CELEX: 51997PC0436
Language: en
Date: 1997-08-26
Title: Amended proposal for a Council Decision concerning the organisation of cooperation around agreed Community energy objectives

COMMISSION OF THE EUROPEAN COMMUNITIES
                                      Brussels, 26.08.1997
                                      COMC97) 436 final
                                      96/0218 (CNS )
                    Amended proposal for a
                    COUNCIL DECISION
         CONCERNING THE ORGANISATION OF
COOPERATION AROUND AGREED COMMUNITY ENERGY
                        OBJECTIVES
  (presented by the Commission pursuant to Article 189 a (2)
                      of the EC-Treaty)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MEMORANDUM
Subject:        Amended Proposal for a Council Decision: The organisation of the
                co-operation around agreed Community energy objectives.
                COM(96)0431 - 96/0218(CNS)
Legal base:     Art 130.3
The above-mentioned draft Council Decision was approved by the Commission on
4 October 1996 and published in the Official Journal No C. 27/9 of 28 January 1997.
The Committee on Research, Technological Development and Energy (CERT) of the
European Parliament appointed Mr U Stockmann as Rapporteur. After having
received the advice of the Committee on Legal Affairs and Citizen's rights and the
Committee on Economic and Monetary Affairs and Industrial Policy, the CERT
approved, in April 1997, the Stockmann report. A plenary debate and vote took place
in Strasbourg on 15 May 1997.
At this debate Commissioner Papoutsis:
- accepted the amendments N°s 2, 3, 12, 5, 8, part 1, and 3 of 11 and 15;
- proposed a compromise for the first part of amendment 6;
- rejected amendments 4, 7, 9, and the second and the fourth part of 11.
Reasons why the following amendments were acceptable.
Amendment 2. 6th whereas clause
The Parliament added "whereas they will concentrate on increasing efficiency and on
renewable energy sources and, in the case of nuclear technologies, on safe techniques
for final storage".
This amendment is acceptable. It does not prejudge the use of R&D funds. The
precise R&D priorities will, of course, be established in the discussion on the 5th
Framework programme.
Amendment 3. Article 1
The Parliament added
 - "avoiding surplus capacity", this amendment is acceptable. It avoids dumping into
 other markets;
 - "securing initiatives, including those taken at national level, which are designed to
 promote and develop sustainable energy technologies", this amendment is acceptable.
We should welcome any initiative to promote the introduction of renewables, which is
 an agreed objective of Community energy policy;
 - "reducing energy consumption" this amendment is acceptable. It is coherent with all
 the principal objectives of Community energy policy.
Amendment 12. Article 2 paragraph 2. new point
 - "the development and rapid introduction of a taxation or incentive system
 commensurate with sustainable energy policy objectives", this amendment is
 acceptable. Such systems can contribute to the realisation of our energy objectives.
                                            Z,
 ---pagebreak--- Amendment 5. Article 2 paragraph 2
Adding:
- " In the framework of its responsibilities under the Treaty, and in compliance with the
principle of subsidiarity, the Commission will propose specific Community actions
and/or programmes to attain the agreed energy policy objectives listed in the Annex";
this is acceptable. It confirms the active role of the Commission in energy policy.
Amendment 6. Article 3 paragraph 2
For the first amendment, a compromise was proposed by adding after 'where
appropriate': "but at least every two years", which assures regularity, but leaves
flexibility for earlier reporting if the situation gives reason for this. This compromise is
acceptable.
The proposed second amendment
- " The report shall also contain a comparative presentation of whether and to what
extent the Member States have made progress towards the achievement of the agreed
energy policy objectives", is just a clarification of an essential element of the report.
Amendment 8. first part annex point 3
The Parliament deleted
- " undistorted prices" and added:
- "taking into account the goal of environmentally sustainable development - operate
on the basis of fair competition", this is acceptable. It underlines competition as a base
for pricing. Furthermore, it gives the possibility to promote environment friendly
energies.
Amendment 15. first part. Annex, point 6
The Parliament added:
- "using the best possible environmentally acceptable technologies", which is
acceptable. This amendment opens the possibility for a European contribution to
global environment problems.
Amendment 11. Annex, paragraph after point 8. hyphens
Two of the four amendments were acceptable.
The Parliament added:
- "harmonisation of framework conditions", which supports the objective of fair
competitiveness and avoids distorted situations in the Member States;
to the 5th hyphen:
- "the fiscal and environmental instruments", which is broader than the fiscal structure
and therefore limits the possibility for distortions.
