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Proposal for a Decision of the European Parliament and of the Council adopting a multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006) (COM(2002) 162 final — 2002/0082(COD))

OJ C 203E , 27.8.2002, p. 47–52 (ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV)

52002PC0162

Proposal for a Decision of the European Parliament and of the Council adopting a multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006) /* COM/2002/0162 final - COD 2002/0082 */

Official Journal 203 E , 27/08/2002 P. 0047 - 0052


Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL adopting a multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006)

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Introduction

In its Green Paper entitled "Towards a European strategy for the security of energy supply", [1] the Commission calls for the following actions in a long-term energy context:

[1] COM(2001) 769 final, 29.11.2000.

- The European Union must take clear action to shift the balance away from supply policy towards a policy focused on demand. There is little margin for increasing Community supply, given the needs in this field, but the room for manoeuvre on demand is more promising.

- On the subject of energy demand, the Green Paper calls for a genuine change in consumer behaviour. There will have to be an active policy on energy-saving and diversification for the transport and construction industries as well as the electrical equipment sector so as to promote non-polluting forms of energy.

- On the subject of energy supply, priority must be given to combating global warming. The development of new and renewable energy sources (including biofuels) is the key to change. Doubling their share in the energy supply quota from 6 to 12% and increasing electricity production based on these energy sources from 14 to 22% is an objective for 2010.

The broad lines of action set out in the Green Paper were confirmed and strengthened by the new EU priorities agreed at the last European Council in Gothenburg, especially as regards the EU strategy for sustainable development.

The Commission communication entitled "A sustainable Europe for a better world: a European Union strategy for sustainable development", [2] approved by the Gothenburg European Council, identifies the main obstacles to sustainable development, in particular greenhouse gas emissions due to human activity and pollution caused by transport. Finding solutions to these obstacles to sustainable development will mean taking a new approach to Community policies to bring them closer to individual citizens and businesses who will ultimately be making the necessary changes to their patterns of consumption and investment. It will involve radically redirecting public and private investment towards new, environmentally sound technologies to sever the link between economic and social development and degradation of the environment and excessive consumption of resources.

[2] COM(2001) 264 final, 15.5.2001.

Under the heading "Limit climate change and increase the use of clean energy", the EU strategy for sustainable development calls for:

- clear action to reduce energy demand, through, for example, tighter minimum standards and labelling requirements for buildings and appliances to improve energy efficiency;

- more support to the research, development and dissemination of technology on clean and renewable energy resources.

Furthermore, the European Union must set an example internationally by radically redirecting its policies and public and private investment towards sustainable, environmentally-friendly development in terms of commitments with regard to climate change and by means of international cooperation to improve the prospects for sustainable development at global level.

In the statement presented at the Genoa Summit on 22 July 2001, the G8 recognises the importance of renewable energy sources for sustainable development, the diversification of energy supply and the conservation of the environment, as well as its contribution to reducing poverty. The G8 members undertake to guarantee that renewable energy sources will be given an adequate place in their national plans and invite the other countries to do the same. They also commit themselves to helping the developing countries to strengthen their institutional capabilities and define market strategies to increase investment and the spread of best practices in the field of renewable energy sources.

Lastly, the Commission's new administrative guidelines, in particular on externalisation and the implementing arrangements for it, enable new ways and means to be used to facilitate the management of Community programmes.

This proposal for a Decision forms part of the EU's long-term energy strategy and the new approach of aligning Community policies with the goals of sustainable development.

2. Energy policy in the framework of the community strategy for sustainable development

The energy and transport sectors are the main producers of greenhouse gas emissions. The energy objectives outlined in the Green Paper, together with the new guidelines on common transport policy set out in the White Paper entitled "European Transport Policy for 2010: Time to decide", [3] call for an adjustment and strengthening of Community instruments - both legislative measures and aid programmes - to gear them more to improving energy demand management and the development of new and renewable energy resources, in relation in particular to the energy aspects of transport.

[3] COM(2001) 370 final, 12.9.2001.

With regard to legislative measures, the Commission proposes to complement the action already launched in the framework of the Directive for the promotion of electricity produced using renewable energy sources in the internal market [4] with new proposals in the fields of renewable energy sources [5] and energy efficiency. [6] These legislative measures provide for the evaluation, monitoring and follow-up of the progress made. Their application will be facilitated in particular by means of Community support for promotion and dissemination targeted at individual citizens and businesses.

[4] Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market. OJ L 283, 27.10.2001, p. 33.

[5] Proposal for a Directive of the European Parliament and of the Council on the promotion of the use of biofuels for transport. COM(2001) 547 final, 07.11.2001.

[6] Proposal for a Directive of the European Parliament and of the Council on the energy performance of buildings. COM(2001) 226 final, 11.05.2001.

The aim is to accelerate the market penetration of new technologies in these fields by creating a favourable legislative framework and laying down objectives for the EU and for the Member States.

By themselves, the two combined objectives in the fields of renewable energy sources [7] and energy efficiency [8] would make a substantial contribution towards achieving the cuts in greenhouse gas emissions laid down in the Kyoto Protocol. Consequently, the achievement of these objectives is essential if the Union wishes to meet its commitments.

[7] Communication from the Commission entitled "Energy for the future: renewable sources of energy", COM(1997) 599 final, 26.11.1997.

[8] Communication from the Commission on an Action Plan to Improve Energy Efficiency in the European Community, COM(2000) 247 final, 26.4.2000.

Nevertheless, the legislative measures which should enable the objectives laid down in these two fields to be achieved must be preceded and accompanied by strengthened aid programmes to bring about the actual medium and long-term changes sought by the proposed measures. The Community programmes in the abovementioned areas must be strengthened and focused in this direction.

This new approach also involves a strengthening of Community action vis-à-vis the main stakeholders, including national, regional and local agencies and any other organisation contributing at its level to the Community effort in line with the changes proposed in the White Paper on European Governance, [9] which aims at achieving, among other things, greater participation and openness between the main players concerned by establishing a more systematic dialogue and interaction between the Community and the Member States, the regional and local government bodies and civil society.

[9] COM(2001) 428 final, 25.7.2001.

This need to reinforce Community action is all the more urgent given the prospect of enlargement, since the energy intensity of the candidate countries is higher than that of the Member States.

Internationally, Europe has committed itself to fight poverty and to achieve the international Millennium Development Goals; energy has an important horizontal role as part of these efforts. As priorities, this cooperation will focus on security of energy supply; reinforcing energy efficiency, including energy saving, clean technologies and the development of renewable energy sources; and the creation of institutional capabilities. The field COOPENER is linked and complementary to this initiative. In this context, Europe must promote and facilitate investment in the development of renewable energy sources in the developing countries since such investment will help reduce problems due to climate change and improve the quality of life of the populations concerned. The Commission stressed the need to adapt Community energy and transport policy to the internal and external objectives of sustainable development in its communication of 13 February 2002 entitled "Towards a global partnership for sustainable development". [10]

[10] COM(2002) 82 final, 13.2.2002.

This new approach will require additional human resources and, in the present situation and given the nature of these tasks, one option is the setting up of a European Agency on the basis of the future Council Regulation laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes. [11] Without such an agency, the execution of the programme will require an increase in the staff of the Commission departments managing the programme from 38 to 52. However, this option would also mean a substantial reduction in activities concerning information, promotion and utilisation of the results of the projects and activities, and the introduction of a minimum threshold for funding projects or activities under the programme.

[11] COM(2001) 808 final, 28.12.2001.

3. The ALTENER and SAVE Programmes (1991-1997) and the first energy framework programme (1998-2002)

Community non-technological support activity in the fields of energy efficiency and renewable energy sources started in 1991 with the adoption of the SAVE programme, followed in 1993 by the adoption of the ALTENER programme. The success of these two programmes was noted by all the Community institutions and the activities have been continued in the multiannual framework programme on actions in the energy sector (1998-2002) and related measures, which was adopted in 1998 and expires on 31 December 2002.

The framework programme, which has an overall budget of EUR175 million, comprised seven decisions: the decision adopting the framework programme and six annexed decisions for the specific programmes:

- ETAP - forward studies and monitoring of the markets (EUR5 million),

- SYNERGY - international energy cooperation (EUR15 million),

- CARNOT - stimulation of technologies for the clean and efficient use of solid fuels (EUR3 million),

- SURE - cooperation in the nuclear sector and in particular on safety, industrial cooperation with the NIS and the transport of radioactive material, including the combating of illicit traffic (EUR9 million),

- ALTENER - promotion of renewable energy sources (EUR77 million),

- SAVE - promotion of energy efficiency (EUR66 million).

The initiative for a framework programme for energy was taken by the European Parliament and the Council to bring together the existing programmes, thereby creating economies of scale and increasing coordination. However, the expectations of a framework programme as regards economies of scale and in terms of procedural and implementing efficiency have not been met, firstly because of the lack of a single legal basis and, secondly, because of the highly varied nature of the programmes and their objectives.

3.1 Annual evaluation of the energy framework programme (2000)

In accordance with Article 5(1) of the Council Decision adopting the multiannual framework programme for actions in the energy sector (1998-2002), the Commission carries out an annual examination of the progress made on the framework programme and its specific programmes. The evaluation, carried out by independent experts in 2000, mainly looked at the efficiency and transparency of each programme, the Commission's internal coordination and the coherence between the projects selected and the objectives of the programmes in 1998 and 1999. In their report, the evaluators recognised the importance of the ALTENER, SAVE, SYNERGY and ETAP programmes in the context of the Community strategy to reduce CO2 emissions. The analyses made during the evaluation nonetheless reveal four main areas which need to be reconsidered to some extent:

- firstly, the existence of "small" programmes with very different target groups and separate actions and procedures; these programmes could well provide the lines of action of one or two programmes, which would increase efficiency through the pooling of human resources and the harmonisation of selection, evaluation and management procedures;

- the lack of consistency between the objectives of some programmes and the resources allocated, in particular to the ALTENER and SAVE programmes; either the objectives need to be restricted, if the resources remain the same, or the financial resources and management needed to attain them must be provided;

- the methods and procedures for selection, evaluation and management must be modernised;

- the promotion of the framework programme and specific programmes and the way in which the results are disseminated are highly unsatisfactory and, in any event, unsystematic or inadequate, and are a crucial factor calling for change.

According to the experts' analysis, to increase the effectiveness of a future programme beyond 2002, there should only be one single programme covering two technologies: alternative energy sources and energy savings. These activities would be supported horizontally by means of activities to spread the technologies throughout the EU and third countries and by obtaining the services and studies needed for management of the programme. The SURE programme should be attached to activities in the field of nuclear energy.

3.2 Mid-term evaluation of the energy framework programme (2001)

In accordance with the same Article 5(2) of the Council Decision adopting the multiannual framework programme for actions in the energy sector (1998-2002), at the end of the third year of this programme the Commission has asked independent experts to carry out an overall external evaluation of the progress made on the Community actions carried out under the framework programme and specific programmes.

This process has been launched and the final report setting out the method of analysis of the framework programme and specific programmes and their impact will be presented to the Commission by the experts in the second quarter of 2002. The conclusions of these evaluations will be transmitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions and taken into account during the preparation of the work programme.

4. A new energy programme: Intelligent Energy for Europe

The strategy for medium and long-term security of energy supply and the integration of the Community strategy for sustainable development and environmental protection in the field of energy and the energy aspects of transport require the support programmes to be redirected in order to combine Community action to form a coherent, effective whole, both procedurally and in terms of objectives.

What is needed is intelligent action, hence the name of the programme ("Intelligent Energy for Europe"), in order to conserve natural resources and sustainably maintain the level of development of our society by making responsible use of energy based on technological innovation and the ability of the energy sector and industry to adopt best practices on energy as quickly as possible.

