Opinion of the European Economic and Social Committee on Energy Efficiency
Date: 2006-02-14
Institutions: European Economic and Social Committee
Subjects: energy consumption, energy policy, energy production, energy saving, energy supply, energy technology, innovation, renewable energy, sustainable development

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6.9 Mandatory

In order to avoid new differences in tax treatment being
created within the Member States, in an optimum system the
tax base rules must be mandatory both for companies with
cross-border activity and for those operating in one country
only. If a common system follows general principles and is
sufficiently simple and competitive for firms, then the argu-
ment for a mandatory or for a voluntary system will be largely
academic. The design of the system will determine whether or
not a mandatory system is called into question

6.10 Interim/transitional rules

However, allowing companies the freedom to choose could be
an acceptable interim system. A major change such as that

Brussels, 14 February 2006

introduced by a common corporate tax base might also require
transitional
rules
option would make for a more flexible implementation of a
common system.

rules. An interim system or

transitional

6.11 Smooth decision-making procedures

Despite the need for a long-term, stable taxation system for
companies, there must also be potential for change in order to
be able to respond to changes in the world around us or to
plug ‘gaps’ in the system. This could be a matter of whether the
system creates any unintentional effects, for example. Any deci-
sion on a common system therefore needs to include rules to
enable adjustments to be made smoothly.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

Opinion of the European Economic and Social Committee on Energy Efficiency

(2006/C 88/13)

In a letter dated 7 June 2005, the European Commission asked the European Economic and Social
Committee, under Article 262 of the Treaty establishing the European Community, to draw up an opinion
on Energy Efficiency.

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 31 January 2006. The rapporteur
was Mr Buffetaut.

At its 424th plenary session, held on 14 and 15 February 2006 (meeting of 14 February), the European
Economic and Social Committee adopted the following opinion by 78 votes to 2 with 1 abstention.

1. Conclusion: Promoting Energy Efficiency

already been adopted whose implementation must still be
assessed.

The search for energy efficiency has become a necessity
1.1
for enterprises; accordingly,
in most cases, voluntary agree-
ments should be able to cope with the major challenges of
increased energy costs.

1.2
The European Union could play a particularly useful
role by systemising information on best practices and innova-
tions in this field. DG Energy could become an information
hub for energy efficiency.

Public awareness campaigns can also play a useful role.
1.3
To be successful, these campaigns must take place as close as
possible to end consumers and to the professional sectors
concerned. It is, therefore, up to the national and local authori-
ties to take responsibility for such action.

1.4
Lastly, recourse to regulation should be the exception
rather than the rule given that several legal instruments have

1.5
Energy efficiency isn't simply a slogan, a luxury or a
gadget. From an international perspective, where the demand
for energy will continue to grow, particularly due to the rapid
development of emerging economies such as China, India or
Brazil, it is in the best interests of the public, businesses and
the EU Member States. The International Energy Agency fore-
casts that world energy demand will increase by 60 % by the
year 2030, whilst the European Union — which is 80 % depen-
dent on fossil fuels — will see its energy imports rise from 50
to 70 % over the same period. However, compared with
energy-producing countries and other large energy consumers,
the European Union is not a united player on the world energy
market. It is for this reason that during the informal Hampton
Court summit last October, Tony Blair, as president of the
Council, advocated the creation of a common energy policy.

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1.6
It is important not to ignore the fact that the rapid rise
in demand and increase in energy costs can have a heavy
impact on the economic growth of
the European Union,
encourage certain high energy consuming sectors to relocate
and, consequently, damage the social situation of Member
States whose social security systems are already overstrained as
a result of ageing populations and a declining birth rate. In this
respect,
energy efficiency measures are very worthwhile
because in the final analysis they contribute to a reduction in
costs and thereby to increased competitiveness.

In the same way, competition over energy resources
1.7
could lead to heightened political tensions and even threaten
the peace and stability of certain regions, a threat which could
spread easily through international terrorism.

Accordingly, an action plan was published which aimed to
strengthen energy efficiency within the European Community,
with the following objectives:

— to draw attention to energy efficiency,

— to put forward joint measures and action within the frame-

work of the Kyoto agreements,

— to clarify the respective roles of the Community and the

Member States,

— to realise the potential for improving energy efficiency, the
objective being to achieve a reduction of 1 % per annum in
energy intensity, a cumulative objective considered to be
feasible,

1.8
Lastly, the reasonable, efficient and economic use of
energy resources is a vital stabilising factor for our planet and
for future generations.