                                                   3
 ---pagebreak--- The following amendments were rejected.
Amendment 4 (Creation European Climate Change Agency) was not acceptable seeing
the substantial political and institutional consequences.
Amendment 7. would make one (environment protection) out of the three principal
objectives the "Primus inter pares", while the others (competitiveness and security of
supply) are equally important. It would change the balance among the energy policy
objectives.
Amendment 9 , which proposed to "develop a standardised calculation method" for the
internalisation of external costs, is not acceptable. It is too premature to develop a
standardised method.
Amendment 11. second part (introduction of an energy consumption taxation) was
rejected. The Commission recently proposed a general taxation on energy products.
It is preferred to wait the results of the discussion in Council and Parliament before
introducing another taxation.
Amendment 11. fourth part - "formulation and acceptance of a chapter in the EU
Treaty devoted to energy requiring sustainability, energy efficiency, conservation of
resources and preservation of the environment", which is an amendment which
 supports the efforts to get an energy chapter in the Treaty of Amsterdam.
Although Commissioner Papoutsis welcomed this amendment during his reaction at
the Plenary Session of the Parliament, it lost its validity considering the results of the
 Inter-Governmental Conference of Amsterdam.
                                                   V
 ---pagebreak---                            Amended Proposal For a Council Decision
                                           Concerning
     the Organisation of Cooperation Around Agreed Community Energy Objectives
 ORIGINAL TEXT                                     AMENDED TEXT
 THE COUNCIL OF THE EUROPEAN                       THE COUNCIL OF THE EUROPEAN
 UNION                                             UNION
 Having regard to the Treaties, and in particular  Having regard to the Treaties, and in particular
 Article 130(3) of the Treaty establishing the     Article 130(3) of the Treaty establishing the
 European Community,                               European Community,
 Having regard to the proposal from the            Having regard to the proposal from the
 Commission,1                                      Commission,1
 Having regard to the opinion of the European      Having regard to the opinion of the European
 Parliament,2                                      Parliament,2
Having regard to the opinion of the Economic Having regard to the opinion of the Economic
and Social Committee,3                            and Social Committee,3
 Whereas, at the Energy Council of 7 May           Whereas, at the Energy Council of 7 May
 1996, the Council, in its Resolution on the       1996, the Council, in its Resolution on the
 White Paper "An Energy Policy for the             White Paper "An Energy Policy for the
 European Union", invited the Commission to        European Union", invited the Commission to
 put in place a process of co-operation between    put in place a process of co-operation between
 the Community and the Member States in order      the Community and the Member States in order
 to ensure that Community and national energy      to ensure that Community and national energy
 policies are compatible with agreed common        policies are compatible with agreed common
 energy objectives;                                energy objectives;
Whereas, this process needs to be placed in the   Whereas, this process needs to be placed in the
context of a shared analysis of the energy        context of a shared analysis of the energy
situation and of future trends through            situation and of future trends through
cooperation at the Community level between        cooperation at the Community level between
Member States on energy studies;                  Member States on energy studies;
Whereas the promotion of the internal energy      Whereas the promotion of the internal energy
market being a priority task for the Community    market being a priority task for the Community
and the Member States, it is important for the    and the Member States, it is important for the
internal energy market that energy trends and     internal energy market that energy trends and
issues be analyzed at the Community level,        issues be analyzed at the Community level,
       JOn°C...
       JO n° C...
       JO n° C...
