Maritime Rapporteurs Report 2024

33BSPCYEARSBerlin , 27 – 29 August 2023Report by the Rapporteur of theBaltic Sea Parliamentary Conference (BSPC)on Developments in Integrated Maritime PolicyJuly 2024The BSPC Rapporteur’s Report 2023/ 2024 on Integrated The Baltic Sea Parliamentary Conference (BSPC) was established in 1991 as a forum for po-Maritime Policy litical dialogue between parliamentarians from the Baltic Sea Region. The BSPC aims to© Schwerin, July 2024 raise awareness and opinion on issues of current political interest and relevance for the Bal-tic Sea Region. It promotes and drives various initiatives and efforts to support the sustain-able environmental, social and economic development of the Baltic Sea Region. It strives toenhance the visibility of the Baltic Sea Region and its issues in a broader European context.Text: Jörgen Pettersson BSPC gathers parliamentarians from 10 national parliaments, 7 regional parliaments and 5Editing: Bodo Bahr parliamentary organisations around the Baltic Sea. The BSPC thus constitutes a unique par-liamentary bridge between the democratic EU- and non-EU countries of the Baltic Sea Re-Layout: produktionsbüro TINUSgion. BSPC external interfaces include parliamentary, governmental, subregional and otherorganisations in the Baltic Sea Region and the Northern Dimension area, among themCBSS, HELCOM, the Northern Dimension Partnership in Health and Social Well-Be-ing (NDPHS), the Baltic Sea Labour Forum (BSLF) and the Baltic Sea States SubregionalBaltic Sea Parliamentary Conference Bodo BahrCooperation (BSSSC).Secretary GeneralThe BSPC shall initiate and guide political activities in the region; support and strengthen+49 171 5512557democratic institutions in the participating states; improve dialogue between governments,bodo.bahr@bspcmail.netparliaments and civil society; strengthen the common identity of the Baltic Sea Region bywww.bspc.net means of close cooperation between national and regional parliaments based on equality;and initiate and guide political activities in the Baltic Sea Region, endowing them with ad-ditional democratic legitimacy and parliamentary authority.The political recommendations of the annual Parliamentary Conferences are expressed in aBSPC Secretariat Conference Resolution adopted by consensus by the Conference. The adopted ResolutionSchlossgartenallee 15 shall be submitted to the governments of the Baltic Sea Region, the CBSS and the EU and19061 Schwerin disseminated to other relevant national, regional and local stakeholders in the Baltic Sea Re-Germany gion and its neighbourhood.3ContentsPreface ...............................................................................................................................................................4List of Abbreviations ..........................................................................................................................................6Sustainable Maritime Strategies for the Baltic Sea .............................................................................................81. Emission Reduction and Competitiveness ...........................................................................................82. Maritime Transport ..........................................................................................................................83. Port Infrastructure ............................................................................................................................84. Maritime Safety ...............................................................................................................................85. Maritime Spatial Planning...............................................................................................................96. Impact of EU Emissions Trading System (EU ETS) on Shipping ........................................................97. Ship Financing ................................................................................................................................98. Future Engines and Technologies .......................................................................................................9Analysis of the Development of Future Fuel for Shipping in the Baltic Sea ....................................................10Summary of the EU Green Deal’s Impact on Shipping in the Baltic Seawith Inclusion of the Emissions Trading System (ETS) in Europe ..................................................................14The potential impact of the Russian ”shadow fleet” in the Baltic Sea Region .................................................16Preface 4PrefaceThe Maritime Sector in the Baltic Sea is amongst the largest in theworld, with roughly 15 % of global shipping or 2.000 ships constantlyin the area. The region is a vital maritime area facing many economic,environmental and security challenges. The Integrated Maritime Policy(IMP) for the Baltic Sea aims to address some of these issues. This reporthighlights recent developments and future directions of the IMP, focus-ing on critical areas such as emission reduction, competitiveness, mari-time transport, port infrastructure, maritime safety, maritime spatialplanning, the impact of the EU Emissions Trading System (EU ETS) onshipping and the potential risks with the Russian ”shadow fleet”. Jörgen PetterssonA critical aspect of the IMP is emission reduction, which is particularly important given the Baltic Sea’senvironmental sensitivity. The introduction of the EU ETS for shipping encourages cleaner