REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy
27.10.2010 - (COM(2010)0283 – C7‑0139/2010 – 2010/0150(COD)) - ***I
Committee on Industry, Research and Energy
Rapporteur: Kathleen Van Brempt
DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy
(COM(2010)0283 – C7‑0139/2010 – 2010/0150(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
– having regard to the Commission proposal to Parliament and the Council (COM(2010)0283),
– having regard to Article 294(2) and Article 194(1)(c) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7‑0139/2010),
– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
– having regard to the opinion of the European Economic and Social Committee[1],
– after consulting the Committee of the Regions,
– having regard to the undertaking given by the Council representative by letter of 22 October 2010 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,
– having regard to Rule 55 of its Rules of Procedure,
– having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Budgets (A7‑0246/2010),
1. Adopts its position at first reading hereinafter set out;
2. Takes note of the Council statement annexed to this resolution;
3. Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;
4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
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AMENDMENTS BY PARLIAMENT* |
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to the Commission proposal |
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Regulation of the European Parliament and of the Council amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy |
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THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 194(1)(c) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee[2],
After consulting the Committee of the Regions,
Acting in accordance with the ordinary legislative procedure[3],
Whereas:
(1) Regulation (EC) No 663/2009 of the European Parliament and the Council[4] established the European Energy Programme for Recovery (EEPR) to aid economic recovery by granting a financial envelope of EUR 3.98 billion for 2009 and 2010.
(2) This Regulation should be without prejudice to the aim of granting as much of the financial envelope of EUR 3.98 billion as possible by the end of 2010 to the sub-programmes referred to in Chapter II of Regulation (EC) No 663/2009. However, it has been established that part of that amount will not be committed under those sub- programmes.▌
(3) In the spirit of the Europe 2020 strategy for sustainable growth and jobs, and in line with the EU climate and energy package and the 2006 Action Plan for Energy Efficiency, the development of further renewable energy sources and the promotion of energy efficiency would contribute to green growth, building a competitive and sustainable economy, and tackling climate change. By supporting those policies, Europe will create new jobs and green market opportunities, thereby fostering the development of a competitive, secure and sustainable economy. Cooperation among the various tiers of government ("multi-level governance") is essential in this context.
(4) Providing increased financial incentive is a key element in lowering the barriers that high up-front costs represent and in stimulating sustainable energy improvements. A dedicated financial facility (hereinafter "the facility") should therefore be created to use the funding under Chapter II of Regulation (EC) No 663/2009 which cannot be committed by the end of 2010. The creation of the facility should be considered in the light of the Sustainable Energy Financing Initiative proposed by the Commission. The facility should support the development of energy efficiency and renewable energy projects and facilitate the financing of investment projects related to energy efficiency and renewable energy by local, regional and national public authorities, in particular in urban settings.In this process, attention should be paid to synergies with other financial resources available in the Member States, such as the Structural and Cohesion Funds, the European Local Energy Assistance (ELENA) Facility and the European Regional Development Fund as amended by Regulation (EC) No 397/2009[5], in order to avoid overlaps with other financial instruments.
(5) Investment support in sustainable energy can be most effective and beneficial when targeted at local level. However, in duly justified cases it may be more effective to aim at the national level, e.g. for reasons related to the availability or functioning of relevant administrative structures.
(6) To maximise the impact of the Union funding in the short term, the facility should be managed by one or more financial intermediaries such as International Financial Institutions (IFIs). The selection of such financial intermediaries should take place on the basis of their demonstrated ability to use the funding in the most efficient and effective way, with the objective of maximising the participation, within the shortest possible time, of other public and private investors and of achieving the highest leverage between the Union funding and the total investment with a view to raising significant investments in the Union. However, in times of financial and economic crises which have a particular adverse effect on the finances of local and regional authorities, it should be ensured that the difficult budgetary situation of those authorities does not hinder them from being able to access the funding.
(7) In compliance with Regulation (EC) No 663/2009 investment projects should be financed under the facility only if they have a rapid, measurable and substantial impact on economic recovery within the Union, increased energy security and the reduction in greenhouse gas emissions. Such investment projects contribute to green growth, the development of a competitive, connected, sustainable and green economy, as well as to the protection of employment, job creation and tackling climate change, in accordance with the "Europe 2020" objectives. The criteria set out in Regulation (EC) No 663/2009 should apply to the selection and eligibility of the projects financed under the facility. The geographical balance of the projects should also be taken into account as an essential element, to ensure the impact of this Regulation on economic recovery throughout the Union, and in recognition of the fact that in some Member States, projects have not or have only partially been financed under Chapter II of Regulation (EC) No 663/2009.
(7a) In view of the required short-term economic impact of this Regulation, the time between receipt of an application for a project and the final decision thereon should not exceed six months.
