CELEX: 51994PC0531
Language: en
Date: 1994-11-25 00:00:00
Title: Recommendation for a COUNCIL DECISION on signature of the Protocol on energy efficiency and related environmental aspects, associated with the European Energy Charter Treaty

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                           COM(94) 531 final
                                                           Brussels, 25.11.1994
                                 Recommendation for a
                                    COUNCIL DECISION
 on signature of the Protocol on energy efficiency and related environmental aspects,
                 associated with the European Energy Charter Treaty
                            (presented by the Commission)
 ---pagebreak---                                   Recommendation for a
                                     COUNCIL DECISION
on signature of the Protocol on energy efficiency and related environmental aspects,
                 associated with the European Energy Charter Treaty
      On 21 September 1994 the Chairman of the Conference for negotiations on the
      European Energy Charter (hereinafter referred to as "the Conference") sent the
      parties negotiating the European Energy Charter Treaty ("the Charter Treaty") a
      draft Protocol on energy efficiency and related environmental aspects ("the Energy
      Efficiency Protocol"). This draft Protocol associated with the Charter Treaty is
     the result of negotiations conducted in parallel to the negotiations on the Charter
     Treaty itself.
     The procedure for signature of the Charter Treaty by the European Communities
     is under way.1 Now it is time to start the procedure to enable the European
     Communities to sign the Energy Efficiency Protocol at the same time as the
     Charter Treaty at the signature ceremony planned in Lisbon on 17
     December 1994.
     The negotiations on the Energy Efficiency Protocol revealed how difficult it was
     for the various parties to the negotiations to strike a balance. Some wanted no
     more than a declaration with no binding force, while others wished to conclude
     an agreement containing extremely ambitious commitments, particularly on
     cooperation with the Eastern European countries, and imposing extremely strict
     obligations on rational use of energy and environmental protection. In view of
     the situation in most Central and Eastern European countries and in the Republics
     of the former Soviet Union today, the European Communities sought to obtain a
     text balanced enough to enable these countries to make substantial progress, in the
     long term, in the areas covered by the Energy Efficiency Protocol, without
     attempting to impose unrealistic obligations.
     The Commission considers that the annexed draft Energy Efficiency Protocol
     circulated by the Chairman of the Conference meets this concern to strike a
     balance. Signature of this Protocol by the European Communities will also make
     a major contribution to the objectives of the programmes developed to assist these
     countries (PHARE and TAOS) in the areas covered by the Protocol.
     Communication from the Commission to the Council and the European Parliament
     COM(94) 405 final of 21 September 1994.
 ---pagebreak--- 4. In accordance with the procedures agreed by the Conference, the text has been
   adopted by written procedure.         In the written adoption procedure, the
   representatives of the Presidency and of the Commission informed the Secrelariat-
   Qeneral of the Conference that the European Communities and their Member
   States considered the negotiations on the Energy Efficiency Protocol completed
   and that the annexed text accurately reflected the outcome of the negotiations.
   Consequently, the Commission confirms its view that the outcome of the
   negotiations puts the European Communities in a position to sign the Energy
   Efficiency Protocol at the same time as signature of the Charter Treaty in Lisbon
   on 17 December 1994.
5. In conclusion, the Commission therefore proposes to the Council:
           to decide on signature of the Protocol on behalf of the European
           Communities;
   and
           to authorize the President of the Council to designate the persons
           empowered to sign on behalf of the European Communities.
