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Europaudvalget 2010-11 (1. samling)
Det Europæiske Råd 4/2-11 Bilag 3
Offentligt

COUNCIL OF

THE EUROPEAN UNION

Brussels, 25 January 2011

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CO EUR-PREP 2

REVISED NOTE

from:

The General Secretariat of the Council

to:

COREPER/General Affairs Council

Subject:

European Council (4 February 2011)

- Draft conclusions

In accordance with article 2(3)(a) of the Council's Rules of Procedure, delegations will find

attached the draft conclusions prepared by the President of the European Council, in close

cooperation with the member of the European Council representing the Member State holding the

six-monthly Presidency of the Council and with the President of the Commission.

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Beyond the immediate action required to tackle the most pressing challenges posed by the

economic and financial crisis, it is important to continue laying solid foundations for a

sustainable and job-creating growth. This is the purpose of the Europe 2020 Strategy for jobs

and growth adopted last June. Today, the European Council focused on two sectors – energy

and innovation – which are key to Europe’s future growth and prosperity. It agreed on a

number of priority actions whose implementation will contribute much to enhancing growth

and job creation as well as promoting Europe’s competitiveness.

ENERGY

Safe, secure, sustainable and affordable energy contributing to European competitiveness

remains a priority for Europe. Action at the EU level can and must bring added value to that

objective. Over the years, a lot of work has been carried out on the main strands of an EU

energy policy, but more action is needed, as set out below.

An integrated and interconnected market

The EU needs a fully functioning and integrated internal energy market. Legislation on the

internal energy market must therefore be speedily and fully implemented by Member States in

full respect of the agreed deadlines. Council and European Parliament are invited to work

towards the early adoption of the Commission's proposal for a Regulation on energy markets

integrity and transparency.

The internal market should be completed by 2014 so as to allow gas and electricity to flow

freely. This requires in particular that in cooperation with ACER national regulators and

transmission systems operators step up their work on market coupling and guidelines and on

network codes applicable across European networks. Member States, in liaison with European

standardization bodies, are invited to accelerate work with a view to adopting technical

standards for electric vehicle charging systems by mid-2011 and for smart grids and meters by

the end of 2012. The Commission will regularly report on the functioning of the internal

energy market, paying particular attention to consumer issues in line with the Council

conclusions of 3 December 2010.

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As set out in the Commission's communication on infrastructure priorities, major efforts are

needed to modernise and expand Europe's energy infrastructure and to interconnect markets

across borders. This is crucial to ensure that solidarity between Member States will become

operational, that alternative supply/transit routes and sources of energy will materialise and

that renewables will develop and compete with traditional sources. The Commission intends

to propose an initiative to streamline and improve authorisation procedures, while respecting

national competences and procedures, for the building of new infrastructure. The various

initiatives undertaken by Member States to integrate markets and networks at a regional level

as well as those outlined in the Commission communication contribute to the objective and

deserve support. No EU member State should remain an energy island after 2015 or see its

energy security jeopardized by lack of the appropriate connections.

The bulk of the important financing costs for infrastructure investments will have to be

delivered by the market, with costs recovered through tariffs. Particular attention should be

given to the setting of tariffs at levels consistent with financing needs and to the appropriate

cost allocation for cross-border investments. However, some projects that would be justified

from a security of supply/solidarity perspective, but are unable to attract enough market-based

finance, will require some limited public finance to leverage private funding. Such projects

should be selected on the basis of clear and transparent criteria. The Commission is invited to

submit by June 2011 to the Council figures on the investments likely to be needed and

suggestions on how to respond to financing requirements .

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Energy efficiency and Renewables

Investments in energy efficiency enhance competitiveness and support security of energy

supply and sustainability at low cost. The 2020 20% energy efficiency target, which is

presently not on track, must be delivered. This requires determined action to tap the

considerable potential for higher energy savings of buildings, transport and products and

processes. As of 1 January 2012, all Member States should include energy efficiency

standards consistent with the EU headline target in all public procurement for new public

buildings and services. The Council is invited to promptly examine the upcoming

Commission proposal for a new Energy Efficiency Plan, setting out in more detail a series of

policies and measures across the full energy supply chain. It will review the implementation

of the EU energy efficiency target by 2013 and consider further measures if necessary.

The Commission is invited to strengthen its work with Member States on the implementation

of the Renewable Energy Directive, in particular as regards stable national support schemes

and cooperation mechanisms.

The EU and its Member States will promote investment in renewables and safe and

sustainable low carbon technologies and focus on implementing the technology priorities

established in the European Strategic Energy Technology plan. The Commission is invited to

table new initiatives on smart grids, energy storage, sustainable bio fuels and energy saving

solutions for cities.

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Energy and external relations

10.

There is a need for better coordination of EU and Member States' activities with a view to

ensuring consistency and coherence in the EU’s dealings with key producer, transit, and

consumer countries. The Commission is invited to submit by June 2011 a communication on

energy security and international cooperation aimed at further improving the consistency and

coherence of the EU's external action in the field of energy. The Member States are invited to

inform from 1 January 2012 the Commission of all new and existing bilateral energy

agreements with third countries as well as aggregated information on private contracts; the

Commission will make this information available to all other Member states in an appropriate

form, having regard to the need for protection of commercially sensitive information. The

High Representative is invited to take fully account of the energy security dimension in the

work on the Union's strategic partnerships.

11.

