Energy Community

Last updated

Energy Community
Energy Community Logo.jpg
Logo
Energy Community Map.svg
Secretariat Vienna, Austria
Member StatesFlag of Europe.svg  European Union

Flag of Albania.svg  Albania
Flag of Bosnia and Herzegovina.svg  Bosnia and Herzegovina
Flag of Kosovo.svg  Kosovo
Flag of North Macedonia.svg  North Macedonia
Flag of Moldova.svg  Moldova
Flag of Montenegro.svg  Montenegro
Flag of Serbia.svg  Serbia
Flag of Ukraine.svg  Ukraine
Flag of Georgia.svg  Georgia
Flag of Armenia.svg  Armenia (observer)
Flag of Norway.svg  Norway (observer)

Contents

Flag of Turkey.svg  Turkey (observer)
Leaders
 Presidency-in-Office 2024
Flag of Bosnia and Herzegovina.svg Bosnia and Herzegovina [1]
 Vice Presidency-in-Office
Flag of Europe.svg European Commission
 Director of Secretariat
Flag of Poland.svg Artur Lorkowski
Establishment
 signing of the Treaty
1 Oct 2005
 Treaty entry into force
1 July 2006

The Energy Community, commonly referred to as the Energy Community for South East Europe (ECSEE), [2] [3] is an international organization consisting of the European Union (EU) and a number of non-EU countries. It aims to extend the EU internal energy market to wider Southeast Europe. The members commit to implement relevant EU energy acquis communautaire , to develop an adequate regulatory framework and to liberalize their energy markets in line with the acquis under the founding Treaty. [4]

Aim

The Energy Community aims at establishing a Pan-European energy market by extending the energy acquis of the European Union to the territories of Southeast and Eastern Europe. The Energy Community legal framework covers legislation in the fields of energy, environment, and competition of the EU legislation.

After entry into force, the treaty acquis has been extended on several occasions. [5] It now also includes legislation in relation to security of supply, energy efficiency, oil, renewable energy, statistics, infrastructure and climate.

In line with the update at the EU level, the Energy Community transposes and implements the EU's Third Energy Package since September 2011. The 2021 Ministerial Council adopted five key legislative acts [6] stemming from the EU's Clean energy for all Europeans package. [7] Renewables, energy efficiency and greenhouse gas reduction targets for 2030 will be adopted at the next Ministerial Council in 2022, following the finalization of a study by the European Commission.

Parties, participants and observers

Parties

Parties to the Energy Community Treaty are the European Union and nine Contracting Parties (date of ratification):

After having obtained the observer status, Moldova and Ukraine formally expressed their interest in full membership. Mandated by the Ministerial Council, the European Commission had the first round of formal negotiations with Moldova and Ukraine in late 2008. After three negotiation rounds, the technical negotiations were concluded in 2009. The Ministerial Council, however, made the membership conditional on legislative amendments. In concrete terms, it requested both countries to revise their gas laws and to align them with the EU's Gas Directive 2003/55/EC. [10] Whilst Moldova became a full-fledged member as of 1 May 2010, Ukraine officially acceded to the Energy Community on 1 February 2011.

Georgia applied for full membership in 2014 and joined the organization as a fully-fledged member on 1 July 2017.

Observers

Any other neighbouring third country can obtain an observer status upon approval of a reasoned request by the Ministerial Council. A separate Procedural Act regulates the rights and obligations of the observers to the Treaty. [11] The observers to the treaty are:

Participants

Pursuant to the treaty, any EU member state may obtain the status of a participant. In doing so, the EU member state has the right to attend the Ministerial Council, the Permanent High Level Group, the Regulatory Board and the fora and participate in the discussions in these bodies. This privilege is used by 19 EU member states, namely