(8) ▌Individual legal commitments implementing budgetary commitments under Chapter IIa should be made by 31 March 2011.
(8a) The facility should not constitute a precedent with regard to the use of the Union budget and possible future funding measures, including in the energy sector, but should be considered rather as an exceptional measure adopted during a period of economic difficulty.
(9) Due to the urgent need to address the economic crisis, expenditure incurred under Chapter II of Regulation (EC) 663/2009 should be eligible as from 13 July 2009 as many applicants requested the eligibility of expenditure from the submission of the grant application in line with Article 112 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities[6] ("the Financial Regulation"). Expenditure incurred under Chapter IIa should be eligible as from 1 January 2011.
(10) Due to the urgent need to address the economic crisis▌, this Regulation should enter into force immediatelyon publication,
HAVE ADOPTED THIS REGULATION:
Article 1Amendments to Regulation (EC) No 663/2009
Regulation (EC) No 663/2009 is amended as follows:
(1) In Article 1, the following paragraph is added:
"This Regulation provides for the creation of a financial facility (hereinafter "the facility") to support energy efficiency and renewable energy initiatives"
(2) Article 3 is amended as follows:
(a) paragraph 2 is replaced by the following:
"2. Individual legal commitments under Chapter II implementing the budgetary commitments made in 2009 and 2010 shall be made by 31 December 2010. Individual legal commitments under Chapter IIa shall be made by 31 March 2011."
(b) the following paragraph is added:
"3. The financial intermediaries described in Annex II shall endeavour to allocate all the funding from the Union contribution available in the facility to investment projects and to technical assistance for renewable energy and energy efficiency projects by 31 March 2014. No funding from the Union contribution shall be allocated after that date. All funding from the Union contribution not allocated by the financial intermediaries by 31 March 2014 shall be returned to the Union budget. The funding from the Union contribution allocated to investment projects shall remain invested for a specified length of time that may not extend beyond 31 March 2034. The Union shall be entitled to returns on its investment in the facility throughout the lifetime of the facility, in proportion to its contribution to the facility and in accordance with its shareholder rights."
(3) The following Chapter is inserted:
"CHAPTER IIa FINANCIAL FACILITY
Article 21a
Funding that cannot be committed under Chapter II▌
1. Funding which according to Article 3(2) cannot be subject to individual legal commitments under Chapter II for an amount of EUR 146.344.644,50 ▌shall be for the facility referred to in the fourth paragraph of Article 1, for the purpose of developing suitable funding instruments in cooperation with financial institutions, so as to give a major stimulus to energy-efficiency projects and projects for the exploitation of renewable energy sources.
2. The facility shall be implemented in compliance with Annex II. Article 23(1) shall not apply to the facility.
3. The Union's exposure to the facility, including management fees and other eligible costs, shall be limited to the amount of the Union contribution to that facility set out in paragraph 1, and there shall be no further liability on the general budget of the Union."
(3a) Article 22 is deleted.
(4) Article 23 is amended as follows:
(a) in paragraph 2, the second sentence is replaced by the following:
"Expenditure incurred under Chapter II may be eligible as from 13 July 2009."
(b) the following paragraph is inserted:
"2a. Financial assistance given under Chapter IIa shall cover expenditure relating to investment projects and to technical assistance for renewable energy and energy efficiency projects incurred by the beneficiaries described in Annex II. Such expenditure may be eligible as from 1 January 2011."
(4a) Article 27 is amended as follows:
(a) the following paragraph is inserted:
"1a. By 30 June 2013 the Commission shall submit a mid-term evaluation report to the European Parliament and the Council on the measures taken under Chapter IIa focusing in particular on:
(a) the cost-effectiveness, leverage effect and additionality demonstrated by the facility;
(b) evidence of sound financial management;
(c) the extent to which the facility has achieved the objectives set out in this Regulation;
(d) the extent to which continued support under the facility for projects relating to energy efficiency and energy from renewable sources is required.
The mid-term evaluation report shall, if appropriate, and in particular if the Commission's assessment of the measures taken under Chapter IIa is positive, be accompanied by a legislative proposal for the continuation of the facility.";
(b) paragraph 3 is replaced by the following:
"3. The Commission shall present to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions an evaluation report on the results achieved by the EEPR and in accordance with Article 27(4) of the Financial Regulation.".
(4b) In Article 28, the following subparagraph is added:
"The report shall include information about all overhead costs related to the establishment and implementation of the facility set up under Chapter IIa."
(5) The Annex is renamed "Annex I" and the following Annex is added:
"Annex IIFinancial facility ▌
A. Implementation of the financial facility for sustainable energy projects
1. Scope of the facility
The financial facility (hereinafter "the facility") shall be used for the development of energy saving, energy efficiency and renewable energy projects and shall facilitate the financing of investments in those areas by ▌ local, regional and, in duly justified cases, national public authorities. The facility shall be implemented in accordance with the provisions on the delegation of budgetary execution tasks laid down in the Financial Regulation and its implementing rules.
