COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 26.08.1997 
COMC97) 436 final 
96/0218 (CNS ) 
Amended proposal for a 
COUNCIL DECISION 
CONCERNING THE ORGANISATION OF 
COOPERATION AROUND AGREED COMMUNITY ENERGY 
OBJECTIVES 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
Subject: Amended Proposal for a Council Decision: The organisation of the 
co-operation around agreed Community energy objectives. 
COM(96)0431 - 96/0218(CNS) 
Legal base: Art 130.3 
The above-mentioned draft Council Decision was approved by the Commission on 
4 October 1996 and published in the Official Journal No C. 27/9 of 28 January 1997. 
The Committee on Research, Technological Development and Energy (CERT) of the 
European Parliament appointed Mr U Stockmann as Rapporteur. After having 
received the advice of the Committee on Legal Affairs and Citizen's rights and the 
Committee on Economic and Monetary Affairs and Industrial Policy, the CERT 
approved, in April 1997, the Stockmann report. A plenary debate and vote took place 
in Strasbourg on 15 May 1997. 
At this debate Commissioner Papoutsis: 
- accepted the amendments N°s 2, 3, 12, 5, 8, part 1, and 3 of 11 and 15; 
- proposed a compromise for the first part of amendment 6; 
- rejected amendments 4, 7, 9, and the second and the fourth part of 11. 
Reasons why the following amendments were acceptable. 
Amendment 2. 6th whereas clause 
The Parliament added "whereas they will concentrate on increasing efficiency and on 
renewable energy sources and, in the case of nuclear technologies, on safe techniques 
for final storage". 
This amendment is acceptable. It does not prejudge the use of R&D funds. The 
precise R&D priorities will, of course, be established in the discussion on the 5th 
Framework programme. 
Amendment 3. Article 1 
The Parliament added 
- "avoiding surplus capacity", this amendment is acceptable. It avoids dumping into 
other markets; 
- "securing initiatives, including those taken at national level, which are designed to 
promote and develop sustainable energy technologies", this amendment is acceptable. 
We should welcome any initiative to promote the introduction of renewables, which is 
an agreed objective of Community energy policy; 
- "reducing energy consumption" this amendment is acceptable. It is coherent with all 
the principal objectives of Community energy policy. 
Amendment 12. Article 2 paragraph 2. new point 
- "the development and rapid introduction of a taxation or incentive system 
commensurate with sustainable energy policy objectives", this amendment is 
acceptable. Such systems can contribute to the realisation of our energy objectives. 
Z, 
Amendment 5. Article 2 paragraph 2 
Adding: 
- " In the framework of its responsibilities under the Treaty, and in compliance with the 
principle of subsidiarity, the Commission will propose specific Community actions 
and/or programmes to attain the agreed energy policy objectives listed in the Annex"; 
this is acceptable. It confirms the active role of the Commission in energy policy. 
Amendment 6. Article 3 paragraph 2 
For the first amendment, a compromise was proposed by adding after 'where 
appropriate': "but at least every two years", which assures regularity, but leaves 
flexibility for earlier reporting if the situation gives reason for this. This compromise is 
acceptable. 
The proposed second amendment 
- " The report shall also contain a comparative presentation of whether and to what 
extent the Member States have made progress towards the achievement of the agreed 
energy policy objectives", is just a clarification of an essential element of the report. 
Amendment 8. first part annex point 3 
The Parliament deleted 
- " undistorted prices" and added: 
- "taking into account the goal of environmentally sustainable development - operate 
on the basis of fair competition", this is acceptable. It underlines competition as a base 
for pricing. Furthermore, it gives the possibility to promote environment friendly 
energies. 
Amendment 15. first part. Annex, point 6 
The Parliament added: 
- "using the best possible environmentally acceptable technologies", which is 
acceptable. This amendment opens the possibility for a European contribution to 
global environment problems. 
Amendment 11. Annex, paragraph after point 8. hyphens 
Two of the four amendments were acceptable. 
The Parliament added: 
- "harmonisation of framework conditions", which supports the objective of fair 
competitiveness and avoids distorted situations in the Member States; 
to the 5th hyphen: 
- "the fiscal and environmental instruments", which is broader than the fiscal structure 
and therefore limits the possibility for distortions. 
3 
The following amendments were rejected. 
Amendment 4 (Creation European Climate Change Agency) was not acceptable seeing 
the substantial political and institutional consequences. 