The Commission believes it is important, in the present context, to broaden and to strengthen some of the activities and to include them in a single framework. The proposed programme will contribute to the security of energy supply, competitiveness and the EU's strategy for sustainable development. It will represent additional added value as compared with each Member State acting on its own.

This proposal for a Decision of the European Parliament and of the Council concerns a multiannual programme for action in the field of energy - the "Intelligent Energy for Europe" programme - for the period from 2003 to 2006. The programme is designed as the main Community instrument for non-technological support in the field of energy. It provides continuity for the actions under the ALTENER, SAVE and, to a certain extent, SYNERGY programmes and combines all activities in the energy sectors contributing to the accomplishment of the main aims of Community energy and transport strategies in terms of energy aspects and also the sustainable development strategy.

The new programme strengthens the "renewable energy sources" and "energy efficiency" strands and introduces a third and a fourth strand on energy in transport and the promotion at international level, particularly in the developing countries, of renewable energy sources and energy efficiency. It will also strengthen measures to disseminate and promote best practice so as to prepare stakeholders in this field, businesses and individual citizens for the changes which have already begun but which will develop their full force in future and will bring about a genuine change in behaviour with regard to energy through awareness campaigns, education and the promotion of investment in new technologies.

The programme is structured in four specific areas: rational use of energy and demand management (SAVE), new and renewable energy sources (ALTENER), energy aspects of transport (STEER), and promotion at international level in the fields of renewable energy sources and energy efficiency (COOPENER). Six types of action are planned for each area, viz. a) implementation of strategies, development of standards, studies, etc.; b) creation of structures and financial and market instruments, including local and regional planning; c) promotion of systems and equipment to ease the transition from demonstration to marketing; d) development of information and education structures and utilisation of the results; e) monitoring, and f) assessment of the impact of the actions. (See annexed table).

Furthermore, the programme will be implemented by means of targeted initiatives, known as "key actions", relating to one or more specific fields of action.

4.1. Aims of the "Intelligent Energy for Europe" Programme

The activities eligible for Community financial support must in overall terms be aimed at stimulating the Community market and, among other things, must:

- utilise the potential for improving energy efficiency as far as economically possible and reduce energy consumption by 1% a year in order to make two-thirds of the potentially achievable savings (18% by 2010) and thereby achieve a reduction in CO2 emissions estimated at about 40% of the EU's Kyoto commitment;

- launch actions aimed at creating or broadening the structures and instruments for the development of renewable energy sources, to support legislative measures which exist or will be adopted in the future, so as to increase the share of renewable energy sources in gross internal energy consumption from 6% to 12% by 2010 (electricity, heating, biofuels);

- increase the share of electricity produced from renewable energy sources to 22.1% by 2010;

- step up significantly the amount of electricity produced from combined heat and power between now and 2010 and avoid, by that date, additional emissions which are estimated at 65 million tonnes of CO2;

- develop the potential of renewable energy sources (RES), harmonise and improve the quality of the renewable technologies available on the market, and create the best possible conditions to speed up investment by increasing installed capacity for the production of energy from RES, which would enable estimated CO2 emissions of about 330 million tonnes to be avoided.

- and, through COOPENER, promote the mechanisms of the Kyoto Protocol in order to develop sustainable energy systems, help to reduce poverty, and achieve the Millennium Development Goals in the developing countries by improving access to energy services by the energy-poor.

In this context, the programme will, firstly, make it possible to develop and implement a medium and long-term energy strategy, in concordance with the aims of the EU's strategy on sustainable development, and the legislative measures necessary to achieve, follow up and monitor the strategic objectives. Secondly, the programme must: bring about a genuine change at Community level by raising awareness among the main players concerned (national, regional and local public authorities, decision-makers, producers, the industry, teachers, consumers, etc.) so that they move towards efficient and intelligent energy production and consumption schemes based on solid, sustainable foundations; to promote exchanges of experience and know-how; support activities intended to boost investment in emerging technologies already present in the market; encourage the spread of best practices, not least in the educational system.

Given their specific features, activities relating to the European Research Area and the 6th framework programme for research, technological development and demonstration will be excluded from the programme's fields of action.

This programme also sets out to increase transparency, coherence and the coordination of all the activities, to promote activities which combine the various fields, and to create an effective link between action under the programme and activities carried out under other Community polices, especially the strategy for sustainable development and the European Climate Change Programme, development cooperation, policy to strengthen economic and social cohesion, especially in the context of an enlarged Union, and the structural measures of the ERDF in the energy field, as well as Member States' initiatives.

4.2. The programme's fields of action

The programme covers four specific fields of action:

a) rational use of energy and demand management (SAVE);

b) new and renewable energy sources (ALTENER);

c) energy aspects of transport (STEER);

d) promotion at international level, particularly with the developing countries, of cooperation in the fields of renewable energy sources and energy efficiency (COOPENER).

The activities carried out in the past in the fields of renewable energy sources and energy efficiency have been very well received and their results, given the limited budgetary resources, have enabled major progress to be made in terms of legislation and promotion. The move towards efficient and intelligent energy systems involves stepping up actions in these two fields, added to which there must be a determined effort on the energy aspects of transport and the promotion of renewable energy sources and energy efficiency in the developing countries.

International cooperation is more than a necessity: it is essential in view of the European Union's international commitments within international bodies. The international promotion action (COOPENER) under this programme is part of the EU's global strategy for sustainable development, specifically the EU's contribution to worldwide sustainable development. COOPENER is intended to ensure the continuity of the SYNERGY programme in the fields of energy efficiency and renewable energy. It seeks to ensure the upstream incorporation, in the context of Community action in the field of development, of energy sector measures contributing to sustainable development, in close collaboration with the relevant Commission departments responsible for international cooperation and development aid. COOPENER action complements EU intervention under the cooperation programmes. The activities to be funded will focus on analyses of the potential for replication in developing countries of measures and techniques developed within the EU, and on promoting EU know-how and technology transfers to those countries. The budget allocated for this specific area should represent 8.8% of the overall amount available for the programme

In order to help link and coordinate COOPENER with EU cooperation initiatives, a working party composed of representatives of the relevant Commission departments will be proposed when the work programme is prepared.

In addition, it should be noted that the ALTENER decision (OJ L 79 of 25.10.2000, p. 1) includes a joint declaration on the Mediterranean countries, which could be taken into account by the Commission in the framework of this proposal for a Decision.

4.3. Implementation of the programme

The programme will be implemented mainly by means of "key actions" in the various fields. These will be defined when laying down the work programme and adapted, if necessary, during the course of the programme.

Key actions covering several specific fields may also be considered. For example, specific key actions for the outermost regions as defined in Article 299(2) of the Treaty, or on topics such as: [12]

[12] These themes are given as examples. The themes to be implemented each year will be defined in the work programme in consultation with the programme committee.

- "Sustainable energy for the islands" - integrated projects (RES, RUE, transport) for smaller islands, including the outermost regions and the Mediterranean islands which are not members of the European Union.

- "Economic buildings" - integrated projects concerning public and residential buildings with low energy consumption (RES + RUE) in medium-sized towns.

- "Energy and urban safety" - integrated projects concerning urban lighting, furniture and equipment for transport (RES + RUE).

- "Water and energy" - integrated projects concerning water and energy supply in coastal and tourist areas (desalinisation, hotels and tourist facilities) (RES, COOP).

- "Communities towards 100% renewable energy sources" - integrated projects in the EU and developing countries.

- "Green transport"- integrated projects to find solutions in the field of urban transport.

- "Learning about sustainable energy" - integrated projects in education.

- "Analysis and evaluation of the impact of energy production and use on the environment, in particular in terms of climate change".

- "Promotion of coordinated analyses of energy policies and markets at Community level and of measures to implement the Community legislation in these areas".

- "Developing a shared Community approach to studies, analyses and forecasting in the energy sector".

The implementation of the programme through the key actions will make it possible to focus the resources and the main market players on projects which will have a major impact at local, regional, national, Community and international level, thereby ensuring greater visibility of action by the Community and the Member States. The key actions could be of shorter duration than the programme and could be launched simultaneously or one after another, depending on the priorities laid down by the Commission and the programme management committee. The work programme will establish the list of key actions to be launched during the course of the programme and the timetable for calls for proposals and/or tenders. Annual updates of the work programme are also planned.

To ensure greater flexibility for the programme to respond to the challenges and urgent needs in the energy sector, the guidelines, the specific objectives and the priority key actions for each of these specific fields and the implementing arrangements will be laid down by the Commission during the six months following the adoption of this Decision, in consultation with the programme Committee, in the form of a detailed work programme. The work programme will serve as a basis for implementing the programme and the actions and initiatives, and will also specify details of:

- the funding arrangements and rules on participation;

- the selection criteria and the arrangements for applying them to each type of action and the method and instruments for monitoring and utilising the results of the actions and/or projects, including the definition of performance indicators;

- the indicative timetable for the implementation of the work programme, in particular as regards the contents of the calls for proposals;

- the procedures for coordinating and linking up with other Community policies (as referred to in Article 1(2)) and the procedure for developing and implementing actions and measures coordinated with those carried out by the Member States in the energy field, in particular on renewable energy sources and energy efficiency, in order to provide added value compared with separate measures taken by each Member State and in order to combine in an optimum manner the various instruments available to the European Union and the Member States;

- the operational arrangements to encourage the participation of remote and outlying regions and of SMEs in the programme.

Under this programme, financial assistance to the actions and measures in the specific fields will be allocated on the basis of the Community added value of the action proposed and will depend on its benefit and expected impact as well as on the origin of the initiative:

- as a general rule, the aid may not exceed 50% of the total cost of the measure, the rest being covered either by public or private funds or a combination of the two;

- the aid may however cover all of the cost of some actions, such as studies and other actions to prepare, supplement, implement and evaluate the impact of the Community strategy and policy measures and of any measures proposed by the Commission to encourage exchanges of experience and know-how to improve coordination between Community, national, international and other initiatives;

- all costs relating to actions and measures undertaken solely on the Commission's initiative will be borne by the Community.

On the matter of eligibility, the programme is open to the participation of the Central and Eastern European candidate countries, in accordance with the conditions laid down in the European agreements, in the additional protocols relating thereto and in the decisions of the respective association councils. It shall also be open to the participation of Cyprus, Malta and Turkey on the basis of the bilateral agreements concluded with these countries. Likewise, the programme is open to the participation of the EFTA/EEA countries on the basis of additional funds and in accordance with procedures to be agreed with these countries. For the implementation of the specific field COOPENER, it is essential that non-EU countries also take part in the international cooperation activities.

With regard to the evaluation of the programme, the Commission is required each year to examine the progress made on implementing the programme and actions undertaken in the specific fields. During the third year of implementation of the programme and in any case before putting forward proposals for the continuation of the programme, the Commission will have independent experts carry out an external evaluation of the overall implementation of the Community actions performed under this programme.

4.4. Programme execution

In view of the priority which should be given to demand management measures, the scale of the operations envisaged in the new Intelligent Energy for Europe programme should, in order to be effective, be broader than in previous energy programmes because of the large variety of players concerned.

Furthermore, the implementation of strategies for energy efficiency and renewable energy sources and the measures already adopted or being prepared call for continuous dialogue and enhanced cooperation with the bodies working in these fields at European, national, regional and local level, as described in the White Paper on European Governance, and also necessitates the creation of adequate cooperation and financing instruments and resources within the framework of this programme. This will inevitably lead to an increase in the workload associated with the implementation and management of the programme, inter alia because a larger number of small projects will be funded.

In the present situation and given the nature of the actions planned, a first option would be for the Commission to delegate certain programme management tasks to an executive agency, except in the case of tasks involving a degree of assessment which would mean making political choices.

