L 52/50 Official Journal of the European Union 21.2.2004 DIRECTIVE 2004/8/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 11 February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Com- munity, and in particular Article 175(1) thereof, Having regard to the proposal from the Commission (!), Having regard to the opinion of the European Economic and Social Committee (), Having regard to the opinion of the Committee of the Regions (°), Acting in accordance with the procedure laid down in Article 251 of the Treaty (4, Whereas: (1) The potential for use of cogeneration as a measure to save energy is underused in the Community at present. Promotion of high-efficiency cogeneration based on a useful heat demand is a Community priority given the potential benefits of cogeneration with regard to saving primary energy, avoiding network losses and reducing emissions, in particular of greenhouse gases. In addition, efficient use of energy by cogeneration can also contri- bute positively to the security of energy supply and to the competitive situation of the European Union and its Member States. It is therefore necessary to take measures to ensure that the potential is better exploited within the framework of the internal energy market. (2)  Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 () establishes common rules for the generation, transmission, distribution and supply of electricity within the internal market in electri- city. In this context, the development of cogeneration contributes to enhancing competition, also with regard to new market actors. (3)  The Green Paper entitled ‘Towards a European strategy for the security of energy supply’ points out that the European Union is extremely dependent on its external () O] C 291 E, 26.11.2002, p. 182. () 0] € 95, 23.4.2003, p. 12. () O] C 244,10.10.2003, p. 1. (*) Opinion of the European Parliament of 13 May 2003 (not yet published in the Official Journal), Council Common Position of 8 September 2003 (not yet published in the Official Journal) and Posi- tion of the European Parliament of 18 December 2003 (not yet published in the Official Journal). () OJ L 176, 15.7.2003, p. 37. energy supplies currently accounting for 50% of requirements and projected to rise to 70 % by 2030 if current trends persists. Import dependency and rising import ratios heighten the risk of interruption to or diffi- culties in supply. However, security of supply should not be conceived as merely a question of reducing import dependency and boosting domestic production. Security of supply calls for a wide range of policy initiatives aimed at, inter alia, diversification of sources and technol- ogies and improved international relations. The Green Paper emphasised furthermore that security of energy supply is essential for a future sustainable development. The Green Paper concludes that the adoption of new measures to reduce energy demand is essential both in terms of reducing the import dependence and in order to limit greenhouse gas emissions. In its Resolution of 15 November 2001 on the Green Paper (°), the Euro- pean Parliament called for incentives to encourage a shift towards efficient energy production plants, including combined heat and power. The Commission's Communication ‘A Sustainable Europe for a better world — A European Union Strategy for Sustainable Development’ presented at the Gothen- burg European Council on 15 and 16 June 2001 identi- fied climate change as one of the principal barriers to sustainable development and emphasised the need for increased use of clean energy and clear action to reduce energy demand. The increased use of cogeneration geared towards making primary energy savings could constitute an important part of the package of measures needed to comply with the Kyoto Protocol to the United Nations Framework Convention on Climate Change, and of any policy package to meet further commitments. The Commission in its Communication on the implementa- tion of the first phase of the European Climate Change Programme identified promotion of cogeneration as one of the measures needed to reduce the greenhouse gas emissions from the energy sector and announced its intention to present a proposal for a Directive on the promotion of cogeneration in 2002. In its Resolution of 25 September 2002 on the Commis- sion communication on the implementation of the first phase of the European Climate Change Programme (), the European Parliament welcomes the idea of submit- ting a proposal to strengthen Community measures to promote the use of combined heat and power (CHP) and calls for prompt adoption of a Directive on the promo- tion of CHP. 3.6.2002, p. 543. 4.11.2003, p. 172. —_—