Amendment 7. would make one (environment protection) out of the three principal 
objectives the "Primus inter pares", while the others (competitiveness and security of 
supply) are equally important. It would change the balance among the energy policy 
objectives. 
Amendment 9 , which proposed to "develop a standardised calculation method" for the 
internalisation of external costs, is not acceptable. It is too premature to develop a 
standardised method. 
Amendment 11. second part (introduction of an energy consumption taxation) was 
rejected. The Commission recently proposed a general taxation on energy products. 
It is preferred to wait the results of the discussion in Council and Parliament before 
introducing another taxation. 
Amendment 11. fourth part - "formulation and acceptance of a chapter in the EU 
Treaty devoted to energy requiring sustainability, energy efficiency, conservation of 
resources and preservation of the environment", which is an amendment which 
supports the efforts to get an energy chapter in the Treaty of Amsterdam. 
Although Commissioner Papoutsis welcomed this amendment during his reaction at 
the Plenary Session of the Parliament, it lost its validity considering the results of the 
Inter-Governmental Conference of Amsterdam. 
V 
Amended Proposal For a Council Decision 
Concerning 
the Organisation of Cooperation Around Agreed Community Energy Objectives 
ORIGINAL TEXT AMENDED TEXT 
THE COUNCIL OF THE EUROPEAN 
UNION 
Having regard to the Treaties, and in particular 
Article 130(3) of the Treaty establishing the 
European Community, 
Having regard to the proposal from the 
Commission,1 
Having regard to the opinion of the European 
Parliament,2 
Having regard to the opinion of the Economic 
and Social Committee,3 
Whereas, at the Energy Council of 7 May 
1996, the Council, in its Resolution on the 
White Paper "An Energy Policy for the 
European Union", invited the Commission to 
put in place a process of co-operation between 
the Community and the Member States in order 
to ensure that Community and national energy 
policies are compatible with agreed common 
energy objectives; 
Whereas, this process needs to be placed in the 
context of a shared analysis of the energy 
situation and of future trends through 
cooperation at the Community level between 
Member States on energy studies; 
Whereas the promotion of the internal energy 
market being a priority task for the Community 
and the Member States, it is important for the 
internal energy market that energy trends and 
issues be analyzed at the Community level, THE COUNCIL OF THE EUROPEAN 
UNION 
Having regard to the Treaties, and in particular 
Article 130(3) of the Treaty establishing the 
European Community, 
Having regard to the proposal from the 
Commission,1 
Having regard to the opinion of the European 
Parliament,2 
Having regard to the opinion of the Economic 
and Social Committee,3 
Whereas, at the Energy Council of 7 May 
1996, the Council, in its Resolution on the 
White Paper "An Energy Policy for the 
European Union", invited the Commission to 
put in place a process of co-operation between 
the Community and the Member States in order 
to ensure that Community and national energy 
policies are compatible with agreed common 
energy objectives; 
Whereas, this process needs to be placed in the 
context of a shared analysis of the energy 
situation and of future trends through 
cooperation at the Community level between 
Member States on energy studies; 
Whereas the promotion of the internal energy 
market being a priority task for the Community 
and the Member States, it is important for the 
internal energy market that energy trends and 
issues be analyzed at the Community level, 
JOn°C... 
JO n° C... 
JO n° C... 
