Communication from the Commission on the implementation of the first phase of the European Climate Change Programme
Date: 2001-10-23
Institutions: European Commission
Subjects: climate change, drafting of EU law, environmental monitoring, international negotiations, stratospheric pollution, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 23.10.2001
COM(2001) 580 final

COMMUNICATION FROM THE COMMISSION

on the implementation of the first phase of the European Climate Change Programme

TABLE OF CONTENTS

1.

2.

INTRODUCTION.................................................................................................... 3

COMMISSION PROPOSALS ................................................................................. 5

2.1.

1st section – Cross-cutting Issues ............................................................................. 6

2.1.1.

2.1.2.

Promoting Effective Implementation of the Integrated Pollution Prevention
and Control Directive ............................................................................................... 6

Proposal for a Directive on Linking Project-based Mechanisms including JI
and CDM to EC Emissions trading scheme .............................................................. 8

2.1.3.

Proposal for a Review of the Monitoring Mechanism ............................................... 9

2.2.

2nd Section - Energy Issues.................................................................................... 10

2.2.1.

Proposal for a Framework Directive for Minimum Efficiency Requirements
for End-Use Equipment .......................................................................................... 10

2.2.2.

Proposal for a Directive on Energy Demand Management ...................................... 11

2.2.3.

Proposal for a Directive for the promotion of Combined Heat and Power
(CHP)..................................................................................................................... 11

2.2.4. Additional non-legislative proposals:...................................................................... 12

2.2.4.1. Initiatives on increased energy-efficient public procurement .................................. 12

2.2.4.2. Public Awareness Campaign and Campaign for Take-off ....................................... 13

2.3.

3rd Section – Transport .......................................................................................... 14

2.3.1.

Proposal for shifting the balance between modes of transport ................................. 14

2.3.2.

Proposal for improvements in infrastructure use and charging ................................ 15

2.3.3.

Promotion of the use of biofuels for transport......................................................... 16

2.4.

Industry sector........................................................................................................ 16

2.4.1.

Proposal for a Framework Directive on Fluorinated Gases...................................... 16

3.

THE ECCP – THE NEXT STAGE......................................................................... 17

2

1.

INTRODUCTION

The political context

At the European Council in Gothenburg in June 2001, Heads of State and
Government indicated that combating Climate Change is a major priority of
the European Union’s Sustainable Development Strategy. They confirmed
the European Union’s determination to meet its commitments under the
Kyoto Protocol, and to ratify it so as to allow its entry into force by 2002.

The resumed sixth Conference of the Parties (COP6) under the United
Nations Framework Convention on Climate Change (UNFCC) in Bonn in
July 2001 delivered a major success in reaching a world-wide political
agreement on the outstanding issues concerning the implementation of the
Kyoto Protocol. It is envisaged that the COP7 in Marrakech in November
2001 will finalise the translation of this successful agreement into legal text.

The EU’s leadership at the resumed COP6 has been a determining factor in
the negotiation but also in the firm support for the multilateral approach as
the preferred way to cope with global environmental threats. It is of major
importance to maintain this momentum and to demonstrate determination
along the lines set out by the Heads of State and Government in Gothenburg.
This Communication deals with a concrete set of implementation measures
to be addressed in the Commission’s work programme in the coming 24
months. It is part of a package together with a proposal for the ratification of
the Kyoto Protocol by the EC, as well as a proposal for a Directive on
Emissions Trading within the EU.

The proposed package is a timely one. Not much time is left to reach the
2002 deadline for ratification. Moreover, experience shows that policy
proposals require time before they become law and are transposed and
implemented by the Member States. On top of that, it usually takes years
before they show their emission reduction effect in the real world. In this
perspective, the start of the first Kyoto Commitment Period in 2008, requires
policy action sooner rather than later. This applies in particular when it
concerns policy approaches which are new to the EU such as on emissions
trading.

Several economic analyses of the Kyoto Protocol and its implications for the
EU have been made. The overall compliance costs of the Kyoto Protocol are
to some degree uncertain and could range between an estimated 0.06% of
GDP by 2010, provided cost-effective policies are given full priority1, and up
to 0.3%. Although no comprehensive economic assessment of
the
implications of the resumed COP6 decisions has been made to date, all
indications show that those compliance costs could be lower than the ones
indicated. The reason is that the wider acceptance of various sinks categories

1

Economic Evaluation of Quantitative Objectives for Climate Change
(http://europa.eu.int/comm/environment/enveco/studies2.htm#5

3

and the dropping of quantitative provisions on supplementarity, have created
more flexible and hence a multitude of low cost policy options. On the other
hand additional costs might occur through measures that are justified for
reasons other than reducing greenhouse gas emissions. Such measures are
most likely to be related to the security of energy supply.

