Opinion of the European Economic and Social Committee on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions — a European Strategic Energy Technology Plan (SET-PLAN) Towards a low carbon future COM(2007) 723 final
Date: 2008-07-09
Institutions: European Economic and Social Committee
Subjects: ESC opinion, energy policy, energy research, energy technology, new technology, renewable energy

3.2.2009

EN

Official Journal of the European Union

C 27/53

Opinion of the European Economic and Social Committee on the ‘Communication from the
Commission to the Council,
the European Economic and Social
Committee and the Committee of the Regions — a European Strategic Energy Technology Plan
(SET-PLAN) “Towards a low carbon future”’

the European Parliament,

COM(2007) 723 final

(2009/C 27/13)

On 22 November 2007 the Commission decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the

Communication from the Commission to the Council, the European Parliament, the European Economic and Social
Committee and the Committee of the Regions — a European Strategic Energy Technology Plan (SET-PLAN) Towards
a low carbon future.

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 5 June 2008. The rapporteur was
Mr Zbořil.

At its 446th plenary session, held on 9-10 July 2008 (meeting of 9 July), the European Economic and
Social Committee adopted the following opinion by127 votes with 5 abstentions.

1. Recommendations and conclusions

1.1
The EESC welcomes the Commission's Communication
and accompanying working documents and concurs with the
analysis and description of the position regarding energy tech-
nologies. Without a sound strategy to develop energy technolo-
gies, any thought of curbing climate change is seriously under-
mined. For this reason the EESC supports the adoption of the
SET-Plan.

1.2
The Communication adds considerable weight to a key
element of energy policy — a secure energy supply that is both
viable and socially and environmentally sustainable. Security of
supply means not just the physical availability of supplies, but
also their availability at socially acceptable prices.

The Commission's Communication quite rightly puts the
1.3
development of energy technologies at the forefront of efforts to
rein in climate change, a position which echoes the conclusions
adopted by the 13th Conference of Parties (COP 13) in Bali in
December 2007 (1).

The Commission's Communication is perfectly correct in
1.4
importance of time in imple-
drawing attention to the vital
menting the proposed strategy (the SET-Plan) if the EU is to
fulfil its March 2007 pledge of reducing greenhouse gas emis-
sions by 2020.

If the EU is to speed up development and the practical
1.5
application of new energy technologies,
requires more
targeted and effective mechanisms which enlist the potential of

it

(1) See the decision of the UN's 13th Meeting of the Conference of the
Parties to the Framework Convention on Climate Change — the Bali
Action Plan.

public funding, industry, universities and research and boost the
synergy between them. At the international level, broader colla-
boration and measures to prevent the fragmentation of research
are also needed.

1.6
The EESC greatly values the position taken by the
Commission in its Communication of urging financial, but
above all human, resources to be mobilised at all four levels: the
private sector, Member State level, Community level and world-
wide. The Committee stresses that an important prerequisite for
mobilising human resources is support across the board for
education in science and technology.

1.7
The strategic plan should include not only the setting of
priorities at EU level, but also the establishment of specific
priorities at Member State level that respect their capacities and
experience,
from public
finances (of the EU and Member States), the optimum use of
research and development capacities and private sector involve-
ment encouraged by sufficient stimuli from the energy market,
as well as other legal and fiscal instruments.

the allocation of

sufficient

funds

instrument

The Committee thinks it would be detrimental if what is
1.8
incontestably the most
for curbing
important
climate change — a strategy for the development and applica-
tion of energy technologies — were to be overshadowed by
other issues which, realistically speaking, must instead provide
the necessary framework for supporting and stimulating this
development (EU ETS, support for the use of renewable energy
sources, the Third Energy Package etc.). Only a true shift toward
more effective technologies in the production and consumption
of all forms of energy can achieve a real reduction in greenhouse
gas emissions.

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1.9
The analysis of the present, very unsatisfactory, situation
is remarkably succinct and pertinent, quite rightly pointing to
organisational and administrative problems that society must
tackle alongside the scientific and technological ones.

to

be

support

technologies

Recommendations at EU level urge that attention and
1.10
appropriate
using
devoted
renewables, clean energy technologies for heating and the latest
infrastructure for distributing and storing energy. For the time
being, however, some forms of renewable energy are very costly
and will continue to be so far into the future. Unfortunately,
energy-saving technologies for end-use consumption, clean fossil
fuel technologies, nuclear energy (both fission and fusion) and
safe storage of nuclear waste are relegated to the sidelines. It
should not be forgotten that many countries are dependent on
fossil
fuels and nuclear energy and this dependency will
continue into the foreseeable future.

