COUNCIL RESOLUTION of 18 December 1997 on a Community strategy to promote combined heat and power (98/C 4/01)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Council Resolution of 8 July 1996 on the White Paper 'An energy policy for the European Union` (1), which considers that energy efficiency can make a valuable contribution to a safer and healthier environment and reduce the Community's energy dependency on external sources and contribute to economic growth and employment,

Having regard to the Council conclusions of 3 December 1996 on 'Climate Change - the energy dimension`, which state that energy policy needs to make an active contribution to the work on climate change, and that the energy sector should engage in active and early participation in relevant policy development including initiatives on energy efficiency,

Having regard to the Council conclusions of 27 May 1997, which invited the Commission to prepare a Community strategy for the promotion of combined heat and power,

Having regard to the White Paper on Growth, Competitiveness and Employment, which demonstrates that clean technologies are a key to future economic prosperity and that it is important to use economic measures and incentives and/or fiscal instruments, if appropriate, to take into account external costs and environmental benefits, and thus improve the competitive situation of energy efficient concepts,

Having regard to the negotiations on the Third Conference of the Parties in the Framework Convention of the United Nations on Climate Change and the negotiating position taken by the European Communities in this context,

Having regard to the proposal for an energy framework programme for actions undertaken by the European Communities in the energy sector, and considering that the Commission's proposal to double the overall share of combined heat and power concerns the Community as a whole,

1. WELCOMES the presentation by the Commission of the Communication on a Community strategy to promote combined heat and power (CHP) and to dismantle barriers to its development;

2. EMPHASIZES that combined heat and power constitutes an efficient use of energy resources and thereby can be a significant contributor in reducing CO2 emissions;

3. NOTES that energy production and use, in the light of the Third Conference of the Parties in the Framework Convention of the United Nations on Climate Change in Kyoto in December 1997, will play an important role in order to reduce the principal greenhouse gases such as CO2;

4. CONSIDERS that the efficient use of energy from combined heat and power can contribute positively not only to the environmental policies of the European Union, but also to the competitive situation of the Union and its Member States and to security of supply;

5. NOTES that, at present, the penetration of combined heat and power varies significantly between Member States and that regard must be had to these different situations, including as concerns the use of CHP for district heating and/or CHP for industry purposes; assessment of country situations must be based on relevant data on fuel efficiency; and notes the economic differences between various combined heat and power technologies;

6. CONFIRMS that the aim should be to establish a strategy that would lead to improved use of combined heat and power, taking into account the varying situation of the Member States. The indicative target to double the overall share of combined heat and power in the Community as a whole by the year 2010, as mentioned in the Commission's communication, could give useful guidance for increased efforts at all levels;

7. STRESSES that, while there is scope for action at Community level, the main responsibility for promoting combined heat and power lies with the Member States;

8. UNDERLINES that the Member States and the Community, within their respective competences, need to actively promote the use of combined heat and power, by stimulating, where appropriate, the market for combined heat and power and by removing the barriers to this market;

9. CONSIDERS that such measures to promote the use of combined heat and power could include, among other things;

- increased use of existing Community programmes within the budgetary limits,

- encouraging negotiated agreements with industry and in the service sector,

- internalization of external costs and environmental benefits,

- financial and/or fiscal instruments, if appropriate,

- monitoring the impact of the liberalization of the Community's energy markets,

- measures encouraging market participants to buy energy produced from combined heat and power plants,

- arrangements to promote district heating and cooling schemes,

- measures to support research and technological development;

10. BELIEVES that the liberalization of the energy markets and the internalization of external costs and environmental benefits should take into account the development of combined heat and power under fair market conditions, but that measures might still be needed to support combined heat and power, including district and industrial heating and cooling, and to make sure that it is not discriminated against;

11. INVITES the Commission, to continue its work for the promotion of combined heat and power on the basis of the principles outlined above.

(1) OJ C 224, 1. 8. 1996, p. 1.