The facility shall be used for sustainable energy projects, in particular in urban settings. This shall include, in particular, projects concerning:
(a) ▌public and private buildings incorporating renewable energy and/or energy efficiency solutions including those based on the usage of Information and Communication Technologies (ICT);
(b) investments in high energy efficient combined heat and power (CHP), including micro-cogeneration, and district heating/cooling networks, in particular from renewable energy sources;
(c) decentralised renewable energy sources embedded in local settings and their integration in electricity grids;
(d) microgeneration from renewable energy sources;
(e) clean urban transport to support increased energy efficiency and integration of renewable energy sources, with an emphasis on public transport, electric and hydrogen vehicles and reduced greenhouse gas emissions;
(f) local infrastructure, including efficient ▌lighting of outdoor public infrastructure including street lighting, electricity storage solutions, smart metering, and smart grids, that make full usage of ICT;
(g) energy efficiency and renewable energy technologies with innovation and economic potential using the best available procedures.
The facility may be also used to provide incentives and technical assistance as well as to raise the awareness of local, regional and national authorities so as to ensure optimal use of the Structural and Cohesion Funds, in particular in the areas of energy efficiency and renewable energy improvements in housing and other types of buildings. The facility shall sustain investment projects demonstrating an economic and financial viability, in order to refund the investments allocated by the facility and to attract public and private investments. Thus, the facility may, inter alia, include provisioning and capital allocation for loans, guarantees, equity and other financial products. Furthermore, up to 15 % of the funding referred to in Article 21a may be used to provide technical assistance to local, regional or national, authorities on the setting up of, and on the initial deployment phase of technology related to, energy efficiency and renewable energy projects.
2. Synergies
When granting financial or technical assistance, attention shall also be paid to synergies with other financial resources available in the Member States, such as the Structural and Cohesion Funds and the European Local Energy Assistance (ELENA) Facility, in order to avoid overlaps with other instruments.
3. Beneficiaries
The beneficiaries of the facility shall be public authorities, preferably at local and regional level, and public or private entities acting on behalf of those public authorities. ▌
B Cooperation with Financial Intermediaries
1. Selection and general requirements
The facility shall be set up in cooperation with one or more financial intermediaries, and shall be open to participation by appropriate investors. The selection of the financial intermediaries shall take place on the basis of their demonstrated ability to use the funding in the most efficient and effective way in accordance with the rules and criteria set out in this Annex.
The Commission shall ensure that the total amount of overhead costs related to the establishment and implementation of the facility, including management fees and other eligible costs invoiced by the financial intermediaries, remains as limited as possible, in line with best practice for similar instruments and whilst safeguarding the required quality of the facility.
The Union contribution to the facility shall be implemented by the Commission in accordance with the provisions set out in Articles 53 and 54 of the Financial Regulation.
The financial intermediaries shall comply with the relevant requirements on the delegation of budgetary execution tasks set out in the Financial Regulation and its implementing rules, in particular as regards procurement rules, internal control, accounting and external audit. No funding other than management fees or costs related to the establishment and implementation of the facility shall be made available to those financial intermediaries.
The detailed terms and conditions of the establishment and the framework conditions of the facility, including monitoring and control, shall be laid down in one or more agreements between the Commission and the financial intermediaries.
2. Availability of information
The facility shall make available online all information on programme management that is relevant for interested parties; this shall include notably application procedures, information on best practices and an overview of projects and reports.
C. Funding conditions and eligibility and selection criteria
1. Scope of financing
The facility shall be limited to the financing of:
(a) investment projects that have a rapid, measurable and substantial impact on economic recovery within the Union, increased energy security and the reduction in greenhouse gas emissions, and
(b) technical assistance for renewable energy and energy efficiency projects;
as set out in this Annex.
2. Factors to be taken into account
As regards the selection of projects, particular attention shall be paid to the geographical balance.
As regards the financing of investment projects, due attention shall be paid to reaching a significant leverage factor between the total investment and the Union funding in order to raise significant investments in the Union; however, the leverage factor for individual investment projects may vary, depending on a number of factors such as the actual size and type of a project and on local conditions including the size and financial capabilities of the beneficiary.
3. Conditions for public authorities' access to financing under the facility
Public authorities requesting financing for investment projects or technical assistance for renewable energy and energy efficiency projects shall comply with the following conditions:
(a) they have made, or are making, a political commitment to mitigate climate change, where appropriate including concrete objectives, for example relating to increasing energy efficiency and/or the use of energy from renewable sources;
(b) they are either working towards developing multi-annual strategies to mitigate climate change and, where appropriate, to attain their objectives, or are participating in a multi-annual strategy at local, regional or national level to mitigate climate change;
(c) they agree to be publicly accountable for the progress in their overall strategy.
