Opinion of the Economic and Social Committee on "Research needs for a safe and sustainable energy supply"
Date: 2002-07-17
Institutions: European Economic and Social Committee
Subjects: EU programme, energy policy, energy research, energy supply, research and development, security of supply, sustainable development

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4.12.
Article 11 Monitoring: this proposal to monitor
specific sections of Community customs legislation should be
made more specific and firmed up and agreed with the customs
administrations of Member States before the start of the
programme.
4.13.
The obligations of Member States in respect of the
apportionment of costs might be more clearly defined in
respect of the various proposed actions.

4.14.
Critical to the success of the programme and the
enhancement of the standards of effective customs services is
a series of working agreements and methods involving each of
the Member States and supervised by the Commission. These
should include arrangements for tighter controls, common
policies on surveillance and random checks and a balance of
new techniques and official staffing at appropriate levels.

Brussels, 17 July 2002.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on ‘Research needs for a safe and sustainable
energy supply’

(2002/C 241/03)

On 19 March 2002, the European Economic and Social Committee, acting under Rule 23(2) of its Rules
of Procedure, decided to draw up an opinion on ‘Research needs for a safe and sustainable energy supply’.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 26 June 2002. The rapporteur was Mr Wolf.

At its 392nd Plenary Session of 17 and 18 July 2002 (meeting of 17 July), the European Economic and
Social Committee adopted the following opinion by 117 votes in favour, with four abstentions.

1. Preamble

particular, the Green Paper notes Europe’s alarmingly high
dependence on imports of necessary primary energies, which
will rise to almost 70 % by 2030.

The Gothenburg European Council (1) agreed a strategy
1.1.
for sustainable development which completes the Union’s
political commitment to economic and social renewal and
adds a third, environmental dimension to the Lisbon strategy.
The Barcelona European Council (2) confirmed the objective of
sustainable development and made the point that economic,
social and environmental considerations must receive equal
attention in policymaking and decision-taking processes.

1.2.
This also links in with the warnings about EU security
of energy supply set out in the Commission Green Paper (3). In

To build an effective review of the sustainable develop-
1.3.
ment strategy, the Gothenburg European Council asked the
Council to take due account of energy, transport and environ-
ment in the sixth framework programme for research and
development. The Gothenburg European Council also noted
that sustainable development requires global solutions. The
Union will seek to reach a ‘global deal’ at the Johannesburg
World Summit on Sustainable Development.

( 1) Gothenburg European Council,
clusions — SN 200/1/01 REV 1.

June 2001, presidency con-

( 2) Barcelona European Council, March 2002, presidency conclusions

— SN 100/02 ADD 1.

( 3) Green Paper COM(2000) 769 final.

1.4.
In the light of these considerations, the Committee
feels that the need for a secure, low-price, environmentally
sound and sustainable supply of usable energy stands at the
confluence of the objectives set out at Lisbon, Gothenburg and
Barcelona. That said, it is by no means certain that this need

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can be met. There is an energy problem that has to be tackled
without delay. The key to potential solutions may lie above all
in intensive research and development.

1.5.
For that reason, the Committee, building on its opin-
ions on the Green Paper (1) and the sixth framework pro-
gramme (2) has adopted the present opinion,
in which it
recommends that the Commission draw up an integrated
European energy research strategy,
from which a future
European energy research programme will be derived. This
programme should, if possible, be launched during the lifespan
of the sixth framework programme, but at the latest during
the following period.

1.6.
The Barcelona European Council agreed ‘that overall
spending on R&D and innovation in the Union should be
increased with the aim of approaching 3 % of GDP by 2010.
Two-thirds of this new investment should come from the
private sector.’ As part of that, the Committee feels that the
additional
resources needed for a comprehensive energy
research programme should also be available (see also
point 2.4.3).

2. Point of departure and Committee opinions to date

2.1.

The energy issue

2.1.1.
Usable energy is the mainstay of our contemporary
industrial society. Its ready availability was the prerequisite for
our present-day standard of living. Unprecedented progress
has been made in terms of life expectancy, food supply, social
security and personal freedom. Without energy, there is no
prosperity, no dynamism. Thanks to economic and technical
efficiency, and a consistent economic climate, it has so far
been possible — in contrast to places such as California — to
provide EU consumers with a broadly adequate and secure
supply of acceptably priced energy.

2.1.2.
However, the picture is not all rosy. Supplying and
using energy puts a strain on the environment. It presents risks
and is a drain on resources. It involves the problem of external
dependence and imponderables. The situation is exacerbated
by the fact that, in the longer term, demand for useable energy
is set to rise dramatically given the two — if not threefold rise
in world energy consumption expected by 2060 as a result of
population growth and the pent-up demand of less developed
countries.