X 
through cooperation with the energy sector and 
by mobilising all the local, regional, national 
and Community elements concerned; 
Whereas, this process of cooperation, with due 
regard to the principle of subsidiarity, must 
ensure a maximum of coherence and 
convergence in relation to agreed energy 
objectives if the Community's economic and 
environmental policy goals are to be achieved; 
Whereas, the Community has a wide range of 
competencies in the energy sector under the 
existing Treaties but there is still no 
comprehensive energy policy framework; 
Whereas, the RTD Framework Programmes 
based on the EC Treaty and the Euratom Treaty 
ensure the development of new energy 
technologies related to the non-nuclear and 
nuclear energy; 
Whereas, without prejudice to the existing 
responsibilities of Member States as regards 
their own energy sectors, the White Paper 
proposes a new approach to energy policy 
cooperation around agreed energy policy 
objectives and a new approach to monitoring 
energy trends, in cooperation with the Member 
States, which would add value by pinpointing 
and encouraging best practices, by promoting a 
cooperative approach to energy studies and 
analysis and by exchanging relevant experience; 
Whereas, a firm commitment to Community 
energy objectives by Member States requires 
effective cooperation at Community level to 
ensure that both national and Community 
energy policies contribute to their attainment; through cooperation with the energy sector and 
by mobilising all the local, regional, national 
and Community elements concerned; 
Whereas, this process of cooperation, with due 
regard to the principle of subsidiarity, must 
ensure a maximum of coherence and 
convergence in relation to agreed energy 
objectives if the Community's economic and 
environmental policy goals are to be achieved; 
Whereas, the Community has a wide range of 
competencies in the energy sector under the 
existing Treaties but there is still no 
comprehensive energy policy framework; 
Whereas, the RTD Framework Programmes 
based on the EC Treaty and the Euratom Treaty 
ensure the development of new energy 
technologies related to the non-nuclear and 
nuclear energy; whereas they will concentrate 
on increasing efficiency and on renewable 
energy sources and, in the case of nuclear 
technologies, on safe techniques for final 
storage; 
Whereas, without prejudice to the existing 
responsibilities of Member States as regards 
their own energy sectors, the White Paper 
proposes a new approach to energy policy 
cooperation around agreed energy policy 
objectives and a new approach to monitoring 
energy trends, in cooperation with the Member 
States, which would add value by pinpointing 
and encouraging best practices, by promoting a 
cooperative approach to energy studies and 
analysis and by exchanging relevant experience; 
Whereas, a firm commitment to Community 
energy objectives by Member States requires 
effective cooperation at Community level to 
ensure that both national and Community 
energy policies contribute to their attainment; 
Whereas, in the framework of this cooperation, 
the Commission needs to have regular and 
appropriate information from Member States so 
that it can establish periodic reports on the 
extent to which Member States' energy policies 
and Community actions contribute to 
Community energy objectives; 
Whereas these periodic reports that evaluate 
energy developments in a global manner will 
provide the basis for an examination of energy 
developments in the Council and for the 
Commission to make appropriate new 
legislative proposals; 
Whereas, in order to take account of the 
changing energy situation the Community, on 
the basis of a Commission proposal, needs to 
examine periodically, and where necessary to 
update the agreed common objectives; 
Has decided as follows: 
Article 1 
A framework for energy cooperation between 
the Community and the Member States is 
hereby established around agreed Community 
energy objectives which are set out in annex, 
and which, while constituting specific measures 
in support of actions taken in the Member 
States, will notably contribute to: 
- achieving a high level of competitiveness in 
the Community, 
- increasing security of supply, 
- protecting the environment, 
- promoting the rational and efficient use of 
energy resources and new and renewable 
energy, 
- promoting international energy cooperation 
and liberalisation, Whereas, in the framework of this cooperation, 
the Commission needs to have regular and 
appropriate information from Member States so 
that it can establish periodic reports on the 
extent to which Member States' energy policies 
and Community actions contribute to 
Community energy objectives; 
Whereas these periodic reports that evaluate 
energy developments in a global manner will 
provide the basis for an examination of energy 
developments in the Council and for the 
Commission to make appropriate new 
legislative proposals; 
Whereas, in order to take account of the 
changing energy situation the Community, on 
the basis of a Commission proposal, needs to 
examine periodically, and where necessary to 
update the agreed common objectives; 
Has decided as follows: 
Article 1 
A framework for energy cooperation between 
the Community and the Member States is 
hereby established around agreed Community 
energy objectives which are set out in annex, 
and which, while constituting specific measures 
in support of actions taken in the Member 
States, will notably contribute to: 
- achieving a high level of competitiveness in 
the Community, 
- increasing security of supply, 
- avoiding surplus capacity. 
- protecting the environment, 
- promoting the rational and efficient use of 
energy resources and new and renewable 
energy, 
- promoting international energy cooperation 
and liberalisation, 
1 
- ensuring transparency of national and 
Community energy policy actions, 
- developing an analysis and monitoring of the 
energy market. 
Article 2 
1. In order to achieve the agreed energy 
objectives described in Article 1, the 
Commission will ensure the following: 
1. 
2. 
5. 
