Opinion of the Economic and Social Committee on the "Green Paper — Towards a European strategy for the security of energy supply"
Date: 2001-05-30
Institutions: European Economic and Social Committee
Subjects: EU publication, competitiveness, energy supply, environmental protection, security of supply

7.8.2001

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Opinion of the Economic and Social Committee on the ‘Green Paper — Towards a European
strategy for the security of energy supply’

(2001/C 221/06)

On 4 December 2000 the Commission decided to consult the Economic and Social Committee, under
Article 162 of the Treaty establishing the European Community, on the above-mentioned Green Paper.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 8 May 2001. The rapporteur was
Mrs Sirkeinen.

At its 382nd plenary session of 30 and 31 May 2001 (meeting of 30 May) the Committee adopted the
following opinion by 112 votes, with three abstentions.

1.

Introduction

Energy is an essential commodity for all. Modern
1.1.
society is highly vulnerable to changes in energy availability
and price. Relatively small disruptions can have detrimental
effects on the economy, social conditions and competitiveness.
Energy production and use can also have a major impact on
the environment and public health.

EU energy policy has three parallel objectives: main-
1.2.
taining competitiveness, securing the supply and protecting
the environment. Although the market and circumstantial
factors have changed, these prime objectives are still entirely
topical.

1.3.
The opening up of energy markets to competition in
the Member States and the aim of creating an internal market
in electricity and gas are changing the ground rules of energy
policy (1).

Energy companies can no longer be individually
1.3.1.
obliged to make certain investments or to take other measures
as was the case in the time of state monopolies. Nor is it
possible any longer in a competitive market to pass on
whatever costs may arise to the consumer.

1.3.2.
Competition generally makes for efficient use of
resources and brings down prices on open energy and gas
markets. There are fears that this in turn will reduce the
motivation to use energy efficiently and to save it, and will
prioritise short-term profits at the potential expense of long-
term needs and consequences.

1.3.3.
An internal market in energy in itself improves the
supply situation in that the resources of many countries are
pooled, at least in theory. However, this requires a true,
completely open internal market in which the opportunities
for cross-border trade are effective and balanced and transport
connections are adequate.

1.4.
It is a feature of world energy markets that they
only partially function in accordance with the principles of
competition. Much of the world’s oil is in the hands of a cartel.
The number of operators in the natural gas market is small, as
the high cost of infrastructure limits the degree of freedom in
the market and pricing continues to be linked to that of oil. A
large proportion of both oil and gas reserves are found in
politically unstable regions. Electricity is a product that cannot
be stored and is very difficult to transport over long distances.
These technical factors restrict the extent to which there can
be a free market for electricity.

1.5.
As markets have opened up, Member States are now
facing a new situation. What measures can be taken to ensure
that power companies make adequate investment in energy
production and distribution at the appropriate time and in a
way which favours the environment so that shortages and the
associated repercussions do not occur? By way of example, a
serious problem occurred in California, where the markets
were opened up in a clearly unsuccessful way, with wholesale
prices being liberalised but prices for the final consumer kept
at artificially low levels. However the real reason for the
electricity shortage was that during a period of over ten years
no additional electricity production capacity was developed in
the state, nor were the transit grids strengthened. At the same
time demand for electricity has grown rapidly. Europe must
learn from this.

(1) Proposal for a Directive of the European Parliament and of the
Council amending Directives 96/92/EC and 98/30/EC concerning
common rules for the internal market in electricity and natural
gas (COM(2001) 125 final).

The task of governments in open energy markets is to
1.6.
establish a framework for ensuring that the market functions
efficiently and that other social objectives can be achieved.

