EU Energy Overhaul May Feature Efficiency Drive
Date: 17-Apr-09
Country: BELGIUM
BRUSSELS - Unused funds from a European Union plan to spend 4 billion euros (US$5.3 billion) overhauling energy infrastructure could be funnelled into energy efficiency measures, according to a agreement reached on Thursday.
European Union countries struck the deal in closed-door negotiations with the European Parliament after weeks of squabbling within the 27-nation bloc.
The plan is part of EU attempts to bolster itself against energy shocks and follows this winter's gas crisis, caused by a price row between Moscow and transit country Ukraine.
That crisis shook the EU, which has been uneasy about its reliance for energy on the newly assertive Moscow since Russia invaded neighbouring Georgia last August.
The plan to subsidise new power projects and hundreds of kilometres of gas pipelines and power cables was meant to enable the bloc's member states to help each other during gas crises.
It was also aimed at tackling the economic crisis by creating new jobs for steel workers and engineers, while helping the EU reach its environment goals.
Some members of the European Parliament criticised the plan after later drafts left out funding for energy efficiency projects but Thursday's agreement gave them new hope of funding.
"The Commission will declare its intention to propose using for energy efficiency and renewable energy measures those funds which have not been committed by the end of 2010," a parliament statement said.
The deal will now need to be approved by EU ambassadors when they meet next week, and by parliament in May, before becoming law.
A source in the EU's Czech presidency said member states could still reject unused funds being channelled into energy efficiency and instead request they be returned to their own coffers.
(Reporting by Pete Harrison, editing by Anthony Barker)