2. the monitoring of the impact of agreed 
common energy objectives of energy 
policy developments in Member States and 
of the evolution of the global energy 
situation in view of a possible adaptation of 
the common energy objectives set out in 
annex; 
the scrutiny of Community and national 
actions in the energy field and the 
exchange of best practices; 
the monitoring, evaluation and exchange 
of energy related information on all aspects 
of energy activity; 
the development of cooperation and 
linkages in the energy field; 
the encouragement of the broad 
dissemination of the results obtained from 
the measures in 3 and 4. 
The Commission will examine the 
necessity of specific Community actions in 
support of measures taken in the Member 
States: securing initiatives, including those taken at 
national level, which are designed to 
promote and develop sustainable energy 
technologies, 
ensuring transparency of national and 
Community energy policy actions; 
developing an analysis and monitoring of the 
energy market, 
reducing energy consumption. 
Article 2 
1. In order to achieve the agreed energy 
objectives described in Article 1, the 
Commission will ensure the following: 
1. the monitoring of the impact of agreed 
common energy objectives on energy 
policy developments in Member States and 
of the evolution of the global energy 
situation in view of a possible adaptation of 
the common energy objectives set out in 
annex; 
2. the scrutiny of Community and national 
actions in the energy field and the 
exchange of best practices; 
3. the monitoring, evaluation and exchange 
of energy related information on all aspects 
of energy activity; 
4. the development of cooperation and 
linkages in the energy field; 
5. the encouragement of the broad 
dissemination of the results obtained from 
the measures in 3 and 4. 
5b. the development and rapid introduction of 
a taxation or incentive system 
commensurate with sustainable energy 
policy objectives; 
2. In the framework of its responsibilities 
under the Treaty, and in compliance with the 
principle of subsidiarity, the Commission will 
propose specific Community actions and/or 
^ 
Article 3 
1. The Commission shall be informed 
annually of the measures taken by Member 
States for achieving the agreed common 
energy objectives referred to in the annex 
and on any other measure relevant to these 
objectives. 
2. The Commission will prepare on the basis 
of the information obtained, where 
appropriate, a report in the form of a 
Communication, on the compatibility of 
energy policies in the Member States and 
Community actions in the energy field with 
the agreed common energy objectives. This 
report shall be forwarded to the European 
Parliament, the Council, the Economic and 
Social Committee and the Committee of 
the Regions; 
Article 4 
This Decision shall enter into force on.... ; 
Article 5 
This Decision shall be published in the Official 
Journal of the European Communities. 
Done at Brussels, 
For the Council, 
The President programmes to attain the agreed energy policy 
objectives listed in the Annex. It will also 
examine the necessity of specific Community 
actions in support of measures taken in the 
Member States; 
Article 3 
1. The Commission shall be informed 
annually of the measures taken by Member 
States for achieving the agreed common 
energy objectives referred to in the annex 
and on any other measure relevant to these 
objectives. 
2. The Commission will prepare on the basis 
of the information obtained, where 
appropriate, but at least every two years, a 
report in the form of a Communication, on 
the compatibility of energy policies in the 
Member States and Community actions in 
the energy field with the agreed common 
energy objectives. The report shall also 
contain a comparative presentation of 
whether and to what extent the Member 
States have made progress towards the 
achievement of the agreed energy policy 
objectives. This report shall be forwarded 
to the European Parliament, the Council, 
the Economic and Social Committee and 
the Committee of the Regions; 
Article 4 
This Decision shall enter into force on.... ; 
Article 5 
This Decision shall be published in the Official 
Journal of the European Communities. 
Done at Brussels, 
For the Council, 
The President 
Annex 
AGREED COMMON ENERGY OBJECTIVES 
1. Energy policy at the Community level 
should contribute to the achievement of the 
various energy objectives set out in the Treaties 
notably, market integration, sustainable 
development, environmental protection and 
security of supply. 
2. The integration of the Community energy 
market, based on the principle of open and 
competitive markets, is essential for achieving 
flexibility, efficiency and long-term security in 
the energy sector. Integration should take into 
account the diverse energy mix of the Member 
States, both fossil and non-fossil, and enhance 
economic and social cohesion particularly 
through the development of trans-European 
networks. 
3. Transparent and undistorted energy prices 
with the aim of ensuring that markets for all 
fuels in the Community work efficiently and 
are fully competitive. 
4. In order to achieve the Treaty objective of 
sustainable development, energy and 
environmental objectives need to be integrated. 