  • Flag of Austria.svg Austria (17 November 2006)
  • Flag of Bulgaria.svg Bulgaria (1 January 2007)
  • Flag of Croatia.svg Croatia (17 July 2013)
  • Flag of Cyprus.svg Cyprus (17 November 2006)
  • Flag of the Czech Republic.svg Czech Republic (17 November 2006)
  • Flag of Finland.svg Finland (24 October 2013)
  • Flag of France.svg France (18 December 2007)
  • Flag of Germany.svg Germany (17 November 2006)
  • Flag of Greece.svg Greece (17 November 2006)
  • Flag of Hungary.svg Hungary (17 November 2006)
  • Flag of Italy.svg Italy (17 November 2006)
  • Flag of Latvia.svg Latvia (23 September 2014)
  • Flag of Lithuania.svg Lithuania (16 October 2015)
  • Flag of the Netherlands.svg Netherlands (29 June 2007)
  • Flag of Poland.svg Poland (6 October 2011)
  • Flag of Romania.svg Romania (1 January 2007)
  • Flag of Slovenia.svg Slovenia (17 November 2006)
  • Flag of Slovakia.svg Slovakia (17 November 2006)
  • Flag of Sweden.svg Sweden (23 September 2014)

Following their accession to the European Union, three of the original treaty signatories, Bulgaria, Croatia and Romania, have matured from a Contracting Party to a Participant.

Institutions

The main institutions established by the treaty are:

Ministerial Council

The Ministerial Council is the principal decision-making institution of the Energy Community. It takes the key policy decisions and adopts the Energy Community's rules and procedures. The Ministerial Council is composed of one representative from each Contracting Party, usually the Minister responsible for energy, and of two representatives from the European Union, the European Commissioner for Energy and a high-level representative of the Presidency of the European Union.

Following a decision in December 2009, the Ministerial Council meets once a year. Moreover, the Presidency of the council is held in turn by each contracting party for a term of 12 months. For the period of 1 January to 31 December 2021, Serbia holds the presidency in office and chairs the key institutional meetings.

Permanent High Level Group

The Permanent High Level Group brings together senior officials from each Contracting Party and two representatives of the European Commission. It ensures the continuity of and follow-up to the political meetings by the ministers and decides, in certain cases, on implementing measures.

Energy Community Regulatory Board

The Regulatory Board [12] is composed of high level representatives from the national energy regulatory agencies of the Energy Community Contracting Parties, Observers and Participants. It advises the Energy Community Ministerial Council and Permanent High Level Group (PHLG) on details of statutory, technical and regulatory rules and makes recommendations in the case of cross-border disputes between regulators. The Board can take regulatory measures when empowered by the Energy Community Ministerial Council.

The Board is currently chaired by its President (2020-2023), Mr Marko Bislimoski, President of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia. The European Union, represented by the European Commission, acts as vice-president and is assisted by the Agency for the Cooperation of Energy Regulators (ACER). The Regulatory Board meets in Athens. Its work is supported by the Energy Community Secretariat.

Fora

The fora have the task to advise the Energy Community. Chaired by the European Commission, a forum brings together all interested stakeholders from the industry, regulators, industry associations and consumers. Their conclusions, agreed by consensus, are addressed to the Permanent High Level Group.

The establishment of the fora reflects the process leading to the creation of the Energy Community. The Athens Electricity Forum, previously known as South East Europe Energy Regulation Forum, met for the first time in 2002. The terms governing the Gas Forum were established in 2006. It was decided that the Gas Forum shall convene in Slovenia. The first Social Forum took place in November 2008. At its December 2008 meeting, the Ministerial Council decided to adopt oil stock legislation and to establish the Oil Forum. The first Oil Forum convened in 2009 in Belgrade. Recently, also a Vienna Law Forum, Just Transition [13] Forum and Dispute Resolution [14] Forum have been established.

Secretariat

The day-to-day activities of the Energy Community are administered by the Secretariat. The Secretariat assists the Contracting Parties in their implementation of the acquis. The Secretariat supports the Contracting Parties in the drafting of legislation and conducts expert missions when requested by the national authorities. The Secretariat organizes annually over 60 events, including institutional meetings and expert workshops.

