INTELLIGENT ENERGY FOR EUROPE
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1 MULTINATIONAL FRAMEWORK PROGRAMME INTELLIGENT ENERGY FOR EUROPE Presented by THE EUROPEAN COMMISSION COMMENTS AND RECOMMENDATIONS by Bernard LAPONCHE Energy policy and energy efficiency expert CONTRIBUTION TO THE PUBLIC HEARING EUROPEAN PARLIAMENT COMMITTEE ON INDUSTRY, EXTERNAL TRADE, RESEARCH AND ENERGY Brussels, September 11, 2002
2 Table of Contents INTRODUCTION... ERROR! BOOKMARK NOT DEFINED. 1. OBJECTIVES... ERROR! BOOKMARK NOT DEFINED. 1.1 STRATEGIC OBJECTIVES...ERROR! BOOKMARK NOT DEFINED. 1.2 ORGANISATIONAL OBJECTIVES...ERROR! BOOKMARK NOT DEFINED. 1.3 SPECIFIC OBJECTIVES...ERROR! BOOKMARK NOT DEFINED. 2. FIELDS OF APPLICATION... ERROR! BOOKMARK NOT DEFINED. 2.1 ON ENERGY DIVERSIFICATION...ERROR! BOOKMARK NOT DEFINED. 2.2 ON GLOBAL APPROACHES...ERROR! BOOKMARK NOT DEFINED. 2.3 ON INTERNATIONAL CO-OPERATION...ERROR! BOOKMARK NOT DEFINED Economies in transition...error! Bookmark not defined Strategic and policy issues...error! Bookmark not defined. 3. WORK PROGRAMME... ERROR! BOOKMARK NOT DEFINED. 3.1 ELABORATION...ERROR! BOOKMARK NOT DEFINED. 3.2 IMPLEMENTATION...ERROR! BOOKMARK NOT DEFINED Responsibilities and tasks at Union level...error! Bookmark not defined Major tasks...error! Bookmark not defined. 5. THE FINANCIAL RESOURCES AND THEIR USE... ERROR! BOOKMARK NOT DEFINED. 5.1 BUDGET VERSUS CHALLENGE...ERROR! BOOKMARK NOT DEFINED. 5.2 THE BEST USE OF SEED MONEY...ERROR! BOOKMARK NOT DEFINED A guideline programme...error! Bookmark not defined Networks and Agencies as relays...error! Bookmark not defined. -1-
3 INTRODUCTION The Commission of the European Communities has presented a proposal for a decision of the European Parliament and of the Council for the adoption of a multiannual programme for action in the field of energy: Intelligent Energy for Europe Programme ( ): document COM(2002) 162 final/2, dated April 24, The Committee on Industry, External Trade, Research and Energy of the European Parliament has convened a Hearing of experts on this Programme, to be held in Brussels on September 11, Mrs. Eryl Margaret McNally is Rapporteur for the Programme. The present paper presents an expert s view on the Intelligent Energy for Europe Programme, based on the Commission s proposal and taking into account a list of questions regarding matters of interest for the public Hearing prepared by the Rapporteur. -2-
4 1. OBJECTIVES 1.1 STRATEGIC OBJECTIVES The Commission s proposal to establish a multiannual programme for action in the field of energy over the period, Intelligent energy for Europe, is a positive initiative for the achievement of the Community energy strategy objectives (as presented in Article 1): security of supply, competitiveness and environmental protection. This proposal is in line with the main conclusion of the Green Paper entitled Towards a European strategy for the security of energy supply ( The European Union must take clear action to shift the balance away from supply policy towards a policy focused on demand ), and with the Commission s communication entitled A sustainable Europe for a better world: a European Strategy for sustainable development. If the European Union wants to achieve its commitment on the reduction of greenhouse gases emission in the framework of the Kyoto Protocol, a vigorous European policy for energy demand efficiency and renewable energy development must be an absolute priority. The Intelligent Energy for Europe Programme will complement and reinforce the Community actions in the field of legislation (directives) on energy efficiency and renewable energy source development. Due to the importance of the economic and social factor in energy development, in particular in view of the accession to European Union of Central European countries, we recommend to add explicitly social and economic cohesion as one of the general objectives presented in Article 1, paragraph 2, as item d) (at the same level as security of supply, competitiveness and environmental protection). 1.2 ORGANISATIONAL OBJECTIVES Article 1 underlines the important objectives of transparency, coherence and the co-ordination of all the activities and other measures in the energy sector. Merging the previous DG TREN programmes in a unique framework programme is a welcome initiative for ensuring an improved consistency between the various actions. But Community actions in the field of energy and particularly in that of energy efficiency and -3-
