High-Level Meeting of the French-Dutch Cooperation Council

Toespraak | 11-01-2011

Mesdames et messieurs, [chers amis,]

Quel plaisir de vous voir – ou revoir – ici aujourd’hui. Notre dernière rencontre en mai, que j’ai coprésidée en tant que ministre des Affaires Etrangères, avait pour thème: “Comment sortir de la crise ?”

Depuis, j’ai inauguré le ministère des Affaires économiques, de l’Agriculture et de l’Innovation, avec un département de l’énergie renforcé. Mon collègue Eric Besson, lui, a fortifié son ministère en y ajoutant l’énergie. On peut dire qu’il y a du mouvement dans nos pays au niveau administratif!

Permettez-moi de continuer en anglais.

During the last meeting, we set out plans for a bilateral conference on energy. I am glad that these plans have now materialised and that so many of you are here for today’s ‘regards croisés sur l’énergie’.

We do indeed share perspectives on energy. France, the Netherlands and the rest of the European Union have a common goal: to create a secure, low-carbon and affordable energy future. A future that promotes economic growth and guarantees prosperity for all citizens.

[Priorities for Dutch energy policy]

I believe that you, the energy companies, are essential to secure that future. Energy is business. Big business. That is why I am taking an economic approach to energy policy. We need to allow for strong energy companies. To stay ahead of the competition, our energy policy must first and foremost be economically sustainable.

We mustn’t confront companies nor government treasuries with unrealistic demands over and above the 2020 targets. Instead, we need to differentiate between long-term and short-term goals.

In the short-term, we need to do all we can to meet the EU 2020 targets for renewable energy at the lowest cost. For the Netherlands, this means committing to onshore wind and biomass. The roll-out of these technologies can be achieved fairly quickly and without massive government funding.

To reach our long-term goals, we need to stimulate innovation. Our budget is limited, so we will have to focus. Where do our strengths lie? Where can we excel? Every EU member state should focus on what they do best.

[Priorities for European cooperation on energy]

This brings me to the European dimension, as we head towards the EU Council on Energy next month.

You all know the story of the French diplomat in NATO who asked Paris for instructions. The response from Paris was: 'Whatever the Dutch say, just say the opposite.'

That story may have held some truth within NATO at one time, but it is certainly not true in the EU today. Not always, at least! General de Gaulle might even have liked our position on subsidiarity.

One lesson of the past few years is that the EU should act only when it can do something better and more effectively than states acting at national level. We learned this the hard way, both in Holland and in France, when public opinion rejected any perceived hint of European centralisation. Translated into European energy policy, this means, for instance, that I am not in favour of binding EU efficiency targets.

Having said that, I see a clear case for intensifying European cooperation in five areas.

The first is energy security. We are increasingly dependent on energy supplies from outside. Europe needs to take a strong stance, especially in times of crisis and when energy companies face obstacles in external markets.

Second is the development of a well-functioning internal market. We see the Third Energy Package as a major step forward. With one caveat: we believe only companies like yours can effectively integrate markets. The EU should serve primarily to facilitate that process.

A third area of cooperation is infrastructure. We need greater interconnectedness to enhance energy security and increase market integration, including the market for renewables. But we oppose massive EU funding for energy infrastructure. That would distort markets. So how can we create incentives for companies to invest in more extensive networks? This is a key question. We are happy that the Commission is looking into it.

Fourth, I believe we should intensify cooperation on innovation in energy technology.

And finally, renewables. We should avoid subsidy competition and create a level playing field. Every country needs to do what they do best.

Alongside renewables, Holland is promoting gas in the energy mix and pursuing a gas hub strategy. Why? Because the transition to a fully sustainable energy household will take decades, so we need alternatives. Gas is the cleanest of the fossil fuels. And it is flexible. This makes gas both a transition and a destination fuel. I will work together with France and other north-western countries to elaborate the EU's long-term ambitions for gas and its role in the future energy mix.

[Opportunities for French-Dutch cooperation]

What does all this mean for French-Dutch cooperation on energy? What does it mean for you in the energy business? The short answer is: opportunities, opportunities, opportunities.

This is why you are all here today. From France: GDF Suez, EDF, Total, Areva and Alstom; and from Netherlands: Shell, Gasunie, TenneT, GasTerra and URENCO.

We are proud of how French and Dutch companies work together to deliver energy in both countries through pipelines, storage facilities and power stations. Our countries are far more connected than the average citizen might be aware of.

We acknowledge the contribution foreign companies make to our energy sector and we will continue to welcome direct investment from French companies. Some of your ambitions are making headlines in Dutch newspapers, from nuclear power plants to gas storage facilities. I wish you every success with these projects.

At the same time, we attach great value to French support for Dutch businesses operating in France. In the north, GasTerra wants to be a solid supplier of gas for many decades to come. In the south, near Marseilles, Vopak and Shell are preparing to build an LNG terminal.

But there are many more opportunities to be seized. Innovation is key to securing our energy future. And your future as energy companies, too. Who will be the leading players in 2020? And in 2050? I believe innovation will be a decisive factor.

Your companies are already working on new technologies and solutions for the energy and climate challenges ahead. And so are many innovative newcomers and research institutes in both our countries.

We can benefit greatly from each other’s knowledge and experience. This is why we started a working group on innovation and small-and-medium-sized enterprises two years ago. And why Dutch delegations from the renewable energy sector recently visited France and are planning new activities for this year.

Dutch companies and knowledge institutions have a lot to offer in the field of offshore wind, solar PV and biomass.

I know France plans to develop its wind energy sector. We would be a first-rate partner, especially in the field of wind turbine maintenance, installation and transportation. The Netherlands is a perfect location for testing and assembling turbines as well.

Our two countries signed the MoU on the North Sea Grid Initiative last month. My ministry and companies such as TenneT are interested in sharing experiences with respect to regulations, licenses and policies.

Along similar lines, we can benefit from your extensive experience with nuclear energy. We would welcome proposals for a nuclear power plant – provided safety is guaranteed.

I am looking forward to discussing many of these topics with my French colleague Eric Besson. We spoke briefly in Brussels in December and have agreed that we will meet up soon.

To conclude, there are many opportunities for both our countries and our companies to explore. We can learn from each other, we can encourage each other to innovate and we can work jointly to strengthen European energy policies. Not only at the European Council on the fourth of February. But also at the G20 meeting later this year.

I trust that France, as chair of the G20 this year, will ensure that the leading economies of the world make progress in tackling issues such as fossil-fuel subsidies.

Ladies and gentlemen, since this is a French-Dutch Cooperation Council, I trust that plenty of action points will emerge from today’s meeting.

Thank you.