As a result of the Agency carrying out, under Commission control, certain tasks related to the management and monitoring of the programme, some examples of which are summarised below, the Commission would be in a position to focus the efforts of part of its personnel currently assigned to programme management on the more strategic activities, including overall monitoring and programme promotion and information. In addition, coordination with activities carried out by the JRC will make it possible to optimise the monitoring of technological options and the results of the projects and actions carried out under the programme.

In particular, the Agency could be assigned the following tasks:

- drawing up for the Commission recommendations on the execution of the "Intelligent Energy for Europe programme" and collecting, analysing and transmitting to the Commission all the information needed to guide implementation of the Community programme;

- managing some or all of the phases in the lifetime of specific individual projects in the context of implementing the programme, and carrying out the necessary checks to that end, by adopting the relevant decisions using the powers delegated to it by the Commission;

- adopting the instruments of budget execution for the revenue and expenditure and carrying out, on the basis of the powers delegated to it by the Commission, all the necessary programme implementation operations, particularly with regard to the award of contracts and subsidies;

- promoting the utilisation and dissemination of the results of the projects and measures funded under the programme at local, regional and national level in close collaboration with the relevant Commission departments.

Accordingly, the Commission is considering presenting, as soon as possible, a proposal for a Decision setting up an Executive Agency as soon as the Council Regulation laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes [13] has been adopted.

[13] COM(2001) 808 final, 28.12.2001.

As far as the management of this programme is concerned, the Commission anticipates that, on the basis of the new guidelines, its implementation will lead to some 270 contracts a year (rising to 330 contracts a year from 2004, as a result of the accession of new Member States and taking into account a supplementary contribution that is estimated to amount to about EUR50 million). Management of the programme will involve 65 people. The extra human resources needed are estimated at 27 people.

The present energy framework programme, which has a budget of EUR175 million, has led to more than 1 000 contracts, i.e. an average of 200 contracts a year. The average size of contract was about EUR130 000 during the period 1998-1999 and EUR300 000 during the period 200-2001, as a result of the restrictive policy followed to avoid triggering a sharp rise in the number of small projects. At the present time, 544 contracts are in progress, involving 38 people.

Efforts to reduce the work load, as well as the number of contracts, have reached their limit (because of the nature of the activities and the fact that it is politically impossible to reduce the number significantly). The use of an Executive Agency to assist the Commission could help to overcome these drawbacks.

The Executive Agency budget, as determined by the budgetary authority, could be in the region of 5% of the overall financial allocation for the Intelligent Energy for Europe programme, in the management of which the Agency would be involved. In accordance with Article 13 of the amended proposal for a Council Regulation laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes, [14] the Steering Committee would adopt each year, acting on a proposal from the Agency's Director, the draft administrative budget for the following financial year, including the establishment plan.

[14] COM(2001) 808 final, 28.12.2001.

Delegating certain programme management tasks to the Agency would result in the secondment of eight Commission staff members to the Agency for the duration of the programme. The Agency would have a staff of 35: the eight seconded from the Commission (representing some 23% of the total staff of the Agency) and 27 new members of staff to be recruited. The Commission would have a small staff complement of 30.

A second option would be to have the programme managed entirely by the relevant Commission departments. This would involve major changes to the management of the programme and to its intervention mechanisms, including:

- an increase in staff in the Commission departments managing the programme from 38 to 52;

- a substantial reduction in activities relating to information, promotion and utilisation of the results of projects and actions, which would limit the extent of the benefits of the programme;

- imposition of a minimum threshold for the funding of projects or actions, resulting in a significant reduction in the number of contracts, thus excluding the main stakeholders at local and regional levels from the activities under the programme.

5. Financial considerations

The draft multiannual Intelligent Energy for Europe programme focuses on the medium and long-term energy strategy priorities, in conformity with the Community strategy for sustainable development. It strengthens the coordination of Community action and cooperation with the Member States. This will permit more transparent and more stringent management and use of resources, which will increase the efficiency of the initiatives undertaken in the context of this programme.

It is essential that the European Union provide itself with the appropriate resources to implement its ambitious action programme on energy against the backdrop of the Community strategy for sustainable development adopted by the European Council in June 2001. The Commission's initial proposal for the former energy framework programme (1998-2002) provided for a budget of EUR200 million, which was ultimately brought down to EUR175 million.

Several factors justify an upward revision of the budgetary allowance for this programme compared with the energy framework programme.

First, strengthening is needed for actions flowing from the new policy guidelines, the adopted and planned legislation in the areas of renewable energy sources and energy efficiency which rely, inter alia, on enhanced Community action as regards the monitoring of its implementation and impact on the market, and the priority given to the energy aspects of transport. In addition, there is the bolstering of international action, in particular cooperation with the developing countries against the backdrop of the Kyoto mechanisms, and the need to increase the rate of spread of best practices and technologies and utilisation of the programme results.

As a result, a sizeable increase in the budgetary allowance is proposed compared with the previous programme. The Financial Statement sets out in detail the amounts associated with these reinforcement factors.

The total budget, EUR215 million, is calculated by adding together the individual amounts for each specific field for the proposed duration of the programme (2003-2006). This breakdown is indicative for the specific areas "rational use of energy and demand management", "new and renewable energy sources and diversification of energy production" and "energy aspects of transport". Indeed, it should be interpreted with a certain degree of flexibility so as to match changing needs and priorities in the field. The amount for the fourth specific field "promotion of renewable energy sources and energy efficiency at international level" is set at EUR19 million. The annual commitment appropriations for implementing the programme will be determined by the budgetary authority within the limits of the financial perspective. The amount will be fixed each year by the budgetary authority (see Table 7.3 in the Financial Statement). As a result of the enlargement of the Union to include new Member States, an increase in the budget, which would be of around EUR50 million, is to be anticipated from 2004 onwards.

The table below shows (in EURmillion) the breakdown (indicative for the first three specific fields) between the different specific fields. The estimated amounts are given in the attached financial statement. The funding and budget allocation arrangements for each priority action within each field and type of measure will be laid down by the Commission, in consultation with the programme Committee, in the framework of the work programme.

(in EUR million)

>TABLE POSITION>

The individual amounts for each specific sector include the support for the actions and projects which will be selected, the costs of publishing information documents and promoting the programme, and expenses related to the evaluations of the proposals and the impact of the programme.

6 Justification for the measure proposed

* What are the objectives of the envisaged action in relation to the obligations of the Community and what is the Community dimension of the problem (for instance, how many Member States are involved and what is the present situation)-

The proposed action will ensure continuity of Community action in the framework of the existing programmes, notably as regards the promotion of renewable energy sources (ALTENER I and II programme - 1993-1997 and 1998-2002) and of energy efficiency (SAVE I and II programme (1991-1995 and 1996-2002) which formed part of the energy framework programme (1998-2002) along with the ETAP, SYNERGY, CARNOT and SURE programmes. The new Community policy priorities and, in particular, the strategy for sustainable development call for the adoption of a new approach to the Community programmes. The new programme reflects these priorities by reinforcing the ALTENER and SAVE actions and redirecting the SYNERGY actions towards the promotion of these two areas on an international scale. Given its influence in the area of greenhouse gas emissions, the programme also includes the energy aspects of transport.

The Community strategies for renewable energy sources and energy efficiency have been the subject of resolutions by the European Parliament and the Council. Quantitative objectives for the Community have been provided for and included, for example in the Community legislation already adopted or in the course of being adopted in these two areas.

* Is the envisaged action solely the responsibility of the Community or is the responsibility shared with the Member States- Subsidiarity and proportionality of the planned action.

The programme concerns matters falling with the sphere of Community competence since it is intended to be the main non-technological Community support instrument in the energy field. It is a case of shared responsibility (Article 175 of the Treaty), and the programme cannot be implemented satisfactorily by the Member States since it involves a promotion campaign and exchanges of experience, know-how and best practices based on close cooperation on a European scale between the various players at national, regional and local level in order to encourage greater use of renewable energy and the rational use of energy, including in the transport sector. These activities can best be carried out at Community level, and their impact can benefit from economies of scale resulting from joint and coordinated action. The only way to guarantee a significant impact for the measures and actions throughout the European Union is to act at Community level.

In accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty, the Community can take measures and, in accordance with the principle of proportionality set out in that Article, this programme Decision does not exceed what is necessary to achieve those objectives.

* What is the most efficient solution taking into account the resources of the Community and the Member States-

Community sustainable energy policy requires urgent, joint and coordinated action between all the Member States and the Community and increased efficiency to achieve the medium and long-term objectives and to live up to international commitments with regard to the environment. The only way to guarantee a significant impact for the measures and actions throughout the European Union is to act at Community level.

While the strengthening of the new successor programme to the energy framework programme will necessitate an increase in workload, the new management instruments and, in particular, the possibility of creating executive agencies to assist the Commission in managing the Community programmes will nevertheless ensure compatibility between the proposal and the Commission's potential resources.

* What is the concrete added value of the action envisaged by the Community, and what would be the cost of inaction-

The added value of the action entails the following elements:

1. as a result of the new legislative measures that have already been adopted or are in the course of being adopted, additional support actions can be launched under the programme to help in the implementation of the legislative measures at Community level, thereby ensuring that these measures and/or actions have a significant impact throughout the European Union;

2. the impact of the activities carried out at Community level, as provided for in the proposed programme, will be further augmented by the economies of scale resulting from the joint and coordinated action;

3. non-technological support at Community level will help to increase large-scale penetration in the higher-performance technologies market with reference to energy efficiency, renewable energy sources and the energy aspects of transport;

4. the implementation of this Community non-technological support instrument will involve a promotion campaign and exchanges of experience, know-how and best practices based on close cooperation on a European scale between the various players at national, regional and local level - something that cannot be adequately achieved by the Member States acting individually;

5. the joint Community expertise acquired through the proposed programme can be put to good use in the developing countries.

While it is difficult to quantify the cost of inaction, the Commission feels that the absence of a programme of non-technological support in the field of intelligent energies as proposed in this Decision would reduce considerably the impact of the legislative measures and could thereby compromise efforts to bring about real change in the energy behaviour of companies and civil society as well as their contribution to the general objectives of Community energy policy in terms of security of supply, environmental protection and international competitiveness of EU businesses.

* What forms of action are available to the Community (recommendations, financial assistance, regulation, mutual recognition)- Is uniform legislation necessary or is a directive establishing general objectives and leaving the implementing arrangements up to the Member States sufficient-

The choice of the type of legal instrument is dictated by the nature of the measure itself. The new programme will be the subject of a single Decision of the European Parliament and of the Council based on Article 175 of the Treaty, given that all the actions arising from the programme can be carried out under this Article, which was certainly not the case with the framework programme, where seven decisions were needed: one for the framework programme itself, and six for the specific programmes.

8. Comments on the articles

The proposal for a Decision is based on Article 175 of the EEC Treaty.

Article 1

Article 1 is concerned with the general objectives of the programme.

Article 2

Article 2 is concerned with the specific objectives of the programme

Article 3

Article 3 is concerned with the structure of the programme and describes the four specific areas of action.

Article 4

Article 4 describes the type of measures, actions or projects to be funded under the programme within each area and indicates the factors on the basis of which financial participation will be determined.

Article 5

Article 5 concerns the guidelines for the implementation of the programme, in particular the work programme and its parts, which will be established by the Commission in consultation with the Member States during the six months following the adoption of this Decision. This work programme will serve as a basis for the implementation and execution of the programme.

Article 6

Article 6 concerns the financial provisions. The budgetary amount is calculated on the basis of an enlarged European Union, given the strong likelihood that some of the candidate countries will join the EU during the implementation of the programme. It is therefore necessary to provide for the additional budgets needed from the beginning of the programme for 2004, 2005 and 2006.

Article 7

Article 7 is concerned with the execution of the programme.