— to promote new technologies.

1.9
The EESC believes that the Green Paper on Energy Effi-
ciency: Doing More with Less raises a number of relevant ques-
tions and proposes realistic courses of action. It fully supports
the plan to reduce energy consumption by 20 % and feels that
it is vital not only to quickly reach the objective of a 1 %
annual reduction in energy consumption but to also set an
effective reduction target of 2 % as part of a second phase.

1.10
It believes that voluntary agreements with the large
economic sectors undoubtedly represent an effective solution,
and one which is preferable, where possible, to restrictive regu-
latory measures.

2.1 The situation five years after

The one percent objective remains an objective to be reached
but a number of legal instruments have been put into place;
agreements on objectives have been signed with various
economic sectors; a wider discussion has been initiated by the
Commission or at the Council's request. The Kyoto agreements
have come into effect; objectives have been outlined for the
development of renewable energy. The objective to reduce the
energy intensity will probably not be realised straight away, but
will rather take place sector by sector, on a gradual basis.

As the two sectors with the largest energy consumption, the
transport and construction industries must be the focus of
intense efforts and the search for innovation.

2.1.1 L e g a l i nstr u me nts

The continued and gradual introduction of efficient innovations
in the field of energy efficiency responds to the needs of both
consumers and industry. The European Union and the Member
States must become strongly involved in convergent policies
aimed at promoting energy efficiency, the exchange of best
practices, the distribution of the best technologies as well as
information and incentive campaigns
for households and
consumers.

2. Introduction

In 2000, the Commission had stressed that there was an urgent
need to promote energy efficiency more actively, both at EU
level and in the individual Member States. This need was
affirmed in the light of the aims adopted under the Kyoto
agreements, as well as in view of the need to provide a more
viable energy policy for a continent that has a high resource
dependency, and to work to ensure the safety of its supply.

Certain instruments have been adopted, others are in the
process of being adopted; some are specific, whilst others have
a broader scope: Regulation on a Community energy efficiency label-
ling programme for office equipment (1), Directive on the energy
performance of buildings (2), Directive on the promotion of cogenera-
tion (3), Proposal
for a Directive on energy end-use efficiency and
energy services (4).

Furthermore, the agreements negotiated with certain economic
sectors establish norms for minimum efficiency; these voluntary
agreements represent an alternative to drawing up new legisla-
tion.

We must ensure, however, that this does not produce a tangled
increase in
web of overlapping legislation with a further
unclear bureaucratic rules, which would act as an economic
hindrance and be detrimental to the objective of improved effi-
ciency in the energy sector.

(1) Regulation (EC) No 2422/2001, OJ L 332, 15.12.2001.
(2) Directive 2002/91/EC, OJ L 001, 4.1.2004.
(3) Directive 2004/8/EC, OJ L 52, 21.2.2004.
(4) COM(2003) 739.

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2.1.2 A b r oa de r di scu ssi on

At the same time, the European Union has launched a broader
discussion, notably through a number of strategies, such as the
sustainable development strategy adopted by the Gothenburg
European Council in 2001, which was to be renewed by the
end of 2005; unfortunately this has not yet happened. Other
strategies worthy of mention include the strategies on recycling,
the sustainable use of natural resources and urban develop-
ment, which include energy-based aspects.

with less’. This document appeared after both the publication
of the Proposal for a Directive on Energy End-Use Efficiency
and Energy Services and the parliamentary debates on this
proposal, and followed on from the request made to the EESC
for an exploratory opinion on energy efficiency. Given that
Green Papers usually precede texts of a legal nature, this order
of events may seem to be rather disconcerting; however, the
scope of this Green Paper is actually broader than that of the
proposed Directive. The EESC's exploratory opinion may be
considered to be a contribution to the consultative work under-
taken by the Commission.

2.1.3 K yot o

The Kyoto Protocol became effective after ratification by the
Russian Federation but without
the United
States, which, for all that, is investing considerable amounts of
money into researching methods of reducing CO2 emissions.

the backing of

In this context, the Commission published a communication
entitled Winning the battle against global climate change and the
Spring European Council affirmed its intent
to give new
impetus to international negotiations.

