Opinion of the Economic and Social Committee on the 'Proposal for a Council Decision adopting a multiannual framework programme for actions in the energy sector (1998-2002) and connected measures'
Date: 1998-04-29
Institutions: European Economic and Social Committee
Subjects: EU financing, EU policy, action programme, energy policy, international cooperation

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in particular on the basis of Trans-European Freight
Freeways.

6. Conclusion

5.4. Projects adopted by the European Council

The Committee notes that in the list contained
5.4.1.
in Annex III the Multimodal Link Portugal/Spain has
been substituted for the Motorway Lisbon-Valladolid
in keeping with the decision of the European Council at
Dublin in December 1996 and favours the development
of a multimodal link.

Brussels, 29 April 1998.

The Committee would welcome the presentation
6.1.
in the near future of an overview of the entire trans-
European transport network.

6.2.
This should be followed by an assessment based
on setting targets in particular for intermodal net-
working. The Economic and Social Committee would
also like to be consulted on this matter as well as on the
reports which the Commission is required by Articles
18 and 21 to make on the implementation and revision
of the Guidelines.

The President

of the Economic and Social Committee

Tom JENKINS

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Decision
adopting a multiannual framework programme for actions in the energy sector (1998-2002)
and connected measures’

(98/C 214/12)

On 4 February 1998 the Council decided to consult the Economic and Social Committee,
under Article 198 of the Treaty establishing the European Community, on the above-mentioned
proposal.

The Section for Energy, Nuclear Questions and Research, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 7 April 1998. The rapporteur
was Mr von der Decken.

At its 354th plenary session of 29 and 30 April 1998 (meeting of 29 April 1998) the Economic
and Social Committee adopted the following opinion with 115 votes in favour and three
abstentions.

1.

Introduction

The proposal for a Council Decision contains an

1.1.
explanatory memorandum and seven annexes.

— Annex I contains the proposal for a Decision;

— Annex II deals with the financial aspects of the first
area of action, comprising the horizontal measure,
prospective analysis and market monitoring;

— Annex III deals with the financial aspects of the
second area of action, the horizontal measure cur-
rently carried out under the Synergy programme,
promoting international cooperation in the energy
sector;

— Annex IV outlines the thematic programme, pro-
motion of renewable energy sources and its financial
aspects. This thematic programme was formerly
part of Altener II;

— Annex V comprises the action area, energy efficiency
and reduction of CO2 emissions, and its financial
aspects. This thematic programme was formerly
part of SAVE II;

— Annex VI deals with the Carnot programme;

— Annex VII outlines the financial aspects of cooper-
ation with the New Independent States, e.g. with
regard to the transport of radioactive materials
and the fight against illicit trafficking in nuclear
materials.

The aim of the energy framework programme is
1.2.
to ensure the coherence and efficiency of energy policy

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measures. The programmes need to be incorporated
into a better integrated and more transparent and
effective framework. This five-year framework is based
on the linking of horizontal and thematic actions and
programmes.

1.3. Structure of the framework programme — bodies

In order to achieve the highest possible degree of
coherence, particular importance is attached to the
effectiveness of the decision-making process. The Com-
mission proposal relies for its implementation on the
support of a single committee, consultative in nature,
which has still to be established and which will cooperate
with all the bodies involved.

1.4. Horizontal actions

These actions go beyond any specific programme,
making a global contribution to the priority objectives.
While they have their own purpose, they will also ensure
that actions taken under the thematic programmes in
the framework programme are coordinated and will
contribute towards coherence with other Community
policies.

The main objective of the programme for
1.4.1.
prospective analyses and market monitoring and the
actions it comprises is to underpin energy-related
decisions taken at national and Community level with a
uniform analytical basis. The programme is concerned
in particular with the action areas of climate change,
opening up of energy markets and world energy market
trends.

International cooperation in the energy sector
1.4.2.
is planned in the following areas: advice on energy
policy, visits by experts to bodies in third countries,
energy studies and forecasts, training actions, coordi-
nation of the various Community instruments involved
in international actions in the energy sector, dissemi-
nation and exchange of information.

1.5. Thematic programmes

These programmes cover energy-related areas which are
EU priorities.

1.5.1.
Promotion of renewable energy sources and
implementation of a strategy and Community action
plan in this area: As stressed in the Altener II programme,
the aim is to promote the use of renewable energies by
means of market penetration, extension of infrastruc-
tures and circulation of information.

1.5.2.
by the SAVE II programme.

Encouragement of energy efficiency, covered

1.5.3.
fuels, covered by the Carnot programme.

