18 DE ABRIL DE 1996

636-(37)

energy and for consequently reducing adverse Environmental Impacts of energy systems. It futhermore provides guidance on the development of energy efficiency programmes, indicates areas of cooperation and provides a framework for the development of cooperative and coordinated action. Such action may include the prospecting for, exploration, production, conversion, storage, transport, distribution, and consumption of energy, and may relate to any economic sector. 2) The objectives of this Protocol are:

a) The promotion of energy efficiency policies consistent with sustainable development;

¿7) The creation of framework conditions which induce producers and consumers to use energy as economically, efficiently and environmentally soundly as possible, particularly through tine organization of efficient energy markets and a fuller reflection of environmental costs and benefits; and

c) The fostering of cooperation in the field of energy efficiency.

Article 2 Definitions

As used in this Protocol:

1) «Charter» means the European Energy Charter adopted in the Concluding Document of the Hague Conference on the European Energy Charter signed at The Hague on 17 December 1991; signature of the Concluding Document is considered to be signature of the Charter;

2) «Contracting Party» means a state or Regional Economic Integration Organization which has consented to be bound by this Protocol and for which the Protocol is in force;

3) «Regional economic integration Organization» means an organization constituted by states to which they have transferred competence over certain matters a number of which are governed by this Protocol, including the authority to take decisions binding on them in respect of those matters;

4) «Energy Cycle» means the entire energy chain, including activities related to prospecting for, exploration, production, conversion, storage, transport, distribution and consumption of the various forms of energy, and the treatment and disposal of wastes, as well as the decommissioning, cessation or closure of these activities, minimizing harmful environmental impacts;

5) «Cost-effectiveness» means to achieve a defined objective at die lowest cost or to achieve the greatest benefit at a given cost;

6) «Improving energy efficiency* means acting to maintain the same unit of output (of a good or service) without reducing the quality or performance of the output, while reducing the amount of energy required to produce that output;

7) «Environmental impact» means any effect caused by a given activity on tine environment, including human health and safety, flora, fauna, soil, air, water, climate, landscape and historical monuments or other physical structures or the interactions among these factors; it also includes effects on cultural heritage or socio-economic conditions resulting from alterations to those factors.

PART n Policy principles

Article 3 Basic principles

Contracting Parties shall be guided by the following principles:

1) Contracting Parties shall cooperate and, as appropriate, assist each other in developing and implementing energy efficiency policies, laws and regulations;

2) Contracting Parties shall establish energy efficiency policies and appropriate legal and regulatory frameworks which promote, inter alia: ,

a) Efficient functioning of market mechanisms including market-oriented price formation and a fuller reflection of environmental costs and

. benefits;

b) Reduction of barriers to energy efficiency, thus stimulating investments;

c) Mechanisms for financing energy efficiency initiatives;

d) Education and awareness;

e) Dissemination and transfer of technologies;

f) Transparency of legal and regulatory frameworks;

3) Contracting Parties shall strive to achieve the full benefit of energy efficiency throughout the energy cycle. To this end they shall, to the best of their competence, formulate and implement energy efficiency policies and cooperative or coordinated ac-tions-based on cost-effectiveness and economic efficiency, taking due account of environmental aspects;

4) Energy efficiency policies shall include both short-term measures for the adjustment of previous pratices and long-term measures to improve energy efficiency throughout the energy cycle;

5) When cooperating to achieve the objectives of this Protocol, Contracting Parties shall take into account the differences in adverse effects and abatement costs between Contracting Parties;

6) Contracting Parties recognize the vital role of the private sector. They shall encourage action by energy utilities, responsible authorities and specialised agencies, and close cooperation between industry and administrations;

7) Cooperative or coordinated action shall take into account relevant principles adopted in international agreements, aimed at protection and improvement of the environment, to which Contracting Parties are parties;

8) Contracting Parties shall take full advantage of the work and expertise of competent international or other bodies and shall take care to avoid duplication.

Article 4

Division of responsibility and coordination

. Each. Contracting Parties shall strive to ensure that energy efficiency policies are coordinated among all of its responsible authorities.