The European Parliament adopted a resolution based on the own-initiative report by Alejo VIDAL-QUADRAS ROCA (EPP-ED, ES) in response to the Commission's Green Paper on energy efficiency. (Please see the document of 25/04/2006.)

The committee adopted the own-initiative report drawn up by Alejo VIDAL-QUADRAS ROCA (EPP-ED, ES) in response to the Commission's Green Paper on energy efficiency. The report said that energy efficiency is the "largest, fastest and cheapest response to the challenges of energy security, rising and volatile energy prices and environmental concerns". It called for existing legislation in the field to be properly implemented and urged the Commission to pursue "a convincing enforcement policy". The Commission was also asked to provide clear and accessible information on the state of implementation of the EU energy directives and to produce monthly updates on its website.

The committee highlighted the many energy efficiency measures already in force, including directives on the energy performance of buildings, combined heat and power, eco-design, emissions trading and energy end-use efficiency. It pointed out that, if this EU legislation was fully implemented by the Member States, the EU would already be half way to meeting its target of saving 20% of energy-use by 2020, and therefore urged the Commission to speed up infringement procedures for Member States not yet complying.

The report called for the Commission's forthcoming Energy Efficiency Action Plan to set a reduction target based on the potential energy savings as evaluated in the Green Paper but taking into account the recent increase in energy prices. It drew attention to the fact that the oil price on which the energy savings target of 20% in the Green Paper was based is now significantly higher, resulting in a substantial increase in the cost-effectiveness of energy efficiency measures. The Action Plan should also set out differing energy efficiency scenarios in order to ascertain the implications for energy use, the energy mix and CO2 reduction.

The committee said that energy efficiency should be incorporated into EU agriculture policy as well as foreign policy. It also stressed the need for a framework directive for energy efficiency in transport, saying that the growth of transport, especially road transport, was one of the main obstacles to curbing Europe's energy demand. The Commission was urged inter alia to submit legislative proposals to achieve "(a) twice as fuel-efficient cars and vans, (b) a transfer of traffic from road and air to rail and water, and (c) more public transport".

Other recommendations included: the creation of an Energy Efficiency Fund to support energy efficiency products; new fiscal measures; the extension of energy efficiency labelling and other consumer information schemes; a European buildings initiative to coordinate upgrading energy standards for new buildings; the encouragement of investment in energy efficiency measures; and the replacement of old household appliances. Both Member States and EU institutions should set an example, with energy efficiency measures in the public sector - including a rethink of the multiple locations of Parliament itself. MEPs also believed that consumers must be clearly and adequately informed, and called for an EU-wide information and awareness-raising campaign on best practice in energy efficiency.

The Council held a policy debate on the Commission's Green Paper on “a European Strategy for

Sustainable, Competitive and Secure Energy”.

At the end of the debate the EU Energy ministers confirmed that a New Energy Policy for Europe is needed.

Regarding environmental sustainability, Member States underlined:

confirming the EU leadership in Energy efficiency by presenting an ambitious but realistic Action Plan on Energy Efficiency, with a view to exploiting fully the potential for 20% energy saving by 2020; confirming the EU leading role in renewables by developing a long term strategy for the effective promotion of renewables (Road Map), and implementing the Biomass Action Plan, considering also long term goals; completing the review of the EU CO2 Emissions Trading Scheme as an instrument to achieve climate change objectives in a cost-effective manner; ensuring adequate support from RD & D national and Community instruments to alternative and renewable energies with a view to increase their part in the energy mix of the European Union; assessment of the potential of the various sectors with respect to the global climate protection goal.

Regarding security of supply, Member States underlined:

Europe should speak with a common voice in support of energy policy objectives when engaging third countries; the development of energy dialogues between the EU and third countries, as regards producer as well as consumer countries; the participation of our neighbouring countries in the European Internal Market, for example through an extension of the Energy Community; development of an authentic and sustainable energy partnership with Russia; intensified diversification of energy sources and with respect to supplier countries and transport routes; ensuring common operational approaches to address crisis situations and to reinforce solidarity; development of proposals on the physical security of networks.

Regarding competitiveness the following issues were mentioned:

ensuring full, effective and transparent implementation of internal market legislation, including as a prerequisite for the stimulation of growth in Europe; accelerating the development of regional energy markets within the EU and their integration into the EU internal market by adequate interconnection; fostering the coherent development of infrastructure, from storage to cross border interconnections, and development of specific priorities for infrastructure. Strengthening of and coordination between Member States' energy regulators have also been mentioned; enhancing transparency in the markets, chiefly in the gas markets, e.g. through the establishment of a European energy observatory.

The President stated that this has been only the first step in the debate and that he was looking forward to summing up the discussion at the upcoming Council meeting in June.

PURPOSE: The presentation of a Commission Green Paper to open a wide-ranging discussion on how to realise energy savings in the EU – “Doing More with Less”.