( 1) OJ C 221, 7.8.2001.
( 2) OJ C 260, 17.9.2001.

2.1.3.
Fossil fuels, i.e. coal, natural gas and oil, make up by
far the largest share of the EU’s primary energy consumption
(some 79 %). Stocks of these fuels are — to varying degrees —
limited, and their combustion produces emissions (in particular
of carbon dioxide) that
impact on the climate and the
environment. The Kyoto protocol seeks not only to abate
increases in these emissions, but even to cut them.

2.1.4.
Nuclear fission makes up some 15 % of primary
energy consumption and produces no climate-relevant gases.
Its use, however, is controversial because of concerns about
radioactive contamination — either through operational acci-
dents or final disposal — and attitudes vary from Member
State to Member State.

2.1.5.
Renewables account for some 6 %, of which hydro-
power enjoys the largest share. The main problems with other
renewables (mostly derived from biomass combustion and
waste incineration) are that (i) their availability is naturally
variable,
(ii) they are not storable (with the exception of
biomass and waste) and (iii) their primary energy density is
low, which in turn means that costs are still very high.

2.1.6.
None of the potential future energy supply options
and technologies is perfect and none is sufficient to cover all
needs. There is no secure, long-term, environmentally sound
and economically viable energy supply — either in Europe or
at a global level. Moreover, there could be a conflict of aims
between (i) the need (driven by competition) for particularly
cheap energy supplies and (ii)
the development of new
technologies and long-term preparedness, including the requi-
site research activities. Hence, the strategy designed to resolve
the problem must not adopt a piecemeal approach. It is vital
to discuss the matter fully and in its long-term, global context,
and tackle it on a broad front. Resolving the energy issue is
the key element and definitive touchstone of any global
sustainability partnership.

2.1.7.
These points are not, however, adequately reflected
in either the public’s perceptions or in open debate. Rather,
there are a broad range of opinions that veer between over-
and under-estimating the risks and opportunities involved, and
which change from time to time amid news of oil crises,
climate incidents, supply bottlenecks (California) or radioactive
waste transports. Some people take the view that there is no
energy problem at all — i.e. that things have always worked
out so far and that new reserves could be explored should the
need arise (since,
there have been
for many years now,
predictions of forest dieback and claims that oil and gas stocks

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are set to run out in just 40 years). At the other end of the
spectrum is the belief that renewables could easily meet the
world’s entire energy needs if only all research funding were
channelled into them. Hence, the energy issue must become
an integral part of the necessary debate (1) among scientists,
industry, policymakers and the public, and also involving
schools, the media and the vocational training sector.

2.2.

The Commission Green Paper

2.3.2.
In February 2001, the Commission, in preparation
for the sixth framework programme, published a Proposal for
a Decision of the European Parliament and of the Council
concerning the multiannual framework programme 2002-
2006 of the European Community for research, technological
development and demonstration activities aimed at contribu-
ting towards the creation of the European Research Area and
a Proposal for a Council Decision concerning the multiannual
framework programme 2002-2006 of the European Atomic
Energy Community (Euratom) for research and training activi-
ties aimed at contributing towards the creation of the European
Research Area (5).

The Commission Green Paper (2) set out the issue
2.2.1.
very clearly. In particular, it noted Europe’s alarmingly high
dependence on imports of necessary primary energies, which
will rise to almost 70 % by 2030. The Commission also drew
attention to the risk that the Kyoto commitments may become
impossible to meet, and stressed the role of nuclear energy in
meeting those same commitments.

2.3.3.
In January 2002, the Commission also submitted
(amended) proposals (6) concerning the specific programmes
implementing the sixth framework programme of the Euro-
pean Community for research,
technological development
and demonstration activities (2002-2006) and the specific
programmes implementing the sixth framework programme
of the European Atomic Energy Community for research and
training activities (2002-2006).

2.2.2.
The Committee has issued a detailed and largely very
favourable opinion (3) on this subject. Among other things, the
Committee felt that the Commission’s analysis should be more
global in scope and that the timeframe of the study should be
longer, as problems will further come to a head in the second
half of the century. The Committee stressed the particular
importance of research and development in resolving this
issue.

2.2.3.
The Consultative Committee of the European Coal
and Steel Community (ECSC) (4) notes the potential for energy-
saving in transport, private households and the tertiary sector,
and the development potential of coal use.

2.3.

Energy research — the state of play to date

2.3.1.
At EU level, energy research is an integral part of the
ongoing fifth framework programme for research, technologi-
cal development and demonstration activities (RTDD) and
the framework programme of the European Atomic Energy
Community (Euratom). Under this scheme, some €510 million
are spent on energy research each year. This represents less
than one thousandth of primary-energy expenditure within
the EU.

