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13 September 1993
Doc. 6911
1403-10/9/93-1-E
O P I N I O N
on the activities of OECD in 1992
in the spheres of energy,
environment and rural development
(Rapporteur: Mr PINTO,
Portugal, Liberal Democratic and Reformers Group)
A. Introduction
In accordance with its established practice, the Committee on the Environment, Regional Planning and Local Authorities is contributing to the annual debate on OECD activities by presenting that part of the report which deals with matters within its terms of reference.
As usual, as part of this exercise, the committee also met the representatives of the OECD Secretariat who are responsible for the above-mentioned sectors.
B. Brief summary of the OECD activities in areas of interest to the committee
1. The International Energy Agency (IEA)
In 1992, the activities of the International Energy Agency were chiefly dictated by the political changes in central and eastern Europe and Asia, the substantial rise in energy consumption outside the OECD area and the concern for environmental issues.
In the countries of central and eastern Europe, the IEA's work naturally centred on the dilemma of Soviet-designed nuclear reactors which pose major security problems, as well as being more generally concerned with assessing these countries' need for assistance in the energy sector.
IEA action took various forms: on-the-spot meetings to discuss topics such as the exploitation of natural resources and the problem of energy and the environment; reports on the situation in individual countries (in 1992 reports were published on the situation in Hungary and the Czech and Slovak Federal Republic and a survey on Romania was undertaken), while co-operation with other organisations like the World Bank was expanded.
It is important to note that the IEA actively participated in negotiations on the European Energy Charter which should lead, in 1993, to the signature of an energy agreement between IEA member countries and the countries of central and eastern Europe.
I think that the IEA, together with other bodies, such as international providers of funds, the International Atomic Energy Agency or the OECD's Nuclear Energy Agency (NEA), can clearly play an important role in the countries of central and eastern Europe. These find themselves in the predicament of having to close down some dangerous nuclear power stations, diversify energy sources and bring in energy-saving programmes in order to be able to continue to meet most of their energy requirements. Only co-ordinated action at international level will ensure a transition in this sector and help these countries to introduce energy policies which take the environment into account, but which do not compromise their economic and industrial development.
As in previous years, the IEA has continued to attach great importance to both energy demand and efficiency. At the same time, the analysis of prospects for fuels to replace oil was continued. Although these activities are dealt with separately, they come under the general heading of energy and the environment, which formed the framework for the IEA's activities in 1992 with regard to the global environment and climate change in particular. Moreover, the IEA took part in the United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro and a new Energy and Environment Division has been set up within the Secretariat in order to heighten and improve environmental awareness in energy policy. This indicates the prominence the IEA is determined to give to the questions which arise in this field today. The activities of this new division include the publication of "Climate Change Policy Initiatives" which provides an update of the positions taken on this subject by countries after the adoption in May of the Framework Convention on Climate Change. Furthermore, the IEA actively contributes to the International Panel on Climate Change (IPCC). Co-operation with the OECD's Environment Directorate has also led to the working out of methods for recording data on emissions of greenhouse gases.
This is undeniably one of the most important aspects of these activities and the IEA's long experience in this field will certainly be an invaluable contribution when it comes to implementing the Convention on Climate Change and member countries' policies. In this context, it would be interesting to pay particular attention to the international co-operation to be set up in order to limit importations of such energy sources which produce harmful effects on the environment.
In 1992 the aim of energy technology and research and development activities was to improve the security of supplies, while at the same time protecting the environment and ensuring sustainable development. As in an increasingly interdependent world energy research and development programmes cannot be confined to purely national efforts if they are to be effective, the IEA has encouraged the drafting of agreements. These are international, multilateral legal mechanisms which member states of the IEA adopt in order to collaborate on R & D and technology demonstration projects in the energy sector and exchange information.
This can only promote genuine energy solidarity where expertise, knowledge and even energy resources could be pooled in order to ensure the sustainable development of the planet.
2. OECD Nuclear Energy Agency (NEA)
The NEA has also fully endorsed the conclusions of the conference in Rio which called for further efficiency in energy production and consumption, on the one hand and greater reliance on environmentally sound energy systems, on the other, while paying more attention to the growing interdependence between countries in the energy field.