shippingpractices, which may increase operational costs and potentially affecting competitiveness. Therefore, sup-porting technological innovation and providing financial assistance for adopting green technologies is es-sential, as is creating new and sustainable infrastructure for new fuels.The shift to low-sulfur fuels and alternative energy sources, such as LNG, reshapes the maritime land-scape. Enhancements in digitalization and automation in logistics are improving efficiency and reducingenvironmental impact, thereby boosting regional competitiveness.The Baltic Sea, a critical maritime corridor, is pivotal in global shipping and regional trade. The environ-mental challenges associated with traditional shipping fuels have necessitated a paradigm shift towardscleaner, sustainable alternatives. This delves into the evolving landscape of future fuels for shipping in theBaltic Sea, examining the regulatory framework, emerging technologies, and the various alternative fuelspoised to transform the industry.The stringent regulations imposed by the International Maritime Organization (IMO), particularly con-cerning sulfur and nitrogen oxide emissions, have set the stage for this transformation. As a designatedSulfur Emission Control Area (SECA), the Baltic Sea region is at the forefront of adopting innovativesolutions to meet these standards.Preface 5The EU Green Deal, including the shipping industry in the Emissions Trading System (ETS), acceleratesthe shift towards sustainable shipping practices in the Baltic Sea. The Green Deal provides the necessaryeconomic and infrastructural support by enforcing stricter emission standards, promoting alternative fu-els and supporting technological innovation. The ETS mechanism adds a financial incentive to reducecarbon emissions, further driving the adoption of green technologies. Through these comprehensivemeasures, the EU Green Deal significantly influences the future of shipping in the Baltic Sea, steering ittowards a more sustainable and environmentally friendly path.The ”shadow fleet” poses multiple threats in the Baltic Sea. The ageing and poorly maintained tankers in-crease the risk of maritime accidents and oil spills, which could have catastrophic environmental impactsin this ecologically sensitive and enclosed body of water. Furthermore, the fleet’s activities undermine in-ternational regulatory efforts and exacerbate regional security tensions, as countries bordering the BalticSea view these operations as economic and strategic aggression.The Russian shadow fleet, often called the dark fleet, represents a clandestine network of tankers and ves-sels that covertly transport Russian oil and petroleum products. This fleet has emerged as a response to thestringent international sanctions imposed on Russia, particularly following the annexation of Crimea in2014 and the invasion of Ukraine in 2022. The sanctions have aimed to curtail Russia’s oil revenues, a vi-tal component of its economy and geopolitical influence.The shadow fleet’s operation in critical maritime areas highlights the complexities of enforcing sanctionsand maintaining maritime security. Its existence underscores the lengths nations will go to circumventeconomic restrictions and the broader implications for global trade, environmental protection, and geo-political stability.The Baltic Sea region is at the forefront of maritime sustainability efforts, focusing on emission reduction,enhanced port infrastructure, and innovative maritime transport solutions. The Integrated Maritime Pol-icy provides a comprehensive framework to address these challenges and opportunities, ensuring a sus-tainable and competitive future for the marine sector. Continued collaboration among BSPC memberstates, industry stakeholders, and regulatory bodies is essential to achieve these ambitious goals.Jörgen PetterssonBSPC Rapporteur on Integrated Maritime PolicyList of Abbreviations 6List of AbbreviationsAEBR Association of European Border RegionsAER Assembly of European RegionsBALTFISH Baltic Sea Fisheries ForumBBNJ UN Treaty on the Conservation and Sustainable Use of Marine Biodiversity of Areasbeyond National JurisdictionBSPC Baltic Sea Parliamentary ConferenceBSR Baltic Sea RegionCALRE Conference of European Regional Legislative AssembliesCBAM Carbon border adjustment mechanismCBSS Council of Baltic Sea StatesCEMR Council of European Municipalities and RegionsCfD Contract for DifferenceCISE Common Information Sharing EnvironmentCLIA Cruise Lines International AssociationCOP Conference of the PartiesCoFoE Conference on the Future of EuropeCPMR Conference of Peripheral Maritime RegionsDG MARE Directorate-General for Maritime Affairs and FisheriesEBCD European Bureau for Conservation and DevelopmentEGSME Expert Group on Sustainable Maritime EconomyEC EU CommissionEEA European Environment AgencyEMD European Maritime DayEMFAF European Maritime, Fisheries and Aquaculture FundEMFF European Maritime and Fisheries FundEP European ParliamentESPO European Sea Ports AssociationETC European Travel CommissionEU European UnionEUMSS European Maritime Security StrategyList of Abbreviations 7EUSBSR European Union Strategy for the Baltic Sea RegionFSRU Floating storage and regasification unitGHG Greenhouse gasHELCOM Baltic Marine Environment Protection Commission/Helsinki CommissionICES International Council for the Exploration of the SeaIMO International Maritime OrganizationIMP Integrated Maritime PolicyIOC-UNESCO Intergovernmental Oceanographic Commission of the United Nations Educational,Scientific and Cultural