 ---pagebreak---           ENERGY CHARTER PROTOCOL ON ENERGY EFFICIENCY
                    AND RELATED ENVIRONMENTAL ASPECTS
                                          PREAMBLE
THE CONTRACTING PARTIES to this Protocol,
Having regard to the European Energy Charter adopted in the Concluding Document of the
Hague Conference on the European Energy Charter, signed at The Hague on 17 December
1991; and in particular to the declarations therein that co-operation is necessary in the field
of energy efficiency and related environmental protection;
Having regard also to the Energy Charter Treaty, opened for signature from 17 December
1994 to 16 June 1995;
Mindful of the work undertaken by international organizations and fora in the field of energy
efficiency and environmental aspects of the energy cycle;
Aware of the improvements in supply security, and of the significant economic and
environmental gains, which result from the implementation of cost-effective energy efficiency
measures; and aware of their importance for restructuring economies and improving living
standards;
Recognizing that improvements in energy efficiency reduce negative environmental
consequences of the energy cycle including global warming and acidification;
Convinced that energy prices should reflect as far as possible a competitive market, ensuring
market-oriented price formation, including fuller reflection of environmental costs and
benefits, and recognizing that such price formation is vital to progress in energy efficiency
and associated environmental protection;
Appreciating the vital role of the private sector including small and medium-sized enterprises
in promoting and implementing energy efficiency measures, and intent on ensuring a
favourable institutional framework for economically viable investment in energy efficiency;
Recognizing that commercial forms of co-operation may need to be                complemented
by intergovernmental co-operation, particularly in the area of energy policy formulation and
analysis as well as in other areas which are essential to the enhancement of energy efficiency
but not suitable for private funding; and
Desiring to undertake co-operative and co-ordinated action in the field of energy efficiency
and related environmental protection and to adopt a Protocol providing a framework for using
energy as economically and efficiently as possible:
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                                f
                                            PARTI
                                      INTRODUCTION
                                          ARTICLE 1
                   SCOPE AND OBJECTIVES OF THE PROTOCOL
(1)    This Protocol defines policy principles for the promotion of energy efficiency as a
       considerable source of energy and for consequently reducing adverse Environmental
       Impacts of energy systems. It furthermore provides guidance on the development of
       energy efficiency programmes, indicates areas of co-operation and provides a
       framework for the development of co-operative and co-ordinated action. Such action
       may include the prospecting for, exploration, production, conversion, storage,
       transport, distribution, and consumption of energy, and may relate to any economic
       sector.
(2)    The objectives of this Protocol are:
       (a)     the promotion of energy efficiency policies consistent with sustainable
               development;
       (b)     the creation of framework conditions which induce producers and consumers
               to use energy as economically, efficiently and environmentally soundly as
               possible, particularly through the organization of efficient energy markets and
               a fuller reflection of environmental costs and benefits; and
       (c)     the fostering of co-operation in the field of energy efficiency.
                                          ARTICLE 2
                                        DEFINITIONS
As used in this Protocol :
(1)    "Charter" means the European Energy Charter adopted in the Concluding Document
       of the Hague Conference on the European Energy Charter signed at The Hague on
       17 December 1991; signature of the Concluding Document is considered to be
       signature of the Charter.
(2)    "Contracting Party" means a state or Regional Economic Integration Organization
      which has consented to be bound by this Protocol and for which the Protocol is in
      force.
(3)    "Regional Economic Integration Organization" means an organization constituted by
       states to which they have transferred competence over certain matters a number of
 ---pagebreak---     which are governed by this Protocol, including the authority to take decisions binding
    on them in respect of those matters.
(4) "Energy Cycle" means the entire energy chain, including activities related to
    prospecting for, exploration, production, conversion, storage, transport, distribution and
    consumption of the various forms of energy, and the treatment and disposal of
    wastes, as well as the decomissioning, cessation or closure of these activities,
    minimizing harmful Environmental Impacts.
(5) "Cost-Effectiveness" means to achieve a defined objective at the lowest cost or to
    achieve the greatest benefit at a given cost.
(6) "Improving Energy Efficiency" means acting to maintain the same unit of output (of
    a good or service) without reducing the quality or performance of the output, while
    reducing the amount of energy required to produce that output.
(7) "Environmental Impact" means any effect caused by a given activity on the
    environment, including human health and safety, flora, fauna, soil, air, water, climate,
    landscape and historical monuments or other physical structures or the interactions
    among these factors; it also includes effects on cultural heritage or socio-economic
    conditions resulting from alterations to those factors.
 ---pagebreak---                                               <r.
