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Energy policy as a national responsibility

Energy policy – a matter of economic and political importance for trade unions

Germany’s future as an industrial base, and the upturn that is urgently needed in the country’s employment situation, depend on whether we are able to establish a long-term power supply policy that is capable of providing us with reliable, efficient and cost-effective energy.

The much-quoted process of globalisation and the deregulation of international and European markets cannot alter the essential fact that the provision of energy is primarily a national responsibility. The political events in eastern Europe, the economic crises in Asia and South America and even the bewildering ups and downs of oil and gas prices have again demonstrated that the world has some way to go before achieving stability and continuity – either in economic or political terms, and certainly when it comes to the energy markets. Energy, in whatever form, is essentially an economic and strategic asset of enormous importance and for this reason its future will be much more crisis-prone than any other commodity.

Energy consensus as a starting point

Any viable, forward-looking energy policy, according to the IG BCE, can only be based on a consensus of the key principles, that is to say there must be a minimum of agreement between producers and consumers and between the relevant social and political groups, otherwise the inevitable result will be disorientation or even energy embargoes. This consensus should be about much more than setting regulations on the operating life of power stations – in fact such agreements have already been concluded - and must be extended to include all essential aspects of energy policy. A truly workable consensus requires a good awareness of reality and a genuine preparedness to balance out the different objectives and interests. The IG BCE will continue to push for a comprehensive energy consensus and expects that a future-oriented energy policy will safeguard and develop the tried and tested formula of the energy-mix system. The guiding principles must be based on the balanced co-existence of the various energy sources and types of production. This has become a macro-economic necessity, given the massive investment involved and the stability and dependability needed to make it work.

The energy-mix formula has proved its worth

The practised energy mix of coal, oil, gas and nuclear power has proved effective in many respects and this formula has constituted the basis for Germany’s successful economic model – and indeed continues to do so. Given anticipated developments worldwide the energy-mix offers the best prerequisites for risk protection. In this respect our two indigenous fuels, namely coal and lignite, must be retained as important safeguards and must continue to supply a substantial sector of the power generation market.

Responsible management of nuclear energy

Notwithstanding the agreement between the Federal Government and the power supply companies, the IG BCE is sticking to its views on the phasing-out of nuclear energy, namely that the decision on whether new and more-reliable forms of nuclear-power technology are to be used should be left to future generations. R & D work in this field must not be abandoned or prevented if we are to safeguard this essential energy option. The responsible management of nuclear energy will still require the development of a feasible waste disposal concept under national accountability. Interim storage is as much part of this concept as immediate processing at a permanent disposal site. Germany is generally acknowledged to be world leader in this field. The fixed-term moratorium on the Gorleben permanent disposal facility must not be allowed to create inertia or even to cause cracks to appear in the system. The IG BCE is convinced that the energy consensus has an essential contribution to make towards safeguarding jobs in the power industry. It would be disastrous if the withdrawal from nuclear energy were to be made on the backs of the employees. For this reason the restructuring programme needs to be organized in a socially responsible way and lost jobs must be replaced by new ones. This applies to the waste disposal sector as much as to any other, for here – as well as providing a social cushion – it is vital that we retain the existing technical and scientific know-how.

Indigenous coal still part of the mix

As far as the IG BCE is concerned German coal and lignite will continue to be an indispensable part of any future-oriented energy supply structure. There is much more to this argument than merely safeguarding jobs. It is for this reason that the IG BCE will continue its vigorous opposition to any attempts to phase-out lignite mining in the east and in the western parts of the country. The German lignite industry is a competitive business and has set new international standards for production, fuel processing, environmental protection and recultivation. The German coal industry is currently going through a process of adaptation that has placed an enormous strain on its employees. The European Commission’s decision to approve State aid to the coal industry for 2000 and 2001 has again provided the legal assurances needed in this area. Of decisive importance is the fact that the EU’s decision has not infringed the Bonn ‘coal compromise’ of 1997. The total amount of aid allowable has not changed. There will be no further pit closures until 2005. The Federal Government and North Rhine-Westphalia are keeping to their financing commitments and are therefore standing by the 1997 compromise. A new regulation on coal aid now has to be agreed before the expiry of the ECSC Treaty in the summer of 2002. Minister-Present Clement seems to have come up with a solution by way of a proposal - which is backed by the Federal Minister for Economic Affairs - allowing any EU Member State to subsidize up to ten percent of its primary energy needs without authorization from the Commission. The EU’s Green Paper on security of energy supply has still not given the go-ahead for such an arrangement. What needs to be negotiated concurrently is a follow-up regulation for the period after 2006, which would have its own legal status and at the same time constitute one of the pillars supporting the Clement model.

Protecting and creating jobs

The energy-policy debate is based around a triangle of objectives: security of supply, economic efficiency and sustainability. The IG BCE believes that an addendum is required here. The energy sector itself provides employment for hundreds of thousands of people and is one of the cornerstones of the entire industrial system. What is more, an enormous number of other industries and jobs depend on it. For this reason energy-policy decisions must always be assessed against the background of their social and structural impact. In this extended sense employment has to be incorporated as a fourth element in the energy policy-making process. As far as the IG BCE is concerned, protecting and creating jobs remains crucial and the association’s verdict on the deregulation of the electricity and gas markets and the restructuring of the industry will be ultimately depend on whether the Federal Republic remains an energy base and consequently is able to safeguard jobs and prosperity.

Energy policy and sustainability

The environmental compatibility of energy production and consumption has to be further strengthened by a policy of consistent conservation of resources, rational energy utilization and greater economizing. By pressing ahead with the development of renewable energies it should be possible to preserve the opportunities that exist – even though these may be very long-term – for a radical change in the energy production process The IG BCE fully accepts that sustainability and environmental compatibility have now become an important energy-policy yardstick. Yet Germany will still have to rely on the current energy mix for the foreseeable future. For this reason it cannot be right for energy policy makers to be focussing almost all their attentions on the promotion of so-called alternative energies, while the traditional fuels – which still constitute the mainstay of the German energy supply system – are regarded as being unimportant and outmoded, and are even being subjected to massive restrictions.

Source: IG BCE (Industrial Union for Mining, Chemicals and Energy), October 2002