Opinion of the Committee of the Regions on ‘The EU Energy Action Plan for 2011-2020’ (outlook opinion)
Date: 2010-12-01
Institutions: European Committee of the Regions
Subjects: CoR opinion, action programme, common strategy, energy policy, energy site, energy supply, environmental protection, management of resources, sustainable development








C_2011042EN.01000601.xml










10.2.2011   


EN


Official Journal of the European Union


C 42/6





Opinion of the Committee of the Regions on ‘The EU Energy Action Plan for 2011-2020’ (outlook opinion)
2011/C 42/02
THE COMMITTEE OF THE REGIONS






—


welcomes the fact that the European Commission, in its communication on Energy 2020 – a strategy for competitive, sustainable and secure energy has given focus to municipalities as a major actor in the development of innovative integrated energy solutions at local level and acknowledges in particular the commitment of the European Commission to strengthen initiatives like the Covenant of Mayors; regrets, however, that the important role of regions has not been made explicit in the Communication;










—


notes the ambitious requirements for the local and regional contribution towards the achievement of the EU’s energy policy objectives contained in the Energy 2020 communication on one hand, and regrets, on the other hand, the absence of specific new commitments concerning the financing and funding of local and regional sustainable energy investment;










—


calls for the reduction of energy needs to be treated as an absolute priority and emphasises, as the European Parliament did in its June 2010 resolution on the Europe 2020 strategy, the need to set a binding target to reduce energy consumption by 20 % by 2020. Accordingly, there is a need to clearly identify the different levels of action in order to ensure compliance with measures and their overall coordination and consistency;










—


calls for energy policy to be included among the top priorities of the EU budget, so that it may receive a greater share of the funding available under the cohesion policy. Establishing priorities for specific support under the Structural Funds must be a matter for the local and regional level.











Rapporteur


:


Michel Lebrun (BE/EPP), Member of the Parliament of the French Community




THE COMMITTEE OF THE REGIONS






1.


reminds the EU institutions of the need to ensure that citizens in the Member States can access energy in a safe, affordable and sustainable manner. Accordingly, the EU’s energy policy can make a vital contribution towards a more energy and resource efficient, sustainable, low carbon, secure, and competitive Europe in the framework of the new Europe 2020 strategy for jobs and growth (1);










2.


reaffirms that local and regional level action remains vital if these objectives are to be achieved. The crucial role which cities and regions play in the realisation of these objectives has already been visibly recognised by the European Commission and the European Parliament;










3.


welcomes the fact that the European Commission, in its communication on Energy 2020 – a strategy for competitive, sustainable and secure energy has given focus to municipalities as a major actor in the development of innovative integrated energy solutions at local level and acknowledges in particular the commitment of the European Commission to strengthen initiatives like the Covenant of Mayors; regrets, however, that the important role of regions has not been made explicit in the Communication;










4.


emphasises that transport, housing, public buildings and public lighting and other public infrastructure all fall within the remit of local and regional authorities and are therefore areas where substantial CO2 reductions, control over consumption and energy savings are possible;










5.


calls for the future development of a European energy policy which encourages effective coordination between the Member States and the European Commission at national, regional and European level; this policy should take account of all relevant regulatory and financial aspects from the very outset, along with the investments in human and physical capital needed for its implementation;










6.


underlines the importance of strengthening instruments which support the development of renewable energy and energy efficiency solutions at local and regional level. Appropriate financing that is in part accessible to local and regional authorities should be provided for this purpose;










7.


notes the ambitious requirements for the local and regional contribution towards the achievement of the EU’s energy policy objectives contained in the Energy 2020 communication on one hand, and regrets, on the other hand, the absence of specific new commitments concerning the financing and funding of local and regional sustainable energy investment;










8.


calls for EU financing to be adapted in order to prioritise action promoting the development of methods for producing renewable energy and improving energy efficiency. Access to European Investment Bank loans should be made easier for local and regional authorities interested in investing in energy efficiency programmes and measures, promoting the use of renewable energy sources and curbing CO2 emissions; furthermore, an Energy Investment Fund should be set up with income derived from the introduction of a new Europe-wide Carbon Tax on the heaviest emitters of greenhouse gases;




I.   POLICY RECOMMENDATIONS


Key messages







9.


