Opinion of the Committee of the Regions on The energy package
Date: 2007-10-10
Institutions: European Committee of the Regions
Subjects: energy consumption, energy policy, energy saving, energy technology, international cooperation, liberalisation of the market, local authority, renewable energy

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III

(Preparatory Acts)

COMMITTEE OF THE REGIONS

71st PLENARY SESSION 10 AND 11 OCTOBER 2007

Opinion of the Committee of the Regions on ‘The energy package’

(2007/C 305/01)

THE COMMITTEE OF THE REGIONS

— points out that local and regional authorities make a decisive contribution to the success of European
initiatives. European law is implemented at local and regional level;
it is down to leaders on the
ground and to the public to act in such a way as to influence energy consumption tangibly and
sustainably;

— believes that energy policy and climate protection policy are closely interrelated and must be coordi-
nated, given that 80 % of CO2 emissions in Europe come from the production of energy. It is there-
fore important that measures proposed for climate policy are taken on board in the field of energy
and vice versa. At the same time, energy policy focused on the environment and on efficiency also
forms part of climate policy;

— supports the Commission's efforts to remove forthwith administrative obstacles, unfair network access
conditions (e.g. discrimination against suppliers of renewable energy) and complicated procedures;

— calls on the Commission to take appropriate measures to prevent market concentration and to encou-

rage the diversity of market participants;

— supports the aim of achieving an energy saving of 20 % in the EU by 2020 through increased energy

efficiency. The Committee would like this target to be binding;

— stresses that energy efficiency should be the centrepiece of European energy policy and be given the

highest priority in the debate;

— doubts that CCS (Carbon Capture and Storage) technologies can be considered as a long-term solu-
tion, as they significantly reduce the efficiency of the plant in question and, moreover, are not espe-
cially economically efficient from today's perspective. From a global viewpoint, however, a CCS
strategy could be an interim solution.

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Reference documents

Communication from the Commission to the European Council and the European Parliament: An Energy
Policy for Europe

COM(2007) 1 final

Communication from the Commission to the Council and the European Parliament: Prospects for the
internal gas and electricity market

COM(2006) 841 final

Communication from the Commission to the Council and the European Parliament: Sustainable power
generation from fossil fuels: aiming for near-zero emissions from coal after 2020

COM(2006) 843 final

Communication from the Commission to the Council and the European Parliament: Biofuels Progress
Report — Report on the progress made in the use of biofuels and other renewable fuels in the Member States of the
European Union

COM(2006) 845 final

Communication from the Commission to the Council and the European Parliament: Priority Interconnection
Plan

COM(2006) 846 final

Communication from the Commission to the Council, the European Parliament, the European Economic
and Social Committee and the Committee of the Regions: Towards a European Strategic Energy Technology
Plan

COM(2006) 847 final

Communication from the Commission to the Council and the European Parliament: Renewable Energy
Road Map — Renewable energies in the 21st century: building a more sustainable future

COM(2006) 848 final

Communication from the Commission to the Council and the European Parliament: Green Paper follow-up
action — Report on progress in renewable electricity

COM(2006) 849 final

Rapporteur: Mr Bernd VÖGERLE, Mayor of Gerasdorf bei Wien (AT/PES)

Policy recommendations

THE COMMITTEE OF THE REGIONS

Introduction

stresses the importance of energy in underpinning modern
1.
life. Interruptions to and bottlenecks in supply therefore have
wide-ranging effects and cause major economic damage. The
common European energy policy, and its goals of security of
is therefore very
supply, sustainability and competitiveness,
important to local and regional authorities. Meeting these goals
requires a balanced energy mix;

2.
points out that local and regional authorities make a deci-
success of European initiatives.
sive
contribution to the
European law is implemented at local and regional level; it is
down to leaders on the ground and to the public to act in such
a way as to influence energy consumption tangibly and sustain-
ably;

3.
particular

therefore calls on the responsible European institutions, in
the

to take proper account of

the Commission,

significant role of
local and regional authorities in European
energy policy when implementing the energy package in prac-
tice;

4.
believes that energy policy and climate protection policy
are closely interrelated and must be coordinated, given that 80 %
of CO2 emissions in Europe come from the production of
energy. It is therefore important that measures proposed for
climate policy are taken on board in the field of energy and vice
versa. At the same time, energy policy focused on the environ-
ment and on efficiency also forms part of climate policy;

5.
points out that consumers making informed choices play
a key role in implementing European goals. Consumers should
therefore be at the heart of the debate. Socially disadvantaged
sections of the population are hit especially hard by any increase
in energy prices. Publicly-funded assistance should therefore be
invested, with sustainability and a coherent climate policy in
mind,
in energy efficiency and awareness-raising measures
rather than in purely financial support;