4. Eligibility and selection criteria for investment projects financed under the facility
Investment projects financed under the facility shall comply with the following eligibility and selection criteria:
(a) the soundness and technical adequacy of the approach;
(b) the soundness and cost effectiveness of the financial package for the full investment phase of the action;
(c) the geographical balance of all projects covered by this Regulation;
(d) maturity, defined as reaching the investment stage, and incurring substantial capital expenditure as soon as possible;
(e) the extent to which lack of access to finance is delaying the implementation of the action;
(f) the extent to which funding from the facility will stimulate public and private finance;
(g) quantified socio-economic impacts;
(h) quantified environmental impacts.
5. Eligibility and selection criteria for technical assistance projects financed under the facility
Technical assistance projects financed under the facility shall comply with the eligibility and selection criteria mentioned under point 4 (a), (c), (e), (f) and (g)."
Article 2Entry into force
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Union.
Point (a) of Article 1(5) shall apply from 13 July 2009.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at,
For the European Parliament For the Council
The President The President
- [1] Opinion of 15 September 2010 (not yet published in OJ)
- [2] Opinion of 15 September 2010 (not yet published in the Official Journal).
- [3] Position of the European Parliament of ... (not yet published in the Official Journal) and decision of the Council of... .
- [4] OJ L 200, 31.7.2009, p. 31.
- [5] Regulation (EC) No 397/2009 of the European Parliament and of the Council amending Regulation (EC) No 1080/2006 on the European Regional Development Fund as regards the eligibility of energy efficiency and renewable energy investments in housing.
- [6] OJ L 248, 16.9.2002, p. 1.
EXPLANATORY STATEMENT
The original proposal for a European Energy Programme for Recovery
As a reaction to the financial crisis, the European Commission proposed in January 2009 to reallocate five billion Euros (from unspent EU funds) mostly to support projects in the field of energy. Under the plan, a total of €3.5 billion, later increased to €3.98 billion, would thus be devoted to energy projects, which would contribute to EU's economic recovery[1]. The proposed European Energy Recovery programme (EERP) aims at supporting (a) (mostly cross-border) gas and electricity infrastructure projects (so-called inter-connectors), (b) offshore wind parks, and (c) Carbon Capture and Storage projects (CCS).
Parliament's request to include energy efficiency and renewable projects
The European Parliament was of the opinion that the EERP should also include support measures for projects in the field of energy efficiency and renewable energy as initially foreseen by the Commission. Financing projects in the area of energy efficiency and energy from renewable sources will stimulate economic recovery, create job opportunities and help in the battle against climate change. These projects are most effective when implemented at municipal, regional and local level. Most local projects are characterised by a high workload and will thus create a large amount of new jobs, which are not subject to delocalisation. Moreover, a high leverage effect will be triggered and other important aspects, such as social integration and the attractiveness of the region will be positively influenced. That way, the involved municipalities may serve as role models for other communities, which can create a chain reaction of good practices throughout the European Union. Financing projects aimed at energy efficiency and renewable energy also support in a direct way the EU's efforts to achieve the targets of a 20% share of energy produced by renewable sources and 20% energy savings compared to business as usual scenarios. In particular, stimulating energy efficiency measures in the buildings sector, which consumes 40% of energy in the EU, would have an immediate positive effect not only on increasing energy efficiency, but also on supporting SME at local and regional level. In addition, this aid would be beneficial for the development of promising initiatives in the field of energy efficiency at local level such as the "Convenant of Mayors" and the "smart cities" initiative, which were affected by the current credit crunch and resulting lower budgetary income.
Even thought the Parliament did not succeed in convincing the Council in the trilogue negotiations to include a mechanism to allocate un-committed funds to energy efficiency and renewable sources of energy, the Commission took the Parliament's view on board by making a declaration attached to the final regulation to consider using any funds unspent by the end of 2010 for energy efficiency and renewable projects: "Should the Commission, when reporting in 2010 on the implementation of the Regulation under its Article 28, find that it will not be possible to commit by the end of 2010 a part of the funds foreseen for the projects listed in the annex to the Regulation, the Commission will propose, if appropriate and in a geographically balanced way, an amendment to the Regulation allowing for the financing of projects in the area of energy efficiency and renewable energy sources, in addition to the above initiatives, including eligibility criteria similar to those applying to projects listed in the Annex to this Regulation."
