91997E2301

WRITTEN QUESTION E-2301/97 by Patricia McKenna (V) to the Commission (3 July 1997)

Subject: EU subsidies for nuclear energy and fossil fuels

A recent Greenpeace report showed that the EU and Western European governments have spent over US$60 billion since 1992 in support subsidies for the fossil fuel and nuclear industries. In the same year EU countries signed the Rio Declaration, pledging themselves to work to protect the world's climate.

By contrast, the EU has spent US$1.5 billion on subsidies for renewable energy sources, such as wind power and solar energy.

According to the World Energy Council around US$15 billion could make the entire solar renewable energy industry cost-competitive with the nuclear and fossil fuel industries.

Can the Commission outline what measures it will take to ensure that EU subsidies encourage the development of renewable energies and are used to phase out more polluting industries, so that the EU's international obligations, such as those made at Rio, can be honoured?

Answer given by Mr Papoutsis on behalf of the Commission (16 September 1997)

The Commission would draw the Honourable Member's attention to the fact that the aid shown in the Greenpeace report is of very different types. The aid given to the coal industry is national production aid. The aid given to the nuclear industry is aid for research, principally on safeguards. The aid given in the field of renewable energy sources is for research and the development and marketing of these forms of energy. It is therefore difficult to compare the different types of aid.

The measures envisaged by the Commission to stimulate the market penetration of renewable sources of energy are described in the Green Paper entitled 'Energy for the future: renewable sources of energy' ((COM (96) 576. )). Following the public discussion of the Green Paper, the Commission is now drafting a White Paper on the same subject which will cover possible political and financial measures to promote the use of renewable energy sources, whose contribution to energy supply could increase from its present level of 6% to 12% by the year 2010.

In April 1997, the Commission furthermore put forward a proposal to continue and develop the activities being funded under the Altener programme ((COM (97) 87 final. )), which is specifically aimed at promoting the market penetration of renewable energy sources. The Community also grants aid for research and technological development in the field of renewable energy sources.

The promotion of renewable energy sources and other measures to achieve a substantial reduction in CO2 are also very important as part of the Community's international obligations, such as those made in Rio.