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Internal market

6.
points out that the expectation that liberalised electricity
and gas markets would lead to lower prices for consumers
and the dissolution of energy supply monopolies has not
been fulfilled in all Member States. Furthermore, believes that
under-investment in power stations and networks, in particular
an under-investment
supplies and
networks,
is jeopardising security of supply. If current trends
continue, supply bottlenecks are expected in the future;

in renewable and local

7.
therefore calls on the Commission to create incentives for
producers and network operators to invest in the construction
of power plants and upgrading network infrastructure (as was
the case before liberalisation). A possible way into this direction
could be the establishment of local and regional energy produc-
tion plans, drawing on data available at local and regional level;

supports the Commission's efforts to remove forthwith
8.
administrative obstacles, unfair network access
conditions
(e.g. discrimination against suppliers of renewable energy) and
complicated procedures;

favours unbundling, where a separation under company

9.
law, supported by a strong regulator is seen as sufficient;

15.
stresses that energy efficiency should be the centrepiece
of European energy policy and be given the highest priority in
the debate;

16.
calls on the relevant European institutions, and above all
the Commission, to ensure that an appropriate framework is
provided in areas such as the following:

— fuel-efficient vehicles;

— high standards (in particular a stand-by setting that can be
switched off) and better labelling for (household) appliances;

— the lowest possible total energy consumption or the passive

house standard in new buildings;

— the internalisation of external costs by means of consistent
cost calculations across the whole life cycle/supply chain of
products and services for public procurement;

— EIB loans for local and regional authorities' energy efficiency

programmes;

— aid for energy efficiency under the block exemption regu-

lation.

17.
points out
regional and local
European initiative:

that many measures are implemented at
level and contribute to the success of the

10.
calls on the Commission to take appropriate measures to
prevent market concentration and to encourage the diversity of
market participants (including municipal services);

— regional development taking into account energy aspects;

considers that the upgrading of transnational networks
for

local and regional authorities,

11.
strengthens the hand of
example when purchasing energy;

12.
rejects the idea of setting up new administrative struc-
tures such as a European ‘energy regulator’, as national regula-
tors are capable of achieving the objectives proposed by the
Commission and confirmed by the European Council;

calls on the Commission to structure the emissions
13.
trading mechanism in such a way that power
stations
would receive only as many certificates under the allocation
plan as correspond to the production of the planned amount of
power and heat in a gas turbine CHP power station. This would
be a clear signal
in favour of the objective of boosting the
energy-efficiency of electricity generation;

Energy efficiency

— incentive programmes

efficiency measures
(e.g. building renovation, replacement of obsolete lighting,
replacement of household appliances);

energy

for

— incentive programmes for renewable energy sources;

— establishing building standards that go above and beyond

the buildings directive;

— spatial planning;

— traffic management (local public passenger transport, cycle

paths);

— parking management,

in order to reduce car journeys in
towns and encourage carpooling and more environmentally-
friendly cars;

— energy advice for businesses;

— publicity, campaigns, awareness raising (e.g. specific informa-
tion on how to save energy at home, in vehicle usage, etc.);

— leading by example (energy saving by public bodies) and

training of in-house staff;

14.
supports the aim of achieving an energy saving of 20 %
in the EU by 2020 through increased energy efficiency. The
Committee would like this target to be binding;

— public procurement
goods and services.

to improve the energy efficiency of

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calls for more EU resources,

18.
for example under the
Intelligent Energy for Europe (IEE) programme, to be made avail-
able for the exchange of best practice at regional and local level;

Biofuels

19.
requests the Commission to set the target for energy effi-
ciency on an aggregate level (i.e. energy intensity of the whole
economy). This would give Member States and regions the flex-
ibility to achieve the target using a wider range of measures,
including measures aimed at the energy consumption of appara-
tuses and the industrial structure of the (regional) economy;

Renewable energy sources

20.
supports the binding target of 20 % of
consumption coming from renewable sources by 2020;

total energy

the

highlights

importance of

21.
local
socio-economic
energy sources and their importance to security of supply and
transmission and suggests that promotion of
efficiency of
renewable energy sources should be appropriate to the respec-
tive geographical, climatic and economic conditions; emphasises
in this respect the key role local and regional authorities can
play in promoting and procuring local
renewable energy
sources;

22.
advocates renewable energy targets including the heating
and cooling sector. Combined production of electricity and
heat/cooling has a key role to play here;

observes that sustainability must be at the forefront of
23.
every measure. Countries that invested in biomass at an early
stage are already meeting a significant proportion of
their
energy needs through this source. However, the problem often
arises that the demand can no longer be met exclusively by
locally available energy (usually wood) and that biofuels need to
be transported long distances to their destination. When this is
the case, the alternative clearly becomes less sustainable. Thus
there is a need to consider other modes of transport which are
less energy-consuming;