Wherever possible the full cost of energy 
production and consumption should be reflected 
in the price. Economic non-fossil fuels such as 
renewables and nuclear incorporating the 
highest safety standards, can make an important 
contribution to this goal. 
5. The strengthening of security of supply 
through improved diversification and flexibility 
of domestic and imported supplies, by 1. Energy policy at the Community level 
should contribute to the achievement of the 
various energy objectives set out in the Treaties 
notably, market integration, sustainable 
development, environmental protection and 
security of supply. 
2. The integration of the Community energy 
market, based on the principle of open and 
competitive markets, is essential for achieving 
flexibility, efficiency and long-term security in 
the energy sector. Integration should take into 
account the diverse energy mix of the Member 
States, both fossil and non-fossil, and enhance 
economic and social cohesion particularly 
through the development of trans-European 
networks. 
3. Transparent energy prices with the aim of 
ensuring that markets for all fuels in the 
Community work efficiently and - taking into 
account the goal of environmentally sustainable 
operate on the basis of fair development 
competition. 
4. In order to achieve the Treaty objective of 
sustainable development, energy and 
environmental objectives need to be integrated. 
Wherever possible the full cost of energy 
production and consumption should be reflected 
in the price. Economic non-fossil fuels such as 
renewables and nuclear incorporating the 
highest safety standards, can make an important 
contribution to this goal. 
5. The strengthening of security of supply 
through improved diversification and flexibility 
of domestic and imported supplies, by 
^o 
developing environmentally sound indigenous 
energy resources and by ensuring energy have 
the ability to respond quickly and flexibly to 
supply emergencies, notably with respect to oil 
and gas. 
6. A coordinated approach to external energy 
relations in order to ensure free and open trade 
and a secure framework for energy investments. 
Co-operation with non-member countries should 
be developed to enhance energy security, to 
achieve environmental goals and to stimulate the 
development and dissemination of appropriate 
energy technologies to third countries. 
7. The promotion of renewable energy 
resources through supportive measures at both 
Community and national level with the aim of 
achieving for this fuel a significant share of 
primary energy production in the Community 
by 2010. 
8. A significant improvement in energy 
efficiency in the Community by the year 2010 
through an improved coordination of both 
national and Community measures. 
In order to contribute to the achievement of the 
above objectives the Community will use the 
large range of instruments in the energy sector 
that are available to it, notably 
research and development and the 
dissemination of new and improved energy 
technologies, 
harmonising the fiscal structure on energy 
products to avoid distortions, 
applying the competition rules of the 
Treaties with a maximum of transparency 
and consistency, 
standardisation in the energy sector, developing environmentally sound indigenous 
energy resources and by ensuring energy have 
the ability to respond quickly and flexibly to 
supply emergencies, notably with respect to oil 
and gas. 
6. A coordinated approach to external energy 
relations in order to ensure free and open trade 
and a secure framework for energy investments 
using the best possible environmentally 
acceptable technologies. Co-operation with non-
member countries should be developed to 
enhance energy security, to achieve 
environmental goals and to stimulate the 
development and dissemination of appropriate 
energy technologies to third countries. 
7. The promotion of renewable energy 
resources through supportive measures at both 
Community and national level with the aim of 
achieving for this fuel a significant share of 
primary energy production in the Community 
by 2010. 
8. A significant improvement in energy 
efficiency in the Community by the year 2010 
through an improved coordination of both 
national and Community measures. 
In order to contribute to the achievement of the 
above objectives the Community will use the 
large range of instruments in the energy sector 
that are available to it, notably 
harmonisation of framework conditions. 
research and development and the 
dissemination of new and improved energy 
technologies, 
harmonising the fiscal and environmental 
instruments on energy products to avoid 
distortions, 
applying the competition rules of the 
Treaties with a maximum of transparency 
and consistency, 
nt 
monitoring of the internal market, 
instruments for cooperation and assistance 
with third countries, 
development of cost-effective instruments 
for limiting the negative environmental 
side effects of the production, transport and 
use of energy. standardisation in the energy sector, 
monitoring of the internal market, 
instruments for cooperation and assistance 
with third countries, 
development of cost-effective instruments 
for limiting the negative environmental 
side effects of the production, transport and 
use of energy, 
•OL 
ISSN 0254-1475 
COM(97) 436 final 
DOCUMENTS 
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Catalogue number : CB-CO-97-439-EN-C 
ISBN 92-78-23901-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
•13