2.1.4 T h e de v e lop me nt of r e ne w a ble e ne r g y

Policies and objectives have been outlined for the development
of renewable energy, particularly in the area of wind energy, as
well as beyond, in all fields of eco-technology.

The demand for energy continues to grow and the EU's energy
dependency remains high, which could have a heavy impact on
its already unsatisfactory economic performance given the very
rapid growth in global demand, particularly due to the expan-
sion of emerging economies such as China, India and Brazil.

Wider discussion and the implementation of a European energy
efficiency policy is therefore not simply a luxury, but a neces-
sity, for three reasons:

3.2
The Commission starts by noting that the demand for
energy is continuing to grow in spite of the fine words about
more rational use of energy, and believes that it is advisable ‘to
make a strong push towards a re-invigorated programme
promoting energy efficiency at all levels of European society’. It
considers that the EU could cut down on its current energy
usage by at least 20 %. The EESC is pleased with the stated
ambition of the Commission and the European Parliament to
diversify supply and set objectives. It believes that a worthwhile
initiative is being set up, one which should, moreover, lead to
job creation through the development of new technology.
Nonetheless, in the face of heightening global competition, it is
vital to ensure that the energy policies implemented do not
lead to any increase in energy costs, which would push up
production costs. Accordingly, CO2 emission certificates could
constitute a significant cost for high energy consuming sectors
(e.g. the cement industry) and encourage relocation. The socio-
economic repercussions of the measures outlined or imple-
mented must not be disregarded.

3.3
As is common practice with Green Papers, the Commis-
sion raises 25 questions on the options outlined in order to
structure the public consultation process. It sets out action to
be taken at EU, national, regional and local level, and, finally,
action through international cooperation, by referring to poli-
cies to be implemented and sectors concerned, all illustrated
with examples.

— need for sustainable development,

— economic necessity,

— need for political independence.

3.4
Surprisingly, certain issues have not been discussed in
spite of their significance. For example, the question of urban
and public lighting in general has not been mentioned; neither
have the issues of production using recycled products which, in
certain cases, is more energy efficient (metals, aluminium etc.),
or harnessing bio gas from landfills.

the issue of
The EESC's discussion will
‘energy efficiency,
sustainable development,
competitiveness and economic independence’ which reflects the
concerns outlined in the Green Paper.

therefore cover

the need for

3. The Green Paper on Energy Efficiency

3.1
On 22 June 2005, the Commission published a ‘Green
Paper entitled Green Paper on energy efficiency or Doing more

3.5
The aim of the Green Paper is to identify the bottlenecks
(e.g. lack of appropriate incentives, lack of information, lack of
training and lack of available financing mechanisms)
that
currently prevent the most cost-effective improvements from
being put into effect. The measures to be promoted are those
which can provide a net saving after taking account of the
necessary investment. Answers are expected to these questions
in the form of suggestions or examples that will help meet the
proposed objective. Following the Green Paper, an action plan
should be drawn up in 2006.

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that

the thorough implementation of all of

The Commission appears to be relatively optimistic as it
3.6
believes
the
measures taken after 2001 (Directive on the energy performance of
taken
buildings; Directive on the promotion of
together with the new measures, could lead to energy savings
of approximately 1.5 % of annual consumption, thus resulting
in 1990 levels of consumption.

cogeneration),

4. Energy efficiency: a need for sustainable development,

competitiveness and economic independence

An energy

chain exists which encompasses

4.1
the
producer, transporter, distributor and consumer. It is therefore
important to be active at all stages of the chain, from supply to
demand. Action could prove to be most effective at the two
ends of the chain: production and consumption.

As far as production is concerned, efficiency gains are

4.2
being regularly introduced into production methods.

4.2.1
Accordingly, the cogeneration of heat and electricity
seeks to recover energy that would otherwise have been
wasted; new technologies are also applied, allowing sources of
alternative energy to be used. In this way, the capture and
exploitation of mine gas can supply power for cogeneration
installations (e.g. at Freyming Merlebach in Lorraine). The heat
of blast furnaces can also be recovered and harnessed (tech-
nique used at Brescia, Italy).