Nevertheless many uncertainties remain and will remain as economic and
political developments are difficult to forecast a decade ahead from now. A
decision by the United States to rejoin the Kyoto Protocol would of course be
welcomed throughout the world and in particular by the EU since it would
strengthen the
the Kyoto Protocol
significantly. It would also remove competitive impacts in economic sectors
exposed to the international markets.

effectiveness of

environmental

The way forward

According to the forthcoming 2001 Second Progress Report under Council
Decision 99/296/EC greenhouse gas emissions in the European Union have
decreased by 4 % since 1990. This situation suggests that in 1999, the EU, as
a whole, was in line with its target paths for both 2000 and 2008-2012.
However, projections by Member States and the Commission suggest that
without policies in addition to those already implemented or in the pipeline
greenhouse gas emissions are expected to merely stabilise at 1990 level. This
would leave a gap of –8% (about 340 Mt CO2 eq.). Closure of this gap will
require Member States and the EU to take further action. Since there is still
uncertainty i.a. on the level of economic growth as well on to what extent the
effects of projected measures will in fact materialise it is to be expected that
the –8% objective represents a minimum rather than a maximum of what is
required.

In view of these uncertainties and the difficulties that
the majority of
Member States face in meeting their commitments under the burden sharing
agreement, strong and timely measures at EU level will be an important
element of an EU wide climate change strategy.

The Commission has repeatedly confirmed its commitment to the Kyoto
Protocol and identified further steps as part of 6th Environment Action
Programme (6EAP) and the Sustainable Development Strategy it submitted
at Gothenburg. Last year2 a European Climate Change Programme has been
established to identify and to prepare together with stakeholders from
Member States, businesses and NGO’s common and co-ordinated policies
and measures at EU level.

A final report was published in June 2001. It presented the results of two
different approaches, a top-down cross-sectoral study on a cost-efficient
evaluation of the EU emission reduction objectives and a bottom-up
assessment of policies and measures through expert working groups of the

2

COM(2000)88 final

4

different sectors. On the basis of the criteria of cost efficiency3, emission
reduction potential, time horizon and political acceptability some 40 possible
measures were identified by the expert groups with a combined CO2
emission reduction potential of some 664-765 Mt CO2 equivalent.

At a major conference in Brussels in July 2001, the ECCP approach was
welcomed. At the same time the Commission has been urged to come
forward as soon as possible with concrete policy proposals.

The list of measures advanced by the ECCP must also be seen within the
context of the enlargement of the EU, as they are in many cases of particular
relevance to candidate countries. The ECCP Conference involved experts
from a number of accession countries. Important areas for co-operation were
highlighted, including bio fuels, Combined Heat and Power (CHP) , energy
efficiency in buildings, renewables and implementation of the Integrated
Pollution Prevention and Control (IPPC) Directive. Candidate countries
participated in the discussion on the Proposal for a Directive on Emissions
Trading.

2.

COMMISSION PROPOSALS

This Communication highlights a package of measures, which the
Commission intends to bring forward during the coming 24 months. They are
grouped in four sections: cross-cutting, energy, transport and industry.

€

Those measures represent a cost-effective reduction potential of some 122 -
178 Mt CO2 eq. However, the ECCP also highlighted the importance of
measures which are particularly promising in a long term perspective, and for
which the cost-effectiveness constraint of
20 per tonne of CO2 eq. needs to
be qualified. In this respect, the emission reduction potential could increase
with another 100 Mt of CO2 eq. in view of reflecting pro-active policies in
the field of CHP and Biofuels. In any case, caution is needed in interpreting
figures of the emission reduction potential. For some of these measures
quantification proved difficult. This applies particularly to actions in the
transport sector. These measures are taken from the recently adopted White
Paper on a Common Transport Policy4 which proposes a package of 60
measures in total of which some will also be instrumental in reducing
greenhouse gas emissions.

The list of measures proposed in this Communication has to be situated
against the background of efforts the Commission is currently undertaking to
integrate the environment into other policy areas. Recent initiatives include:
a Directive on further liberalisation of the electricity and natural gas markets
in the EU5, a Directive on the Promotion of Electricity from Renewable

3

4

5

Based upon the broad analysis produced for the ECCP the cost efficiency criteria are
20 per tonne of CO2 equivalent
estimated to be a maximum of
European Transport Policy for 2010:Time to Decide, COM(2001) 370
Proposal for a Directive amending Directives 96/92/EC and 98/30/EC concerning common
rules for the internal markets in electricity and natural gas, COM(2001) 125 final

€

5

sources of Energy in the Internal Electricity Market6, an Action Plan for
Improved Energy Efficiency in the Community7, a Green Paper on the
Security of Energy Supply8 and the revision of the guidelines on state aid for
environmental protection9, and a revision of the trans European network
guidelines. An older but still highly relevant proposal for a Directive
restructuring the Community framework for the taxation of energy products10
has been revived in Council, and the Commission remains firmly committed
to the approach outlined in it.