                                           PARTH
                                   POLICY PRINCIPLES
                                         ARTICLE 3
                                    BASIC PRINCIPLES
Contracting Parties shall be guided by the following principles:
(1)    Contracting Parties shall co-operate and, as appropriate, assist each other in
       developing and implementing energy efficiency policies, laws and regulations.
(2)    Contracting Parties shall establish energy efficiency policies and appropriate legal and
       regulatory frameworks which promote, inter alia:
       (a)     efficient functioning of market mechanisms including market-oriented price
               formation and a fuller reflection of environmental costs and benefits;
       (b)     reduction of barriers to energy efficiency, thus stimulating investments;
       (c)     mechanisms for financing energy efficiency initiatives;
       (d)     education and awareness;
       (e)     dissemination and transfer of technologies;
       (f)     transparency of legal and regulatory frameworks.
(3)    Contracting Parties shall strive to achieve the full benefit of energy efficiency
       throughout the Energy Cycle. To this end they shall, to the best of their competence,
       formulate and implement energy efficiency policies and co-operative or co-ordinated
       actions based on Cost-Effectiveness and economic efficiency, taking due account of
       environmental aspects.
(4)    Energy efficiency policies shall include both short-term measures for the adjustment
       of previous practices and long-term measures to improve energy efficiency throughout
       the Energy Cycle.
(5)    When co-operating to achieve the objectives of this Protocol, Contracting Parties shall
       take into account the differences in adverse effects and abatement costs between
       Contracting Parties.
(6)    Contracting Parties recognize the vital role of the private sector. They shall encourage
       action by energy utilities, responsible authorities and specialised agencies, and close
       co-operation between industry and administrations.
 ---pagebreak---                                                f
(7)     Co-operative or co-ordinated action shall take into account relevant principles adopted
        in international agreements, aimed at protection and improvement of the environment,
        to which Contracting Parties are parties.
(8)     Contracting Parties shall take full advantage of the work and expertise of competent
        international or other bodies and shall take care to avoid duplication.
                                            ARTICLE 4
               DIVISION OF RESPONSIBILITY AND CO-ORDINATION
Each Contracting Party shall strive to ensure that energy efficiency policies are co-ordinated
among all of its responsible authorities.
                                            ARTICLE 5
                             STRATEGIES AND POLICY AIMS
Contracting Parties shall formulate strategies and policy aims for Improving Energy Efficiency
and thereby reducing Environmental Impacts of the Energy Cycle as appropriate in relation
to their own specific energy conditions. These strategies and policy aims shall be transparent
to all interested parties.
                                            ARTICLE 6
                       FINANCING AND FINANCIAL INCENTIVES
(1)      Contracting Parties shall encourage the implementation of new approaches and
         methods for financing energy efficiency and energyrelated environmental protection
         investments, such as joint venture arrangements between energy users and external
         investors (hereinafter referred to as "Third Party Financing").
(2)      Contracting Parties shall endeavour to take advantage of and promote access to private
         capital markets and existing international financing institutions in order to facilitate
         investments in Improving Energy Efficiency and in environmental protection related
         to energy efficiency.
(3)      Contracting Parties may, subject to the provisions of the Energy Charter Treaty and
         to their other international legal obligations, provide fiscal or financial incentives to
         energy users in order to facilitate market penetration of energy efficiency technologies,
         products and services. They shall strive to do so in a manner that both ensures
         transparency and minimizes thé distortion of international markets.
 ---pagebreak---                                     ARTICLE 7
          PROMOTION OF ENERGY EFFICIENT TECHNOLOGY
(1) Consistent with the provisions of the Energy Charter Treaty, Contracting Parties shall
    encourage commercial trade and co-operation in energy efficient and environmentally
    sound technologies, energy related services and management practices.
(2) Contracting Parties shall promote the use of these technologies, services and
    management practices throughout the Energy Cycle.
                                    ARTICLE 8
                           DOMESTIC PROGRAMMES
(1) In order to achieve the policy aims formulated according to Article 5, each
    Contracting Party shall develop, implement and regularly update energy efficiency
    programmes best suited to its circumstances.
