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Europaudvalget 2010-11 (1. samling), Det Udenrigspolitiske Nævn 2010-11 (1. samling)
Det Europæiske Råd 4/2-11 Bilag 4, UPN Alm.del Bilag 79
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COUNCIL OF

THE EUROPEAN UNION

Brussels, 28 January 2011

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CO EUR-PREP 4

NOTE

from:

to:

Subject:

The General Secretariat of the Council

General Affairs Council

European Council (4 February 2011)

- Draft conclusions

In accordance with article 2(3)(a) of the Council's Rules of Procedure, delegations will find

attached the draft conclusions prepared by the President of the European Council, in close

cooperation with the member of the European Council representing the Member State holding the

six-monthly Presidency of the Council and with the President of the Commission.

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Beyond the immediate action required to tackle the most pressing challenges posed by the

economic and financial crisis, it is important to continue laying solid foundations for a

sustainable and job-creating growth. This is the purpose of the Europe 2020 Strategy for jobs

and growth adopted last June. Today, the European Council focused on two sectors – energy

and innovation – which are key to Europe's future growth and prosperity. It agreed on a

number of priority actions whose implementation will contribute much to enhancing growth

and job creation as well as promoting Europe's competitiveness.

ENERGY

Safe, secure, sustainable and affordable energy contributing to European competitiveness

remains a priority for Europe. Action at the EU level can and must bring added value to that

objective. Over the years, a lot of work has been carried out on the main strands of an EU

energy policy, including the setting of ambitious energy and climate change objectives and

the adoption of comprehensive legislation supporting these objectives. Today's meeting of the

European Council underlined the EU's commitment to these goals through a number of

operational conclusions, as set out below.

An integrated and interconnected market

The EU needs a fully functioning, interconnected and integrated internal energy market.

Legislation on the internal energy market must therefore be speedily and fully implemented

by Member States in full respect of the agreed deadlines. Council and European Parliament

are invited to work towards the early adoption of the Commission's proposal for a Regulation

on energy markets integrity and transparency.

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The internal market should be completed by 2014 so as to allow gas and electricity to flow

freely. This requires in particular that in cooperation with ACER national regulators and

transmission systems operators step up their work on market coupling and guidelines and on

network codes applicable across European networks. Member States, in liaison with European

standardization bodies and industry, are invited to accelerate work with a view to adopting

technical standards for electric vehicle charging systems by mid-2011 and for smart grids and

meters by the end of 2012. The Commission will regularly report on the functioning of the

internal energy market, paying particular attention to consumer issues in line with the Council

conclusions of 3 December 2010.

As set out in the Commission's communication on infrastructure priorities, major efforts are

needed to modernise and expand Europe's energy infrastructure and to interconnect networks

across borders. This is crucial to ensure that solidarity between Member States will become

operational, that alternative supply/transit routes and sources of energy will materialise and

that renewables will develop and compete with traditional sources. It is important to

streamline and improve authorisation procedures, while respecting national competences and

procedures, for the building of new infrastructure; the European Council looks forward to the

forthcoming proposal from the Commission in that respect. The various initiatives undertaken

by Member States to integrate markets and networks at a regional level as well as those

outlined in the Commission communication contribute to the objective and deserve support.

No EU Member State should remain isolated from the European gas and electricity networks

after 2015 or see its energy security jeopardized by lack of the appropriate connections.

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The bulk of the important financing costs for infrastructure investments will have to be

delivered by the market, with costs recovered through tariffs. It is vital to promote a

regulatory framework attractive to investment. Particular attention should be given to the

setting of tariffs at levels consistent with financing needs and to the appropriate cost

allocation for cross-border investments, whilst preserving competitiveness and taking account

of the impact on consumers. However, some projects that would be justified from a security

of supply/solidarity perspective, but are unable to attract enough market-based finance, will

require some limited public finance to leverage private funding. Such projects should be

selected on the basis of clear and transparent criteria. The Commission is invited to report by

June 2011 to the Council on figures on the investments likely to be needed, on suggestions on

how to respond to financing requirements and on how to address possible obstacles to

infrastructure investment.