The ECCP has also confirmed the need for continuous climate research,
technological development and innovation. Further action is required to
the
define with increased accuracy and certainty the evolution of
phenomenon of climate change and its potential impact
in particular in
Europe. Research will also be essential in identifying future cost-effective
and socially acceptable energy and transport technologies and related actions
and methodologies which mitigate climate change.

It is important to continue investing in climate related research. This is
reflected in the Commission’s initiative for establishing the European
Research Area11 and the new Framework Programme 12. They provide the
means for the implementation of the above objectives together with the
Global Monitoring for Environment and Security (GMES) initiative.

A Commission's priority is also to bring researchers closer to policy making
with the view to provide scientifically sound support. In this respect the
establishment of a European scientific "Help Desk" can help both the ECCP
implementation and the development of future policies based on sound
science.

2.1.

1st section – Cross-cutting Issues

2.1.1.

Promoting Effective Implementation of the Integrated Pollution Prevention
and Control Directive

Background

The IPPC Directive takes an integrated approach to pollution prevention and
control in large industrial and agricultural installations. This means that

6

7

8

9

10

11

12

COM(2000) 279. This Directive will contribute to achieve the objective of doubling the share
of renewable energy sources in the consumption of gross energy in Europe from the current
6% to 12% in 2010,as it was anticipated by the 1997 White Paper for a Community Strategy
and Action Plan on Renewable Sources of Energy, COM(97)599
Action plan for improving energy efficiency in the European Community, COM(2000)247
final
Green Paper Towards a European strategy for the security of energy supply, COM(2000)769
final
Community guidelines on state aid for environmental protection, 2001/C37/03, OJ C 37,
03/02/2001, p.3
COM (1997) 30 final
COM (2000) 612 of 4/10/00
COM (2001) 94 of 26/10/01

6

operators and authorities should determine the measures that yield the best
results for the environment as a whole. The IPPC Directive focuses on
prevention. It favours upstream measures (like clean technologies) rather
than “end-of-pipe” pollution control.

The ECCP made a clear recommendation to make better use of the existing
IPPC Directive. The Directive was not conceived specifically for climate
change. However, it introduces an obligation to prevent all forms of pollution
and to use energy efficiently. The technical reference documents elaborated
on EU level, the so-called BREFs, should help bring about greenhouse gas
emission reductions and a more efficient use of energy in the sectors
concerned. National authorities granting the permits shall ensure that
greenhouse gas emissions are prevented or controlled, unless they are subject
to the future emissions trading system for greenhouse gases.

Commission action

– Main elements of the proposals

The Commission will ask an IPPC technical expert group co-ordinated by the
European IPPC Bureau in Sevilla to prepare a special “horizontal” BREF
focusing on generic energy efficiency techniques.
it will
encourage, in the revision of the first edition of BREFs, the technical expert
groups concerned to focus more on providing information and drawing firm
conclusions as far as process-specific energy-efficient
techniques are
concerned.

In addition,

Member States will be encouraged to develop national strategies for dealing
with energy efficiency requirements in the context of IPPC permits and to
phase
for
implementation of October 2007 so that operators are given a reasonable
time to introduce BAT and energy-efficient techniques.

in existing IPPC installations well before the deadline

– Environmental effectiveness and costs

The ECCP did not estimate the environmental effectiveness and costs of
these actions. However a study performed for DG Environment on Energy
Management and Optimisation in Industry13 has indicated considerable cost
effective savings of up to 60-70 million ton of CO2 per year for all
manufacturing installations covered by IPPC, not including implementation
of CHP.

– Time-table

The Commission will continuously promote effective implementation of the
IPPC Directive but put special emphasis on the actions outlined above in
2002 and 2003.

13

http://europa.eu.int/comm/environment/ippc/index.htm (under “IPPC-related documents”)

7

2.1.2.

Proposal for a Directive on Linking Project-based Mechanisms including JI
and CDM to EC Emissions trading scheme

Background

The proposed Directive will be complementary to the Framework Directive
on Emission Trading. It will specify under which conditions “credits” from
project-based mechanisms on greenhouse gas emissions trading can be added
to the allowances. It should enter into force in parallel with the EC emissions
trading scheme in 2005.

Commission action

– Main elements of the proposals

The proposal will be fully compatible with the provisions of the relevant
UNFCCC decisions. Project-based mechanisms will cover projects between
Annex B Parties to the Kyoto Protocol (Joint Implementation) and projects
between Annex B Parties and Non-Annex B Parties (Clean Development
Mechanism). It will also allow those sectors within the Community that are
not covered by the emissions trading regime to engage in emission reduction
projects. The decisions concerning JI and CDM are still under international
negotiation but should be finalised by COP7 in Marrakech in November
2001.

The proposal will be designed in a way that ensures consistency with the
Community’s Development Policy, in order that the overall objective of
sustainable development
in developing countries and countries with
economies in transition is maintained.

