Opinion of the Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council adopting a multiannual programme for action in the field of energy: Intelligent Energy for Europe Programme (2003-2006)" (COM(2002) 162 final/2 — 2002/0082 (COD))
Date: 2002-09-18
Institutions: European Economic and Social Committee
Subjects: EU office or agency, action programme, available energy, energy demand, energy policy, renewable energy

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4.7.

International co-operation

The Committee supports the proposed programme
4.7.1.
of international co-operation. It recognises however that the
US feels constrained to some extent by the first amendment in

favour of ‘free speech’ whereas the EU is seeking to balance
this with safety needs and human dignity. In the end, the EU is
a big enough market to take action on its own and this is an
important example where citizens are looking to the EU to
protect them.

Brussels, 18 September 2002.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Decision of the European
Parliament and of the Council adopting a multiannual programme for action in the field of
energy: “Intelligent Energy for Europe” Programme (2003-2006)’

(COM(2002) 162 final/2 — 2002/0082 (COD))

(2003/C 61/07)

On 6 May 2002, the Council decided to consult the Economic and Social Committee, under Article 175
of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 2 September 2002. The
rapporteur was Mr Morgan.

At its 393rd Plenary Session held on 18 and 19 September 2002 (meeting of 18 September) the
Economic and Social Committee adopted the following opinion by 127 votes for, three against and one
abstention.

1.

Introduction

1.1.
The Commission has made a proposal for a Decision
of the European Parliament and the Council on a multiannual
programme for action in the field on energy — the ‘Intelligent
Energy for Europe’ programme — for the period 2003 to
2006. With a budget of EUR 215 million, the programme
implements the strategy outlined in the Green Paper on
security of energy supply, founded on renewable energy
sources and energy saving.

This proposal does not relate to the whole of EU
1.2.
energy policy but specifically to actions in the fields of energy
efficiency and renewable energy. It deals only with the EC
treaty and not with Euratom and it excludes consideration of
research and development which will be covered by the
6th Framework Programme. Intelligent energy is about the
improved use of energy (energy efficiency) and encouraging
the use of renewable sources of energy.

The programme aims

to complement and help
1.3.
implement the various legislative measures agreed by the
Community in the fields of energy efficiency, renewable energy
sources and transport. These include the Directive for the
promotion of electricity produced from renewable energy
sourcesin the internal market (Directive 2001/77/EC); proposal
for a Directive on the promotion of the use of biofuels
for transport (1); proposal
for a Directive on the energy
performance of buildings (2); proposal for a Directive on the
promotion of co-generation based on a useful heat demand in
the internal energy (3).

The programme is designed as the main Community
1.4.
in the field of
instrument
energy. This is a new programme but it also provides
continuity for the actions under the Altener, SAVE and Synergy

for non-technological support

(1) COM(2001) 547 final.
(2) COM(2001) 226 final.
(3) COM(2002) 415 final.

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programmes.
It aims to strengthen the renewable energy
sources and energy efficiency strands of these programmes,
introduces a third strand on energy in transport and a
fourth strand on international collaboration with developing
countries, promoting renewable energy sources and energy
efficiency. It also aims to strengthen measures to disseminate
and encourage best practice through awareness campaigns,
education and promoting investment in new technologies.

The programme is structured in four specific areas:
1.5.
rational use of energy and demand management (SAVE), new
and renewable energy sources (Altener), energy aspects of
transport (Steer), and promotion at international level in the
fields of renewable energy sources and energy efficiency
(Coopener). Actions to be funded will include: implementation
of strategies; development of standards; creation of structures
and financial and market instruments; promotion of systems
and equipment to ease the transition from demonstration
to marketing; development of information and education
structures and utilisation of
the results; monitoring and
assessment.

1.6.
The Commission is also considering delegating certain
programme management tasks to an executive agency and the
document sets out the range of tasks that such an agency
would undertake. However, there is no formal proposal on
this at present. This will be subject to a separate proposal for a
Decision as soon as the Council Regulation laying down the
statute for executive agencies, to be entrusted with certain
tasks in the management of Community programmes, has
been adopted.

