Opinion of the ECSC Consultative Committee on the Commission communication "A European Union strategy for sustainable development" (Adopted unanimously at the 359th session of 25 January 2002)
Date: 2002-01-25
Institutions: Consultative Committee of the European Coal and Steel Community
Subjects: ECSC, sustainable development

1.3.2002

EN

Official Journal of the European Communities

C 54/5

Opinion of the ECSC Consultative Committee on the Commission communication (cid:145)A European
Union strategy for sustainable development(cid:146)

(Adopted unanimously at the 359th session of 25 January 2002)

(2002/C 54/03)

The ECSC Consultative Committee:

1. GENERAL

It

sustainable development.

1. Welcomes the Commission’s initiation of a broad debate
on the concept of
fully
endorses the need for an approach to long term policies
on sustainability (1), at both EU and national
levels, that
balances the three goals of environmental
improvement,
social development and economic growth. It notes with
interest the initiative from the Commission of presenting
at the Laeken Summit an action plan for the amelioration
of
the regulatory environment, which is designed to
guarantee that the future important legislative proposals
impact
will contain an evaluation of
under
the economic, environmental and social aspect,
both inside and outside the EU.

their potential

2. In particular, endorses the statement that (cid:145)narrow sectional
interests must not be allowed to prevail over the well-being
of society as a whole(cid:146), and notes that economic growth
plays a crucial role in securing that well-being. Similarly,
supports the statement that there is currently, in EU policy
formulation,
longer
term (cid:147)win-win(cid:148) situations(cid:146). This is especially noticeable in
the current development of environmental policies.

(cid:145)too little focus on the prospect of

(cid:145)address threats to public health(cid:146),

3. Is however deeply concerned that the detailed proposals set
out in the communication do not live up to these initial
objectives. The long-term objectives and targets discussed
in the communication are too exclusively in the environ-
mental field ((cid:145)limit climate change and increase the use of
clean energy(cid:146),
(cid:145)manage
resources more responsibly(cid:146), and (cid:145)improve the
natural
transport system and land-use management(cid:146)). Additionally,
Annex 1 of
the
Lisbon strategy in the field of social policy ((cid:145)combat
(cid:145)deal with the
exclusion(cid:146)
social
and
poverty
economic and social
implications of an ageing society(cid:146)).
Nowhere in the communication itself are discussed goals
or objectives with respect to economic growth or social
items.

the communication lists the goals of

and

components will
is business, and
manufacturing in particular, that drives economic growth.

fail. Furthermore,

it

depends. Nowhere

5. Emphasises that only if EU business remains competitive
will it be able to continue to provide the economic growth
in the
on which sustainability
communication is there an explicit recognition of
the
fact that EU business operates in a global environment,
and is subject to ever increasing competitive pressures.
Furthermore, unequal approaches to environmental legis-
lation in other regions and countries are an important
element in this competitive pressure.

then assessments of

6. Accordingly, insists that if the EU is really serious about
developing a coherent approach to sustainable devel-
the impact on business
opment,
competitiveness must be integral
to all areas of policy
formulation. A sustainable policy is one which achieves
its goals whilst having also the least adverse impact on
competitiveness.

7. Stresses that the social dimension should be at the heart of
the overall strategy of sustainable development. Therefore,
life has to be achieved, extended and
a high quality of
guaranteed for the future. This quality of
life comprises
security of employment, progress in labour and health
protection, adequate income, suitable housing, possibilities
for personal development and above all health. Good
education and professional
training (which could be
defined as (cid:145)lifelong learning(cid:146)) are basic requirements for
the creation of a reliable social basis for workers and
social
families. Constant dialogue between the
their
partners should ensure consensus at all levels and render
comprehensible the process of sustainable development. In
the important area of labour and health protection, ECSC
social and technical research brought about considerable
this area must be firmly
improvements.
consolidated and continued.

In the future,

4. Stresses that economic growth is an absolutely necessary
condition to the achievement of the environmental and
third component of
social policy goals. Unless
sustainable
equal
and
is
the other two
consideration in EU policy formulation,

development

given

this

full

(1) COM(2001) 264 final.

