Opinion of the Economic and Social Committee on 'The energy dimension of climate change (Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions)'
Date: 1997-10-29
Institutions: European Economic and Social Committee
Subjects: EU programme, climate change, energy policy, environmental protection, greenhouse gas

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Official Journal of the European Communities

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coherent commitment can the developed countries open
the way to greater involvement of the developing
countries, whose energy consumption is bound to
increase. The United States wishes to make the Kyoto
negotiations conditional on agreements on emission
trading and joint implementation between the developed
and developing countries; but these steps represent a
further stage which can only be reached if the developed
countries work in concert to reduce their emissions.

3. Conclusions

The Committee welcomes the Commission com-
3.1.
munication in the firm belief that the EU’s negotiating
position can help to make the Kyoto conference a
success. However, it reserves the right to return to this
subject after the conference in order to evaluate the
concrete measures proposed, and their distribution
within the EU.

Brussels, 29 October 1997.

The President

of the Economic and Social Committee

Tom JENKINS

Opinion of the Economic and Social Committee on ‘The energy dimension of climate change
(Communication from the Commission to the Council, the European Parliament, the
Economic and Social Committee and the Committee of the Regions)’

(98/C 19/24)

On 20 May 1997, the Commission decided to consult the Economic and Social Committee,
under Article 198 of the Treaty establishing the European Community, on the above-mentioned
communication.

The Section for Energy, Nuclear Questions and Research, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 19 September 1997. The
rapporteur was Mr Boisserée.

At its 349th plenary session (meeting of 29 October 1997) the Economic and Social Committee
adopted the following opinion by 98 votes to 10, with 11 abstentions.

1.

Introduction

These emissions are considered to be at the root of
threatened climate change.

1.1.
The European Commission has circulated its
Communication on the energy dimension of climate
change to the Economic and Social Committee, the
Council, the European Parliament and the Committee
of the Regions. The communication is a follow-on from
the United Nations Framework Convention on Climate
Change, signed in Rio de Janeiro in 1992, to which the
European Community and the Member States are
signatories. The third conference of the parties to this
convention is to be held in Kyoto in December 1997.

The communication reflects the position which
1.1.1.
the Council of the European Union prepared for the
conference on 3 March 1997. The aim is to step up the
commitment of the industrialized countries to ensure
the gradual reduction of emissions of CO2 and other
‘greenhouse’ gases, especially methane and nitrous
oxide.

The aim of the communication is to highlight
1.1.2.
the challenge facing European energy policy as a result
of climate problems. It seeks to identify a number of
fields in which energy-policy measures and options can
help reduce emissions affecting the climate. A further
communication is set to follow later in the year em-
bracing all areas concerned with problems of climate,
i.e. not only energy, but in particular transport, industry
and agriculture.

An action plan to implement the objectives set in Kyoto
is to be drawn up in the aftermath of the Japanese
conference. This action plan is designed to reduce
in
emissions which have a bearing on the climate,
particular by energy-saving measures and by advocating
a switch to other forms of fuel.

Following decisions taken by the Council of
1.1.3.
Ministers in March and May 1997, the negotiating

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objective to be pursued by the EU at the Kyoto conference
is to reduce, by the year 2010, climate-related emissions
originating in the Member States of the OECD and the
newly industrializing countries by 15 % compared with
1990 levels. The European Council confirmed this in
Amsterdam on 16/17 June 1997.

The Commission has taken account of current figures
forecasting a probable rise of some 8 % in CO2 emissions
between 1990 and 2020 (based on the assumption of
‘business as usual’); this takes the aggregate reduction
objective for the Kyoto negotiations to more than twenty
percentage points.

In June 1997, the Council of Ministers also set a
short-term reduction objective of 7,5 % by 2005.

1.2.
To achieve these objectives, the Commission
feels that Member States must make a determined effort
in their environmental, economic and energy policies.
The Commission urges those to whom the communi-
cation is addressed to send out a clear political signal
confirming their resolve to back this position.

1.3.
The Commission’s reflections are based on
assumptions, or scenarios, derived from the demo-
graphic trends and economic growth rates of the past
few decades. They are based on the reduction potential
calculated both by the Commission itself and by experts
in the field.

1.3.1.
Taking the 1992 UN summit in Rio de Janeiro
as a point of reference removes the need to justify again
the forecasts on which the programme is based. The
prognosis is thus that human activities are the root cause
of threatened global-impact climate change (rising sea
levels, affecting, in the first instance, coastal areas). This
prognosis is substantiated by the 1995/96 report of the
UNEP- and WMO-backed Intergovernmental Panel on
Climate Change.

