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Europaudvalget 2006-07
Det Europæiske Råd 8-9/3-07 Bilag 4
Offentligt

COUNCIL OF

THE EUROPEAN UNION

Brussels, 20 February 2007

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POLGEN 28

ADDENDUM TO THE NOTE

from :

Presidency

to :

Permanent Representatives Committee

Subject

European Council (8 and 9 March 2007)

– Draft conclusions

The Presidency submits herewith to COREPER draft conclusions on energy and climate change to

be adopted by the European Council at its meeting on 8 and 9 March 2007.

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III. An integrated energy and climate policy

The challenges of climate change need to be tackled effectively and urgently. Recent studies

on this subject have stressed the need for decisive and immediate action. They have

contributed to a growing awareness and knowledge of the long-term consequences, including

for global economic development. The European Council underlines the vital importance of

achieving the strategic objective of the Union and its Member States to limit the global

average temperature increase to not more than 2° C above pre-industrial levels.

Given that energy production and use are the main sources for green house gas emissions, an

integrated approach to energy and climate policy is needed to realize this objective.

Integration should be achieved in a mutually supportive way, thus enabling the Energy Policy

for Europe (EPE) to contribute to its three underlying objectives of



increasing security of supply;

ensuring the competitiveness of European economies and the availability of affordable

energy;

promoting environmental sustainability and combating climate change.

In this context, the European Council reconfirms the full respect of Member States´ sovereignty

over primary energy sources and choice of energy mix.

Energy Policy

To further promote the objectives of the Energy Policy for Europe, the European Council has

adopted a comprehensive energy Action Plan for the period 2007-2009 (Annex XX), based on

the Commission's Communication "An Energy Policy for Europe". The European Council

underlines that concrete actions are to be taken according to the provisions and conditions laid

down in the Action Plan. This Action Plan focuses on the internal market for gas and

electricity, security of supply, international energy policy of the European Union, energy

efficiency and renewable energies and the improvement of energy technologies, and sets

important strategic targets for these areas.

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The European Council agrees that significant progress in the efficient operation of the

European Union's

internal market for gas and electricity

for the benefit of consumers and

businesses still has to be achieved by enhancing competition, ensuring effective regulation

and encouraging investment. The European Council reaffirms that the first step is to ensure

timely and full implementation of both the letter and the spirit of existing internal market

legislation in this field. Further measures are, inter alia, effective separation of supply and

production activities from network operations, further harmonisation of the powers and

strengthening of the independence of national energy regulators, establishment of an

independent mechanism for national regulators to cooperate and take decisions on important

cross-border issues, improved cooperation between network operators, a more efficient and

integrated system for cross-border electricity trade and grid operation, facilitated integration

of new power plants into the electricity grid as well as increased transparency in energy

market operations and consumer protection.

The European Council reaffirms the need for improved regional cross-border exchange and

for accelerating the development of regional energy cooperation while addressing the

challenges of peripheral energy markets and facilitating the integration of regional ones into

the EU internal market and its further development, notably through interconnection, taking

into account the integration of on- and off-shore renewable energies. In particular, the most

critical interconnection projects of EU interest should be accelerated. The European Council

takes note of the envisaged appointment of EU coordinators for four projects as specified in

the Action Plan.

The European Council agrees to enhance

security of supply

in a spirit of solidarity between

Member States through the effective diversification of energy sources, suppliers, and transport

routes and the development of more effective crisis response mechanisms.

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An effective European

international energy policy

needs to speak with a "single voice"

(Commission and Council Presidency) in international energy dialogues. Through consumer-

to-producer, consumer-to-consumer and consumer-to-transit country dialogues and

partnerships the EU wants to enhance security of supply, foster climate protection, strengthen

global efforts on energy efficiency, increase the share of renewable energies and promote

sustainable use of fossil fuels. The European Council endorses the idea of establishing a new

international agreement on energy efficiency and of developing a comprehensive energy

partnership between Africa and Europe, contributing both to energy accessibility and

sustainability in this region and to security of supply for the EU. It also supports international

negotiations to encourage sustainable methods of production as well as to promote

international trade in environmental and energy-efficient goods and services.