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Governments, or in certain countries states or regional govern-
ments in part, are responsible for:

Many of
directly or indirectly to energy production and use.

the EU’s environmental provisions apply either

— ensuring efficient and fair competition in the market

which also guarantees the entry of new players;

— safeguarding the public service,

including sufficient

capacity under normal circumstances;

— any necessary taxation;

— promoting research and development activity;

— relations with other states and the EU;

— and promoting environmental protection and security of
supply in the energy sector, in particular through the
promotion of:

— diversification of energy supply sources,

— the use of renewable energy resources,

— the efficient production, use and saving of energy,

— sufficient strategic stockpiles and spare capacity.

Member States continue to have the right and responsibility to
make their own choices concerning the forms of energy to be
used independently.

1.7.
The EU has been responsible for establishing the
necessary common framework by applying in particular the
articles on competition, the internal market and research
cooperation. The most important measures are:

— integrated stockpiles of oil and oil products,

— minimum rates of taxation on oil products,

— the electricity internal market directive and monitoring

its implementation,

— the natural gas internal market directive and monitoring

its implementation,

— the rules for the internal energy market in connection

with the above directives,

— joint measures for increasing the use of renewable energy

sources, such as the Altener programmes,

— joint measures for increasing energy efficiency, such as

the SAVE programmes,

— promoting international

cooperation (Synergy pro-

grammes),

— research cooperation in the energy sector under the

framework programmes, and

— Euratom Treaty joint measures in the field of nuclear

energy.

1.8.
The ESC has endorsed the above-mentioned energy
policy objectives in numerous opinions (1). To avoid repeating
the Committee’s views on the various aspects, it is only the
key messages which are reiterated here. The ESC has supported
the opening up of markets as a means of guaranteeing
competitiveness, but it has also called for the social and other
implications to be taken into account. The public service
requirement must be maintained to prevent exclusion and to
safeguard social cohesion. The Committee has called for a high
level of environmental protection in line with the EU’s
environmental action programmes and observing the principle
of sustainable development. It has also supported the strong
emphasis on renewable energy sources and efficient energy
production and use.

2.

Summary of the Commission Green Paper

The Green Paper is the response to an observable fact:
2.1.
Europe’s growing future energy dependence. The European
Union is extremely dependent on its external supplies. It
currently imports some 50 % of its requirements, a figure that
will rise to about 70 % in 2030, with an even greater
dependence on oil and gas, if current trends persist.

Current energy consumption is covered for 41 % by
2.2.
oil, 22 % by natural gas, 16 % by solid fuels (coal, lignite, peat),
15 % by nuclear power and 6 % by renewable. By 2030 the
energy balance will continue to be based on the following
assumptions for fossil fuels: 38 % oil, 29 % natural gas, 19 %
solid fuels, 6 % (2) nuclear power and barely 8 % renewable.

2.3.
The EU cannot free itself from its increasing energy
dependence without an active energy policy. Energy receives
no more than a mention in the preamble to the Amsterdam
Treaty. The Green Paper outlines the need to rebalance the
policy of supply by clear actions for a policy of demand.

(1) ESC opinion on Community Energy Policy (own-initiative opin-
ion) of 14.9.1994, OJ C 393, 31.12.1994; ESC opinion on the
Green Paper ‘For a European Union Energy Policy’ (COM(94) 659
final) of 5.7.1995, OJ C 256, 2.10.1995

(2) Assuming neither the member states nor the EU do anything to
at least replace current plant when it reaches the end of its
operational life.

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2.4.
The analysis in the Green Paper sets out to show that
efforts will have to focus on orienting the demand for energy
in a way which respects the EU’s Kyoto commitments and is
mindful of the security of supply. Security of supply does not
seek to maximise our autonomy in energy or to minimise our
dependence but to reduce the risks connected to the latter.

If present policy continues,

3.2.
the prospects for the
next 30 years are bleak. External dependence is growing
substantially and so are greenhouse gas emissions. There is no
reason to doubt the theories and calculations. The scenario
which is emerging must be taken seriously and account of it
taken in all relevant measures.

