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Europaudvalget 2005-06
Det Europæiske Råd 23-24/3-06 Bilag 5
Offentligt

COUNCIL OF

THE EUROPEAN UNION

Brussels, 15 March 2006

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POLGEN 34

NOTE

from :

to :

Subject :

Presidency

Coreper

European Council (23 and 24 March 2006)

– Draft conclusions

Delegations will find attached draft European Council conclusions on energy.

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PART II

ENERGY POLICY FOR EUROPE

The European Council notes that Europe is facing a number of challenges in the energy field:

the ongoing difficult situation on the oil and gas markets, the increasing import dependency

and limited diversification achieved so far, high and volatile energy prices, growing global

energy demand, the growing threats of climate change, slow progress in energy efficiency and

the use of renewables, the need for further integration of national energy markets with the

energy market liberalisation nearing completion (July 2007), the limited coordination between

energy players while large investments are required in energy infrastructure. Leaving these

challenges unaddressed has a direct impact on the EU environment, and jobs and growth

potential.

In response to these challenges and on the basis of the Commission's Green Paper "A

European Strategy for Sustainable, Competitive and Secure Energy" and the contribution of

the Council, the European Council calls for a Energy Policy for Europe, aiming at effective

Community policy, coherence between Member States and consistency between actions in

different policy areas.

The European Council underlines that to achieve this consistency, energy policy has to satisfy

the demands of many policy areas. As part of a growth strategy and through open and

competitive markets, it prompts investment, technological development, domestic and foreign

trade. It is strongly linked with environment policy and is closely connected with

employment, regional policy and particularly transport policy. In addition foreign and

development policy aspects are gaining increasing importance to promote the energy policy

dialogue with other countries. Therefore, the European Council calls for an enhanced

coordination between the relevant Council formations and invites the European Commission

to integrate this new approach towards energy policy into its Better Regulation Initiative.

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This EPE should be developed with adequate knowledge and understanding of Member

States' energy needs and policies. The EPE should therefore be based on shared perspectives

on long term supply and demand and an objective, transparent assessment of the advantages

and drawbacks of all energy sources and contribute in a balanced way to its three main

objectives:

Increasing security of supply through:



Development of a common external (foreign and trade) policy approach in support

of energy policy objectives, and the furthering of energy dialogues between the

EU and its Member States on the one hand, and producer, transit and consumer

countries on the other hand, in synergy with relevant international organisations



Intensified diversification with respect to external as well as indigenous sources,

suppliers and transport routes supported by investing in the necessary

infrastructure



Ensuring common operational approaches to address crisis situations, taking

solidarity and subsidiarity into account

Ensuring the competitiveness of European economies and the affordability of energy

supply to the benefit of both businesses and consumers, in a stable regulatory

framework, by:



Ensuring full, effective and transparent implementation of internal market

legislation, promoting approaches similar to that of the internal energy market to

neighbouring countries and enhancing coordination of energy regulators



Accelerating the development of regional energy cooperation within the EU,

facilitating the integration of regional markets into and further development of the

EU internal market



Fostering the coherent development of storage and infrastructure in particular of

interconnections with, for electricity, the target of at least 10% of Member States'

installed production capacity



Reviewing existing directives and legal framework in order to speed up the

administrative authorisation procedures for, and develop a regulatory environment

more conducive to investment projects

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Promoting environmental sustainability by:



Affirming the EU leadership by adopting an ambitious and realistic Action Plan

on Energy Efficiency bearing in mind the EU energy saving potential of 20%

by 2020



Continuing the EU-wide development of renewable energies (road map) on the

basis of an analysis by the Commission of how to achieve the existing targets

(2010) and how to raise, by 2015, the share of renewable energies, considering a

target of 15% , and the proportion of biofuels, considering a target of 8%, and

developing a medium and long-term strategy to reduce the EU's dependency on

energy imports in a manner that meets the Lisbon objectives



Implementing the Biomass Action Plan

In the context of the development of a medium- to long-term EU strategy to

combat climate change, completing the review of the EU Emissions Trading

Scheme as an instrument to achieve climate change objectives in a cost-effective

manner and assessing the potential of various sectors with respect to these

objectives



Ensuring adequate support from RD & D national and Community instruments to

sustainable energies and technologies

In fulfilling these main objectives the EPE for Europe should:



Ensure transparency and non-discrimination on markets

Be consistent with competition rules

Be consistent with public service obligations

Fully respect Member States' sovereignty over primary energy sources and choice of

energy-mix

Annex Z sets out a series of actions contributing to the above objectives. On that basis the

European Council invites the Commission to present immediate measures including an Action

Plan on Energy efficiency. Furthermore the European Council calls the Commission and the

Council to develop a prioritised Action Plan to be adopted by the European Council at its

2007 Spring session addressing the various components of energy policy over the medium- to

long-term. Actions of European interest could be reported by Member States on that occasion.

________________________

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ANNEX Z

PRIORITIES FOR ACTION

The actions listed below pertain to both the internal and external aspects of energy policy and may

contribute to more than one of its three objectives.

ECURITY OF SUPPLY

Facing supply disruptions

Ensuring the availability of effective mitigating measures and coordination mechanisms in the

event of a supply crisis based on the principles of solidarity and subsidiarity by considering a

flexible combination of the measures set out in the Gas Supply Directive, based on improved

data on gas stocks.

Enhancing demand-side management, particularly in the housing and transport sectors, to

accelerate the demand response.

Improving the effectiveness of gas and oil provisions.

Intensified Diversification

Member States should intensify their diversification strategies while considering the

development of a common approach, be it in terms of the supplier countries or the

transportation routes in particular by opening up new gas supply routes from the Caspian

region and North Africa. This diversification should not be limited to external sources but

include the development and exploitation of indigenous energy potential and energy

efficiency.

Completion of network infrastructure, in the East-West direction but also along a South-North

axis, and LNG (Liquified Natural Gas) facilities contributing to that diversification should be

accelerated.

Subject to competition requirements, the contribution of long-term contracts should be

acknowledged from both demand and supply points of view.

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External dimension of security of supply

Developing a common voice in support of energy policy objectives, when addressing third

countries fostering a more cooperative approach regarding access to energy resources.

Securing the entry into force of the Energy Community Treaty (with South-East Europe)

in 2006 and considering the extension of its membership or principles to neighbouring

countries.

Developing a common framework for establishing new partnerships with third countries,

including transit countries and improving existing ones. Consumer to producer partnerships

should be supplemented with consumer to consumer ones. All fora should be put to good use

for carrying out these dialogues, which can be conducted in a regional setting (e.g. OPEC,

Euromed, or Northern Dimension area) if this adds to their effectiveness.

10.

In order to maximise the outcome of these dialogues as well as facilitating the access of

developing countries to sustainable energy and related technologies, synergies with

international organisations, including IFI's, should be fully exploited.

11.

The Energy Dialogue with Russia should be revitalised and become more open and effective

in support of EU energy objectives, based on our mutual inter-dependence on energy issues

and thus the need for secure and predictable investment conditions for both EU and Russian

companies and reciprocity in terms of access to markets and infrastructure as well as non

discriminatory third party access to pipelines in Russia. Efforts should be made to complete

the negotiation of the Energy Charter Transit Protocol and secure Russia's ratification of the

Energy Charter Treaty.

ARKET COMPETITIVENESS AND INVESTMENT

Furthering market integration to the benefit of businesses and consumers

12.

Improving regional cross-border exchange and accelerating the development of regional

energy cooperation while facilitating the integration of regional energy markets into and the

further development of the EU internal market notably through adequate interconnection

measures to reach the target of a level of electricity interconnections equivalent to at least

10% of their installed production capacity as agreed by the European Council in Barcelona

in 2002.

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13.

Making networks operate like a single grid from the end-user's point of view by completing

the technical rules required for cross-border trade in energy, improving the functioning of gas

market flexibility instruments, including storage capacities, access to networks and congestion

management on the electricity market.

14.

Ensuring full, effective and transparent implementation of existing legislation. This

implementation should be in line with public service obligations, ensuring that liberalisation is

also beneficial in terms of affordable access to energy.

15.

Enhancing cooperation and coordination between regulators and system operators on a

regional basis inter alia by a coordinated exchange of information at EU level and, at EU level

e.g. by building on already existing administrative bodies like the European Energy

Regulators Group for Electricity and Gas (ERGEG).

