INTRODUCTION

In its Green Paper “Towards a European Strategy for Energy Supply” the Commission highlighted three main points:

• The European Union will become increasingly dependent on external energy sources; enlargement will reinforce this trend. Based on current forecasts, if measures are not taken, import dependence will reach 70% in 2030, compared to 50% today.

• At present, greenhouse gas emissions in the European Union are on the rise, making it difficult to respond to the challenge of climate change and to meet its commitments under the Kyoto Protocol. Moreover, the commitments made in the Kyoto Protocol must be regarded as a first step; climate change is a longterm battle involving the entire international community.

• The European Union has very limited scope to influence energy supply conditions. It is essentially on the demand side that the EU can intervene, mainly by promoting energy savings in buildings and in the transport sector.

These observations provide strong reasons to economise the use of energy wherever possible. The residential and tertiary sectors have been shown to be the largest overall end users, mainly for heating, lighting, appliances and equipment. Numerous studies and practical experience show that there is a large potential for energy savings here, probably larger than in any other sector. Member State and Community efforts to realise this potential need, therefore, to be intensified.