Promotion of clean and efficient use of solid

1.5.4. Measures covered by the action for cooperation
in the nuclear sector on safety are aimed at improving
the system of accounting and monitoring of nuclear
materials (safeguards), and computerized systems at all
levels. Industrial cooperation with Russia and the New
Independent States, and the transport of radioactive
materials, including the fight against illicit trafficking:
This programme will cover six fields of activity, aimed
at facilitating the functioning of the internal market,
evaluating incidents occurring during transport and
cooperating with the CEEC and the NIS to improve the
safety of transport.

1.6. Coordination with energy components of other

Community programmes and policies

Support for research and technological devel-
1.6.1.
opment: The fifth framework programme,
like the
fourth, embraces programmes like Joule and Thermie
and an R&TD programme on nuclear safety and
controlled thermonuclear fusion, implemented on the
basis of the Euratom Treaty and with the participation
of the JRC.

The methods of operation, bodies and
1.6.2.
implementing instruments of the trans-European energy
networks will remain unchanged.

1.6.3.
Coordination with programmes in other areas
of policy, such as external relations (Phare, Tacis and
MEDA), the Structural Funds and investment support,
is to be improved.

1.6.4.
A network of the Directors-General concerned
is to be established to ensure that guidelines involving
an energy dimension are coordinated and transparent.
Each year the network of the Directors-General will
draw up a summary of all the energy actions undertaken
under all the various Community policies.

1.7. General financial elements

The table below gives an indicative breakdown of
funding in million ECU. The estimated budgets are
outlined in detail in the financial statements in the
annex.

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1998

1999

2000

2001

2002

Total

cooperation in the

Energy markets analyses and moni-
toring
International
energy sector
Renewable energy sources
Energy efficiency
Solid fuels sector
Nuclear security

Nuclear security B7-535

Total

1,50

1,53

1,56

1,59

1,62

7,80

7,00
14,40
12,50
0,80
0,50

36,70
2,50

7,14
15,60
12,80
0,81
0,51

38,39
2,50

7,28
17,00
13,90
0,82
0,52

41,08
2,50

7,42
17,00
14,60
0,83
0,53

41,97
2,50

7,57
17,10
14,60
0,84
0,54

42,27
2,50

36,40
81,10
68,40
4,10
2,60

200,40
12,50

The Economic and Social Committee has issued

1.8.
opinions on Altener II (1) and SAVE II (2).

1997) is an important step towards completion of the
internal market and improvement of the Community’s
international competitiveness.

2. General comments

2.1.
The Committee welcomes the Commission docu-
ment as a first step towards a uniform, coherent and
efficient approach to energy policy measures, aimed at
flexibility and transparency. The need to do more in
this priority area is recognized, and a start can now be
made on targeted coordination of the many and varied
efforts required.

2.2.
Community energy policy faces major challenges
in the new few years. The main feature of the energy
situation is growing import-dependence. In view of
this and changing geopolitical conditions, the Union’s
external relations, particularly in the energy field, are of
key importance. EU policy must concentrate more on
securing energy supplies. International cooperation in
the energy sector should ensure greater security of
supply, and contribute to a transfer of culture and a
worldwide improvement in safety standards.

2.3.
In the light of growing globalization, markets
will come closer together and firms will increasingly
compete with each other globally. The interests of
Europe and its citizens must be considered and the
competitiveness of European industry improved to
enable it to withstand global competition.

2.4.
The progress achieved in liberalizing the markets
for electricity (3) and gas (Energy Council of 8 December

2.5.
Another challenge is bringing an environmental
dimension to the above points. The energy policy of the
future must, in embracing the objective of sustainable
growth, also be an environmental policy, or at least
ensure proper treatment of the environment.

2.6.
Bringing energy and environment together in the
framework programme reflects the need for greater
consideration of environmental policy. In view of the
commitments entered into at Kyoto and the measures
needed to fulfil these, it is clear that Community energy
policy has to be brought into line with the objectives of
environmental protection.

2.7.
The low energy prices to be expected as a result
of increasing liberalization and the intensification of
competition could threaten to limit the success of
environmental policy efforts. On the other hand, the
introduction of an energy tax to internalize external
costs could make it more difficult to strengthen the
competitive position of European industry. Apart from
extremely accurate observation, feedback is also needed
from the Member States to counter any trends which
might stand in the way of competition, environmental
protection and citizens’ interests. Against this back-
ground exhaustive discussions will be needed on perma-
nent principles and a future strategy which must take
into account both the environmental dimension, in the
sense of sustainable development, and international
competitiveness, and which will at the same time reduce
import-dependency. Experience in the Member States
may suggest ways in which these to some extent
contradictory objectives can be successfully reconciled.

