Opinion of the European Economic and Social Committee on Towards a common energy policy
Date: 2008-04-23
Institutions: European Economic and Social Committee
Subjects: EU policy, approximation of policies, energy diversification, energy policy, energy research, energy resources, energy supply, energy technology

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Opinion of the European Economic and Social Committee on the ‘Proposal for a Directive of the
European Parliament and of the Council on roll-over protection structures of wheeled agricultural
or forestry tractors (static testing)’ (Codified version)

COM(2008) 25 final — 2008/0008 (COD)

(2008/C 211/04)

On 7 March 2008 the Council of the European Union decided to consult the European Economic and
Social Committee, under Article 95 of the Treaty establishing the European Community, on the

Proposal for a Directive of the European Parliament and of the Council on roll-over protection structures of wheeled
agricultural or forestry tractors (static testing) (Codified version).

Since the Committee unreservedly endorses the content of the proposal and feels that it requires no
comment on its part, it decided, at its 444th plenary session of 22 and 23 April 2008 (meeting of 22 April),
by 143 votes and 6 abstentions, to issue an opinion endorsing the proposed text.

Brussels, 22 April 2008

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

Opinion of the European Economic and Social Committee on ‘Towards a common energy policy’

(2008/C 211/05)

On 27 September 2007, the European Economic and Social Committee decided to draw up an opinion,
under Rule 29(2) of its Rules of Procedure, on

Towards a common energy policy.

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 4 April 2008. The rapporteur was
Mr Buffetaut.

At its 444th plenary session, held on 22 and 23 April 2008 (meeting of 23 April), the European Economic
and Social Committee adopted the following opinion by 173 votes, with 13 abstentions.

1. Conclusions and recommendations

resources and tackle climate change, since it is large enough to
have a strong political influence in international negotiations.

The question of energy supply,

the diversification of
1.1
energy sources and the development of
renewable energy
sources is fundamental to the future of Europe, the global equili-
brium and combating climate change.

1.3
It is pleased to note that Title XX on energy has been
incorporated into the draft Lisbon Treaty, since this will rein-
force the legal basis for the European Union's activities in this
area.

1.2
The EESC believes that the European Union provides an
appropriate platform for bringing pressure to bear in the world-
wide confrontation arising from the race to secure energy

1.4
and development
sustainable environment, and of

The EESC emphasises the crucial importance of research
in the field of sustainable energy and a
the proper allocation of

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resources. Good judgement is imperative when studying the
promotion of energies and energy-saving and emission-reduc-
tion technologies that are not expected to achieve economic
balance, in order to avoid wasting public funds subsidising tech-
nologies which have no future. Resources for research should be
channelled instead towards technologies deemed by the scientific
community to have a promising future, such as technology for
minimising or capturing greenhouse gas emissions, energy effi-
ciency, clean coal, vehicle propulsion using electricity or other
alternative means,
fuel cells, solar energy, reclaiming energy
from waste, nuclear fusion and nuclear waste disposal.

It also highlights the importance of energy efficiency of

1.5
equipment and buildings.

1.6
It believes that a genuine purchasing policy should be
introduced at European level in order to cope with the pressure
exerted by producers who are often highly organised, and
recommends that policies and positions on energy be coordi-
nated at EU level within international bodies such as the WTO,
UN, NATO and OECD.

It stresses the importance of diversifying supply sources
1.7
and recommends that a constructive attitude tempered with
caution be adopted as regards partnerships with Russia and the
Caucasian and Central Asian republics.

1.8
It insists that it would be appropriate to examine the
possibility of reviving nuclear energy programmes in countries
where there is a consensus on this point and stepping up
It also
research into the reprocessing of waste material.
encourages the development of research into nuclear fusion
under Euratom's Seventh Framework Programme for Research
and ITER.

1.9
It believes that there is a need for greater cooperation
and coordination in energy policy and in representation and
action in international bodies, that the neighbourhood policy
should be taken further as regards energy and that thought
must be given to introducing a common energy policy in due
course, possibly based on its own institutions. It believes that
the
energy
throughout the EU reflects people's interest in this field. This
situation coincides with the new common energy policy laid
down in the draft Treaty of Lisbon and could be the strategic
opportunity for it to be accepted and developed.

in commercial

in renewable

interest

surge

2. Introduction: the reasons for a European energy policy

2.1 A difficult geostrategic situation

2.1.1
increase in global energy demand by 2030.