Therefore, the Green Paper sketches out the bare bones

2.5.
of a long-term energy strategy according to which:

— The Union must rebalance its supply policy by clear
action in favour of a demand policy (mainly by promoting
energy saving in buildings and the transport sector).

— It states the need to develop actions to modify trends in

order to fulfil EU obligations under the Kyoto Protocol.

— It highlights the value of taxation measures to steer
demand towards better-controlled consumption which is
more respectful of the environment.

— The development of new and renewable energies is the
key to change, doubling their share in the energy supply
quota from 6 to 12 % and passing from 14 % to 22 % for
electricity production to be achieved between now and
2010.

— The contribution of atomic energy in the medium term
in its turn, be analysed without omitting any
must,
element of the debate: waste management, global warm-
ing, the security of supplies, sustainable development, etc.

— Research on waste management technologies and their
implementation in the best possible safety conditions
must be actively pursued.

— As imports of oil and gas are increasing, a stronger
mechanism ought to be provided to build up strategic
stocks and also to strengthen and diversify supply
networks.

2.6.
The Commission does not propose in the Green Paper
a ready-made strategy: it launches a debate on the essential
questions which shed light on the energy choices to be made
in the EU.

3. General comments

3.3.
The Commission’s study is, however, very EU-centric
and the issue must also be considered from a global perspec-
tive. Fossil fuels, which will continue to account for the
majority of the planet’s energy supply for the long term, are
limited. The highest energy consumption is in North America
and Europe, but as living standards rise in other parts of the
world, fuel use is increasing fast in these countries. Competition
for energy resources is intensifying, increasing the likelihood
of a crisis, and there is already some talk of future energy wars.
Against this background the Commission should be far more
concerned about the EU’s external dependence.

3.4.
The time frame of the study should also be longer.
Some basic aspects of the energy sector do not change much
even over a 30-year period. Bigger changes in fossil fuel
availability, for example, will not be apparent until later. On
the other hand, the most recent technological solutions will
probably only be really significant over the longer term. It is
clear that the level of precision of the current analysis does not
allow the time span to be extended. However, certain basic
factors, such as the outlook for fossil
fuel reserves and
demographic change, could have been projected over a longer
time frame. Longer-term assessments of breakthroughs in new
technologies should be carried out.

3.5.
The most important measure for reducing the risks
associated with energy supply and other risks is to ensure the
most diverse and balanced possible use of different types and
forms of energy. In addition, efforts must be made to ensure
the optimal use of every economically and ecologically feasible
energy source. This cannot be emphasised enough. In this
respect, the rapid growth in the use of natural gas and major
reduction in the proportion of nuclear power forecast by the
Commission would seem to be problematic. This trend also
considerably increases both dependence on imports and
greenhouse gas emissions.

3.1.
The ESC welcomes the Commission Green Paper as a
commendable document. The various parts of the study point
to the fact that the EU’s external dependence is high and
increasing, and at a time when oil and consequently also gas
price trends have brought a reminder of the detrimental effects
of dependence,
it makes sense to try to put together a
global picture of future developments. The environment, and
especially the prevention of climate change, cannot be ignored
when discussing energy, or indeed in this context.

3.6.
The significance of energy to the national economy
and the economic impact of energy policy decisions should be
examined more closely. Although energy costs currently only
account for a small percentage of national product, economic
growth and competitiveness are highly sensitive to energy
price rises. Growth in energy consumption is at present slower
than economic growth; however within the EU two kWh of
energy are still used on average for every euro of national
product. Oil price changes continue to have a direct impact on
the price of natural gas and coal, and changes in primary

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energy prices have a far-reaching multiplier effect on the
economy. In addition, the exchange rate between the dollar
and euro has a decisive impact, as the price of oil is still, at
least for the time being, determined in dollars. Efforts should
be made to conduct energy trade in euros.

the case, to foresee a framework policy for imports? In this
context, is it appropriate to favour an economic approach:
energy cost; or geopolitical approach: risk of disruption?