In the Nordic countries, some heating and electricity cogenera-
tion units have been converted to wood power, and are behind
the development of a local wood industry.

Moreover, research into how to resolve problems such as the
clogging-up of installations and cases of abnormal combustion
should lead to an improvement in the performance of such
installations.

4.2.2
The recovery of biogas at landfill sites enables the use
of a source of energy that had previously been lost, whilst
combating the greenhouse effect at the same time. Such inno-
vation and recovery encourages the setting-up of installations
close to the consumer and helps reduce or avoid transport-
related energy losses.

4.2.3
In the case of electricity production, tangible efficiency
gains have been made in several sectors, such as the solar and
wind power sectors; similar gains are expected of all types of
new generation large conventional nuclear power stations.

4.3 With regard to consumption, energy-saving technology
is constantly being introduced in the various energy-consuming
sectors. The increase in the cost of electricity to the end user is
forcing the industry to adopt innovative techniques.

In the vehicle and transport sectors, innovation and
4.3.1
progress are having an effect on engine specifications,
fuel
quality and efficiency, and on tyre development. Vehicle energy
consumption has been improving for the last ten years, but it
must be acknowledged that this has been offset by an increase
in the number of vehicles. The increased use of bio-fuels is
encouraged by tax incentives e.g. by taxing bio-fuels at a
different rate to oil-based products (5).

The automobile industry has signed up to a voluntary agree-
ment with the EU to attain average CO2 emission levels of
140g/km f by 2008. The Parliament and the Council of the
European Union would like the ACEA to commit to an objec-
tive of 120g/km by 2010. At all events, if the agreement is
respected, private cars entering the market in 2008/2009 will
be consuming 25 % less fuel than in 1998.

In the case of

local authorities across
transport,
4.3.2
Europe are conducting urban transport policies designed to
improve the quality of public transport and reduce the use of
for example, every municipality
private vehicles.
must prepare an urban mobility plan and present
for
approval. In other cases, more coercive measures are being
adopted, such as urban tolls (e.g. in London).

In France,

it

4.3.3
One should promote the use of modes of transport
that are losing momentum, e.g. rail — whose share of the
freight market has continued to fall (-7 %) — and navigable
waterways. Nonetheless, it must be recognised that, in spite of
all the talk, there has hardly been any development in these
two key energy efficiency sectors, mainly because of the lack of
infrastructure and the high cost of installation or modernisation
(e.g. the Rhine/Rhone canal or the transalpine road-rail link).
To compound matters further, the construction of this type of
infrastructure often, rightly or wrongly, meets resistance from
environmental pressure groups as well.

4.3.4
Urban lighting management is also an area that is
seeing energy saving innovations. Network teleprocessing
systems enable monitoring of network operations in real time
as well as the regulation of electric current and the adjustment
of the volumes required in line with actual needs, leading to
energy savings for the local community.

Public lighting that uses less modern technology (mercury
vapour, for example) is often being replaced by high-pressure
sodium lights which are less powerful and less expensive.
White diodes, which do not use much energy, are also being
developed, as is solar energy. As for home lighting, low energy
consumption lamps are gradually gaining a place on the
market and are leading to a reduction in consumption. Certain
electricity providers offer customers discount vouchers for the
purchase of low-energy light bulbs (Italy).

(5) Council Directive 2003/96/EC OJ L283 of 27 October 2003
restructuring the Community framework for the taxation of energy
products and electricity.

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4.3.5
In the case of buildings, the application of the directive
on energy performance should soon start showing results. In
any case, insulation norms have led to considerable progress
being made in all new construction work; the same is true in
the glazing sector.

4.3.6
Several large industrial sectors such as the automobile
industry have also signed up to voluntary commitments to
improve the energy efficiency of their products which are,
moreover, subject to European product labelling standards. The
use of cogeneration units in industry is slowly developing. It is
worth noting that certain high-energy consumption sectors
such as the aluminium sector are also making not inconsider-
able energy savings thanks to their use of recycled products.

Based on the above examples,

it would appear that
4.4
energy efficiency has become a natural and worthwhile proce-
dure for economic players, particularly given the sustained
increase in the cost of energy. This leads to the conclusion that
voluntary action can be as effective as regulations over the
medium or long term.

5. Questions in the Green Paper

5.1 Question 1: How can one better stimulate European investment

in energy efficiency technologies?