– Environmental effectiveness and costs

Allowing the introduction of “credits” from project-based mechanisms
including JI and CDM will help to reduce the costs of compliance in the
is expected that
European Community. At the start-up of the scheme it
transaction costs will be considerable, e.g. for setting up the institutional
framework in Annex B and Non-Annex B Parties (particularly developing
in preparing the necessary project documentation and in
countries),
establishing the contacts between investor and host country. This could lead
to a lower than optimal effective demand for credits. Therefore,
the
Commission will at the same time explore whether these initial problems
during the learning phase could be overcome through public incentives (e.g.
support to institutional capacity building in partner countries, matching grant
scheme for project preparatory activities, kick-start facility for JI/CDM,
In principle, such
voluntary labelling of emission reduction credits).
incentives should be temporary and must be compatible with state aid
provisions.

8

– Time-table

The Commission intends to adopt the Proposal on a Directive for Linking
Project-based mechanisms including JI and CDM with the EC Emissions
Trading Scheme by the first half of 2003.

2.1.3.

Proposal for a Review of the Monitoring Mechanism

Background

Council Decision 93/389/EEC, as amended by Decision 99/296/EC for a
Monitoring Mechanism of Community CO2 and other greenhouse gas
emissions requires the Commission to assess progress at Member States’ and
EU level to reach the Kyoto target through the implementation of adequate
policies and measures. The annual report covers the development of emission
inventories since 1990 and provides an assessment of the effects of current
and future policies and measures. Requirements under the current decision
are insufficient to cover the decisions on reporting under the Kyoto Protocol
as agreed at the resumed COP 6 in Bonn and those that are expected at COP
7 in Marrakech. A revision of Council Decision 93/389/EEC will therefore
be necessary. According to the Monitoring Mechanism the Commission is
assisted by the Monitoring Committee in which all Member States are
represented.

Commission action

In line with decisions of resumed COP 6 in Bonn on the Kyoto Protocol (Art.
5.1) a future Monitoring Mechanism will need to make provisions for
extended reporting requirements under the Kyoto Protocol such as those
related to an EU ‘Greenhouse Gas Inventory System’ and to sinks (carbon
sequestration through forestry and agricultural activities).

In addition, provisions on the reporting of national policies and measures
to provide the
including projections have shown to be insufficient
Commission with the necessary data to monitor
the evolution and
effectiveness of climate change policies and measures with a certain degree
of accuracy. A review of the current provisions is necessary in order to
increase the reliability of the EU monitoring system. This is particularly
to allow an early assessment of Member States
important
compliance with their
“burden-sharing
agreement”. With respect to the proposed Directive on the EU Emissions
Trading scheme,
(together with the Monitoring
Committee) develop and propose specific guidelines. In fact the monitoring
the trading scheme are closely related and need a
activities under
co-ordination with the greenhouse gases Monitoring
comprehensive
Mechanism.

the Commission will

targets under

individual

in order

the

-

Time-table

The Commission intends to prepare an amendment of the Council Decision
93/389/EEC for a Monitoring Mechanism for the second half of 2002.

9

2.2.

2nd Section - Energy Issues

This second section deals with domestic and industrial energy. The
Commission has recently adopted the Green Paper on Energy Security,
which serves as a framework for all energy related actions. Two proposals
have already been formulated over the last months, namely the Directive on
the Promotion of Electricity from Renewable sources of Energy in the
Internal Electricity Market and the proposal for a Directive on Energy
performance of buildings14. The recognition that more than 40% of EU
energy consumption is in the buildings sector is a powerful incentive to
propose a coherent package of efficiency measures. A number of supporting
measures is proposed as well.

2.2.1.

Proposal for a Framework Directive for Minimum Efficiency Requirements
for End-Use Equipment

Background

Energy efficiency measures applying to tradable goods must be established
on a Community-wide basis in order to prevent internal market distortions
that national efficiency requirements might create. The proposal will cover
all types of end-use equipment sold and used in the EU market that use a
relevant amount of energy, including standard components (e.g. ballasts,
electric motors, power supplies, etc.) and for which there is a significant
potential for energy saving. Also included can be domestic appliances,
lighting equipment, compressors, pumps, building equipment such as heating
and hot water boilers, air conditioners, etc. Care will be taken that the
performance of the equipment shall not be affected and that the impact on
manufacturers is taken into account.

Commission action

-

Main elements of the proposal

Ambitious and cost-effective energy efficiency targets will be implemented
through minimum efficiency requirements established with Implementing
Directives. This work will be carried out by a regulatory committee
consisting of Member State experts given a mandate in the Framework
Directive. The setting of minimum efficiency requirements will play an
important complementary role to the labelling of products (Council Directive
92/75/EEC) and to voluntary commitments by the industry.

-

Environmental effectiveness and cost

Only efficiency standards that can be realised with existing off-the shelf cost-
effective improvements in design and technology will be proposed. Savings
in CO2 emissions through this measure are expected to gradually increase to
substantial levels from the year 2008 onwards.

