Source: EURLEX
Language: en
Format: md

**Council of the**
**European Union**

**Interinstitutional File:**

**2019/0110(NLE)**

**PROPOSAL**

**Brussels, 14 May 2019**
**(OR. en)**

**9281/19**

**ENER 268**
**RELEX 499**

From: Secretary-General of the European Commission,
signed by Mr Jordi AYET PUIGARNAU, Director

date of receipt: 14 May 2019

To: Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of
the European Union

No. Cion doc.: COM(2019) 229 final

Subject: Proposal for a COUNCIL DECISION on the position to be taken on behalf
of the European Union in the International Partnership for Energy
Efficiency Cooperation (IPEEC) with regard to the extension of the Terms
of Reference for the IPEEC for the period from 24 May until 31 December
2019

Delegations will find attached document COM(2019) 229 final.

Encl.: COM(2019) 229 final

9281/19 GL/ns

## TREE.2B EN

EUROPEAN

COMMISSION

Brussels, 14.5.2019
COM(2019) 229 final

2019/0110 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the position to be taken on behalf of the European Union in the International**
**Partnership for Energy Efficiency Cooperation (IPEEC) with regard to the extension of**

**the Terms of Reference for the IPEEC for the period from 24 May until 31 December**

**2019**

# **EN EN**

**EXPLANATORY MEMORANDUM**

**1.** **S** **UBJECT MATTER OF THE PROPOSAL**

This proposal concerns the decision establishing the position to be taken on the Union's behalf
in the Policy Committee of the International Partnership for Energy Efficiency Cooperation
(IPEEC) in connection with the envisaged adoption of the extension of the existing Terms of
Reference of the International Partnership for Energy Efficiency Cooperation for the period
from 24 May until 31 December 2019.

**2.** **C** **ONTEXT OF THE PROPOSAL**

**2.1.** **The International Partnership for Energy Efficiency Cooperation**

At the initiative of the European Commission, in June 2008, members of the G8, China, India
and South Korea and the Commission decided to establish an International Partnership for
Energy Efficiency Cooperation (IPEEC), which is to facilitate those actions that yield high
energy efficiency gains. The IPEEC provides a forum for discussion, consultation and
exchange of information. It played an important role during the last years in ensuring overall
coordination and supporting collaboration under the G20 Energy Efficiency programme. The
IPEEC is open to other countries and intergovernmental organisations.

On 24 May 2009, the Terms of Reference for the International Partnership for Energy
Efficiency Cooperation ("the Terms of Reference" or “ToR”) were signed in Rome for a
period of 10 years (until 24 May 2019) by 12 States, including four Member States of the
European Union.

Article 4.2 of the Terms of Reference provides that IPEEC is open to intergovernmental
organisations and that membership is contingent upon the signature of those ToR.
Consequently, the Union signed and concluded them pursuant to Council Decision
2009/954/EC [1] .

The Terms of Reference describe the cooperative activities of the IPEEC, establish its
organisation, define the criteria for potential new members and contain general provisions
regarding, including the funding of the Partnership and intellectual property rights.

Both the Union and its Member States have competence in the areas covered by the Terms of
Reference. Consequently, coherent positions need to be taken in conformity with their
respective competences and in particular with regard to environment and energy.

The IPEEC is managed by a Secretariat which organises meetings of its Policy Committee
and its Executive Committee. The Secretariat also provides support to existing task groups,
and maintains communication among the IPEEC Members and the broader energy policy
community.

Pursuant to point 7.1 of the ToR, they are valid for a period of 10 years, until 24 May 2019,
unless extended or discontinued by the Members.

[The Secretariat is hosted by the International Energy Agency (IEA) in Paris, France. On 24](http://www.iea.org/)
May and 22 June 2009, respectively, a Memorandum concerning the hosting by the

1 Council Decision 2009/954/EC [1] of 30 November 2009 on the signing and conclusion of the Terms of
Reference for the International Partnership for Energy Efficiency Cooperation (IPEEC) and the
Memorandum concerning the hosting by the International Energy Agency of the Secretariat to the
International Partnership for Energy Efficiency Cooperation by the European Community (OJ L 330,
16.12.2009, p. 37).

