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Europe Daily Bulletin No. 7995
Contents Publication in full By article 37 / 42
GENERAL NEWS / (eu) eu/energy

Reactions from ECSC and economic circles concerning Green Paper on EU energy supply

Brussels, 28/06/2001 (Agence Europe) - By launching, last 29 November, its Green Paper of EU energy supply (see EUROPE of 21 November 2000) the Commission intends to open the debate on the issue. Successful operation to the extent that the document has already caused a certain number of reactions from the areas concerned. On 21 June, it was the turn of the ECSC (European Coal and Steel Community) to react through an opinion in which, while supporting the Commission's guidelines, it calls for a more significant place to be given to coal. The same day, organised in the offices of the Parliament, a hearing was held that revealed a certain number of differences in views between the economic circles as to the energy sources to be privileged.

In its opinion, the ECSC Advisory Committee brings its support to the main guidelines developed by the Commission in its Green Paper in view of ensure, for the EU, an energy supply that is secure, diversified and sustainable in conditions of optimal competition. With regards to energy savings, the Committee feels that the Commission action must now concentrate ion the improvement of energy efficiency in transport, private buildings and the tertiary sector, the last two categories cited represents 75% of the final energy consumption. The ECSC also underlines that the market must constitute the reference for the European energy policy. In this matter, it calls for an acceleration of the liberalisation of the gas and electricity markets, calls on the public powers - including the Commission - to intervene as little as possible in the energy markets and calls for an intensification of the international dialogue and the establishment of cooperation agreement with the main energy supplying countries in the EU.

With regards to the diversity of supply sources, the Green Paper foresees the maintaining of a "Coal base" in order to limit the Union's reliance on third countries (see yesterday's EUROPE, p.16). On this point, the ECSC Advisory Committee feels that the Commission does not go far enough and deplores that the Green Paper ignores the fact that coal may both reduce the risks in terms of supply and bring a substantial contribution towards the protection of the environment and the climate, notably through new processes such as the storage of carbon dioxide. Though, for the clean technologies applicable to extraction industries to develop, it requires, underlines the Committee, that the coal and steel industry has a equal right to access to the research fund. Furthermore, the Committee emphasises that maintaining coal production constitutes a significant factor in terms of employment and social cohesion for the regions concerned, but that this aim is subordinate to certain conditions: on the one hand, it requires a certain latitude to be given to the Member States to define their respective levels of production and consumption; on the other hand, it is necessary to rapidly develop a new aid code for the coal sector based on the EC Treaty, since the ECSC Treaty expires in 2002. Finally, with regards to the steel industry, the Committee feels that the taxes on energy are counterproductive as they deprive steel producers from financial resources that could be used to develop technologies aiming to reduce energy consumption.

Hearing in Parliament: each preaches for his congregation

Before formulating the EP's position on the Green Paper, the Parliament rapporteur, the British Conservative Giles Chichester invited representatives from the sectors concerned by the issue of energy supply. The hearing revealed a certain number of divergences in opinions, each preaching for his congregation. Thus Wolfgang Schnollberger, President of the International Gas and Oil Producers Associations, insisted for the security of supply in hydrocarbons and on the positive aspects of natural gas, while refusing to speak out on the issue of the rise in natural gas and oil prices. The President of the British Confederation of Coal Producers, R J Budge, as for him, defended the merits of clean coal: by opting for power stations using this kind of fuel, the EU would have to opportunity to respect their undertakings made in Kyoto, he pleaded. The Vice President of Cogema for research and development, Bertrand Barre, for his part explained that the energy from nuclear fission emits practically no CO2 into the atmosphere. Finally, the Vice President of the Fedarene and Environment Commissioner for the government of Upper Austria, Gerhard Dell, felt that the renewable energy sources could reduce the EU's energy dependency and even lead to new opportunities for its agriculture and regional cohesion.

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