1.3.2.
The Commission communication focuses on
the extent to which emission reduction objectives can
be achieved by innovative technical and administrative
means, and in particular:

— reduced energy consumption, especially by en-
hancing efficiency in energy conversion and use
(for example through combined heat and power
generation) and by applying a similar strategy to
other gases affecting the climate;

— changes in people’s consumption patterns and indus-
try’s consumption priorities by encouraging the
internalization of external costs (including those
related to climate change), for example by applying
economic instruments, such as taxes and charges, in
environment policy;

— improved energy management at local and regional

level;

— increased use of primary energy sources, for which
CO2 emissions range from limited (e.g. natural gas)
to zero (nuclear fuel, renewables).

To implement these measures, the Commission proposes
greater integration of climate policy into other policy
areas and the promotion of research and development.

2. Opinion on the Commission’s climate strategy

2.1.
The Economic and Social Committee has repeat-
edly looked at strategies to reduce CO2 emissions and
other ‘greenhouse gases’ (1). The Committee’s opinion
on the Commission communication on an overall view
of energy policy and actions (2) for example takes up the
call for sustainable development in the energy sector.

2.2.
In line with these opinions, the Committee
broadly endorses the Commission communication but
has a number of criticisms to make:

Delay

2.2.1.
the
implementation of strategic objectives may be a source
of problems:

in submitting proposals

for

Strategic objectives should be developed only
2.2.1.1.
where they can be translated into practice and where
there is the will to implement them. It is of little value,
and hardly motivating, to agree objectives at a strategy
conference only to see them become bogged down
in the implementation phase; this has unfortunately
occurred on more than one occasion in relation to
climate policy. Justification for these reservations is all
the stronger given that the economic and social impact
of the strategy is not to be made clear until the
publication of the action plan.

2.2.1.2.
In particular the Committee is concerned that
information about the overall costs of the Commission’s
plans in the energy field is still not available. It is
concerned as well that information has not yet been
forthcoming about the energy taxes the Commission
will be proposing and, in particular, that there is still no
assessment of the foreseen consequences for employment
that will be entailed. On this latter point the Commission
is reminded that consideration of employment issues
has now to be an integral part of policy analysis and
planning.

(1) Opinion on a specific research and technological develop-
ment programme in the field of the environment (OJ C
332, 31. 12. 1990); Opinion on environment policy and the
single European market (OJ C 332, 31. 12. 1990); Opinion
on the conclusion of the Framework Convention on climate
change (OJ C 201, 26. 7. 1993); Opinion on economic
growth and the environment: some implications for econ-
omic policy making (OJ C 155, 21. 6. 1995).

(2) COM(97) 167 final.

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2.2.1.3. Moreover, the ESC believes the relationship
between strategy and action plan is such that the
considerations outlined in this communication do not
limit the measures to be proposed in the action pro-
gramme.

2.2.2.
policy.

By its very nature, climate policy is global

2.2.2.1.
Agreement between the main operators on
the world stage, particularly the EU and the USA, the
largest emitters of greenhouse gases, is an important
component of any global strategy. The Committee
regrets the USA’s recent reluctance to assist in an
initiative aimed first at defining, then at meeting, climate
objectives.

2.2.2.2.
To make an agreed position more likely, the
Committee feels it would be appropriate for the EU to
enter into negotiations with the USA — and Japan, as
conference host — at an early stage in the run up to the
Kyoto conference. This should not, however, prevent
the EU from taking a clear, forward-looking stance at
Kyoto. Experience has shown many times that such an
approach promotes consensus.

2.2.3.
The Economic and Social Committee feels that
the Council and the Commission have presented their
objectives quite conclusively; the Committee’s task,
therefore, is not to re-examine the premises on which
climate policy is based.

2.2.3.1. However, the ESC believes that the scientific
basis for the forecasts used by the Commission to draw
up its climate policy objectives and to assess the scale of
the problem is somewhat narrow and should be
extended. This is true in particular of the following:

— the relationship between economic growth and
energy consumption, as regards both expected
growth levels and the link between energy consump-
tion and growth;

— the impact of the expected technological innovations
in relation to

over the period in question, e.g.
efficiency of energy conversion and consumption;

— influences on energy demand by factors outside

policy control;

— objectives for climate-relevant gases other than CO2.