# EN 1 EN

International Energy Agency of the Secretariat to the IPEEC ("the Memorandum") was signed
in Rome by 12 States, including four Member States of the Union. The IEA signed the
Memorandum on 18 June 2009, and the Union also signed and concluded the Memorandum
pursuant to Council Decision 2009/954/EC [2] .

The Memorandum describes the general principles regarding the organisation of the
Secretariat, and contains provisions regarding the staffing of the Secretariat and recruitment,
as well as regarding the issues of funding and budgetary procedures. The European Union
pays a contribution to the IPEEC for its administrative expenses.

Pursuant to point 17 of the Memorandum, “ _This Memorandum may be ended by the IEA or_
_the Executive Committee_ [of IPEEC] _at any time. They should endeavour to provide no less_
_than twelve months’ prior written notice to each other in this event_ ”. It is inferred from this
point that the Memorandum was concluded _sine die_ .

**2.2.** **The Policy Committee of the IPEEC**

The Policy Committee (currently chaired by the European Commission) governs IPEEC’s
overall framework and policy initiatives, and evaluates the progress of IPEEC’s work within
the context of broad strategic priorities. The Policy Committee is composed of a high-level
representative of each Member.

Next to the Policy Committee, there is an Executive Committee (currently chaired by
Canada), composed of a mid-level representative of each Member, and which adopts the
proposals of member countries and examines membership requests. It also develops proposals
for task groups, monitors task group progress, approves the annual programme of work and
the budget, and provides guidance to the IPEEC Secretariat.

Pursuant to point 3.4 of the ToR, the Policy Committee and the Executive Committee should
make decisions on the basis of consensus, except as otherwise provided.

The position in the IPEEC Secretariat is that the Policy Committee has the authority to extend
the IPEEC’s ToR in its role as plenary body composed of high-level representatives of all the
IPEEC Members.

**2.3.** **The envisaged act of the Policy Committee**

On 21 February 2019, during the 16th meeting of the Policy Committee, the IPEEC Members
adopted a decision extending the duration of the IPEEC’s ToR until 31 December 2019
without prejudice to the position of the Union still to be expressed following the procedure
under Article 218(9) of the TFEU.

The short-term extension of the IPEEC’s ToR was proposed by the IPEEC Secretariat in order
to avoid an abrupt termination of IPEEC’s activities on 24 May 2019 when the 10-year
duration period provided for in the ToR will expire.

In 2017, in order ‘to strengthen international collaboration on energy efficiency, avoid
duplication of work streams among international organisations working on energy efficiency,
and create opportunities for more efficient use of resources with greater impact of the
collaboration’, the German G20 Presidency proposed to explore setting up an Energy
Efficiency HUB (the ‘Hub’). Following intense negotiations, a proposal was tabled to set up
such a Hub under the IEA, which would achieve synergies between the IPEEC and the IEA

2 Council Decision 2009/954/EC [2] of 30 November 2009 _(OJ L 330, 16.12.2009, p. 37–47_ ).

# EN 2 EN

and secure the continuation of IPEEC’s work following the expiry of the IPEEC Terms of
Reference on 24 May 2019.

On 20 February 2019, the IEA Governing Board approved the establishment of the Energy
Efficiency Hub as a Special Activity under Article 65 of the Agreement on an International
Energy Program, for an initial period of five years. The Governing Board further agreed that
if the IPEEC Members decided to extend the IPEEC Terms of Reference, the IEA would
continue hosting the IPEEC Secretariat until 31 December 2019, provided that adequate
funding and commitments have been received before 23 May 2019 to cover the expenses of
the extension period.

Against this background, an extension of the duration of the IPEEC ToR would provide the
additional time to discuss and decide the transition of the IPEEC into the new Energy
Efficiency HUB

Operationally, an extension until 31 December 2019 takes into account the continued delivery
of IPEEC’s programme of work and core services to the IPEEC Members. This includes, for
instance, energy efficiency work under the G20, which this year will include events scheduled
after the end of IPEEC’s current mandate on 24 May. The availability of funds to cover
activities during the extension period is also considered, as the IPEEC Secretariat is currently
receiving contributions for the full 2019 calendar year.

The payment will be made for 2019 and the funds will be used for the functioning of the
IPEEC secretariat until the end of the year 2019 and if there will be remaining funds, these
would support the continuation of activities by its successor. If there is no international
cooperation related to IPEEC or its successor, before the end of the year 2019, the funds
would normally be returned along the procedures of the IEA.