All the documents set out under point 2.3 above
2.3.4.
cover energy-related R&D activities. In fact, the programme of
the European Atomic Energy Community is devoted exclus-
ively to this issue.

2.3.5. Moreover, publicly funded energy research in the
Member States is carried out under national research schemes.

Another point to stress is that all

2.3.6.
technological
development and related research is, to a quite considerable
degree, carried out by industry, largely using its own resources.
Examples include oil and gas companies (including transport
and processing), the coal industry, plant builders, the energy
distribution sector, the car industry, the aircraft industry, their
suppliers, SMEs and many others, including the banks involved.

In July 2001,

2.3.7.
the Committee adopted a detailed
opinion (7) on the first of the Commission proposals men-
tioned above (2.3.2) (5). Among other things, the Committee
opinion recommends:

— setting an increase of about 50 % in the overall Com-
munity RTDD Budget as a medium-term political goal
for the period beyond FP6 (6th Framework Programme)
and appealing to Member States and industry to act
likewise on their part;

( 1) See also the Committee’s own-initiative opinion CES 724/2001
of May 2001 on Science, society and the citizen in Europe, OJ
C 221, 7.8.2001.

( 2) Green Paper COM(2000) 769 final.
( 3) OJ C 221, 7.8.2001.
( 4) Bulletin EU 6-2001.

(5) COM(2001) 94 final.
(6) COM(2002) 43 final.
(7) OJ C 260, 17.9.2001.

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— introducing a specific heading ‘ENERGY and TRANS-
PORT’ in the thematic actions to give more emphasis and
visibility to the energy and transport problem, and
particularly — in view of sustainable development —
to renewable energy systems (including storage and
distribution) and to energy savings (EUR 1 500 million);

— strengthening the Euratom programme accordingly by
aiming at safer nuclear energy,
including production,
transport and storage of nuclear waste, and by enhancing
fusion option (fission
the
of
the
EUR 350 million, fusion EUR 950 million).

development

logical development and demonstration activities (RTDD) and
(ii) the multiannual framework programme of the European
Atomic Energy Community (Euratom) for research and train-
ing activities.

A particular new factor is also emerging with the
2.4.3.
expiry of the Treaty establishing the European Coal and Steel
Community (ECSC) in July 2002, as a result of which the
Commission will take on the management of a common
research fund for coal and steel (5). The Committee considers
that this fund should above all benefit energy issues.

In May 2002 the Committee adopted an opinion (1)
2.3.8.
(2.3.3) mentioned
on the second Commission document
above (2). This opinion largely reiterated the key points the
Committee made about energy research in its earlier opinion,
modified to reflect Council decisions and parliamentary opin-
ions that have been submitted in the meantime.

2.4.4.
Also of relevance to the issue at hand are various
Commission support schemes as part of the first energy
framework programme, that are being conducted outside the
framework programme for research and development (see also
2.3.4).

2.3.9. With regard, in particular, to the objective of global
sustainability, the Committee opinion on preparations for the
World Summit on Sustainable Development in Johannesburg
drew attention to the key importance of intensive research in
the fields of energy and transport (3).

2.3.10.
The Committee is also currently working on an
opinion on the Commission’s ‘Intelligent Energy for Europe’
programme (4).

2.4. Case for this additional opinion

2.4.1.
The Committee opinion mentioned in points 2.3.7
and 2.3.8 above says relatively little about energy research,
given that this is just one of a very wide range of issues
and procedures addressed by the sixth RTDD framework
programme. That was also the reason why,
in its above-
mentioned opinions on the sixth framework programme as a
whole, the Committee did not consider it appropriate to
to energy
devote as much space,
research as the issue should, in itself, warrant.

importance and detail

Energy research also occupies a special position,
2.4.2.
however, in that it is the only element of the thematic actions
to straddle two separate Treaties: (i) the multiannual framework
programme of the European Community for research, techno-

2.4.5.
Thus, EU energy research activities remain somewhat
disjointed: the sixth RTDD framework programme, Euratom,
energy sector measures, as well as (6) Eureka, Cost, CERN, JRC
etc. The Committee feels that a key task for the Commission
— in conjunction with those responsible for and involved in
the various schemes and bodies — is to establish a joint,
coherent energy research strategy as part of the European
Research Area (see also 3.6).

2.4.6.
The Committee has therefore decided to follow up
the opinions mentioned in 2.3.7 and 2.3.8 with an additional
opinion devoted specifically to the overall issue of energy
research. This also reflects the Committee’s view that energy
research should be given a much sharper focus and a higher
profile, and should be presented in a uniform, coherent way.
This is also consistent with the urgency of the issue.