welcomes the invitation from the European Commission for the Committee to express its opinion on the role of the regions within the new framework of the EU’s energy policy and the new energy action plan;










10.


underlines the importance of formulating an ambitious and innovative European energy strategy which will enable the European Union to reach the cutting edge of technology in the field of both energy efficiency and making use of renewable energy. This strategy must ensure security of supply (for which diversification is crucial), control over consumption, affordable prices and the protection of the environment; energy security and the fight against climate change must be the subject of an integrated approach. It is essential that for our poorest citizens, who often spend a high proportion of their income on heating, cooling, lights and appliances, energy costs are affordable and that energy efficiency programmes target above all those most in need;










11.


calls for the reduction of energy needs to be treated as an absolute priority and for bolder policies in this area at all levels and emphasises, as the European Parliament did in its June 2010 resolution on the Europe 2020 strategy, the need to set a binding target to reduce energy consumption by 20 % by 2020, if a real reduction in energy consumption is to be achieved. Accordingly, there is a need to clearly identify the different levels of action in order to ensure compliance with measures and their overall coordination and consistency;










12.


considers that the European Union will only be able to avail itself of a sustainable, effective, diversified and competitive fuel mix by boosting the material and financial instruments used for technological research and innovation in the area of energy efficiency, the development of renewable energy and the processing and recycling of energy waste;










13.


endorses the political guidelines of the Barroso II European Commission, according to which ‘secure energy supply and good interconnections will be crucial to promote future growth;’ regrets nevertheless the Commission’s lack of vision in aiming for a jobs-based economy while putting insufficient emphasis on the role of the regions and of renewable energy;










14.


welcomes the European Commission’s objective to provide the whole of Europe with a new intelligent super grid for electricity and gas, encompassing both traditional and renewable production sources, which should also satisfy the two-fold objective of security of supply and the vital climate change goals of emission reduction;










15.


stresses the need for solidarity among Member States in how they conduct their external energy policy;










16.


urges the EU institutions to work towards ensuring a better balance of the internal/external dimension of the EU’s energy supply by promoting research and the implementation of energy efficiency more widely than investment in new fossil fuel pipelines from non-EU countries;










17.


notes that the completion of the internal gas and electricity markets, including the development of interconnections, must remain a central plank of the European Union’s energy policy. The Committee recognises, however, that in the current economic climate, if energy companies are to deliver one trillion euros of investment in new generation technologies and infrastructure over the next 20 years to keep energy flowing whilst making the switch to low carbon energy, the banks and other financial institutions should require innovative projects to be derisked and debt finance underwritten by national governments, EU bodies or by an Energy Investment Fund. Such investment would create thousands of skilled jobs and enhance the global competitive advantage of European companies;










18.


stresses that offshore energy production will make an important contribution to the EU’s energy supply in the future;










19.


notes that solar energy is the main renewable resource in the Mediterranean regions and in terms of its potential it is one of the world’s greatest resources. In the future, therefore, the production of solar energy will make a significant contribution to the EU’s energy supply;










20.


reiterates that massive investment in sectors such as industry, transport, telecommunications and housing as well as public and commercial buildings will be needed if energy savings are to be achieved in line with the 20-20-20 objectives. The energy efficiency of buildings and transport and land-use management is an area where there is significant scope for the LRAs to substantially contribute to the process of resolving the security of supply problem, as reduced energy demand reduces politically vulnerable dependency on supply from non-EU countries; also reiterates the important role that could be played by a consolidated sector of energy service companies in making investments in both the public and the private sectors in terms of savings, efficiency and the diversification of energy sources;










21.


calls on the Commission to look at possibilities of introducing targets to increase the building renovation rate each year setting minimum targets for the energy rating of buildings; and also focus on a training strategy for a workforce in the building sector capable of carrying out energy efficiency operations and having certified experts to carry out energy audits; furthermore, an effort should be made to harmonise Member States’ procedures for the energy certification of buildings;










22.


stresses that fundamental research in the energy field, which is the cornerstone for the development of cutting edge technologies in the field of renewable energy production and energy saving, must remain at the very heart of the European energy action plan. The European Union should ensure the allocation of adequate and accessible financing for all projects capable of achieving progress in this domain;