2. General comments

2.1.
The Economic and Social Committee welcomes the
Intelligent Energy proposal, as this accords with a number of
earlier recommendations made by the Committee about the
need to promote energy efficiency, renewable energy sources
and the transfer of energy saving technology and know-how
to developing countries (ref: ESC Opinion on Green Paper —
Towards a European strategy for the security of energy
supply (1)). The proposed Intelligent Energy programme brings
together four key elements of energy policy that need to be
tackled effectively to deliver energy security in the present
political context and to enable the Community to meet its
sustainability goals and its international obligations on climate
change.

There is

substantial unmet potential

2.2.
for energy
efficiency in buildings and industry — estimated by the
Commission to be 18 % of current total consumption (2)). The
Commission’s action plan to improve energy efficiency (which
includes the measures proposed in this Intelligent Energy
programme) is designed to achieve two-thirds of this potential
by 2010. To do this it will need to achieve an improvement of
1 % a year compared with an average of 0.6 % over the past
ten years. This would contribute about 40 % of the CO2
emissions reductions needed to meet the EU’s Kyoto commit-
ment.

2.3.
Renewable energy sources currently represent 6 % of
energy supply and 14 % of electricity production in the EU.
The Committee has previously noted that renewable energy
sources have a significant role to play in combating climate
change and that they will help to diversify energy sources to
provide energy security, in particular, by lessening dependence
on imported energy sources (Opinion on renewable energy
sources 2000). The Committee has emphasised the need for
strong action to make optimal use of renewable energy sources
and sees a clear need for incentives to increase their use
(Opinion on renewable energy sources 2000). The Communi-
cation from the Commission entitled ‘Energy for the future:
renewable sources of energy — White Paper for a Community
strategy and action plan’ (3) sets an indicative target of 12 % of
energy (22 % of electricity production) supply from renewable
energy sources by 2010.

2.4.
Transport policy must be a priority for action as
transport absorbs over 30 % of total final energy consumption
(ref: Action plan to improve energy efficiency in the European
Community). The long-term EU target is a 50 % reduction in
CO2 emissions per passenger-kilometre and per payload-
kilometre. In the shorter term the aim is 5-10 % energy savings
to achieve aggregate reductions in CO2 emissions. The EU has
reached a voluntary agreement with car manufacturers to
reduce the average CO2 emissions of new cars by one-third by
2005/2010 compared to 1995 levels.

2.5.
In its Opinion on the Green Paper on security of energy
supply the Committee stressed the need for action by the EU
to support developing world countries’ efforts to achieve
sustainable development. Developing countries currently use
far less energy per capita than do the countries in the developed
world, largely due to their much lower living standards. It is
right that living standards and energy use should rise in
developing countries, but the challenge will be to achieve those

( 1) COM(2000) 769 final.

(2) COM(2002) 162 final, p. 21.
(3) COM(97) 599 final.

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higher standards without substantial
increases in emissions.
There will be temptations for developing countries to seek
short-term cheap energy sources rather than adopt long-term
sustainable efficient and renewable structures. However, such
measures can be more cost effectively provided at the develop-
ment stage rather than later. The need to promote best
practices in the fields of renewable energy sources and energy
efficiency and to transfer them to developing countries in
particular, is thus rightly one of the Community’s priorities as
regards international commitments, along with strengthening
co-operation on the use of flexible mechanisms of the Kyoto
protocol.

2.6.
The evaluation of the previous programmes (Altener
and SAVE 1991-97 and the first two years of the First Energy
Framework Programme 1998-2002) recognised the value of
these programmes and the contributions that they had made
to reducing CO2 emissions, but also identified areas where
improvements were needed. These included:
the need for
better co-ordination and consistency between the various
programmes;
the need to improve methods of selection,
evaluation and management of the programmes and the
dissemination of results. The evaluation recommended that in
future there should be a single programme rather than separate
ones for energy efficiency, renewables etc.