5 renewable energy sources are also carried out by other DGs, both within the EU and in international co-operation (DG Development and DG External Relations). Measures to improve co-operation between DG TREN and the other concerned DGs are absolutely necessary, such as establishing one Co-ordinating Task Force ( Intelligent Energy Task force ) on energy efficiency and renewable energy development to ensure the coherence and complementarity of the various Community actions. 1.3 SPECIFIC OBJECTIVES The specific objectives of the programme are presented in Article 2. Paragraph a) needs clarification in relation with Article 3 (see below). Paragraph b) is particularly welcome since it gives to the programme the ambitious goal to bring about a genuine change in energy behaviour in the Community by raising awareness among the main players concerned, business and citizens in general This objective must be considered in relation with statement n 18 of the preliminaries of the Decision s proposal which insists on the fact that Given that the programme objectives, which concern the implementation of the Community strategy in the fields of energy contributing to sustainable development, cannot be achieved by the Member States acting individually since a promotion campaign and exchanges are required, based on close cooperation on a European scale between the various players at national, regional and local level, and can therefore be better achieved at Community level, the Commission may take measures in accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty. Both declarations confirm an important increase in the responsibilities of the Commission as the major actor at Community level to achieve the goal of an energy intelligent Europe through its own actions and initiatives, and also through the organisation of exchanges and common actions which have to be implemented by the member countries at national, regional and local level on the basis of the subsidiarity principle. This leads to analyse the priorities, the work programme, the implementation instruments, and the magnitude of the new programme Intelligent Energy for Europe. -4-
6 2. FIELDS OF APPLICATION The four fields of application of the programme are defined in Article 3. We do not think that very specific definitions are needed: the programme should be kept open, in particular for multi-sectoral or horizontal activities (see below). Here follow some comments on this article and its consistency with Article ON ENERGY DIVERSIFICATION An ambiguity lies with the expression energy diversification which appears in paragraph a) of Article 2, appears again in the indicative breakdown of the Annex in the form of diversification of energy supply, associated with new and renewable energy sources, and only in the STEER component of the programme, as diversification of fuels in the Transport sector. To avoid any misunderstanding, we recommend to clarify this issue, by maintaining only New and renewable energy sources in the corresponding line of the financial breakdown and by rephrasing paragraph a) of Article 2 to be in agreement with Article ON GLOBAL APPROACHES Paragraph a) of Article 4 declares that the Community funding under the programme shall be for measures or projects concerned with the implementation of medium and long term energy strategies. The establishment of such strategies at Union, national, regional or local levels need an integrated approach. Even if we limit this approach to energy efficiency and renewable energy source development, the exercise must be multi-sectoral. This horizontal aspect is not covered by the separation in the four fields of the programme as it is presented in Article 3, and that is partly contradictory with the global approach of Article 4. Therefore, we recommend that Article 4 include a clear indication on the location of the global strategy or policy studies presented in Article 4 and which are an absolute necessity to develop comprehensive and appropriate programmes and projects. We propose to include them in the SAVE component of the programme. This probably leads to an increase in SAVE s share of the budget. -5-
7 2.3 ON INTERNATIONAL CO-OPERATION The COOPENER component deals with international co-operation in the field of energy efficiency and renewable energy source development Economies in transition In the definition of COOPENER, only the developing countries are mentioned. Due to the alarming situation for energy efficiency in countries with economies in transition and the importance of the energy relations between the EU and several of them, and taking into account the fact that the candidate countries are integrated in the other components of the programme, we propose for COOPENER the following definition: COOPENER, which concerns support for initiatives relating to the promotion of renewable energy sources and energy efficiency in the developing countries and in non candidate countries in transition. It is also important that the non candidate countries in transition do