OrganizationIOG International Ocean GovernanceIOW Institute for Baltic Sea Research WarnemündeIUCN International Union for Conservation of NatureIUU Illegal, unregulated and unreported fishingLNG Liquefied Natural GasMP Member of ParliamentMPA(s) Marine Protected Area(s)MS EU member state(s)MSP Maritime Spatial PlanningMSFD EU Marine Strategy Framework DirectiveMSP Maritime Spatial PlanningNGO(s) Non-Governmental Organisation(s)OECD Organization for Economic Co-operation and DevelopmentPML Plymouth Marine LaboratoryPSO South Baltic Parliamentary ForumR&D/R&I Research and Development/Research and InnovationSDGs UN Sustainable Development GoalsSOLAS International Convention for the Safety of Life at SeaSTECF Scientific, Technical and Economic Committee for FisheriesTAC Total allowable catchesUN United NationsUNCLOS United Nations Convention on the Law of the SeaUNESCO United Nations Educational, Scientific and Cultural OrganizationWTO World Trade OrganizationSustainable Maritime Strategies for the Baltic Sea 8Sustainable Maritime Strategies for the Baltic Sea1. Emission Reduction and CompetitivenessEmission reduction is a cornerstone of the Integrated Maritime Policy, given the Baltic Sea’s environmental sensi-tivity. The EU ETS for shipping, starting in 2024, is expected to drive significant CO2 emission reductions by in-tegrating maritime emissions into the broader EU carbon market. This initiative will incentivize cleaner shippingpractices, though it may also increase operational costs, potentially impacting competitiveness. Therefore, sup-porting technological innovation and providing financial assistance for adopting green technologies is crucial.2. Maritime TransportMaritime transport is vital for the Baltic Sea economy, which is characterized by high traffic density andsignificant fuel consumption. The transition to low-sulfur fuels and alternative energy sources, such asLNG, reshapes the maritime landscape. Digitalization and automation in logistics enhance efficiency andreduce environmental impact, contributing to the region’s competitiveness.3. Port InfrastructureInvestment in port infrastructure is essential to support the evolving needs of maritime transport. Portsincreasingly focus on sustainability, with facility upgrades, including shore-side electricity and improvedwaste management systems, reducing the environmental footprint. Enhancing connectivity with hinter-land transport networks and accommodating larger vessels are also priorities.4. Maritime SafetySafety is a top priority due to the Baltic Sea’s dense traffic and challenging weather conditions. Recent in-itiatives include advanced navigational aids, improved Vessel Traffic Services (VTS) and stringent safetyregulations. Collaboration among Baltic Sea countries is essential for effective maritime safety manage-ment through joint exercises, information sharing, and coordinated response strategies.Sustainable Maritime Strategies for the Baltic Sea 95. Maritime Spatial PlanningMaritime Spatial Planning (MSP) ensures the sustainable use of marine resources, balancing activitiessuch as shipping, fishing, tourism and energy production. Recent MSP efforts focus on integrating envi-ronmental protection with economic activities, designating marine protected areas, managing fisheriessustainably, and planning offshore wind energy development.6. Impact of EU Emissions Trading System (EU ETS) on ShippingThe EU ETS for shipping represents a significant policy shift, aiming to reduce maritime emissions by includingships above 5.000 GT. This system will phase in, covering 40 % of emissions in 2024, 70 % in 2025 and 100 %by 2026. While this will drive emission reductions, it will also introduce financial challenges, especially for oldervessels and smaller operators. Supportive measures, such as subsidies for green technologies and alternative fuelinfrastructure development, are essential.7. Ship FinancingThe ship financing landscape is evolving to meet the demands of a greener and more competitive mari-time sector. Financial institutions increasingly integrate environmental, social and governance (ESG) cri-teria into their lending practices. Key players offer tailored solutions to support sustainable investments,including green bonds and sustainability-linked loans. Ship financing faces challenges, including highnew building prices, front-heavy yard payment terms, long delivery times and high interest rates. There isalso the issue of securing reliable refund guarantees from shipyards in countries like China, Turkey andIndia. There needs to be a significant increase in financing capacity to support the green transition.8. Future Engines and TechnologiesFuture engine technologies highlight the shift towards sustainable and efficient maritime propulsion sys-tems. Key advancements include the rise of hybrid electric propulsion systems and the integration of newfuels and electrification to enhance energy efficiency. Hybrid propulsion systems offer significant fuel con-sumption reductions across different vessel types depending on the vessel and operational profile. Thesesystems enable optimized vessel operations through functionalities like peak shaving, load optimizationAnalysis of the Development of Future Fuel for Shipping in the Baltic Sea 10and zero-emission operations near ports. Manufacturers’ strategy involves a “decarbonization triangle” fo-cusing on energy efficiency, new fuels and electrification. This approach ensures that vessels are fu-ture-proofed against evolving regulatory requirements and market demands. Companies