3. The main issues

In order to assess this proposal the Committee there-
3.1.
fore has to determine: whether the Commission’s proposal
meets the challenges set by climate change, and the need
for sustainable development, economic competitiveness and
energy security; and whether it will realise the potential for
energy efficiency and renewable energy sources to contribute
to these challenges both within and beyond the EU in industry,
buildings and transport.

3.2.
The Commission’s energy efficiency target of a 1 % per
annum reduction up to 2010 will be challenging. The 0.6 %
annual improvement over the past ten years may not be easily
sustainable (let alone easy to beat) as much of this has come
from a switch from energy intensive industry to services.
Industrial use now accounts for less than one-third of the non-
transport total and this will continue to decline as the economy
restructures further towards services and the remaining indus-
try becomes more energy efficient. Energy use is actually

increasing in what are now the two largest sectors (households
and the service/public sector) although it is falling in the
industrial sector. These sectors are particularly increasing their
use of electricity for appliances and equipment and air
conditioning is another growth area.

The Commission’s target

3.3.
for renewable energy is
ambitious as, on a business-as-usual basis, renewable energy
sources would be expected to meet only 8 % of energy supply
by 2030 (1). Many renewable energy sources are far from
competitive with traditional energy sources when externalities
are ignored and therefore, if left to the market, their uptake
will be difficult to increase at the level needed to meet the
Commission’s target.

CO2 emissions from transport are expected to increase
3.4.
by about 40 % between 1990 and 2010. Turning this around,
in the absence of further specific measures to tackle transport
use, will be extremely challenging, especially if externalities
continue to be discounted.

3.5.
As noted above, energy demand will need to increase
in developing countries in the future and there is a danger that
opportunities to build in energy efficiency and renewables
could be lost if action is not taken swiftly enough.

3.6.
In view of these challenges there is also a question
about whether the legislative package at Community level is
complete. Whilst there is a need to strike a balance between
regulation and the market, effective legislation is required in a
number of areas. Although there is a broad range of measures
in place or in the form of draft directives, some are not legally
binding (e.g. household appliance and office equipment labels
and standards). Others set indicative targets (e.g. for renewable
energy sources) but effective realisation of these at least in
some Member States remains in question.

There is also a need for a greater commitment to
3.7.
intelligent energy at Member State level. As the Commission
notes (p. 21) most Community measures on energy efficiency
are not binding on the Member States. This support pro-
gramme is therefore a useful means of securing greater
commitment at Member State level, but it can only make a

(1) COM(2001) 769 final.

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small contribution. Member States must therefore be encour-
aged to step up their commitments to improve energy
efficiency and use of renewable energy sources through
appropriate legislative and support mechanisms. Indeed, some
legislation may be more appropriately developed at
the
national rather than EU level to take account of specific
circumstances in individual countries. The key test for this
programme therefore will be the extent to which it can harness
and share the knowledge and capabilities existing in Member
States.

At Member State level there are also economic oppor-
3.8.
tunities to promote energy efficiency and CO2 reduction. They
can be achieved both by favourable tax policies and support
measures for renewable energy sources.

In the view of the Committee, the Intelligent Energy
3.9.
programme can make a valuable contribution towards the
goals of energy security, sustainable development and tackling
climate change. However,
in order for the programme to
deliver a step change of the level required there are a number
of other preconditions. Firstly, in some situations, according
to the different circumstances in each country, there may be a
need on a selective basis for legislation and economic instru-
ments to bring about change. Secondly, advances in transport,
energy efficiency and renewables all depend upon successful
research and development and the effective implementation of
the 6th Framework Programme. In this context, the Committee
draws specific attention to its Opinion ‘Research needs for a
safe and sustainable energy supply’ (CES 578/2002). Finally,
the role of the proposed Agency will be critical: it has to have
the mission and scope to bring about change of a kind that we
have not yet seen.