Each year the Secretariat submits an Annual Implementation Report [15] to the Ministerial Council of the Energy Community, which assesses the compliance of each Contracting Party with respect to its obligations under the treaty. If a Contracting Party fails to comply with its treaty obligations, the Secretariat may open an infringement procedure. [16]

Since 1 December 2021, the director of the Secretariat is Mr Artur Lorkowski. Mr Lorkowski is the third Energy Community director, following Mr Janez Kopač (2012-2021) and Mr Slavtcho Neykov (2007-2012). The director of the Secretariat is responsible for ensuring that the Energy Community budget – to which all Parties contribute – is correctly spent and accounted for. The director also selects and appoints the staff on the basis of the approved establishment plan of the Energy Community. As of December 2021, the Secretariat has 34 staff members holding 18 nationalities.

The Secretariat has its seat in Vienna, Austria.

Role of the European Union

Represented by the European Commission, the European Union holds the permanent Vice-Presidency of the Energy Community. The European Commission assists the Presidency in the chairing of the Permanent High Level Group and the Ministerial Council and the preparation of agendas of all institutional meetings. At the annual Ministerial Council meeting, the European Commission is represented by the Commissioner for Energy. The European Union is the largest contributor to the Energy Community budget. Its contribution is nearly 95 per cent.

History

The roots of the Energy Community Treaty go back to the South-East Europe Regional Energy Market for electricity and natural gas formed originally in the framework of the Stability Pact for South Eastern Europe through the Athens Memorandum. To this end, the establishment of the Energy Community represents a very important political step in a key economic sector before the accession of the SEE countries to the EU. [17] The institutional setting of the Energy Community shows great parallels to the structures of the European Union. It was in the negotiations for this treaty that the Commission "reproduced" the institutions that were created by the founding fathers of the European Communities and reproduced its own institutions outside its borders. [18] On the occasion of the signing of the Treaty, the European Commission stated that the Energy Community Treaty is consciously modelled on the European Steel and Coal Community that was the genesis for the European Union. [19]

Athens Memorandum

The 'Athens Memorandum' refers to the memorandum of understanding of 2002 and its revision of 2003, signed in Athens. It was proposed by the European Union and it outlined the principles and the institutional necessities for regional electricity market development in South East Europe. Following intense discussions, an agreement was reached at the first South East Europe Electricity Regulation Forum in June 2002. The signing of the memorandum took place in November 2002 by Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, FYR of Macedonia, Romania, Serbia and Montenegro, and Turkey.

The 2003 revision added natural gas to the scope of work. Under the Athens Memorandum a South-East Europe Regional Energy Market was envisioned to form part of the EU's internal energy market. The Athens Memorandum also set up a number of institutions, which collectively are known as the 'Athens Process'. In 2004, the Athens Forum meeting decided to name the process 'Energy Community'. at the same time the location of future institutions was agreed.

Energy Community Treaty

In May 2004, the European Union opened negotiations with the countries of the south-eastern European region to conclude a legal agreement. The negotiations took place between the European Community on one side, and Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR of Macedonia, Republic of Montenegro, Serbia, Romania, Turkey and UNMIK on behalf of Kosovo on the other side. The treaty establishing the Energy Community was signed in Athens, Greece, on 25 October 2005. Signature of the treaty was approved by the European Parliament on 29 May 2006. The treaty subsequently entered into force on 1 July 2006.

According to Article 97, [20] the Treaty is concluded for a period of 10 years from the date of entry into force. In October 2013, the Energy Community Ministerial Council [21] unilaterally decided to extend the duration of the treaty by ten years, to 2026.

On this occasion, the Ministerial Council also established a High Level Reflection Group, which was mandated to assess the adequacy of the institutional set up and working methods of the Energy Community in achieving the objectives of the Treaty. The Reflection Group published on 11 June 2014 its final report “An Energy Community for the Future”, [22] outlining recommendations on how the Energy Community could be improved. A roadmap has been adopted as to how these proposals should be taken forward.

Critics

The treaty has been criticised by the European Public Service Union as it lacks a social dimension. [23] The Energy Community acquis makes an explicit reference to public service obligations and customer protection. Whilst the Treaty may lack a legally binding acquis on social dialogue, the Contracting Parties have a legally binding obligation to foster social dimension within the process. In October 2007, the Parties signed the Memorandum of Understanding on Social Issues in the context of Energy Community. The Memorandum recognises that economic development and social progress are mutually linked and should go hand in hand. It also spells out the importance and the necessity to involve social partners in the reform process. Ukraine and Moldova signed the Declaration of Memorandum of Understanding on Social Issues in October 2011.