(2) These programmes may include activities such as the:
    (a)    development of long-term energy demand and supply scenarios to guide
           decision-making;
    (b)    assessment of the energy, environmental and economic impact of actions taken;
    (c)    definition of standards designed to improve the efficiency of energy using
           equipment, and efforts to harmonize these internationally to avoid trade
           distortions;
    (d)    development and encouragement of private initiative and industrial co-
           operation, including joint ventures;
    (e)    promotion of the use of the most energy efficient technologies that are
           economically viable and environmentally sound;
    (f)    encouragement of innovative approaches for investments in energy efficiency
           improvements, such as Third Party Financing and co-financing;
    (g)    development of appropriate energy balances and data bases, for example with
           data on energy demand at a sufficiently detailed level and on technologies for
           Improving Energy Efficiency;
    (h)    promotion of the creation of advisory and consultancy services which may be
           operated by public or private industry or utilities and which provide
           information about energy efficiency programmes and technologies, and assist
           consumers and enterprises;
 ---pagebreak---                                           -s
    (i)    support and promotion of cogeneration and of measures to increase the
           efficiency of district heat production and distribution systems to buildings and
           industry;
    (j)    establishment of specialized energy efficiency bodies at appropriate levels, that
           are sufficiently funded and staffed to develop and implement policies.
(3) In implementing their energy efficiency programmes, Contracting Parties shall ensure
    that adequate institutional and legal infrastructures exist.
 ---pagebreak---                                           PARTffl
                          INTERNATIONAL CO-OPERATION
                                         ARTICLED
                               AREAS OF CO-OPERATION
The co-operation between Contracting Parties may take any appropriate form. Areas of
possible co-operation are listed in the Annex.
 ---pagebreak---                                           yH
                                      PART IV
              ADMINISTRATIVE AND LEGAL ARRANGEMENTS
                                    ARTICLE 10
                   ROLE OF THE CHARTER CONFERENCE
(1) All decisions made by the Charter Conference in accordance with this Protocol shall
    be made by only those Contracting Parties to the Energy Charter Treaty who are
    Contracting Parties to this Protocol.
(2) The Charter Conference shall endeavour to adopt, within 180 days after the entry into
    force of this Protocol, procedures for keeping under review and facilitating the
    implementation of its provisions, including reporting requirements, as well as for
    identifying areas of co-operation in accordance with Article 9.
                                    ARTICLE 11
                        SECRETARIAT AND FINANCING
(1) The Secretariat established under Article 35 of the Energy Charter Treaty shall provide
    the Charter Conference with all necessary assistance for the performance of its duties
    under this Protocol and provide such other services in support of the Protocol as may
    be required from time to time, subject to approval by the Charter Conference.
(2) The costs of the Secretariat and Charter Conference arising from this Protocol shall
    be met by the Contracting Parties to this Protocol according to their capacity to pay,
    determined according to the formula specified in Annex B to the Energy Charter
    Treaty.
                                     ARTICLE 12
                                       VOTING
(1) Unanimity of Contracting Parties Present and Voting at the meeting of the Charter
    Conference where such matters fall to be decided shall be required for decisions to:
    (a)     adopt amendments to this Protocol; and
    (b)     approve accessions to this Protocol under Article Vf.
     Contracting Parties shall make every effort to reach agreement by consensus on any
     other matter requiring their decision under this Protocol. If agreement cannot be
     reached by consensus, decisions on non-budgetary matters shall be taken by a three-
 ---pagebreak---                                           - 1*-
    fourths majority of Contracting Parties Present and Voting at the meeting of the
    Charter Conference at which such matters fall to be decided.
    Decisions on budgetary matters shall be taken by a qualified majority of Contracting
    Parties whose assessed contributions under Article 11(2) represent, in combination, at
    least three-fourths of the total assessed contributions.
(2) For purposes of this Article, "Contracting Parties Present and Voting" means
    Contracting Parties to this Protocol present and casting affirmative or negative votes,
    provided that the Charter Conference may decide upon rules of procedure to enable
    such decisions to be taken by Contracting Parties by correspondence.