not feel themselves excluded from a Community programme which would cover the whole non OECD world, save them Strategic and policy issues To answer a question raised Do you think that COOPENER is an adequate successor of SYNERGY, the answer is yes if items a) and b) of Article 4 are clearly part of the scope of COOPENER. In the international co-operation area, strategy studies and common work between EU and non-eu organisations and experts on energy policy issues are of utmost importance (as is shown by the EU-Russia Energy Dialogue or the Mediterranean Energy Forum). This dimension was one of the first objectives of the SYNERGY programme. We recommend that this aspect be included in the COOPENER component by adding the following sentence at the end of Article 3 d) : as well as strategy and policy studies carried out with these countries. -6-
8 3. WORK PROGRAMME 3.1 ELABORATION The question of the work programme, presented in Article 5, is as important as that of the objectives and the fields of application: the success of a programme depends heavily upon the methods of implementation, the choice of the programmes and projects to be supported, monitoring, etc. This is shown by the experience of the previous programmes. Article 5 gives the headlines of the components of the work programme but no indication on their content. We think that, in order to improve the quality of the Energy Intelligent Europe programme, the work programme should be prepared and discussed in a wider area than that of the Committee proposed by Articles 5 and 8. We think that the best solution would be to enlarge, at least in the preparatory phase and for consultation only, the Committee referred to in Article 8 to representatives of the European Parliament and independent experts in the fields of application of the programme. At least, a consultation of experts and members of Parliament should be organised on the work programme. 3.2 IMPLEMENTATION The question of the work programme raises important issues which are discussed in the explanatory memorandum of the Commission s proposal, as well as in the chapter Description and grounds of the Legislative financial statement, notably in item 5.3 on Methods of implementation which present in particular the possible role of an executive Agency to manage and monitor the programme. The proposal of creation of such an Agency offers the interest of allowing the Commission to take in charge more effectively policy-oriented activities Responsibilities and tasks at Union level The Commission s proposal calls for an intelligent energy policy at EU level and, to achieve this goal, for a common action by the Union and each Member State, in all activity sectors and by all concerned actors (European Council and European Commission, -7-
9 administrations and national governments, regional and local authorities, enterprises, professional associations, NGOs, households ). Taking into account subsidiarity, the tasks and responsibilities at Union level include: - Establishing European objectives. - Establishing rules and legal frameworks (directives). - Following and evaluating national programs and directives. - Organising and promoting experience and know-how exchanges in order to create a positive synergy with national efforts. - Helping to reinforce the capacities of disadvantaged countries and areas in order to strengthen economic and social cohesion in the Union (in particular in accession countries). - Facilitating the spreading of energy efficiency techniques and methods and helping to apply best practices. The Union should simultaneously be legislator, promoter, animator and evaluator Major tasks In addition to the traditional role of legislation, the Intelligent Energy for Europe Programme must include three types of activities: animation and co-ordination, promotion, communication and implementation of projects. Animation and co-ordination consists in supporting networks (both existing and new ones) which are active in energy efficiency: network of national agencies, regional and local institutions, enterprises, professional associations, NGOs This activity should provide mutual benefit through the sharing of best practice experiences and the adding of a European dimension to the national activities. Promotion encompasses organising and supporting of training, information provision and communication throughout the Union, in order to enable all users to access best techniques and methods. Communication should focus on large-scale dissemination of existing energy efficiency techniques by European marketing campaigns. A special emphasis should be placed on -8-