2.2.4.
Irrespective of climate stabilization, the econ-
omic and technological opportunities offered by devel-
opments of the kind depicted in the Commission’s
communication are very great. The climate convention
can thus help promote the development of energy-saving
technologies, build up new energy sources, improve
energy efficiency and, overall, conserve scarce resources.
The Commission should say more about these issues.

3. Opinion on the implementation of a climate strategy

Climate policy cannot be implemented unless its

3.1.
objectives are integrated into other policy areas.

3.1.1.
This also applies to the common agricultural
policy and structural policy. The Economic and Social
Committee endorses the Commission’s proposal to use
the Structural Funds to step up greenhouse gas emission
reduction measures, in line with the action plan.

3.1.2. More emphasis should be placed on the role of
transport policy, particularly since CO2 emissions from
this sector are on the increase.

3.2.
The ESC feels a climate strategy can be
implemented only if ordinary people and the economic
and social players involved recognize the purpose of
measures designed to change standards and patterns of
use. Procedures should accordingly be introduced to
develop consultation and participation.

3.2.1.
In presenting the action plan, particularly one
aimed at energy saving and switching, the scientific
findings on anthropogenic climate change should again
be given a comprehensive airing. This is all the more
important in the wake of doubts that have been raised
in some quarters recently as to the accuracy of climate
forecasts.

3.2.2. Measures aimed at winning public acceptance
should explicitly weigh up the risks of doing nothing
against the cost of climate policy measures. A clear
indication should be given, for example, of the poten-
tially major threat which climate change poses, particular
to coastal areas.

The energy sector has a crucial

3.3.
implementing a climate strategy.

role

in

3.3.1.
The Commission draws attention to the SAVE
programme to promote energy saving and the Altener
programme for the development and use of alternative
(renewable) energy resources. These considerations
could be expanded in an action plan to include arrange-
ments of the kind already introduced by regulatory
means in some Member States, such as the non-fossil
fuel obligation for individual regions, or the obligation
to buy electricity generated from renewables.

Forecasts of the market share of renewable
3.3.2.
energy in the shorter or longer term and of future cost
trends for energy generated using different technologies
are somewhat speculative. To be realistic, an action
plan must, in the first instance, proceed on the basis of
current knowledge and likely technological develop-
ments.

3.3.2.1.
The ESC therefore believes that, if there is to
be any significant reduction in CO2 emissions in the
it will also be impossible to do
foreseeable future,

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without nuclear energy at the present time (1). The
availability of fossil fuels with specifically limited CO2
emissions such as natural gas, or which are linked to the
extraction of other energy sources is limited. It is right
to promote the expansion of renewables, and their
market share is set to rise. Even so, for the time being,
it is inconceivable that these energy sources will replace
fossil fuels to any great extent in the foreseeable future.

3.3.3.
The use of nuclear energy requires, however,
that problems of operating safety and waste disposal be
solved. These problems also undermine public accep-
tance of nuclear energy. It is likely, however, that
operating safety and waste disposal problems will be
solved before overcoming problems associated with the
early replacement of CO2-emitting energy generation by
equivalent generation from renewable sources.

3.3.4.
That said, the Economic and Social Committee
believes that an energy action plan must still keep every
option open for low or zero-CO2 energy generation.

The action plan will have to pay particular
3.3.5.
attention to problems impeding the achievement of
climate-policy objectives in states likely to be applying

for membership of the European Union. The objective
of reducing energy consumption is likely to be achieved
in particular by improving the efficiency of energy
conversion and energy use; these are areas where there
is a tremendous amount of catching up to be done in
the majority of applicant countries.

The Commission takes the view that implemen-
3.4.
tation should rely heavily on environmental agreements
between industry and the Member States.
In this
connection, the ESC would draw attention to its opinion
on the subject (2), outlining the scope, practicalities
and limits of environmental agreements. In a 1996
publication (IEA/OECD) the OECD listed voluntary
industrial commitments in a number of Member States
to reducing CO2 emissions in individual sectors (3).

4. The role of the Economic and Social Committee

The Economic and Social Committee would like to
collaborate in drawing up the action plan to implement
climate policy agreements in the EU. To promote the
practical application of the action plan, the Committee
is also ready to provide information to, and help motivate
the public and the economic and social operators.

(1) Opinion on the nuclear industry in the European Union

(OJ C 206, 7. 7. 1997, p. 88).

(2) OJ C 287, 22. 9. 1997, p. 1.
(3) Quoted from EU magazine No 6/1996, p. 29.

Brussels, 29 October 1997.

The President

of the Economic and Social Committee

Tom JENKINS