Article 8

Article 8 is concerned with committee procedures. A single Committee will manage all the fields of the programme. Articles 4 and 7 of Decision 1999/468/EC are applicable. The Committee will adopt its rules of procedure.

Article 9

Article 9 concerns the annual reports and the programme evaluation.

Article 10

The Decision is of relevance to the candidate countries, in accordance with the arrangements currently in force, and the EFTA/EEA countries. This Article also specifies that the programme is open to the participation of any legal person established in the European Union.

Articles 11 and 12

Final provisions.

9. Final considerations

A financial statement and an impact assessment form are attached to this proposal for a Decision.

Structure of the multiannual "Intelligent Energy for Europe (2003 - 2006)" programme

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* In collaboration with the other Commission Services, and in particular the JRC in sectors where it has specific competence.

2002/0082 (COD)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL adopting a multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006) (Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission, [15]

[15] OJ C, ..., p. .

Having regard to the opinion of the Economic and Social Committee, [16]

[16] OJ C, ..., p. .

Having regard to the opinion of the Committee of the Regions, [17]

[17] OJ C, ..., p. .

Acting in accordance with the procedure provided for in Article 251 of the Treaty, [18]

[18] OJ C, ..., p. .

Whereas:

(1) Natural resources, the prudent and rational utilisation of which is provided for in Article 174 of the Treaty, include, apart from renewable energy sources, oil, natural gas and solid fuels, which are essential energy sources but are also the main sources of carbon dioxide emissions. Promoting measures at international level to deal with regional or worldwide environmental problems is one of the aims of that Article.

(2) The Commission communication entitled "A sustainable Europe for a better world: A European Union strategy for sustainable development", [19] presented to the Gothenburg European Council of 15 and 16 June 2001, includes greenhouse gas emissions and pollution caused by transport among the main obstacles to sustainable development. Overcoming these obstacles means adopting a new approach to Community policies to bring them closer to individual citizens and businesses in order to change patterns of consumption and investment.

[19] COM(2001) 264 final, 15.05.2001.

(3) The Gothenburg European Council adopted a strategy for sustainable development and added an environmental dimension to the Lisbon process for employment, economic reform and social cohesion.

(4) Measures relating to energy efficiency and renewable energy sources are important elements of the action needed to comply with the provisions of the Kyoto Protocol, as provided for in the European Climate Change Programme (ECCP). [20]

[20] COM(2000) 88 final, 08.03.2000.

(5) The Green Paper entitled "Towards a European strategy for the security of energy supply" [21] notes that the European Union is becoming increasingly dependent on external energy sources and that its dependence could rise to 70% in 20-30 years' time (compared with 50% at present) and therefore stresses the need to balance supply policy against clear action for a demand policy and calls for a genuine change in consumers' behaviour so as to orientate demand towards better managed and more environmentally friendly consumption, particularly in the transport and building sectors, and to give priority to the development of new and renewable sources on the energy supply side in order to respond to the challenge of global warming.

[21] COM(2000) 769 final.

(6) The Communication from the Commission on an action plan to improve energy efficiency in the European Community [22] provides for the improvement of energy efficiency by an additional 1% a year compared with the figure of 0.6% which corresponds to the trend recorded over the last ten years. If this target is met, two-thirds of the energy-saving potential, which is estimated at 18% of total consumption, could be realised by 2010. The action plan proposes legislative measures and supporting actions. The implementation of the action plan also requires the setting-up of efficient systems for monitoring and follow-up.

[22] COM(2000) 247 final.

(7) The Communication from the Commission entitled "Energy for the future: renewable sources of energy" - White Paper for a Community strategy and action plan [23] - sets an indicative target of 12% of energy from renewable sources in gross internal consumption in the EU by 2010. The Council, in its Resolution of 8 June 1998 on renewable energy sources, [24] and the European Parliament, in its Resolution on the White Paper, underlined the need for a substantial, sustained increase in the utilisation of renewable energy sources in the Community and fully endorsed the strategy and action plan proposed by the Commission, including the strengthening of programmes to support renewable sources. The action plan provides for measures to support the promotion and development of renewable energy sources. The Communication from the Commission on the implementation of the Community strategy and action plan for renewable energy sources (1998-2000) [25] notes the progress which has been made, but stresses that further efforts are needed at EU and national level to attain these objectives, in particular new legislation on renewable energy sources and their promotion.

[23] COM(97) 599 final.

[24] OJ C 198, 24.6.1998, p. 1.

[25] COM(2001) 69 final.

(8) Since most Community measures on energy efficiency, in particular the labelling of electrical, electronic, office and communications equipment and the standardisation of lighting, heating and air-conditioning equipment, are not binding on the Member States, there is a need for specific promotion programmes at Community level to create the conditions for moving towards sustainable energy systems.

(9) The same applies to the Community measures to achieve greater market penetration for renewable energy sources, in particular the standardisation of equipment which produces or consumes renewable energy sources.

(10) Council Decision 1999/21/EC, Euratom of 14 December 1998 adopting a multiannual framework programme for actions in the energy sector (1998-2002) and related measures, [26] the Decisions on the specific programmes, namely Council Decision 1999/22/EC of 14 December 1998 adopting a multiannual programme of studies, analyses, forecasts and other related work in the energy sector (1998-2002) - ETAP programme, [27] Council Decision 1999/23/EC of 14 December 1998 adopting a multiannual framework programme to promote international cooperation in the energy sector (1998-2002) - SYNERGY programme, [28] Council Decision 1999/24/EC, Euratom of 14 December 1998 adopting a multiannual programme of technical actions promoting the clean and efficient use of solid fuels (1998-2002) - CARNOT programme, [29] Council Decision 1999/25/Euratom of 14 December 1999 adopting a multiannual programme (1998-2002) of actions in the nuclear sector relating to the safe transport of radioactive materials and to safeguards and industrial cooperation to promote certain aspects of the safety of nuclear installations in the countries currently participating in the TACIS Programme - SURE programme, [30] European Parliament and Council Decision 646/2000/EC of 28 February 2000 adopting a multiannual programme for the promotion of renewable energy sources in the Community (1998-2002) - ALTENER programme, [31] and European Parliament and Council Decision 647/2000/EC of 28 February 2000 adopting a multiannual programme for the promotion of energy efficiency (1998-2002) - SAVE programme [32] expire on 31 December 2002.

[26] OJ L 7, 13.1.1999, p. 16.

[27] OJ L 7, 13.1.1999, p. 20.

[28] OJ L 7, 13.1.1999, p. 23.

[29] OJ L 7, 13.1.1999, p. 28.

[30] OJ L 7, 13.1.1999, p. 31.

[31] OJ L 79, 25.10.2000, p. 1.

[32] OJ L 79, 25.10.2000, p. 6.

(11) In accordance with Article 5(2) of Decision 1999/21/EC, Euratom, the Commission has had independent experts carry out an external evaluation of the above framework programme and the specific programmes. In their report, the evaluators recognise the importance of, in particular, the ALTENER, SAVE, SYNERGY and ETAP programmes in the context of the implementation of the energy strategy and the Community strategy for sustainable development. They note the lack of resources for these programmes given the genuine needs and suggest they should be increased.

(12) Taking into account the Community strategy for sustainable development and the results of the framework programme evaluations, steps should be taken to strengthen Community support in those energy fields that contribute to sustainable development by grouping them in a single programme - "Intelligent Energy for Europe" - comprising four specific areas.

(13) The importance and success of Community support for renewable energy sources in the framework of the ALTENER programme during the period 1993 to 2002 justifies the inclusion in the present programme of a specific field concerning renewable energy sources - "ALTENER".

(14) The need to strengthen Community support for the rational use of energy and the success of the SAVE programme during the period 1991-2002 justifies the inclusion in the present programme of a specific field concerning renewable energy efficiency - "SAVE".

(15) Improving energy use in the transport sector is extremely important in Community efforts to reduce the negative effects of transport on the environment. This justifies the inclusion in the present programme of a specific field concerning the energy aspects of transport - "STEER".

(16) The need to promote the best practices developed in the Community in the fields of renewable energy sources and energy efficiency, and to transfer them to the developing countries in particular, is one of the Community's priorities as regards international commitments, along with strengthening cooperation on the use of the flexible mechanisms of the Kyoto Protocol. In order to ensure continuity with regard to the former SYNERGY programme concerning actions in the abovementioned areas, a specific field concerning the promotion of renewable energy sources and energy efficiency in the framework of international promotion - "COOPENER" - should be included in this programme.

(17) This Decision lays down for the entire duration of the programme an overall budget constituting the prime reference for the budgetary authority, within the meaning of point 33 of the Interinstitutional Agreement between the European Parliament, the Council and the Commission of 6 May 1999 on budgetary discipline and improvement of the budgetary procedure.

(18) Given that the programme's objectives, which concern the implementation of the Community strategy in the fields of energy contributing to sustainable development, cannot be adequately achieved by the Member States acting individually since a promotion campaign and exchanges are required, based on close cooperation on a European scale between the various players at national, regional and local level, and can therefore be better achieved at Community level, the Commission may take measures in accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in the abovementioned Article, this Decision does not exceed what is necessary in order to achieve those objectives.

(19) The provisions of this Decision are without prejudice to Articles 87 and 88 of the EC Treaty, and in particular the Community guidelines on State aid for environmental protection.

(20) The measures needed to implement this Decision should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission. [33]

[33] OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS DECISION:

Article 1

1. A multiannual programme for actions in the field of energy, hereinafter referred to as "Intelligent Energy for Europe", is hereby adopted for the period 2003-2006.

2. This programme will contribute to the implementation of the medium and long-term Community energy strategy and, in particular, to the achievement of the following general objectives:

a) security of supply,

b) competitiveness, and

c) environmental protection.

The programme seeks to promote sustainable development, economic and social cohesion and environmental protection, thereby generating an effective link between these measures and actions carried out under other Community policies.

It also seeks to increase transparency, coherence and the coordination of all the activities and other measures in the energy sector.

Article 2

The specific objectives of this programme are as follows:

a) to provide the elements needed for the development and implementation of a medium and long-term energy policy, notably with regard to demand management, increased use of renewable energy sources, energy diversification, including in transport, and strengthening the potential of the regions, in particular the outlying regions, and preparing the legislative measures needed to attain these strategic objectives;

b) to develop the instruments and means needed to follow up, monitor and evaluate the impact of the measures adopted by the Community and by EU Member States in the fields of energy efficiency and renewable energy sources, including the energy aspects of transport;

c) to bring about a genuine change in energy behaviour in the Community by raising awareness among the main players concerned, businesses and citizens in general, so that they move towards efficient and intelligent energy production and consumption patterns based on solid and sustainable foundations, by promoting exchanges of experience and know-how, by supporting actions intended to boost investment in emerging technologies, and by encouraging the spread of best practices and the best available technologies, including in the educational system, as well as by means of promotion at international level.

Article 3

1. This programme is structured in four specific fields:

a) "SAVE", which concerns the improvement of energy efficiency and demand management, in particular in the building and industry sectors, including the preparation of legislative measures and their application;

b) "ALTENER", which concerns the promotion of new and renewable energy sources for centralised and decentralised production and their integration into the urban environment, including the preparation of legislative measures and their application;

c) "STEER", which concerns support for initiatives relating to the energy aspects of transport, the diversification of fuels and the promotion of renewable fuels and energy efficiency in transport, including the preparation of legislative measures and their application;

d) "COOPENER", which concerns support for initiatives relating to the promotion of renewable energy sources and energy efficiency in the developing countries.

2. Initiatives, referred to as "key actions", combining several specific areas and/or relating to certain Community priorities, for example in the outermost regions as defined in Article 299(2) of the Treaty, may be launched.