(1) OJ C 19, 21.1.1998.
(2) OJ C 82, 19.3.1996.
(3) Council and European Parliament Directive, OJ L 27,

30.1.1997.

The Committee welcomes the Commission’s
2.8.
concentration on three priorities: security of supply,

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competitiveness and environmental protection and the
consequent thrust of its energy policy, which is based
on a package of measures to achieve there objectives,
and on efficiency and transparency. An initial, but in
itself insufficient, step towards greater transparency was
the Communication from the Commission — An overall
view of energy policy and actions, on which the
Committee has also issued an opinion (1)

3. Specific comments

The Committee agrees with the Commission that the
energy policy measures taken to achieve greater coher-
ence and efficiency need to be incorporated into a better
integrated, more transparent and effective framework.

3.1. General structure

3.1.1.
The energy framework programme, as submit-
ted by the Commission, is only a first step towards a
uniform approach of this kind. It comprises only
programmes, the financial impact of which falls within
the ambit of Directorate-General XVII. Explicit mention
should be made in the document of this selection
criterion, as it will not be immediately clear to outsiders.

3.1.2. One would expect the framework programme
to provide a summary of measures taken in the energy
sector. The title leads one to expect this. But the
Committee fails to find in the Commission document
any reference to major energy policy measures, and it
regrets that the framework programme comprises only
DG XVII programmes.

3.1.3.
Despite the fact that the European Union’s
limited legal powers do not permit comprehensive
integration of all energy policy measures, the framework
programme should provide a complete overview of all
Commission measures within and outside the pro-
gramme in order to improve the coherence and efficiency
of energy policy. This, together with a less formal
presentation, would make the Commission document
more transparent and comprehensible to the general
public, which is particularly important in view of the
need for public support from European citizens for the
energy sector.

3.1.4.
The Commission does not refer to the separ-
ately financed programmes and actions (those contained
in the framework programme and others proposed by
the Commission), such as for example the Community
strategy to promote combined heat and power (CHP)

and to dismantle barriers to its development(2) and
Energy for the future: renewable sources of energy —
White Paper for a Community strategy and action
plan (3), on which the Committee prepared opinions at
the time. The Committee considers it very important
that these measures be combined into a consistent
programme and that their inter-relationship be highlight-
ed, and calls on the Commission to make further
progress with the integration of energy policy measures.

3.1.5.
The Committee also considers a summary of
actions carried out in the Member States to be a useful
tool in facilitating the productive exchange of experience,
and the development of a coherent and efficient Com-
munity energy policy and complementary measures.
The principle of subsidiarity must at all times be
observed.

3.2. Legal basis

3.2.1.
Efforts by various decision-makers to have an
energy chapter incorporated into the Treaty have still
to bear fruit. The Commission is now sensibly attempting
to use the legal framework available to it to the full
by aiming, via an intensified information flow, for
coordination within the Commission of the various
energy policy measures.

Using the existing, limited legal means at its
3.2.2.
disposal, the Commission has created opportunities for
the future with the setting up of the single committee
and the internal establishment of the network of Direc-
tors-General. If the Commission succeeds in imple-
menting the proposals, in laying the basis for a future
procedure, thus sending a positive signal to the Council
of Ministers, and in showing that the path taken with the
single committee and the network of Directors-General
leads to greater coherence and coordination, it would
be worthwhile considering, at the appropriate time, the
possibility of extending this working method.

The single committee would then have to
3.2.3.
set about eliminating the existing inconsistencies at
Community and Member State level. The Member
States would have to assume substantial responsibilities
in a committee of this kind, which would extend the
role of the committee beyond that of a purely consultative
body, as proposed by the Commission, to an administra-
tive and regulatory body.

3.3. Bodies

3.3.1.
As a result of the stress laid on the horizontal
and thematic programmes, important points relating to
to be
the organizational

structure, which ought

(1) OJ C 19, 21.1.1998.

(2) COM(97) 514 final; ESC opinion: OJ C 157, 25.5.1998.
(3) COM(97) 599 final.

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emphasized more strongly, have been pushed into the
background and not accorded sufficient attention.

3.3.2.
The single committee proposed by the Com-
mission is a new body to be established, with responsi-
bility for the programmes administered within the energy
framework programme and for the coordination of
actions. It will replace existing programme committees
and take on their responsibilities.

Further, detailed discussions will be needed
3.3.3.
on the single committee and the delimitation of its
responsibilities in relation to those of the other energy
policy committees operating under the framework pro-
gramme. Overlapping responsibilities or competition is
to be avoided. The single committee must provide added
value compared with the existing committees which it
is to replace, and it should be suited to taking on their
functions.