Fostering the coherent development of infrastructure

16.

Improving medium- to long-term investment planning procedures and investment

coordination, especially as regards cross-border interconnection, gas infrastructure and LNG

facilities and ensuring a business climate more conducive to long-term investment through

increased transparency and exchange of information based on Member States' own planning.

17.

Providing a balanced mechanism in regard of long term contracts that will strengthen

competition on the internal market and at the same time safeguard investment incentives.

18.

Reviewing existing directives and legal framework conditions in the light of the need to speed

up administrative authorisation procedures substantially while maintaining environmental and

health standards, in particular by considering time-limits for the procedures.

USTAINABLE

NERGY

Renewables

19.

Producing a Commission analysis of how to achieve the existing targets (2010) of renewables

and how to further promote renewable energies (road map) considering to raise their share to

15% by 2015 and in the same way further the use of biofuels in the transport sector by

considering to raise their proportion to 8% by 2015 accompanied by a constructive dialogue

with the oil industry and by giving maximum support to research on and development of the

generation bio fuels.

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20.

Promoting the use of biomass with a view to diversify the EU's fuel supply sources, reduce

greenhouse gas emissions and offer new income and employment opportunities in rural areas

by taking forward proposals in the Biomass Action Plan in all of its three sectors: heating and

cooling, electricity and transport.

21.

Mitigating legislative and administrative obstacles to renewables take-off by facilitating

access to grid, cutting administrative red-tape and ensuring the transparency, effectiveness

and certainty of support policies.

Energy efficiency

22.

Bearing in mind the EU energy saving potential of 20% by 2020 the Commission should

propose an ambitious and realistic Action Plan on Energy Efficiency with a view to its

adoption in 2006 and consider the start of negotiations on an International Agreement on

energy efficiency.

23.

Improving energy efficiency notably in the transport sector given the important role this

sector has to play, making use of cost-effective instruments, including voluntary agreements.

24.

Fully implementing the legislation on energy performance in buildings and end-use efficiency

and energy services.

25.

Substantially enhancing the efficiency of power stations in particular by further promoting the

use of combined heat and power.

Contributing to climate change policy

26.

Contributing to the development of a medium to long term EU strategy to combat climate

change in a post-2012 perspective and the achievement of Kyoto targets.

27.

Completing in a timely manner the review of the EU ETS as an instrument to achieve climate

change objectives in a cost-effective manner, taking into account its impact on the three

objectives of energy policy, on energy markets, the growth potential and industry structure of

Member States and the need for long term certainty

28.

In its energy dialogues with third countries, the EU should facilitate the development of

sustainable and efficient energy systems and assume a more proactive approach in combating

climate change, promoting renewables and energy efficiency and the implementation of the

Kyoto Protocol mechanisms.

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ORIZONTAL AND SUPPORTING ACTIONS

Evidence-based policy-making

29.

Developing analytical (energy modelling and regional scenarios; indicators), and market and

stocks monitoring tools in order to provide the EU with shared perspectives on long-term

supply and demand as regards the EU and its partners, in synergy with other international

institutions. In particular the Commission is encouraged to make rapid progress on the means

to provide transparency and predictability regarding demand and supply on EU energy

markets and to complement the work of the IEA while avoiding duplication of work.

30.

Assessing the advantages and drawbacks of all individual energy sources with regard to the

three objectives of energy policy; this assessment should cover all different sources, from

indigenous renewable energy sources, to clean coal and the future role of nuclear energy in

the EU for Member States which wish to pursue this option.

Research, Development and Demonstration - Technology development

31.

Increasing the priority for energy in national and Community RD & D budgets, especially

within the 7th Framework Programme, focusing on sustainable energies and technologies

responding to the challenges faced by the EU.

32.

Supporting these technologies through a broader range of platforms and partnerships with

third countries, and facilitating the market take-up of the resulting technologies including

through relevant Community instruments, so as to comfort the EU leadership.

Coordination

33.

In order to ensure a coherent implementation of the above priority actions, shared general

orientations addressing the various components of energy policy as implemented by Member

States should be developed, taking due account of Member States' characteristics.

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