No C 227/6 Official  Journal  of the European  Communities 10. 9. 79 
Opinion  on the communication  from  the Commission  to the Council:  'Energy  objectives  for 
1990  and  programmes  of the Member  States' 
The opinion  of the Committee  is not based  on any  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 165th  plenary  session  held  on 24 January  1979  the Committee,  acting  on a proposal 
from  the Bureau,  decided  to deliver  an opinion  on the abovementioned  subject  on its own 
initiative. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 168th 
plenary  session  held  in Brussels  on 22 and  23 May  1979. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and  in particular  Article  235 
thereof, 
Having  regard  to the fourth  paragraph  of Article  20 of 
the Rules  of Procedure, 
Having  regard  to the decision  taken  by the Economic  and 
Social  Committee  on 24 January  1979  (on  the proposal 
from  its Bureau)  to draw  up an opinion  on the matter, 
Having  regard  to the  decision  taken  by its Bureau 
instructing  the Section  for Energy  and  Nuclear  Questions 
to draw  up an opinion  and  a report  on the matter, 
Having  regard  to the opinion  issued  by the Section  for 
Energy  and  Nuclear  Questions  at its 48th  meeting  held 
on 27 April  1979, 
Having  regard  to the report  submitted  by the rapporteur, 
Mr Margot, 
Having  regard  to the  discussions  at its 168th  plenary 
session  held  on 22 and  23 May  1979  (meeting  of 23 May 
1979), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
with  no votes  against  and  one  abstention: 
1. General  comments 
1.1. The  Commission's  communication  is intended 
primarily  as a third  report  to the  Council  on the 
implementation  of the  1985  energy  policy  objectives. 
The Committee  has  in previous  opinions  dealt  with earlier  progress  reports  on the  achievement  of these 
objectives.  The  Committee  would  emphasize  the fact  that 
if energy  production  and  consumption  come  somewhat 
near  the  targets  set for 1985,  as is anticipated,  this  is 
largely  the result  of the economic  crisis.  It has a number 
of further  more  specific  comments  which  are contained 
in the Section's  report.  All in all, these  would  seem  to 
indicate  that  the prospects  for the energy  situation  in the 
Community  are a matter  for special  concern. 
1.2. Secondly,  the Commission's  communication  sets 
out for  the first  time  energy  objectives  for 1990,  thus 
extending  its forward  look  by five  years.  This  the 
Committee  welcomes. 
1.3. These  forecasts  are especially  important  as they 
indicate  growing  uncertainty  on the Community's  energy 
supply  situation  in the  1980s.  Irrespective  of how  the 
estimates  put  forward  are  evaluated,  the  Committee 
believes  that  the general  outlook  is such  that  a concerted 
effort  by the  Member  States  at both  national  and 
Community  level  to improve  the energy  supply  situation 
is now  needed  more  urgently  than  even  in order  to make 
balanced  economic  growth  possible  in the Community.  It 
considers  that  the  economic  and  political  risks  of 
continuing  to rely  on the energy  policy  approach  of the 
past few  years  are too great  for the Community  to run. 
The Committee  accordingly  calls  on the Member  States 
to adopt,  as part  of a Coherent  Community  policy,  all 
necessary  measures  to  develop  the  Community's 
indigenous  energy  sources  to the  maximum,  to secure 
vital  imports  and  to ensure  that  optimal  use  is made  of 
the energy  available  to it. 
1.4. The  Committee  recognizes  that  the Commission 
based  its forecasts  on those  submitted  to it by the 
Member  States,  so as to minimize  discussion  on the 
figures.  At the same  time,  the Commission  must  proceed 
beyond  the basic  task  of aggregation,  and  make  its own 
assessment  of the forecasts.  The  Committee  notes  that 
10. 9. 79 Official  Journal  of the European  Communities No C 227/7 
the margins  of uncertainty  given  in the communication 
(Table  VI) are  a step  in this  direction.  The  figures 
provided  by the  Member  States  in certain  instances 
would,  however,  have  been  more  useful  had  they  been 
cross-checked  with  the view  of the social  partners. 