3. Strategy for a future European energy research pro-

gramme

3.1.
Energy research is the strategic element and essential
mainstay of any long-term, successful energy policy. Energy
requires as much scientific research and technological develop-
ment as possible. R&D investments are the current generation’s
way of making amends to future generations for present-
day consumption of energy resources and for loading the
atmosphere with greenhouse gases.

( 1) CES 693/2002.
( 2) COM(2002) 43 final.
( 3) CES 692/2002.
( 4) COM(2002) 162 final, 9.4.2002.

(5) Council paper 5650/02 + ADD 1 — Council 28.2. 2002

provisional version 6533/02 (press 43-G) page VII EN.

(6) Some of the organisations and programmes mentioned here go

further than the EU framework.

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3.2.
R&D is carried out by science and industry. Within the
EU, the skills and scientific expertise needed for excellence are
on hand. The EU also has the facilities to train specialists of
the future in order to ensure the success of the joint science
and industry research strategy, which is needed.

be a coherent, consistent, long-term European energy research
programme that clearly has the dedicated resources it needs
for implementation, is transparent to the public and enjoys
strong backing vis-à-vis political decision-makers.

3.3. Member States and the EU must support this strategy,
particularly given the long-term considerations and risk factors
involved in R&D. Competition would be seriously distorted
— to the detriment of European businesses and research
establishments — should such support fall substantially short
of
the public funding provided for this purpose in rival
markets.

Industry, science and politics thus have a joint task,
3.4.
namely (i)
to safeguard long-term energy supply for the
Community and its people, (ii) to develop the strategy needed
to achieve that objective and (iii) to provide the requisite
resources.

3.5.
This applies in particular to EU tasks, since energy
supply, trans-European energy networks etc. are typical fea-
tures of a single European market.

3.6.
Thus, major importance is attached to the European
Research Area — and the policy tools available under it.
However, the Committee would also urge governments, indus-
try and Member States’ research establishments to become
involved in any European strategy of this kind, and thus to
play a part in the European energy research programme that
is to be developed as a result (as already happens in the case of
fusion).

3.7.
The Committee is fully aware that many of these (and
the following) recommendations are already reflected in the
Commission proposal for the sixth framework programme,
the Euratom programme and other Commission schemes.
They are, however, incomplete and somewhat disjointed (see
also point 2.4.5). What the EU clearly needs, however, is a
balanced, sufficiently diverse and durably reliable overall
strategy arising out of a broad-based analysis of economic
and ecological requirements on the one hand, and possible
solutions and their potential for development on the other.
Although underpinned by different Treaties, the result should

The situation outside current EU borders is another

3.8.
consideration.

— First, there are the EU candidate countries and their
energy supplies. At issue are the safety and environmental
standards of the technologies available in these countries
and the difficulties they present. It is also important to
press ahead with, and build on, existing linkages with a
common research programme.

— Then,

there are the states bordering the candidate
countries, such as Ukraine and Russia. It is also vital to
engage in further timely cooperation with these countries
in the field of energy research — building on existing
cooperation ventures (1) — and to reach agreements on
issues like environmental standards.

— Last, but by no means least, however, there is also the
global aspect — and the global partnership for sustainable
development (Johannesburg). Among other things, this
involves the duty to bring European expertise and
technology to bear to help resolve global problems and
the difficulties faced by less developed countries. This
duty not only means sharing scientific and technical
know-how. It also presents an opportunity to export
cutting-edge technology and thus to foster EU competi-
tiveness and prosperity.

— The global dimension of the energy issue is an additional
incentive to seek out and foster strong international
cooperation in the field of energy research. International
organisations such as the IEA (International Energy
Agency) and the IAEA (International Atomic Energy
Agency) are also appropriate catalysts and vehicles on
this front.

3.9.
In order to provide energy feedstocks and dispose of
residues from energy consumption (or more precisely energy
transformation), it is essential to press ahead with the develop-
ment of all known and possible energy sources in a bid to
explore, improve and harness their potential for securing a
safe, cheap and sustainable energy supply. As research and
development are the wellsprings of the future, the effort this
requires should be measured against the backdrop of global
competition, the urgency of the environment issue and the
size and cost of overall energy consumption.

(1) OJ L 299, 28.11.2000, p. 14.

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3.10.
It must be remembered that, since it currently appears
that the energy issue is set to become dangerously acute in the
second half of the century, the strategy, test period and
prospects for development must look beyond that timeframe.
That said, given the long-term nature of the developments and
solutions required, it is essential to act decisively now.

4.4.
Policymakers must, where required, make rules or give
industry incentives to prevent this happening. It is also vital to
work towards ensuring that industry too meets the Barcelona
objectives (3) i.e. that it too invests markedly more of its own
resources in research and development.

