwealth ofIndependentStates
(CIS)inthesectorswhichwouldbemainlyconcernedbytheproposedtax.Theprincipleof'conditionality'
laiddownbytheECCouncilofMinistersmustthereforehavethebroadestpossiblegeographical
coverage;
—thirdly,theCommitteepointsoutthatthereareothermeasureswhichcouldhaveatleasttheverylimited
ecologicalimpactoftheproposedtax,withoutbringingaboutthesectoralandgeneralimbalanceswhich
wouldbecausedbythistax.Twomeasuresshouldbehighlightedhere:
—firstly,theintroduction,incollaborationwiththesectorsandenterprisesconcerned,ofasystemof
commitmentstomakeadditionalenergysavingsatleastequivalenttothoseproducedbytheproposed
tax;
—secondly,inviewoftheneedtoensurethatthemoneyspenthasthemaximumimpact,theeffectiveness
ofthepoliciespursuedmustbejudgedatworldlevel,sincewearedealingherewithaproblem
affectingthewholeoftheplanet.AccountmustthereforebetakenofthefactthattheEC,thanksto
itsrelativelyhighlevelofenergyandenvironmental efficiency,isresponsibleforonly13%ofworld
C02emissions.Withaviewtooptimizingtheeffectivenessoftheresourcesdevotedtoenvironmental
protection,thequestionarisesastowhetherthefundswhichareearmarkedbytheECformeasures
toreduceC02emissionswouldnotbebetterspentinthosecountrieswhichhavethelowestlevelof
energyefficiencyandmakeleastuseofcleanformsofenergy,suchasChina,theEuropeancountries
whichwereformallyunderCommunistcontrolandThirdWorldcountries.Ithastoberecognized
thateveryecuspentinthosecountrieswillprovideamuchgreaterecologicalreturnthanifitwere
spentintheEC;
—fourthly,theCommitteedeploresthefailureoftheCommissiontolookatthecontributionswhicha
reductioninothergreenhousegasescouldmaketowardsthegoalofstabilizingemissions.Recentstudies
bytheFrenchAgencyfortheEnvironmentandEnergyManagement (ADEME)havedemonstratedthat
thecurrentvirtuallyspontaneousmovestoreduceemissionlevelsofothergreenhousegasesarelikelyto
bringabout,bytheyear2010,aconsiderablereductioninoverallgreenhousegasemissionsinFrance,
evenifaslightincreaseinC02emissionsoccursasaresultofadecisiontoimplementonlythose
emission-reduction measureswhichhaveasatisfactorycost-benefitratio.Theusefulnessoftheproposed
taxisthereforeopentoquestion,givenitslimitedecologicalimpact,itseconomiccost,thefactthatit
willnotbringaboutareductionintheoveralllevelofgreenhousegasemissions,andtheabovementioned
uncertaintyonthepartofscientists.
3.Lackofconsistencyandmiscellaneousdifficulties
—Finally,theCommitteepointsoutthattheProposalforaDirectiveisinconsistent;itsimplementation
wouldgiverisetoserioustechnicaldifficultiesandthereisarealriskthatitwouldtriggeranincreasein
mandatorytaxes:
—theinconsistencyiscausedbythedualbaseoftheproposedtax,i.e.onC02emissionsandenergyas
such.ThishasledtheCommissiontoproposetaxingformsofenergywhichare'clean'asregards
greenhousegasemissions(nuclearenergy,hydro-electricenergy).Thisapproachisnotonlyinconsistent
initselfbutwillalsoconstrainswitchesfromoneenergysourcetoanotherbyenergygeneratorsand
consumers,whichwouldrepresentafurtherinconsistency .
—Theapplicationoftheprincipleoftaxneutralitywillundoubtedlyrunintoseriousadministrative
problems,unlesstheprincipleisappliedatanessentiallymacro-economic level.Distortionsinintra­
Communitycompetition,whichwillveryprobablyoccurasaresultofthefactthat,undertheProposal,
MemberStatesaretoberesponsibleforensuringtaxneutrality,willdoubtlessconstitutethemostserious
problem.
—Giventhecurrentbackgroundofseriousandsometimescriticalbudgetarydifficulties,itistobefeared
thattheproposedtaxmayinthefinalanalysissimplyprovideawelcomeopportunitytoincrease
budgetaryrevenue.Ifthiswerethecasetherewouldbeanewincreaseinthelevelofmandatorytaxesof
about1percentagepointofGDP,oncethetaxisfullyoperational,eventhoughthelevelofmandatory
taxesintheECisalreadytoohigh.'