                                                  X
 ---pagebreak---   through cooperation with the energy sector and through cooperation with the energy sector and
 by mobilising all the local, regional, national by mobilising all the local, regional, national
 and Community elements concerned;                and Community elements concerned;
 Whereas, this process of cooperation, with due   Whereas, this process of cooperation, with due
 regard to the principle of subsidiarity, must    regard to the principle of subsidiarity, must
 ensure a maximum of coherence and                ensure a maximum of coherence and
 convergence in relation to agreed energy         convergence in relation to agreed energy
 objectives if the Community's economic and       objectives if the Community's economic and
 environmental policy goals are to be achieved;   environmental policy goals are to be achieved;
 Whereas, the Community has a wide range of       Whereas, the Community has a wide range of
 competencies in the energy sector under the      competencies in the energy sector under the
 existing Treaties but there is still no          existing Treaties but there is still no
 comprehensive energy policy framework;           comprehensive energy policy framework;
 Whereas, the RTD Framework Programmes            Whereas, the RTD Framework Programmes
 based on the EC Treaty and the Euratom Treaty    based on the EC Treaty and the Euratom Treaty
 ensure the development of new energy             ensure the development of new energy
 technologies related to the non-nuclear and      technologies related to the non-nuclear and
 nuclear energy;                                  nuclear energy; whereas they will concentrate
                                                  on increasing efficiency and on renewable
                                                  energy sources and, in the case of nuclear
                                                  technologies, on safe techniques for final
                                                  storage;
Whereas, without prejudice to the existing       Whereas, without prejudice to the existing
 responsibilities of Member States as regards    responsibilities of Member States as regards
 their own energy sectors, the White Paper       their own energy sectors, the White Paper
proposes a new approach to energy policy         proposes a new approach to energy policy
cooperation around agreed energy policy          cooperation around agreed energy policy
objectives and a new approach to monitoring      objectives and a new approach to monitoring
energy trends, in cooperation with the Member    energy trends, in cooperation with the Member
States, which would add value by pinpointing     States, which would add value by pinpointing
and encouraging best practices, by promoting a   and encouraging best practices, by promoting a
cooperative approach to energy studies and       cooperative approach to energy studies and
analysis and by exchanging relevant experience;  analysis and by exchanging relevant experience;
Whereas, a firm commitment to Community          Whereas, a firm commitment to Community
energy objectives by Member States requires      energy objectives by Member States requires
effective cooperation at Community level to      effective cooperation at Community level to
ensure that both national and Community          ensure that both national and Community
energy policies contribute to their attainment;  energy policies contribute to their attainment;
 ---pagebreak--- Whereas, in the framework of this cooperation,  Whereas, in the framework of this cooperation,
the Commission needs to have regular and        the Commission needs to have regular and
appropriate information from Member States so   appropriate information from Member States so
that it can establish periodic reports on the   that it can establish periodic reports on the
extent to which Member States' energy policies  extent to which Member States' energy policies
and Community actions contribute to             and Community actions contribute to
Community energy objectives;                    Community energy objectives;
Whereas these periodic reports that evaluate    Whereas these periodic reports that evaluate
energy developments in a global manner will     energy developments in a global manner will
provide the basis for an examination of energy  provide the basis for an examination of energy
developments in the Council and for the         developments in the Council and for the
Commission to make appropriate new              Commission to make appropriate new
legislative proposals;                          legislative proposals;
Whereas, in order to take account of the        Whereas, in order to take account of the
changing energy situation the Community, on     changing energy situation the Community, on
the basis of a Commission proposal, needs to    the basis of a Commission proposal, needs to
examine periodically, and where necessary to    examine periodically, and where necessary to
update the agreed common objectives;            update the agreed common objectives;
Has decided as follows:                         Has decided as follows:
Article 1                                       Article 1
A framework for energy cooperation between      A framework for energy cooperation between
the Community and the Member States is          the Community and the Member States is
hereby established around agreed Community      hereby established around agreed Community
energy objectives which are set out in annex,   energy objectives which are set out in annex,
and which, while constituting specific measures and which, while constituting specific measures
in support of actions taken in the Member       in support of actions taken in the Member
States, will notably contribute to:             States, will notably contribute to:
- achieving a high level of competitiveness in -    achieving a high level of competitiveness in
   the Community,                                   the Community,
- increasing security of supply,                -   increasing security of supply,
                                                -   avoiding surplus capacity.
- protecting the environment,                   -   protecting the environment,
- promoting the rational and efficient use of -     promoting the rational and efficient use of
   energy resources and new and renewable           energy resources and new and renewable
   energy,                                          energy,
- promoting international energy cooperation -      promoting international energy cooperation
   and liberalisation,                              and liberalisation,
                                          1
 ---pagebreak---                                                        securing initiatives, including those taken at
                                                       national level, which are designed to
                                                      promote and develop sustainable energy
                                                       technologies,
- ensuring transparency of national and               ensuring transparency of national and
   Community energy policy actions,                    Community energy policy actions;
- developing an analysis and monitoring of the        developing an analysis and monitoring of the
   energy market.                                     energy market,
                                                      reducing energy consumption.