14

Proposal for a Directive on Energy Performance of Buildings, COM(2001) 226 final

10

-

Time-table

The Commission intends to present a proposal in 2002.

2.2.2.

Proposal for a Directive on Energy Demand Management

Background

Completion of the internal market for energy by developing and encouraging
energy efficiency on the demand side, especially as it is provided by utilities
and related service companies in the form of energy services, is an important
element for reducing greenhouse gases emissions.

Commission action

– Main elements of the proposal

technology new services

Member States will be required to set targets to promote and support energy
demand management with efficient
and
programmes, especially for smaller energy consumers such as households
and small and medium size enterprises. This
includes a supportive
framework for implementation, financing and monitoring of energy services
efficiency improvement targets, adapted to each Member States’ liberalised
market. The Directive will also set out a certain minimum level of
investment for energy efficiency and demand management, mainly through
business-driven activities. These investments will normally be additional to
energy efficiency activities currently financed by public authorities.

Member States will be required to support the development of a market for
energy-efficient
technology and demand management services. Member
States will have to report, on an annual basis, to the European Commission
on the amount of investment, the energy saved, and, when possible, the cost-
effectiveness of the investments. Member States would use standardised
evaluation methods for monitoring the energy savings and cost-effectiveness
of the activities implemented and for their reporting to the European
Commission.

– Environmental effectiveness and costs

With compliance by 2006, this measure may save between 40 and 55 Mt
CO2/year by 2010.

– Time-table

The Commission intends to present a Proposal in 2002.

2.2.3.

Proposal for a Directive for the promotion of Combined Heat and Power
(CHP)

Background

11

The aim of the Directive is to complement and strengthen existing measures
to promote CHP in line with the Community target of doubling the share of
CHP in EU electricity generation from 9% in 1994 to 18% by 2010. The long
lead times for new installations to become operational may make it difficult
to fully achieve this target on the projected time scale.

Commission action

– Main elements of the proposals

The adoption of a CHP Directive is modelled to some extent on the
Renewables Electricity Directive. The Directive should provide a definition
of CHP Quality and CHP Certification in order to ensure that incentives are
provided only to efficient CHP systems. The Directive should also address
issues concerning grid access and costs of connection, streamlining of
administrative procedures and contain provisions obliging Member States to
set national targets in accordance with the EU-wide CHP target from 1997.

The CHP Directive will cover technologies ranging from small-scale CHP in
the residential and tertiary sectors to industrial CHP and CHP with district
heating, with special provisions to promote small-scale CHP and renewables
CHP.

The launch of an EU CHP initiative as an integrated element in a general
promotional campaign for energy efficiency, similar to that used to promote
the development of renewable energy sources, could be an associated
measure.

– Environmental effectiveness and costs

A reduction potential from CHP of up to 65 Mt CO2 eq has been identified,
corresponding to the target of 18% share of electricity generation. Of this, up
to 12 Mt CO2 could be achieved at a cost of between
50 per tonne.
Actual reductions, however, are subject to uncertainties because the proposed
CHP Directive
choice of
framework Directive
implementation strategy and specific support mechanisms in favour of CHP
to each individual Member State.

leaving the

20 and

is

€

€

a

– Time-table

The Commission intends to present a proposal in 2002.

2.2.4.

Additional non-legislative proposals:

2.2.4.1. Initiatives on increased energy-efficient public procurement

Background

The objective of this initiative is to promote demand for energy-efficient
technology from the public sector. The aim is to provide guidance to public
procurement of energy-efficient technology.

12

Commission action

– Main elements of the initiatives

the

and

possibilities

The Commission envisages a follow-up to the recent “Commission
Interpretative Communication on the Community law applicable to public
procurement
environmental
considerations into public procurement”15. The aim is to include specific
guidance on energy efficiency. This will include guidelines and best practise
examples that can then be used by the public sector to incorporate energy
efficiency aspects into their procurement procedures. A handbook on green
public procurement that is currently being developed will contain examples
on how to draw up green calls for tender in conformity with Community law.

integrating

for

The need for possible additional legislative initiatives in the area of energy-
efficient public procurement will be considered following a review of the
impact of the proposed green public procurement guidelines and best practice
examples.

– Environmental effectiveness and costs

The cost-effective reduction potential is difficult to estimate as this initiative
is a support measure.

– Time-table

Initiatives to be presented in 2002.

2.2.4.2. Public Awareness Campaign and Campaign for Take-off

Background

Dissemination of information on demand management, monitoring progress
and providing benchmarks to do so are integral parts of improving energy
efficiency. To focus attention and help measure progress, a Public Awareness
Campaign (PAC) and a parallel Campaign for Take-off (CTO) will start in
2002. The CTO will provide indicative targets to measure progress, serve as
benchmarks for decision-makers and planners and reinforce the existing
campaign for renewable energy sources while drawing on its experience.