Article 4

1. For each of the four specific areas referred to in Article 3(1), Community funding under the programme shall be for measures or projects concerned with:

a) the implementation of medium and long-term strategies in the energy field to promote sustainable development, security of supply in the framework of the internal market, competitiveness and environmental protection, including the development of standards and labelling and certification systems, long-term voluntary commitments to be agreed with industry, as well as forward studies, strategic studies on the basis of shared analyses, and regular monitoring of the development of the markets and energy trends;

b) the creation or enlargement of structures and instruments for sustainable energy development, including local and regional energy planning and management, and the development of adequate financial products and market instruments;

c) the promotion of sustainable energy systems and equipment in order to accelerate their penetration of the market and stimulate investment to facilitate the transition from the demonstration to the marketing of more efficient technologies, including awareness campaigns and the creation of institutional capabilities aimed at implementing the clean development mechanism and joint implementation under the Kyoto Protocol.

d) the development of information, education and training structures; the utilisation of results, the promotion and dissemination of know-how and best practices involving all consumers, and cooperation with the Member States through operational networks at Community and international level;

e) the monitoring of the implementation and the impact of Community policy, and the support measures;

f) the evaluation of the impact of actions and projects funded under the programme.

2. Under this programme, the financial assistance allocated to the actions and measures in the four specific fields referred to in Article 3(1) shall be established on the basis of the Community added value of the action proposed and will depend on its benefit and expected impact as well as on the origin of the initiative.

The aid may not exceed 50% of the total cost of the measure, the rest being covered either by public or private funds, or a combination of the two. The aid may, however, cover all the cost of some actions, such as studies and other actions to prepare, supplement, implement and evaluate the impact of Community strategy and policy measures and any measures proposed by the Commission to encourage exchanges of experience and know-how to improve the coordination between Community, national, international and other initiatives.

All costs relating to actions and measures undertaken solely on the Commission's initiative will be borne by the Community.

Article 5

1. Within six months of the adoption of this Decision, the Commission shall establish a work programme, in consultation with the Committee referred to in Article 8(1). This work programme shall be prepared and updated in accordance with the procedure laid down in Article 8(2).

2. The work programme shall set out in detail:

a) the guidelines, specific objectives and priorities for each of the specific areas referred to in Article 3(1), taking account of the added value that all the measures proposed will provide at Community level as compared with existing measures;

b) the implementation arrangements, distinguishing between actions envisaged on the Commission's initiative and those where the initiative comes from the sector and/or the market concerned, as well as the funding arrangements and the type of and rules for participation;

c) the selection criteria and the arrangements for applying them to each type of action and the method and instruments for monitoring and utilising the results of the actions and/or projects, including the definition of performance indicators;

d) the indicative timetable for the implementation of the work programme, in particular as regards the contents of the calls for proposals;

e) the detailed rules for coordination and linkage with other Community policies, and the procedure for the development and implementation of actions and measures coordinated with those carried out by the Member States in the field of sustainable energy in order to provide added value as compared with measures taken by each Member State acting on its own and in order to achieve an optimum combination of the various instruments at the disposal of both the European Union and the Member States;

f) if necessary, the operational arrangements in order to encourage the participation of remote and outlying regions in the programme, and the participation of SMEs.

Article 6

1. The financial reference amount for implementing this programme is EUR215 million.

Annual appropriations shall be authorised by the budgetary authority within the limit of the financial perspective.

Financial reference amounts shall be laid down on an indicative basis for each specific area. An indicative breakdown of this amount is given in the Annex. The budgetary allocation between areas shall be flexible in order to deal more effectively with changing needs in the sector.

2. The arrangements for the Community financial assistance for the actions undertaken under this programme shall be laid down in accordance with the provisions of the Financial Regulation of 21 December 1977.

Article 7

The Commission shall be responsible for the execution of this programme and for establishing draft guidelines applicable to the actions and measures to be undertaken for each of the specific areas referred to in Article 3(1). These guidelines shall be adopted in accordance with the procedure laid down in Article 8(2).

Article 8

1. The Commission shall be assisted by a Committee made up of the representatives of the Member States and chaired by the Commission representative.

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, in conformity with the provisions of Article 8 thereof.

The period provided for in Article 5(6) of Decision 1999/468/EC shall be three months.

3. The Committee shall adopt its rules of procedure.

Article 9

1. The Commission shall carry out an annual examination of the progress made on this programme and the actions carried out in the four specific areas referred to in Article 3(1).

2. During the third year of the period of application of the programme and in any case before putting forward proposals on any subsequent programme, the Commission shall have independent experts carry out an external evaluation of the overall implementation of the Community actions carried out under this programme. The Commission shall communicate the conclusions of this evaluation to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

Article 10

1. Without prejudice to paragraphs 2 and 3, participation in this programme shall be open to any legal, public or private person established on the territory of the European Union.

2. This programme shall be open to the participation of the Central and Eastern European candidate countries, in accordance with the conditions laid down in the Europe association agreements, in the additional protocols relating thereto and in the decisions of the respective association councils. It shall also be open to the participation of Cyprus, Malta and Turkey on the basis of the bilateral agreements concluded with these countries.

3. Likewise, the programme shall be open to the participation of the EFTA/EEA countries on the basis of additional funds and in accordance with procedures to be agreed with these countries.

Article 11

This Decision shall enter into force on the twentieth day following its publication in the Official Journal of the European Communities.

Article 12

This Decision is addressed to the Member States.

Done at Brussels, ...

For the European Parliament For the Council

The President The President

ANNEX

INDICATIVE BREAKDOWN OF THE ESTIMATED AMOUNT NEEDED [34]

[34] This breakdown is indicative for the specific areas "rational use of energy and demand management", "new and renewable energy sources and diversification of energy production" and "energy aspects of transport". The budgetary allocation between areas is flexible in order to deal more effectively with changing needs in the sector.

Areas of action // EUR million

(2003-2006)

1) Rational use of energy and demand management // 75

2) New and renewable energy sources and diversification of energy production // 86

3) Energy aspects of transport // 35

4) Promotion of renewable energy sources and energy efficiency at international level, particularly in the developing countries // 19

TOTAL // EUR215 million [35],, [36],, [37]

[35] The appropriations earmarked for international promotion are a fixed amount representing 8.8% of the total programme cost.

[36] An additional contribution is to be anticipated from 2004 onwards as a result of the enlargement of the Union to include new Member States. This contribution would be of around EUR50 million.

[37] The budget for the Executive Agency is set by the budgetary authority as a percentage of the programme's overall financial allocation.

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Energy and Transport

Activit(y/ies): Energy, Industry and Internal Market

Title of action: Multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006)

1. BUDGET LINE(S) + HEADING(S)

New budget headings (to be created or recovered)

B4-106: "Intelligent Energy for Europe" Programme (2003-2006)

B4-106A: "Intelligent Energy for Europe" Programme (2003-2006) - Expenditure on administrative management

B7-841: "Intelligent Energy for Europe" Programme, COOPENER external section, 2003-2006

B7-841A: "Intelligent Energy for Europe" Programme, COOPENER external section, 2003-2006 - Expenditure on administrative management

2. OVERALL FIGURES

2.1 Total allocation for action (Part B): EUR215 million for commitment

2.2 Period of application: 2003-2006

2.3 Overall multiannual estimate of expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR million (to three decimal places)

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b) Technical and administrative assistance and support expenditure (see point 6.1.2)

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c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4 Compatibility with financial programming and financial perspective

[X] Proposal is compatible with existing financial programming.

Proposal will entail reprogramming of the relevant headings in the financial perspective.

Proposal may require application of the provisions of the Interinstitutional Agreement.

2.5 Financial impact on revenue [38]

[38] See separate explanatory note for more details.

[X] Proposal has no financial implications (involves technical aspects regarding implementation of a measure).

OR

Proposal has financial impact - the effect on revenue is as follows:

NB: All details and observations relating to the method of calculating the effect on revenue should be shown in a separate annex.

EUR million (to one decimal place)

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(Please specify each budget line involved, adding the appropriate number of rows to the table if there is an effect on more than one budget line)

3. BUDGET CHARACTERISTICS

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(1) Heading No 3: Budgetary allocation with regard to actions in the areas "rational use of energy and demand management - SAVE", "new and renewable energy sources and diversification of energy production - ALTENER" and "energy aspects of transport - STEER" EUR196 million (2003-2006), of which EUR3.725 million to Heading BA.

Heading No 4: Budgetary allocation for actions in the area "International promotion of renewable energy sources and energy efficiency, particularly in developing countries - COOPENER": EUR19 million (2003-2006), of which EUR0.255 million to Heading BA.

4. LEGAL BASIS

Proposal for a decision of the European Parliament and of the Council adopting a multiannual programme for action in the field of energy: "Intelligent Energy for Europe" Programme (2003-2006). (Show main legal basis only)

5. DESCRIPTION AND GROUNDS

5.1 Need for Community intervention [39]

[39] See the separate guidelines document for more details.

5.1.1 Objectives pursued

(Describe the problem(s)/need(s) (in measurable terms) that the intervention is designed to solve/satisfy (the baseline situation against which later progress can be measured). Describe the objectives in terms of expected outcomes (for example as a change in the above baseline situation).

The decisions adopting a framework programme for actions in the energy sector (1998-2002) and the decisions adopting the six specific programmes expire on 31 December 2002. This proposal for a Decision is for a multiannual programme for actions in the field of energy, entitled "Intelligent Energy for Europe", for the period 2003-2006, which provides continuity for and reinforces the ALTENER and SAVE programmes, in particular, and, to a certain extent, the SYNERGY programme. The programme is designed as the main Community instrument for non-technological support in the field of energy. It combines all the activities in the fields of energy efficiency and renewable energy sources, the energy aspects of transport, and the promotion at international level of renewable energy sources and energy efficiency needed to implement Community strategies for sustainable development and environmental protection. It contributes in particular to the achievement of the main aims of Community strategies in the fields of energy and transport.

Need for Community intervention, particularly in the light of the principle of subsidiarity

Article 174 of the EEC Treaty provides for the prudent and rational utilisation of natural resources, which include, in addition to renewable energy sources, oil, natural gas and solid fuels, which are essential energy sources but are also the main sources of carbon dioxide emissions.

The Gothenburg European Council adopted a strategy for sustainable development, foremost among the priorities of the strategy being the reduction of energy demand, the development of substitute fuels and the spreading of technologies on clean and renewable energy sources. 94% of greenhouse gas emissions are attributable to energy consumption and transport is responsible for 90% of the increases in CO2 emissions. Energy efficiency and renewable energy sources are an important part of the set of measures needed to comply with the provisions of the Kyoto Protocol and referred to in the European Climate Change Programme.

The Green Paper on security of energy supply notes that the European Union is becoming increasingly dependent on external energy sources, acknowledges the need to balance supply policy against clear action for a demand policy and calls for a genuine change in consumers' behaviour so as to orientate demand towards better managed and more environmentally friendly consumption, particularly in the transport and building sectors, and to give priority to the development of new and renewable sources on the energy supply side in order to respond to the challenge of global warming.

The White Paper for a Community strategy and action plan for renewable sources of energy specifies an indicative target of 12% of energy from renewable sources in gross internal consumption in the EU by 2010 and provides for measures to support the promotion and the development of renewable energy sources. The first report on the implementation of the White Paper notes the progress which has been made, but stresses that further efforts are needed at EU and national level to attain these objectives, in particular new legislation on renewable energy sources and their promotion. The implementation of the action plan requires the setting up of systems for monitoring and follow-up.

The action plan to boost energy efficiency provides for a reduction in energy intensity of 1% per annum, while the current trend is close to zero. The implementation of the action plan requires the setting up of systems for monitoring and follow-up. Most of the Community measures concerned with energy efficiency and/or aimed at achieving a greater market penetration of renewable energy sources call for increased promotion at Community level by means of specific programmes in order to create the conditions to move towards sustainable energy systems.