In order to further enhance its security of supply, Europe's potential for sustainable extraction

and use of conventional and unconventional (shale gas and oil shale) fossil fuel resources

should be assessed.

Energy efficiency and Renewables

Investments in energy efficiency enhance competitiveness and support security of energy

supply and sustainability at low cost. The 2020 20% energy efficiency target as agreed by the

June 2010 European Council, which is presently not on track, must be delivered. This requires

determined action to tap the considerable potential for higher energy savings of buildings,

transport and products and processes. As of 1 January 2012, all Member States should include

energy efficiency standards taking account of the EU headline target in public procurement

for new public buildings and services. The Council is invited to promptly examine the

upcoming Commission proposal for a new Energy Efficiency Plan, setting out in more detail a

series of policies and measures across the full energy supply chain. It will review the

implementation of the EU energy efficiency target by 2013 and consider further measures if

necessary.

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The Commission is invited to strengthen its work with Member States on the implementation

of the Renewable Energy Directive, in particular as regards consistent national support

schemes and cooperation mechanisms.

10.

The EU and its Member States will promote investment in renewables and safe and

sustainable low carbon technologies and focus on implementing the technology priorities

established in the European Strategic Energy Technology plan. The Commission is invited to

table new initiatives on smart grids, including those linked to the development of clean

vehicles, energy storage, sustainable bio fuels and energy saving solutions for cities.

Energy and external relations

11.

There is a need for better coordination of EU and Member States' activities with a view to

ensuring consistency and coherence in the EU’s dealings with key producer, transit, and

consumer countries. The Commission is invited to submit by June 2011 a communication on

security of supply and international cooperation aimed at further improving the consistency

and coherence of the EU's external action in the field of energy. The Member States are

invited to inform from 1 January 2012 the Commission on all their new and existing bilateral

energy agreements with third countries; the Commission will make this information available

to all other Member states in an appropriate form, having regard to the need for protection of

commercially sensitive information. The High Representative is invited to take fully account

of the energy security dimension in her work.

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12.

The EU should take initiatives in the relevant international fora and develop mutually

beneficial energy partnerships with key players and around strategic corridors, covering a

wide range of issues, including regulatory approaches, on all subjects of common interest,

such as energy security, safe and sustainable low carbon technologies, energy efficiency,

investment environment and promoting the highest standards for nuclear safety. It should

encourage neighbouring countries to embrace its relevant internal energy market rules,

notably by extending and deepening the Energy Community Treaty and promoting regional

cooperation initiatives. It should also consider options to provide a level playing field for

power producers. Europe needs to diversify its routes and sources of supply. The Commission

is accordingly invited to continue its efforts to facilitate the development of strategic corridors

for the transport of large volumes of gas such as the Southern Corridor.

13.

Work should be taken forward as early as possible to develop a reliable, transparent and rules-

based partnership with Russia in areas of common interest in the field of energy and as part of

the negotiations on the post-Partnership and Cooperation Agreement process and in the light

of on-going work on the Partnership for Modernization and the Energy Dialogue.

14.

The EU will cooperate with third countries in order to address the volatility of energy prices

and will take this work forward within the G20.

Long term perspective

15.

The European Council looked forward to the elaboration of a low carbon 2050 strategy

providing the framework for the longer term action in the energy and other related sectors.

Reaching the objective of reducing greenhouse gas emissions by 80-95% by 2050 compared

to 1990 as agreed in October 2009, will require a revolution in energy systems, which must

start now. Due consideration should be given to fixing intermediary stages towards reaching

the 2050 objective. The European Council will keep developments under review on a regular

basis.

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II.

16.

INNOVATION

Investment in education, research, technology and innovation is a key driver of growth, and

innovative ideas that can be turned into new marketable products and services help create

growth and quality jobs. The European Council called for the implementation of a strategic

and integrated approach to boosting innovation and taking full advantage of Europe's

intellectual capital, to the benefit of citizens, companies - in particular SMEs - and

researchers. It will monitor progress in the framework of the follow up to the Europe 2020

Strategy.