The International Energy Agency anticipates a 55 %

2.1.2
for solid
The European Union is largely dependent
fossil fuels, petroleum products and natural gas and this depen-
dency is set to increase in coming years. The EU is 80 % depen-
dent for fossil fuels, and its energy imports are expected to rise
from 50 % to 70 % by 2030.

Exhaustion of known oil reserves is to be expected
2.1.3
from 2050, while other resources which are not currently
exploited will become economically exploitable in the future
owing to growing demand and technical progress.

2.1.4
The transition to other forms of energy is inevitable
but will be difficult. The world has, however, already experi-
enced similar changes before, particularly in the 19th century
when fossil fuels from biomass (primarily wood) gave way to
coal, then oil. However, our methods of harnessing renewable
energy are not yet sufficient to cause a shift comparable to that
experienced in the 19th century.

2.1.5
The difficulties are due to a number of factors: energy
density, the land surface needed to produce biofuels (at the
expense of other, mainly agricultural, activities), the intermittent
and unpredictable nature of the inputs (wind, solar energy, tides)
which requires thorough planning for storage capacities and the
geographical distribution of
renewable energy sources. As
regards nuclear energy, even if we were to launch a very ambi-
tious policy of rehabilitating old and building new power plants,
the global nuclear industry would still not be able to satisfy
demand.

2.1.6
Europe is characterised by major energy dependency. It
currently imports 50 % of its energy requirements and this
dependency is set to reach 70 % by 2030. Europe would thus
be 90 % dependent for oil and 70 % dependent for gas!

2.1.7
In March 2006,
disturbing report, which highlighted:

the European Council produced a

— the difficult situation of the gas and oil markets,

— the growing dependency of the European Union,

— high and volatile energy prices, which have increased still

further since then,

— the growing global demand for energy,

— risks to security of supply,

— threats connected to climate change,

— slow progress in energy efficiency and the use of renewable

energy,

— the need to increase transparency in the energy markets and
to pursue the integration and interconnection of national
energy markets in the context of the liberalisation of the
energy market,

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— limited coordination between energy players although large

investments are needed in energy infrastructure.

This disturbing report has inspired the proposals set out in the
new energy package which is to some extent a response to the
challenges which must be met.

European leaders must

therefore deal with two
2.1.8
problems: dwindling traditional primary resources and the
problematic geographical situation of those resources, most of
which are in politically unstable countries which could use their
resources to bring pressure to bear on dependent countries, as
has already occurred.

2.2 The European Union: a suitable framework?

2.2.1
Every Member State of the European Union is affected,
but evidence suggests that fragmented individual action is a
handicap when confronting producers who are often organised.

It is therefore in the Member States'

2.2.2
interests to act
together and use the European Union as a lever to frame a
common energy policy based on and with the objective of
better management of consumption and diversification of the
sources of supply.

2.2.3
The European Union has both the appropriate scale
and institutional instruments. It is capable of developing trans-
national policies, coordinating national policies, bringing about
greater consistency at European level as regards energy and
finally, developing an energy policy in respect of third countries.

Finally, let us add that after the rejection of the Draft
2.2.4
Treaty establishing a Constitution for Europe and in line with
the Treaty of Lisbon, a European energy policy might be a
uniting factor and provide proof of the practical usefulness of
the European Union.

opening-up of the markets and the end of public monopolies
have occasionally given rise to concerns regarding energy prices,
but in fact, the price rises which have been noted are primarily
the result of the rising global demand for limited and sometimes
dwindling resources.

To this should be added Commission documents which
2.3.5
are not strictly speaking legislative proposals but rather ‘soft
law’: the Green Paper on a European strategy for the security of
energy supply (28 November 2000),
the Communication on
Towards a European strategy for the security of energy supply (26 June
2002), the Green Paper on Energy efficiency or doing more with less
(22 June 2005), the action plan for the period 2007-2012
(19 October 2006) and the Communication on the Global
Energy Efficiency and Renewable Energy Fund (6 October 2006).

2.3.6
Therefore, the European Union has examined energy-
related issues in considerable depth but its action has rested on
a rather uncertain legal basis, i.e. Article 308 EC, the ‘flexibility
‘If action by the Community should
clause’, which states that:
prove necessary to attain, in the course of the operation of the
common market, one of the objectives of the Community, and
this Treaty has not provided the necessary powers, the Council
shall, acting unanimously on a proposal from the Commission
and after consulting the European Parliament, take the appro-
priate measures’.
It has also approached the issue indirectly,
through the use of internal market, competition and environ-
ment rules. The process was, at least in appearance, more tech-
nical and legal than political.