4. The programmes and the budget

4.1.
The Committee supports the proposal to bring together
the different aspects of intelligent energy — energy efficiency,
renewables, transport and international work — into a single
programme. As the evaluation of the programmes to date
found, this should make efforts more effective and cohesive
and help to avoid conflicts and duplication. The benefits of
having a single programme will come not just in terms of

more efficient administration but also in the easier facilitation
of cross-programme opportunities — e.g. programmes and
tackle energy efficiency and renewables, or
projects that
buildings and transport, for example.

4.2.
SAVE and Altener are programmes that have been in
existence for some time. However, Steer and Coopener are
essentially new programmes and it would therefore have been
helpful if the Commission had provided more information on
what they are intended to achieve. This is particularly so given
that they have relatively small
indicative budgets and will
therefore need to be well focussed if they are to make any
impact.

4.3.
The Committee welcomes the proposal to define key
actions, which should help to focus the programme and enable
it to have a greater impact. Without this there is a danger that
resources could be spread too thinly and that dissemination of
results becomes too unwieldy. The evaluation of the previous
programmes found that there had been too many small
programmes with limited impact.

4.4.
The Committee approves the Commission’s emphasis
on the need ‘to bring about a genuine change in consumer
behaviour’. This must be the focus of key action programmes
in all Member States. Likewise, the Committee approves the
Commission’s recognition of the importance of education and
training. It also stresses the need to appeal to young people
with energy integrated into the school curriculum and into
competition and award schemes.

4.5.
The document (table p. 19) talks of the possibility of
combined key actions covering several specific areas. The
Committee considers it would be valuable to ensure that key
actions and projects that combine two or more of the four
fields of action can be developed. For example, there is an
opportunity to make better links between actions to utilise
renewable energy sources and improve energy efficiency in
buildings so that a co-ordinated approach to low emission or
zero emission buildings can be developed.

There are three further areas where the Committee
4.6.
would like to see a key actions. Firstly,
in the role of
energy suppliers — in particular to encourage them to offer
comprehensive energy services to customers that include both
renewable energy sources and energy efficiency. Secondly, to
ensure that architects and developers realise opportunities to
maximise energy efficiency in new buildings. Thirdly,
to
develop, where appropriate, the role of energy efficiency and
renewable energy in carbon valuation and emissions trading
schemes.

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4.7.
The Committee welcomes the increase in budget for
Intelligent Energy compared to its predecessor programmes.
There is of course a question, given the scale of the task, as to
whether even this increase in budget is likely to be adequate.
However, given the findings of the evaluation of previous
programmes about the need for improvements in programme
management, it would seem unwise to increase the budget too
substantially too rapidly as pressures to spend the money
might lead to inefficiencies. The Committee expects appropri-
ate financial controls to be applied. The Committee believes
that the budget level proposed by the Commission represents
a sensible compromise. In arriving at this conclusion the
Committee takes into account the commitment for additional
funding when enlargement takes place and also the presump-
tion that the Agency will be able to lever effectively the skills
and resources of the Member States.

programmes concluded. It is not something that individual
Member States can easily perform, as it requires good networks
the Member States. Such a role would add
throughout
considerable value to individual Member State action. It could
have a particularly important role to play post enlargement, as
the new members will particularly need the information that
it could provide.

The Intelligent Energy programme needs to achieve
5.4.
more than just demonstration projects; where projects and
programmes lead to successful outcomes these need to be
widely implemented. In particular, it must become its key
interface from its 6th framework programme into the market.

The Commission says that the programme aims to link
4.8.
the support initiatives (SAVE etc.) with the legislative actions.
This is welcome, but it is unclear how this will be done. One
option might be to consider, in determining the key actions,
how these might link to specific pieces of legislation such as
the proposed energy in buildings directive.

There is also an important role to be played in the delivery,
dissemination and promotion of the Intelligent Energy pro-
gramme by relevant energy agencies and centres at Member
State and regional level. In particular, such agencies could
provide the link between the Commission and the Agency and
local organisations, providing a more cost effective and
responsive method of supporting smaller projects which may
be difficult for the Commission to support directly.

5. Executive Agency

5.1.
It is difficult for the Committee to make fully informed
comments on the idea of an Executive Agency without seeing
the proposal for a Decision on the agency alongside this
proposal.