Implementation report and funds to be re-allocated
The report on the implementation of the EERP published on 27 April 2010[2] indicates that 115 million EURO could not be committed to the selected projects so far. Furthermore, there is a potential risk with respect to project implementation due to their technical, organisational, legal and financial complexity. If a project was not to meet all the conditions for being implemented, the Commission will assess the situation. Consequently, more funds might be available for reallocation by the end of 2010.
Setting-up a financial facility within the Sustainable Energy Financing Initiative
In order to reallocate the funds to projects in the field of energy efficiency and renewable projects, the Commission has presented on 31 May 2010 this proposal for amending the EERP. The proposal corresponds very much to the ideas of the Parliament expressed during the negotiations on the EERP. As regards the mechanisms for using the funds for energy efficiency and renewable measures, it foresees to allocate the unspent funds to a financial facility within the Sustainable Energy Financing Initiative. This facility will support the development of bankable energy efficiency and renewable energy projects, and, thereby, facilitating the financing of energy efficiency and renewable energy projects by municipal, local and regional public authorities. More specifically, a large number of projects with a high leverage effect can be supported by implementing innovative financial incentive schemes such as guarantees and soft loans with favourable interests and by financing technical assistance. The rapporteur believes that this mechanism should be set up by experienced financial intermediaries, and the Commission should start working on agreements with such as institutions as soon as possible. As soon as these agreements are finalized, the Commission should communicate them in a transparent and comprehensive way to the European Parliament and the Member States.
Issues of consideration for improvement
The rapporteur welcomes the overall proposal of the Commission and wishes to reach a rapid agreement with the Council (under Belgian Presidency). In the view of the rapporteur, the following issues might be considered by the Committee for improvement of the initial Commission proposal:
§ Appropriate attention should be given, throughout the entire text, to crucial aspects such as Greener Growth, job creation, the development of a competitive, social and sustainable economy and the tackling of climate change.
§ Innovation and innovating technologies are extremely important for the competitiveness of the European industry and economy. The innovating characteristics should also be taken into account when choosing the projects to be supported by this facility.
§ Given the tight financial and budget constraints, the use of any new financial instrument shall be complementary to existing EU instruments already supporting investments in energy efficiency and renewable energies to strengthen synergies and maximise the added-value of EU supported projects. In particular the synergy with the Structural and Cohesion Funds (notably the ERDF) needs to be clearly emphasized to avoid any duplication of investments.
§ The funds allocated to the new financial facility remain very limited. However, the initiative is very promising and has a high potential leverage effect. Therefore, a maximum of possible funds should be made available for this new financial facility and other unspent funds in the area of energy and climate change may be allocated to this project as well. There are some unspent funds from a multi-annual programme of DG Climate, which was also aimed at energy efficiency and renewables. These unspent funds could also be allocated to the Financial Facility for sustainable energy projects.
§ The annex sets conditions for the financial intermediaries to be entrusted with the implementation of the Financial Facility for sustainable energy projects. The regulation must contain sufficient safeguard that these financial intermediaries have demonstrated their capacity to handle such projects under heavy time constrains and comply with relevant EU budgetary requirements.
Last but not least, the rapporteur would like to stress that it is the Parliament's interest to reach a rapid agreement with the Council, in order to be able to use the unspent funds for energy efficiency and renewable projects, since these areas are of need for public support in times of difficult access to financing.
- [1] Commission proposal for a regulation of the European Parliament and the Council establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy, COM (2009) 35.
- [2] Report from the Commission to the Council and the European Parliament on the implementation of the European Energy Programme for Recovery, COM (2010) 191.
OPINION of the Committee on Budgets (14.7.2010)
for the Committee on Industry, Research and Energy
on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy
(COM(2010)0283 – C7‑0139/2010 – 2010/0150(COD))
Rapporteur: Jens Geier
SHORT JUSTIFICATION
Recovery Plan
The European Economic Recovery Plan (EERP) was agreed upon by the European Council in March 2009. In April 2009, the European Parliament, the Council and the Commission decided on the modalities of financing of the EERP, which consisted in two parts, energy projects and broadband internet in rural areas.
The financing foreseen in the Declaration of 2 April 2009 by the three institutions can be summarised as the following:
EUR million
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EERP -Type of project |
Year 2009 |
Year 2010 |
Total |
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Energy |
2000 million |
1980 million |
3980 million |
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Broadband internet |
600 million |
420 million |
1020 million |
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TOTAL |
2 600 million |
2400 million |
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While financing for 2009 was arranged mainly by redeploying funds from Heading 2 to Heading 1a, the agreement on the financing in 2010 was reached in conciliation of 18 November 2009. A major part of the commitment appropriations were made available by revising the MFF both for 2009 and 2010.
The amount on EUR 1, 98 billion, financing of energy projects in 2010 consisted in: 1776 million (increase of the ceilings of heading 1a ), EUR 120 million by mobilising the flexibility instrument and EUR 81 million by redeploying in Heading 1a. A specific chapter 06 04 14 for Energy projects to aid economic recovery was crated in 2009 to this purpose.