The document does not deal in detail with the
3.3.4.
membership of
the single committee, which is to
contribute actively to the coordination of the energy
policy measures conducted in the framework of the
Community’s various policy areas. It is to provide for
the transparency and integration of the various energy
policy measures and the consideration of the necessary
technical know-how. Further details are needed on the
membership and operation of the committee.

3.3.5.
The Commission has submitted a Proposal for
a European Parliament and Council Decision concerning
the Fifth Framework Programme of the European
Community for research, technological development
and demonstration activities (1998-2002), on which the
Committee has issued an opinion (1). The question
should be addressed as to whether experience of the joint
coordinating structure and the consultative structure of
the fifth framework programme can, in the light of very
different legal starting positions, be used for the energy
framework programme, and whether any conclusions
can be drawn.

those not included within the framework programme,
such as the Community strategy to promote combined
heat and power, and the White Paper on renewable
sources of energy and regional policy, as a main plank
of the framework programme, and would like to see it
given prominent billing.

3.4.3.
The network of Directors-General offers an
opportunity to combine the energy-related capacities of
all the Directorates-General, to maintain within the
Commission broad support for a Community energy
policy, and thus to mitigate the disadvantages of the
lack of a separate energy chapter in the EU Treaty.
Common strategies, extending beyond the responsibili-
ties of a single Directorate-General, need to be developed.

3.4.4.
The Committee would like to see the network
of Directors-General draw up, as a matter of priority, a
summary of all relevant measures and areas and continue
this in annual reports on the coordination of energy
policy measures and their impact. A rough overview, as
contained in the Commission Communication on an
overall view of energy policy and actions (2), on which the
Committee has issued an opinion (3), is not sufficiently
specific or complete. The network of Directors-General
should also consider the extent to which the Com-
mission’s energy policy measures contribute to the
achievement of Community objectives.

3.4.5.
In order to be able to make use of the advantages
and opportunities of this network as soon as possible, it
needs to be institutionalized by means of political and
operational guidelines.

3.5.
The network of Directors-General and the single
committee will be responsible for coordination at
Community or framework programme level. The Com-
mittee endorses this approach, provided that future
energy policy is consciously reshaped with these two
new bodies.

3.4.

Improved coordination with energy components
of the individual areas of Community policy

4. The horizontal and thematic programmes

3.4.1.
The Committee agrees with the Commission
that coordination between the Directorates-General
should be stepped up and an annual summary drawn up
of all energy policy actions carried out in the various
areas of Community policy, to prevent any future clashes
between measures, and it welcomes the Commission’s
plan to set up a network of Directors-General.

3.4.2.
The Committee sees this network, which pro-
vides a framework for all energy policy measures, even

4.1. Prospective analyses and market monitoring (4)

The aim of this action is to develop,

in
4.1.1.
cooperation with the Member States, a programme of
regular monitoring of market developments and energy
trends in order that energy policy decisions can be taken
on the basis of a shared analysis.

(1) OJ C 355, 21.11.1997.

(2) COM(97) 167 final.
(3) COM(97) 514 final; ESC opinion: OJ C 157, 25.5.1998.
(4) See annex II to COM(97) 550 final.

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4.1.2.
The Committee considers it appropriate, in
drawing up analyses, to use and build on other studies
and experience. This programme should cover only
additional material; moreover this is appropriate to the
modest funding available, which would in any case not
be sufficient for exhaustive market analyses.

4.2.

International cooperation in the energy sector (1)

4.2.1.
Synergy is a specific programme of inter-
national cooperation in the energy sector. Annex III to
the framework programme is merely a continuation for
five years of the Synergy programme (2) adopted by the
Council in 1997 for one year.

4.2.2.
The Committee supports the programme, but
regrets that, despite productive cooperation on pro-
grammes such as Altener II and SAVE II, it was not
consulted on Synergy.

4.3. Promotion of renewable energy sources (3)

The high importance attached to renewable
4.3.1.
energy sources is a reflection of environmental require-
ments. Clarification is needed however as to how
far the new programme differs from the Altener II
programme already submitted, on which the Committee
has issued an opinion (4), or whether it is in fact identical,
and as to the roles assigned to Altener II and the White
Paper, and the related action plan for renewable energy
sources (on which an ESC study group is preparing an
opinion), within the multiannual programme for the
promotion of renewable energy sources in the Com-
munity.