10 attracting financial investment, which is still the main stumbling block for large-scale implementation. An important task should be to organise dialogues with the equipment industries to establish together, for internal and external markets, the highest energy efficiency standards for equipment and appliances. These industries should be a strong support for the EU energy efficiency policy. Implementation : projects have to be defined very precisely in order to avoid problems with subsidiarity. Projects can be subdivided into four areas: - Studies and projects which illustrate a general character or a proven advantage for the Union as a whole (e.g. expanding good practice examples at EU level). - Projects which have a European character and help to create an added European value as well as a positive synergy between the different actors in the different countries. A concrete example would be the co-ordination of grouped subscriptions for particularly energy efficient household appliances, computers, etc. - Projects which have an international character in developing and emerging countries, and countries in transition over the next few years. A strong international action by the EU is needed to ensure a close co-operation on energy efficiency with these countries, for the advantage of both world climate and the European industry. In particular, hundreds of millions of new appliances as well as infrastructures important for energy demand (buildings, transport systems) will appear in countries such as China, India, Brazil, South Africa and Indonesia in the next few years. Helping such countries set up the framework to ensure a high energy efficiency should be a priority for European international co-operation. - Projects which help the economic and social cohesion of the Union, particularly in the less privileged zones and in the accession countries. - Projects aimed at the development of new financing mechanisms, in particular through the creation of a European Investment Fund for Energy Efficiency (in relation with greenhouse gas emission reduction). -9-
11 5. THE FINANCIAL RESOURCES AND THEIR USE 5.1 BUDGET VERSUS CHALLENGE The 215 M¼SURSRVHGSURJUDPPHEXGJHWRYHUDSHULRGRIIRXU\HDUVUHSUHVHQWV an increase in real terms of 27.4 M, that is 15% (page 41 of the proposal document). This modest increase is clearly not consistent with the goals and commitments of the Community on security of supply as well as on environment protection (notably climate change), nor with the objectives assigned to the Intelligent Energy for Europe Programme in the Proposal for Decision. Even if we take into account the financial efforts of the member countries in the development of intelligent energy, we are far from the requirements of a really innovative and ambitious European intelligent energy policy needed both at Union and international levels. It is up to the Governments, the Council and the European Parliament to take their political responsibility on an issue for which the risks for security of supply and for environment as well as the commitments for climate change and for the enlargement process and, therefore, global and specific objectives, have been clearly presented by the Commission s communications and documents. 5.2 THE BEST USE OF SEED MONEY If the budget remains low because of lack of political coherence and will, a significant effort must be engaged for the optimal use of a small budget which must be considered as seed money for obtaining the largest possible level effect. This level effect should be obtained through two channels A guideline programme The idea is to use the Intelligent Energy for Europe Programme as the Guideline programme in the field of energy efficiency and renewable energy sources for the other Community programmes, both those operating inside the Union and candidate countries (Structural funds, Phare, Environmental programmes, etc.), and those of international cooperation (Tacis, Meda, Lome programmes ). -10-
12 This would require, as was proposed above, to set up a specific inter DG co-ordination initiative, such as a specific inter-directorate Intelligent Energy Task Force Networks and Agencies as relays The idea is to use the member States organisations (national agencies and their network E n R) and the European networks such as FEDARENE, ENERGIE-CITES, ISLENET, as well as their national networks, and other European associations (for instance ECEEE, professional associations, NGOs, etc.), as relays for the implementation of pluriannual programmes elaborated with the Commission and funded or co-funded by the Intelligent Energy for Europe Programme, in order to ensure the functions of promotion of the EU programmes, animation of all the intelligent energy developments in Europe, exchange of information, experience & practices, and capacity building at all levels. -11-
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