8. Notes

that

progress

additionally

technological

has
contributed immensely to society’s material wealth and
quality of life, and can continue to provide solutions to
environmental problems. Strategies on sustainable devel-
opment must therefore encourage and support innovation
by business, and the EU framework programme on RTD
should be coherent with such strategies. Again however
companies will only be able to invest in innovation if
they remain competitive.

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Official Journal of the European Communities

1.3.2002

9. Points out that the Commission’s intention to continue to
give priority (cid:145)to market-based approaches that provide
price incentives, whenever
these are likely to achieve
social and environmental objectives in a flexible and cost
is in contradiction to its present approach.
effective way(cid:146)
Price incentives are frequently proposed in the form of
additional
cost
effective and when applied to business will nearly always
damage competitiveness. Furthermore, price mechanisms
are frequently not even the most directly effective means
of achieving the desired environmental goals. Pricing will
generally only be the most effective solution where a
consumer has a genuine choice between equivalent possi-
bilities.

taxation. Taxes however

rarely

are

2. CLIMATE CHANGE AND CLEAN ENERGY

10. Deplores

the Commission’s

intention to secure

the
adoption of an energy products tax directive. If the prin-
ciples discussed in point 9 above were properly applied by
the Commission, it would abandon this objective. Energy
taxation, unless adopted by all other competing countries,
will severely damage EU manufacturing competitiveness
and therefore is not a sustainable policy. Other, more
cost effective policy measures for encouraging energy effi-
In particular, for
ciency by manufacturing are available.
energy intensive sectors such as the steel
industry, the
use of negotiated agreements offers the possibility of the
same levels of energy saving with a lower cost burden. The
main way in which energy taxation produces reductions in
energy consumption in the EU is likely to be through the
migration of manufacturing activity to countries that have
not imposed these burdens on society. The same menace
would be induced by an obligatory and sectorally restricted
(cid:145)emission trading(cid:146) on company level. Referring to this issue,
the ECSC Consultative Committee recalls its opinion on
the European climate change programme and emission
trading of 5 April 2001 (1).

11. Stresses that coal has a major role to play in a sustainable
future. New, clean coal power stations need to be built
which pollute less and have higher efficiencies in order
to reduce greenhouse gas emissions and help to meet
Kyoto targets. Most importantly, they provide the security
and reliability of electricity supplies that are needed for
long-term sustainable economic growth. The cost of
it has been
these technologies would not be high:
estimated that electricity from IGCC plants (2) can be
generated at just over EUR 50/MWh. Compare this with
renewables (3) such as offshore wind at EUR 80/MWh;
biomass at over EUR 130/MWh; and photovoltaics at

around EUR 250/MWh. Therefore, support mechanisms to
facilitate the building of clean coal stations, as well as to
reinforce clean coal-related research and demonstration
activities, must be put in place.

12. Supports the funding of an adequate programme of work
to clarify the cost and practicality of CO2 sequestration
from the flue gas of coal-fired power stations. Obviously,
if this were cost effective, there would be major benefits to
both the environment and the coal industry. The further
thus
development of co-firing of biomass with coal,
combining renewable energy with preserving a role for
coal,
should be encouraged by the Commission and
Member States.

13. Invites the Commission to give the European coal industry
a prospect for the future,
in order to secure access to
deposits and contribute to the security of energy supply.
In this way,
the European mining
industry as an industry in the final stage of decline will
be avoided.

the perception of

14. In this perspective,

that,

recalls

according

to the
Commission, EU indigenous primary energy sources
should be developed and that valid reasons exist in order
to continue a limited coal production, since this would not
only contribute to the security of energy supply but also
help employment in the EU as well as the development of
clean coal technologies.

3. NATURAL RESOURCES

15. Recognises

clearly emphasise

that business must

its
exemplary role in its treatment of resources. But the fact
that resources are not unlimited means that all sectors of
society, and not only the industry, must be involved in the
process of rethinking. The coal and steel
industry are
aware of the responsibilities they bear beyond commercial
life and the capital market (cid:151) namely for the environment
and for the society.

(1) OJ C 170, 14.6.2001, p. 8.
(2) DTI Clean Coal Review 2002.
(3) DTI (cid:145)New and renewable energy (cid:151) Prospects in the UK for the 21st

century (cid:151) Supporting analysis(cid:146), March 1999.

