(a)A3-0310/91

RESOLUTION

on the European Energy Charter

The European Parliament,

- having regard to the Lubbers memorandum on a European Energy

Community presented to the Dublin European Council in June

1990,

- having regard to the statements made by the President of the

Commission in the context of the CSCE summit held in Paris in

November 1990,

- having regard to the communication from the Commission

concerning the European Energy Charter (COM(91) 0036),

- having regard to the draft charter adopted by the Council on

10 July 1991,

- having regard to its resolution of 12 July 1991 on the

European Energy Charter,

- having regard to its resolution of 13 December 1991 on

general principles of Pan-European energy cooperation, energy

cooperation with the USSR and electricity supplies to Central

and Eastern European countries,

- having regard to the provisional results of the conference on

the Energy Charter at which Parliament has now been granted

observer status, thanks to the representations made by the

Commission,

- having regard to Rule 34 of its Rules of Procedure,

- having regard to Rule 121 of its Rules of Procedure,

- having regard to the report by the Committee on Energy,

Research and Technology (A3-0310/91),

A. whereas the interinstitutional procedures relating to major

international agreements make provision for the consultation

of Parliament in accordance with the Solemn Declaration on

European Union,

B. whereas a common energy policy (CEP) is a prerequisite for

completion of the internal market and for cooperation by the

Community in the energy sphere with the countries of Central

and Eastern Europe, including the former Soviet Union,

C. whereas, under the auspices of the CSCE, the signatories of

the Paris Charter declared that they were 'determined to give

the necessary impetus to cooperation between the signatory

states in the field of energy . . . for economic and social

development',

D. whereas the restructuring of the energy sector is a key

factor as regards both the success of the economic reform

process upon which the countries of Central and Eastern

Europe, including the former Soviet Union, have embarked, and

the safeguarding of our common environment,

E. whereas the principal aims of the common energy policy (CEP)

must be to guarantee security of energy supply for the

Twelve, to obtain it under advantageous economic conditions,

unify management to diversify internal and external energy

sources, obtain maximum efficiency with minimum consumption

and reduce as far as possible the environmental risks,

F. whereas the Ukrainian Government has decided to close the

Chernobyl nuclear power station after the latest incident

involving the No. 3 reactor,

G. whereas the energy sector lends itself particularly well to

joint efforts to achieve economic integration between States

and technological cooperation between undertakings,

H. having regard to the role and the responsibilities of the

Community in those sectors and the developments scheduled to

follow revision of the Treaties,

I. having regard to the economic, social and ecological problems

arising in the countries of Central and Eastern Europe and

the former Soviet Union, to which their governments must find

a solution,

J. whereas the process of privatization of the energy industry

in Central and Eastern Europe, including the former Soviet

Union, must be speeded up by attracting the investments

needed for the purpose,

K. whereas investors must be given confidence in the countries

of Central and Eastern Europe, including the former Soviet

Union,

1. Deplores the fact that it was not consulted in accordance

with the Solemn Declaration on European Union and considers

that we have a common interest in promoting long-term energy

cooperation within Europe as regards the optimum use of

resources, security of supply, environmental protection and

vocational training;

2. Regards it as essential that the basic principles embodied in

Directive 85/337/EEC on the assessment of the effects of

certain public and private projects on the environment be

incorporated into the European Energy Charter;

3. Considers it necessary to coordinate medium and long-term

objectives in energy policy for all European countries, with

a view to the establishment of an economic market covering

the entire European continent;

4. Believes it opportune to develop, through appropriate

measures, a climate favourable to a gradual increase in trade

within the framework of a market economy in which realistic

prices and transparent costs are guaranteed;

5. Notes with interest the growing desire among non-European

countries to cooperate with European countries in the energy

sphere and points, in this connection, to the specific

features which the new model for pan-European energy

cooperation must have with regard for the legitimate

Community preference and the development of relations between

the Community and the countries of Eastern Europe;

6. Considers that arrangements for such participation and the

forms that it takes should not least meet the need for

stability in countries adjacent to the Community;

7. Recalls the importance of democratic consensus on economic

and strategic objectives set by European governments,

particularly in Central and Eastern Europe, and expresses its

concern at the apparent disregard for the social consequences

of the proposed restructuring of the energy sector;

