Written Statement of 21 May 2003

TRADE AND INDUSTRY

  Energy Council
  The Minister for Energy and Construction (Mr. Brian Wilson)
  I represented the UK at the Energy Council, Brussels on 14 May 2003.

  The Council considered several matters of interest for the UK. Chief among these were the Cogeneration Directive, the
  follow-up to the World Summit on Sustainable Development and the Commission's proposals and draft directives on EU level oil and gas stocks and security of supply.

  A compromise text for a Directive on Cogeneration (combined heat and power), which reflects UK objectives, was adopted after reserves (including the UK) were lifted. The European Commission described the important points as being the need to concentrate on high-quality schemes delivering good energy savings with safeguards against market distortions. Whilst Member States agreed to the text, some signalled a desire for a more ambitious measure at a later stage.

  The debate on the follow-up to the World Summit on Sustainable Development (WSSD) centred on whether existing Community measures were sufficient to meet targets for greenhouse gas emissions, and on the long-term future of renewable energy. There was support for the outcome of the Johannesburg WSSD and recognition that the EU must take the lead in developing a sustainable energy policy. Most felt that the existing Community instruments would need assessing in about one year. On the future of renewables, the general view was that there needed to be a broadening of the technological base: wind technology alone was unlikely to deliver all the savings needed; effort was needed to develop biomass, solar and clean coal technology.

  The Commission thought that, whereas the EU appeared to be in the lead on energy efficiency, progress in the EU on renewables had been good, but could be better; and stressed the need for realism towards developing countries in respect of their capacity to switch to non-fossil fuels along with the need for developed countries to provide technological help to discourage growth in fossil fuel use.

  The UK said that the main need was for greater use of market-based mechanisms to incentivise investments in more novel forms of renewable energy such as wave and tidal power, biomass and solar. The UK underlined the need to encourage development of cleaner coal technology—particularly relevant to developing countries, with whom dialogue should be stepped up.

  On oil stocks, most Member States opposed the Commission's proposals to increase emergency oil stocking levels and give the Commission a greater role
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  in co-ordinating a response to disruption of world oil supplies. They shared the UK view that oil is a global market, that any response to disruption needs to be coordinated on a global basis, and that only the International Energy Agency (IEA) can do this. Recent events had shown that the existing LEA arrangements worked well and there was no need to change them.

  On gas stocks, most opposed the Commission's proposals, giving the Commission wide new powers over the use of gas stocks in the event of potential supply disruptions. The UK saw merit in increased transparency and minimum security standards, provided they did not result in additional costs. But long-term contracts were a matter for companies—subject to EU competition rules. Some accession states (present for the first time at an Energy Council) endorsed the need for common measures on supply security, but expressed concern over the cost of larger stocks.

  Discussion on International Energy Relations focused on the EU/Russia dialogue and the energy forum scheduled for Amsterdam in May 2004. Delegates emphasised the need to prepare carefully for the EU/Russia Summit on 31 May in St. Petersburg, and the need to promote a consumer/producer dialogue and to encourage Russia to accede to the Kyoto protocol and Energy Charter Treaty.

  Following agreement on a Commission request for the inclusion of a reference to the negotiating mandate for a nuclear co-operation agreement with Russia currently in the Council Working Group, Council conclusions were adopted.

  Italy concluded by indicating that it would take forward the work of the Greek Presidency. Its priorities will be EU/Russia, Euro-Med and South East Europe/Balkans relations, particularly the need to develop further gas supply partnerships.