The document

3.7.
raises a major question: can the
measures envisaged by the Commission, i.e. mainly making
energy use more efficient and increasing the use of renewable
energy resources, really reverse the trend of external depen-
dence and increasing greenhouse gas emissions within the
timeframe in question without compromising economic and
employment objectives? The Commission does not give any
kind of figures on this point.

3.8.
To respond to the major challenges of the Green Paper,
the Commission needs to develop the common harmonised
framework, the aim of which is to ensure general welfare and
economic development and provide households and industry
with a secure energy supply at a reasonable price, while
respecting the principles of environmental protection and
sustainable development. The assumption should be that
Member States retain the right to take energy policy decisions
independently, particularly with regard to forms of energy
production, as well as the other views expressed in this
opinion. Nevertheless, at the same time the Commission could,
as it did in 1973 and 1979, establish indicative EU Community
objectives that could serve as a reference basis for Member
States to define their own energy plans, striving to achieve
collectively these EU objectives.

In view of the global dimension of energy supply, the

3.9.
Commission should add the following to its list of questions:

The large energy consumption of other industrialised countries
and the growing energy needs of developing countries are also
continuing to increase the use of fossil fuels considerably.
What measures could be taken by the EU to support the efforts
of third countries to achieve sustainable development? Should
renewable energy sources, especially solar energy, and the
transfer of energy-saving technology and know-how to
developing countries be promoted?

4. Answers to the Commission’s questions

4.1.1.
The EU cannot at present avoid increasing its depen-
dence on external energy sources, even though doing so
entails risks to the security of supply and competitiveness.
Dependency cannot be eliminated, but the risks can and should
be kept low.

4.1.2.
Some EU Member States and regions are particularly
vulnerable as their external dependence is over 50 %. The
energy policies of these countries must pay special attention
to the supply question. It is particularly important for these
countries and regions to examine what common measures at
EU level could help to prevent their vulnerability. Particular
attention should be paid to the problems of the EU’s remotest
regions.

4.1.3.
Creating a framework policy as such for energy
imports of one or various fuels is hardly possible in today’s
market. Instead, the opportunities for companies to do busi-
ness freely and under reciprocal conditions should be raised
in all relevant EU bi- and multilateral external relations.
Cooperation between producer countries and the EU should
be stepped up in order to secure favourable trading conditions.
The prime objective should be the most functional and open
markets possible for all energy types and compliance with
WTO rules in the energy sector.

4.2.
Does not Europe’s increasingly integrated internal
market, where decisions taken in one country have an impact
on the others, call for a consistent and co-ordinated policy at
Community level? What should such a policy consist of and
where should competition rules fit in?

4.2.1.
The internal energy market should function as far as
possible according to the general rules governing the internal
market, including competition rules. Since part of the energy
sector is public in nature and relies on transport and distri-
bution networks, special provisions on this are also necessary.

4.2.2.
considering the question of the EU’s common energy policy:

The following aspects should be borne in mind when

4.1.
Can the European Union accept an increase in its
dependence on external energy sources without compromising
its security of supply and European competitiveness? For
which sources of energy would it be appropriate, if this were

— Which aspects need to be dealt with, and which measures
taken, at the EU level so as to be more effective than at
the national level (subsidiarity)?

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— Which of these aspects and measures cannot be handled
by the EU under the present distribution of competences?

growth. Plans to introduce energy taxes must take these
consequences into account and compensate for them as far as
possible.

— Is a specific policy required to ensure a balance between
the three pillars of energy policy: supply, competitiveness
and environmental requirements?

4.2.3.
The ESC’s position on the responsibility of national
governments and the EU with regard to energy policy is
discussed in point 1.6 and 1.7. EU-level action is essential, at
least in order to ensure the efficient operation of the internal
market and also to manage the EU’s external relations,
in
particular with producer countries and the WTO.