8. Agrees with the approach expressed in the original Community

plans for a European Energy Charter, but with the detailed

provisions and additions contained in paragraph 12,I;

9. Expresses its concern regarding the current negotiating text,

which does not pay sufficient attention to the specific

nature of European energy needs and does not take adequate

account of the environmental concerns of European public

opinion;

10.Questions whether the strategic interests of European

countries in the energy sphere can be safeguarded merely by

developing a larger market and whether that market will make

the exploitation of renewable energy sources feasible in the

medium-term;

11.Expresses serious reservations regarding the direction which

the discussions are now taking and the choices which may now

be made;

12.Calls on the Community delegation to consider Parliament's

opinion as a mandate which must be adhered to in negotiating

the text of the Charter, particularly in respect of the

following:

I. AIMS OF THE CHARTER

(a) In the field of commerce among partners who wish to

move towards a position of equality, a genuine and

gradual development in trade will be feasible if a

solution is found to problems linked with the

convertibility of the rouble,

(b) as regards coordination in the energy field, work must

continue on drawing up a common energy policy (CEP)

incorporating and harmonizing the different national

policies, with the aim of improving the energy balance

of the Community and that of the Member States,

(c) if the project is to succeed, it would seem necessary

to make the setting-up of a large-scale strategy for

the training of national economic operators one of the

main objectives in the field of cooperation; as regards

the future costs of energy resources, efforts should

be made to devise a method of internalizing the

environmental costs of extraction, transport and

consumption;

(d) optimum energy use entails clearly defining objectives

as regards appropriate technology transfer projects and

the necessary funding mechanisms,

(e) plans must be made for a coherent cooperation programme

in the field of environment and safety, not least with

a view to minimizing the environmental impact of the

use of energy resources, with more detailed indication

of priority action sectors and with full environmental

impact assessment of all major projects;

(f) provision must be made for a definite policy of closing

all graphite-gas nuclear power stations such as

Chernobyl;

(g) the Community must offer all possible collaboration in

the form of technologies and technicians to help the

governments of the Republics which, like the Ukrainian

Government, have decided or may decide to close

immediately graphite-gas nuclear power stations (such

as Chernobyl);

II.IMPLEMENTATION

(a) The measures planned for the implementation of the

Charter must be governed by the principle of gradual

transition,

(b) efforts must be made to achieve optimum synergy between

the projects to improve market-related measures and

measures planned for the promotion of private

investment and those which fall within the remit of the

public sector; the long-term profitability of certain

investments vital to the reconstruction of the energy

sector, such as the interconnection of networks, must

be studied in depth with a view to determining the

funding to be allocated, the means of coordinating the

various sources of funding and the ways they interact,

(c) as regards access to and the exploitation of resources,

it would be desirable to define the concept of 'non-

discriminatory rules' more clearly and incorporate

explicit references to the sovereignty of countries in

respect of their energy reserves; moreover, the link

between the exploitation of resources and development

which is sustainable from the ecological point of view

should be given serious consideration,

(d) as regards the protection of investment, given that in

due course legally binding rules must be established,

it would be useful to include in the Charter a

declaration of principle on the transitional period

covering profit repatriation rights and currency

convertibility problems in countries with economies in

transition; moreover the link between the exploitation

of resources and development which is sustainable from

an ecological point of view must form part of the

decision-making and assessment process,

(e) a flexible approach is needed in the field of technical

specifications and safety regulations; although joint

efforts must be made as soon as possible in the field

of nuclear safety, a period of adjustment will be

needed before Western standards and norms can be

enforced in the countries of Eastern Europe,

(f) in the field of scientific and technological

cooperation, it is important to encourage, by

appropriate means, the transfer of innovative

technologies with minimum impact on the environment;

similarly, as regards the training programmes planned,

priority must be given to training staff who are not

sufficiently conversant with modern techniques and

practices,

(g) the measures which need to be carried out in the energy

sector to safeguard and enhance the environment, while

complying with the rules of the market economy, cannot

be limited to increased use of market-based

instruments,

(h) the Community must concentrate, in its cooperation with

third countries, on areas which are demonstrably of

mutual benefit;