1.5. The  Committee  is fully  aware  of the difficulties 
involved  in making  forecasts  for energy  over  a 12-year 
period.  Firstly,  there  is a risk  of the outlook  being  too 
heavily  influenced  by current  events.  Secondly,  economic 
and political  factors  in the  intervening  period  can 
significantly  alter  the  picture.  Given  this  type  of 
uncertainty,  the Committee  would  like  to have  seen  the 
Community  forecasts  being  built  up on a range  of 
estimates.  These  could  be  translated  into  several 
scenarios  for 1990  on the  basis  of various  hypotheses 
and taking  economic,  political  and  psychological  factors 
into account. 
1.6. Energy  planning  needs  to be based  on relatively 
conservative  assumptions  about  the  future,  if the risks 
involved  in  the  least  favourable  combination  of 
circumstances  are  to be  adequately  covered.  The 
Committee  therefore  believes  that  the  energy  outlook 
must  not  be presented  in an over-optimistic  light.  This 
could  jeopardize  the substantial  energy  effort  which  the 
Community  needs.  In this  respect,  the  Committee 
considers  that  the Commission  and  each  Member  State 
should  closely  examine  the  most  effective  means  of 
providing  information  (e.g.  a white  paper  or periodic 
reports)  to make  the public  aware  of the energy  problem. 
1.7. One  of the principal  parameters  in the forecasts  is 
the average  annual  economic  growth  rate  of 3 8 % for 
the period.  Committee  notes  that  the  Commission 
regards  this  level  as the  minimum  acceptable  for 
economic  and  social  development.  Indeed,  it could  well 
be below  it. The  figure  also  has to be consistent  with  the 
Community's  medium-term  economic  planning. 
Nevertheless,  there  are  economic,  sociological  and 
political  factors  of uncertainty  which  would  seem  to 
strengthen  the case  for an approach  embracing  several 
possible  scenarios. 
1.8. A  second  major  parameter  is the  relationship 
between  energy  consumption  and  economic  growth.  This 
coefficient  has such  a major  bearing  on energy  forecasts 
as to merit  detailed  study.  Notwithstanding  the complex 
groundwork  involved,  the Committee  believes  that  such 
a coefficient  should  be  built  up  from  individual 
coefficients  worked  out  for energy  consumption  in each 
of the major  sectors  of the economy.  The  coefficient  may 
well itself  vary  with  different  rates  of economic  growth. 
1.9. A  third  significant  parameter  is how  energy 
consumption  is affected  by price  changes.  Noting  the 
relative  lack  of detail  on price  assumptions  in the 1990s' forecasts,  the Committee  urges  the Commission  to carry 
out such  studies  as will  in due  course  provide  more 
information. 
1.10.  Specific  questions  can also  be asked  on some  of 
the individual  figures  put  forward  for  the  different 
energy  sources.  There  is considerable  scope  for variation 
in the field  of rational  energy  use.  The  rapid  increase  in 
installed  nuclear  capacity  in certain  countries  between 
1985  and  1990  would  seem  to  require  close 
examination.  The  increased  contribution  from  natural 
gas (+ 30 million  tonnes  of oil equivalent)  could  on the 
other  hand  be  greater,  while  the  Community's 
consumption  of oil in 1900  could  be less  than  forecast. 
1.11.  The  Committee  notes  that  the  Commission 
assumes  that  in 15 years  the  Community  will  still  be 
importing  at least  half  of its energy  supplies.  The 
Commission  therefore  feels  that  the future  trend  on the 
world  market  is one  of the key  factors  in Community 
energy  policy.  This  underlines  the importance  of using 
indigenous  energy  sources  to the full  and  of diversifying 
energy  imports  from  third  countries. 
1.12.  It  is clear  that  the  trend  of energy  demand  is 
influenced  by the way  society  evolves,  and  that  forecasts 
about  the coverage  of energy  demand  have  as much  to do 
with  the  scale  of energy  resources  as with  costs  and 
technical  developments. 
The Committee  therefore  feels  that  a planned  energy 
policy  must,  in the  medium  term,  take  account  of the 
inter-relationship  between  the  underlying  non-cyclical 
economic,  social  and  technical  factors  which  influence 
the balance  between  supply  and  demand. 
2. Specific  comments 
2.1. External  objectives 
2.1.1.  The  external  objectives  listed  in  the 
communication  are spelled  out  in the paper  'Aspects  of 
external  measures  by the  Community  in the  energy 
sector'.  The  Committee  has  decided  to insert  an 
assessment  of this  particular  document  in this  general 
opinion  and  to incorporate  its specific  comments  on the 
matter  in the accompanying  report. 
