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European Economic and Social Committee

Brussels, 25 September 2008

PLENARY SESSION
17 AND18 SEPTEMBER 2008
SUMMARY OF OPINIONS ADOPTED
Full text versions of EESC opinions are available in the official languages on the Committee's web site at the following address:

Registry CESE 124/2008 FR-EN/CVL/nm/ms

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The plenary assembly was attended by MrAndris Piebalgs,European Commissioner with responsibility for Energy, who spoke about climate change and energy policy.

1.ENERGY

  • The use of energy from renewable sources

–Rapporteur: MrRibbe (Various Interests– DE)

–Reference: COM(2008) 19 final – 2008/0016 COD – CESE 1511/2008

–Key points:

The EESC welcomes the draft directive and the renewables target of 20%. It sees renewable energies not only as a contribution to climate protection but also as correct in strategic energy-policy terms, leading to a higher degree of energy autarky and thus greater security of supply.

The objective of cutting CO2 by 20% by 2020, which is to be achieved by means of other directives, and the target of 20% of final energy from renewables, which is dealt with in this draft, are closely correlated and complement each other. They should, however, always be considered independently of each other, particularly as some renewable energies do not have a clearly positive impact on the climate (see point 6 on agrofuels).

The EESC wishes to make it clear that it fully supports the expansion of renewables and that it is aware that in the medium to long term a much higher percentage of renewables than the 20% envisaged for 2020 will be required if the Council's ambitious target (a 60-80% CO2 emissions reduction and greater energy autarky) is to be achieved.

The EESC notes that the strategic requirement for the partial substitution of diesel or petrol by agrofuels is one of the least effective and most expensive climate protection measures, and that it represents an extreme misallocation of financial resources. The EESC cannot understand why the most expensive measures are to be promoted politically with the greatest intensity, particularly as a huge number of environmental and social questions, let alone economic ones, remain completely unanswered. It therefore opposes the separate 10% target for agrofuels.

The environmental criteria set out in the draft do not go far enough. Moreover, social questions are not touched on at all, and the draft directive is completely inadequate in this respect.

–Contact:Mr Sven Dammann

(Tel.: 00 32 2 546 93 66 – email: )

  • Sustainable power generation from fossil fuels

–Rapporteur: MrSimons (Employers – NL)

–Reference: COM(2008) 13 final – CESE 1512/2008

–Key points:

The EESC endorses the mechanisms in the proposal for promoting the demonstration of CCS (Carbon Capture and Storage) in power stations, as set out in the Commission's Communication, however the lack of financing capacity and clearly established financing options for the medium (2010-2020) and long term (2020 and beyond) is a concern.

Care should be taken to ensure that the lack of financing capacity by the Commission can be partly compensated by revenue generated via the European Emission Trading Scheme (EU-ETS) e.g.through the auctioning of emission allowances by the power generating sector after 2013. It is important to note that so far, no specific financial scheme  including necessary security  has been suggested at EU level.

It is important that financial conditions are clear and well-established by the end of 2009 at the latest. Only this will ensure a financial basis for launching the preparation of large-scale CCS demonstration sites to be operational in 2015.

The Commission's idea to have national EU-ETS auctions combined with an obligatory 20%of the total revenue dedicated to measures to support reductions in CO2 emissions is completely inadequate and a missed financing opportunity. Member States should be strongly urged to revolutionise their position on EU-ETS revenue, and dedicate all QUIETS revenue to low-carbon technologies with a specific envelope for CCS. In this way the billions of euros that the Commission currently lacks but are needed to support the early demonstration of large-scale CCS may become available.

The EESC agrees with the need for joint European CO2 transport and storage infrastructure. A European-wide transport system is required to connect Member States that may not be able to create national storage facilities themselves.