4.2.4.
Energy policy in the EU should be linked more
closely with other EU policy areas, such as climate, research
and agricultural policy.

4.3.
Are tax and state aid policies in the energy sector an
obstacle to competitiveness in the European Union or not?
Given the failure of attempts to harmonise indirect taxation,
should not the whole issue of energy taxation be re-examined
taking account of energy and environmental objectives?

4.3.4.
To ensure environmental improvements, the poten-
tial revenue from energy taxes should at least be targeted at
projects designed to protect the environment.

Energy taxation should have an impact on the
4.3.5.
environment, but should not have a detrimental effect on
competitiveness or in social terms. The 1992 and 1997
proposals did not fulfil these requirements in all respects. The
Commission should look into how these conditions could be
met.

Often it is possible and good from a macroeconomic
4.3.6.
point of view to reduce greenhouse gas emissions on the basis
of voluntary agreements instead of relying on taxation. Well-
crafted agreements are often a more reliable way of achieving
the objectives set.

4.4.
In the framework of an ongoing dialogue with pro-
ducer countries, what should supply and investment pro-
motion agreements contain? Given the importance of a
partnership with Russia in particular, how can stable quantities,
prices and investments be guaranteed?

4.3.1.
Energy taxes and state aid are often employed as
instruments to achieve commonly agreed objectives such as
environmental protection, promoting use of renewable energy
resources, etc. To ensure that state aid and taxes do not distort
competition between EU countries, efforts are being made to
introduce harmonisation. If energy taxation is harmonised just
within the EU, this would further weaken competitiveness vis-
à-vis other countries, especially the OECD countries.

4.4.1.
The EU should strive to establish normal and effective
business and investment conditions with producer countries,
for example by supporting the development of energy market
structure and trading conditions. The opportunity for strategic
partnership and long-term EU cooperation with certain pro-
ducer countries should also be considered as an important way
of securing EU energy supply.

4.3.2.
Energy taxes, if employed properly, can guide choices
towards more environment-friendly alternatives if, that is, a
choice exists. This ties in with the idea that the external costs
of different energy forms should be internalised. However, it is
difficult to clearly determine external costs and they tend to
vary a great deal from case to case. With a view to reducing
carbon dioxide emissions it might be sensible to introduce a
carbon dioxide tax, but the internal market means that this is
only possible if fully harmonised.

4.4.2.
Cooperation in the energy sector between the EU
and Russia should be promoted and Russia should be encour-
aged to sign the Energy Charter agreement.

4.4.3.
euros.

An effort should be made to conduct energy trade in

4.3.3.
Taxing energy use will, at least in the long term,
result in energy savings. However, taxing consumption also has
other consequences. If they are not harmonised internationally
they weaken industrial competitiveness and reduce consump-
tion demand in the domestic economy, which affects economic

Should more reserves be stockpiled — as already done
4.5.
for oil — and should other energy sources be included, such
as gas or coal? Should the Community take on a greater role
in stock management and, if so, what should the objectives
and modalities be? Does the risk of physical disruption to
energy supplies justify more onerous measures for access to
resources?

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4.5.1.
Securing the coal supply by stockpiling reserves in
all EU countries or at least at EU level is unnecessary as the EU
has its own coal production and the Commission proposes
keeping it at the level required to ensure security of supply.

4.5.2.
The Member States should be prepared for a problem
with the security of supply resulting from increased use of
natural gas. The conditions for introducing common stockpil-
ing targets should be considered. Consideration should be
given to an appropriate stockpiling system either for gas or for
a substitute fuel. It is virtually impossible to create a uniform
model as the uses, quantities and sources and geological
conditions of natural gas are extremely varied, as are the
possible substitutes.

4.5.3.
IEA activities.

The EU must present a united front in the context of

4.6.
How can we ensure the development and better
operation of energy transport networks in the European Union
and neighbouring countries that enable the internal market to
function properly and guarantee security of supply?