17.

In this connection, the European Council noted the trends and developments revealed by the

current Commission innovation scoreboard. It invited the Commission to quickly develop a

single integrated indicator to allow a better monitoring of progress in innovation. It will keep

developments concerning the above under review.

Tackling the grand societal challenges

18.

Innovation contributes to tackling the most critical societal challenges we are facing. Europe’s

expertise and resources must be mobilized in a coherent manner and synergies between the

EU and the Member States must be fostered in order to ensure that innovations with a societal

benefit get to the market quicker. The launch of the pilot Innovation Partnership on active

and healthy ageing is an important step in that context. Regular monitoring by the Council

will be necessary in order to reach long term objectives as well as concrete goals to be fixed

year by year.

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Completing the European Research Area

19.

Europe needs a unified research area to attract talent and investment. Remaining gaps must

therefore be addressed rapidly and the European Research Area completed by 2014 to create a

genuine single market for knowledge, research and innovation. In particular, efforts should

be made to improve the mobility and career prospects of researchers, the mobility of graduate

students and the attractiveness of Europe for foreign researchers. Furthermore, information

about publicly financed R&D should be better disseminated, whilst respecting intellectual

property rights, notably through the establishment of an inventory of EU-funded R&D, linked

to similar inventories of R&D programmes funded at national level.

Improving framework conditions for innovative companies

20.

Private investment in innovative products and services should be encouraged, in particular by

improving framework conditions. In this regard, the Commission is invited to:



make proposals to accelerate, simplify and modernize standardization procedures,

notably to allow turning industry developed standards into European standards under

certain conditions;



provide guidance on the application of the Directives on public procurement; more

generally public procurement should be better geared to creating greater demand for

innovative goods and services;



conduct a mid term review of the relevant State aid frameworks during 2011;

explore options for setting up an intellectual property rights valorisation instrument at

the European level, in particular to ease SMEs' access to the knowledge market and to

report back to the Council by the end of 2011.

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21.

Rapid progress is required in key areas of the digital economy to ensure the creation of the

Digital Single Market by 2015, including the promotion and protection of creativity, the

development of e-commerce and the availability of public sector information.

22.

Every effort should be pursued to lift remaining legal and administrative obstacles to the

cross-border operation of venture capital. The Commission is invited to present proposals by

the end of 2011:



for putting in place an EU wide venture capital scheme building on the EIF and other

financial institutions and in cooperation with national operators;

for scaling up the Risk Sharing Finance Facility;

and for assessing how best to meet the needs of fast growing innovative companies

through a market-based approach. In this connection the Commission is also invited to

explore the feasibility of a Small Business Innovation Research Scheme.

Prioritizing public support

23.

In conducting fiscal consolidation, Member States should give priority to sustainable growth-

friendly expenditure in areas such as research and innovation, education and energy.

24.

Such efforts should be coupled with clear reform measures aimed at boosting the

effectiveness of Member States' research and innovation systems. At national level, Member

States recall their willingness to devote at least 50% of ETS revenue to finance climate-

related action, including innovative projects. They should also improve the use of existing

Structural Funds allocated to research and innovation projects.

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23.

It is crucial that EU instruments aimed at fostering R&D&I be simplified in order to facilitate

their take up by the best scientists and the most innovative companies, in particular by

agreeing between the relevant institutions a new balance between trust and control and

between risk taking and risk avoidance. The Commission is invited to make proposals by the

end of the year, ensuring that the full range of research and innovation financing instruments

work together within a common strategic framework. The development of financing

mechanisms adequate for the financing of major European projects that are important drivers

for research and innovation should be explored. It is more than ever crucial to improve the

efficiency of public expenditure at national and EU levels. In this connection, the

simplification of the financial regulation should be adopted by the end of the year in order to

ensure effective delivery mechanisms for EU policies.

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