2.3.7
This is precisely why, in view of the pre-eminence of
energy in the day-to-day life of Europe's people and in the
economic activity and stability of the world, the draft Lisbon
Treaty includes Article 176 on energy, which defines the
Union's objectives in the field of energy ‘with regard for the
need to preserve and improve the environment’ and ‘in a spirit
of solidarity between Member States’.

2.3 A legal framework which must evolve

2.3.8
policy will aim to:

As stated in the future treaty, the European energy

2.3.1
The European Union currently has no powers in the
field of energy. Conferring such a power on the Union is one of
the major innovations of the draft Lisbon Treaty.

2.3.2
It is true that when the European Economic Com-
munity was set up, Euratom and the ECSC dealt with many of
the energy issues of the day.

— ensure the functioning of the energy market,

— ensure security of energy supply,

— promote energy efficiency and energy saving and the devel-

opment of new and renewable forms of energy,

2.3.3
abstained from any action in the field of energy?

Does this mean however that the European Union has

— promote the interconnection of energy networks.

Certainly not: under Article 308 of the EC Treaty it has
2.3.4
developed a real energy policy, while under Article 154 it has
developed a policy on trans-European energy networks (see
Decision No 1364/2006/EC). Finally,
internal market and
competition rules have of course been applied to the energy
market (Directive 2003/55/EC on the opening-up of the market
in
electricity, Directive
2003/54/EC on
90/377/EEC amended by Directive 93/87/ECC on the transpar-
ency of gas and electricity prices). The initial effects of this

gas, Directive

This policy will fall under shared competence where
2.3.9
the rule should be qualified majority, except for taxation which
will still require unanimity. However, the second subparagraph
of Article 176 A(2) stipulates that ‘a Member State's right to
determine the conditions for exploiting its energy resources, its
choice between different energy sources and the general struc-
ture of its energy supply’ is not affected by the measures taken
to achieve the objectives identified by the first paragraph of this
new article.

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2.3.10
The European Union will therefore have competence,
the primary, crucial instrument for taking stronger and more
concrete action. Will this instrument be enough or must we
take further institutional action? But even before designing this
instrument, we must frame policies which can evolve under the
combined influence of external constraints and the development
of services and technology.

3. Which policies?

3.1
European energy policies have so far been subject to
economic demands and/or the demands of sustainable develop-
ment:
the determination to liberalise the energy market by
means of directives and the policy on network industries, the
policy to support energy efficiency, the policy to promote and
develop renewable energy, combating CO2 emissions, etc.

3.2
In a way, since the European Union does not have
powers in the field of energy, it has approached the issue rather
indirectly, using internal market, competition and environment
rules. Its action was, at least in appearance, more technical and
legal than political.

This has not prevented it from being highly active in
3.3
enacting legislation and setting out guidelines for the energy
sector. The Union has in fact recently (19 September 2007)
issued a series of
legislative proposals amending the current
texts (amendment to the Regulation on conditions for access to
the network for cross-border exchanges in electricity, the Regu-
lation establishing an Agency for the Coordination of Energy
Regulators, amendment to the Regulation on conditions for
access to the network for cross-border exchanges in natural gas,
amendment to the directives on common rules for the internal
market in gas and electricity).

If the Lisbon Treaty is ratified as it stands, the Union will
3.4
be able to deal with this major area of policy with greater clarity
and directness. However,
legal competence does not in itself
remove all the political, economic and social difficulties. It is
well known that there is considerable disparity between national
policy choices, particularly as regards nuclear energy. Since the
informal European summit held at Hampton Court,
the
European Council has mapped out
the foundations for a
genuine European energy policy, reflected in the new energy
package prepared by DG Energy and DG Environment.

3.5
As we have seen, the European Union wanted at first to
use market mechanisms, with the aim of setting up a competi-
tive market which would supposedly be more efficient and thus,
thanks to the trans-European energy networks, achieve an inter-
connected market.

3.6
It also wanted to promote energy efficiency, particularly
in the most energy-intensive sectors: heating and air condi-
tioning of buildings, manufacturing and transport.

The ambitious target of the action plan for the period
3.7
2007-2012 (October 2006)
is to save 20 % of the annual
consumption of energy by 2020, that is to say a saving of
approximately 1,5 % of energy intensity each year until 2020.

3.8
The Union has also placed great emphasis on the need to
develop renewable energy. The Union's target in this respect is
also very ambitious: 20 % of
total energy consumption by
2020, plus a proposed mandatory minimum objective of 10 %
for biofuels (Renewable Energy Road Map of 10 January 2007).