13.As regards the basic Agreement and the specific protocols,

considers that the present stage is one of intermediate

reflection and considers that Parliament's deliberations on

the matter should follow the procedure laid down in Article

238 of the EEC Treaty, since the matter under consideration

is an international agreement which entails legal commitments

and has budgetary implications for the Community,

14.Takes the view that the specific protocols planned for the

main areas of cooperation are the real instruments on which

implementation of the Charter rests; each protocol should

comprise:

- a description of the substance of the planned cooperation

programme,

- the duration of the programme and commitments;

15.Notes that, at the current stage of negotiations, efforts are

focused mainly on establishing a basic agreement covering,

inter alia, rules on the promotion and protection of

investment, 'non-discrimination', access to energy resources,

institutional and organizational issues, overall obligations

and the system proposed for the settling of disputes;

16.Reserves the right to consider the details of the text when

negotiations have reached a more advanced stage;

17.Takes the view that the Charter must be an example of

Community rather than intergovernmental cooperation, taking

the PHARE programme, which involves cooperation with partners

inside and outside Europe, as its model;

18.Considers that, since the issue here is an international

agreement which will be legally binding on the Community and

have financial implications for the budget, the European

Parliament must be consulted, as on any other agreement;

19.Approves the fact that plans have also been made to draw up

specific agreements for the following fields : energy

efficiency and environmental aspects, hydrocarbons, and

nuclear energy, including safety aspects;

20.Recalls however, the importance of the electricity sector,

and the growing use of natural gas, in particular the

interconnection of networks and the transfer of 'clean coal'

technologies and the more general issues of technology

transfers and measures to promote innovation, and hopes that

specific agreements in these fields will be drawn up;

21.Calls for the permanent secretariat responsible for

monitoring the work on the Charter to be placed under the

control of the Commission, thus enabling that body to submit

periodic information reports to the European Parliament;

22.Instructs the committee responsible to monitor the current

negotiations and draw up, possibly, a report on the basic

agreement provided for by the Charter;

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23.Instructs its President to forward this resolution to the

Council, the Commission, the governments and parliaments of

the Member States, and the States taking part in negotiations

on the Charter.

7(b) A3-0309/91

RESOLUTION

on general principles of Pan-European energy cooperation, energy

cooperation with the USSR and electricity supplies to Central and

Eastern European countries

The European Parliament,

- having regard to the motions for resolutions by:

Mr Seligman on Energy for East, West and Central Europe (B3-

2179/90);

Mr Desama on electricity supplies to Central and Eastern

European countries (B3-0011/91),

- having regard to the report of the Committee on Energy,

Research and Technology and the opinions of the Committee on

Budgets and the Committee on External Economic Relations (A3-

0309/91),

A. having regard to the profound and rapid change occurring

throughout Europe,

B. having regard to the lowering of internal barriers in the

completion of the single market in Europe, the establishment

of open market-oriented economies in Central and Eastern

Europe, and the agreements on economic union among the states

of the USSR,

C. having regard to future association agreements between the

Community and certain Central and Eastern European countries,

D. having regard to the environmental challenges facing the

European continent, particularly the countries of Central and

Eastern Europe, in part as a result of its heavy energy use,

E. having regard to the increasing responsibilities thrust upon

democratic systems as a result of these changes, and the need

to ensure democracy's secure and stable development in all

parts of Europe,

F. whereas sustainable economic growth, respect for our common

environment, rising living standards, expanding employment,

more job opportunities, and efficient use of economic

resources will contribute to a better quality of life for

all, and whereas energy use is the key to this,

G. whereas well-established inter- and intra-regional energy

cooperation will contribute to a secure and stable climate,

in which such economic development and political democracy

may burgeon,

H. having regard to the serious discrepancies in technological

progress and skills between the countries of Europe, and the

essential role this progress and these skills play in such

economic development,

I. having regard to the specific nature of the energy sector,

given the laws of the market economy: public service

functions requiring rationalization of investments and very

long-term market control,

J. whereas European Community energy research and technological

development activities aim to meet requirements as part of a

form of economic development, which will help to reduce

regional inequalities through the pooling of competences and

common strategies in key sectors, and whereas the

participation of other European countries in these activities

will help achieve such economic development,

K. having regard to the Ukrainian Government's decision to close

the Chernobyl nuclear power station after the latest incident

involving No. 3 reactor,

As regards general principles

1. Welcomes measures encouraging energy cooperation between

countries in continental Europe on the following principles:

- recognized mutual advantage overall for each participant;

- non-discrimination between all participants in such

cooperation;

- measures to meet the long-term energy needs of each country

as a priority objective in order to ensure their economic

and social development and an efficient and fair system of

distribution to all consumers;

- costs, prices and exchanges, taking account of the specific

nature of the energy sector and established market economy

principles;

- the greater extent of exchange of goods, services and

capital between all participants;

- a clearer definition of 'non-discriminatory provisions'

based on the principles of international law and practice;

- national sovereignty over natural resources, in accordance

with international law and the requirements of Pan-European

energy cooperation;

- regulation permitting protection of the environment, of

investment and the transfer of royalties and profits, on the

basis of international law and practice and in accordance

with any special agreements being concluded in this area;

As regards instruments for cooperation

2. Considers that such cooperation must comprise the following:

the improvement of human capital, involving the extended use

of information and data collection, analysis and

dissemination; management, training and technical assistance;

transfer of technology; industrial and interregional

cooperation, with administrative support, including planning

and evaluation; joint ventures; and adequate financial means

on soft terms;

Considers that, for this purpose, it is necessary for the

signatory countries to undertake to ensure the transparency

of all (legal, administrative, regulatory and technical)

provisions concerning investment and commercial and

exploitation rights in the energy sector;Considers, moreover, that the Community must offer all

possible collaboration in the form of technologies and

technicians to help the governments of the Republics which,

like the Ukrainian Government, have decided or may decide to

close immediately graphite-gas nuclear power stations (such

as Chernobyl);

As regards priorities

3. Believes that this cooperation should have as its priorities,

in this order:

- greater continent-wide security of supply, respecting common

norms, and the general reduction of risks in energy

production, distribution and use,

- stricter energy production and use standards to be respected

by all parties, whatever form of energy is being considered,

and therefore attribution of responsibilities to appropriate

executive, legislative and judicial organs, to ensure the

respect of the minimum necessary regulation,

- greater savings of limited energy resources in all parts of

the continent, with agreed and regularly reviewed savings

targets,

- reducing environmental impact of energy production,

distribution and use, by giving priority to the development

of non-pollutant or relatively non-pollutant forms of energy

and energy management by agreeing emission targets,

insisting on environmental impact assessment on new

developments, encouraging long-term pricing of energy

products, agreeing appropriate levies on polluting emissions

and wastes, and ensuring safe final storage of waste from

energy production processes,

- greater exploitation of renewable energies, with advantage

given to such forms, in creating new energy production

capacity, through fiscal and regulatory means,

- significant long-term financial commitments by private and

public companies and utilities, with the know-how and

skills, to the renovation and restructuring of the energy

supply, distribution and consumption systems throughout the

continent, but particularly in Central and Eastern Europe,

and in the electricity sector, between those countries and

the countries of the UCPTE (Union for the Coordination of

Production and Transmission of Electricity),

- wider choice of supply sources and of types of energy raw

materials and measures to encourage cooperation between

national undertakings to facilitate inter- and intra-

regional energy trade,

- the introduction or improvement of effective energy

production and distribution systems in each country in order

to meet real national and regional development needs on a

lasting basis,

- improved use of resources through the extension of gas and

electricity grids to all the regions of Europe,

As regards electricity supplies

4. Calls on the Commission to take all necessary measures

urgently to bring about adequate connection between the UCPTE

grids and those of Eastern Europe, to allow significant and

rapid transfers of electricity, when necessary, to assure

standardized frequency variation, and to agree on common

rules of operation, through consultation between the

distributors;

5. Requests that the Commission provide financial and technical

support for this connection, and the associated modernization

of the grids, ensuring supply security, through the PHARE

programme and associated actions, and then subsequently

according to recommendations after a complete review,

conducted under the auspices of the Commission and the

participating states, the results of which will be

communicated to Parliament and the Council, before

recommendations are made;

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6. Instructs its President to forward this resolution to the

Commission, Council, European Political Cooperation, the

Secretariat of the Conference of the European Energy Charter,

and the parliaments of the Member States.