Environmental organisations from south-eastern Europe criticised the process in December 2008 as they believed that the ECSEE contains insufficient safeguard mechanisms to ensure that the well-intentioned promotion of energy efficiency and renewable energy is not drowned out by the promotion of large and often environmentally harmful coal and hydropower plants. [24] The Energy Community Ministerial Council decided to establish a task force in energy efficiency in 2007. It was renamed in 2013 to Energy Efficiency Coordination Group (EECG), providing a broad platform for cooperation between representatives of ministries and agencies in charge for energy and energy efficiency from Contracting Parties, Observer Countries and Participants. Since 2009 the Energy Community implements the core EU energy efficiency acquis. [25] In the area of renewable energy the discussion to adopt the EU renewable energy directive started already in 2008. The Ministerial Council established a renewable energy task force in 2009 and adopted the Directive 2009/28/EC with binding renewable energy targets for 2020 in October 2012. In October 2015, the ministers decided to re-establish the renewable energy task force. The Energy Community Task Force on Environment has been operational since Spring 2011.

See also

Related Research Articles

<i>Acquis communautaire</i> EUs accumulated law and legal precedent

The Community acquis or acquis communautaire, sometimes called the EU acquis and often shortened to acquis, is the accumulated legislation, legal acts and court decisions that constitute the body of European Union law that came into being since 1993. The term is French: acquis meaning "that which has been acquired or obtained", and communautaire meaning "of the community".

<span class="mw-page-title-main">Council of the European Union</span> Institution of the European Union

The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and informally known as the Council of Ministers, is the third of the seven Institutions of the European Union (EU) as listed in the Treaty on European Union. It is one of two legislative bodies and together with the European Parliament serves to amend and approve or veto the proposals of the European Commission, which holds the right of initiative.

<span class="mw-page-title-main">Comitology</span> Process by which European Union law is modified or adjusted

Comitology in the European Union refers to a process by which EU law is implemented or adjusted by the European Commission working in conjunction with committees of national representatives from the EU member states, colloquially called "comitology committees". These are chaired by the European Commission. The official term for the process is committee procedure. Comitology committees are part of the EU's broader system of committees that assist in the making, adoption, and implementation of EU laws.

<span class="mw-page-title-main">Andris Piebalgs</span> Latvian politician and diplomat

Andris Piebalgs is a Latvian politician and diplomat who served as European Commissioner for Development at the European Commission from 2010 until 2014. Between 2004 and 2009 he served as Commissioner for Energy. Between 4 June 2016 and 19 August 2017, he served as the leader of the Unity party.

<span class="mw-page-title-main">Stabilisation and Association Process</span> Part of the process of joining the European Union

In talks with countries that have expressed a wish to join the European Union, the EU typically concludes Association Agreements in exchange for commitments to political, economic, trade, or human rights reform in that country. In exchange, the country may be offered tariff-free access to some or all EU markets, and financial or technical assistance.

<span class="mw-page-title-main">Renewable energy in the European Union</span>

Renewable energy progress in the European Union (EU) is driven by the European Commission's 2023 revision of the Renewable Energy Directive, which raises the EU's binding renewable energy target for 2030 to at least 42.5%, up from the previous target of 32%. Effective since November 20, 2023, across all EU countries, this directive aligns with broader climate objectives, including reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. Additionally, the Energy 2020 strategy exceeded its goals, with the EU achieving a 22.1% share of renewable energy in 2020, surpassing the 20% target.

The Energy Charter Treaty (ECT) is an international agreement that establishes a multilateral framework for cross-border cooperation in the energy industry, principally the fossil fuel industry. The treaty covers all aspects of commercial energy activities including trade, transit, investments and energy efficiency. The treaty contains dispute resolution procedures both for States Parties to the Treaty and as between States and the investors of other States, who have made investments in the territory of the former. Full versions of the treaty, both consolidated and official, are readily accessible.