16. Underlines that company responsibility includes a balanced
consideration of the social and environmental aspects of
commercial activities in order
to improve commercial
processes continuously. Conforming to applicable regu-
lations is a precondition for commercial activities.

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approach.

and medium-integrated

17. Emphasises that improving environmental protection is an
ongoing process. Some years ago in the steel industry, for
example, new initiatives emerged based on a product-,
production-
This
strategy of taking a holistic view of material flows gives
priority to preventing the generation of emissions in the
first place at all points in the production process. Steel
plants in Europe nowadays are designed and constructed
from the outset
impact on the
environment and the use of resources as possible. The
best available techniques are used to ensure the effective
use of invested capital. Additionally, by-products from coal
combustion and steel production are used as raw materials
for construction, again saving natural resources.

to have

little

as

18. Emphasises that the interconnected use of energy, circu-
latory system of water use, and reduction of waste in
production (or its recycling) are clear signs of the steel
resources.
treatment
sparing
industry’s
of
Nowadays, more than 40 % of
the steel production in
Europe is no longer made from ore but obtained by
recycling scrap steel. Up to 100 % scrap is melted using
the electric-arc furnace process. The use of scrap steel is
estimated to prevent the mining of 600 000 000 tonnes of
iron ore and the use of 140 000 000 tonnes of coke
worldwide.

natural

4. TRANSPORT POLICY

19. Stresses that steel and coal are safe materials. In particular,
coal can be easily and safely stored and its transport does
not entail the same environmental hazards as the transport
of oil and gas.

20. Supports the objective of moving more steel and coal
freight from road to more sustainable forms of transport
such as rail and waterways.

21. Remarks that the steel and coal industries are already one
of
the largest users of rail and waterways in the EU.
However, they continue to use road in many cases, not
simply because it is lower cost, but because adequate alter-
natives do not exist. Providing viable alternatives through
greater investment in public transport infrastructure will
encourage greater use of
Increasing the
price of road transport will however simply push up the
costs to manufacturing and therefore is not a sustainable
development policy.

those modes.

22. As a matter of fact, already EU manufacturing suffers from
higher transport costs than major competitors. According
to UNICE, logistical costs overall represent 12 % of GDP in
Europe compared with 10 % in the USA.

23. Therefore,

regrets that once again the Commission is
proposing pricing mechanisms as the means of achieving
its objective. The inadequacy of pricing as a policy
instrument for changing transport choices is clearly illus-
trated in the United Kingdom which, according to the
Commission data (1), has both the highest level of road
fuel taxes in the EU and the highest intensity of car usage.

(1) See: (cid:145)EU energy and transport in figures 2001.htm(cid:146).

Notice of implementation of the ETF start-up facility, the SME guarantee facility and the seed
capital action under the multiannual programme for enterprise and entrepreneurship, and in
particular for small and medium-sized enterprises (SMEs) (2001-2005)

(2002/C 54/04)

(Text with EEA relevance)

funds and incubators).

This notice is addressed to financial intermediaries for SMEs
(such as banks, institutions operating guarantee schemes, seed
It outlines three
and venture capital
financial
that aim to improve the financial
environment for SMEs by extending existing, and introducing
new,
instruments for the financing of SMEs. This
programme is open to the Member States of the European
Union, Norway, Iceland and Liechtenstein.

instruments

financial

particular for small and medium-sized enterprises (2001-2005),
the European Investment Fund (EIF) is operating, on behalf of
instruments of this
the European Commission, the financial
programme. On 18 December 2001 the European Commission
signed the fiduciary and management agreements with the EIF
concerning the implementation the following three facilities:

indicative budgetary appropriations

The
2001-2005 amount to EUR 323 million.

for

the period

1. THE ETF START-UP FACILITY

Under Council Decision 2000/819/EC on a multinational
programme for enterprise and entrepreneurship (1), and in

(1) OJ L 333, 29.12.2000.

The ETF start-up facility will support the establishment and
financing of SMEs in their start-up phase by investing, pari
in relevant specialised
passu with private equity investors,
venture capital
smaller
funds, funds operating regionally or funds focused on specific

funds, particularly in seed funds,