2.1.2.  The  Committee  emphasizes  the  need  for  an 
active  and  consistent  policy  aimed  at increasing  energy 
supplies  and  rationalizing  energy  consumption.  The 
Community  must  provide  technical  and  material  aid to 
all countries  with  which  it has  economic  relations  or 
concludes  agreements;  in this  way  it can contribute  to a 
better  balance  between  supply  and  demand  on the world 
energy  market. 
No C 227/8 Official  Journal  of the European  Communities 10. 9. 79 
2.1.3.  The  Committee  insists  on  the  need  for 
Community  action  leading  to more  consistent  policies. 
Although  the Commission  adopts  a similar  attitude,  at 
the same  time  it pronounces  itself  categorically  in favour 
of bilateral  agreements  with  oil- and  uranium-producing 
countries.  The  Committee  is somewhat  surprised  that  the 
Commission  should  assume  that  those  Member  States 
which  conclude  bilateral  agreements  'rightly  assume  that 
these  relations  allow  them  — and  will  continue  to allow 
them  - to cope  with  the difficulties  which  could  arise  in 
their  energy  supply'.  The  Committee  considers  that 
greater  emphasis  must  be placed  on the  need  for  a 
coordinated  Community  energy  policy,  including 
relations  with  third  countries;  naturally  this  does  not 
mean  that  traditional  friendships  between  individual 
Member  States  and  third  countries  have  to  be 
abandoned. 
2.1.4.  While  the Committee  is agreed  on the need  for 
an overall  Community  energy  policy  in respect  of third 
countries,  it sees  no reason  in this  opinion  to deal  with 
the Commission's  specific  proposals  for  external 
measures  by the  Community  in the  coal,  oil,  gas  and 
uranium  sectors.  More  detailed  comments  on this  matter 
can be found  in the report  annexed  to the opinion. 
2.1.5.  As  far as international  cooperation  in research 
and development  is concerned,  and  in particular  the 
development  of new  and  renewable  energy  sources  and 
the rational  use of energy,  the Committee  attaches  great 
importance  to cooperation  between  the Community  and 
the developing  countries,  especially  the ACP  States. 
2.1.6.  It  is  clear  from  the  Commission's 
communication  that  an  increasing  number  of 
international  organizations  are  concerning  themselves 
with  energy  problems.  The  Committee  would  agree  that 
it is desirable  for  the  Community  as such  to play  an 
active  role  in relations  with  all these  organizations, 
although  priority  must  be given  to the  most  effective 
levels  of cooperation,  even  if there  are certain  political 
problems  associated  with  this  cooperation. 
2.2. Internal  objectives 
2.2.1.  The  Committee  is unhappy  about  this  Chapter 
which  contains  only  a few,  uncoordinated  comments 
about  the  policy  envisaged  by various  Member  States, 
with  particular  emphasis  on investment  in the  energy 
sector. 
2.2.2.  The  Committee  would  have  preferred  a 
description  of differences  in circumstances  and  policies 
alleged  to have  a disruptive  impact  on the Community 
economy  as  a  whole,  followed  by  clear-cut 
recommendations  as to the  steps  required  to improve 
policy  coordination,  including  wider,  more  intensive  use of Community  support  arrangements  for  capital 
expenditure. 
2.3. Energy  savings 
2.3.1.  The  Committee  attaches  special  importance  to 
an active  policy  to encourage  the  economical  and 
rational  use of energy. 
2.3.2.  The  Committee  accepts  that  the  energy 
conservation  policy  can  include  appropriate  pricing  for 
the various  types  of energy.  Any  social  problems 
resulting  from  this  pricing  policy  must  be dealt  with  by 
means  of appropriate  adjustments. 
2.3.3.  The  Committee  also  attaches  great  importance 
to the encouragement  of energy-saving  investments  as an 
element  of industrial  policy. 
2.3.4.  Finally  the  Committee  would  like  to see  the 
public  better  educated  about  the  energy  problem.  This 
would  further  conservation  and  make  for more  efficient 
use of energy  in industry,  the building  sector,  transport 
and homes. 
2.4. Solid  fuels 
2.4.1.  The  Committee  considers  that  measures  to 
encourage  coal  production,  and  to promote  the use  of 
solid  fuels  in power  stations  and  industry,  must  take 
account  of domestic  reserves,  domestic  production 
potential  and  import  programming. 