23.


calls for energy policy to be included among the top priorities of the EU budget, so that it may receive a greater share of the funding available under the cohesion policy. Establishing priorities for specific support under the Structural Funds must be a matter for the local and regional level. Accordingly, the Committee of the Regions welcomes the intention of the European Commission to promote local energy solutions and to develop further the ‘smart cities’ initiative to promote clean and energy efficient investments aimed at reducing the impact of climate change by implementing smart local policies in the area of sustainable energy, and calls on the European Commission and the Council to develop specific decentralised financial instruments in support of this objective. It must be ensured that the ‘smart cities’ initiative can benefit as many metropolitan areas as possible;










24.


believes that the 2011-2020 energy strategy should pay more attention to thermal energy (heating and cooling) as it plays a fundamental role in the EU’s energy balance and holds considerable potential in terms of energy efficiency. Heat also forms one of the most efficient vectors to introduce both renewable energy sources in the energy mix and improvements in the efficiency of thermal energy generation. Furthermore, the centralised distribution and production of thermal energy should be promoted through new harmonised legislation to facilitate its establishment;










25.


urges the European Commission to address without delay strategically important issues such as the use of instruments and measures ensuring effective price signals and incentives for energy savings, the smart use of energy and a shift to renewable energy by energy users, through the emissions trading scheme, energy taxation and the withdrawal of subsidies for conventional fuels;










26.


encourages the Commission to develop tools that would enable public authorities and investors to monetarise the positive externality of investments in energy efficiency and renewable energy. This could be achieved through the widespread use of white certificates or other market-based instruments that would valorise the positive impact of such technologies;










27.


reiterates (2) the proposal outlined in a previous CoR opinion on this matter which discussed the need to avoid subsidising energy use and to allow scope for the use of strong incentives to improve energy efficiency and, as far as possible, reduce energy use;










28.


stresses the importance of stepping up national efforts in implementing the 3rd energy market package. Implementing the agreed policy on renewable energy, energy efficiency and, in particular, the Strategic Energy Technology Plan is necessary as a first step to achieving the ambitious 20-20-20 targets, since implementation of the adopted legislation will create a stable framework for businesses to plan their investments and activities;










29.


agrees with the European Commission that a well functioning, competitive internal energy market is of key importance for the realisation of the long term energy and climate objectives pursued by the EU. Achieving this type of market will require setting up more effective regulatory controls, a stable legal framework to facilitate the development of renewable energy, regulations and administrative procedures which are more transparent, less costly and more accessible for renewable energy, providing consumers with easy and immediate access to complete, reliable and accurate information about energy, promoting training in the efficient use of energy by the public, and ensuring the full independence of transmission system operators. The Committee of the Regions calls for the endorsement of the principle of equal treatment for all actors on the internal market as an important energy policy guideline. Raw materials should be made available for everybody in the European market on fair and equal terms, in accordance with the requirements of market transparency and openness;










30.


draws attention to the close relationship which exists between recovery plans and investment in energy efficiency and renewable energy in the context of the current crisis, which is both economic and environmental. Issues relating to the more efficient use of resources, including energy, and green technologies can create synergies with the objectives established under the EU 2020 Strategy, which calls for the creation of a ‘competitive, connected and greener economy’ in the light of the EU’s climate policy and the efforts taken to boost Europe’s energy independence;










31.


welcomes the considerable progress made by the European Union towards harmonising the energy use products and services which are available on the European market and urges it to continue down this path by striving to set the highest possible requirements in the area of energy saving, efficiency and energy performance;










32.


stresses that efficient vehicles (hybrid, electric etc), despite all of their current limitations, can meet the majority of the mobility requirements now met by petrol and diesel cars, and also offer the following advantages in terms of the cornerstones of the EU’s energy policy: energy savings, reductions in energy dependency, lower polluting emissions, increased efficiency of the electrical system, noise reduction etc. The Committee therefore considers it necessary to support public transport, particularly the railways (both high-speed and commuter trains);










33.


notes that achieving all these objectives will require a coordinated effort at all levels: European, national, regional and local. It is only through collective action that Europe will be able to realise its objectives of sustainability, competitiveness and security of the energy supply;










34.