3.11.
The Committee is pleased that many of its key views
are shared by the RTD Strategy Working Group E-WOG (a
Commission advisory group) and would refer to that group’s
working paper (1).

4.5.
Companies should become more involved in publicly
funded projects undertaken jointly with research establish-
ments, so that the energy research findings can be assimilated
and turned into products more quickly.
It is particularly
important to involve plant builders and operators in getting
demonstration projects up and running.

4. A joint research strategy: some considerations

4.1.
Any rational research strategy starts by considering
how best to conserve existing resources — or to tap into new
ones — and — how to reduce CO2 emissions and other
harmful emissions or residual matter — and keep energy
prices down. However, such a strategy must also work out
long-term and global objectives and pursue them with resolve.

4.2.
Industrial R&D must focus on objectives that offer
scope for quick returns and can be rapidly translated into
results, products, processes and services — in other words,
objectives with a relatively short payback period for the
research investments involved and which thus can largely be
met by companies themselves. Public research establishments
on the other hand must address what basic developments are
required, and,
in particular, promote projects where the
objectives can be reached only in the longer term. Overall,
industry and science must work closely together in mutual
partnerships in order, ultimately,
to arrive at marketable
solutions through basic research and demonstration projects.

The changes attendant upon the European single
4.3.
market (liberalisation) (2) are generally deemed beneficial to
security of energy supply. However, in the light of sharper
global competition, these measures may, in some industrial
sectors, cause shifts in incentives and responsibilities for
longer-term preparedness, resulting, temporarily at any rate,
in less industrial R&D.

A joint research strategy also requires adequate funding
4.6.
both for public research establishments and for industrial
research. It takes years — often decades — of R&D work for
an idea to go through the various stages (laboratory trial,
prototype and demonstration model) before finally becoming
a marketable product. If such developments are to have a
chance of success, national and European research funding
must be constant and long-term so that the players, companies
and research establishments involved have the security to plan
ahead and the courage to become involved.

4.7.
The tools to foster research on the EU’s part must be
selected and shaped in such a way that they are fine-tuned to
the specific topics and the differing timeframes involved. The
Committee feels that an appropriate range of options is offered
by the machinery used under the fifth framework programme
and the Euratom programme, and the measures proposed
under the sixth framework programme and the Euratom
programme.

Another aim should be to further pool the political
4.8.
and administrative responsibilities required for planning and
decision-making so that the need for the players involved
(e.g. the various European Commission directorates-general,
ministries and Member States) to coordinate and agree does
not lead to disproportionate delays — or even logjams — but
results in a well-coordinated, efficient, coherent approach that
is consistent with the objectives of the European Research
Area and makes full use of the opportunities that area offers.

( 1) E-WOG Working paper Sustainable and Affordable Energy for
the Future; Priorities for European Union Energy RTD: January
2001 EUR 19790.

( 2) Centre for European Policy Studies CEPS: Security of Energy
Supply, Report of a CEPS Working Party, November 2001,
page 22, ISBN 92-9079-358-9.

(3) See Barcelona European Council, March 2002, presidency con-

clusions and point 1.6.

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5. A future European energy research programme:

5.5.2. T e c h n i c a l c a t e g o r i e s

topics

5.1.
The Committee itself has no intention of framing or
proposing any agenda for an energy research programme of
this kind. Nor indeed is that part of its remit. Rather, the
Committee recommends that the Commission undertake this
task in the established manner,
in close cooperation with
industry, science and Member State governments.

— energy provision;

— energy transport, conversion, storage and use;

— process engineering;

— materials research and development;

— systems development and research.

5.2.
The resultant European energy research programme
could then be incorporated into plans for the period beyond
FP6, although it should, as far as possible, also be taken into
account during the sixth framework programme itself. The
fund to be taken over from the ECSC and the increase in the
research budget agreed in Barcelona open up the additional
room for manœuvre that is required.

5.5.3. U s e r c a t e g o r i e s

— transport;

— industry and business;

5.3. With no single solution to the energy problem on the
horizon, the issue can only be tackled by continuing to develop
and explore all kinds of promising energy sources, technologies
and options.

5.4.
It is vital both to (continue to) develop well-known
and proven techniques and concepts consistently and inven-
tively, and also to give new ideas and innovations a chance.

As things stand therefore, useful energy research could

5.5.
focus on key areas such as:

5.5.1. O v e r a l l y a r d s t i c k s

— resources;

— residues/emissions;

— availability;

— security of supply;

— sustainability;

— safety/risks;

— reliability;

— other environmental factors;

— geopolitical considerations;

— costs;

— acceptance.

— building, housing and private households.