The EU should develop mutually beneficial energy partnerships with key players and around

strategic corridors, covering a wide range of issues, including regulatory approaches, on all

subjects of common interest, such as energy security, low carbon technologies, energy

efficiency, investment environment and promoting high standards for nuclear safety. It should

encourage neighbouring countries to embrace its relevant internal energy market rules,

notably by extending and deepening the Energy Community Treaty and promoting regional

cooperation initiatives. It should also develop safeguards to provide a level playing field for

power producers. The Commission is invited to continue its efforts to facilitate the

development of strategic corridors for the transport of large volumes of gas such as the

Southern Corridor.

12.

As a start, work should be taken forward as early as possible concerning a partnership with

Russia, as part of the negotiations on the post-PCA process and in the light of on-going work

on the Partnership for Modernization and the Energy Dialogue.

13.

The EU will cooperate with third countries in order to reduce the volatility of energy prices

and will take this work forward within the G20.

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Long term perspective

14.

The European Council looked forward to the elaboration of a low carbon 2050 strategy

providing the framework for the longer term action in the energy and other related sectors.

Reaching the objective of reducing greenhouse gas emissions by 80-95% by 2050 will require

a revolution in energy systems, which must start now. Due consideration should be given to

fixing concrete intermediary stages towards reaching the 2050 objective. The European

Council will keep developments under review on a regular basis.

II.

15.

INNOVATION

Investment in research, technology and innovation is a key driver of growth, and innovative

ideas that can be turned into new marketable products and services help create growth and

quality jobs. The European Council called for the implementation of a strategic and integrated

approach to boosting innovation, to the benefit of citizens, companies and researchers. It will

monitor progress in the framework of the follow up to the Europe 2020 Strategy.

16.

In this connection, the European Council noted the trends and developments revealed by the

current Commission innovation scoreboard. It invited the Commission to quickly develop a

single indicator to allow a better monitoring of progress in innovation. It will keep

developments concerning the above under review.

Tackling the grand societal challenges

17.

Innovation contributes to tackling the most critical societal challenges we are facing. Europe’s

expertise and resources must be mobilized in a coherent manner and synergies between the

EU and the Member States must be fostered in order to ensure that innovations with a societal

benefit get to the market quicker. The launch of the pilot Innovation Partnership on active

and healthy ageing is an important step in that context. Regular monitoring will be necessary

in order to reach long term objectives as well as concrete goals to be fixed year by year.

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Completing the European Research Area

18.

Europe needs a unified research area to attract talent and investment. Remaining gaps must

therefore be addressed rapidly and the European Research Area completed by 2014 to create a

genuine single market for knowledge, research and innovation. In particular, efforts should

be made to improve the mobility and career prospects of researchers, the mobility of graduate

students and the attractiveness of Europe for foreign researchers. Furthermore, information

about publicly financed R&D should be better disseminated, notably through the

establishment of an inventory of EU-funded R&D, linked to similar inventories of R&D

programmes funded at national level.

Improving framework conditions for innovative companies

19.

Private investment in innovative products and services should be encouraged, in particular by

improving framework conditions. In this regard, the Commission is invited to:

make proposals to accelerate, simplify and modernize standardization procedures,

notably to allow turning industry developed standards into European standards under

certain conditions;

provide guidance on the application of the Directives on public procurement; more

generally public procurement should be better geared to creating greater demand for

innovative goods and services;

conduct a mid term review of the relevant State aid frameworks during 2011;

explore options for setting up an intellectual property rights valorisation instrument at

the European level, in particular to ease SMEs' access to the knowledge market and to

report back to the Council by the end of 2011;

make rapid progress in key areas of the digital economy to ensure the creation of the

Digital Single Market by 2015, including the promotion and protection of creativity, the

development of e-commerce and the availability of public sector information.

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20.

Every effort should be pursued to lift remaining legal and administrative obstacles to the

cross-border operation of venture capital. The Commission is invited to present proposals for

putting in place an EU wide venture capital scheme building on the EIF and in cooperation

with national operators, as well as for scaling up the Risk Sharing Finance Facility and for

assessing how best to meet the needs of fast growing innovative companies through a market-

based approach. The Commission is also invited to explore the feasibility of a Small Business

Innovation Research Scheme in order to support young innovative companies, which could be

managed on the model of the European Research Council.

Prioritizing public support

21.

In conducting fiscal consolidation, Member States should give priority to sustainable growth-

friendly expenditure in areas such as research and innovation, education and energy.

22.

Such efforts should be coupled with clear reform measures aimed at boosting the

effectiveness of Member States’ research and innovation systems. At national level, Member

States should make full use of the option of devoting up to 50% of ETS revenue to finance

climate-related innovative projects. They should also improve the use of existing Structural

Funds allocated to research and innovation projects.

23.

It is crucial that EU instruments aimed at fostering R&D&I be simplified in order to facilitate

their take up by the best scientists and the most innovative companies, in particular by

agreeing between the relevant institutions a new balance between trust and control and

between risk taking and risk avoidance. The Commission is invited to make proposals by mid

2011, ensuring that the full range of research and innovation financing instruments work

together within a common strategic framework. The development of financing mechanisms

adequate for the financing of major European projects that are important drivers for research

and innovation should be explored. It is more than ever crucial to improve the efficiency of

public expenditure at national and EU levels. In this connection, the simplification of the

financial regulation should be adopted by the end of the year in order to ensure effective

delivery mechanisms for EU policies.

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