Voting
For:56,against:83,abstentions :3

NoC108/26 OfficialJournaloftheEuropeanCommunities 19.4.93
Thefollowingmembers,presentorrepresented,votedfortheproposedamendment (Counter-Opinion ):
Mr/Mrs:ARENA,ASPINALL,BAGLIANO ,BEALE,BELL,BELTRAMI ,BERNABEI,BLACK,BREDIMA­
SAVOPOULOU ,CEYRAC,CHEVALIER ,CONNELLAN ,DELOROZOY ,DONCK,FRERICHS,GAFO
FERNANDEZ ,GARDNER,GERMOZZI ,GHIGONIS ,GIACOMELLI ,GIESECKE,GREEN,GUILLAU­
ME,KAARIS,KAFKA,KAZAZIS,LAUR,LITTLE,LOW,LYONS,MERCEJUSTE,MEYER-HORN ,
MOBBS,MORIZE,NOORDWAL ,OVIDEETIENNE,PANEROFLOREZ,PARDON,PEARSON,PEL­
LETIERCh.,PELLETIERR.,PERRIN-PELLETIER ,PETERSEN,PRICOLO,PROUMENS ,ROBINSON ,
ROMOLI,SAUWENS,SCHADE-POULSEN ,SCHLEYER,SCHNIEDERS ,SOLARI,STECHERNAVAR­
RA,TESOROOLIVER,WHITWORTH ,WICK.
Thefollowingmembers,presentorrepresented,votedagainsttheproposedamendment (Counter-Opinion ):
Mr/Mrs/Miss:ABEJONRESA,AMATO,BLESER,BOISSEREE,BORDES-PAGES ,BRIESCH,CAL,CAR­
ROLL,CASSINA,CEBALLOHERRERO,CHRISTIE,COLOMBO ,DECAILLON ,vonderDECKEN,
DIAPOULIS ,vanDIJK,DOUVIS,DRAIJER,DRILLEAUD ,DUNKEL,ELSTNER,ENGELEN-KEFER ,
ETTY,EULEN,FLUM,FORGASICABRERA,FRANDI,FREEMAN,GEUENICH ,GIATRAS,GOMEZ
MARTINEZ ,GREDAL,GROBEN,HAGEN,HILKENS,JANSSEN,JENKINS,deKNEGT,KORFIATIS ,
LACAMARTIN,LAPPAS,LARSEN,LIVERANI,LUSTENHOUWER ,MADDOCKS ,MANTOVANI ,
MARGALEF MASIA,MASUCCI,MAYAYOBELLO,MERCIER,MOLINAVALLEJO,MORELAND ,
MORRIS,MOURGUES ,MUÑIZGUARDADO ,NIELSENB.,NIELSENP.,NIERHAUS,PELLARINI,
PETROPOULOS ,PIETTE,POMPEN,QUEVEDOROJO,RANGONIMACHIAVELLI,REA,ROSEIN­
GRAVE,SANTIAGO ,SANTILLAN CABEZA,SANTOS,SCHMIDT,SCHMITZ,vonSCHWERIN ,
SEQUEIRA,SILVA,SMITH,SPYROUDIS ,STRAUSS,TIXIER,VELASCOMANCEBO,VERBOVEN ,
WAGENMANS ,WALDACK ,ZUFIAURNARVAIZA .
Thefollowingmembers,presentorrepresented,abstainedinthevote:
Mr:ATAÍDEFERREIRA ,BERNS,PAVLOPOULOS .
OpinionontheproposalforaCouncilDirectiveonfoodadditivesotherthancoloursand
sweeteners
93/C108/07
On3July1992,theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle100aoftheTreatyestablishingtheEuropeanEconomicCommunity,onthe
abovementioned proposal.
TheSectionforProtectionoftheEnvironment ,PublicHealthandConsumerAffairs,which
wasresponsibleforpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon
2February1993.TheRapporteurwasMrHilkens.
Atits303rdPlenarySession(meetingof24February1993),theEconomicandSocial
CommitteeadoptedthefollowingOpinionbyamajorityvote(with13votesagainstand
4abstentions).
theScientificCommitteeforFoodmustbeobtained
beforeanyadditivecanbeauthorized.1.Introductorycomments
1.1.TheCommissionproposalisdesignedtoflesh
outtheprovisionsoftheFrameworkDirectiveonthe
approximation ofthelawsoftheMemberStatescon­
cerningfoodadditivesauthorizedforuseinfoodstuffs
intendedforhumanconsumption (Directive89/107/
EEC).
1.2.TheFrameworkDirectivespecifiesthepermit­
tedcategoriesoffoodadditives.Theprincipleof
approvedlistsofadditivesisapplied.Theopinionof1.3.Article3oftheFrameworkDirectivestatesthat
particularprovisionscoveringthepermitteduseofthe
additivecategorieslistedinitsAnnexaretobelaid
downinacomprehensive Directive.Thiswillalso
incorporateexistingspecificverticalDirectives.