Energy projects - Legal basis
Regulation (EC) 663/2009 of the European Parliament and of the Council of 13 July, establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy[1].
The Regulation established a financial instrument: European Energy Programme for Recovery (EEPR) for the development of projects in the field of energy in the Community which, providing a financial stimulus, contribute to economic recovery, the security of energy supply and the reduction of greenhouse gas emissions. To achieve these objectives, three sub-programmes were established: Gas and electricity infrastructure, offshore wind energy and carbon capture and storage. The regulation identified projects to be financed under each sub-programme and laid down criteria for identifying and implementing actions to realise these projects. Specific budget lines have been created in the EU Budget: 06 04 14 01, 06 04 14 02 and 06 04 14 03.
The Commission stressed, in its declaration attached to the Regulation, that energy efficiency and renewable energy sources are key priorities for EU energy policy, both for environmental and security of supply reasons, which is in line with the EP requests.
(10). Should the Commission, when reporting in 2010 on the implementation of the Regulation under its Article 28, find that it will not be possible to commit by the end of 2010 a part of the funds foreseen for the projects listed in the annex to the Regulation, the Commission will propose, if appropriate and in a geographically balanced way, an amendment to the Regulation allowing for the financing of projects in the area of energy efficiency and renewable energy sources, in addition to the above initiatives, including eligibility criteria similar to those applying to projects listed in the Annex to this Regulation.
Energy projects - Proposal for a Revised Regulation
In compliance with this declaration, the Commission adopted, on 31 May 2010, a proposal for a Regulation amending Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy.
This proposal was presented on the basis of the EEPR implementation report of 27 April 2010 which estimates that an amount of around EUR 114 million will not be committed under the EEPR Regulation. The exact amount of uncommitted funds will be known by the end of 2010.
The Commission is proposing to use the uncommitted funds for the creation of a dedicated financial instrument to support energy efficiency and renewable initiatives within the Sustainable Energy Financing Initiative. The financial facility shall support the development of bankable energy efficiency and renewable energy projects and facilitate the financing of investments in energy efficiency and renewable energy, in particular in urban settings. In order to foster a large number of decentralised investments, municipal, local and regional public authorities will be the beneficiaries. The facility should be managed by one or several financial intermediaries such as International Financial Institutions (IFIs), which should be selected on the basis of the demonstrated capacity to use the funding in the most efficient and effective way and with the highest leverage between the EU funding and the total investment in order to raise significant investments in the EU.
Rapporteur's conclusive remarks:
1. Your Rapporteur welcomes Commission's proposal to use the unspent EEPR appropriations for a new facility, supporting the energy efficiency and renewable energy projects. He is also strongly supporting the establishment, to this purpose, of a specific financial instrument. Therefore, he calls on the institutions involved in the adoption of the legal basis to reach a rapid agreement;
2. The Rapporteur recalls that the financing of the European Recovery Plan was one of the EP priorities for 2009 budget procedure and that, the final agreement with the Council was reached following difficult negotiations, at the conciliation of November 2008;
3. Your Rapporteur stresses that the current Commission's proposal is fully in line with the initial EP request to include energy efficiency and renewable energy projects in the EERP and welcomes Commission's initiative to implement this priority;
4. Nevertheless, he regrets the delay in the implementations of the EEPR, aiming at supporting and stimulating the EU economic recovery. Therefore, he tabled an amendment calling on the Commission to take immediately the necessary budgetary measures in order to make the unspent appropriations available as soon as possible. He considers that a specific budget line for new financial facility, supporting energy efficiency projects, shall be created before the end of 2010.
5. Your Rapporteur calls on the Commission to inform the Budgetary Authority in transparent way on the establishment of the Financial Facility and its functioning modalities and on selection of the financial intermediaries (IFIs). He also requests the Commission to forward to both arms of the Budget Authority implementation reports, which shall include, inter alia, data on beneficiaries of the facility, projects supported and the leverage effect of the facility for the achievement of the projects;
6. Your Rapporteur stresses that in the context of actual budgetary constraints and with due respect of the principle of sound financial management, the synergies between the existing instruments supporting energy efficiency, renewable energies and combating the climate change shall be further developed within the EU budget.