The campaign aims to disseminate results of pilot actions, spread best
practices and generate public awareness. This will encourage Europe's
citizens to invest in products and buildings and to use techniques that can
save money as well as have a positive impact on the environment. The
campaign defines the role of the stakeholders and facilitates the introduction
of the most cost-effective carbon dioxide reduction technologies. The
campaign will be co-ordinated by the Commission and managed by the
Member States at national and local level.

15

COM(2001) 274 final. The handbook on green public procurement is also mentioned by the
Communication on Integrated Product Policy, COM(2001) 68 final.

13

Commission action

– Main elements of the proposals

Carefully selected campaign targets will be proposed to participants at
national and local level in the Member States. Such targets may include, e.g.
a certain share of "A" labelled appliances in EU households, a certain
retail outlets which have large shares of energy-efficient
number of
equipment in their sales, or a certain number of low-energy light bulbs per
household.

– Environmental effectiveness and costs

The Campaign for Take Off and Public Awareness Campaign are support
functions. As such, quantification of their effects is difficult. Based on
experience from similar campaigns, however, the effects can be considerable.
In the same fashion as the Campaign for Take Off for renewables, and in
combination with it, the campaign for energy efficiency will generate private
investment using limited public funding.

– Time-table

The Commission intends to present a proposal in 2002.

2.3.

3rd Section – Transport

The White Paper on a Common Transport Policy16 contains some 60
measures to be taken at Community level, several of which will contribute to
the reduction of greenhouse gas emissions by 2010.

Measures to be included for the transport sector in consistency with the
White Paper:

2.3.1.

Proposal for shifting the balance between modes of transport

Background

Greenhouse gas emissions from the transport sector, with the trends of the
last years continuing, are projected to grow by about 50% between 1990 and
2010. Road transport alone presently represents 84% of all transport related
CO2 emissions. Air transport is the mode with the highest growth rate in
greenhouse gas emissions. A modal shift from road and air to the cleaner
modes of transport of railways and waterways therefore has highest priority
for curbing the growth of greenhouse gas emissions from the transport sector.

Commission action

16

COM(2001) 370

14

A package of actions should ensure that the growth of the road sector is
curbed and the modal split of 1998 is again recovered in 2010. The main
actions aim at

• Revitalising the railways, with a package of measures on market opening,
safety improvements, interoperability strengthening, and service quality
assurance, foreseen to be submitted by the Commission by the end of
2001.

• Improving inland waterway transport through standardisation of technical
requirements, harmonisation of certificates, harmonisation of working
conditions, all with Commission proposals in 2002.

• Promote short sea shipping by improving the quality of port services and
developing the infrastructure needed for the creation of sea motorways.

• Promoting intermodality through a new support programme (Marco Polo)
for alternative solutions to road transport to be established in 2003 and a
new Community framework for freight integrators and standardisation of
transport units and loading techniques to be proposed by the Commission
in 2003.

– Environmental effectiveness and costs

A large number of local or company based schemes of intermodality and
logistics improvements have resulted in reductions of CO2 emissions of up
to 50% in certain sectors. Extrapolation to EU-wide applications offers a
large reduction potential.

2.3.2.

Proposal for improvements in infrastructure use and charging

Background

Congestion reduces the efficiency of transport and unnecessarily also
increases greenhouse gas emissions. Reduction of congestion therefore can
contribute to reducing CO2 emissions. Transport prices do not reflect the full
costs and they are unequally treated for the different modes. Further
integration of external costs and fair and balanced pricing among the modes
should contribute to control transport growth overall and re-balance the
modal shift.

Commission action

• A framework directive on the principles and structure of an infrastructure-
charging system and a common methodology for setting charging levels
and cross financing will be proposed by the Commission in 2002.

• Uniform fuel taxation for commercial road transport will be proposed by

the Commission in 2003.

– Environmental effectiveness and costs

15

Working Group Transport of the ECCP has identified a potential of 40-60
Mt/y reduction in CO2 emissions through measures on improvement
in
infrastructure use and charging.

2.3.3.

Promotion of the use of biofuels for transport

Background

The fundamental objective is to provide for a Community framework that
would foster the use of biofuels for transport within the EU. It follows up on
the objectives highlighted by the White Paper for a Community Strategy and
Action Plan on Renewable Sources of Energy in 1997.

Commission action

– Main elements of the proposals

With regard to a first Directive proposal, the Commission is examining
whether to impose an obligation on Member States to introduce legislation
and to take the necessary measures to promote an increased share of biofuels
in transport. The measures taken to reach certain targets could be set out in
an annual report to be submitted to the Commission by the Member States.

to a further proposal for a Directive,

With respect
the Commission is
examining the possibility to allow Member States to apply derogation from
excise duty on certain mineral oils containing biofuels and on biofuels.

– Environmental effectiveness and costs

The forecasts contained in the Green Paper on security of supply17 indicate a
possible energy saving of diesel and gasoline of around 17.5 Mtoe by 2010.
This would result in a saving of CO2 emissions of about 35-40 Mt, at a cost
of

100 per tonne.