1.11
Heavy private-sector involvement is, in the EESC's view,
absolutely crucial. The EU and the governments of the Member
States must provide the necessary environment for this, not
only by defining the principles, priorities and goals of energy
policies, but also by creating the instruments to help meet these.

1.12
The key element is to establish market rules in the
energy sector, especially the correct incorporation of external-
ities, including social costs, in the prices of all forms of energy.
The EU and the Member States will probably have to create a
legislative and fiscal environment to ensure a better combination
of public
funding in energy research and
development.

and private

1.13
The feasibility of each Member State using renewable
energy sources and being involved in programmes to develop
energy technologies should be assessed on its natural environ-
ment and physically accessible resources.

for

Progress

in advanced energy technologies

1.14
the
consumer must be put at the service of sustainable develop-
ment. A strategic coordination of energy research and develop-
ment which sets content and scheduling priorities at Com-
munity and Member State levels, together with the necessary
operational mechanisms
systems for management,
such as
monitoring and information flows, can go a long way to
achieving the desired goals.

contracts and agreements, especially those that have proved
their worth.

The SET-Plan is a key strategic approach of

1.16
the
European economy in developing and bringing on stream the
technologies needed to curb climate change by cutting green-
house gas emissions by 2020 and beyond to 2050.

2. Introduction

1508,

On 22 November 2007,

2.1
the Commission issued a
proposal entitled A European Strategic Energy Technology Plan
(SET-Plan) COM(2007) 723 — ‘Towards a low carbon future’,
together with the working documents ‘Full impact assessment’
SEC(2007)
Assessment’
‘Summary
SEC(2007) 1509,
‘Technology Map’ SEC(2007) 1510, and
set of documents
‘Capacities Map’ SEC(2007) 1511. This
contains the background to the SET-Plan and resources which
are available and must be mobilised to achieve its aims. Together
they constitute an urgent appeal for closer and more coordi-
nated collaboration on research and development
all
levels (2).

Impact

at

2.2
This is a strategic approach in one of the key areas of
endeavour (if not the key area) to reduce climate change by
cutting greenhouse gas emissions — specifically by 20 % in the
EU by 2020, and possibly by 30 % if the world community
joins the EU initiative. These core aims in the fight against
climate change were set out by the European Council, together
the Energy Policy for
with the main political substance of
Europe, on 9 March 2007.

Enormous advances in energy technology will be needed
2.3
to stabilise atmospheric carbon dioxide concentrations at accep-
table level. There is no question about whether technological
innovation is necessary — it is. The question is to what degree
should policy focus directly on motivating such innovation (3)?
The complacency with ‘technology already available’ is extremely
dangerous and the SET Plan, thoroughly projected and imple-
mented, is the basic appropriate choice to achieve the required
reduction targets.

3. Commission documents

3.1
Europe needs to act now, together, to deliver sustainable,
secure and competitive energy. Harnessing technologies is vital
to achieve the Energy Policy for Europe objectives adopted by
the European Council on 9 March 2007. To meet the targets,
we need to lower the cost of clean energy and put EU industry
at the forefront of the rapidly growing low carbon technology

In extending cooperation in the research and develop-
1.15
ment of new energy technologies beyond the Community,
priority should be given — before new agreements are
concluded — to making the best use of existing institutions,

(2) The EESC has issued a number of highly pertinent opinions on this
issue, such as OJ C 241, 7.10.2002, p. 13 Research and Energy, which
have lost nothing of their relevance.

(3) Pielke, R.Jr at al, Dangerous assumptions, Nature, Vol. 452/3 p. 531,

532, 3 April 2008.

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sector. In the longer term, new generations of technologies have
to be developed through breakthroughs in research if we are to
meet the greater ambition of reducing our greenhouse gas emis-
sions by 60-80 % by 2050.

organisational
innovation, as well as use public policy and
market-based instruments (4) to manage demand and encourage
new markets.

3.2
Current trends and their projections into the future show
that we are not on a pathway to meet our energy policy objec-
tives. The easy availability of resources has not only left us
dependent on fossil fuels, but has also tempered the interest in
innovation and investment in new energy technologies. Public
and private energy research budgets in the EU have declined
substantially since peaking in the 1980s in response to the
energy price shocks. This has led to an accumulated under-
investment in capacities and infrastructures. If EU governments
were investing today at the same rate as in 1980, the total EU
public expenditure for the development of energy technologies
would be four times the current level of investment of around
2.5 billion euros per year.

that will

contribute

technologies

to achieving

The Commission states in its documents that many of
3.7
the
the
2020 targets are already available today or in the final stages of
development. According to even the most optimistic scenarios,
however, it will still take considerable time to bring available
technologies on stream and low-carbon technologies in general
remain expensive and face market penetration obstacles. A
twin-track approach is therefore needed: reinforced research to
lower costs and improve performance; and pro-active support
measures to create business opportunities, stimulate market
development and address the non-technological barriers that
discourage innovation and the market deployment of efficient
and low-carbon technologies.