In this context, some governments are becoming more and more convinced that nuclear energy can significantly facilitate the attainment of the twin goals of sustainable economic development and environmental protection.
These countries are, however, prefectly aware of the arguments against nuclear power, the first being that of safety, of course. Thus, while advocating that it be used on a wider scale internationally, they recommend the stepping up of nuclear safety programmes as a matter of priority.
It is plain that these options must now be reflected in strenuous efforts directed at the countries of central and eastern Europe which are faced with the critical problems mentioned earlier.
Activities in these fields have usually been the fruit of co-operation between many international organisations (the International Atomic Energy Agency, the Commission of the European Communities, etc.) and are now co-ordinated by the G-24.
Radioactive waste is a crucial issue in the sphere of nuclear energy. The NEA has continued its attempts to develop a data base making it possible to select disposal systems for high-level, long-lived radioactive waste, assess their safety and license them. Another interesting activity is that of an NEA working party which is examining the specific, but no less important question of possible human intrusion at radioactive waste respository sites and the consideration of this risk in long-term safety studies.
The Committee on the Environment has always shown a marked interest in the role that conventions can play in environmental protection and I would like to draw attention to the entry into force of the 1988 Joint Protocol which links the Paris Convention and the Vienna Convention. Both conventions govern in a similar manner the liability of operators of nuclear facilities for damage caused by accidents at their installations or during transport. The protocol extends the benefits of each convention to the parties of the other and therefore widens the "cover" offered to the victims of nuclear accidents.
It should also be pointed out that the NEA is also participating in efforts to establish a new international mechanism for giving additional compensation for nuclear damage on top of that provided for by the two above-mentioned conventions. This new system would combine a collective contribution by the nuclear industry and by the signatories of the two main internaional conventions.
In addition, the NEA is pursuing its endeavours to supply various target groups with sound information about nuclear energy.
While we have no wish whatsoever to take sides (there is no question of that) we should neverthless welcome the fact that the NEA is addressing the three main problems raised by nuclear power: safety, waste and information.
Moreover the NEA's action is of particular significance at the present time, when Europe is directly confronted with the central and eastern European countries' difficulties in this sphere.
3. Environmental policy
3.1. Orientation and structure
The thrust of OECD's activities programme in this field has always been prompted by the three guidelines defined at the ministerial meeting in January 1991 and entitled "Strategy for the 1990s": integration of environmental and economic decision-making; improvement of the results of the environmental policies of member countries, and international co-operation through accession to existing international legal instruments in this sphere and support for non-member countries in their struggle to contend with the problems of environmental protection.
The implementation of the "Strategy for the 1990s" has necessitated a growing number of activities which have often been carried out in co-operation with other international organisations with whom links have obviously been strengthened. It is interesting to note that OECD's Environment Programme has increasingly involved the private sector via the Business and Industry Advisory Committee (BIAC) and the Trade Union Advisory Committee (TUAC).
OECD took part in the UNCED and afterwards it assessed its role in the follow-up to the conference and the implementation of the agreements signed in Rio. Moreover, many activities are related to the implementation of Agenda 21 and to the Convention on Climate Change. OECD intends to participate in the deliberations of the United Nations Commission on Sustainable Development.
The structure of both the Environment Directorate and the Environment Committee has been modified so as to be able to respond as effectively as possible to the organisation's new medium-term priorities and approaches. To this end a State of the Environment Division has been set up with responsibility for a programme to assess the environmental performance of member countries. Furthermore, a Non-Member Country Branch has been established to co-ordinate all activities concerning central and east European countries.
The Environment Committee was renamed the Environment Policy Committee and the Chemicals Group and Management Committee, the Group on Environmental Performance, the Group on Economic and Environment Policy Integration and the Group on Pollution Prevention and Control have been set up under its aegis.
3.2. Economics and the environment
Various activities have been carried out in this context in order to explore how economic instruments, such as tax policy or the workings of the market, might be used to achieve environmental objectives. These subjects were discussed during work on climate change, policy integration and integrated land management.
As the committee has always attached great value to the consultation of various sectors, it welcomes the consultative meetings arranged with non-governmental organisations, representatives of industry and trade union groups to mull over issues linked to trade and the environment.