–Contact:Mr Sven Dammann

(Tel.: 00 32 2 546 93 66 – email: )

  • Energy efficiency – Assessment of national action plans

–Rapporteur: MrIozia (Employees – IT)

–Reference: COM(2008)11 final – CESE 1513/2008

–Key points:

In several recent opinions on energy efficiency in general and energy efficiency in buildings in particular, the European Economic and Social Committee has expressed strong, almost unanimous support for a serious policy on energy efficiency.

The EESC deplores the failure of the Member States to produce their national energy efficiency action plans (NEEAPs) on time. The EESC also regrets that, with a few exceptions, the documents analysed do not demonstrate a strong and serious commitment by the Member States to achieving these objectives. This is particularly true in the main areas of energy consumption: private transport and housing.

The EESC notes that the savings resulting from the energy efficiency plans under the Commission's programmes are supposed to make the main contribution to reducing greenhouse gases. The target of reducing energy consumption by 20% in 2020 includes a reduction in CO2 emissions of 780 Mteq. Given that UE emissions amounted to 5.294 Mteq for the EU-25 in 2006 (European Environment Agency Report 2006), it is clear that energy efficiency can make an invaluable contribution.

The EESC has repeatedly called for the involvement of civil society in Europe and the Member States, on the grounds that the full knowledge and support of the European public are essential if the targets for energy efficiency are to be met. The measures adopted must always take into account the difficulties many millions of ordinary people have in coping with the problems of daily life. Energy saving programmes will inevitably entail costs and should provide for carefully chosen measures and appropriate support for the less well-off, who have to meet the costs of rising energy prices but are unable to reduce their bills, for example because they cannot afford energy-saving measures in the home.

The EESC insists that the initiatives in the field of energy efficiency must be specific and feasible and wonders whether at least some of the measures should be made compulsory, with checks to determine how far the practical results fall short of the plans, as was the case with vehicle emissions, the CO2reduction in general, greenhouse gas emissions and renewable energies.

The EESC believes that market instruments, similar to those already in operation, could make a valuable contribution. Creating a market in "negawatts", or electrical energy efficiency, for final consumers as well could provide a useful incentive for ordinary citizens to adopt good energy saving practices. Given that replacing incandescent light bulbs alone could produce savings equivalent to at least 80 power stations of 1.000 MW (almost equal to Italy's gross installed capacity), it is clearly in the interests of producers to support energy efficiency, which will enable them to satisfy more customers while generating the same amount of electricity.

–Contact:Ms Maria José Lopez Grancha

(Tel.: 00 32 2 546 87 13 – email: )

  • Energy markets and value chains

–Rapporteur: MrZboril (Employers – CZ)

–Co-rapporteur: MrKerkhoff (Cat. 1 – DE)

–Reference: Own-initiative opinion– CESE 1521/2008

–Key points:

Because of the high share of energy which is inevitably required to produce basic materials by conversion from raw materials, the basic material industries are strongly affected by any change of energy costs or by energy taxes or similar financial measures. However, the energy-related footprint of basic materials has to be attributed to the whole industrial value chain and cannot be sensibly addressed separately.

The Committee's opinion is that economic growth and innovation in European economy can only be achieved on a viable industrial basis. Sustainable energy and climate policy must be structured in such a way that it achieves its aims while at the same time retaining the industrial value chains as the backbone of the European economy, even when the costs of the damage associated with climate change are taken into account.

The energy-intensive industries must indeed contribute towards energy and climate policy aims. The requirements, however, must be such that competitive disadvantages in a global business environment can be largely ruled out. By their nature, the basic material industries are highly sensitive to the impact of energy costs. Therefore energy and environment policy instruments must be carefully examined and designed in terms of the extent to which they impact on the competitiveness of these industries.

Concluding an ambitious international climate change agreement is of utmost importance for the fight against climate change. It has to lead to emission reduction obligations for all major emitting countries, including the energy-intensive industries in order to ensure fair competition and a level playing field. In the absence of such an agreement, free allocation of allowances to energy-intensive industries at risk of 'carbon leakage' should be considered in the framework of the EU ETS in order to counter risks to the competitiveness of industrial location and economic growth in Europe.