suggests that the energy action plan to be submitted by the Commission should also contain an initial discussion of EU energy policy beyond 2020, all from a global perspective and including all available types of energy (conventional, nuclear and renewable);





Role of local and regional authorities







35.


reminds the EU institutions that local and regional authorities have a crucial role to play in the success of the future European energy strategy as they are key players in the energy field due to their responsibilities in many areas related to planning and land-use management, the granting of authorisations, investment, public procurement, production and consumption and their proximity to the consumer. Furthermore, transport, housing, public buildings and public lighting infrastructure all fall within the remit of local and regional authorities and are therefore areas where substantial CO2 reductions and energy savings are possible;










36.


urges that a thorough impact assessment be conducted to take account of local and regional specific aspects when identifying the possible economic impact and financial and administrative costs of any future EU energy action;










37.


notes that local and regional authorities play a leading role both in encouraging changes in the behaviour of individuals – which is absolutely vital if the objectives of energy efficiency are to be achieved – and in launching and supporting action and projects to achieve goals such as energy efficiency, environmental protection and the fight against climate change, which are rolled out at local and regional as well as national or international level. The European Commission and the European Parliament have already recognised the major role played by local and regional authorities;










38.


draws attention to the fact that, without undermining the crucial role of the Member States in the area of infrastructure investments e.g. network or interconnections, local and regional level government can play a greater part in the development of energy capacity through renewable energy and smart energy networks. Joint working between communities, local and regional authorities and energy companies is required in order to develop and deliver local energy plans. This includes better access to data held by energy companies and the introduction of real-time monitoring through Smart Meters;










39.


therefore local and regional authorities must be seen as a partner that can help disseminate and deliver this crucial agenda and not a barrier for rapid deployment of ambitious legislation and they must play a key role in ensuring that projects implemented are of high quality;










40.


draws attention to the fact that local and regional authorities have already begun to launch activities and initiatives to help achieve the objectives of European policy on environmental protection and combating climate change. Against this background, it should be stressed that the Covenant of Mayors has been a driving force in the process of raising people’s awareness of energy issues and encouraging changes in individual behaviour; the creation of information and cooperation networks bringing together cities and local authorities that are signatories to the Covenant has been equally important;










41.


accordingly, calls on local and regional authorities which are at the cutting edge of energy efficiency and the development of renewable energy production facilities to step up their communication and cooperation efforts with their counterparts. Opening up the covenant to any interested local urban and rural community should also be encouraged, along with all forms of interregional, national and international cooperation participating in this joint effort;










42.


welcomes the European Commission’s intention to promote local energy solutions and further develop the ‘smart cities’ initiative to promote clean and energy efficient investments. Progress in this field could, in particular, be achieved by ensuring Commission support for the full exploitation of the potential presented by cogeneration and renewable energy, as well as urban district heating and cooling networks associated with this type of technology and the use of renewable energy sources (biomass etc) and distributed electricity generation. The Committee of the Regions calls on the European Commission and the Council to develop specific decentralised financial instruments in support of this objective;










43.


would emphasise the need for the European institutions to set a sufficiently long implementation time to allow the local and regional authorities to apply any measures which the EU may yet adopt in the area of energy performance and energy efficiency and to ensure that projects presented are of high quality;










44.


urges, in the light of the important role that local and regional authorities play in fulfilling energy efficiency and energy related requirements, that a greater number of more powerful financial instruments be drawn up at European level in order to support the efforts of local and regional authorities to invest in sustainable energies. This would make it possible to overcome the difficulties that are all too often present at national level such as the under-utilisation of available funding due to overly stringent regulations or local actors’ insufficient knowledge of the funding opportunities available;










45.


reiterates the position outlined in a previous CoR opinion on the greenhouse gas emission allowance trading after 2012, which recommended that over one-third of its revenues be allocated for massive local and regional investment in future energy efficiency and indigenous renewable supply;










46.


welcomes the reallocation of unused appropriations under Chapter II of Regulation (EC) 663/2009 now made available for the local and regional authorities for sustainable energy projects which would be used for measures that have a rapid, measurable and substantial impact on economic recovery within the EU, increased energy security and reduction of greenhouse gas emissions and in this regard supports the introduction of a permanent financial instrument to provide support for the development of energy efficiency and renewable energy projects and facilitate the funding of investment in these fields by municipal, local and regional public authorities, thereby helping to alleviate the strong external dependency of small, isolated and vulnerable energy systems such as those in the outermost regions;










