International Activities - Europe Informal Meeting of EU Environment Ministers on Renewable Sources of Energy

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Informal Meeting of EU Environment Ministers on Renewable Sources of Energy
Graz 17^th - 19^th July 1998
Presidency Conclusions

The Environment Ministers of the European Union, the Environment Ministers of the Candidate Countries and the Commissioner for the Environment, Mrs. Ritt Bjerregaard, held an extensive discussion on the future prospects of renewable energies.

The President of the Environment Council, Mr. Martin Bartenstein, drew up the following conclusions arising from the discussion among EU Member States:

1. Ministers welcomed the Commission's White Paper on renewable energies and confirmed that renewable energies present an important opportunity for meeting the EU's international environmental commitments while supporting the economic development within the Union. Renewable energy sources are indigenous and contribute to all three key objectives of the European energy policy, - competitiveness, security of supply, and protection of the environment. They can actively contribute to employment, and they can be a key feature in regional development.
2. A policy for the promotion of renewable energies requires an integrated, crosssectoral approach covering not only environmental instruments but also initiatives from other policy areas like energy, taxation, competition, employment, agriculture, regional development, research and technological development.
3. Emphasis should be put on comprehensive, sufficiently funded policy approaches to raise public awareness and promote education and training of professionals. The exchange of relevant experience should be promoted. Examples of best practices should be compiled, and serve as the basis for policy action.
4. Improved energy efficiency will play an essential role in meeting the Kyoto target in a cost-effective way. Therefore energy efficiency has to be promoted also through common and co-ordinated policies and measures at Community and Member State level. Special attention should be paid to demand side management measures.
5. In view of the Kyoto follow-up process supporting the target of the White Paper i.e. doubling the use of renewable energy in the European Union till 2010 is essential. In order to reach this aim efficiently Member States should adopt national strategies for renewable energies, including national targets, action plans and appropriate funding. The strategies to reach the national targets should be flexible because of regional differences in Member States. It was emphasized that a reporting system regarding the state of implementation of measures to promote energy efficiency and renewable energies in Member States should be set up.
6. Environment Ministers welcomed a campaign for take-off as proposed by the Commission White Paper. However in countries with adequate forest resources greater attention could also be given to the promotion of wood use for domestic heating, as European industry has a leading position in relevant technologies. Thus a target of introducing f.i. 1.000.000 modern wood stoves and boilers for domestic heating could be included in the campaign. The importance of thermal solar collectors and low energy-houses was emphasized.
7. At present, prices for conventional energy sources do not reflect their full environmental cost, putting renewable energies at a competitive disadvantage. The need for internalisation of external costs was emphasized, particular reference was made to the Commission's energy taxation proposal, which includes exemptions for renewable energies.
8. It will also be necessary to create an appropriate political and institutional framework to attract private capital. In addition, the existing financial instruments of the EU and Member States should be adapted, e.g. in the agricultural sector, structural funds, assistance programmes for Candidate Countries. It was agreed that modifications in favour of renewable energies should be made during the forthcoming review of the community guidelines for State Aid for environmental protection.
9. Additional funding is essential for the ALTENER ll and SAVE ll programmes to provide sufficient promotion and targeted actions for renewable energies and energy efficiency, respectively in order to facilitate the concrete investments necessary for take-off.
10. Liberalisation of electricity markets provides new opportunities for renewable energies, but also the challenge of an increasingly price competitive environment. Therefore a harmonised frame of incentives enabling easier access for renewables to the electricity networks and fair prices for the renewable electricity was considered necessary, and Ministers looked forward to the Commission s proposal in this area before the end of the year.
11. The possibilities for the creation of a market for green electricity should be explored, taking account of experiences already existing in some Member States.
12. In formulating renewable energy policies due attention should be given to minimizing environmental impact. Public participation plays a central role in ensuring acceptance of renewable energy deployment.
13. There is substantial scope for developing biogas production from organic wastes, taking into consideration its many environmental benefits, particularly in view of the necessity to reduce methane emissions.
14. In implementing Agenda 2000, special attention should be given to instruments which endorse the targets of the White Paper. However, decisions on subsidies for energy crops should be based on a careful evaluation of energy balances and environmental impacts.

Arising from the joint session of EU Member States and Candidate Countries, which was welcomed by all Ministers, the President of the Environment Council, Mr. Bartenstein, drew up the following conclusions:

1. All Candidate Countries recognized the significant potential of renewable energies, some have already taken steps to improve the legal and regulatory frame for promoting renewable energies and improving efficiency of supply and use of energy. They expressed their intention to take due account of the recently presented Commission communications concerning renewable energy, energy efficiency and combined heat and power, already in the pre-accession phase.
2. Significant barriers hampering the effective use of renewable energy sources have been identified, inter alia: economic, financial, informational, political and institutional barriers. Ministers stressed the need to work towards the removal of these barriers.
3. Taking account of the relevant issues of the Aarhus Declaration participants stressed the need to promote pricing reforms to ensure less distorted prices and incentives which encourage better energy use and increasingly reflect the environmental costs of energy production and use, especially by modifying and phasing out those energy subsidies which have an adverse impact on the environment and by gradually internalizing the externalities in the energy prices.
4. Ministers from the EU and the Candidate Countries expressed their intention to work together towards greater sustainability in energy policy, e.g. by intensifying contacts and co-operation and by increasing the exchange of technological knowhow. Reference was made to successful experiences so far. Special importance was accorded to cooperation in preparation for international negotiations, particularly for the forthcoming Conference of the Parties to the Climate Change Convention.
5. Financial assistance of the European Union and International Financial Institutions in the energy sector should be focused, coordinated and targeted to achieve the greatest possible economic and environmental benefits. The Candidate Countries' participation in programmes like SAVE 11; Altener 11, Joule, Thermie will be encouraged.
6. The need to enhance nuclear safety in the Candidate Countries, within the context of comprehensive long-term energy strategies, was expressed with a view of attaining a level of nuclear safety corresponding to high standards prevailing in the EU. In this respect Ministers also referred to the Aarhus Declaration.

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