The initiative is part of the commission's Europe-Asia Cooperation Strategy for Energy programme which is designed for the mutual benefit of Asia and Europe. Whereas the participating Asian country will be able to avail itself of the technological and financial assistance, Europe will have a big market for its products and services.

According to EC, the Asian region is becoming a prominent market with a large consumer base. The energy sector in Asia will notice a high growth rate in the future. The region could be consuming around 28 per cent of the world's energy followed by Europe with 13 per cent. For development of the energy sector, the third world canlearn from the experience of Europe which introduced reforms a long time age, said EC officials. They added that each country would, however, have to modify the model according to its own needs and resources.

The main objectives of the programme, thus, are to strengthen regional trade between Asia and Europe, to participate in the Asian energy markets and protect the global environment. The advanced technology offered by European companies will be more environment-friendly as the commission has already formulated strict norms for environment protection, officials said. However, for developing nations, social and economic factors will be considered while defining the environmental aspects, they added.

Power, which represents about 80 per cent of the total investment in Asia every year, has been accorded top priority under the co-operation programme.

However, with lack of awareness, initiative and resources for implementing co-generation power projects and use of advanced technology for coal-based plantsto reduce pollution and electrification in rural areas, the commission has first decided to give these areas priority, officials said. It will also give special attention to projects targeting energy conservation, reduction of energy losses during generation, transmission and distribution.

Selection of the project and involvement of technological and financial assistance will be worked out on a case-to-case basis. The commission, however, would avoid any duplication with bilateral activities undertaken by member states. It will concentrate on those projects which have a real European `added value' compared with the bilateral projects carried out by member states, the commission said.

Identification of mutual interest between Asia and Europe will be the starting point to justify each new project. The projects should be able to sustain on their own after a period of time.

The involvement of the commission should be regarded as a catalyst to initiate dialogue or exchange between Asian and European playersand will, therefore, be only for a limited period.

The projects will also be able to have better access to the services of several multilateral organisations such as the European Investment Bank, United Nations Development Programme (UNDP), World Bank and Asia Development Bank. As part of the programme, the commission will also discuss and propose policy initiatives and implementations based on the European experience. Other areas which can also be included in the programme are nuclear energy, oil and oil products and hydropower.