development. The Protocol is structured in five parts including basic policy principles, strategies, international co-operation and legal arrangements. Effectively, the Protocol: Defines policy principles tor the promotion of energy efficiency it is good timing tor concentrated and co-ordinated action in implementing these obligations due to several factors: Countries with economies in transition are in general in a key point of the process of restructuring their economies, with energy consumption down and economics taking off on a new, market oriented The Protocol aims to Provides a framework tor the development of cooperative and co-ordinated action support energy efficiency in the counbasis; sustainable development is based on present cost-effective supply and demand energy policies; Provides guidance on the development of energy efficiency programmes tries concerned by creating a legal frame- Volatility of the oil prices during lası years are a clear indication that the issue of security of supply has to be a continuous component of the energy policies; work to achieve increased energy efficiency lndicates areas of co-operation. and reduce the negative impact on our common environment. energy efficiency measures have to be judged also against their contribution to securing security of supply; The Protocol includes specific commitments, which are essential in improving energy efficiency and reducing harmful environmental impacts. in !his context, the Protocol clearly stipulates that Governments shall: Formulate aims and strategies (art. 5) Establish policies (art 3.2) Develop, implement, update programmes (art 8.1) Create the legal (art 3.2) regulatory (art 3.2) institutional (art 8.3) environment necessary Cooperate/assist internationally (art 3.1) it is of vital importance tor countries, notably tor those with economies in transition, to implement the principles and commitments laid out in the Protocol. Without application of principles through which market signals will create incentives tor participants in the economy to behave energy consciously and efficiently, government-funded activities and programmes will not reach their objectives. Scarce Government resources may be wasted, as energy efficiency will not improve. PEEREA entered into force in April 1998. lts entry into force almost coincided with the Aarhus Ministerial Conference on Environment in Europe. Therefore the commitments made by the ministers in Aarhus in the area of energy efficiency are very much in line with the provisions of PEEREA, which implementation they support. Amongst the Aarhus commitments of particular importance is the one regarding the phase out of energy prices subsidies with a harmful effect on the environment by 2005. Implementation of the Protocol The Protocol aims to support energy efficiency in the countries concerned by creating a legal framework to achieve increased energy efficiency and reduce the negative impact on our common environment. it is the first time that all the wellknown principles of energy efficiency have been incorporated into a legally binding document supported by so many countries. lnstruments developed to improve energy efficiency are associated with and support actions oriented towards a cleaner environment. After Kyoto, the emphasis on energy efficiency as a major tool in achieving the assumed obligations is higher than before, mainly in the OECD countries; Governments have to play an important role in creating instruments tor improving energy efficiency in parallel with market mechanisms being in place and able to lead to energy efficiency improvements; Recent experience of the countries with economies in transition indicates that in the absence of appropriate legislation and domestic programmes, the results of technical and financial assistance provided by lnternational Organisations are limited; The potential benefits of cogeneration and district heating would not be reached in the absence of a clear and operational framework aimed at addressing the problems linked to the existence and bad maintenance of the old district heating systems; Globalisation brings more competition and fewer opportunities tor protectionism of domestic industries, which need to adap! to high standards of efficiency in order to be able to survive and to contribute to the national GDP in this new international economic environment. it is in the context of the general market reform and under the circumstances described above that now the Protocol can play an important role in addressing energy efficiency aspects which are of major importance in the process of developing and restructuring the economy and improving the standard of living. in accordance with the provisions of the Protocol, important aspects to be considered in developing and implementing cost-effective energy efficiency policies include: Developing energy efficiency strategies and legislation as well as monitoring their implementation. it is one of the basic commitments under PEEREA that ECOGENERATION WORLD �
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