The Council and the European Parliament have on several occasions stressed the need to strengthen and extend the relevant policies and measures and to consider new activities. The two institutions have called on the Commission to put forward proposals for future programmes and to provide in these proposals for sufficient financial support for actions in the fields of renewable energy sources and energy efficiency.

The programme objectives involve the implementation of the Community strategy in the fields of energy contributing to sustainable development. Indeed, the Member States are highly interdependent not only as regards environmental protection and the combating of climate change but also as regards the constraints and challenges associated with security of supply in the current context of the internal energy market. Any energy policy decision taken by one Member State is bound to have a knock-on effect on the other Member States. The fact is that energy policy has taken on a new Community dimension.

The programme is concerned with issues for which the Community is responsible since it is designed as the main Community instrument for non-technological support in the field of energy - in other words, responsibility is shared (Article 175 of the Treaty). Implementation of this instrument cannot be adequately achieved by the Member States acting individually since it requires a promotion campaign and exchanges of experience, know-how and best practices based on close cooperation on a European scale between the various players at national, regional and local level, so as to encourage increased use of renewable energy sources and the rational use of energy, not least in transport. These activities can be carried out most effectively at Community level, and their impact can have beneficial effects for economies of scale resulting from the joint and coordinated action. The only way to guarantee a significant impact for the measures and actions throughout the European Union is to act at Community level.

In this context and in accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty, the Community may take certain measures; furthermore, in accordance with the principle of proportionality as set out in the abovementioned Article, this Decision does not go beyond what is necessary in order to achieve those objectives

5.1.2 Measures taken in connection with ex ante evaluation

(This involves:

a) explaining how and when the ex ante evaluation was conducted (author, timing and whether the report(s) is/are available) or how the corresponding information was gathered. [40]

[40] For the minimum information that must be presented in relation to new initiatives, see document SEC (2000)1051.

b) describing briefly the findings and lessons learnt from the ex ante evaluation.)

5.1.3 Measures taken following ex post evaluation

(Where a programme is being renewed, the lessons to be learned from an interim or ex post evaluation should also be described briefly)

In accordance with Article 5(1) of the Council Decision adopting the multiannual framework programme for actions in the energy sector (1998-2002), the Commission each year examines the progress made on the framework programme and its specific programmes. The evaluation, carried out by independent experts in 2000, mainly looked at the efficiency and transparency of each programme, the Commission's internal coordination and the coherence between the projects selected and the objectives of the programmes in 1998 and 1999. In this report, the evaluators recognised the importance of the ALTENER, SAVE, SYNERGY and ETAP programmes in the context of the Community strategy to reduce CO2 emissions. However, the analyses carried out during the evaluation nonetheless show that there are four main areas which need to be reconsidered to some extent:

- firstly, the existence of "small" programmes with very different target groups and separate actions and procedures; these programmes could well provide the lines of action of one or two programmes, which would increase efficiency through the pooling of human resources and the harmonisation of selection, evaluation and management procedures - under the present Decision, the Commission is proposing a single programme for 2003 to 2006 incorporating four specific fields; provision has also been made for the funding of actions combining several of these fields.

- the lack of consistency between the objectives of some programmes and the resources allocated, in particular to the ALTENER and SAVE programmes; either the objectives need to be restricted, if the resources remain the same, or the financial resources and management needed to attain them must be provided - the new approach to energy policy in the framework of the EU strategy on sustainable development justifies an upward revision of the budgetary allowance for the future programme as well as the focusing of EU efforts on four priority areas and six types of actions or projects eligible for EU funding. Moreover, the European Parliament has on several occasions called on the Commission to provide adequate financial resources for actions in the fields of energy efficiency and renewable energy sources under the future programme(s) in these fields.

- the methods and procedures for selection, evaluation and management must be modernised - these recommendations will be taken into account during the preparation of the work programme provided for in this proposal for a Decision (Article 4 of this Decision).

- the promotion of the framework programme and specific programmes and the way in which the results are disseminated are highly unsatisfactory, unsystematic and inadequate and are a crucial factor which call for change - this proposal makes provision for the allocation of additional human resources to manage the future programme (the setting-up of an Executive Agency under the future Council Regulation [41] would be an option), thereby enabling some Commission staff to be assigned to horizontal programme management tasks such as programme promotion and utilisation of results, promotion of know-how and best practices, and backing up of EU action among the main players at local, regional and national levels. It is envisaged that an important part of the programme budget (about 45%) will be earmarked for these information, promotion and results-evaluation activities.

[41] COM(2001) 808 final, 28.12.2001.

In accordance with Article 5(2) of the Council Decision adopting the multiannual framework programme for actions in the energy sector (1998-2002), the Commission has asked independent experts to carry out an overall external evaluation of the mid-term progress made on the Community actions carried out under the above framework programme and specific programmes.

The interim report setting out the method of analysis of the framework programme and the specific programmes and their impact will be presented to the Commission by the experts in March 2002. The final report will be available in the second quarter of 2002. The conclusions of these evaluations will be transmitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, and the experts' recommendations will be particularly important for the preparation of the work programme (Article 4 of this proposal for a Decision).

5.2 Actions envisaged and budget intervention arrangements

(This point should describe the logic behind the proposal. It should specify the main actions to achieve the general objective. Each action should have one or more specific objectives. These should indicate the progress expected over the proposed period. They should also look beyond immediate outputs but be sufficiently precise to allow concrete results to be identified. Specify for each main action:

- the target population(s) (specify number of beneficiaries if possible);

- the specific objectives set for the programming period (in measurable terms);

- the concrete measures to be taken to implement the action;

- the immediate outputs;

- the expected effects/impact on the achievement of the general objective.

Information should also be given on the budget intervention arrangements (rate and form of the required financial assistance).

This programme is structured in four specific fields:

a) the improvement of energy efficiency and demand management, in particular in the construction sector and industry, including the preparation of legislative measures and their application - "SAVE" actions;

b) the promotion of new and renewable energy sources for centralised and decentralised production and their integration into the urban environment, including the preparation of legislative measures and their application - "ALTENER" actions;

c) support for initiatives relating to the energy aspects of transport, the diversification of fuels and the promotion of renewable fuels and energy efficiency in transport, including the preparation of legislative measures and their application - "STEER" actions;

d) support for initiatives relating to the promotion of renewable energy sources and energy efficiency in the developing countries - "COOPENER" actions.

EU funding under the programme for the four specific areas will be for measures or projects concerned with:

a) devising medium and long-term strategies in the energy fields contributing to sustainable development, security of supply, competitiveness and environmental protection, on the basis of shared analyses, including the development of standards and labelling and certification systems, and the long-term voluntary commitments to be agreed with industry as well as forward studies, strategic studies and regular monitoring of the development of the markets and energy trends;

b) creating or enlarging structures and instruments for the development of sustainable energy, including local and regional energy planning and management, and the development of adequate financial products and market instruments;

c) facilitating and accelerating the market penetration of sustainable energy systems and equipment and stimulating investment to ease the transition from the demonstration to the marketing of the best technologies;

d) developing information, education and training structures; utilising results, promoting and disseminating know-how and best practices involving all consumers, and cooperating with the Member States through operational networks at Community and international level;

e) monitoring the implementation and impact of EU sustainable energy policy;

f) evaluating the impact of actions and projects funded under the programme.

Under this programme, the financial assistance to the actions and measures in the specific fields will be established on the basis of the EU added value of the action proposed and will depend on its benefit and expected impact as well as on the origin of the initiative. As a general rule, the aid may not exceed 50% of the total cost of the measure, the rest being covered either by public or private funds or a combination of the two.

The aid may, however, cover all the cost of some actions, such as studies and other actions to prepare, supplement, implement and evaluate the impact of Community strategy and policy measures and any measures proposed by the Commission to encourage exchanges of experience and know-how to improve the coordination between Community, national, international and other initiatives. All costs relating to actions and measures undertaken solely on the Commission's initiative will be borne by the Community.

Article 4 of the proposal for a Decision specifies that the Commission will establish a work programme, in consultation with the Committee referred to in Article 8(1), within six months of the adoption of the Decision. With regard to the work programme, the development of priorities for action within each field and a timetable for carrying them out will ensure coherence, complementarity and synergy between these measures and initiatives taken by the Member States and with measures carried out under other Community programmes.

The programme will be implemented mainly by means of "key actions" in the various fields. These will be defined when laying down the work programme and adapted, if necessary, during the course of the programme. Key actions covering several specific fields may also be considered.

On the matter of eligibility, the programme is open to the participation of the Central and Eastern European candidate countries, in accordance with the conditions laid down in the European agreements, in the additional protocols relating thereto and in the decisions of the respective association councils. It shall also be open to the participation of Cyprus, Malta and Turkey on the basis of the bilateral agreements concluded with these countries. Likewise, the programme is open to the participation of the EFTA/EEA countries on the basis of additional funds and in accordance with procedures to be agreed with these countries.

With regard to the evaluation of the programme, the Commission is required each year to examine the progress made on implementing the programme and actions undertaken in the specific fields. During the third year of implementation of the programme and in any case before putting forward proposals for the continuation of the programme, the Commission will have independent experts carry out an external evaluation of the overall implementation of the Community actions performed under this programme.

* Specific objectives: links with the general objective

All the actions to be funded are designed to contribute to the balanced pursuit of the general objectives of the European Union's medium and long-term energy strategy, namely security of supply, competitiveness and environmental protection.

The programme also seeks to promote sustainable development, economic and social cohesion and environmental protection, thereby generating an effective link between these measures and actions carried out under other Community policies.

Lastly, the programme will help to increase transparency, coherence and the coordination of all the activities and other measures in the energy sector.

This programme has the following specific objectives:

- to provide the elements needed for the development and implementation of a medium and long-term energy policy, notably with regard to demand management, increased use of renewable energy sources, energy diversification, including in transport, reducing dependence on energy imports, strengthening the potential of the regions, in particular the outlying regions, and preparing the legislative measures needed to attain these strategic objectives;

- to develop the instruments and means needed to follow up, monitor and evaluate the impact of the measures adopted by the EU and its Member States in the fields of energy efficiency and renewable energy sources, including the energy aspects of transport;

- to bring about a genuine change in energy behaviour at European level by raising awareness among the main players concerned (business and European citizens in general) so that they move towards efficient and intelligent energy production and consumption schemes based on solid, sustainable foundations; to promote exchanges of experience and know-how; to support activities intended to boost investment in emerging technologies; to encourage the spread of best practices and the best technologies available, not least in the educational system, and to promote them at international level.

Target population:

Public and private bodies, universities and study centres, European national, regional and urban agencies and bodies which promote energy efficiency and new and renewable energy sources, all sectors involved in the promotion of sustainable energy (e.g. industry, financial institutions, equipment manufacturers, installers and technicians, architects, users and consumer associations, international organisations, industrial and professional associations, consultants) and, by extension, the entire population of the European Union and the candidate countries.

The activities to utilise the results and spread best practices are specifically intended to multiply the impacts obtained through the targeted actions in the specific fields. These activities, which will be carried out through operational networks at EU and international level, are intended to utilise the results of the targeted actions and to stimulate the large-scale copying of best practices throughout Europe (including the candidate countries) and in third countries' markets.

5.3 Methods of implementation

(Specify the methods to be used to implement the planned actions: direct management by the Commission using either regular or outside staff only, or by externalisation. In the latter case, give details of the arrangements envisaged for this externalisation (TAO, agencies, offices, decentralised executive units, management shared with Member States - national, regional and local authorities.

Indicate the effect of the externalisation model chosen on the financial intervention, management and support resources and on human resources (seconded officials, etc.))

In view of the priority which should be given to demand management measures, the scale of the operations envisaged in the new "Intelligent Energy for Europe" programme should, in order to be effective, be considerably broader than in previous energy programmes because of the large variety of players concerned.