 Contact :Ms Amélia Muñoz

(Tel.: 00 32 2 546 83 73 – email: )

2.REGIONAL POLICY

  • Governance and partnership in cohesion policy

–Rapporteur: van Iersel (Employers – NL)

–Co-Rapporteur: Pasztor (Employees – HU)

–Reference: EP Referral – CESE 1528/2008

 Key points:

The EESC was delighted that it could contributethrough anexploratory opinion requested by the European Parliament, to the debatewhich Parliamentis holding on improving governance and the partnership in the EU's cohesion policy.

In the EESC’s view good governance implies ‘multi-level government’ and partnerships with representative organised civil society at regional level. Consequently, the EESC agrees with the Council and the Commission as to the desirability of effective "multi-level government" and better governance in applying EU-Funds and implementing EU-policies. The question is not ‘if’, but ‘how’. It is a matter of fine-tuning bottom-up initiatives and top-down framework conditions.

The EESC endorses the Parliament’s proposal to set up a formal Council of Territorial Development. It would underline ‘multi-level government’ and it would make discussions and agreements more obligatory. "Multi-level government" is a flexible structure of relations between Commission, governments, and regional and local authorities, tailor-made according to specific situations and thematic considerations rather than a hierarchical framework of competences between governmental layers. Good governance is characterised by open-minded relations and a less strict application of the "subsidiarity" principle.

Practical evidence shows that decentralised responsibility and accountability foster leadership and vision. These usually form a firm base for public-public partnerships as well as for public-partnerships with a number of stakeholders such as social partners, chambers of commerce, companies, development agencies, housing organisations, quangos, environmental agencies, social organisations, schooling facilities at all levels, architects, and artists. Consequently, representative organised civil society at regional level should be given the opportunity for responsible and transparent involvement in defining and executing EU regional programmes. Taking local and regional (non-governmental) views on board will contribute to the acceptance of the values of the Union by the citizens.

The EESC is of the opinion that well-structured consultations can lead to successful partnerships with non-governmental stakeholders in the whole chain of defining, monitoring and evaluating regional policy. Flexible "multi-level government" and good governance, and corresponding synergies focussed on tailor-made solutions can be most helpful to respond to the ultimate objective of EU and national regional policy, which is to activate existing forces and hidden potentials of regions and cities.

 Contact:Mr Marco Thyssen

(Tel. : 00 32 2 546 84 11 – email: )

3.ENVIRONNEMENT

  • Climate Change International Negotiations

– Rapporteur : Mr Osborn (Various Interests – UK)

– Reference: Own Initiative Opinion– CESE 1518/2008

- Key points :

Climate change is one of the major challenges facing the world in the 21st century. To avoid catastrophic change total global emissions of greenhouse gases need to be substantially reduced, and those of the developed countries will need to be reduced by 60-80% of 1990levels by mid century.

The Committee strongly supports the initiative that the EU has taken in the negotiations and particularly its unilateral commitment to 20% target reductions for 2020 to get the negotiations moving. The Committee believes however that the climate change challenge is so serious that every effort should be made to go further. The EU should be aiming at the 30 % reduction conditionally offered for 2020 and in the negotiations it should be seeking to secure comparable commitments from other developed countries, with significant commitments also from the emerging economies whose emissions are rising rapidly.

Responding adequately to climate change will require major changes in the world economy and in flows of investment. The Committee suggests that the scale of effort and leadership required is comparable to that involved in the creation of the Marshall plan for reconstruction in Europe after World War II. On this occasion the EU should be a major initiator of the plan needed. Specifically funds will be needed to assist mitigation and adaptation measures in developing countries. Expansion of the Clean Development Mechanism is one source of funds but the criteria and implementation need to be tightened up. Europe could provide some of the extra resources needed from the proceeds of auctioning of carbon trading permits.