47.


proposes a gradual review over a sufficient period of time of subsidies for conventional energies in line with the ongoing liberalisation of the energy market in Europe along with public investment in energy distribution companies (public-private partnerships) in order to partially alleviate the effect of higher renewable energy prices. This would also have a beneficial impact on the involvement of SMEs and on local and regional growth and employment, issues highlighted by the EU 2020 Strategy, which should contribute to the economic recovery. However, the access of renewable energy to the grid varies widely across the Member States, and further efforts should be made to ensure adherence to best practices;










48.


suggests that new instruments be conceived as priority lines in the Structural Funds or as a separate Energy Investment Fund which would provide loans and grants with broader eligibility criteria direct at local and regional level for energy efficiency and decentralised energy generation projects and underwrite debt finance for energy companies to invest in low carbon technologies for the production of electricity, heating and cooling;










49.


considers that the ongoing liberalisation of electricity and gas markets in the EU should translate into better opportunities for investment in decentralised energy supply solutions, involving the production of energy from sustainable renewable sources to a far greater extent than at present;










50.


stresses the importance of ensuring the further development of ‘smart grid’ technology which facilitates the move to decentralised energy production using a high percentage of different renewable energy sources;










51.


urges that particular attention be paid to streamlining, improving the transparency and reducing the timescales and costs of authorisation procedures for the planning of decentralised energy production and transport structures;










52.


also stresses the need to ensure the acceptance by the local population of decentralised energy supply and, in particular, of the fact that, with current production methods, renewable energy is often more expensive than traditional sources of energy and to this end, a more prominent role should be given to low-power (less than 100 kW) distributed generation (photovoltaic and wind). Moreover, it is often necessary to inform the local population about the construction of new power transmission lines. Green NGOs and associations can act as an intermediary between civil society and local and regional authorities in order to both support and back the latter in their implementation of energy and climate change plans and projects and to inform the public about them. More attention should be paid to highlighting the long-term benefits for the local security of supply;










53.


calls for particular efforts to be made to take account of the views of local and regional authorities and the public regarding waste energy storage and treatment and the potential advantages of these methods. Existing mediation and information tools should be strengthened;










54.


stresses the major role played by local and regional energy agencies in implementing the EU’s energy policy and legislation; they act as a sounding board between European, national and local politicians and the consumer. Their work to inform and raise public awareness about issues such as energy saving and renewable energy sources should be bolstered by comprehensive action at European level to simplify the regulations and administrative rules governing public access to expert advice and the available financial instruments. Such simplification, coupled with better communication about the missions of the various local and regional agencies, is essential to make these agencies as attractive and operational as possible;










55.


calls for more clarity regarding the distribution of roles and responsibilities between the agencies and the local, regional and national institutions and for action to raise the profile of these agencies among both private individuals and businesses;










56.


stresses that the EU’s urban and rural areas could benefit greatly from business activity and the emergence of new markets in the field of energy efficiency and renewable energy. If – as the European Commission forecasts – the renewable energy sector has the potential to create one million additional jobs in Europe by 2020, this will prove the existence of a new balance between EU economic growth and its climate targets;










57.


urges that a thorough impact assessment be conducted to take account of local and regional specific aspects when identifying the possible economic impact and financial and administrative costs of any future EU energy action, particularly in the islands and outermost regions, which are totally isolated from energy systems. As a result of these specific aspects, the ideal energy mix may be different for each region. Furthermore, the impact both of the development of new sources of energy and of the maintenance or disappearance of conventional energies may vary greatly from one region to another;










58.


draws attention to the fact that all new legislation on energy policy should give due consideration to the competences of local and regional authorities in order to ensure the appropriate level of government action, in accordance with the principles of subsidiarity and proportionality.





Brussels, 1 December 2010.


The President of the Committee of the Regions

Mercedes BRESSO




(1)  Specific issues such as curbing CO2 emissions and the fight against climate change will be covered by a separate CoR opinion in the near future.

(2)  CdR 241/2008 fin.