3.3. Assessing environmental performance
Since 1991, OECD has been running a programme of country environmental performance reviews, the principal aim of which is to help its member countries improve their individual and collective performance in environmental management. OECD countries then collectively analyse the reports on the in-depth examinations carried out by the government experts from other member countries.
The goals of this programme are to: help individual governments judge their progress; promote environmental improvements and a continuous dialogue among member countries and, lastly, stimulate greater government accountability to the public.
The committee immediately welcomed this move by OECD. It is still convinced that this assessment will boost the effectiveness of a global approach to environmental problems.
3.4. Pollution prevention and control
In 1992, OECD's various activities on pollution which were previously the responsibility of different sector groups, were handed over to the new Pollution Prevention and Control Group.
The key duty of this group is to foster international co-operation to reduce pollution, the emphasis being on prevention rather than cleaning-up. The group has focused its attention on greenhouse gases, energy efficiency and transfrontier movements of hazardous waste.
Among the topics selected for future work, I would like to pick out those concerned with ecologically sustainable transport, the development and spread of technology to reduce the consumption of energy, materials and natural resources and the discharging of waste into the environment.
As far as waste management policy is concerned, after the adoption by the OECD Council of a major decision concerning the transfrontier movements of wastes destined for recovery operations, work concentrated on the devising of practical measures such as the notification and tracking of waste. Furthermore, a review mechanism has been established to update and modify, as required, the lists of waste covered by the decision.
This subject is of particular interest to the committee which is tabling a report on waste at this session. The committee has already submitted a report to the Assembly on transfrontier movements of hazardous waste. Our present deep regret is that the Basel Convention has been ratified by only a small number of countries. We would hope that OECD, through its Council, will invite its member countries which have not already done so, to ratify this convention.
In the field of energy and the environment, priority has been given to climate change and the measurement of emissions of greenhouse gases from energy sources. In this context, work has continued on economic instruments such as carbon taxes and tradeable permits. In the same field and with a view to integrating energy and environmental policies, an assessment was made of the resources required for incorporating energy costs in energy prices.
3.5. Chemicals
Under this heading I would particularly like to focus on activities concerned with the environmental aspects of biotechnology. I welcome the fact that OECD wished to give priority to biotechnology use and regulations in member countries. I think that the updating of the BIOTRACK data base containing information on the release by member countries of organisms into the environment might encourage the setting up of a protective system against the abusive and/or hazardous use of biotechnology.
This activity is consonant with the wishes expressed by the committee in its opinion on the report on developments in biotechnology and the consequences for agriculture, presented by the Parliamentary Assembly's Committee on Agriculture (Rapporteur: Mr Gonzalez-Laxe). In this opinion, the committee referred to the need to exercise strict control and develop international co-operation.
The committee, which is moreover participating in preparations for the conference being organised by the Council on 24 and 26 November on the potential long-term ecological impact of the dissemination of genetically modified organisms (GMOs), welcomes the fact that OECD will also be taking part in it and hopes that this event will mark the beginning of fruitful co-operation between both organisations in such an important area.
3.6. Activities with non-member countries
This heading covers the activities launched after the first pan-European conference of Environment Ministers, held in Dobris Castle near Prague. Since then a second pan-European conference has been held in Lucerne and OECD took an active part in preparations for it.
The Rapporteur regrets that in this section of the report devoted to preparations for the Lucerne conference, no mention is made of the Council of Europe which was in charge of that part of the conference concerned with nature conservation.
On the other hand, the committee welcomes the large number of activities conducted by OECD alone or in co-operation with other international organisations in the countries of central and eastern Europe on various environmental subjects such as chemicals management, environmental policy and a market economy, environmental liability and privatisation, etc.
OECD's experience will clearly be of invaluable assistance to the countries of central and eastern Europe in their process of transition to a market economy. The joint steps taken with other international organisations, especially potential providers of funds, must be welcomed as a useful means of helping to put OECD "theory" into practice.
3.7. Urban affairs
I would like to draw attention to the activities in this chapter which concern environmental improvement through urban energy management. This project, which will be continuing throughout 1993, is aimed at the production of a handbok on "good practices in urban energy management".