24.
takes the view that Member States which have only
limited possibilities to produce energy from renewable sources
should be given the option of achieving their target on renew-
able energy through trade, either within a EU-wide green-energy
certificate system, or through bilateral contracts with other
States which have a more abundant supply of renewable energy.
The aim here is to reduce the overall costs of meeting the
targets on renewable energy;

requests the Commission and the Member States to
25.
make it compulsory to hear the views of
local and regional
authorities when drawing up national action plans to promote
renewable energy sources;

supports the binding target of 10 % of total EU fuel
26.
consumption coming from biofuels by 2020, provided that
production is sustainable;

stresses how important the diversity of energy sources

27.
and types of biomass will be;

considers it especially important

that climate policy
28.
should be seen in an international perspective, and that different
biofuels should be promoted on the basis of their environmental
and climate performance, using a lifecycle approach that takes
account of production methods, transport, etc. In addition to
promoting efficient European production, imports from non-EU
countries could be considered of secondary importance. Envir-
onment-friendly and energy efficient production of biofuels
should be promoted, regardless of the type of biofuel and that
of the plants being processed;

29.
suggests that promoting the production of biofuels in
third countries runs counter to the aim of reducing dependency
on energy imports and creates new kinds of dependency,
and therefore stresses that imports from non-EU countries must
be of secondary importance. When importing energy, sustain-
ability and energy efficiency must be taken into account from a
life-cycle perspective for different biofuels;

30.
points out the importance of producing biofuels in a
sustainable manner in order to avoid a loss of biodiversity. It
must be avoided that large energy crop ‘monocultures’ (concen-
trated growth of a single crop over wide areas) excessively
disrupt the local ecosystem;

31.
stresses that a sustainability code must be observed when
importing raw materials for biofuels. By imposing relevant
requirements on its trading partners, the EU could help support
ecologically and socially just business practices that avoid loss of
important habitat. The process of international negotiations and
the development of an appropriate regulatory framework should
commence immediately;

The use of coal

32.
doubts that CCS (Carbon Capture and Storage) technolo-
gies can be considered as a long-term solution, as they signifi-
cantly reduce the efficiency of the plant in question and, more-
over, are not especially economically efficient
from today's
perspective. From a global viewpoint, however, a CCS strategy
could be an interim solution;

Research into and the development of CCS technology

33.
should be stepped up;

calls

34.
for CCS
commercially available,
approving new coal-fired power stations;

technology,
to be

as

is
taken into account when

soon

as

it

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Energy technology

The social dimension

35.
notes that current efforts in the energy technology sector
are not sufficient. Furthermore, the system is very sluggish,
which means that it often takes decades to implement new tech-
nologies;

36.
calls for more resources to be devoted to energy tech-
nology under the Research, Technology and Demonstration
Framework Programme and under Intelligent Energy Europe.
The demonstration of new technologies at regional and local
level has a particular contribution to make towards raising
public awareness, as well as raising the appropriate level of skills
in the workforce. It is important that support for R & D should
be available to smaller private commercial players as well as to
the public sector;

37.
emphasises that the development of cutting-edge tech-
nology also creates export opportunities. This may lead to the
creation of many new jobs;

International cooperation

that

feels

only wide-ranging

comprehensive
38.
cross-border cooperation together with energy policy and
climate protection agreements to achieve a sustainable environ-
ment, increased energy efficiency and economical use of energy
will succeed in both the short and long term, and benefit
present and future generations living in and outside of the EU;

and

calls on the Commission to step up its efforts to ensure
40.
that best international energy efficiency practices are used in the
EU and that European initiatives, together with EU efforts and
best practices are disseminated, including outside the EU;

41.
stresses that the ability of local and regional authorities
to influence the pricing structure of energy is very limited and
only exists in a few areas. Opportunities arise where they are
able to use their own energy resources on a large scale, provided
that the costs of these are competitive with other energy sources
in a liberalised market.
In addition to this, attempts can be
made, through awareness-raising measures, to increase public
acceptance of the higher costs resulting from the use of renew-
able energy. Ongoing benefit payments (fuel and heating bene-
fits) are to be questioned, as these do not generally encourage
consumer to change their behaviour. Instead, the Committee
advocates support for energy efficiency measures, which lead
both to lower costs and to an improved quality of life. This
support should include access to energy use information for
consumers (smart meters) and information on area energy use
for local and regional authorities to target efficiency measures
and support in order to avoid hardship for those on limited
incomes (fuel poverty);

39.
demands that under no circumstances should technical
assistance to third countries be provided in such a way that
products and production methods that are outdated or banned
in the EU are exported to non-member countries, whether for
payment or not. It is therefore important to ensure that such
criteria apply at all levels (EU, national, regional, local) and to all
institutions (including the EIB);

42.
notes with concern the impact of increased demand for
energy-producing raw materials, which is causing dispropor-
tionate increases in the price of food. A comprehensive study of
the energy market and of the expected demand for raw mate-
rials for biofuels is therefore necessary, not least with a view to
forecasting the impact on food markets right down to the small
regional level.

Brussels, 10 October 2007.

The President

of the Committee of the Regions

Michel DELEBARRE