CONTENT: There are a number of advantages associated with energy efficiency drives, the most obvious being cash savings. According to numerous studies the EU could save at least 20% of its present energy consumption in a cost effective manner – equivalent to EUR 60 billion per year, or the present combined energy consumption of Germany and Finland. On a micro level EU households could save between EUR 200 to EUR 1000 per year. This is not to forget the considerable advantages energy efficiency has on levels of employment across the EU. Compared to other developed nations, the EU is a world leader in offering both new energy equipment and energy services. For example, China presently uses more than five times as much energy as the EU to produce one unit of GDP, the USA approximately 50% more. Some studies indicate that the EU could generate directly and indirectly one million jobs in the energy efficiency sector. Thus, not only would improved energy efficiency drives save the EU economy a considerable amount of money, it could also make a major contribution to EU competitiveness and employment – key objectives of the Lisbon agenda. The other advantages gained by focusing on energy efficiency relate to the Kyoto Protocol and the EU’s security of energy supplies. Concerning the first, the EU is committed to meeting its Kyoto targets and energy savings is without a doubt the quickest, most effective and most cost-effective manner for reducing greenhouse gas emissions. As far as the second is concerned, the Green Paper notes that by 2030, on the basis of present trends, the EU will be 90% dependant on imports for its requirements of oil and 80% dependant regarding gas. Energy efficiency is one of the key methods to deal with this challenge.

Clearly, the need to address energy efficiency is one of the priorities of the EU in the coming years. The Green Paper therefore seeks to identify the bottlenecks presently preventing cost-effective efficiency from being captured. The kind of bottlenecks identified includes the current lack of appropriate incentives, lack of information and a lack of available financing mechanisms. The Green Paper seeks to identify options on how these bottlenecks can be overcome, suggesting a number of key actions that might be taken. The kind of actions envisioned include, inter alia , the establishment of national “Annual Energy Efficiency Action Plans”, targeted publicity campaigns on energy efficiency, improved taxation efforts, better targeting of state aid, the use of public procurement to “kick-start” new energy efficient technologies and the use of the CARS 21 initiative to speed up the development of a new generation of fuel efficient cars. These examples are accompanied by 25 questions, which the Commission addresses to interested stake-holders. The questions posed are wide-ranging and comprehensive but they are not exhaustive. Nor are they proposals – they are ideas for discussion. Following the publication of the Paper, the Commission will undertake an intensive public consultation to last until the end of 2005.

To conclude, the Commission states that the Green Paper is a starting point from which to launch a debate and to prompt new ideas, whether these come from industry, public authorities, consumer groups or indeed consumers. By December 2005, the Commission will prepare a first analysis of the results of the public debate, which will be presented to the Council of Ministers. The Report will be accompanied by an action plan containing proposals for practical action in the course of 2006.

PURPOSE: The presentation of a Commission Green Paper to open a wide-ranging discussion on how to realise energy savings in the EU – “Doing More with Less”.

CONTENT: There are a number of advantages associated with energy efficiency drives, the most obvious being cash savings. According to numerous studies the EU could save at least 20% of its present energy consumption in a cost effective manner – equivalent to EUR 60 billion per year, or the present combined energy consumption of Germany and Finland. On a micro level EU households could save between EUR 200 to EUR 1000 per year. This is not to forget the considerable advantages energy efficiency has on levels of employment across the EU. Compared to other developed nations, the EU is a world leader in offering both new energy equipment and energy services. For example, China presently uses more than five times as much energy as the EU to produce one unit of GDP, the USA approximately 50% more. Some studies indicate that the EU could generate directly and indirectly one million jobs in the energy efficiency sector. Thus, not only would improved energy efficiency drives save the EU economy a considerable amount of money, it could also make a major contribution to EU competitiveness and employment – key objectives of the Lisbon agenda. The other advantages gained by focusing on energy efficiency relate to the Kyoto Protocol and the EU’s security of energy supplies. Concerning the first, the EU is committed to meeting its Kyoto targets and energy savings is without a doubt the quickest, most effective and most cost-effective manner for reducing greenhouse gas emissions. As far as the second is concerned, the Green Paper notes that by 2030, on the basis of present trends, the EU will be 90% dependant on imports for its requirements of oil and 80% dependant regarding gas. Energy efficiency is one of the key methods to deal with this challenge.

Clearly, the need to address energy efficiency is one of the priorities of the EU in the coming years. The Green Paper therefore seeks to identify the bottlenecks presently preventing cost-effective efficiency from being captured. The kind of bottlenecks identified includes the current lack of appropriate incentives, lack of information and a lack of available financing mechanisms. The Green Paper seeks to identify options on how these bottlenecks can be overcome, suggesting a number of key actions that might be taken. The kind of actions envisioned include, inter alia , the establishment of national “Annual Energy Efficiency Action Plans”, targeted publicity campaigns on energy efficiency, improved taxation efforts, better targeting of state aid, the use of public procurement to “kick-start” new energy efficient technologies and the use of the CARS 21 initiative to speed up the development of a new generation of fuel efficient cars. These examples are accompanied by 25 questions, which the Commission addresses to interested stake-holders. The questions posed are wide-ranging and comprehensive but they are not exhaustive. Nor are they proposals – they are ideas for discussion. Following the publication of the Paper, the Commission will undertake an intensive public consultation to last until the end of 2005.

To conclude, the Commission states that the Green Paper is a starting point from which to launch a debate and to prompt new ideas, whether these come from industry, public authorities, consumer groups or indeed consumers. By December 2005, the Commission will prepare a first analysis of the results of the public debate, which will be presented to the Council of Ministers. The Report will be accompanied by an action plan containing proposals for practical action in the course of 2006.