<span class="mw-page-title-main">Energy policy of the European Union</span> Legislation in the area of energetics in the European Union

The energy policy of the European Union focuses on energy security, sustainability, and integrating the energy markets of member states. An increasingly important part of it is climate policy. A key energy policy adopted in 2009 is the 20/20/20 objectives, binding for all EU Member States. The target involved increasing the share of renewable energy in its final energy use to 20%, reduce greenhouse gases by 20% and increase energy efficiency by 20%. After this target was met, new targets for 2030 were set at a 55% reduction of greenhouse gas emissions by 2030 as part of the European Green Deal. After the Russian invasion of Ukraine, the EU's energy policy turned more towards energy security in their REPowerEU policy package, which boosts both renewable deployment and fossil fuel infrastructure for alternative suppliers.

European Union (EU) concepts, acronyms, and jargon are a terminology set that has developed as a form of shorthand, to quickly express a (formal) EU process, an (informal) institutional working practice, or an EU body, function or decision, and which is commonly understood among EU officials or external people who regularly deal with EU institutions.

<span class="mw-page-title-main">INOGATE</span> International energy co-operation programme

Interstate Oil and Gas Transportation to Europe (INOGATE) was an international energy co-operation programme between the European Union (EU), the littoral states of the Black and Caspian seas and their neighbouring countries. The programme was operational from 1996 to 2016.

<span class="mw-page-title-main">Council of European Energy Regulators</span> International organization

The Council of European Energy Regulators (CEER) is a non-profit organization in which Europe's national energy regulators co-operate to protect consumer interests and to facilitate the creation of a single, competitive, and sustainable internal market for gas and electricity in Europe.

<span class="mw-page-title-main">Union for the Mediterranean</span> Intergovernmental organization

The Union for the Mediterranean is an intergovernmental organization of 43 member states from Europe and the Mediterranean Basin: the 27 EU member states and 16 Mediterranean partner countries from North Africa, Western Asia and Southern Europe. It was founded on 13 July 2008 at the Paris Summit for the Mediterranean, with an aim of reinforcing the Euro-Mediterranean Partnership (Euromed) that was set up in 1995 as the Barcelona Process. Its general secretariat is located in Barcelona, Catalonia, Spain.

The European plan on climate change consists of a range of measures adopted by the members of the European Union to fight against climate change. The plan was launched in March 2007, and after months of tough negotiations between the member countries, it was adopted by the European Parliament in December 2008. The package focuses on emissions cuts, renewables and energy efficiency.

<span class="mw-page-title-main">Christos Papoutsis</span> Greek politician

Christos Papoutsis is a Greek socialist politician who has served as Minister for Citizen Protection (2010–12), Mercantile Marine Minister (2000–01) Member of the European Parliament (1984–95) and European Commissioner for Energy and Euratom Supply Agency, Small business and Tourism (1995–1999). He has also served as the Secretary of the Parliamentary Group and Parliamentary Spokesman for the Panhellenic Socialist Movement (PASOK), the majority party in Greece (2009–2010). He also was candidate for Mayor of Athens (2002).

<span class="mw-page-title-main">Energy in Moldova</span>

Energy in Moldova describes energy and electricity production, consumption and import in Moldova.

<span class="mw-page-title-main">Area of freedom, security and justice</span> EUs home affairs and justice policies

The area of freedom, security and justice (AFSJ) of the European Union (EU) is a policy domain concerning home affairs and migration, justice as well as fundamental rights, developed to address the challenges posed to internal security by collateral effects of the free movement of people and goods in the absence of border controls or customs inspection throughout the Schengen Area, as well as to safeguard adherence to the common European values through ensuring that the fundamental rights of people are respected across the EU.

<span class="mw-page-title-main">Environmental policy of the European Union</span> Environment protection policy

The European Union (EU) Environmental Policy was initiated in 1973 with the "Environmental Action Programme" at which point the Environmental Unit was formed. The policy has thereafter evolved "to cover a vast landscape of different topics enacted over many decades" (Reuters) and in 2015 the Institute for European Environmental Policy estimated that "the body of EU environmental law" amounted to 500+ directives, regulations and decisions.

