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Emphasis on renewable energy sources25 February 2008

The European Union promotes the exploitation of alternative or renewable energy sources, as well as energy saving in member states by earmarking a total of 9 billion Euros for this purpose up to 2013. Hungary envisages using 359 million Euros of EU funding in this area.

According to the statement made by European Commissioner for Regional Policy Danuta Hübner at the press conference held in Brussels, the source of the funding is a framework for closing the gap between developed and under-developed regions and sectors. Moreover, the Commissioner urges that the highest possible amount of funding should be spent for this purpose from the 63.8 billion Euro framework earmarked for research development. The Commissioner has already indicated that – beyond the above-mentioned framework - the Commission shall provide support for member states for fulfilling the commitments they have assumed towards increasing the share of renewable energy sources.

Hübner presented an overview of the relevant sections of the 450 so-called operational programmes compiled by the 27 member states - and approved by the Commission – for using funding aimed at closing the gap.

According to the Commission’s statement, a total of 359 million Euros of EU funding has been earmarked for Hungary between 2007 and 2013 for the development of renewable energy sources and improving energy efficiency. The country will be able to spend 43.5% of this framework on projects targeting the improvement of energy efficiency, as well as energy production and management. The highest proportion, namely 31.6% of the renewable energy framework will be allocated for biomass production. 9.89% of the total framework can be invested in hydro energy, geothermal energy obtained by tapping the heat of the earth, as well as other objectives. Nearly 8% of the total rate of EU funding is allocated to solar energy and approximately 7% to wind energy, to which funding to be used for the same purposes and transferred from the state budget is naturally added.

Last year the Heads of State or Government of the EU member states endorsed an agreement to increase the use of renewable energy to 20% by 2020. This ratio is currently well under 10%. According to the joint concept, each member state – in line with capacities – assumes obligations for increasing use. The European Commission was required to make a proposal for defining the proportionate and solidarity-based expenses underlying the fulfilment of commitments. In its proposal presented in January, the Commission put forth that member state commitments should be between 10% and 49% - the lower limit is defined for Malta, which member state has very little of these types of resources, whilst the upper limit would apply to Sweden, which member state is currently already performing above the average target value. Hungary needs to double its reliance on renewable energy sources up to approximately 13% according to the proposal, which nevertheless still needs to be approved by the member states of the EU.