(3) Except as provided in paragraph (1) in relation to budgetary matters, no decision
    referred to in this Article shall be valid unless it has the support of a simple majority
    of Contracting Parties.
(4) A Regional Economic Integration Organization shall, when voting, have a number of
    votes equal to the number of its member states which are Contracting Parties to this
    Protocol; provided that such an Organization shall not exercise its right to vote if its
    member states exercise theirs, and vice versa.
(5) In the event of persistent arrears in a Contracting Party's discharge of financial
    obligations under this Protocol, the Charter Conference may suspend that Contracting
    Party's voting rights in whole or in part.
                                      ARTICLE 13
               RELATION TO THE ENERGY CHARTER TREATY
(1) In the event of inconsistency between the provisions of this Protocol and the
    provisions of the Energy Charter Treaty, the provisions of the Energy Charter Treaty
    shall, to the extent of the inconsistency, prevail.
(2) Article 10(1) and Article 12(1) to (3) shall not apply to votes in the Charter
    Conference on amendments to this Protocol which assign duties or functions to the
    Charter Conference or the Secretariat, the establishment of which is provided for in
    the Energy Charter Treaty.
 ---pagebreak---                                               3
                                           PART V
                                   FINAL PROVISIONS
                                        ARTICLE 14
                                        SIGNATURE
This Protocol shall be open for signature at Lisbon from 17 December 1994 to 16 June 1995
by the states and Regional Economic Integration Organizations whose representatives have
signed the Charter and the Energy Charter Treaty.
                                        ARTICLE 15
                   RATIFICATION, ACCEPTANCE OR APPROVAL
This Protocol shall be subject to ratification, acceptance or approval by signatories.
Instruments of ratification, acceptance or approval shall be deposited with the Depositary.
                                        ARTICLE 16
                                        ACCESSION
This Protocol shall be open for accession, from the date on which the Protocol is closed for
signature, by states and Regional Economic Integration Organizations which have signed the
Charter and are Contracting Parties to the Energy Charter Treaty, on terms to be approved by
the Charter Conference. The instruments of accession shall be deposited with the Depositary.
                                         ARTICLE 17
                                      AMENDMENTS
(1)    Any Contracting Party may propose amendments to this Protocol.
(2)    The text of any proposed amendment to this Protocol shall be communicated to
        Contracting Parties by the Secretariat at least three months before the date on which
       it is proposed for adoption by the Charter Conference.
(3)    Amendments to this Protocol, texts of which have been adopted by the Charter
        Conference, shall be communicated by the Secretariat to the Depositary which shall
        submit them to all Contracting Parties for ratification, acceptance or approval.
(4)    Instruments of ratification, acceptance or approval of amendments to this Protocol
        shall be deposited with the Depositary. Amendments shall enter into force between
 ---pagebreak---                                                f
       Contracting Parties having ratified, accepted or approved them on the thirtieth day
       after deposit with the Depositary of instruments of ratification, acceptance or approval
       by at least three-fourths of the Contracting Parties. Thereafter the amendments shall
       enter into force for any other Contracting Party on the thirtieth day after that
       Contracting Party deposits its instrument of ratification, acceptance or approval of the
       amendments.
                                        ARTICLE 18
                                   ENTRY INTO FORCE
(1)    This Protocol shall enter into force on the thirtieth day after the date of deposit of the
       fifteenth instrument of ratification, acceptance or approval thereof, or of accession
       thereto, by a state or Regional Economic Integration Organization which is a signatory
       to the Charter and a Contracting Party to the Energy Charter Treaty or on the same
       date as the Energy Charter Treaty enters into force, whichever is later.
(2)    For each state or Regional Economic Integration Organization for which the Energy
       Charter Treaty has entered into force and which ratifies, accepts, or approves this
       Protocol or accedes thereto after the Protocol has entered into force in accordance with
       paragraph (1), the Protocol shall enter into force on the thirtieth day after the date of
       deposit by such state or Regional Economic Integration Organization of its instrument
       of ratification, acceptance, approval or accession.