The EESC believes that tax incentives can be effective in stimu-
lating investments but
in addition, energy efficiency
services used on a continual basis can increase the energy effi-
ciency of installations.

that,

Nonetheless, it feels that there are other voluntary and non-tax
measures which could also prove to be effective e.g. energy
saving awards, the sharing of ‘best available technology,’ the
organisation of internal campaigns to encourage businesses to
develop simple, daily routines
(automatic switching-off of
lights, monitoring of electric and electronic installations etc.) as
well as campaigns aimed at the general public. By the same
token, energy providers could encourage consumers and custo-
mers to adopt a responsible approach to consumption, e.g. by
promoting the use of low-energy light bulbs. This is also a
question of personal and group responsibility. An old Indian
proverb rightly states that, ‘we live in a world which we should
leave as an inheritance to our children.’
It would be thus
morally unthinkable to take an irresponsible attitude towards
future generations.

As far as using funds for research is concerned, this could
certainly have a multiplier effect as part of the partnership
between public and private research centres.

5.2 Question 2: Relevance of the emissions quota mechanisms for

energy efficiency

consume vast amounts of energy. Certain countries have in fact
already introduced energy saving certificates laying down obli-
gations for energy producers in the field of CO2 emissions and
energy saving. If no concrete action is taken, such producers
are taxed (in France at a rate of two centimes per KwH),
prompting them to launch customer initiatives to ensure that
energy saving takes place.

It is important to ensure that potential increases in energy costs
do not bring about any adverse socio-economic effects (relo-
cation); that being said, such increases must always be viewed
in the light of the risk of a major future energy crisis. What is a
cost today could ensure a gain in the future.
In the same
manner, the various mechanisms such as emissions certificates
or energy saving programmes must be assessed based on the
extent to which they encourage investment in clean and energy
saving technologies.

With regard to the plan to allocate CO2 emission certificates, it
is unfortunate that those installations that have already invested
in cleaner technologies which consume lower amounts of
energy are not treated any more favourably than those facilities
that have yet to make such efforts.

Furthermore, the allocation plans should take more account of
cogeneration, a process that the European Union is keen to
encourage.

5.3 Question 3: Usefulness of annual energy efficiency programmes
at individual Member State level, and comparison of these plans

If such plans have been implemented, they should be consistent
investments are not
with the investment cycles. In practice,
amortised over the course of one year, it is important, there-
fore, that plans take account of the necessary timings for imple-
mentation and amortisation.

These plans will only be capable of outlining objectives; none-
theless, their comparison could be useful as an instrument for
spreading effective, best-performing practices.

5.4 Question 4: Usefulness of developing tax instruments

Tax instruments can be effective provided that they are well
chosen and targeted. Nonetheless, the implementation of tax
instruments is clearly a sensitive issue, and is primarily a matter
for national administrations, and one must respect the princi-
ples of subsidiarity and the administrative freedom of local
authorities. The modification of VAT rates, in turn, requires a
unanimous decision at Council level.

This policy could possibly be used to set up domestic projects
in the housing and transport firm sectors which, as we know,

The systematic use of eco labels is simpler and could turn out
to be effective.

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5.5 Question 5: Develop more environmentally friendly state aid
rules by encouraging eco- innovation and productivity improve-
ments

To achieve this, the sectors that consume the most energy —
housing and transport — should be targeted. Nonetheless, it is
important to ensure that state aid does not unfairly distort
competition.

5.6 Question 6: Public authorities as an example

The EESC believes that
the inclusion of energy efficiency
criteria in public calls for tender should be encouraged, as
should the performance of energy efficiency reviews in public
buildings. Perhaps the concept of ‘best energy bidder’ should be
developed?

In any case, an assessment of the work carried out on public
buildings would be necessary to determine the relation between
cost and effectiveness.

5.7 Question 7: Relevance of energy efficiency funds

Energy efficiency funds could be important instruments for
more efficient energy use and for greater energy savings. With
the help of such funds, private investment could be made
easier and energy companies could provide their customers
with options for lower energy use, thus speeding up develop-
ment of energy efficiency services, and providing a stimulus for
R&D and for timely market placement of energy efficient
products. They are thus a useful accompaniment to the intro-
duction of emissions trading.