€

– Time-table

The proposal for a Directive on the promotion of biofuels in the transport
sector is expected to be adopted by the Commission in the second half of
2001.

2.4.

Industry sector

2.4.1.

Proposal for a Framework Directive on Fluorinated Gases

Background

The fluorinated gases only account for around 2% of overall EU greenhouse
gas emissions, however they have a high “global warming potential”. In fact
they are forecasted to rise from 64 Mt CO2 equivalent in 1995 to around 96

17

COM(2000)769 final

16

Mt CO2 equivalent in 2010. This trend is unsustainable and a number of
measures were proposed by the ECCP that should be implemented at the EU
level to reduce emissions and to improve monitoring. The main sectors
responsible for
refrigeration and air-
conditioning.

this situation are the ones of

Commission action

– Main elements of the proposal

The Commission considers it would be appropriate to develop these policy
recommendations further as part of a Framework Directive on fluorinated
gases aimed at reducing emissions across all sectors. The Directive would be
designed to complement action being taken by Member States concerning the
containment and monitoring of fluorinated gases. The promotion of the
development and use of alternative and not-in-kind technologies will also be
taken into further consideration.

Key elements of the proposal for a Directive would include:

containment – requiring all practicable measures to be taken to minimise
emissions at design, manufacture, installation, operation and disposal of
equipment;

monitoring – requiring producers, importers, exporters and certain users to
report annually on quantities of fluorinated gases being placed on the market,
exported and used;

marketing and use restriction for –certain uses of fluorinated gases.

– Environmental effectiveness and costs

Based upon the broad analysis produced for the ECCP the costs are estimated
to be around
20 per tonne of CO2 equivalent with emissions reductions in
the order of 21 Mt CO2 equivalent per year by 2010.

€

– Time-table

The Commission expects to finalise its proposal in the first half of 2002.

3.

THE ECCP – THE NEXT STAGE

This Communication highlights a number of
important actions to be
undertaken over the next years. However, the emission reduction effects of
these measures are unlikely to be sufficient to meet the Kyoto target of –8%.
It is therefore essential to examine additional measures. These shall be
selected from the 42 measures identified by the ECCP, taking into due
account policy orientations already developed by the Commission. In this
context, the Commission will continue to assess the environmental and
economic impact that policies and measures will have, particularly on the
competitiveness of the EU industry.

17

Measures that could be candidates for further Community action but which
will need more detailed elaboration of their emission reduction potential and
cost-effectiveness include:

• Initiative on the promotion of heat production from renewable energy;

• E2MAS energy audit and management scheme;

• The Motor Challenge Programme Initiative;

• Environmental agreement with car

industry on Light Commercial

Vehicles;

• A framework for fiscal measures for passenger cars as set out in the

Community strategy aiming at an emission target of 120g CO2/km;

• Follow-up after the ‘Bonn agreement’ on issues related to forestry policies
that enhance carbon sequestration through afforestation, reforestation and
forest management;

• Establishment of a framework for project-based mechanisms.

This means that instead of a sectoral approach used in the first phase of the
ECCP, now a more issue specific approach is being chosen. Technical
meetings with stakeholders will be arranged in a flexible and problem-
orientated way.

Those activities are going to be co-ordinated by the ECCP Steering
Committee,
in which all relevant Commission Directorates General are
represented. A follow-up report, similar to the one of June 2001, will be
prepared by the end of 2002.

18

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Energy

Activit(y/ies): Public Awareness and Information Campaign on Energy Efficiency

TITLE OF ACTION: PUBLIC AWARENESS CAMPAIGN(PAC) AND CAMPAIGN FOR TAKE-OFF

(CTO) FOR ENERGY EFFICIENCY

1.

BUDGET LINE(S) + HEADING(S)

B4-1031:SAVE

2.

OVERALL FIGURES

2.1.

Total allocation for action (Part B):

€
2.8M

for commitment

2.2.

Period of application:

2001 -2004

2.3.

Overall multiannual estimate of expenditure:

(a)

Schedule of commitment appropriations/payment appropriations (financial
intervention) (see point 6.1.1)

€

million (to three decimal places)

Year

Year

Year

Year

[n+4]

2001

2002

2003

2004

Commitments

0.14

Payments

-

2.54

1.0

1.0

NIL

0.68

[n+5
and
subs.
Years
]

Total

2.68

2.68

(b)

Technical and administrative assistance and support expenditure(see point
6.1.2)

Commitments

0.06

0.06

Payments

0.02

0.06

0.04

0.12

0.12

19

Subtotal a+b

Commitments

0.200

2.600

Payments

0.02

1.06

1.04

0.68

2.800

2.800

(c)

Overall financial
expenditure
(see points 7.2 and 7.3)

impact of human resources and other administrative

0.033

0.033

0.033

0.033

0.132

Commitments/
payments

TOTAL a+b+c

Commitments

0.233

2.633

0.033

0.033

Payments

0.053

1.093

1.073

0.713

2.932

2.932

2.4.

