RESOLUTION OF THE ECSC CONSULTATIVE COMMITTEE on the review of Member States' energy policies and of the progress made towards meeting the Community's 1995 energy objectives (Adopted unanimously at the 273rd Session held on 4 October 1988, with two abstentions) (88/C 277/06)

THE CONSULTATIVE COMMITTEE, having examined the results set out in the Commission's Communication to the Council on the 'Main findings of the Commission's review of Member States' energy policies - the Community's 1995 energy objectives' and noted, along with the Commission, the considerable risks arising from this for the Community;

Mindful of the sectoral and horizontal energy objectives as set out in the Council's Resolution of September 1986 (1), and in particular, the recognition of the role of solid fuels as one of the key areas;

Recalling its Resolutions of 17 May 1984 (2), 29 March 1985 (3) and 28 June 1985 (4);

Concerned at the rate of progress in achieving a number of the energy objectives for 1995 and, in particular, at the disquieting developments in the fields of improved energy efficiency and the promotion of the use of solid fuels, likely to result in the increased use of hydrocarbons;

Conscious that this trend, if allowed to continue, and bearing in mind also the fact that the likely growth in forward energy demand may well have been underestimated, would leave the Community at risk of becoming once again substantially more dependent upon oil and natural gas imports from unsure and potentially volatile sources of supply, that could provoke a third oil price shock;

Believing that the reasons for the disappointing developments with regard to the use of solid fuels have been the recent abnormally low prices of oil and gas, uncertainty about forward price movements, uncertainty about the effects of possible environmental legislation, and also the absence of corrective measures;

Conscious both of the need of the Community's coal industry, with its vitally strategic and security role, to pursue its efforts to improve its competitiveness and of the obstacle represented for it by the present level of prices on the international coal market;

Believing that the Community should strengthen the role of the authorities and European operators with regard to imports and in the international market generally, as a means of maintaining a satisfactory degree of independence and to promote Community exports of know-how and equipment;

1. DRAWS THE ATTENTION of the Commission to the fact that if the 1995 energy objectives, and in particular, that for solid fuels, were not to be achieved, the risks for the period beyond 1995 could grow rapidly with potentially serious consequences in both the energy and general economic fields;

2. CONSIDERS therefore that the 1995 energy objectives should be re-affirmed and the appropriate measures taken to ensure their realisation;

3. REQUESTS the Commission, in fields other than solid fuels, to draw the attention of Member States:

(a) to the importance of maximising energy efficiency;

(b) to the need to vigorously apply the two 1975 Council Directives 75/404/EEC and 75/405/EEC (5), and if necessary to reinforce them to limit the use of petroleum products and natural gas in power stations to 15 % at Community level in line with the Community's energy objectives set out by the Council in September 1986;

(c) to the need to moderate the advance of natural gas in line with the degree of energy security that it is able to ensure;

(d) to take account of the current virtual stagnation and future uncertainty in the Community and indeed in the world as a whole of the development of nuclear power;

(e) to stress the importance of pursuing the development of renewable forms of energy;

4. CALLS on the Commission, with regard to solid fuels, to work for a combination of indigenous and international coal that will result in an economically and strategically satisfactory overall supply of solid fuels capable of meeting the objectives for 1995 and beyond by the following means:

(a) making solid fuels the preferred choice over gas and oil in power stations;

(b) recognising the importance of Community coal production and the need to continue to improve its productivity as a means of security of supply and of price stability by facilitating long term contractual arrangements with electrical utilities, while taking account of an indispensable complement of solid fuel imports;

(c) promoting the use of solid fuels in industry, public buildings, and district heating by such means as substantially increased interest-rebate facilities and the generalization of the system already used in France designed to facilitate the installation at an attractive price of coal-based heating units;

(d) ensuring a proper supply to the steel industry under satisfactory conditions;

(e) substantially increasing and at least doubling Community funding for Research, Development & Demonstration for installations which consume solid fuels (e.g. for the key techniques of fluidized bed and combined cycles) so as to enhance their environmental acceptability;

(f) substantially increasing interest-rebate facilities for loans for Community mining investments;

(g) strengthening the social measures, in particular by giving effect to a social volet for the coal sector rather than reducing readaptation aid as envisaged in the recent Commission decision;

(h) promotion a reasonable overall balance between Community energy and environmental objectives;

(i) mobilising the necessary Community financial resources for these objectives to be met without increasing the ECSC levy;

5. REQUESTS therefore that the Commission should:

(a) urgently seek Council approval for the transfer of the whole of the ECSC import duties from the EEC to the ECSC budget so as to ensure the financing of a social volet for coal as well as that for steel;

(b) seek to ensure that some part of the Structural Funds, which are due to double, will be used in a manner helpful to both ECSC industries;

(c) examine the possibility of guaranteeing the ECSC loans through the EEC budget, thus liberating the ECSC reserves and guarantee funds, if necessary in a graduated manner, for the pursuit of Community coal and steel policy objectives.

(1) OJ No C 241, 25. 9. 1986, p. 1.

(2) OJ No C 160, 20. 6. 1984, p. 2.

(3) Not published in the Official Journal.

(4) OJ No C 190, 30. 7. 1985, p. 3.

(5) OJ No L 178, 9. 7. 1975.