3.3
The market take-up of new energy technologies is addi-
tionally hampered by the commodity nature of energy. Legal
and administrative barriers complete this
innovation-averse
framework. Public intervention to support energy innovation is
thus both necessary and justified.

To achieve the vision of carbon-free technologies for 2050, we
need to develop a new generation of these technologies through
major breakthroughs in research. Even if some of these technol-
ogies will have little impact by 2020, it is vital that we reinforce
efforts today to ensure that they come on-stream as early as
possible.

3.4
The main global players, the United States and Japan, but
also emerging economies such as China, India and Brazil, are
facing the same challenges and are multiplying their efforts.
Their market size, investment and research capacities far exceed
Fragmentation, multiple
States.
those of most Member
non-aligned research strategies and sub-critical capacities remain
a prevailing characteristic of the EU research base. If we fall
behind in the intensifying global race to win low carbon tech-
nology markets, we may need to rely on imported technologies
to meet our targets, missing out on huge commercial opportu-
nities for EU businesses.

instrument

Existing measures taken over recent years could serve as
3.8
a foundation for further EU action: (i) the creation of European
Technology Platforms, (ii) use of the European Research Area
(ERA)-Net
for common research programming
between Member States, and (iii) collaboration between research
centres in specific fields through the Networks of Excellence.
The SET-Plan will focus, strengthen and give coherence to the
overall effort in Europe, with the objective of accelerating inno-
vation in cutting edge European low carbon technologies. The
SET-Plan proposes to deliver the following results:
(i) a new
(ii) a more effective implementation,
joint strategic planning,
(iii) an increase in resources, and (iv) a new and reinforced
approach to international cooperation.

3.5
take
The transition to a low carbon economy will
decades and touch every sector of the economy, but we cannot
afford to delay action. Decisions taken over the next 10-15 years
will have profound consequences for energy security, for climate
change, for growth and jobs in Europe.

3.6
First and foremost, we need a step change in efficiency in
energy conversion, supply and end-use. In transport, buildings
and industry, available technology opportunities must be turned
into business opportunities. We need to fully harness the poten-
information and communication technologies and
tial

for

3.9
A new way of working at Community level requires an
inclusive, dynamic and flexible means of guiding this process,
defining priorities and proposing actions — a collective
approach to strategic planning. Stakeholders have to start to
communicate and take decisions in a more structured and
mission-oriented way, conceiving and implementing actions
together with the EC within a cooperative framework. To steer
the implementation of the SET-Plan, reinforcing the coherence
between national, European and international efforts,
the
Commission will establish a Steering Group on Strategic Energy
Technologies
in 2008. The Commission will organise a
European Energy Technology Summit in the first half of 2009.

(4) COM(2007)140 of 28.3.2007, Green Paper on market based instru-

ments for environment and related policy purposes.

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3.10
Effective strategic planning in the Steering Group
requires regular and reliable information and data. Commission
will establish an open-access
information and knowledge
management system. It will include ‘technology mapping’ and
‘capacities mapping’ developed by the Commission's
Joint
Research Centre (5).

continuing to meet the high energy demands of mature econo-
mies and the rapidly increasing energy demands of developing
economies is a significant international challenge. Without a
sound strategy to develop and implement more economical and
efficient energy technologies, any thought of curbing climate
change is seriously undermined.

3.11
To accelerate the development and market introduction
processes we need more focussed and powerful mechanisms
that can leverage the potential of public intervention, European
industry
these:
and
the European Energy
(i) European Industrial
Research Alliance, and (iii) Trans-European energy networks and
systems of the future.

The mechanisms

researchers.

Initiatives,

are

(ii)

3.12
Encouraging more focus and coordination between
different funding schemes and sources will help to optimise
investment, build capacity and ensure a continuity of funding
for technologies in different phases of development. Two chal-
lenges need to be addressed: mobilising additional financial
resources, for research and related infrastructures,
industrial-
scale demonstration and market replication projects; and educa-
tion and training to deliver the quantity and quality of human
the technology
resources required to take full advantage of
opportunities that the European energy policy will create.

3.13
The Commission intends to present a Communication
on financing low carbon technologies at the end of 2008.
Member States' own actions to increase the human resource
base should be better coordinated to maximise synergies and
increase mobility in the sector.

