Brussels, 14/03/2008 (Agence Europe) - One year after an ambitious three-year energy plan of action 2007-2009 for Europe was adopted (see EUROPE 9383), on Friday 14 March, the European Council reaffirmed the importance it attaches to strengthening the energy security of the EU and its member states. Beyond the usual discourse on the need for a common energy policy, an integrated internal energy market, greater solidarity among member states, use of clean, energy sources and more energy savings delivered to the press by the President of the European Council, Slovenian Prime Minister Janez Jansa, and European Commission President José Manuel Barroso, Romano Prodi summed up the debate. “There is a realisation that it is essential that the internal energy market works properly. Moreover, it is essential urgently to invest in energy transport networks. We will not be able to act on the international stage, particularly against Russia if our countries are not properly interconnected. In discussion, we spoke mainly about isolated countries, the Baltic countries in particular,” he said. In their conclusions, European leaders agreed that the two rafts of legislative measures currently under co-decision discussion, i.e. the energy/climate change package of January 2008 (see EUROPE 9586) and the 3rd package on the internal energy market (see EUROPE 9505), the strategic energy technology plan (the SET plan, see EUROPE 9549) and the measures to strengthen the external dimension of the common energy policy must contribute to EU energy security.
Energy and Climate change - With bitter negotiations going on between the Council and the European Parliament on the proposal for a directive on the promotion and use of renewable energy, the European Council stresses the need to show flexibility if the 2020 targets, which it set in March 2007 (20% of the EU energy mix to come from renewables, and biofuels to account for at least 10% of the total fuel used in the transport sector in each member state) are to be reached and effective national support systems are to be put in place. In addition, it notes that it is essential to develop and meet long-term viability criteria for biofuels and ensure the commercial viability of second generation biofuels. It says that, in the future, other forms of biomass could be used to produce energy.
Internal Market - With three months to go before the end of the first examination in codecision of the 3rd legislative package for liberalisation of the internal market for electricity and gas, the European Council points out that an effective, fully-functioning and interconnected internal energy market is an essential condition for secure, sustainable and competitive supply of energy in Europe. It therefore urges the Energy Council to finalise its work in order to reach a political agreement by June 2008, taking full account of the Spring 2007 European Council conclusions. We recall that the stumbling block in this dossier remains the issue of effective unbundling between production and supply and energy operator network activities.
Energy technologies - Stressing the need for sustained R&D investment and active integration of new, clean technologies, the European Council gave its support for the “SET-plan” proposed by the Commission end 2007 and recently approved by the Energy Council (EUROPE 9611).
External dimension - Once again, the European Council recalls the importance it attaches to enhancing energy security of the EU and its member states. In order to contribute to strengthening energy security, “work must also be vigorously pushed on further developing the external dimension of the 2007-2009 Energy Policy for Europe” (Council document 6778/08). The European Council welcomes the recent joint report from the High Representative and the Commission on the impact of climate change on international security (EUROPE 9618). The Council is expected to put forward recommendations by end 2008 on the appropriate follow-up measures, mainly on ways to step up cooperation with third countries.
Reminder of agenda for common energy policy - In its conclusions, the European Council covers the subject of the next deadlines for the common energy policy being developed. It will undertake a more complete assessment of progress of the 2007-2009 three-year energy policy and decide new measures if necessary in the light of the next strategic analysis of the energy policy that the Commission is to present in November 2008 with a view to the European Council in March 2009. This strategic analysis, to be geared to supply security, interconnection and external energy policy, will serve as a base for the three-year 2010-2012 action plan that the EU27 are to adopt in spring 2010.
Action to facilitate transition to a low carbon economy - Finally, given the major impact that transition towards a low carbon economy will have on economic policy and on the daily life of citizens, the European Council stresses the need to have coherent policies exploiting the synergies relating to energy and climate change within the framework of the Lisbon Strategy and other Community policies. EU policy areas would include: - developing coherent R&D and innovation policies at the European and national levels; - unlocking the business potential of eco-industries; - promoting a sustainable transport system; - considering a review of the energy taxation directive; - improving energy and resource efficiency in all sectors; - and informing the consumer about the efficient use of energy. Also, the European Council recognises that addressing energy and climate change is also a matter of shaping values and changing citizens' behaviour. It therefore urges national governments and European institutions to set an example by making substantial progress towards reducing energy use in their buildings and car fleets. (E.H.)