5.5.4.

P r i m a r y e n e r g i e s a n d t h e c o n v e r s i o n
p r o c e s s e s t h e r e o f

— coal and derivatives;

— crude oil and derivatives;

— natural gas and derivatives;

— nuclear fission;

— nuclear fusion;

— hydropower and tidal energy;

— biomass and derivatives;

— wind power;

— solar heat systems;

— photovoltaics;

— geothermal energy.

6. Topics — some examples

6.1.
First of all, it should be stressed that R&D work to date
has already been highly successful. Examples range from
the significant rise in conventional power plant efficiency
(including the desulphurisation and denoxing of flue gases) to
the development of fuel cells, low-consumption diesel engines,
high-output wind turbines (and their extensive introduction
onto the market) and passive emergency cooling systems for
nuclear reactors. They also include the decisive advances that
have been made in the field of fusion research. These and
many other examples show what can be achieved through a
thirst for research, the art of engineering, a spirit of invention

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and both entrepreneurial and political commitment, when the
right conditions are in place. They also show that a far-sighted
approach and the investment outlay involved are worthwhile
and can achieve the desired objective.

— hydrogen technology (1);

— superconductive energy transport and storage systems.

Building on that, the following are some examples of
6.2.
topics for future R&D work. The list is non-exhaustive (i.e. it
does not rule out further ideas and projects that happen not to
appear):

6.2.1.

E n e r g y t r a n s f e r , c o n v e r s i o n a n d u s e

6.2.2. M a t e r i a l
r e s e a r c h

s c i e n c e s ,

e n e r g y

s y s t e m s

— materials and operating equipment, for instance for
gas and steam turbines, fuel cells, solar cells, thermal
insulation, heat stores, special cables, superconductors
and fusion power plant components;

— energy systems research: correlations between economy
technology impact assessment, market

and ecology,
analyses, model scenarios, foresight.

— further development of steam — and particularly gas
— turbines as a key technology to boost efficiency
(materials);

6.2.3.

E n e r g y s u p p l y i n c l u d i n g s a f e t y a n d
e n v i r o n m e n t a l c o n s i d e r a t i o n s

— more efficient industrial technologies (e.g. steel-making,

chemical production and the food industry);

— improved internal combustion engine systems, including

hybrid technologies;

— leakage-free natural gas production and transport;

— production technologies for alternative fuels (methanol,
ethanol, synthetic hydrocarbons, hydrogen) and the trans-
port and storage of gaseous fuels (natural gas, biogas,
hydrogen);

— further development of (i) traditional power plant tech-
nologies in a bid to make them more efficient (ii) com-
bined technologies and new processes such as dry lignite
power plants, pressurised pulverised combustion of lig-
nite and hard coal, pressurised fluidised bed combustion
of lignite, hard coal and biomass, integrated coal gasifi-
cation, co-incineration of replacement fuels or biomass,
co-generation gas and steam turbine power plants, steam
power plants with critical steam conditions;

— flue gas filtering and purification, CO2 sequestration,

landscape protection;

— use of biomass, the logistical considerations involved and

optimum applications, emissions;

— heat and power co-generation, decentralisation versus

centralisation;

— improved thermodynamics and thermal

insulation in

building engineering;

— hydropower, safety (geological, internal, external);

— active and passive use of solar energy in building
engineering (including the artistic/aesthetic stimuli that
are important for architects);

— electricity and heat storage techniques;

— network planning and management;

— heating and air-conditioning within buildings;

— wind and solar power plants: development and testing of
various approaches and projects, e.g. solar thermal energy
for electricity generation and building heating systems,
various technologies for photovoltaic use and component
(cell) production, ongoing progress with regard to
efficiency, cost reduction, network connections, matching
supply and demand, energy storage, marketing and
landscape protection;

— fuel cells for stationary and mobile use and to power

vehicles;

— technologies that can modulate output to reflect the

demand/supply fluctuations of renewables;

(1) On account of misleading reports often heard in the media and
advertising, it should be pointed out that hydrogen is not readily
available as a primary energy source, but must first be generated
from water using electricity. Its advantage may lie in its storability
and suitability for use as fuel (especially in fuel cells). It does not
produce carbon dioxide when burnt.

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— fission reactors: internal and external security, develop-
ment of alternative reactor concepts, especially inherently
safe reactors; transport, processing and storage of radioac-
tive fission products; transmutation of particularly radio-
toxic and long-lived radionuclides;

priority to renewables) and cheap loans. Such moves are based
on the expectation that,
in future, the costs of production
technologies will fall as fossil fuels become more expensive
(prices and energy taxes), thereby closing the existing gap.