3.14
The measures proposed in the SET-Plan should bring
about a reinforced international cooperation strategy. We also
need to ensure that the EU increasingly speaks with one voice in
to achieve a more
fora, where appropriate,
international
coherent and stronger partnership effect.

Today,

the energy technology innovation process is
3.15
based on national programmes and incentives, using national
resources to meet national objectives and targets. This model
fits a bygone era of cheap energy and no carbon constraints. To
bring about the dramatic changes in the energy sphere that will
be necessary in the 21st century, a new policy needs to be
pursued.

4. General points

4.1
The EESC welcomes the Commission's Communication
and accompanying working documents and concurs with the
analysis and description of the position regarding energy tech-
nologies. Responding to the risks of global climate change while

The Communication adds considerable weight to a key
4.2
element of energy policy — a secure energy supply that is both
viable and socially and environmentally sustainable. Security of
supply means not just the physical availability of supplies, but
also their availability at socially acceptable prices.

4.3
The Commission's Communication quite rightly puts the
development of energy technologies at the forefront of efforts to
rein in climate change, a position which echoes the conclusions
adopted by the 13th Conference of Parties (COP 13) in Bali in
December 2007 (6). Collaboration on this front now and in the
future should also be made an EU priority, not least in view of
the potential opportunities for Europe's economy afforded by
the expansion of the necessary technologies.

The Commission's Communication is perfectly correct in
4.4
drawing attention to the vital
importance of time in imple-
menting the proposed strategy (the SET-Plan) if the EU is to
fulfil its March 2007 pledge of reducing greenhouse gas emis-
sions by 2020. Unless there is an acceleration in organisation
and in the final analysis of basic strategic approaches for the
development of technologies (including taking on board the
main strategic directions of development and research in the
USA and Japan), it will be impossible to concentrate efforts and
resources effectively to manage the first stage to 2020, let alone
the second stage up to 2050.

it

If the EU is to speed up development and the practical
4.5
requires more
application of new energy technologies,
targeted and effective mechanisms which enlist the potential of
public funding, industry, universities and research and boost the
synergy between them. Europe has strong national research
institutes for energy, as well as outstanding research teams
working in universities and specialised centres. Regrettably, their
work is not coordinated and the instruments so far used to steer
their collaboration are inadequate. Exploiting this potential to
the full is crucial to the success of the proposed plan. Wider
collaboration is also required at the international level.

(5) See Commission Staff Working Documents SEC(2007)1510 ‘Tech-

nology Map’ and SEC(2007)1511 Capacities Map.

(6) See the decision of the UN's 13th Meeting of the Conference of the
Parties to the Framework Convention on Climate Change — the Bali
Action Plan.

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4.6
The EESC greatly values the position taken by the
Commission in its Communication of urging financial, but
above all human, resources to be mobilised at all four levels: the
private sector, Member State level, Community level and world-
wide. Thus far, conflicting priorities and protracted procedures
have hampered mobilisation of funding. The proposed SET-plan
must foster a change in attitudes and an acceleration in the deci-
sion-making process. Despite the fact that mobilising human
resources — never a speedy process — is also a part of the
Lisbon Strategy, efforts to find the human resources needed to
implement proposed strategies are still inadequate and too slow.
The first prerequisite for mobilising human resources is support
across the board for education in science and technology.

The EESC notes that it is vital to come to an agreement
4.7
not only on the visions, priorities and aims of energy policy, but
also on a strategic plan for energy technologies.

instrument

The Committee thinks it would be detrimental if what is
4.8
incontestably the most
for curbing
important
climate change — a strategy for the development and applica-
tion of energy technologies — were to be overshadowed by
other issues and instruments which, realistically speaking, must
instead provide an important support framework for this devel-
(EU ETS, support
opment
for the use of renewable energy
the Third Energy Package, etc.). Only a true shift
sources,
toward more effective technologies in both energy production
and consumption, can achieve a real reduction in greenhouse
gas emissions. One source of funding for technological develop-
ment could be the auctioning of EU ETS allowances, assuming
the proposal to introduce this procedure is adopted. However,
on no account must this be the only source of funding, espe-
cially if it only comes into operation effectively in 2013.

5. Special comments

5.1
The analysis of the present, very unsatisfactory, situation
is remarkably succinct and pertinent, quite rightly pointing to
organisational and administrative problems that society must
tackle alongside the scientific and technological ones.

squandered. Each Member State, and possibly every region,
should be allowed to choose its priorities within the adopted
strategic framework based on its expertise, experience and capa-
city for implementation.