Article 2                                          Article 2
1. In order to achieve the agreed energy 1. In order to achieve the agreed energy
objectives described in Article 1, the objectives described in Article 1, the
Commission will ensure the following:              Commission will ensure the following:
1. the monitoring of the impact of agreed 1. the monitoring of the impact of agreed
     common energy objectives of energy                  common energy objectives on energy
     policy developments in Member States and            policy developments in Member States and
     of the evolution of the global energy               of the evolution of the global energy
     situation in view of a possible adaptation of       situation in view of a possible adaptation of
     the common energy objectives set out in             the common energy objectives set out in
     annex;                                              annex;
2.   the scrutiny of Community and national        2. the scrutiny of Community and national
     actions in the energy field and the                 actions in the energy field and the
     exchange of best practices;                         exchange of best practices;
     the monitoring, evaluation and exchange       3. the monitoring, evaluation and exchange
     of energy related information on all aspects        of energy related information on all aspects
     of energy activity;                                 of energy activity;
     the development of cooperation and            4. the development of cooperation and
     linkages in the energy field;                       linkages in the energy field;
5.   the encouragement of the broad                5. the encouragement of the broad
     dissemination of the results obtained from          dissemination of the results obtained from
     the measures in 3 and 4.                            the measures in 3 and 4.
                                                   5b. the development and rapid introduction of
                                                         a      taxation    or    incentive    system
                                                         commensurate with sustainable energy
                                                         policy objectives;
2.   The Commission will examine the               2. In the framework of its responsibilities
     necessity of specific Community actions in    under the Treaty, and in compliance with the
     support of measures taken in the Member       principle of subsidiarity, the Commission will
     States:                                       propose specific Community actions and/or
                                                ^
 ---pagebreak---                                                  programmes to attain the agreed energy policy
                                                 objectives listed in the Annex. It will also
                                                 examine the necessity of specific Community
                                                 actions in support of measures taken in the
                                                 Member States;
Article 3                                        Article 3
1.   The Commission shall be informed 1.              The Commission shall be informed
     annually of the measures taken by Member         annually of the measures taken by Member
     States for achieving the agreed common           States for achieving the agreed common
     energy objectives referred to in the annex       energy objectives referred to in the annex
     and on any other measure relevant to these       and on any other measure relevant to these
     objectives.                                      objectives.
2.   The Commission will prepare on the basis 2.      The Commission will prepare on the basis
     of the information obtained, where               of the information obtained, where
     appropriate, a report in the form of a           appropriate, but at least every two years, a
     Communication, on the compatibility of           report in the form of a Communication, on
     energy policies in the Member States and         the compatibility of energy policies in the
     Community actions in the energy field with       Member States and Community actions in
     the agreed common energy objectives. This        the energy field with the agreed common
     report shall be forwarded to the European        energy objectives. The report shall also
     Parliament, the Council, the Economic and        contain a comparative presentation of
     Social Committee and the Committee of            whether and to what extent the Member
     the Regions;                                     States have made progress towards the
                                                      achievement of the agreed energy policy
                                                      objectives. This report shall be forwarded
                                                      to the European Parliament, the Council,
                                                      the Economic and Social Committee and
                                                      the Committee of the Regions;
Article 4                                        Article 4
This Decision shall enter into force on.... ;    This Decision shall enter into force on.... ;
Article 5                                        Article 5
This Decision shall be published in the Official This Decision shall be published in the Official
Journal of the European Communities.             Journal of the European Communities.
Done at Brussels,                                Done at Brussels,
For the Council,                                 For the Council,
The President                                    The President
 ---pagebreak--- Annex
                         AGREED COMMON ENERGY OBJECTIVES
1. Energy policy at the Community level           1. Energy policy at the Community level
should contribute to the achievement of the       should contribute to the achievement of the
various energy objectives set out in the Treaties various energy objectives set out in the Treaties
notably, market integration, sustainable          notably, market integration,           sustainable
development, environmental protection and         development, environmental protection and
security of supply.                               security of supply.
2. The integration of the Community energy        2. The integration of the Community energy
market, based on the principle of open and        market, based on the principle of open and
competitive markets, is essential for achieving   competitive markets, is essential for achieving
flexibility, efficiency and long-term security in flexibility, efficiency and long-term security in
the energy sector. Integration should take into   the energy sector. Integration should take into
account the diverse energy mix of the Member      account the diverse energy mix of the Member
States, both fossil and non-fossil, and enhance   States, both fossil and non-fossil, and enhance
economic and social cohesion particularly         economic and social cohesion particularly
through the development of trans-European         through the development of trans-European
networks.                                         networks.