3.9
However, these sources have so far had many disadvan-
tages compared to fossil fuels: lower energy density, land usage
intermittency of production
(photovoltaic fields, for example),
and of course the cost of
the technologies concerned. So
although the relative cost disadvantages are steadily diminishing
this means that the move towards these technologies is likely to
be gradual and lengthy unless given significantly more political
and financial support, and that all new energy sources require
in-depth impact assessments (see OECD Observer, December
2006, No 258/259:
‘21st century energy: Some sobering
thoughts’ by Vaclav Smil).

In the case of energy for transport, the Commission has
3.10
focused on the promotion of biofuels and on fuel cells and
hydrogen. The scale of expansion envisaged for biofuels
however raises certain problems. Fuel cells are highly efficient
energy converters which can significantly reduce the emission of
greenhouse gases and pollutants. However, these technologies
are unlikely to become commercially viable in the near future.

Therefore,

seventh framework
in line with the
3.11
programme for research and a joint technical initiative to set up
public-private partnerships, the Commission has issued a draft
regulation setting up the fuel cells and hydrogen joint under-
taking (COM(2007) 571 final). This proposal
is intended to
launch a programme of research, technological development
and demonstration in the field of fuel cells and hydrogen.

3.12
In order to promote the development of hydrogen
powered vehicles, the Commission has also issued a draft regu-
lation on type-approval of these vehicles (COM(2007) 593 final)
to ensure that standards do not vary from one Member State to
another, which could only hinder the spread of this technology.

4. These guidelines are necessary, but are they enough?

4.1
The demand for fossil fuels will continue to be both
strong and critical. Consequently, discussion cannot overlook
this unavoidable fact and care must be taken to remain realistic
as regards renewable energy.

4.2
In this respect, the EU Member States must implement a
concerted policy as regards countries which produce fossil fuels
in the ‘spirit of solidarity’ urged by the Lisbon Treaty. A
purchasing policy would also be extremely useful but
is
primarily a matter for multinational companies in the oil sector.

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The oil market is officially organised by OPEC. Under
4.3
these conditions,
the 27 Member States would clearly have
greater weight as a group than if they operated individually,
particularly since they are among the most highly developed of
the industrialised countries and are therefore major energy
consumers. It must not be forgotten that the EU represents an
integrated market of almost half a billion consumers.

4.10
Legislation and case law should be developed on this
point, since energy recovery from waste is not recognised in its
own right. The revised proposal for a framework directive on
is an
waste, under discussion at
encouraging sign.

the European Parliament,

4.4
A purchasing bloc of this nature would have strong poli-
tical influence when dealing with the cartel of oil producers; the
situation regarding gas is different as there are no cartels in the
gas industry.

Finally, the issue of nuclear energy will

4.11
inevitably be
considered. It will be difficult to achieve the target of a 20 %
reduction in greenhouse gas emissions by 2020 without consid-
ering a revival of the programmes for new generation nuclear
power stations for the Member States who have decided to use
this energy. The others should improve their policies on renew-
ables.

4.5
Diversification is an imperative for security of supply. In
this respect, relations with Russia, a major European nation, are
at least as important as those with OPEC. Similarly, thought
should be given to establishing a supply policy with the
Caucasian and Central Asian republics.

4.12 We are obviously well aware of the challenges of safety,
security and waste management connected to the development
of this industry. But can we really do without it?

fossil

In the case of

fuels, efforts should be directed
4.6
towards establishing alternative sectors, particularly coal-based.
‘Clean coal’ research is making considerable progress, and will
need to be accelerated if a new expansion of coal use is not to
exacerbate global warming. A major European R&D plan in this
field should be developed, particularly since Europe still has
large coal reserves and this resource is conspicuously cheaper
than oil on the world market. However, methods of mining coal
continue to be a highly sensitive issue; the difficult and some-
times dangerous conditions in mines are well known. Working
conditions and health and safety at work in this sector must
therefore be considered with particular care.

Used tyres could also be used as a renewable resource
4.7
provided that
the emissions resulting from combustion are
captured efficiently. Electricity plants powered by tyres have
been operational in a number of countries for some decades.

4.8
Progress is being made as regards the technology for
storing CO2 but this is still costly, difficult and involves the risks
of leakage, for example in the event of fissures in the rock or
earthquakes, and pollution of the water table. EESC opinions
currently being drawn up will deal with these issues in detail.

