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COUNCIL RECOMMENDATION

of 24 May 1983

to the Member States concerning the encouragement of investment in the use of solid fuel in industry

(83/250/EEC)

THE COUNCIL OF THE EUROPEAN

COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof,

Having regard to the proposal submitted by the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Economic and Social Committee (3),

Having regard to the communication from the Commission on the role for coal in Community energy strategy,

Whereas the considerable extent to which the Community is dependent on oil imports, with the concomitant uncertainty regarding supplies and prices, imposes contraints on the Community economy;

Whereas even a slight economic upturn in the industrialized countries, in conjunction with an increase in oil demand in the rest of the world, could increase those constraints still further;

Whereas the policy of oil substitution ought therefore to facilitate the necessary process of structural adjustment; whereas this can only be accomplished by pursuing a policy of rational energy use, which includes increasing the contribution made by substitute sources of energy, with special reference to solid fuel;

Whereas it would be desirable to use solid fuel in both new and established installations;

Whereas industry - with the exception of the iron and steel industry and the energy sector, where substitution has started as a result of the measures taken - requires heat both for industrial processes and for heating and therefore offers particularly wide scope for substituting solid fuel for oil;

Whereas, despite the price advantage of solid fuel over fuel oil, the process of substitution has made only a slow start; whereas the factors involved are in particular:

- high investment and finance costs,

- numerous other obstacles to investment, including environment-protection requirements, site problems, lengthy approval procedures and uncertain economic prospects, particularly as regards the relative price of solid fuel and oil,

- lack of experience in the use of solid fuel,

- shortcomings in the infrastructure for supplying solid fuel to consumers,

- uncertainty about future developments in solid fuel technology;

Whereas the use of solid fuel, including transport and waste-processing, should take place in a way which takes the environment into account;

Whereas the Member States should adopt in a concerted manner a coherent set of measures to encourage investment in order to overcome these difficulties and obstacles,

HEREBY RECOMMENDS THAT THE MEMBER STATES:

1. Take all environmentally compatible measures, in undertakings in all branches of industry, with the exception of the iron and steel industry and the energy sector, which they consider appropriate, to encourage both the conversion or the reconversion to solid fuel of existing combustion installations fired by fuel oil and to encourage the building of new solid-fuel-fired installations;

2. Notify the Commission at the end of each year of the measures taken in the field covered by this recommendation, so that the Commission can make an anual report to the Council in the appropriate form.

Done at Brussels, 24 May 1983.

For the Council

The President

H.-W. LAUTENSCHLAGER

(1) OJ No C 105, 26. 4. 1982, p. 1.

(2) OJ No C 149, 14. 6. 1982, p. 134.

(3) OJ No C 205, 9. 8. 1982, p. 3.