3. Transparent and undistorted energy prices      3. Transparent energy prices with the aim of
with the aim of ensuring that markets for all     ensuring that markets for all fuels in the
fuels in the Community work efficiently and       Community work efficiently and - taking into
are fully competitive.                            account the goal of environmentally sustainable
                                                  development         operate on the basis of fair
                                                  competition.
4. In order to achieve the Treaty objective of    4. In order to achieve the Treaty objective of
sustainable       development,     energy     and sustainable       development,     energy      and
environmental objectives need to be integrated.   environmental objectives need to be integrated.
Wherever possible the full cost of energy         Wherever possible the full cost of energy
production and consumption should be reflected    production and consumption should be reflected
in the price. Economic non-fossil fuels such as   in the price. Economic non-fossil fuels such as
renewables and nuclear incorporating the          renewables and nuclear incorporating the
highest safety standards, can make an important   highest safety standards, can make an important
contribution to this goal.                        contribution to this goal.
5. The strengthening of security of supply 5. The strengthening of security of supply
 through improved diversification and flexibility through improved diversification and flexibility
 of domestic and imported supplies, by of domestic and imported supplies, by
                                             ^o
 ---pagebreak--- developing environmentally sound indigenous       developing environmentally sound indigenous
energy resources and by ensuring energy have      energy resources and by ensuring energy have
the ability to respond quickly and flexibly to    the ability to respond quickly and flexibly to
supply emergencies, notably with respect to oil   supply emergencies, notably with respect to oil
and gas.                                          and gas.
6. A coordinated approach to external energy      6. A coordinated approach to external energy
relations in order to ensure free and open trade  relations in order to ensure free and open trade
and a secure framework for energy investments.    and a secure framework for energy investments
Co-operation with non-member countries should     using the best possible environmentally
be developed to enhance energy security, to       acceptable technologies. Co-operation with non-
achieve environmental goals and to stimulate the  member countries should be developed to
development and dissemination of appropriate      enhance       energy      security,  to   achieve
energy technologies to third countries.           environmental goals and to stimulate the
                                                  development and dissemination of appropriate
                                                  energy technologies to third countries.
7. The promotion of renewable energy               7. The promotion of renewable energy
resources through supportive measures at both      resources through supportive measures at both
Community and national level with the aim of       Community and national level with the aim of
achieving for this fuel a significant share of     achieving for this fuel a significant share of
primary energy production in the Community         primary energy production in the Community
by 2010.                                           by 2010.
 8. A significant improvement in energy            8. A significant improvement in energy
efficiency in the Community by the year 2010       efficiency in the Community by the year 2010
 through an improved coordination of both          through an improved coordination of both
 national and Community measures.                  national and Community measures.
 In order to contribute to the achievement of the  In order to contribute to the achievement of the
 above objectives the Community will use the       above objectives the Community will use the
 large range of instruments in the energy sector   large range of instruments in the energy sector
 that are available to it, notably                 that are available to it, notably
                                                         harmonisation of framework conditions.
      research and development and the                   research and development and the
       dissemination of new and improved energy          dissemination of new and improved energy
       technologies,                                     technologies,
      harmonising the fiscal structure on energy         harmonising the fiscal and environmental
       products to avoid distortions,                    instruments on energy products to avoid
      applying the competition rules of the              distortions,
       Treaties with a maximum of transparency           applying the competition rules of the
       and consistency,                                  Treaties with a maximum of transparency
      standardisation in the energy sector,              and consistency,
                                              nt
 ---pagebreak--- monitoring of the internal market,               standardisation in the energy sector,
instruments for cooperation and assistance       monitoring of the internal market,
 with third countries,                           instruments for cooperation and assistance
development of cost-effective instruments        with third countries,
 for limiting the negative environmental         development of cost-effective instruments
 side effects of the production, transport and   for limiting the negative environmental
 use of energy.                                  side effects of the production, transport and
                                                 use of energy,
                                             •OL
 ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(97) 436 final
                                              DOCUMENTS
EN                                                                         12
                                    Catalogue number : CB-CO-97-439-EN-C
                                                             ISBN 92-78-23901-1
Office for Official Publications of the European Communities
L-2985 Luxembourg
                                                  •13