AMENDMENTS
The Committee on Budgets calls on the Committee on Industry, Research and Energy, as the committee responsible, to incorporate the following amendments in its report:
Amendment 1 Proposal for a regulation – amending act Recital 3 | |||||||||||||
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Text proposed by the Commission |
Amendment | ||||||||||||
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(3) In the spirit of the Europe 2020 strategy for sustainable growth and jobs, the development of further renewable sources and the promotion of energy efficiency would contribute to Greener Growth, building a competitive and sustainable economy, and tackling climate change. By giving support to these policies, Europe will create new jobs and green market opportunities fostering the development of a competitive, secure and sustainable economy; |
(3) In the spirit of the Europe 2020 strategy for sustainable growth and jobs and in line with the EU climate and energy package and its Energy Efficiency Action Plan, the development of further renewable sources and the promotion of energy efficiency would contribute to Greener Growth, building a competitive and sustainable economy, and tackling climate change. By giving support to these policies, Europe will create new jobs and green market opportunities fostering the development of a competitive, secure and sustainable economy; | ||||||||||||
Justification | |||||||||||||
"Climate and energy package" was agreed by the European Parliament and Council in December 2008 and became law in June 2009. It reflects the integrated approach to climate and energy policy that aims to combat climate change and increase the EU’s energy security while strengthening its competitiveness. | |||||||||||||
Amendment 2 Proposal for a regulation – amending act Recital 5 | |||||||||||||
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Text proposed by the Commission |
Amendment | ||||||||||||
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(5) A dedicated financial instrument to support energy efficiency and renewable initiatives within the Sustainable Energy Financing Initiative should therefore be created to use the uncommitted funds under Chapter II of Regulation (EC) No 663/2009. This financial facility should support the development of bankable energy efficiency and renewable energy projects and facilitates the financing of investment programmes in energy efficiency and renewable energy by local and regional public authorities, in particular in urban settings; |
(5) A dedicated financial instrument to support energy efficiency and renewable initiatives within the Sustainable Energy Financing Initiative should therefore be created by the end of 2010 to use the uncommitted funds under Chapter II of Regulation (EC) No 663/2009. In order to enter these appropriations in the EU budget, a specific budget line should be created for this purpose. This financial facility should support the development of bankable energy efficiency and renewable energy projects and facilitates the financing of investment programmes in energy efficiency and renewable energy by local and regional public authorities, in particular in urban settings. | ||||||||||||
Justification | |||||||||||||
The new financial instrument supporting energy efficiency and renewable energy projects has to be set-up as soon as possible, in order to ensure that it became operational by the end of 2010. This instrument has also to be presented in transparent way within the EU Budget; therefore the creation of a new specific budget line would be recommended. | |||||||||||||
Amendment 3 Proposal for a regulation – amending act Recital 6 | |||||||||||||
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Text proposed by the Commission |
Amendment | ||||||||||||
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(6) So as to maximise the impact of the EU funding in the short term, the facility should be managed by one or several financial intermediaries such as International Financial Institutions (IFIs). The selection should be operated on the basis of the demonstrated capacity of the financial intermediaries to use the funding in the most efficient and effective way and with the highest leverage between the EU funding and the total investment in order to raise significant investments in the EU. |
(6) So as to maximise the impact of the EU funding in the short term, the facility should be managed by one or several financial intermediaries such as International Financial Institutions (IFIs). The selection should be operated on the basis of the demonstrated capacity of the financial intermediaries to use the funding in the most efficient and effective way and with the highest leverage between the EU funding and the total investment in order to raise significant investments in the EU. However, in times of financial and economic crisis which have a particular adverse effect on regional and local authorities' finances, it needs to be ensured that the difficult budgetary situation of the beneficiaries of the mechanism does not hinder them from being able to access the funds; | ||||||||||||
Justification | |||||||||||||
In line with Annex II, part III, paragraph 2 of the proposal of the European Commission, it is important to highlight the fact that difficult budgetary situations of the local or regional authority do not hinder the access to the facility mechanism in line with its objective of addressing the economic crisis and the European Union's pressing energy needs, as laid down in recital 10 of the Commission proposal. | |||||||||||||
Amendment 4 Proposal for a regulation – amending act Article 1 - point 1 Regulation (EC) No 663/2009 Article 1 - paragraph 4 | |||||||||||||
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Justification | |||||||||||||
The Rapporteur considers necessary to emphasise the fact that the financial instruments shall aim at the local and regional level. The Rapporteur calls on the Commission to take the necessary legislative and budgetary measures in order to ensure that the Facility becomes operational before the end of 2010. | |||||||||||||
