Explanatory Memorandum to COM(2009)35 - Programme to aid economic recovery by granting Community financial assistance to projects in the field of energy - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2009)35 - Programme to aid economic recovery by granting Community financial assistance to projects in the field of energy. |
|---|---|
| source | COM(2009)35  |
| date | 28-01-2009 |
- Grounds for and objectives of the proposal
The proposal responds to the sharp downturn faced by the European economy in the wake of the financial crisis and to shortcomings in the Community's security of energy supply illustrated by the gas crisis. It implements the European Economic Recovery Plan (COM (2008) 800) endorsed by the European Council of 11-12 December 2008. Together with the proposals in the area of broadband and rural development, it specifically responds to the request of the European Council to provide a detailed and balanced list of actions.
- General context
The financial crisis began to spread to the real economy in autumn 2008. The gas crisis, involving lack of delivery to the Community of gas produced in Russia, emerged in December 2008. The economic crisis and the gas crisis which has shown that energy interconnections in Europe are not sufficient, both pose structural problems for the European economy and the welfare of Europe's citizens. A comprehensive Recovery Plan is needed and is being put in place; this proposal for a financial stimulus to key parts of the energy sector is an essential element of the Plan.
- Existing provisions in the area of the proposal
The energy infrastructure part of the Trans-European Networks programme aims to catalyse the construction of cross-border gas and electricity interconnections; that is also the aim of one of the three sub-programmes of this proposal. The list of projects established in this Regulation is complementary to the Guidelines for trans-European energy networks (European Parliament and Council Decision no. 1364/2006 of 6 September 2006).
- Consistency with the other policies and objectives of the Union
The proposal aids projects in the field of energy policy as a key part of the EU's wider objective of promoting economic progress and sustainable development. It is consistent with the objectives of EU energy policy as set out in the Second Strategic Energy Review, notably in increasing security of energy supply and reducing greenhouse gas emissions.
The Commission has taken into account, when selecting the projects, multiple criteria that in particular refer to maturity of projects, coherent geographical distribution, European interest as well as European added value and technological progress. All of these criteria are in accordance with the energy policy developed by the EC during the past years as well as the actual context of the ongoing financial perspectives. This approach will most likely be supported in future financial perspectives.
2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
- Consultation of interested parties
The urgency of the economic crisis calls for the fastest possible action to send a signal to investors. This means there has not been time for a consultation process.
- Collection and use of expertise
External expertise was not used.
- Impact assessment
The urgency of the economic crisis calls for the fastest possible action, in line with the conclusions of the European Council.
This means there has not been time for an impact assessment.
- Summary of the proposed action
It is proposed to undertake a programme of investment measures during 2009 and 2010 comprising sub-programmes in the following fields:
- gas and electricity interconnection projects (financial envelope: EUR 1750 million);
- offshore wind projects (EUR 500 million);
- carbon capture and storage (EUR 1250 million).
- Legal basis
The legal basis will be Article 156 of the Treaty for the sub-programme for gas and electricity interconnection projects, and Article 175 for the remainder of the action.
- Subsidiarity principle
The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Community.
The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s):
- A coherent and effective response to the economic crisis requires a coordinated approach to investment at EU level, involving EU as well as national resources.
- Many of the projects identified in the Regulation are of transnational character, notably in the offshore wind and interconnection sub-programmes.
- The encouragement of interconnection, renewable energy and carbon capture and storage has recently been confirmed as a common objective of the Union.
- All the sub-programmes, and notably that for carbon capture and storage, are designed to maximise opportunities for replication across Member States.
- Action by Member States alone would prevent the achievement of a coordinated approach; completion of projects with transnational significance is essential to meet the Union's objectives.
Community action will better achieve the objectives of the proposal for the following reason(s):
- EU action will allow these objectives to be achieved.
- EU action is able to complement national action to attain the overall objectives of the Union, reflecting the transnational character of the economic crisis and of the challenge of energy security.
- The scope of the proposal is limited to such projects.
The proposal therefore complies with the subsidiarity principle.
- Proportionality principle
The proposal complies with the proportionality principle for the following reason(s):
- Since the proposal establishes a programme for financial assistance it can only take the form of a regulation.
- The financial burden is proportionate to the aim of introducing a major stimulus to the European economy and addressing the challenge of energy security.
- The administrative burden is minimised by the choice to focus on a few large scale projects.
- Choice of instruments
Proposed instruments: regulation.
Other means would not be adequate for the following reason(s):
- Since the proposal establishes a programme for financial assistance it can only take the form of a regulation.
A financial envelope of €3,500 million is foreseen in total for the three sub-programmes, consisting of €1,500 million for 2009 and €2,000 million for 2010.
The main volume of payments will be made between 2009 and 2012 with the last payments, notably for carbon capture and storage projects, foreseen for 2014/2015.