The European Council is aware of the key importance of enhanced

energy efficiency,

which

will directly increase the security of supply, reduce the emission of greenhouse gases and curb

the projected rise in energy prices. The European Council urges Member States to realise the

objective of saving of 20% of the EU's energy consumption in a cost-efficient manner

by 2020, as suggested by the Commission, especially through energy-efficient transport,

dynamic minimum efficiency requirements for energy-using equipment, energy-efficient and

energy-saving behaviour of energy consumers, energy technology and innovations and the

energy savings from buildings.

Renewable energies

are not only an indispensable element in combating climate change but

will also help to reduce Europe's dependence on external energy supply. Promoting an

increased use of renewable energies will equally underline Europe's leading role in energy

technology. Given the paramount importance of a clear signal to industry, investors and

researchers as well as of sustainable production and cost-efficiency of renewable energies the

European Council endorses a 20% binding target for the share of renewable energy in overall

EU energy consumption and a 10% binding minimum target for the share of biofuels,

including commercially available second-generation biofuels, in overall EU transport petrol

and diesel consumption by 2020, while taking into account different national circumstances,

starting points and potentials.

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10.

Recognizing the need to accelerate the competitiveness of sustainable energies, notably

renewables, sustainable and low carbon

energy technologies

and to further develop energy

efficiency technologies, Member States agree to strengthen research and development in the

field of energy and to develop the necessary framework for bringing environmentally safe

Carbon Capture and Storage technology to markets if possible by 2020. The European

Council invites the Commission to develop a European Strategic Energy Technology Plan for

consideration by its 2008 Spring meeting.

11.

With the aim of examining the results and progress made, this Action Plan will be kept under

regular review. The Commission is therefore invited to put forward an updated Strategic

Energy Review every two years.

Climate protection

12.

The European Council underlines the leading role of the EU in international climate

protection. It stresses that international collective action will be critical in driving an effective,

efficient and equitable response on the scale required to face climate change challenges. To

this end negotiations on a global and comprehensive post-2012 agreement, which should build

upon and broaden the Kyoto Protocol architecture, need to be launched at the

UN international climate conference beginning at the end of 2007.

13.

The European Council reaffirms that absolute emission reduction commitments are the

backbone of a global carbon market. Developed countries should continue to take the lead by

committing to collectively reducing their emissions of greenhouse gases in the order of 30%

by 2020 compared to 1990. They should do so also with a view to collectively reducing their

emissions by 60% to 80% by 2050 compared to 1990.

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14.

In this context, the European Council endorses an EU objective of a 30% reduction in

greenhouse gas emissions by 2020 compared to 1990 as its contribution to a global and

comprehensive agreement for the period beyond 2012, provided that other developed

countries commit themselves to comparable emission reductions. At the same time

economically more advanced developing countries are called upon to adequately contribute

according to their responsibilities and respective capabilities.

15.

The European Council emphasises that the EU is committed to transforming Europe into a

highly energy-efficient and low greenhouse-gas-emitting economy and decides that, until a

global and comprehensive post-2012 agreement is concluded, and without prejudice to its

position in international negotiations, the EU makes a firm independent commitment to

achieve at least a 20% reduction of greenhouse gas emissions by 2020 compared to 1990.

16.

The European Council decides that a differentiated approach to the contributions of the

Member States is needed reflecting fairness and transparency as well as taking into account

national circumstances and the base years for the first commitment period of the Kyoto

Protocol. It recognizes that the implementation of these targets will be based on Community

policies and on an agreed internal burden-sharing and invites the Commission to start

immediately, in close cooperation with the Member States, a technical analysis of criteria,

including socio-economic parameters and other relevant and comparable parameters, to form

the basis for further in-depth discussion.

17.

Given the central role of emission trading in the EU's long-term strategy for reducing

greenhouse gas emissions, the European Council invites the Commission to review the EU

Emissions Trading Scheme in good time with a view to increasing transparency and

strengthening the scheme.