The improvement, construction and use of energy
4.6.1.
transport networks should be based first and foremost on the
market, the companies operating within it and the degree
to which they are self-supporting. The Commission must
effectively implement its plan to strengthen transport connec-
tions. Rules governing access to and use of networks should
be introduced without delay.

If necessary, investment in neighbouring countries
4.6.2.
and other important regions should be promoted using specific
EU funding and EBRD and EIB loans. The Balkans are an
important region in this respect.

4.6.3.
In considering the possibilities for building new
infrastructure for transporting natural gas, no mention has
been made of the northern alternative, even though it would
provide many additional new benefits and would be consistent
with the EU’s northern dimension policy. The objective of the
northern dimension is, as with Mediterranean cooperation, to
narrow regional differences in living standards, promote
economic growth and develop multilateral cooperation in
order to ensure the balanced development of the region. The
main emphasis of northern dimension cooperation is on the
environment and energy. The energy sources of the region are
extensive and diverse.

have received substantial initial development aid and which
are now highly profitable?

4.7.1.
Other sectors are not expected to repay R&D aid. In
addition, the level of aid given, the recipients and present
profitability vary enormously from country to country and
from company to company, making it practically impossible
to come up with a fair solution.

4.7.2.
Through evolving forms of taxation and in certain
support models (guaranteed price and compulsory purchase),
business in traditional forms of energy is already helping, at
least in part, to fund renewables.

To exploit

4.7.3.
the potential of renewable forms of
energy, support measures are necessary. However common
rules should be drawn up as soon as possible for national
support measures in order to ensure an even-handed oper-
ational environment for companies and that the single market
does not become distorted (1).

Seeing that nuclear energy is one of the elements in
4.8.
the debate on tackling climate change and energy autonomy,
how can the Community find a solution to the problem of
nuclear waste, reinforcing nuclear safety and developing
in particular fusion
research into reactors of
technology?

the future,

4.8.1.
In its general comments the Committee has stressed
the need to develop and continue to use all forms of energy.
This includes nuclear energy and coal.

The problem with nuclear power is its political
4.8.2.
acceptability in some Member States, which presupposes
completely open information about nuclear issues.

The safety of nuclear energy in the EU is of the
4.8.3.
highest standard and reactor safety is continually improving.
The techniques exist for the storage and definitive storage of
radioactive waste, and political decisions need to be taken on
these. Research must also be continued on the development of
possible alternative solutions. The use of nuclear energy and
the management of nuclear waste are the responsibility and
competence of the Member States. The Union can assist its
Member States in the field of research and the exchange of
information. In the context of enlargement the EU must ensure
that nuclear safety is of a high standard in the future member
states. It is also important to promote the transfer of EU
countries’ high safety expertise to the less developed countries
using nuclear power.

4.7.
The development of some renewable energy sources
calls for major efforts in terms of Research and Technical
Development, investment aid and operational aid. Should co-
financing of this aid include a contribution from sectors which

(1) See ESC opinion on the Proposal for a Directive of the European
Parliament and of the Council on the promotion of electricity
from renewable energy sources in the internal electricity market
(OJ C 387, 20.12.2000).

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4.8.4.
Electricity from nuclear power does not produce
greenhouse gases. The Commission states that the EU’s current
nuclear energy production, which accounts for 35 % of
electricity used, is equivalent in terms of reducing emissions to
taking 75 million cars off the roads. Nor does nuclear energy
increase external dependence. As the bulk of nuclear energy
costs are capital costs, cost trends are in fact very stable and
predictable.

4.8.5. Member States take the decisions on the use of
nuclear power, and independent decision-making must con-
tinue to be respected in the future. However, it is difficult to
see how the EU can in future meet the challenges of climate
change and ensuring energy supply at reasonable prices
without nuclear power continuing to make at least its current
contribution to electricity production. Nuclear power may also
in the future support the developing hydrogen economy,
which requires a secure supply of electricity or natural gas.