4.3.2.
The Committee calls for the name Altener to
be retained in view of its familiarity, the name being
inseparably linked with renewable energy sources, and
calls on the Commission, in the interests of clarity, to
list it in the title of annex IV.

4.4. Promotion of energy efficiency (5)

The Committee agrees with the Commission
4.4.1.
on the importance of efficient energy use and sees this
as offering the best opportunities for reduction of CO2
emissions. The Committee has already issued an opinion
on the SAVE II programme (6). For budgetary reasons,
at the time the decision was taken in 1996 funds
could be made available only for the first year of the
programme. The funding for subsequent years was to

(1) See annex III to COM(97) 550 final.
(2) OJ L 104, 22.4.1997.
(3) See annex IV to COM(97) 550 final.
(4) OJ C 19, 21.1.1998.
(5) See annex V to COM(97) 550 final.
(6) OJ C 82, 19.3.1996.

come from the energy framework programme which
was still to be drawn up. SAVE II has now been
integrated into the framework programme and has been
extended to run until 2002.

4.4.2.
The Committee is glad that the funding of
SAVE II is now secure and that the programme has been
extended in time to coincide with the framework
programme. The Commission document unfortunately
does not state however how far the new SAVE II differs
from the existing programme or to what extent it has
been extended. It may be assumed however that any
changes are insignificant.

4.4.3.
The Community strategy to promote combined
heat and power (CHP) and to dismantle barriers to its
development (7), which is also administered by DG XVII,
should be mentioned in the framework of a strategy to
promote energy efficiency as an important contribution
to this objective, even if it is not part of the framework
programme.

4.4.4.
retained and referred to in the title of annex V.

The Committee calls for the name SAVE to be

4.5. Promotion of clean and efficient use of solid

fuels (8)

4.5.1.
Carnot is a contribution to the exploitation of
knowledge gained with regard to the clean generation
of energy from coal. It appears that this area, which has
hitherto been covered by Thermie II, is now to be dealt
with separately.

4.5.2.
The Committee can support this programme,
but points out that the Commission is responsible for
ensuring complementarity with other research pro-
grammes not included in the fifth framework pro-
gramme, such as ECSC and Thermie II programmes,
and for preventing any duplication of work.

4.5.3.
The Committee has issued an opinion on
Thermie II (9). The Commission document does not
place the non-research-related aspects of Thermie in a
broader framework.

4.5.4. With a view to reducing energy-dependency,
particularly in the light of the forthcoming enlargement
of the Union and incidents on the territory of the
accession candidates, the possibility of making increased
use of Europe’s coal reserves should be considered. This
would require more funding for research in the field of
technologies for the clean generation of energy from
fossil fuels.

(7) COM(97) 514 final; ESC opinion: OJ C 157, 25.5.1998.
(8) See annex VI to COM(97) 550 final.
(9) OJ C 393, 31.12.1994.

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4.6. Cooperation in the energy sector (1)

4.6.1.
At first sight the energy framework programme
would appear to earmark relatively little funding for
nuclear safety. This is the result of the selection of small,
individual actions from within the larger field of nuclear
safety, the reasons for which are not clear to outsiders.
The Committee stresses that this approach is not
calculated to boost European citizens’ confidence in
nuclear safety; and they are already very sensitive in
relation to nuclear energy. Broad public support can be
expected only if there is transparency and trust.

4.6.2.
A summary of all nuclear safety programmes
is needed here, with reference to actions in other areas
too (Tacis, Phare 5, research framework programme
etc.), particularly as we are concerned here with a
framework programme. The links with other pro-
grammes need to be made clear.

4.6.3.
The Committee feels that incorporating a small
part of the large field of nuclear safety into an energy
framework programme in such a formal way (financial

(1) See annex VII to COM(97) 550 final.

Brussels, 29 April 1998.

statement), thus creating uncertainty in the minds of
European citizens, is not the right approach. It has to be
established whether added value is created in this way,
or whether perhaps it might be preferable to remove
annex VII from the framework programme and to deal
with it in conjunction with other nuclear safety measures.

5. Final comments

5.1.
The Committee feels that programme documents
in particular should not be drawn up in a formal way,
but rather made comprehensible to a broader, interested
public. It is not clear to outsiders why these few
measures have been gathered together in the framework
programme, but not other energy-related measures of
DG XVII or the Commission.

5.2.
It should also be made clear what ‘framework’
means in the term framework programme. The Com-
mittee urges that the Commission, in drawing up its
documents, pay more attention to clarity and public
impact. The Committee considers this extraordinarily
important in securing the political backing of Europe’s
citizens.

The President

of the Economic and Social Committee

Tom JENKINS