(3)    For the purposes of paragraph (1), any instrument deposited by a Regional Economic
       Integration Organization shall not be counted as additional to those deposited by
       member states of such Organization.
                                        ARTICLE 19
                                      RESERVATIONS
No reservations may be made to this Protocol.
                                        ARTICLE 20
                                       WITHDRAWAL
(1)    At any. time after this Protocol has entered into force for a Contracting Party, that
       Contracting Party may give written notification to the Depositary of its withdrawal
       from the Protocol.
(2)    Any Contracting Party which withdraws from the Energy Charter Treaty shall be
       considered as also having withdrawn from this Protocol.
 ---pagebreak---                                               IT-
(3)    The effective date of withdrawal under paragraph (1) shall be ninety days after receipt
       of notification by the Depositary. The effective date of withdrawal under paragraph(2)
       shall be the same as the effective date of withdrawal from the Energy Charter Treaty.
                                        ARTICLE 21
                                       DEPOSITARY
The Government of the Portuguese Republic shall be the Depositary of this Protocol.
                                        ARTICLE 22
                                   AUTHENTIC TEXTS
In witness whereof the undersigned, being duly authorized to that effect, have signed this
Protocol in English, French, German, Italian, Russian and Spanish, of which every text is
equally authentic, in one original, which will be deposited with the Government of the
Portuguese Republic.
Done at Lisbon on the seventeenth day of December in the year one thousand nine hundred
and ninety-four.
 ---pagebreak---                                                \é-
                                                                                       ANNEX
                    ILLUSTRATIVE AND NON-EXHAUSTIVE LIST
     OF POSSIBLE AREAS OF CO-OPERATION PURSUANT TO ARTICLE 9
Development of energy efficiency programmes, including identifying energy efficiency
barriers and potentials, and the development of energy labelling and efficiency standards;
Assessment of the Environmental Impacts of the Energy Cycle;
Development of economic, legislative and regulatory measures;
Technology transfer, technical assistance and industrial joint ventures subject to international
property rights regimes and other applicable international agreements;
Research and development;
Education, training, information and statistics;
Identification and assessment of measures such as fiscal or other market-based instruments,
including tradeable permits to take account of external, notably environmental, costs and
benefits.
Energy analysis and policy formulation:
        assessment of energy efficiency potentials;
        energy demand analysis and statistics;
        development of legislative and regulatory measures;
        integrated resource planning and demand side management;
        Environmental Impact assessment, including major energy projects.
Evaluation of economic instruments for Improving Energy Efficiency and environmental
objectives.
Energy efficiency analysis in refining, conversion, transport and distribution of hydro-carbons.
Improving Energy Efficiency in power generation and transmission:
        cogeneration;
        plant component (boilers, turbines, generators, etc);
        network integration.
Improving Energy Efficiency in the building sector:
        thermal insulation standards, passive solar and ventilation;
        space heating and air conditioning systems;
 ---pagebreak---                                               f
       high efficiency low NOx burners;
       metering technologies and individual metering;
       domestic appliances and lighting.
Municipalities and local community services:
       district heating systems;
-      efficient gas distribution systems;
       energy planning technologies;
       twinning of towns or of other relevant territorial entities;
-      energy management in cities and in public buildings;
       waste management and energy recovery of waste.
Improving Energy Efficiency in the industrial sector:
       joint ventures;
       energy cascading, cogeneration and waste heat recovery;
       energy audits.
Improving Energy Efficiency in the transport sector:
       motor vehicle performance standards;
       development of efficient transport infrastructures.
Information:
       awareness creation;
       data bases: access, technical specifications, information systems;
       dissemination, collection and collation of technical information;
       behavioural studies.
Training and education:
       exchanges of energy managers, officials, engineers and students;
       organization of international training courses.
Financing:
       development of legal framework;
       Third Party Financing;
       joint ventures;
       co-financing.
 ---pagebreak---                                                 I*
                                                                     ISSN 0254-1475
                                                                      E
                                Catalogue number : CB-CO-94-552-EN-C
                                                             ISBN 92-77-82691-6
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