4.8.6.
The EU’s research framework programmes must
continue to support research into nuclear power, including
in particular fusion, by means of extensive international
cooperation. These efforts are important both for developing
the technologies of the future and retaining an essential level
of know-how.

4.9. Which policies should permit the European Union to
fulfil its obligations within the Kyoto protocol? What measures
could be taken in order to exploit fully potential energy savings
which would help to reduce both our external dependence and
CO2 emissions?

4.9.1.
climate change on the basis of the Kyoto agreement.

The EU must continue resolutely its efforts to prevent

The Commission and Member State governments are
4.9.2.
drawing up action programmes; some countries have already
published theirs. As the burden is shared between the Member
States, they have responsibility for implementation. Sectoral
measures at EU level would hamper responsible and cost-
effective action.

4.9.4.
How much energy-saving potential can actually be
realised when at the same time there is a need to safeguard
economic growth and social cohesion?

Can an ambitious programme to promote biofuels
4.10.
and other substitute fuels,
including hydrogen, geared to
20 % of total fuel consumption by 2020, continue to be
implemented via national
initiatives, or are co-ordinated
decisions required on taxation, distribution and prospects for
agricultural production?

4.10.1.
A common EU programme may help to promote
the development and use of biofuels for transport as a means
of harmonising support and other measures and incorporating
this question into the Common Agricultural Policy in an
appropriate manner. Responsibility must, however, lie mainly
with the Member States.

4.11.
Should energy saving in buildings (40 % of energy
consumption), whether public or private, new or under
renovation, be promoted through incentives such as tax
breaks, or are regulatory measures required along the lines of
those adopted for major industrial installations?

4.11.1.
Energy saving in buildings will probably be a matter
for the Member States first and foremost as conditions vary so
much. Building standards are probably an effective means of
regulation, but there can be no question of uniform, EU-wide
standards.

4.11.2.
However, consideration should be given to what
the EU could do to speed up action by the Member States, e.g.
in the field of standardisation and consumption standards. The
Committee will discuss this matter in more detail when
drafting its opinion on the relevant forthcoming proposal for
a directive.

The Commission has presented a programme of
4.9.3.
energy efficiency measures, on which views have been
expressed elsewhere and which should form the basis for
action. There are plenty of opportunities to develop and adopt
new technology while improving the efficiency of energy
production and use. The principle must be to produce as much
as possible from as little as possible.

4.12.
Energy saving in the transport sector (32 % of energy
consumption) depends on redressing the growing imbalance
between road haulage and rail. Is this imbalance inevitable, or
could corrective action be taken, however unpopular, notably
to encourage lower use of cars in urban areas? How can the
aims of opening up the sector to competition, investment in
infrastructure to remove bottlenecks and intermodality be
reconciled?

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4.12.1.
The ESC is waiting for the Commission to present
its proposals on energy saving in transport in its forthcoming
White Paper on transport policy, and will present its views on
this matter in its opinion on that subject.

4.12.2.
through liberalisation, but with due care.

Rail transport needs to be made more efficient

5.4.
The Green Paper raises an important question: can the
measures envisaged by the Commission, i.e. mainly making
energy use more efficient and increasing the use of renewable
energy resources, really reverse the trend of growing external
dependence and increasing greenhouse gas emissions within
the timeframe in question and without compromising econ-
omic and employment objectives?

4.12.3.
Transport in urban areas is clearly a matter for
national or even local administration. The EU could take on
an educational and developmental role.

How can we develop more collaborative visions and
4.13.
integrate the long-term dimension into deliberations and
actions undertaken by public authorities and other involved
parties in order to evolve a sustainable system of energy
supply? How are we to prepare the energy options for the
future?

4.13.1.
here.

R&D and the 6th Framework Programme are crucial

4.13.2.
excluded from development work.