5.3
Documents on this issue at EU level recommend that
attention be given to technologies using renewables, clean heat
energy technologies (including heat for producing electricity)
and the latest infrastructure for distributing and storing energy.
The EESC endorses these priorities. However, clean fossil fuel
technologies, which will remain the most important primary
energy source well into the future, nuclear energy (both fission
and fusion) and safe storage of nuclear waste must continue to
be an intrinsic part of the EU's research and development port-
folio and must not be neglected.

5.4
The EESC agrees that the energy market has so far failed
to provide energy policy-makers, governments and private
investors with clear information on the urgency of developing
new energy technologies because the costs of the various types
of energy and fuels do not sufficiently include all the external-
ities, including social costs. This is also why there have still been
no agreements at EU level on the priorities of energy research
and development and on creating the funding and other instru-
ments to support these priorities.

5.5
The EESC thinks that the strategic plan should include
not only the setting of priorities at EU level, but also the effec-
tively coordinated and swift establishment of specific priorities
at Member State level, the allocation of sufficient funds from
public finances, the optimum use of research and development
capacities and private sector involvement encouraged by suffi-
cient stimuli from the energy market, as well as other legal and
fiscal instruments. It is absolutely vital that the private sector be
heavily involved. The EU and the governments of the Member
States must provide the necessary environment for this, not
only by defining the principles, priorities and goals of energy
policies, but also by creating the practical instruments to help
meet these.

The premise underlying EU documents dealing with
5.2
energy technologies is that there is no single energy technology
— or even a few — that can have an important influence on
progress in the energy field and help achieve the goals set out.
On the contrary, there are many, and results will be achieved
only by enlisting all of them. None that holds at least some
promise should be dismissed out of hand without thorough
examination, though those that offer the least should be jetti-
soned as quickly as possible so that resources are not needlessly

The key element

5.6
is to establish market rules in the
energy sector, especially the correct incorporation of external-
ities, including social costs, in energy prices, which will result in
the market sending early signals to private investors and opera-
tors about the need for technological change to ensure the most
effective use of different energy sources. The EU and the
Member States will probably have to create a legislative and
fiscal environment, including voluntary mechanisms, to ensure a
better combination of public and private funding in energy
research and development leading to greater use of resources.

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5.7
There are not inconsiderable prospects for some coun-
tries with favourable natural conditions to make swifter progress
in increasing the use of renewable sources of energy. But there
are also countries which do not have such conditions or cannot
exploit them economically. The feasibility of each Member State
using renewable
and being involved in
sources
programmes to develop energy technologies should be assessed
on its natural environment and physically accessible resources.

energy

set out

the priorities

The Committee finds

5.8
in the
Commission's Communication on the SET-Plan to be somewhat
limited, particularly regarding renewable energy sources. They
are no doubt important for increasing security of energy supply,
lessening Member States' reliance on energy imports and for
sustainability of development. For the time being, however,
some forms of renewable energy are very costly and will
continue to be so far into the future. Similarly, the integration
of the energy market is not solely a matter of policy and organi-
sation, but will also require the necessary research and develop-
ment — into intelligent networks, for example.

5.9
It should not be forgotten that many countries are
dependent on fossil fuels and nuclear energy and this depen-
dency will continue into the foreseeable future. The same is true
of third countries and the EU should coordinate its efforts with
them to speed up research and development in energy technolo-
gies. For this reason, the EESC thinks the EU's priorities must
not be focused predominantly on renewable energy technolo-
gies, since energy-saving technologies for end-use consumption

Brussels, 9 July 2008.

and clean technologies based on fossil fuels (including carbon
capture and storage) are equally important. The EU has a special
agenda and regime for research and development regarding
nuclear technologies. However, it is important to stress the need
for research and development into energy from nuclear fission
and — perhaps in the future — fusion and into the longevity
and safety of nuclear plants, since these could have a lot to offer
in terms of security of energy supply and reduction of green-
house gas emissions in the EU.

5.10
Of course, efforts to save energy in both its transforma-
tion and end consumption can make a large contribution to
sustainable development, as can progress in advanced energy
technologies. At EU level, better use of available financial and
human resources in this very broad area can be facilitated by a
properly devised and pursued strategic coordination of energy
research and development which sets content and scheduling
priorities at Community and Member State levels, together with
the necessary operational mechanisms such as systems for
management, monitoring and information flows. Effective stan-
dardisation of procedures and plants will also play a vital role.

In extending cooperation in the research and develop-
5.11
ment of new energy technologies beyond the Community,
priority should be given — before new agreements are
concluded — to making the best use of existing institutions,
contracts and agreements, especially those that have proved
their worth.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS