WRITTEN QUESTION P-2490/01 by Bart Staes (Verts/ALE) to the Commission. Redirection of European petroleum subsidies to sustainable energy sources.
Date: 2001-09-07
Institutions: European Parliament, Provisional data
Subjects: Community budget, EU programme, energy policy, environmental protection, fossil fuel, pollution control measures, renewable energy

C 93 E/142

Official Journal of the European Communities

EN

18.4.2002

(2002/C 93 E/171)

WRITTEN QUESTION P-2490/01

by Bart Staes (Verts/ALE) to the Commission

(7 September 2001)

Subject: Redirection of European petroleum subsidies to sustainable energy sources

In its answer to question H-0527/01 (1), the Commission merely summarises the existing programmes for
renewable energy sources. Over the period 1994 , 1999 10 percent of the total energy budget was
devoted to renewables. This amounted to € 300 million. From 1998 to 2002 the Commission intends to
allocate approximately € 477 million to alternative energy sources under the Fifth Action Programme and
Altener.

Between 1975 and 1998 the Commission gave 747.72 million euro in subsidies to European petroleum,
gas and coal producers. The special treatment reserved for petroleum stands in stark contrast to the
ambitious Kyoto objectives for CO2 emissions.

However, an article in the Far Eastern Economic Review (see Courier International of 12 to 18 July 2001,
p. 21) shows the importance of lower petroleum subsidies for combating CO2 emissions. By reducing
subsidies for fossil fuels, China has managed to reduce CO2 emissions significantly since the mid-1990s.

Does the Commission acknowledge that reducing subsidies for fossil fuels has helped to reduce CO2
emissions in China, as described in the Far Eastern Economic Review (see Courier International of 12 to
18 July 2001, p. 21) on the basis of a study by the Lawrence Berkeley National Laboratory in California
(April 2001)? If so, does the Commission intends to redirect its support for the oil industry , following
China’s example , to the development and promotion of alternative energy sources? If not, why is the
Commission refusing to redirect its support to the oil industry to the development and promotion of
alternative energy sources, given the positive effects that similar action has had in China?

(1) Written answer of 3.7.2001.

Answer given by Mrs de Palacio on behalf of the Commission

(3 October 2001)

The Commission acknowledges that sustainable energy sources should be supported financially and
through effective policy measures.

In respect of the support granted to fossil fuels, it should be noted that this support is not a subsidy but a
financial contribution for the demonstration of innovative and efficient energy technology. As a matter of
fact no subsidies were given to oil and gas companies as this is contrary to Community competition
legislation.

Since 1998, support for demonstration of innovative oil and gas technology has been gradually decreased
and redirected towards renewable energies and projects for energy savings. However, the Commission
promotes a balanced approach to the promotion of innovative energy technology and therefore a limited
amount of support has also been granted to technology for conventional energy sources, such as oil and
gas.

It should be added that, when granting support to oil and gas technology, preference was always given to
projects reducing the environmental impact of the use of fossil fuels. For example, in relation to the Kyoto
target it should be pointed out that migration to natural gas from fuels with higher carbon content is one
of the most effective instruments to reduce greenhouse gas emissions. An additional example of the
contribution of hydrocarbon technology to the reduction of greenhouse gas emissions is a technique called
underground storage of carbondioxide (CO2). By means of this technique, greenhouse gases can be safely
and permanently disposed of in underground reservoirs.

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Official Journal of the European Communities

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In respect of the energy situation in China, it is true that over the last few years China has reduced its
emissions substantially. However, such reductions were mainly achieved by closing down some old and
very inefficient power generation plants and replacing them with new and more efficient power generation
facilities. It should also be mentioned that China had been relying on coal for about 80 % of its energy
balance. As a comparison, the current contribution of coal to the Community’s energy balance is around
15 %.

In conclusion, during the last few years the amount of financial support for energy technology has been
redirected towards renewable energy sources. When allocating the residual support to fossil fuels, priority
was given to projects that reduce the environmental impact of the use of fossil fuels. The Commission is
committed to the promotion of renewable energy sources, not only through programmes for the financial
support of such sources, but also through appropriate policy measures such as the recently approved
directive for the promotion of electricity produced from renewable energy sources (1).

(1) 2001/77/EC.

(2002/C 93 E/172)

WRITTEN QUESTION E-2492/01

by Glenys Kinnock (PSE) to the Council

(14 September 2001)

Subject: Corruption

Would the Council outline what steps it has taken to implement the commitment made at the Africa-
Europe Cairo Summit, in April 2000, to ‘take necessary measures to combat corruption … and to ensure
that illegally acquired public moneys lodged in foreign bank accounts are investigated and returned to the
countries of origin’?

Reply

(10 December 2001)

The fight against corruption and the promotion of good governance constitute fundamental components
of the Union’s policy vis-à-vis its partners in Africa and elsewhere in the world. That policy is implemented
in particular through a number of agreements which the Union has concluded with third countries,
including the Cotonou Agreement with the ACP countries and through specific assistance programmes
financed by the Community aimed at strengthening the institutional capacities of the countries concerned.

As regards the question of illegally acquired public funds lodged in foreign banks, the Council gives a
reminder that the commitments entered into at the Africa-Europe Summit held in Cairo in April 2000
concern not only the institutions which took part in that summit but also the governments of states
represented at it. Therefore, taking account of the nature of the questions to be resolved, the Council
considers that at this stage bilateral cooperation between the States concerned seems to be the most
promising manner of tackling specific problems which may arise in this context.

Moreover, the Council draws attention to the fact that the EU-Africa Ministerial Conference in Brussels on
11 October 2001 will review progress reached in the discussions on all questions covered by the Cairo
Plan of Action, including those raised by the Honourable Member.