In energy management, no alternative should be

5.5.
To respond to these major challenges, the Commission
must develop the common framework and set EU-wide
indicative targets, starting from the principle that Member
States retain the right to take energy policy decisions indepen-
dently, particularly with regard to forms of energy production.

5.6.
The ESC considers it reasonable to add the following
to the questions posed by the Commission: what action could
the EU initiate to support third countries’ efforts to achieve
sustainable development?

The Committee’s main answers to the questions posed

5.7.
by the Commission are the following:

4.13.3.
authorities must be found.

Appropriate forms of cooperation with national

5.7.1.
The EU cannot avoid increasing its dependence on
external energy sources, but the risks can and should be kept
low.

5. Conclusion

5.1.
The ESC welcomes and commends the Commission’s
Green Paper. It demonstrates that the current policy would
pose considerable problems over the next thirty years in terms
of ensuring the security of energy supply and reducing carbon
dioxide emissions in an enlarged EU.

5.2.
The Commission’s analysis should however be more
global in scope. The planet has limited supplies of fossil fuels,
for which the industrialised countries are already competing
and for which developing countries will increasingly compete
in the future. In this context the risk associated with external
dependency is becoming more evident. The timeframe of the
study should also be longer, as developments in the energy
sector take place slowly and problems will not come to a head
until the second half of the century.

5.7.2.
The objective of the EU’s external relations must be
to safeguard the opportunities for companies to conduct
business in the energy sector freely and under reciprocal
conditions. Long-term relations with producer countries
should be developed.

5.7.3.
Energy policy must respect the principle of sub-
sidiarity. EU-level action is essential, at least in order to ensure
the efficient operation of the internal market and also to
manage the EU’s external relations, in particular with producer
countries and the WTO.

5.7.4.
Energy taxation must have a clear impact on manage-
ment of the environment, however efforts should be made to
avoid any negative consequences in terms of (among other
things) competitiveness and social considerations.

5.3.
The most important measure for reducing the risks
associated with energy supply and other risks is to ensure the
most diverse and balanced possible use of different types and
forms of energy.

5.7.5.
Securing the coal supply by stockpiling reserves is
not necessary in all countries. In order to secure supplies of
natural gas, the use of which is increasing, Member States
should take steps according to their particular needs. The
requirements for introducing common stockpiling targets
must be clarified.

7.8.2001

EN

Official Journal of the European Communities

C 221/53

5.7.6.
The improvement, construction and use of energy
transport networks should be based on the market. The EU
must support the strengthening of transport connections and
establish common ground rules. If necessary, investment in
networks with neighbouring countries and other important
regions, including Northern Russia, should be promoted using
specific EU funding.

To exploit

5.7.7.
the potential of renewable forms of
energy, support measures are necessary and common rules
should be drawn up as soon as possible. Traditional forms of
energy already contribute to this funding even though there
are no objective reasons or precedents for this.

5.7.8.
There are problems connected to nuclear power, but
it also has clear benefits. Member States take the decisions on
the use of nuclear power. However, it is difficult to see how
the EU can in future meet the challenges of climate change
and ensure energy supply at reasonable prices without nuclear

power continuing to make at least its current contribution to
electricity generation.

There are plenty of opportunities to develop and
5.7.9.
adopt new technology to improve the efficiency of energy
production and use.

5.7.10. With regard to the question of transport, the ESC is
waiting for the Commission’s White Paper before taking a
position on these issues.

5.7.11.
Building standards are an effective instrument with
regard to saving energy in buildings; however there can be no
question of uniform, EU-wide standards because climatic and
other conditions vary so much. The Committee will discuss
this matter in more detail when drafting its opinion on the
relevant forthcoming proposal for a directive.

5.7.12.
Research and development activities and the 6th
R&D Framework Programme are of key importance in prepar-
ing for future energy options and sustainable development.

Brussels, 30 May 2001.

The President

of the Economic and Social Committee

Göke FRERICHS