2.5. Nuclear  energy 
2.5.1.  The  Committee  would  point  out that  since  the 
publication  of the document  on the energy  objectives  for 
1990,  discussions  about  the  peaceful  use  of nuclear 
energy  have  had  a greater  influence  on policy  in this  field. 
The Committee  therefore  proposes  using  the 
forthcoming  opinion  on a second  five-year  programme 
on radioactive  waste  management  and  storage  to initiate 
a thorough  debate  on the whole  problem  of the safe  use 
of nuclear  energy. 
2.5.2.  In  the meantime  the Committee  can  only  note 
the specific  share  of nuclear  energy  in the overall  energy 
objectives  for 1990  and  record  its agreement  with  the 
priorities  set  by  the  Commission  as  regards  the 
implementation  of construction  programmes  and  the 
efforts  to solve  the  problem  of storing  and  treating 
radioactive  waste. 
10. 9. 79 Official  Journal  of the European  Communities No C 227/9 
2.5.3.  Community  measures  to maintain  and  develop 
the safe  use  of nuclear  energy  must  be continued  and 
could  be extended  to include  a Community  code  of 
conduct  for nuclear  safety,  as suggested  by the Economic 
and Social  Committee. 
2.5.4.  The  Committee  considers  that  the public  does 
not know  enough  about  endeavours  and  progress.  The 
nuclear  priorities  should  include  provision  of objective 
information,  including  data  on  the  development  of 
nuclear  fusion. (e.g. for domestic  heating).  However,  the public  should 
be presented  with  a realistic  picture  of the outlook. 
2.7. Back-up  measures 
2.7.1.  The  Commission  states  correctly  that  the 
abovementioned  major  measures  should  be coupled  with 
'horizontal  measures'  on  research  and  development 
investment,  environmental  protection  and  public 
information  and  coordination. 
2.6. Development  of  new  and  conventional  energy 
sources 
2.6.1.  The  Committee  considers  that  every 
encouragement  must  be given  to the  search  for  and 
development  of both  conventional  and  new  energy 
sources,  not  only  to cover  the  energy  requirements 
needed  to guarantee  the  level  of social  and  economic 
prosperity  of the industrialized  world,  but  also  to meet 
the growing  demand  of the new  industrial  nations  and of 
the developing  countries. 
2.6.2.  As  regards  the  development  of conventional 
energy  sources,  the  Committee  believes  that  the 
appropriate  administrative  provisions  governing 
offshore  and  onshore  hydrocarbons  exploration  should 
be made  as flexible  as possible,  so as to encourage 
optimal  development. 
2.6.3.  The  Committee  considers  that  the  'strategic 
exploration'  of  hydrocarbon  reserves  requires  an 
approach  other  than  encouragement  for the development 
of new,  conventional-energy  fields.  In view  of the high 
economic  risk  factor  of strategic  exploration,  the 
Committee  considers  that  the Community  must  play  a 
central  role,  especially  in the financing  of research. 
2.6.4.  The  Committee  agrees  that  specific  objectives 
should  be fixed  for sectors  holding  out the best  prospects 
for a switch  from  conventional  to new  energy  sources 3. Conclusions 
3.1. In  this  opinion  on the Commission  document  on 
energy  objectives  for  1990  and  programmes  of the 
Member  States  the  main  points  which  the  Committee 
wishes  to stress  are: 
— the  need  for a Community  energy  policy, 
— the  recommendation  that  the  forecasts  from  which 
the objectives  are  derived  be based  on  several 
scenarios, 
— the  importance  of providing  the public  with  more 
information, 
— greater  efforts  to conserve  energy, 
— accelerated  development  of new  energy  sources, 
— a systematic  integration  of the energy  objectives  into 
relations  between  the  Community  and  third 
countries. 
3.2. In  conclusion,  the  Committee  would  like  to 
express  the grave  concern  it feels  at the present  situation 
in the Community's  energy  sector  and  its prospects  for 
the future.  It urges  the  Commission,  the  other 
Community  and  national  institutions  and  all interested 
parties  to give  top priority  to the measures  that  need  to 
be taken  in this  sector. 
Done  at Brussels,  23 May  1979. 
The Chairman 
of the Economic  and  Social  Committee 
Fabrizia  BADUEL  GLORIOSO