Amendment 5 Proposal for a regulation – amending act Article 1 - point 3 Regulation (EC) No 663/2009 Article 22 - paragraph 1 | |||||||||||||
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Justification | |||||||||||||
The Rapporteur supports the ITRE Rapporteur it his view that already available financial resources should be put to good use and that, consequently, the financial means on budget line 07 03 23 should also be transferred to the Facility. In order to transfer the EUR 15 million from budget line 07 03 23 to the facility, it is necessary to add this to the content of the amending budget, installing the facility. | |||||||||||||
This point could be treated at one of the next budgetary trialogues. | |||||||||||||
Amendment 6 Proposal for a regulation – amending act Article 1 - point 3 Regulation (EC) No 663/2009 Article 22 - paragraph 1 a (new) | |||||||||||||
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Amendment 7 Proposal for a regulation – amending act Article 1 - point 3 Regulation (EC) No 663/2009 Article 22 - paragraph 2 a (new) | |||||||||||||
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Amendment 8 Proposal for a regulation – amending act Article 1 - point 5 Regulation (EC) No 663/2009 Annex II - part III - subparagraph 3 - point vi a (new) | |||||||||||||
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Justification | |||||||||||||
The Rapporteur agrees that innovating potential should always be an attention point and should be placed high on the list when choosing projects. However, he additionally attaches importance to the long term goal of the projects. This should not just rest on a high level of energy efficiency, but also a reasonable level of cost-effectiveness in respect to a raid, measurable and substantial impact on economic recovery within the EU, increased energy security and reduction of greenhouse gas emissions, as laid down in Annex II part III paragraph 1 of the Commission proposal of 31.05.2010. | |||||||||||||
PROCEDURE
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Title |
Amendment of Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy |
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References |
COM(2010)0283 – C7-0139/2010 – 2010/0150(COD) |
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Committee responsible |
ITRE |
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Opinion by Date announced in plenary |
BUDG 15.6.2010 |
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Rapporteur Date appointed |
Jens Geier 2.6.2010 |
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Date adopted |
14.7.2010 |
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Result of final vote |
+: –: 0: |
34 3 0 |
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Members present for the final vote |
Marta Andreasen, Reimer Böge, Lajos Bokros, Giovanni Collino, Andrea Cozzolino, Isabelle Durant, James Elles, Göran Färm, José Manuel Fernandes, Eider Gardiazábal Rubial, Salvador Garriga Polledo, Jens Geier, Ingeborg Gräßle, Carl Haglund, Jiří Havel, Monika Hohlmeier, Sidonia Elżbieta Jędrzejewska, Anne E. Jensen, Sergej Kozlík, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, Vladimír Maňka, Barbara Matera, Claudio Morganti, Miguel Portas, Dominique Riquet, László Surján, Helga Trüpel, Derek Vaughan |
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Substitute(s) present for the final vote |
François Alfonsi, Maria Da Graça Carvalho, Peter Jahr, Riikka Manner, Peter Šťastný, Theodor Dumitru Stolojan |
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Substitute(s) under Rule 187(2) present for the final vote |
Lucas Hartong |
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- [1] OJ L 200, 31.7.2009
PROCEDURE
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Title |
Amendment of Regulation (EC) No 663/2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy |
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References |
COM(2010)0283 – C7-0139/2010 – 2010/0150(COD) |
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Date submitted to Parliament |
31.5.2010 |
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Committee responsible Date announced in plenary |
ITRE 15.6.2010 |
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Committee(s) asked for opinion(s) Date announced in plenary |
BUDG 15.6.2010 |
REGI 15.6.2010 |
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Not delivering opinions Date of decision |
REGI 13.7.2010 |
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Rapporteur(s) Date appointed |
Kathleen Van Brempt 15.6.2010 |
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Discussed in committee |
24.6.2010 |
12.7.2010 |
2.9.2010 |
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Date adopted |
26.10.2010 |
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Result of final vote |
+: –: 0: |
49 0 2 |
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Members present for the final vote |
Jean-Pierre Audy, Ivo Belet, Bendt Bendtsen, Jan Březina, Maria Da Graça Carvalho, Giles Chichester, Pilar del Castillo Vera, Lena Ek, Ioan Enciu, Gaston Franco, Adam Gierek, Norbert Glante, Fiona Hall, Jacky Hénin, Edit Herczog, Romana Jordan Cizelj, Arturs Krišjānis Kariņš, Lena Kolarska-Bobińska, Bogdan Kazimierz Marcinkiewicz, Marisa Matias, Angelika Niebler, Jaroslav Paška, Anni Podimata, Miloslav Ransdorf, Herbert Reul, Teresa Riera Madurell, Jens Rohde, Paul Rübig, Amalia Sartori, Francisco Sosa Wagner, Konrad Szymański, Britta Thomsen, Patrizia Toia, Evžen Tošenovský, Claude Turmes, Niki Tzavela, Marita Ulvskog, Vladimir Urutchev, Adina-Ioana Vălean, Kathleen Van Brempt, Alejo Vidal-Quadras |
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Substitute(s) present for the final vote |
Antonio Cancian, Matthias Groote, Jolanta Emilia Hibner, Yannick Jadot, Oriol Junqueras Vies, Silvana Koch-Mehrin, Bernd Lange, Markus Pieper, Mario Pirillo, Lambert van Nistelrooij |
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