On the other hand, more consistent consideration should be
given to taking account of energy efficiency in the cohesion
and regional development funds.

There is no doubt of the urgent need to increase loans for
research and development, following the example of the USA,
which has invested considerable public funds in energy tech-
nology.

5.8 Question 8: Energy efficiency of buildings

Whilst it is true that the sector is strategic, with potentially
considerable energy efficiency gains, one must ensure that
property owners and tenants are not
faced with charges
beyond their means, or an administrative burden that is too
unwieldy or complex. One must therefore make sure that the
Member States do not produce texts whose application is diffi-
cult to monitor due to their complexity and which will only be
thereby unfairly distorting
applied by certain businesses,

competition. In the case of buildings, energy performance is a
global issue but state organisations intervene on an individual
basis. Accordingly, a structured approach is needed. In practice,
it will be the architect, accompanied by a consultancy agency
that will be responsible for the implementation of energy
norms, which is why there is a need for clear and simple texts
to ensure their effective implementation.

Any extension in the directive's scope of application may only
be considered following an assessment of the application of the
2001 directive and, in particular, a lowering of energy thresh-
olds, currently set at 1 000 m2. It is also worth stressing that
the revision of thermal regulations every five years does not
allow much time for implementation by a sector whose busi-
nesses are often small
in size. A period of 7 years would
certainly be more realistic so as to give businesses the time to
implement these regulations without being forced to apply new
regulations even though the old ones are barely effective.

It would be useful to assess the measures taken by Member
States and to exchange best practices.

5.9 Question 9: What incentives could be given to property owners

to improve energy efficiency?

There is no doubt that an incentive-based tax policy is prefer-
able, e.g. a reduction in property tax for property owners based
on their investments in energy efficiency. In any event, such
intervention should remain at national level.

It would in any case be very useful to see the development of a
market for energy services as already exists in certain EU coun-
tries, particularly in Scandinavia and France.

5.10 Question 10: Improving the performance of energy-consuming

products for household use

Feedback should be used as part of the integrated policy for
products.

— This aim should be linked to the implementation of the
directive on the eco-design of energy consuming products.

— The establishment of voluntary commitments across the

industry should be assessed.

The Energy Label is compulsory for certain domestic appliances
(refrigerators,
freezers, washing machines, dishwashers, elec-
trical bulbs). It could be extended to cover more appliances
(e.g. domestic electric ovens and microwave ovens). It could
also cover equipment in other areas that use a lot of energy,
such as in heating and airconditioning (e.g. domestic gas
boilers, circulator pumps and airconditioning split-units).

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5.11 Question 11: Improving the energy efficiency of vehicles

One should await
commitment to the Commission.

the outcome of

the ACEA's voluntary

In any case,
the automotive industry is making constant
progress in introducing innovations in vehicle energy effi-
ciency, engine specifications and reduced consumption.

The question remains of the number of ageing cars on the
road, which often has a social aspect. Nonetheless, it would be
useful to encourage the purchase of new cars, for reasons of
both safety and energy efficiency. Specific measures could
perhaps be introduced in the form of loans to ensure that low-
income households do not lose out.

Lastly, as stressed by the EESC in its report on sustainable
transport, the taxation of various modes of transport remains
highly unequal and penalizes certain forms of transport.

5.14 Questions 14 and 15: Role of electricity and gas providers in
offering an energy service and introduction of white (energy effi-
ciency) certificates

It is questionable whether it is indeed in the interest of the
energy provider to promote methods of reducing consumption.
For this reason, a number of Member States have introduced
energy efficiency certificates.

All those involved in the energy chain must be taken into
account
in energy consumption are to be
achieved. A voluntary code of good conduct would be useful.

reductions

if

Naturally, a more accurate definition is needed of what
is
understood by the concepts of an energy efficiency service and
an energy performance contract.

In the case of white energy certificates, it would be useful to
assess how they are used in those Member States where they
have been introduced before they are applied across the whole
of the EU.

5.12 Question 12: Public information campaigns

cost-effective energy efficiencies

5.15 Question 16: Stimulating industry in technologies that generate

To be successful, national campaigns should be favoured over
European ones, particularly those specifically aimed at house-
holds. Awareness-raising campaigns for children would be
useful for ensuring they acquire good energy-saving habits at
an early age (e.g. the simple act of switching off the light when
leaving the room). Accurate information for consumer would
also be very useful
to enable them to choose the energy
consuming appliances that are best suited to their needs.