The envisaged decision will become binding on the parties in accordance with point 7.1 of the
Agreement.

**3.** **P** **OSITION TO BE TAKEN ON THE** **U** **NION** **'** **S BEHALF**

In view of the reasons explained in the section above, the IPEEC Members, during the 16 [th]
meeting of the Policy Committee on 21 February decided on the following, without prejudice
and subject to the position of the Union still to be expressed following the procedure under
Article 218(9) TFEU:

    - Approved the extension of the Terms of Reference of the International Partnership
for Energy Efficiency Cooperation for the period from 24 May until 31 December
2019;

    - Welcomed the IEA Governing Board decision to continue hosting the IPEEC
Secretariat at the IEA until 31 December 2019 on the basis of the Memorandum;

    - Instructed the IPEEC Secretariat to secure the administrative continuity of the IPEEC
for the period of extension, including working with the IEA to extend staff contracts
and preparing a revised 2019 Programme of Work and Budget for approval at the
next ExCo meeting on 28-29 March 2019;

    - Called on Members to do their best effort to provide their 2019 Voluntary
Contribution (VC) and submit the VC letters at the latest by 22 May 2019. The
intention of submitting such VCs should be communicated to the Secretariat by the
time of the ExCo on 28-29 March;

# EN 3 EN

    - Welcomed the IEA Governing Board decision to host the Secretariat of the Energy
Efficiency Hub at the IEA and acknowledged the related information note circulated
to Policy Committee Members;

    - Acknowledging that the Energy Efficiency Hub will not constitute a new entity or
institution but transform the work of the IPEEC into a new and stronger vehicle for
global energy efficiency collaboration, instructed the IPEEC Secretariat to work with
the IEA and interested Members to establish and operationalise the Hub;

    - Required the Policy Committee Chair and Vice-Chairs, together with the other
interested countries, to work with the IPEEC and the IEA Secretariats with a view to
conclude the process of establishing the Energy Efficiency Hub in the course of the
year; and

    - Endorsed the continued smooth administrative transition of the IPEEC into the Hub,
in particular in relation to the transfer of Task Groups, funds and the IPEEC
Secretariat staff.

It is proposed that the Union agrees with this decision.

**4.** **L** **EGAL BASIS**

**4.1.** **Procedural legal basis**

_4.1.1._ _Principles_

Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for
decisions establishing ‘ _the positions to be adopted on the Union’s behalf in a body set up by_
_an agreement, when that body is called upon to adopt acts having legal effects, with the_
_exception of acts supplementing or amending the institutional framework of the agreement_ .’

The concept of ‘ _acts having legal effects_ ’ includes acts that have legal effects by virtue of the
rules of international law governing the body in question. It also includes instruments that do
not have a binding effect under international law, but that are ‘ _capable of decisively_
’ [3]
_influencing the content of the legislation adopted by the EU legislature_ .

_4.1.2._ _Application to the present case_

The IPEEC is a body set up by an agreement, namely the Terms of Reference for the
International Partnership for Energy Efficiency Cooperation ("the Terms of Reference" or
“ToR”).

The act which the IPEEC is called upon to adopt constitutes an act having legal effects. The
envisaged act will be binding under international law in accordance with point 7.1 of the
Terms of Reference because it extends in time the commitments undertaken by the Members
of the IPEEC when concluding the original ToR.

The envisaged act does not supplement or amend the institutional framework of the
Agreement; the institutional framework created by the ToR remains intact.

Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.

3 Judgment of the Court of Justice of 7 October 2014, Germany v Council, C-399/12,
ECLI:EU:C:2014:2258, paragraphs 61to 64.

# EN 4 EN

**4.2.** **Substantive legal basis**

_4.2.1._ _Principles_

The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on
the objective and content of the envisaged act in respect of which a position is taken on the
Union's behalf. If the envisaged act pursues two aims or has two components and if one of
those aims or components is identifiable as the main one, whereas the other is merely
incidental, the decision under Article 218(9) TFEU must be founded on a single substantive
legal basis, namely that required by the main or predominant aim or component.