The committee has always devoted particular attention to local authority issues and is convinced that these authorities have an important role to play in environmental protection and the judicious management of natural resources. Consequently, it can only welcome such activities with which the Standing Conference of Local and Regional Authorities of the Council of Europe could usefully be associated (this wish has already been expressed in the past).
4. Rural development
In its opinion on the activities of OECD in 1990, the committee welcomed the recommendation of the organisation's Council of Ministers that a programme for work on rural development issues be designed. While deeply regretting that the Committee of Ministers of the Council of Europe had not seen fit to give any follow-up to the Campaign for the Countryside mounted by the Council of Europe, the Assembly did welcome the fact that OECD had, as it were, taken over from the Council of Europe in this sphere.
In 1992 work concentrated on providing an international description of the situation in rural areas and proposing a framework for the analysis of rural development policies. A report entitled "Rural development policy" was made available to ministers at their meeting in May 1992. One of the most interesting aspects of this report is that it shows the diversity and variety of the measures employed by member governments to promote rural development.
Further activities in this sphere concerned rural indicators, an analysis of the relationship between agricultural policies and rural development, etc.
As it has done in the past, the committee can only welcome this activity which is certainly of great value. Rural areas are facing real problems which must be solved. OECD's action in this domain will help to ensure integrated rural development.
5. Environment and development
The Development Co-operation Directorate helped to prepare OECD's contribution to the conference in Rio. The conclusions adopted at that conference have given fresh impetus to the directorate's activities to promote sustainable development and have strengthened collaboration with other parts of the organisation.
The OECD Council has encouraged member countries to share their energy policy experiences and expertise with interested developing countries. To this end, the IEA has set up the Greenhouse Gas Technology Information Exchange (GREENTIE), the purpose of which is to match users and suppliers of environmentally sound greenhouse gas technology.
The Assembly is extremely aware of the matter of the greenhouse effect. The Committee on the Environment and the Committee on Agriculture will be looking into the problems of energy and the environment at a forthcoming parliamentary hearing. The greenhouse effect caused by fuels will certainly be examined in this context. A scheme like the IEA's GREENTIE project will undoubtedly help towards finding an answer to this crucial environmental problem.
C. Amendments to be included in the OECD draft resolution
To add a sub-paragraph viii to paragraph 10:
—we lcomes the activities undertaken in co-operation with the central and east European countries in order to help them resolve crucial environmental problems and establish environmental policies which do not compromise their economic and industrial development, within the framework of their transition towards market economies.To
To add the following paragraphs after the last paragraph:
16. As far as environmental and natural resources protection are concerned, the Assembly welcomes the development and restructuring of the organisation's environmental sector, which will allow it to respond in the best possible way to the aims and priorities the latter has commited itself to.
17. It encourages OECD to:
—pu rsue, through the International Energy Agency (IEA) and the OECD Nuclear Energy Agency (NEA), the activities related to the conception and setting up of environmentally favourable energy policies which, taking into account the renewable energy potential and based on energy solidarity would contribute to ensuring sustainable development of the planet;—
—de velop the work on internalisation of environmental costs and possible fiscal measures in this field;—
—gi ve priority to studying, in co-operation with other international organisations, the crucial problem represented by nuclear power plants in central and east European countries;—
—gi ve priority to implementing the environmental action programme in central and eastern Europe, adopted at the Environmental pan-European Ministerial Conference in Lucerne, in April 1993;—
—co ntinue implementation of the guidelines fixed by the 1992 Ministerial meeting "Strategy for the 90s", notably evaluation of the member states' performances in the environmental field which must contribute to the dynamic development of the national environmental policies respecting the economic development, and the principles of sustainable development as defined in the Brundtland report;—
—de velop activities concerning the environmental problems of towns, notably those concerning energy, and associate the Council of Europe Standing Conference of Local and Regional Authorities with this work;—
—co ntinue contributing, in co-operation with other other European and international organisations concerned, to the implementation of the conclusions of the Rio Conference on the Environment and Development.Re
Reporting committee: Committee on Economic Affairs and Development (Doc. 6900).
Committee for opinion: Committee on the Environment, Regional Planning and Local Authorities (and competent committees).
Reference to committee: Doc. 6897 and Reference No. 1893 of 3 September 1993.
Opinion approved by the committee on 2 September 1993.