4.9
In addition to fossil fuels, there is a local resource which
is abundantly — too abundantly — available: waste. Billions of
tonnes are produced in the EU. Recycling and reuse of waste
materials are usually regarded as the best way of disposing of
waste since they reduce demand for virgin materials of all kinds
and avoid the production of greenhouse gases associated with
most forms of waste disposal. But where this is not possible,
using waste as a source of energy should certainly be consid-
ered. Research and development should also be encouraged in
this field so as to improve energy efficiency while cutting green-
house gas and other polluting emissions as far as possible.

4.13
The choice of energy sources gives rise to controversy,
but none can approach the level of acrimony existing between
the for and against camps on nuclear energy. There is in fact a
real nuclear divide in Europe, making it most advisable to leave
any decision to the Member States alone on whether or not to
use this energy source.

4.14
Europe has an effective tool in Euratom, which must be
put to use to maintain its technical edge, ensure its competitive-
ness, reduce its energy dependency and step up its efforts and
international cooperation for security, safety and non-prolifera-
tion. Thought could also be given to drawing up new guidelines
for Euratom.

is

One of

challenges

the major

4.15
fusion research.
Euratom's seventh framework programme for research has a
budget of EUR 2,75 billion, of which nearly two thirds are
earmarked for research on fusion energy. This priority must be
encouraged and maintained because if this technology could be
mastered, it would contribute greatly to facilitating the manage-
ment of waste by considerably reducing its lifespan. The launch
of ITER throughout the EU is promising.

4.16
As regards vehicle propulsion, the EU should look into
fuel cells and compressed air
hybrid vehicles, solar energy,
propulsion. Research and development is progressing in this
field as well, and a French engineer has developed a very
economical vehicle which can reach speeds of up to 150 km/h
using compressed air propulsion, with production set to begin
in the next few months. The well-known Indian company, Tata,
has bought the rights for India.

4.17
In this context, the EESC reaffirms its earlier recom-
mendations on the European Union's energy resources, which
paved the way for and back up the points made in this opinion.

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5. Which instruments?

5.1
Identifying policies and selecting priorities are key
elements, but the political and legal instruments to implement
them are still needed. In this respect, will the provisions of the
Lisbon Treaty,
is ratified, be sufficient or must we go
further?

it

if

Proclaiming the need for a spirit of solidarity between
5.2
Member States in the energy sector is certainly an excellent
thing and the identification of four strands for this policy is an
innovation which can only be welcomed, even if these strands
are not very innovative.

But we cannot help but think that the gravity of global

5.3
energy challenges deserves more.

5.4
The Lisbon Treaty may well have been overly cautious,
even if a common energy policy supported by a specific institu-
tional framework along the lines of the ECSC and Euratom is
not yet possible.

5.5
In the global race for energy, the competitors are conti-
nental in scale. The Community framework gives greater weight,
but the creation of a specific authority responsible for energy
‘diplomacy’, purchasing policy, and drawing up and funding
R&D framework programmes would probably make Europe a

Brussels, 23 April 2008.

major player in the great global energy game, which is impos-
sible for the Member States individually.

5.6
The current situation is characterised by strongly diver-
ging national approaches, no doubt due to the fact that after the
first oil crisis in 1973, everyone was keen to guarantee the
security of their own energy supply. There are many examples
of uncoordinated efforts and different approaches.

5.7
So as to avoid any disharmony which would cause
Europe to lose its pre-eminence, a major European energy
policy is needed, closely integrated with the leading position it is
endeavouring to establish on climate change policy in interna-
tional negotiations. This should be based on meticulous coordi-
nation within international bodies such as the WTO, UN,
NATO and the OECD as soon as energy matters are brought to
It should be accompanied by the coordination of
the table.
energy policies and in particular the introduction of a strong
purchasing policy, and a truly committed rather than merely
pragmatic network interconnection policy. Finally, when appro-
priate, this policy of coordination, consultation and common
projects could be based on specific institutions to help Europe
respond to the energy challenge. Will we have the courage to do
so?

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

to the opinion of the European Economic and Social Committee

APPENDIX

The following amendment, which received at least 25 % of the votes cast, was rejected during the discussion:

Point 4.11

Amend as follows:

‘Finally, the issue of nuclear energy will inevitably be considered. This is a sovereign matter for the Member States themselves to
decide. We cannot hope to achieve the target of a 20 % reduction in greenhouse gas emissions by 2020 without considering a
revival of the programmes for new generation nuclear power stations.’

Reason

Germany, where some ten nuclear power plants are still in operation, plans to cut CO2 emissions by almost 40 % by
2020 while simultaneously phasing out nuclear energy. Is the rapporteur (and the EESC) questioning the soundness of
this plan?

Outcome of the vote

For: 46 Against: 103 Abstentions: 27