As a number of national campaigns have already been held, an
exchange of experiences could be organised.

How effective are existing measures (carbon, voluntary commit-
ments)?

Voluntary commitments should be favoured over coercive
measures. In any case, measures have already been taken in
many European countries, in cases where they are economically
and financially viable. Any action should, therefore, focus on
measures that need incentives or aid; if this is not done, a wind-
fall effect will be produced.

5.16 Question 17: A balance between modes of
increasing transport by rail and inland waterway

transport and

5.13 Question 13: Efficiency of electricity transmission and distribu-

tion, promotion of cogeneration

Electricity production suffers losses at the transformation stage
(approximately 30 %) and during transport
(approximately
10 %). Transport-related losses could be reduced by cutting
transport time.

Savings could also be made by improving how demand is
managed, particularly for large energy users. It would be useful
to develop agreements between users and producers to manage
demand more effectively.

The deregulation of the market should enable improved effi-
ciency thanks to emulation between distributors; nonetheless, it
is too early to assess this process.

In the case of cogeneration, one should carefully define the
status of cogeneration-derived electricity; moreover, the para-
meters of the cogeneration directive appear to be hard to
reach, all the more so given that they are interpreted in various
ways across the Member States.

sector often lacks

The rail
flexibility and the waterways
network is not yet fully developed and has too many bottle-
necks. More investment is needed in the interoperability of the
various modes of transport; the external costs must be inte-
grated; and the emphasis must be shifted to those modes with
more scope for energy efficiency. Allowing for regulated rather
than pure and simple competition would more accurately
reflect
the sector and could make it more
dynamic.

the needs of

5.17 Question 18: Financing infrastructure in the trans-European

transport network (6)

A number of large trans-European networks have been slow in
coming. The public finance crisis across Europe has often
delayed their implementation. Public-private partnerships must
also be encouraged. The EESC recommends, as a priority,
investing EU money in the expansion of forms of transport
which have proved to be especially energy efficient.

It is also to be hoped that encouragement will be given to
public-private partnerships.

(6) OJ C 108, 30.4.2004.

C 88/60

EN

Official Journal of the European Union

11.4.2006

5.18 Question 19: Transport regulatory measures or standards

5.21 Question 22: Energy

efficiency project

financing schemes

Priority should be given to technological innovations and to
that have been defined jointly by
establishing standards
industry and public authorities.

5.19 Question 20: Should public authorities be obliged to purchase

energy efficient vehicles?

The idea of imposing such obligations goes against the grain of
the principles of subsidiarity and the administrative freedom of
local authorities. That being said, numerous public authorities
are already making these kinds of purchases. The standards
governing calls for tenders could help encourage this practice.

That being said, the proposal for a directive on the promotion
of clean road transport vehicles [COM(2005) 634] intends to
extend this practice by introducing clean vehicle quotas into
the calls for tender of public authorities.

5.20 Question 21: Infrastructure charging for transport and external

costs (pollution, accidents etc.)

The EESC has on several occasions expressed itself in favour of
taking account of external costs and has called on the Commis-
sion to submit an appropriate plan. It is therefore advisable
that an assessment be made of the measures adopted up to
now in the various countries in order to be able to measure
precisely how effective they are.

Brussels, 14 February 2006.

managed by energy efficiency companies

Whilst such initiatives have proved successful, it is important
to try and make them more widespread and to provide support
for them throughout the EU.

5.22 Question 23: Energy efficiency issues in the Union's relation-

ships with third countries

The cost of energy will make energy efficiency a much more
higher profile issue than it has been in the past. International
finance institutions should integrate this concern into their
technical and financial assistance.

5.23 Question 24: Use of European know-how in developing coun-

tries

Existing measures should be simplified and made more effective
(CDM,JI) (7).

5.24 Question 25: Possible negotiation of tariff or non tariff advan-

tages within the WTO for energy efficient products

It is not very probable that the European Union will be able to
make such measures acceptable within the WTO as such
moves could be seen as being likely to discriminate against
developing countries.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

(7) (CDM=Clean Development Mechanism, JI=Joint Implementation).