Furthermore, the implementation of strategies for energy efficiency and renewable energy sources and of the measures already adopted or being prepared calls for continuous dialogue and enhanced cooperation with the bodies working in these fields at national, regional and local level, as described in the White Paper on European Governance, and also necessitates the creation of adequate cooperation and financing instruments and resources within the framework of this programme. This will inevitably lead to an increase in the workload associated with the implementation and management of the programme, inter alia because a larger number of small projects will be funded.

In the present situation and given the nature of the actions planned, a first option would be for the delegation of certain programme management tasks to an executive agency, except in the case of tasks involving a degree of assessment which would mean making political choices.

As a result of the Agency carrying out, under Commission control, certain tasks related to the management and monitoring of the programme, some examples of which are summarised above, the Commission will be in a position to focus the efforts of part of its personnel currently assigned to programme management on the more strategic activities, including overall monitoring and programme promotion and information. In addition, coordination with activities carried out by the JRC will make it possible to optimise the monitoring of technological options and the results of the projects and actions carried out under the programme.

In particular, the Agency could be assigned the following tasks:

- drawing up for the Commission recommendations on the execution of the "Intelligent Energy for Europe programme" and collecting, analysing and transmitting to the Commission all the information needed to guide implementation of the Community programme;

- managing some or all of the phases in the lifetime of specific individual projects in the context of implementing the programme, and carrying out the necessary checks to that end, by adopting the relevant decisions using the powers delegated to it by the Commission;

- adopting the instruments of budget execution for the revenue and expenditure and carrying out, on the basis of the powers delegated to it by the Commission, all the necessary programme implementation operations, particularly with regard to the award of contracts and subsidies;

- promoting the utilisation and dissemination of the project results and enacting measures funded under the programme at local, regional and national level in close collaboration with the relevant Commission departments.

Accordingly, the Commission is considering presenting, as soon as possible, a proposal for a Decision setting up an Executive Agency as soon as the Council Regulation laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes [42] has been adopted.

[42] COM(2001) 808 final, 28.12.2001.

It is essential that the European Union provide itself with the appropriate resources to implement its ambitious action programme on energy against the backdrop of the Community strategy for sustainable development adopted by the European Council in June 2001. The Commission's initial proposal for the former energy framework programme (1998-2002) provided for a budget of EUR200 million, which was ultimately brought down to EUR175 million.

Several factors justify an upward revision of the budgetary allowance for this programme compared with the energy framework programme:

- the need to reinforce actions in the fields of energy efficiency (SAVE) and renewable energy sources (ALTENER) in the light of the new political guidelines on energy, the environment and sustainable development and of the legislation adopted and planned in these two fields, and in response to repeated requests by the European Parliament for increased funding. These rely, inter alia, on enhanced Community action as regards the monitoring of the implementation of the legislative framework and of the Community measures in these two fields, as well as in terms of evaluating its impact on the market;

- the priority given to the energy aspects of transport in the light of the new political guidelines on energy, the environment and sustainable development which form the basis of the proposal to create a specific STEER action with an indicative budget of EUR45 million;

- the substantial expansion of activities linked to the utilisation of the programme results, actions to promote and disseminate know-how and best practices and technologies in the fields of energy efficiency and renewable energy sources, not least in the transport sector, and actions to establish a more effective dialogue and interaction between the Community and the regional and local government bodies and civil society, with a view to creating an intelligent energy culture within European society. Community funding for these actions is estimated at 45% of the overall programme budget;

- the consolidation of international action (COOPENER) focusing, in particular, on measures to promote renewable energy sources and energy efficiency in the developing countries against the backdrop of the Kyoto mechanisms.

As a result, a sizeable increase in the budgetary allowance is proposed compared with the previous programme: EUR215 million [43] for the proposed duration of the programme (2003-2006). The annual commitment appropriations for implementing the programme will be determined by the budgetary authority within the limits of the financial perspective. The amount will be fixed each year by the budgetary authority (see Table 7.3). As a result of the enlargement of the Union to include new Member States, an increase in the budget, which should be of around EUR50 million, is to be anticipated from 2004 onwards.

[43] In real terms, the proposed budget increase is EUR77.43 million. Aggregate EU-15 inflation: 1.3% (1998), 1.2% (1999), 2.1% (2000), 2.4% (2001) in "Eurostat Price Statistics".

As far as the management of this programme is concerned, the Commission anticipates that, on the basis of the new guidelines, its implementation will lead to about 270 contracts a year (rising to 330 contracts a year from 2004, as a result of the accession of new Member States and taking into account a supplementary contribution that is estimated to amount to about EUR50 million). Management of the programme will involve 65 people. The energy framework programme involves 38 people. The extra human resources needed are estimated at 27 people.

The energy framework programme, which has a budget of EUR175 million, has led to more than 1 000 contracts, i.e. an average of 200 contracts a year. The average size of contract was about EUR130 000 during the period 1998-1999 and EUR300 000 during the period 2000-2001, as a result of the restrictive policy followed to avoid triggering a sharp rise in the number of small projects. At the present time, 544 contracts are in progress, involving 38 people.

The Executive Agency budget, determined in percentage terms by the budgetary authority, would be a percentage of the overall financial allocation for the "Intelligent Energy for Europe" programme, in the management of which the Agency staff would be involved. In accordance with Article 13 of the amended proposal for a Council Regulation laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes, [44] the Steering Committee would adopt each year, acting on a proposal from the Agency's Director, the draft administrative budget for the following financial year, including the establishment plan.

[44] COM(2001) 808 final, 28.12.2001.

Delegating certain programme management tasks to the Agency would result in the secondment of eight Commission staff members to the Agency for the duration of the programme. The Agency would have a staff of 35: eight seconded from the Commission (representing some 23% of the total staff of the Agency) and 27 new recruits. The estimate of the human resources within the Agency is set out in the table below.

>TABLE POSITION>

The Commission would have a smaller staff complement of 30.

A second option would be to have the programme managed entirely by the relevant Commission departments. This would involve major changes to the management of the programme and to its intervention mechanisms, including:

- an increase in staff in the Commission's programme management services from 38 to 52;

- a substantial reduction in activities relating to information, promotion and utilisation of the results of projects and actions, which would limit the extent of the benefits of the programme;

- imposition of a minimum threshold for the funding of projects or actions, resulting in a significant reduction in the number of contracts, thus excluding the main stakeholders at local and regional level from the activities under the programme.

The details given about the management of the programme are for information purposes. The figures for the Agency option may be modified as a result of the study called for by the [PCG Externalisation].

6. FINANCIAL IMPACT

6.1 Total financial impact on Part B (over the entire programming period)

(The method of calculating the total amounts set out in the table below must be explained by the breakdown in Table 6.2.)

6.1.1 Financial intervention

Commitment appropriations in EUR million (to three decimal places)

>TABLE POSITION>

>TABLE POSITION>

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period) [45]

[45] See the separate guidelines document for more details.

(Where there is more than one action, give sufficient detail of the individual measures to be taken for each one to allow the volume and costs of the outputs to be estimated)

Commitment appropriations in EUR million (to three decimal places)

>TABLE POSITION>

Note (1): Measures 1 to 6 correspond to type of actions a), b), c), d), e) and f) as referred to in point 5.2 of this financial statement. This breakdown between different measures is given for indicative purposes. The work programme will set annual priorities, along with the type(s) of measure which are envisaged each year in each specific area and are to be the subject of each call for publication. In the case of COOPENER, it is intended to focus about 75% of the budget on measures 1, 3 and 4.

Note (2): It is estimated that, on average, 270 contracts will be concluded each year, bringing the average amount per contract to EUR 0.196 million. The supplementary contribution of about EUR50 million a year anticipated from 2004 as a result of the accession of new Member States would mean around 185 additional contracts in 2004-2006. In that context, it is estimated that an average of 330 contracts a year will be concluded from 2004 onwards.

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

>TABLE POSITION>

(1) At present 38 people are involved in managing the energy framework programme (1998-2002). With a view to setting up an Executive Agency (first option), delegating certain management tasks to the Agency would make possible a reduction in staff numbers within the Commission, estimated at 8 people who would be seconded to the Agency for the duration of its involvement in the management of the programme. However, the management of the future programme will require additional human resources estimated at 27 people, to be provided in connection with the future Executive Agency. The Agency would have a total staff of 35 (8 officials/27 agents seconded from the Commission and 27 additional people to be recruited). The programme will involve a total of 65 people overall.

(2) Failure to set up the Executive Agency (second option) would entail increasing the number of staff needed at the Commission. In all, 14 additional staff would be needed. Management of the programme would involve 52 people within the Commission.

7.2 Overall financial impact of human resources

>TABLE POSITION>

The amounts are total expenditure for twelve months.

7.3 Other operating expenditure deriving from the action

>TABLE POSITION>

The amounts are total expenditure for 12 months. See also Note (1), Table 7.1.

(1) Specify the type of committee and the group to which it belongs.

I. Annual total (7.2 + 7.3) // EUR4.090 million

II. Duration of action // 4

III. Total cost of action (I x II) // EUR16.360 million

(In the estimate of human and administrative resources required for the action, DGs/Services must take into account the decisions taken by the Commission in its orientation debate and when adopting the preliminary draft budget (PDB). This means that DGs must show that human resources can be covered by the indicative pre-allocation made when the PDB was adopted.

Exceptional cases (i.e. those where the action concerned could not be foreseen when the PDB was being prepared) must be referred to the Commission for a decision on whether and how (by means of an amendment of the indicative pre-allocation, an ad hoc redeployment exercise, a supplementary/amending budget or a letter of amendment to the draft budget) implementation of the proposed action can be accepted.)

The impact of this proposal on Part A of the budget is limited in general terms. Regular monitoring of the implementation of this Decision will be necessary, consisting of the preparation of and participation in meetings and various coordination activities with the Member States, the overall supervision of the implementation of the programme and its results, and the consolidation of the evaluation results and presentation of the implementation reports to the European Parliament, the Council and other competent bodies. Some of the management tasks are likely to be handled by the Executive Agency.

8. FOLLOW-UP AND EVALUATION

8.1 Follow-up arrangements

(Adequate follow-up information must be collected, from the start of each action, on the inputs, outputs and results of the intervention. In practice, this involves: (i) fixing indicators for inputs, outputs and results; (ii) establishing data collection methods.)

Following the adoption of this Decision, the Commission will establish, in consultation with the programme Committee, a work programme which will in particular give details of the selection criteria and how they apply to each type of action. It will also define a coherent set of input, output and performance indicators for each field and type of action, and will determine the mechanisms for guaranteeing that the best possible use is made of the results obtained.

The Executive Agency (the first of the two options envisaged by the Commission for the management of the programme) would also be responsible for monitoring the actions carried out under this programme and regular evaluation of its impact on society.

8.2 Arrangements and schedule for evaluation

(Describe the planned schedule and arrangements for interim and ex post evaluations to assess whether the intervention has achieved the objectives set. In the case of multiannual programmes, at least one thorough evaluation is needed during the life cycle of the programme. For other activities, ex post or mid-term evaluations should be carried out at intervals not exceeding six years.)

- Arrangements and schedule for evaluation

Regular evaluation of the actions will be carried out on a systematic basis. The Commission (potentially assisted by the Executive Agency), will each year examine the progress made on the programme and these sectoral and horizontal parts. During the third year of application of the programme and in any case before putting forward proposals on any subsequent programme, the Commission will have independent experts carry out an overall external evaluation of the implementation of the Community actions carried out under the programme (Article 9 of this Decision).

- Assessment of the results obtained (where an existing action is to be continued or renewed)

In the light of changes to the political priorities and in the market and the information obtained from the regular evaluation of the actions and the programme and the Agency's activity reports, the Commission may put forward proposals to adjust or supplement the work programme. Before putting forward proposals for a subsequent programme, the Commission will have independent experts carry out an overall external evaluation of the progress made on the Community actions carried out under the programme.