_4.2.2._ _Application to the present case_

The main objective and content of the envisaged act relate to the promotion of energy
efficiency within the field of energy.

Therefore, the substantive legal basis of the proposed decision is Article 194(2) TFEU.[ _Please_
_use abbreviations consistently throughout the text_ ]

**4.3.** **Conclusion**

The legal basis of the proposed decision should be Article 194(2), in conjunction with Article
218(9) TFEU.

# EN 5 EN

2019/0110 (NLE)

Proposal for a

**COUNCIL DECISION**

**on the position to be taken on behalf of the European Union in the International**
**Partnership for Energy Efficiency Cooperation (IPEEC) with regard to the extension of**

**the Terms of Reference for the IPEEC for the period from 24 May until 31 December**

**2019**

**THE COUNCIL OF THE EUROPEAN UNION,**

Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 194(2), in conjunction with Article 218(9) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1) The Terms of Reference for the International Partnership for Energy Efficiency
Cooperation (IPEEC) (‘the Agreement’) commenced on 24 May 2009 and were
concluded by the Union by Council Decision 2009/954/EC [4] .

(2) Pursuant to point 7.1 of the Agreement, the Members of the IPEEC may decide to
extend its duration. The Policy Committee, being IPEEC’s plenary body composed of
high-level representatives of all its Members, and being entrusted to govern the overall
framework and policies of the IPEEC, is the appropriate body within which the IPEEC
Members can decide on an extension of the Agreement.

(3) The IPEEC Members, except for the Union, approved the extension of the IPEEC
Terms of Reference for the period from 24 May until 31 December 2019 at the Policy
Committee meeting on 21 February 2019.

(4) It is appropriate to establish the position on the extension of the IPEEC terms of
reference to be taken on the Union's behalf, as the extension of the Terms of Reference
would be binding on the Union.

(5) The IPEEC Members are considering the possibility to combine the current activities
of IPEEC and the energy efficiency activities of the International Energy Agency
(IEA) into an energy efficiency hub in order to achieve synergies in this area. The
short-term extension of the IPEEC Terms of Reference aims to allow for the necessary
time, as an interim measure, to set up the energy efficiency hub while ensuring that
IPEEC’s activities continue and are transferred without interruption to the new energy
efficiency hub.

4 Council Decision 2009/954/EC of 30 November 2009 on the signing and conclusion of the Terms of
Reference for the International Partnership for Energy Efficiency Cooperation (IPEEC) and the
Memorandum concerning the hosting by the International Energy Agency of the Secretariat to the
International Partnership for Energy Efficiency Cooperation by the European Community (OJ L 330,
16.12.2009, p. 37).

# EN 6 EN

(6) Operationally, an extension until 31 December 2019 takes into account the continued
implementation of IPEEC’s work programme and core services to the IPEEC
Members. This includes energy efficiency work under the G20, which this year will
include events scheduled after the end of IPEEC’s current mandate on 24 May 2019.
The availability of funds to cover activities during the extension period is also
considered, as the IPEEC Secretariat is currently receiving contributions for the full
2019 calendar year and activities, remaining staff and possible resources could be
transferred into the new energy efficiency hub.

(7) A short-term extension of the IPEEC Terms of Reference is therefore important to
avoid an abrupt termination of IPEEC’s activities on 24 May 2019. In accordance with
point 3.4 of the IPEEC Terms of Reference, the final decision on the extension has to
be adopted by consensus of the IPEEC Members,, and following the Policy
Committee meeting of 21 February 2019, the position Council Decision is pending,

HAS ADOPTED THIS DECISION:

_Article 1_

The position to be taken on the Union's behalf shall be the following:

(1) to approve the extension of the Terms of Reference of the IPEEC for the period from
24 May until 31 December 2019;

(2) to agree with the International Energy Agency (IEA) Governing Board decision to
continue hosting the IPEEC Secretariat at the IEA until 31 December 2019 on the
basis of the Memorandum concerning the Hosting by the IEA of the Secretariat to
the IPEEC;

(3) to endorse the administrative transition of the IPEEC into a new energy efficiency
hub, in particular in relation to the transfer of Task Groups, funds and the IPEEC
Secretariat staff.

_Article 2_

This Decision is addressed to the Commission.

Done at Brussels,

_For the Council_

_The President_

# EN 7 EN