Strasbourg, 28/09/2005 (Agence Europe) - During a debate on Wednesday, MEPs and the acting president of the Council of the Union, Douglas Alexander, Commissioner for energy, Andris Piebalgs, called for the opportunity provided by the new kind of oil crisis (characterised by sharp price volatility, supply - limited reserves, insufficient refinery capacity and poor vision of the oil markets, demand -characterised by increased demand, notably determined by frenetic demand in emerging countries, particularly China) to be seized so that alternative energies and renewable energy were prioritised. A broad consensus appeared to be taking place among MEPs through their political groups on Wednesday afternoon with the recognition that renewable energy was the energy of the 21st century. Claude Turmes, rapporteur for renewable energy (Greens, Luxembourg) explained that, “there are many MEPs, from all the political groups, who realise that in the middle of an oil crisis, there is renewable energy, 202 kinds of different energy sources that exist abundantly in nature, and whose investment and exploitation costs have considerably decreased. Europe is a leader on the world market for renewables thanks mainly to the efforts of Germany, Denmark and Spain”. In effect others, such as Fiona Hall (ADLE, United Kingdom), the Italian Umberto Guidoni (GUE/NGL), the German Mechtild Rothe (PES), Spaniard Alejo Vidal Quadras (EPP-ED), Riitta Myller (PSE, Finland), Austrian Paul Rübig (PPE-DE) underlined the need for the Union to move towards the greater use of renewable energies and to focus more investment on the framework of new technological research development into the use of these sources. At the end of the debate, the Commissioner for energy Andris Piebalgs welcomed the interest shown by Parliament for a sustainable energy policy and renewables. Nonetheless, he considered that in this domain, a “radical change in mindsets” was necessary, at both a political decision making level and that of citizens. He also said that they needed sufficient funding for developing renewable energies in the 7th Research Development Framework Programme.
Although the debate often focused on renewables, its theme included measures the Union could take in the short term in dealing with the serious oil crisis. Mr Alexander admitted that the high price levels for oil represented a risk to world growth, particularly in the Union. He pointed out that despite pressure on supply, demand was the essential factor in this crisis. The President of the Council pointed out that “a global response is needed to ensure stability in world growth. Investment in technology, greater refinery capacity, open, competitive and transparent prices and a suitable regulatory framework are necessary to obtain maximum price stability”. The question of market transparency was raised throughout the debate. In this context, Hannes Swoboda (PES, Austria) highlighted the need for the Union to make sure that oil companies invested their profits in new oil technology as well as in alternative energy. Paul Rübig (EPP-ED, Austria) asserted that oil companies and governments had to “efficiently invest” the financial and tax revenues resulting from high oil prices. On the fiscal issue, Dimitrious Papadimoulis (Greece, GUE/NGL) considered that the Council should impose a European tax. Ivo Belet (EPP-ED, Belgium) called for social measures for the most vulnerable citizens, as well as a temporary reduction in VAT on heating. Giles Chichester (EPP-ED, United Kingdom) proposed international agreements in the aviation sector, which was not taxed in order “to economise on fuel”. Mr Piebalgs pointed out that according to the European Commission there should be a monitoring of Member State coordination in order to avoid tax distortions. Addressing the issue of transport, Mr Turmes pointed out that in the recent five point plan of the Commission (EUROPE 9021) there was no serious and effective action regarding the sector (which consumes 70% of oil in the Union). The Luxembourg MEP said that “the Commission as a whole has to take responsibility, notably Messrs Barrot and Kovacks”. Ms Hall and Mr Swoboda declared that they wanted a global Commission strategy in the transport and agriculture sectors. The question of mastering demand often led to the question of energy saving, and notably, the directive on energy efficiency in services and final use, which are still on the Parliament and Council's table. Many MEPs called on the British presidency to take action to help this dossier move forward.