5.2.
It is the Committee’s understanding that the Executive
Agency envisaged in this proposal will have the following
characteristics. Firstly, its work and in particular the selected
action programmes will be determined by a committee led by
the Commission and involving Member States. Secondly, a
small number of Commission staff will be seconded to the
Agency to manage the action programmes. Thirdly, the action
programmes themselves will be staffed by staff recruited on a
contract basis. The concerns to which this proposal gives rise
are that: the know-how generated will be lost if staffing is
transient; the work of the Agency will be narrowly specified
and will
ignore the full scale and scope of Member State
activities.

5.5.
The Committee recognizes that the Executive Agency
has three advantages: it is ‘off-budget’ , it facilitates a ‘quick
start’ and it allows necessary skills to be recruited. However,
these are short-term palliatives and ignore the long-term issues.
The Committee feels that the Commission must go further
than is presently proposed and choose one of
the two
following options: either establish a fully fledged traditional
agency with a wide-ranging brief for leveraging country skills,
competencies and resources; or locate such a mission within
the Commission staff with the necessary resources and objec-
tives. This is because it is a sector of considerable strategic
concern which must have the full weight of the Commission
behind it.

6. Conclusion

5.3.
Currently, there is no organisation at EU level that
performs the crucial role of promotion and dissemination to
the level that is required. These tasks require an improved
effort by the Commission as the evaluation of the previous

There are unresolved issues relating to the agency proposal —
in the Committee’s view there is a need for more than an
executive arm for a limited number of action programmes, if
the full opportunity of Intelligent Energy is to be realised.
Furthermore, the Intelligent Energy proposal itself will not
achieve the scale of change needed for the EU’s strategic and

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sustainable energy goals unless other preconditions are met:
Member State commitment; selective legislative support; econ-
omic instruments; successful research and development out-
comes. The case for a full EU strategic energy initiative still

needs to be answered. Nevertheless, the Committee believes
that the programme proposed by the Commission is valuable.
It needs to be put in place by the end of 2002, so this decision
should be made forthwith.

Brussels, 18 September 2002.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Regulation of the European
Parliament and the Council on additives for use in animal nutrition’

(COM(2002) 153 final — 2002/0073 (COD))

(2003/C 61/08)

On 10 April 2002, the Council of the European Union decided to consult the Economic and Social
Committee, under Articles 37 and 152(4)(b) of the Treaty establishing the European Community on the
above-mentioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 29 August 2002. The rapporteur
was Mr Scully.

At its 393rd Plenary Session on 18 and 19 September 2002 (meeting of 18 September) the Economic
and Social Committee adopted the following opinion by 129 votes to one, with five abstentions.

1. Background

nationally and then, with the adoption of Council Directive
70/524/EEC (1) and 96/51/EC (2), on an EU-wide basis.

1.1.
Anti-microbials have been used as growth promoters,
especially in pig and poultry farming for more than four
decades. The use of growth promoters leads to 4 — 5 % more
body weight for animals receiving them. Much larger amounts
of antibiotics are used in this manner than in medical
applications: in Denmark in 1994, 24 kg of the glycopeptide
vancomycin were used for human therapy, whereas 24 000 kg
of a similar glycopeptide avoparcin were used in animal feed.

In 1999,

1.2.
the Scientific Steering Committee (SSC)
expressed great concern about increasing health threats due to
anti-microbial resistance and recommended immediately to
reduce the inappropriate use of anti-microbials. The core
strategy of reducing anti-microbial use should apply equally
the areas of human medicine, veterinary
across each of
medicine, animal production and plant protection.

1.3.
Emergence of anti-microbial resistance is a multifactor-
al problem and thus requires a multifaceted solution and it has

1.1.1.
The use of antibiotics, in various states of purity, as
feed additives has increasingly come under regulation, first

(1) OJ L 270, 14.12.1970, p. 1-17.
(2) OJ L 235, 17.9.1996, p. 39-58.