________________________

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ANNEX XX

ENERGY POLICY FOR EUROPE (EPE)

ACTION PLAN (2007 – 2009)

The Action Plan comprises the following priority actions, some of which may contribute to more

than one of the three objectives of the EPE. New measures should take into account the better

regulation principles, notably as regards impact assessments.

NTERNAL

ARKET

AS AND

LECTRICITY

With the aim of increasing competition, ensuring effective regulation and encouraging

investment to benefit consumers and businesses the Commission should elaborate measures

taking account of the characteristics of the gas and electricity sectors and of national and

regional markets and ensuring, including through the development of existing legislation

where possible,



effective separation of supply and production activities from network operations

(unbundling), based on independently run and adequately regulated network operation

systems which guarantee equal and open access to transport infrastructures and

independence of decisions on investment in infrastructure



further harmonisation of the powers and the strengthening of the independence of

national energy regulators

the establishment of an independent mechanism for national regulators to cooperate and

take decisions on important cross-border issues

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

the creation of a new Community mechanism for Transmission System Operators to

improve coordination of network operation and grid security, building on existing

cooperation practices



a more efficient and integrated system for cross-border electricity trade and grid

operation, including elaboration of technical standards

facilitated integration of new power plants into the electricity grid in all Member States,

in particular encouraging new market entrants

relevant investment signals contributing to the efficient and more secure operation of

the transmission grid

increased transparency in energy market operations

better consumer protection, e.g. through the development of an Energy Customers'

Charter.

Furthermore the Commission should:



provide additional clarifications on to the key measures envisaged and their impact

elaborate together with Member States the medium- and long-term forecasts for gas and

electricity supply and demand, and identify the additional investment required to satisfy

EU strategic needs



assess the impact of vertically integrated energy companies from third countries on the

internal market and how to implement the principle of reciprocity.

With a view to further developing the EU internal market, notably through interconnection:



the Commission should appoint where necessary, as a first step in accordance with

Article 10 of Decision 1364/2006/EC, European coordinators to accelerate the most

critical interconnection priority projects of European interest



Member States concerned should achieve at least 10% of electricity and gas

interconnection capacity by 2010

the Commission should table proposals aiming at streamlining approval procedures.

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ECURITY OF

UPPLY

Enhancing security of supply of the EU as a whole as well as for each Member State through:



effective diversification of energy sources and transport routes, which will also

contribute to a more competitive internal energy market

developing more effective crisis response mechanisms in a spirit of solidarity, on the

basis of mutual co-operation and building in particular on existing mechanisms,

considering a wide range of options after careful assessment of existing means, taking

into account the primary responsibility of Member States regarding their domestic

demand, and making appropriate use of the warning capacity provided by the network

of energy security correspondents



improving oil data transparency and reviewing EU oil supply infrastructures and oil

stocks mechanisms, complementary to the IEA crisis mechanism, especially with regard

to availability in the event of a crisis



a thorough analysis of the availability and costs of gas storage facilities in the EU

an assessment of the impact of current and potential energy imports and the conditions

of related networks on each Member State's security of supply

establishing an Energy Observatory within the Commission.

NTERNATIONAL

NERGY

OLICY

The European Council emphasises the need to speed up the development of a common

approach to the external energy policy of the EU in support of all three energy policy

objectives by:



speaking with a "single voice" when addressing third countries

negotiating and finalising a post-partnership and cooperation agreement with Russia in

particular relating to energy issues

This formulation is without prejudice to on-going discussions on the negotiating mandate for

the post-PCA agreement.