Contact : Mr Robert Kaukewitsch

(Tel. : 00 32 2 282 23 66 – e-mail : )

4.EXTERNAL RELATIONS

  • The EU-Africa Strategy

Rapporteur: Mr Dantin(Employees–FR)

Reference: exploratory opinion – CESE 1530/2008

Key points:

  • The explorative opinion of the EESC entitled 'The EU-Africa Strategy' responds to a request from EU Commissioner Mr Michel, for the Committee to examine how to encourage job creation on the African continent;
  • The EESC believes that developing decent employment in Africa is central to reducing inequality and poverty, and for fostering social integration;
  • To this end, growth in Africa must be re-directed to the primary processing and refinement of products. Investment should be geared to this end, with emphasis on sectors with high added value;
  • The private sector and notably SMEs, should play a key role in developing the African economy. The EU should make SME development a pillar of its cooperation policy;
  • A short, medium and long-term agricultural policy must be set up and priority given to ensuring that there is a budget for its implementation. This policy should be drawn up and implemented in coordination with agricultural organisations;
  • It is necessary to analyse employment needs and the labour market in Africa, and to anticipate the major challenges involved in adapting vocational training to employment;
  • As regards regional and sub-regional economic integration measures should be coordinated in order to harmonise customs procedures, improve infrastructure and to guarantee the free movement of citizens.The Committee regrets that regional negotiations on Economic Partnership Agreements (EPAs) have not yet been concluded in Africa;
  • Social dialogue should accompany and enhance all development polices, especially through collective bargaining. Consequently, it is necessary to establish or to foster strong and independent employer and employee organisations;
  • The involvement of non-state actors is indispensable for creating decent jobs and should therefore be central to the EU-Africa strategy. They should be consistently involved in drawing up national and regional indicative programmes;
  • Finally, good governance is key to investor confidence and consequently, essential for job creation. It should include respect for human rights and workers' rights, trade union freedoms, labour standards and action to combat corruption. On this last point, the EU and its Member States should make financial aid contingentupon the traceability of aid flows to the end-user.

 Contact:Ms Susanna Baizou

(Tel.: 00 32 2 546 98 45 – email: )

  • The social dimension of relations with southern Mediterranean partner countries

–Rapporteur: Mr Voles (Employers – CZ)

–References:Information report – CESE 735/2008 fin – CESE 1531/2008

–Key points

The information report that will be presented at the next Euromed Summit of Economic and Social Councils and Similar Institutions in Morocco on 14-16 October 2008 has been elaborated in collaboration with the Economic and social council of Greece, Italy, Tunisia, Algeria, Israel and civil society representatives from Egypt and Jordan.

The information report underlines that all activities, programmes and projects within the Euro-Mediterranean Partnership and the European Neighbourhood Policy should take account of the social dimension, a vital element for the sustainable development of the Mediterranean partner countries (MPC).

Most of the EU and MPC action plans include chapters on social issues. The active involvement of civil society, especially the social partners and economic and social councils, in their implementation, would help to achieve social cohesion in the MPCs which itself is a prerequisite for the success of economic reforms.

The EESC proposes the creation of a network to monitor the social dimension of EU relations with the MPCs, where the relevant institutions, economic and social councils and civil society organisations of the EMP countries and their associations would be represented.

Finally the EESC proposes that the new cooperation structure "Barcelona process: Union for the Mediterranean" enlist the network of social councils and similar institutions in the EU and the MPCs in the preparation, implementation and monitoring of programmes and projects, especially those with a social dimension.

Contact:MsLaila Wold

(Tel.: 00 32 2 546 91 58 – email: )

  • EU-Ukraine: a new dynamic role for Civil Society

Rapporteur: Ms Hellam (Various Interests – EE)

Reference: Own-initiative Opinion – EESC 1532/2008

Key points:

Recommendations and conclusions:

  • With this opinion, the EESC wishes to encourage better implementation of the joint ownership and partnership principle between Ukrainian civil society, the Ukrainian government and the EU institutions.

The EU-Ukraine Association agreement