9. ANTI-FRAUD MEASURES

(Article 3(4) of the Financial Regulation: "In order to prevent risk of fraud or irregularity, the Commission shall record in the financial statement any information regarding existing and planned fraud prevention and protection measures.")

A large number of financial and administrative control mechanisms are provided for, corresponding to the specific nature of the action concerned. They apply throughout the process and include in particular:

before contract signature:

- qualitative and financial analysis of the tenders, proposals or applications for subsidy;

- involvement of other Commission departments concerned in order to avoid any duplication of work;

after contract signature:

- examination of the statements of expenditure before payment, at several levels (financial manager, responsible technical officers) and consultation of the Commission departments concerned as regards the results;

- payment for the work, after acceptance, on the basis of a percentage estimated before awarding the contract and in the light of a final financial report on the action;

- internal audit by the financial controller;

- local inspection to detect errors or other irregularities by examination of the supporting documentation.

Information and monitoring of compliance with procedures by experts from the Member States invited to the meetings of the Programme Committee referred to in Article 8(2). Other bodies concerned, such as the European Parliament, will be fully informed about the results of the work.

IMPACT ASSESSMENT FORM IMPACT OF THE PROPOSAL ON BUSINESSES AND, IN PARTICULAR, ON SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

Title of proposal

Proposal for a Decision of the European Parliament and of the Council concerning a multiannual programme for actions in the field of energy - "Intelligent Energy for Europe (2003-2006)".

Reference number of the document

COM(2002) 162 final

The proposal

1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and what are its main aims-

Article 6 of the Treaty states that environmental protection requirements must be integrated into the definition and implementation of Community policies and activities. Article 174 of the Treaty provides for the prudent and rational utilisation of natural resources, which include, in addition to renewable energy sources, oil, natural gas and solid fuels, which are essential energy sources but also the main sources of carbon dioxide emissions.

The Gothenburg European Council [46] adopted a strategy for sustainable development and identified greenhouse gas emissions and pollution caused by transport as two of the main obstacles to it, which is confirmed by the analysis in the Green Paper on security of energy supply. [47] The Green Paper notes that the European Union is becoming increasingly dependent on external energy sources, stresses the need to balance supply policy against clear action for a demand policy and calls for radical change in consumers' behaviour so as to orientate demand towards better managed and more environmentally friendly consumption, particularly in the transport and building sectors, and to give priority to the development of new and renewable sources in the light of energy supply in order to respond to the challenge of global warming.

[46] SI(2001) 500 final, 16.06.2001.

[47] COM(2000) 769 final, 29.11.2000.

94% of greenhouse gas emissions are attributable to energy consumption and transport is responsible for 90% of the increases in CO2 emissions. Energy efficiency and renewable energy sources are an important part of the set of measures needed to comply with the provisions of the Kyoto Protocol on climate change.

The White Paper on a Community strategy and action plan for renewable energy sources lays down an indicative target of 12% of energy from renewable sources in gross EU internal consumption by 2010 and provides for supporting measures for the promotion and development of renewable energy sources. The first report on its implementation notes the progress which has been made, but stresses that further efforts are needed at EU and national level to achieve these objectives, in particular new legislative measures on renewable energy sources and their promotion. The implementation of the action plan requires the setting up of systems for monitoring and follow-up.

The action plan to boost energy efficiency provides for a reduction in energy intensity of 1% per annum, while the current trend is close to zero. The implementation of the action plan requires the setting up of systems for monitoring and follow-up. Most of the Community measures concerned with energy efficiency and/or aimed at achieving a greater market penetration of renewable energy sources call for increased promotion at Community level by means of specific programmes in order to create the conditions to move towards sustainable energy systems.

The Council and the European Parliament have on several occasions stressed the need to strengthen the Community measures in these two areas and to consider new activities. The two institutions have called on the Commission to put forward proposals for future programmes and to provide in these proposals for sufficient financial support for actions in the fields of sustainable energy. The decisions adopting a framework programme for actions in the energy sector and for specific programmes (1998-2002) expire on 31 December 2002.

In accordance with Article 5(2) of the Council Decision adopting a multiannual framework programme for actions in the energy sector (1998-2002) and related measures, the Commission has had independent experts carry out an overall external evaluation of the progress made on the Community activities carried out under the above framework programme and the specific programmes. The conclusions of these evaluations will be available in the second quarter of 2002 and will be sent to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. The evaluators' recommendations will be particularly useful during the preparation of the detailed work programme. During the annual evaluation carried out in 2000 of the framework programme and the specific programmes, the evaluators, having recognised in particular the importance of the ALTENER, SAVE, SYNERGY and ETAP programmes in the framework of the Community strategy to reduce CO2 emissions, noted the lack of resources for these programmes given the needs and suggested they should be increased and continued in a more structured and more flexible single management programme in order to increase their effectiveness and impact. The Commission is therefore urged to strengthen the promotion of know-how and best practices and the systematic utilisation of the results of the programmes.

With this proposal for a Decision, the Commission is acting in response to the requests of the Council and the European Parliament with regard to strengthening Community action in the fields of renewable energy sources and energy efficiency. The Commission proposal is for a multiannual programme for actions in the field of energy, entitled "Intelligent Energy for Europe (IEE)", for the period from 2003 to 2006. The programme is designed as the main Community instrument for non-technological support in the fields of renewable energy sources and energy efficiency, including the energy aspects of transport and international cooperation with the developing countries. The programme combines all the actions in the field of energy, including transport, required to implement the Community strategies for sustainable development and environmental protection. It will help to achieve the main aims of Community strategies for energy and transport.

All the actions to be funded are designed to contribute to the balanced pursuit of the three objectives of the European Union's energy policy, namely security of supply, competitiveness and environmental protection, taking into account the principle of subsidiarity; these actions also seek to promote sustainable development, economic and social cohesion and environmental protection, thereby generating an effective link between these measures and the actions carried out under other Community policies.

Lastly, the programme will help to increase transparency, coherence and the coordination of all the activities and other measures in the energy sector.

This programme has the following specific objectives:

- to provide the elements needed for the development and implementation of a medium and long-term energy policy, notably with regard to demand management, increased use of renewable energy sources, energy diversification, including in transport, reducing dependence on energy imports, strengthening the potential of the regions, in particular the outlying regions, and preparing the legislative measures needed to attain these strategic objectives;

- to develop the instruments and means needed to follow up, monitor and evaluate the impact of the measures adopted by the EU and its Member States in the fields of energy efficiency and renewable energy sources, including the energy aspects of transport;

- to bring about a genuine change in energy behaviour at European level by raising awareness among the main players concerned (business and European citizens in general) so that they move towards efficient and intelligent energy production and consumption schemes based on solid, sustainable foundations; to promote exchanges of experience and know-how; to support activities intended to boost investment in emerging technologies; to encourage the spread of best practices and the best technologies available, not least in the educational system, and to promote them at international level.

The programme objectives involve the implementation of the Community strategy in the fields of energy contributing to sustainable development. Given that implementation of this instrument cannot be adequately achieved by the Member States acting individually since it requires a promotion campaign and exchanges of experience, know-how and best practices based on close cooperation on a European scale between the various players at national, regional and local level, so as to encourage increased use of renewable energy sources and the rational use of energy, not least in transport, all of which can be better achieved at Community level, the Commission may take measures in accordance with the principle of subsidiarity enshrined in Article 5 of the Treaty.

These actions will concentrate on the four following priority areas:

- energy demand management,

- increased utilisation of new and renewable energy sources,

- energy diversification, in particular in the transport sector,

- promotion of renewable energy sources and energy efficiency at international level, particularly in the developing countries.

Impact on business

2. Who will be affected by the proposal-

* Which sectors of business-

The businesses which are affected directly (i.e. which receive direct financial aid from the programme as contractors) or indirectly (i.e. the recipients of information sent out through the promotion networks on the legislation in force, the opportunities offered by the programmes and other Community initiatives, the results of the projects funded under these programmes and likely to be copied, and the best practices available) are located in several sectors of activity, both as producers and/or users of energy:

- agriculture;

- industry, in particular the energy production industry and the energy equipment manufacturing and installation industry, and the building industry;

- services sector, in particular energy distributors, the regulatory authorities for energy, financial and insurance institutions, architects and engineers, transport companies, consultants and energy agencies.

* Which sizes of business (what is the concentration of small and medium-sized firms)-

Although participation in the programme is open to all types of business, most of the businesses concerned are SMEs.

* Are there particular geographical areas of the Community where these businesses are found-

All regions of the Community are affected by the programme. For some categories, regional and local siting is predominant.

3. What will businesses have to do to comply with the proposal-

To participate in the programme, businesses must meet the conditions with regard to eligibility and comply with the rules and arrangements for participation. The Community dimension of the projects is essential, which means that businesses or agencies from a number of different EU countries must take part in one and the same project. Proposals must correspond to the priorities laid down and comply with the guidelines. The eligibility and selection criteria, rules for participation, funding arrangements and guidelines for putting forward a proposal will be defined in detail in the work programme prepared by the Commission, in consultation with the Member States, following the adoption of this Decision.

4. What economic effects is the proposal likely to have:

* on employment-

* on investment and the creation of new businesses-

* on the competitive position of businesses-

The aim of the programme is, by promoting energy demand management, new and renewable energy sources and energy diversification, not least in transport, to contribute to the achievement of general EU objectives with regard to energy policy, especially security of supply, the competitiveness of EU businesses and environmental protection.

The development of indigenous energy resources, such as renewable sources, contributes to sustainable growth, especially in rural areas, by creating further scope for economic activities, business and employment. In some regions, the deployment of new and renewable energy sources will help both to produce energy and reduce pollution (decontamination of waste treatment, incorporation of renewables into buildings, etc.).

According to a study carried out for the Commission, [48] the impact on employment of the aims of the White Paper on the implementation of a Community strategy and action plan for renewable energy sources (1998-2000) can be determined from the forecast rates of penetration of new and renewable energy sources by sector. The results indicate that about 530 000 net jobs may be created by 2010 in the 15 Member States in the renewable energy sector, including operation and maintenance, construction and installation.

[48] Impact of renewable energy sources on job creation. The study aimed to develop a method for calculating the number of jobs created in the renewable energy sector by installed capacity and per million euros invested.

Energy efficiency, which is a key factor for a large number of sectors of industry, is an important part of the overall action plan for sustainable development in the field of business policy. Given that improving energy efficiency in business will cut production costs and boost productivity, the programme will have a direct impact on the competitiveness of businesses.

5. Does the proposal contain measures to take account of the specific situation of small and medium-sized enterprises (reduced or different requirements, etc.)-

Yes. The activities to be carried out under this programme are concerned essentially, but not exclusively, with small and medium-sized enterprises.

Consultation

6. List the organisations which have been consulted about the proposal and outline their main views.

The Directorate-General for Energy and Transport has organised several meetings and seminars at which organisations representing the renewable energy and energy efficiency sectors put forward suggestions for the continuation of the existing programmes in the fields of renewable energy sources and energy efficiency, the strengthening of these programmes and the targeting of the Commission's action on these two specific areas. The problem of transport was also raised. There is therefore a general consensus on the need to continue with Community action in the renewable energy sources and energy efficiency sectors. Some of the suggestions concerning priority activities will be dealt with when the detailed work programme is drawn up. These seminars took place in November 2001.

During the first conference on energy and transport, held in Barcelona in October 2001, the sectors affected by the proposal again stressed the need to continue with the Community programmes in this field. They also stressed the need to guarantee future access for small and medium-sized enterprises to these programmes, given their focus on demand and support for decentralised activities, and for broad dissemination of the results of the projects supported in the framework of the programmes.

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