"Over the past decades the European Union has put in place a broad range of environmental legislation. As a result, air, water and soil pollution has significantly been reduced. Chemicals legislation has been modernised and the use of many toxic or hazardous substances has been restricted. Today, EU citizens enjoy some of the best water quality in the world"

<span class="mw-page-title-main">Poland in the European Union</span> Bilateral relations

Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU. The actual process of integrating Poland into the EU began with Poland's application for membership in Athens on 8 April 1994, and then the confirmation of the application by all member states in Essen from 9–10 December 1994. Poland's integration into the European Union is a dynamic and continuously ongoing process.

<span class="mw-page-title-main">Energy Taxation Directive</span>

The Energy Taxation Directive or ETD (2003/96/EC) is a European directive, which establishes the framework conditions of the European Union for the taxation of electricity, motor and aviation fuels and most heating fuels. The directive is part of European Union energy law; its core component is the setting of minimum tax rates for all Member States.

<span class="mw-page-title-main">EU–UK Partnership Council</span> Multinational body to govern relations between the EU and UK

The EU–UK Partnership Council is a Joint Committee established upon provisional application of the EU–UK Trade and Cooperation Agreement. It has several governing tasks within the TCA and supplementing agreements between the UK and the EU. Each party to the agreement can refer to the Council any issue relating to the implementation, application and interpretation of the TCA. The council has – in the first years – the power to amend certain parts of the TCA "provided that such amendments are necessary to correct errors, or to address omissions or other deficiencies", and has the ability to delegate certain of its powers to the Trade Partnership Committee or to a Specialised Committee.

References

  1. https://www.energy-community.org/aboutus/institutions/MC/presidency.html
  2. Johannes Pollak, Samuel R. Schubert, Maren Kreutler. "Energy Policy of the European Union". Palgrave Macmillan, 2016, p. 122
  3. Reuters, Ukraine says Belarus has imposed trade barriers in plane row : May 28, 2021
  4. Treaty on the Energy Community in South East Europe. Council of European Regulators, 2004 Annual Report.
  5. "see acquis in force page".
  6. "see 19th Ministerial Council news item".
  7. "see EU Green Deal page".
  8. "European Council Decision on the conclusion of the Energy Community Treaty, L 198/15". 20 July 2006.
  9. "Georgia Ratifies Europe's Energy Community Accession Agreement". Civil Georgia. 26 April 2017. Retrieved 26 April 2017.
  10. "Directive 2003/55/EC of 26 June 2003 concerning common rules for the internal market in natural gas (repealed)". Publications Office of the European Union. 15 July 2003.
  11. "Ministerial Council Decision on adoption of Procedural Rules on Acceptance of Countries as Observers to the Energy Community" (PDF).
  12. "see Energy Community Regulatory Board".
  13. "see Energy Community Just Transition Initiative".
  14. "see Energy Community Secretariat's Dispute Resolution and Negotiation Centre".
  15. "see Secretariat's Implementation Reports". Archived from the original on 25 October 2022. Retrieved 2 December 2021.
  16. "see Energy Community case registry". Archived from the original on 25 October 2022. Retrieved 2 December 2021.
  17. "Florence School of Regulation, EUI working paper on the Energy Community, Rozeta Karova, p.18, RSCAS 2009/12" (PDF).
  18. "EIoP, The Energy Community of Southeast Europe: A neo-functionalist project of regional integration, Stephan Renner, p. 11". Eiop.or.at. 25 February 2009. Archived from the original on 22 May 2009.
  19. "The EU and South East Europe sign a historic treaty to boost energy integration, IP/05/1346". Europa (web portal). 25 October 2005.
  20. "see Energy Community Treaty".
  21. "see Decision 2013/03/MC-EnC extending the duration" (PDF).
  22. "High Level Reflection Group Report" (PDF).[ permanent dead link ]
  23. "EPSU Press Release, Energy Community Ministerial Council urged to strengthen social dimension". Epsu.org. 17 December 2009. Archived from the original on 17 April 2012. Retrieved 24 July 2012.
  24. "South-East Europe Development Watch position paper, South-east Europe energy policies" (PDF). 8 December 2008. Archived from the original (PDF) on 25 July 2011. Retrieved 31 March 2009.
  25. "Ministerial Council Decision on the implementation of certain Directives on Energy Efficiency" (PDF).