EU energy ministers gave cautious backing on 14 March to proposals for a common EU energy policy ahead of a summit that is set to formally endorse the new strategy at the end of the month.
The ministers said this "New Energy Policy for Europe" should contribute "in a balanced way to security of supply, competitiveness and environmental sustainability" as the three pillars of the new policy.
They also insisted that the new policy should fully respect member state sovereignty over primary energy sources and choice of energy mix.
The key elements of the new policy include:
- developing a common foreign trade policy approach vis-à-vis the EU's main suppliers. This includes a reinforced EU-Russia energy dialogue and ensuring Russia ratifies the Energy Charter Treaty to "improve the investment climate in Russia and transit countries"
- intensifying diversification in terms of supply and transit routes along an East-West and South-North axis. This includes speeding up construction of new LNG terminals to diversify gas supplies
- increasing energy as a priority in EU research, development and deployment budgets (RD&D) especially within the 7th Framework Programme for research (FP7). They said R&D should come in support of indigenous energy sources, which include renewables as well as nuclear
- improving interconnections between member states and transparency on energy markets to boost competition. The ministers supported regional markets as a first step to completing an EU-wide internal market for electricity
On the environmental front, ministers asked the Commission to produce an "ambitious" but "realistic" action plan for energy efficiency before the end of 2006. They also voiced support for developing a long term strategy for renewable energies but did not give further indication on objectives or targets except for their desire to see the EU Biomass Action Plan swiftly implemented.
Ministers also called for a timely review of the EU CO2 emissions trading scheme to take greater account of competitiveness concerns including those of energy-intensive sectors such as the metal and chemical industries.