FOREIGN AND COMMONWEALTH AFFAIRS

  Council of the European Union
  The Minister for Europe (Mr. Denis MacShane)
  The forthcoming business in the Council of the European Union from June to December 2003 is as follows:

  Date

  Location

  Event

  JUNE

  2

  Brussels

  EUROGROUP

  2–3

  Brussels

  Employment, Social Policy, Health and Consumer Affairs

  2–3

  Alexandroupolis

  Development Co-operation (Ministerial Informal)

  3

  Brussels

  ECOFIN

  4

  Brussels

  Meeting of the Presidium

  5–6

  Brussels

  Convention Plenary

  5–6

  Brussels

  Transport, Telecom and Energy Council

  5–6

  Brussels

  Justice and Home Affairs Council

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  Date

  Location

  Event

  6

  Rhodes

  Public Administration (Ministerial Informal)

  9

  London

  Chancellor's statement to the House of Commons on the UK's euro decision

  11

  Brussels

  Meeting of the Presidium

  11–12

  Brussels

  Agriculture and Fisheries Council

  12–13

  Brussels

  Convention Plenary

  13

  Brussels

  Environment Council

  17–18

  Luxembourg

  General Affairs and External Relations

  20

  Halkidiki

  European Council

  21

  Halkidiki

  Zagreb 11 Summit

  24

  Brussels

  General Affairs and External Relations (GAERC)

  JULY

  2–3

  Rome

  Research (Ministerial Informal)

  4–5

  Naples

  Transport Infrastructure (Ministerial Informal)

  6

  Palermo

  Trade (Ministerial Informal)

  11–12

  Varese

  Employment and Social Policy (Informal Council)

  15–16

  Brussels

  ECOFIN

  17–18

  Treviso

  EU Employment Committee (Informal)

  18–20

  Montecatini

  Energy and Environment (Ministerial Informal)

  22–23

  Brussels

  Agriculture and Fisheries Council

  22

  Brussels

  General Affairs and External Relations

  24–25

  Milan

  European Conference on Competitiveness (Informal Ministerial)

  25–26

  Rome

  European Conference on Competitiveness (Informal Ministerial)

  25–26

  Verona

  Education (and Research?) (Ministerial Informal)

  AUGUST

  No meetings planned

  SEPTEMBER

  3–4

  Viterbo

  Telecommunications (Ministerial)

  5–6

  Riva del Garda

  Gymnich (Informal Foreign Affairs)

  7–9

  Taormina

  Agriculture (Informal Council)

  12–13

  Stresa

  ECOFIN (Informal Council)

  19–20

  Rome

  Justice and Internal Affairs (Informal Council)

  22–23

  Brussels

  Competition (Internal Market, Industry and Research)

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  Date

  Location

  Event

  26–27

  Erice

  Community regional Cohesion Policy (Ministerial Informal)

  29–30

  Brussels

  General Affairs and External Relations

  29–30

  Brussels

  Agriculture and Fisheries Council

  OCTOBER

  2–3

  Brussels

  Justice and Internal Affairs

  3–4

  Rome

  Defence (Ministerial Informal)

  7

  Brussels

  ECOFIN

  9–10

  Brussels

  Transport, Telecom and Energy Council

  13–14

  Brussels

  General Affairs and External Relations Council (GAERC)

  13–14

  Brussels

  Agriculture and Fisheries Council

  16–17

  Brussels

  European Council

  20–21

  Brussels

  Employment, Social Policy, Health and Consumer Affairs Council

  27

  Brussels

  Environment Council

  NOVEMBER

  4

  Brussels

  ECOFIN

  6

  Brussels

  Justice and Internal Affairs (Informal Council—to be confirmed)

  17–18

  Brussels

  General Affairs and External Relations

  17–18

  Brussels

  Agriculture and Fisheries Council

  24–25

  Brussels

  ECOFIN

  24–25

  Brussels

  Education, Youth and Culture Council

  27–28

  Brussels

  Justice and Internal Affairs (Informal Council)

  DECEMBER

  1–2

  Naples

  Euromed Meeting

  1–2

  Brussels

  Employment, Social Policy, Health and Consumer Affairs

  1–12

  Milan

  Climate and sustainable Development Conference

  4–5

  Brussels

  Transport, Telecom and Energy Council

  4–5

  Rome

  Closing Conference for the European Year of the Disabled

  8–9

  Brussels

  General Affairs and External Relations Council (GAERC)

  12–13

  Brussels

  European Council

  15–17

  Brussels

  Agriculture and Fisheries Council

  16

  Brussels

  ECOFIN

  17–18

  Brussels

  Environment Council