Compatibility with financial programming and financial perspective

proposal is compatible with existing financial programming.

2.5.

Financial impact on revenue:

Proposal has no financial implication

3.

BUDGET CHARACTERISTICS

EFTA
contribution

Contributions
from applicant
countries

Heading in
financial
perspective

NO

YES

YES

No 3

Type of expenditure

New

All through SAVE
programme.

Non-comp

Diff

4.

LEGAL BASIS

Decision 647/2000/CE SAVE.

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

5.1.1. Objectives pursued

The proposal will provide for
information on demand
management, provide benchmarks and indicative targets for decision-makers and

the dissemination of

20

planners and allow for the monitoring of progress against agreed quantified and
measurable targets. It will also focus the attention of stakeholders on important issues
in the field of energy efficiency. The campaign aims in addition to disseminate the
results of pilot actions from Community programmes and spread best practices. The
campaign will be run in parallel with the existing renewables Campaign for Take Off
and will reinforce it. It will also use expertise gained from the renewables Campaign
for Take Off. Evaluation will measure impact of campaign on behavioural change,
recognition, etc.

5.1.2. Measures taken in connection with ex ante evaluation

Will use renewables evaluation methodology, i.e. awareness and attitudes before and
after campaign.

5.2.

Action envisaged and budget intervention arrangements

–

–

–

–

–

the target population: Many businesses, municipalities, universities, branch
organisations, etc. will participate.

the specific objectives set: To reach targets and disseminate information
and best practices; to focus attention on energy efficiency and on the
targets, while increasing public awareness and highlighting results
attained in different sectors..

the concrete measures: Contracts will be signed with participating partners
to carry out actions to reach technology diffusion targets.

the immediate outputs of each action: The effect on energy efficiency will be
measured. Intermediate measures include surveys of stakeholders who
have been impacted by the Campaign for Take Off.

the expected outcomes: Ultimate objective is to meet
improve energy efficiency in the EU.

targets and thus

5.3.

Methods of implementation

Direct management by the Commission will be used to implement the planned actions
using both regular and outside staff. Management will be shared with Member States -
national, regional and local authorities, using some consultant services. Payments will
be made for information material amd its design, preparation and distribution

21

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B - (over the entire programming period)

6.1.1.

Financial intervention

Commitments (in

€

million to three decimal places)

Breakdown

2001

2002

2003

2004

[n+4]

Total

[n+5
and
subs.
Years]

Partnership

0.140

TOTAL 0.140

NIL

NIL

NIL

6.1.2.

Technical and administrative assistance, support expenditure and IT expenditure
(commitment appropriations).

2001

2002

2003

2004

[n+4]

Total

[n+5
and
subs.
years]

22

1) Technical and
administrative
assistance

a) Technical assistance
offices

0.040

0.040

b) Other technical and
administrative assistanc
e:

- intra muros:

- extra muros:

of which for
construction and
maintenance of
computerised
management systems

0.020

0.02

Subtotal 1 0.060

0.06

2) Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

0.08

0.04

0.12

TOTAL 0.06

0.06

0.12

23

6.2.

Calculation of costs by measure envisaged in Part B (over the entire
programming period)18

Commitments (in

€

million to three decimal places)

Breakdown

Type
of outputs
(projects,
files )

Number of
outputs

Average unit
cost

(total for
years 1…n)

Total cost

(total for years
1…n)

1

2

3

4=(2X3)

Partnerships

20

0.134

2.680

TOTAL COST

2.68

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

Staff to be assigned to management
of the action using existing and/or
additional resources

Number of
permanent posts

Number of
temporary posts

or

Officials
temporary
staff

0.3

A

B

C

Other
resources

human

Description of tasks
deriving from the action

Total

0.3

Co-ordination of contracts
and participants, evaluation
of and contact with
consultants.

Total

0.3

0.3

18

For further information, see separate explanatory note.

24

7.2.

Overall financial impact of human resources

€

Amount (
million)

Method of calculation *

0.03

0.3 * 0.108 = 0.033

Type of human resources

Officials
Temporary staff

Other human resources
(specify budget line)

Total 0.03

0.033

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

€

Amount

Method of calculation

Budget line

(number and heading)
Overall allocation (Title A7)

A0701 – Missions
A07030 – Meetings
A07031 – Compulsory committees
A07032 – Non-compulsory committees
A07040 – Conferences
A0705 – Studies and consultations
Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

NIL

NIL

The amounts are total expenditure for twelve months.

I.

II.

Annual total (7.2 + 7.3)N.A.

Duration of action

III.

Total cost of action (I x II)N.A.

€
33000

4 years

132000

25

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

To be determined.

8.2.

Arrangements and schedule for the planned evaluation

Details to be determined, based on Campaign for Take Off for renewables.

9.

ANTI-FRAUD MEASURES

Normal tendering and contractual routines and checks.

26