— development of fusion reactors: fundamentals, concepts,
demonstration activities, technology, internal and exter-
nal security; drawing up a strategy to significantly cut the
timeframe for building a demonstration power plant.

6.3.4.1.
Research must therefore, above all, aim to make
these technologies more competitive and more readily avail-
able in their own right (storage). That said, however, a clear
distinction — not always made — must be drawn between
R&D on the one hand, and the promotion of market position
on the other.

6.3. Remarks on these examples

6.3.1.
The greatest threat to energy supplies within the EU
is the dominant use (combustion) of fossil fuels (79 % of
overall energy supply), and the 70 % import-dependency
forecast in the medium term. Equally, in the short and medium
term, the potential for saving these fuels — and thus for
cutting CO2 emissions — is also particularly high. This
could be achieved by improving processing, incineration and
conversion techniques and by making more effective use of
heat and secondary energy. Examples include making elec-
tricity-producing power plants more efficient (especially in
terms of materials developments and metallurgy) and improv-
ing industrial processes, for instance in the chemical and
steel industries. Other cases in point include the propulsion
technologies of motor vehicles, thermal insulation and the
passive solar use of buildings.

6.3.2.
The use of some of renewables such as hydropower
— and to some extent also biomass combustion (wood) —
has a long tradition and is (broadly speaking) competitive.
Also, hydropower is used effectively in reservoir power stations
to meet peak load (peak demand).

6.3.3.
Other renewables such as wind and solar tech-
nologies are also widely used, but make up only some 1 % of
EU energy supply and (still) remain uncompetitive. Yet it is far
cheaper to use wind energy than to produce electricity by
photovoltaics. However, there is still a lack of storage facilities.
This means that supply depends on daily or annual cycles and
weather conditions, and ‘conventional’ power plants have to
be kept on hand as a buffer. It also limits the potential share
of the overall electricity market.

6.3.4.
For that reason, incentives are being put in place in
several Member States to foster the use of still-uncompetitive
processes. Examples include consumer prices that are consider-
ably higher than the market price (e.g. under laws that grant

6.3.4.2.
In particular, the increasing need for adequate
research promotion (and the costs that involves) should be set
against the costs to consumers and public authorities of market
subsidies that have now reached sizeable levels. Another
question arising in this connection is: how much of a rise in
energy prices can the European economy put up with in the
longer term, not least in the face of global competition?

6.3.5.
In principle, nuclear energy may be generated both
by the fission of very heavy atomic nuclei such as uranium or
plutonium and by the fusion of very light atomic nuclei such
as deuterium or tritium. These processes differ fundamentally,
however, in terms of how they work, operating conditions,
environmental and safety aspects, resources, etc.

6.3.6.
Fission reactors have been operating widely across
the world for decades. However, technical and safety standards
vary from country to country. EU reactors are among the best
developed. It is thus clear even at this stage that the Union is
facing new tasks in raising these standards in non-Member
States. The main purpose of research must therefore be to
boost safety standards still further, to press for their application
in non-EU countries as well and to seek ever more effective
solutions for the disposal of long-lived radioactive fission
products.

6.3.7.
Fusion reactors are still at the development stage.
However, from a safety angle and given their much lower
levels of radiotoxic waste — with no long-lived components
(actinides) — and the virtually unrestricted supply of resources,
they are potentially a key, sustainable technology of the future.
Spurred on by the successes of the fusion programme that is
already fully integrated into the European Research Area (see
also point 3.6 above), it has been possible, through worldwide
collaboration involving the EU, Japan, Canada and Russia,
to draw up construction plans for the ITER international
ITER is designed to demonstrate at
experimental reactor.
power-plant level the technological and scientific potential of
nuclear fusion as a practical energy source. Under ITER,

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therefore, research must focus on demonstrating the feasibility
and environmental benefits of this technology as quickly as
possible so as to lay the groundwork for building the first
electricity-producing fusion power plant.

EU industry and research lead the way in virtually all
6.3.8.
of the fields mentioned above. It is vital therefore to maintain
and build on that position and expertise and to use it to the
advantage of vulnerable European energy supply, and for the
purposes of global networking and to meet global commit-
ments.

In this context, the Committee would repeat its call
6.3.9.
to policymakers, industry and scientists to make scientific
and technical professions sufficiently attractive that enough
talented young people opt to train for them. This means,
among other things, ensuring that training centres meet the
highest standards, and bringing home to those embarking on
their studies the crucial importance of scientists and engineers
who,
in the various energy sectors, ensure an adequate,
environmentally sound energy supply. If young people are to
be encouraged to embark on a long-term career in energy
technologies,
the sector has to offer sufficiently attractive
career and promotion opportunities and remuneration.