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

intensifying the EU relationship with Central Asia, the Caspian and the Black Sea

regions, with a view to further diversifying sources and routes

ensuring the implementation of the Energy Community Treaty, with a view to its further

development and possible extension to Norway, Turkey, Ukraine and Moldova

making full use of the instruments available under the European Neighbourhood Policy

enhancing energy relationships with producing countries in the Mashrek/Maghreb

region, notably Algeria and Egypt

strengthening partnership and cooperation by building on the bilateral energy dialogues

with the USA as well as with China, India and other emerging economies, focusing on

the reduction of GHG, energy efficiency, renewables and low-emission energy

technologies, notably CCS



building a special dialogue with African countries on energy and using Community

instruments to enhance in particular decentralised renewable energies and, generally,

energy accessibility and sustainability in this region, as well as energy infrastructure of

common interest. Launching preparatory work for a new international agreement on

energy efficiency in order to develop common global efforts towards promoting energy

efficiency, bearing in mind that such an agreement should be complementary to EU

energy efficiency policy



using international negotiations to encourage sustainable methods of production and to

promote international trade in environmental and energy-efficient goods and services.

NERGY

FFICIENCY

Member States should realise the objective of saving 20% of the EU's energy consumption in

a cost-efficient manner by 2020, as suggested by the Commission, and make good use of their

National Energy Efficiency Action Plans for this purpose.

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There should be thorough and rapid implementation of the ambitious five main priorities as

highlighted in the Council conclusions of 23 November 2006

on the Commission's Action

Plan on Energy Efficiency, relating to energy-efficient transport, dynamic minimum

efficiency requirements for energy using equipment, energy efficient and energy saving

behaviour of energy consumers, energy technology and innovations and the energy savings

from buildings.

The Community guidelines on State aid for environmental protection and other incentive-

providing Community instruments should be reviewed early, with the aim of making them

more supportive of the Community's energy and climate change objectives.

ENEWABLE

NERGIES

Taking into consideration different individual circumstances, starting points and potentials,

the European Council endorses the following targets:



a binding target of a 20% share of renewable energies in overall EU energy

consumption by 2020

a 10% binding minimum target to be achieved by all Member States for the share of

biofuels in overall EU transport petrol and diesel consumption by 2020, to be introduced

in a cost-efficient way. The binding character of this target is subject to production

being sustainable, second-generation biofuels becoming commercially available and the

Fuel Quality Directive being amended accordingly to allow for adequate levels of

blending.

Differentiated national overall targets should be derived from the overall renewables target

with Member States' full involvement; subject to meeting the minimum biofuels target in each

Member State, it should be left to Member States to decide on national targets for each

specific sector of renewable energies (electricity, heating and cooling, biofuels).

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In order to meet these targets, an overall coherent framework for renewable energies should

be established on the basis of a Commission proposal in 2007 for a new comprehensive

directive on the use of all renewable energy resources. This proposal should be in line with

other Community legislation and could contain provisions as regards:



Member States' overall national targets;

National Action Plans containing sectoral targets and measures to meet them;

and criteria and provisions to ensure sustainable production and use of bioenergy and to

avoid conflicts between different uses of biomass.

The measures highlighted in the June 2006 Council conclusions

on the Commission

Biomass Action Plan, notably as regards demonstration projects for second-generation

biofuels, should thoroughly and rapidly implemented.

NERGY

ECHNOLOGIES

10.

Stressing the need to strengthen energy research to accelerate the competitiveness of

sustainable energies, low carbon technologies and the further development of energy

efficiency technologies, the European Council invites the Commission to table a European

Strategic Energy Technology Plan during 2007 for consideration at the latest by its

2008 Spring meeting.

11.

The Member States and the Commission should work towards strengthening R & D and

developing the necessary technical, economic and regulatory framework to bring

environmentally safe carbon capture and storage (CCS) to markets, if possible by 2020. The

Commission should establish a mechanism to stimulate the construction and operation

by 2015 of up to 12 demonstration plants of sustainable fossil fuel technologies in commercial

power generation.

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12.

Confirming that it is for each and every Member State to decide whether or not to rely on

nuclear energy and stressing that this has to be done while further improving nuclear safety

and the management of radioactive waste, the European Council:



supports R & D on waste management, particularly under the 7th Framework Research

Programme

can envisage the creation of a high-level group on nuclear safety and waste

management.

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