Austria, Finland set out 2006 energy priorities as EU presidents

Brussels (Platts)--5Jan2006

The internal energy market, security of supply, sustainable energy 
production and use, external relations and nuclear issues are the priorities 
of the 2006 European Union presidencies of Austria and Finland, the two said 
in a program made public Thursday. Austria holds the presidency of the EU 
Council of member state governments for the first six months, while Finland 
has it for the second. 
     Highlights of the coming year include the European Commission's green 
paper on a "secure, competitive and sustainable energy policy for Europe" 
which the two said would provide a basis for "extensive discussion on future 
energy policy." 
     On the internal energy market, the two are to lead member states' in a 
debate on more measures to liberalize the power and gas markets. Late last 
year the EC found major flaws in the way member states' gas and power markets 
were working both in a progress report on how the member states were 
implementing the EU energy market opening laws and in a separate competition 
inquiry. The EC is to give a public presentation of its preliminary findings 
of the competition inquiry in Brussel on Feb 16.     
     On security of supply, the two hope to finalize the EC's proposal on 
guidelines for dealing with trans-European energy projects in early 2006. 
Developing the EU-Russia dialogue, which started five years ago, and EU-OPEC 
dialog, which started last year, will also contribute, they said. 
     On sustainable energy production and use, the focus is on improving 
energy efficiency and promoting renewable energy. Late last year the EU 
institutions reached an informal agreement on the draft directive on end-use 
energy efficiency and energy services, and the two presidents expect to 
finalize this in early 2006. More generally, the EC plans to close its 
consultation on last summer's energy efficiency green paper in March and then 
assess and prepare an energy efficiency action plan for debate in the Council 
and European Parliament. 
     On renewables, the aim is to develop a medium and long term strategy 
beyond 2010 based on the EC's report on renewables' support schemes and 
biomass action plan published late last year. The strategy would take into 
account the EU's progress on energy efficiency and climate change 
negotiations, said the presidencies. 
     On external relations, the two think that the energy community treaty 
between nine south-east European countries and the EU, signed last October, 
could be ratified in the first half of 2006. They also plan to build on last 
October's EU-Russia energy permanent partnership council by making progress on
implementing the energy aspects of the four common economic spaces being 
developed by EU and Russia. Separately, they plan to pay particular attention 
to reviewing and update the energy and nuclear safety chapters of the 
'Northern Dimension', the EU's relations, along with Norway and Iceland, with 
Russia in the Baltic Sea and Arctic Sea regions. The aim is to adopt a revised
political document by end-2006. 
     On nuclear, the two plan to "give practical effect" to the EU Council's 
June 2004 conclusions on nuclear safety and waste management, after the EC's 
proposals for binding laws in these areas hit a stalemate in debate. Member 
state national experts have been working on the ideas and a final report is 
due end-2006. 
     The two hope to find a "satisfactory resolution" to the problem of 
defining a new approach to nuclear safeguards, clarifying the respective roles
of Euratom, member states and the International Atomic Energy Agency. Austria 
is famously anti-nuclear, while Finland is the first EU country for years to 
decide to build a nuclear plant--mainly to reduce its dependency on Russian 
gas and power imports. The two also expect to adopt an EU directive on safe 
shipping of radioactive waste in the first half of 2006. 
     The two said that the EU Council could adopt the regulation setting out 
rules for granting EU money to trans-European energy networks before July 
2006. The regulation is intended to enable the EC to manage the aid more 
efficiently and speed up completing the networks, which would stimulate trade,
boost the internal EU energy market and reinforce cohesion, said the two. Once
adopted it would enter into force in 2007. 
     "Climate change will remain a high priority on the Council's agenda," 
said the two. Relevant work here includes the review of the EU emissions 
trading directive and the new phase of the European Climate Change Program. As
well starting talks to reach a global agreement on a post-2012 climate change 
strategy, the two said climate change would continue to be a regular part of 
the EU's agenda in its transatlantic talks and other contacts with third 
countries.

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