COUNCIL RESOLUTION of 23 November 1995 on the Green Paper 'For a European Union Energy Policy` (95/C 327/03)

THE COUNCIL OF THE EUROPEAN UNION,

1. CONSIDERS that the publication of the Commission Green Paper entitled 'For a European Union Energy Policy` published on 11 January 1995 is an important stage in the debate on a European Union energy policy;

2. NOTES with satisfaction the consultations on the Green Paper for a European Union energy policy organized with the Member States' energy authorities and with organizations representing energy operators and consumers within the Union;

3. RECALLS that, in accordance with its conclusions on 29 November 1994, improved competitiveness, strengthened security of supply, citizens' quality of life and enhanced protection of the environment, taking into account the obligations arising out of the Framework Convention on Climate Change, are main objectives to be considered in the context of energy policy; these objectives must also take into account the principle of subsidiarity, economic and social cohesion;

4. BELIEVES that any consideration of energy policy should be based on the following observations and principles:

- without prejudice to the role of the Member States and of industry, in accordance with the provisions of the Treaties, the Community does have a number of powers which imply a common view on Member States' approaches within the Community,

- there is always major uncertainty regarding long-term economic forecasting for energy, against which background energy policy must be defined in the long term; this is why energy policy, to the extent that it is based on a long term approach, must define the general framework which would allow, inter alia, undertakings to incorporate this uncertainty into their investment choices,

- an appropriate institutional framework in the energy field must be established taking into consideration the need to complete the internal market and to respect the general principles of competition, as well as, wherever they exist and according to the conditions established by the Treaty, the services of general economic interest,

- security of supply and satisfaction of energy needs on economically and environmentally acceptable terms presupposes in particular diversification and flexibility of supply and efficient use of energy in all sectors, as well as a research and technological development policy,

- means of transportation of fossil fuels and electricity, including networks, contribute to the security of European Union supplies and to the implementation of the internal energy market and must therefore be developed as appropriate,

- the clear link between energy policy and environmental and climatic protection makes it necessary to evaluate in depth the interrelation between environmental and energy policy initiatives,

- energy is a decisive long-term factor for the improvement of the competitiveness of European economies on which economic growth within the European Union is closely dependent,

- closer relations with third countries are imperative not only for the European Union security of supply but also because energy cooperation may contribute to economic development and political stability,

- the influence energy decisions have on the fundamental parameters of economic and social cohesion necessitates taking into account as appropriate, in the elaboration of energy policy, actions and programmes in the energy sector, the objective of strengthening economic and social cohesion;

5. CONSIDERS that an improved convergence of energy policies within the European Union must first consider use of existing Community instruments, should take into account the observations and principles mentioned above and should go towards:

- the incorporation of energy policies, including progress towards the completion of the internal market in natural gas and electricity, in the strategy for renewed growth, employment, competitiveness and cohesion within the European Union,

- regular assessment of the existing Community legislation in the energy sector and where necessary repeal of those rules that are no longer needed,

- better alignment of energy and environmental goals and, to this effect, consideration and, to the extent necessary and practicable, development of instruments such as economic incentives, internalization of environmental costs and the dissemination of information,

- the development of the requisite energy infrastructure, in particular trans-European networks, where the need arises and on economically viable terms,

- closer relations with third countries in the field of energy and, if appropriate, e.g. with signatories of the Energy Charter Treaty and with the Mediterranean countries, the development of international agreements, thereby creating a necessary dialogue on the fundamental aspects of energy policy,

- the promotion of efficiency and conservation in the energy field, including for example transport savings and, where appropriate, combined heat and power production, and the promotion of new and renewable energy sources and indigenous resources, for the purposes of environmental protection and of reducing energy dependence on satisfactory economic terms,

- the evaluation of existing measures and consideration of measures to be introduced, where necessary, taking into account, as appropriate and, inter alia, the role of the International Energy Agency to the extent of its specific competence, concerning supplies, so as to cope with possible risks of a cut-off of supplies and to contribute to security of supplies in the long term,

- diversification of supplies for the purpose of bringing stability to the energy sector, taking account of all forms of energy production, subject to compliance with the provisions of the Treaty concerning safety, security and environmental protection;

6. CONSIDERS that the operation of the internal market requires the strengthening of consultation and cooperation between the Member States within the Community and the development of Community methods of analysis, in particular with respect to the functioning of the market mechanisms, which could enlighten the Community decision-making process;

7. INVITES the Commission, when developing the White Paper, to continue its extensive consultations in particular with Member States.