WRITTEN QUESTION P-2422/99

by Hiltrud Breyer (Verts/ALE) to the Commission

(13 December 1999)

Subject: Subsidies for coal and nuclear energy

The White Paper on renewable energy requires the Commission to take action against the subsidisation of coal and nuclear energy.

1. What action has the Commission taken:

(a) against direct subsidies for coal,

(b) against indirect subsidies for coal,

(c) against direct subsidies for nuclear energy,

(d) against indirect subsidies for nuclear energy?

2. If no action has been taken, can the Commission say in what time frame practical steps will be taken?

3. Can the Commission explain why numerous complaints about direct and indirect subsidisation of nuclear energy, e.g. the complaint about EdF and untaxed reserves of the German nuclear industry and references to unnotified aid, are not followed up and penalised by the Commission?

4. Does the Commission agree that continued failure to meet the requirement to terminate the subsidisation of coal and nuclear energy will signify a distortion of competition and an infringement of the Treaty and that the public are beginning to feel that the Commission is deliberately making the conditions of competition difficult for renewable energy?

Answer given by Mrs de Palacio on behalf of the Commission

(20 December 1999)

With regard to coal, on 28 December 1993 the Commission approved the Community rules for State aid to the coal industry (Decision No 3632/93/ECSC)(1) which lay down for the period 1994-2002 a reduction of aid as part of plans for restructuring and reducing activity. In most cases, the pace of restructuring is governed by the need to find solutions to the associated social and regional problems. Indirect aid systems have been abolished.

With regard to nuclear energy, the Euratom Treaty has no provisions concerning competition and State aid. Complaints about State aid being awarded for electricity production using nuclear energy within the Community have never been substantiated.

The Commission is aware of the need to strengthen the promotion of renewable energy in order for the Community to reach its indicative target of 12 % for the contribution from renewable sources of energy to the Community's energy consumption by 2010. The Commission recently launched the campaign for take-off aiming to stimulate private investment in this sector with an emphasis on near-market technologies, notably solar, wind and biomass.

The Commission is currently considering further initiatives for promoting renewable energy, in particular measures related to the operation of the internal market for electricity. As indicated in the White Paper on renewable sources of energy(2), mentioned by the Honourable Member, a significantly increased market penetration for renewable energy is of key importance for achieving the Kyoto commitments on greenhouse emissions. As announced in the White Paper, the Commission is currently considering modifications to the Community guidelines for State aid for environmental protection so that they can take appropriate account of the need to strengthen the competitive position of renewable energy sources and their specific characteristics.

(1) OJ L 329, 30.12.1993.

(2) COM(97) 599 final.