6.3.10.
The Committee would also repeat its call to bring
the allied issues of energy, energy research and sustainability
into consultations with civil society, including schools and the
media. In society and within the democratic process, people
above all need information to help ensure that, in this field,
the right course of action, the right precautionary measures
and the right decisions are taken.

7.3.
Intensive research and development in particular may
be the key to potential solutions. Energy research is the
strategic element and essential mainstay of any long-term,
successful energy policy. R&D investments are the current
generation’s way of making amends to future generations for
present-day consumption of resources and for polluting the
atmosphere with emissions and residues of energy consump-
tion.

7.4.
The Committee therefore recommends that the Com-
mission draw up an integrated European energy research
strategy, from which a comprehensive future European energy
research programme will be derived. This programme should,
if possible, be launched during the lifespan of
the sixth
framework programme, but at the latest during the following
period. The additional resources required should be provided
from the increase in overall R&D expenditure (in line with the
Barcelona decisions) and from parts of the ECSC fund.

7.5.
Key importance is thereby attached to the European
Research Area — and the policy tools available under it.
The Committee would also urge governments, industry and
Member States’ research establishments to become involved in
any European strategy of this kind, and to play a part in any
European energy research programme. The opportunities
offered by the ERA should be utilised through a comprehen-
sive, transparent and coordinated energy research strategy,
supported by all the players involved.

7. Summary and Committee recommendations

Securing a low-price, environmentally sound and sus-
7.1.
tainable energy supply within the EU is an issue at the heart of
the decisions taken at the Lisbon, Gothenburg and Barcelona
Councils. Further efforts are needed, however, to meet this key
objective. There is an energy problem that needs to be resolved.
Industry, science and politics have a joint task to develop the
necessary strategy and provide the requisite resources.

for the sixth framework programme,

The Committee is fully aware that many of its rec-
7.6.
ommendations are already reflected in the Commission pro-
posal
the Euratom
programme and other Commission schemes. They are, how-
ever,
incomplete and disjointed. Although underpinned by
different Treaties, the result should be a coherent, consistent,
long-term European energy research programme that clearly
has the dedicated resources it needs for implementation, is
transparent to the public and enjoys strong backing vis-à-vis
political decision-makers.

7.2.
However, the strategy designed to resolve the energy
problem must not adopt a piecemeal approach. It is vital to
discuss the matter fully and in its long-term, global context,
and to tackle it on a broad front. Resolving the energy issue is
the key element and definitive touchstone of any global
sustainability partnership.

7.7.
In order to provide energy feedstocks and dispose of
— and reduce — residues from energy consumption, it is
essential to press ahead with the development of all known
and possible energy sources in a bid to explore and improve
their potential and turn it to the best possible use. As research
and development are the wellsprings of the future, the effort

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this requires should be measured against global competition,
the critical supply position, the urgency of the environment
issue and the size and cost of overall energy consumption.

7.8.
Industry involvement should focus on objectives that
offer scope for quick returns and can be rapidly translated into
results, products, processes and services — in other words,
objectives with a relatively short payback period for the
research investments involved and which thus can largely be
met by companies themselves. European single market rules
and other incentives must be geared towards ensuring that
industry meets the Barcelona objectives and becomes involved
in the European energy research programme.

7.9.
Public research establishments on the other hand
must address what basic developments are required, and, in
particular, promote projects where the objectives can be
reached only in the longer term. Industry and science must
work closely together in mutual partnerships in order, ulti-
mately, to arrive at marketable solutions through basic research
and joint demonstration projects.

7.10.
The issues included in the resultant research pro-
gramme should include all appropriate user-related aspects,

Brussels, 17 July 2002.

including households, buildings, industry and transport, and
should also take account of the various supply, conversion,
including energy
distribution and application technologies,
saving and the development of new concepts. This also
brings in security-of-supply issues, technical risk reduction or
management, environmental protection and the prevention or
disposal of
residues from energy use (greenhouse gases,
radioactivity). Other aspects include the (further) development
of the requisite materials, and systems studies for analytical or
forecasting purposes in which demographic, economic and
environmental scenarios are worked out and tested.

7.11.
Steps should be taken to foster, continue and support
cooperation and networking not only with the candidate
countries, but also with their neighbouring countries and,
ultimately, at global level too. In terms of supply, and of
the potential economic, environmental and political impact
involved, energy is, in the final analysis, a global problem.

7.12.
In conclusion, the Committee would also repeat its
call to bring the allied issues of energy, energy research and
sustainability into consultations with civil society, including
schools and the media. In society and within the democratic
process, people above all need information to help ensure that,
in this vital
the right
precautionary measures and the right decisions are taken.

the right course of action,

field,

The President

of the Economic and Social Committee

Göke FRERICHS