Strasbourg, 05/07/2011 (Agence Europe) - The European Parliament is calling for there to be a list of selection criteria for priority energy infrastructure projects by 2020. It defends the issuance of European bonds to finance major infrastructure.
Approving the report by Francisco Sosa Wagner (NA) by 590 votes to 43 and 12 abstentions, the Parliament gave its support for a 10-year strategy (2010-2020) for upgrading and developing the EU's energy infrastructure, a strategy that was tabled in November by the European Commission. MEPs confirm the essential role of the market in the planning and development of infrastructure projects but insist on the EU's role in the process, especially when it comes to selecting projects of European interest. They also put forward a list of criteria for selecting priority projects that meet the most urgent needs of Europeans, connect energy islands to the rest of the grid, reduce network losses and single supplier dependency, and integrate renewable energy sources into the network. All projects with added value for the EU should be given support, even the smaller ones, the Parliament underlines, welcoming the Commission's proposal to create a one stop shop at national level for every project of European interest. The European executive is nonetheless called on to ensure greater coordination in terms of cross-border projects.
On the subject of financing, the Parliament reiterates that a properly-functioning market should provide a large share of infrastructure investment, on the basis of the principles of cost-allocation and user pays. However, it recommends EU financial support for a limited number of projects of European interest that are not commercially viable but which are very important for achieving EU energy policy objectives “when the market alone cannot cover the investments needed”. MEPs also suggest that innovative financing instruments be developed, and back the idea of issuing common European project bonds to finance the EU's major infrastructure needs. These bonds would secure the necessary investment and also create conditions for attracting private sector funding. Loan guarantees, too, are envisaged, as well as risk-sharing systems, public-private partnerships and EIB assistance for making funds available.
Yannick Jadot (Greens, France) welcomes the importance given to the integration of renewables, especially through the deployment of smart networks. He welcomes the concept of setting out priorities depending on the needs of infrastructure. Priority, he said, must be given to energy savings and the modernisation of existing structures. If a new construction is needed, he added, it must be done along existing energy, telecommunication and transport infrastructure lines. He calls for an in-depth study and monitoring of shale gas. Jadot also specifies that the Parliament calls first of all for projects underway for carbon capture and storage (CCS) to be assessed before building carbon carrying pipelines. Finally, Jadot speaks of the importance of improving transparency and public participation, both at European and local levels.
The next step will be for the Commission to submit a legislative proposal this autumn. (E.H./transl.jl)