also explore ad-vanced technologies like air lubrication systems and shore power solutions to enhance maritime opera-tions’ environmental performance further.Analysis of the Development of Future Fuel for Shippingin the Baltic SeaIntroductionThe Baltic Sea, a vital maritime region in Northern Europe, has long been a focal point for shipping dueto its strategic location and economic importance. As environmental regulations tighten and the push forsustainable practices intensifies, the maritime industry faces significant challenges and opportunities intransitioning to cleaner fuels.Current Fuel Use and RegulationsHistorically, the shipping industry has relied heavily on heavy fuel oil (HFO), a cheap but highly pollutingfuel. Stringent regulations have been implemented to curb emissions, especially in sensitive areas like theBaltic Sea. The International Maritime Organization (IMO) has introduced several measures, including:1. Sulfur Emission Control Area (SECA): The Baltic Sea is designated as a SECA, requiring ships touse fuels with a sulfur content of no more than 0,1 % since 2015.2. Nitrogen Oxide (NOx) Emission Control: New Baltic sea ships must comply with the IMO TierIII NOx emission standards.3. Greenhouse Gas (GHG) Emissions: The IMO has set ambitious targets to reduce GHG emissionsby at least 50 % by 2050 compared to 2008.Analysis of the Development of Future Fuel for Shipping in the Baltic Sea 11Alternative Fuels and TechnologiesSeveral alternative fuels and technologies are being explored and adopted to meet these regulatory require-ments and achieve sustainability goals. The key alternatives include:1. Liquefied Natural Gas (LNG):• Benefits: LNG significantly reduces SOx, NOx and particulate matter emissions compared toHFO. It also offers a lower carbon footprint.• Challenges: LNG infrastructure is still developing in the Baltic region, and methane slip(unburned methane emissions) remains a concern.2. Biofuels:• Benefits: Biofuels, derived from renewable sources, can be used as drop-in fuels with existingengines, reducing GHG emissions.• Challenges: Feedstock availability, competition with other sectors, and sustainability of productionprocesses are significant issues.3. Methanol:• Benefits: Methanol produces lower NOx, SOx and particulate emissions and can be producedfrom renewable sources.• Challenges: Infrastructure for methanol bunkering is limited, and energy density is lower thantraditional fuels.4. Hydrogen and Fuel Cells:• Benefits: Hydrogen fuel cells emit only water vapour, offering a zero-emission solution.• Challenges: Hydrogen production, storage, and distribution are complex and costly. Currenttechnology still needs to mature for large-scale maritime applications.Analysis of the Development of Future Fuel for Shipping in the Baltic Sea 125. Electric and Hybrid Systems:• Benefits: Electrification can significantly reduce emissions, especially for short-sea shipping.• Challenges: Battery technology needs further advancement to be viable for long-distance voyages.Infrastructure for charging and battery swapping is also required.Case Studies and Pilot ProjectsSeveral initiatives and pilot projects in the Baltic Sea region illustrate the progress and challenges in adopt-ing alternative fuels:1. LNG-powered Vessels: The Baltic Sea hosts several LNG-powered ships, including passenger ferriesand cargo vessels. Ports like Helsinki, Stockholm, and Klaipeda have developed LNG bunkeringfacilities.2. Biofuel Trials: Companies have conducted successful trials using biofuels on their vessels,demonstrating the potential for reducing GHG emissions.3. Methanol-Fueled Ships: The ferry operator Stena Line has retrofitted some vessels to run onmethanol, showcasing a viable alternative fuel option.4. Hybrid and Electric Ferries: The E-Ferry Ellen in Denmark and the hybrid-electric ferry MF TychoBrahe, which operates between Denmark and Sweden, are pioneering examples of electricpropulsion in the Baltic Sea.Analysis of the Development of Future Fuel for Shipping in the Baltic Sea 13Future Prospects and RecommendationsRegulatory pressures, technological advancements, and economic incentives drive the transition to sus-tainable fuels in the Baltic Sea shipping industry. Achieving widespread adoption requires coordinated ef-forts across various stakeholders:1. Policy Support: Governments and international bodies should continue to enforce stringentemission regulations while providing incentives for research, development, and adoption ofalternative fuels.2. Infrastructure Development: Investment in bunkering facilities and supply chains for alternativefuels is crucial. Public-private partnerships can play a significant role in building the necessaryinfrastructure.3. echnological Innovation: Continued innovation in fuel production, storage and propulsion will beessential. Collaborative research initiatives can accelerate the development of efficient and cost-effective solutions.4. Stakeholder Collaboration: Cooperation among shipowners, fuel suppliers, ports, and regulatoryauthorities is vital to overcoming the challenges and ensuring a smooth transition to cleaner fuels.ConclusionThe future of shipping in the Baltic Sea lies in successfully adopting alternative fuels that meet stringentenvironmental standards while supporting economic activities. While challenges remain, ongoing regula-tory support, technological advancements, and collaborative efforts among stakeholders offer a promisingpathway towards a sustainable maritime industry in the Baltic region.Summary of the EU Green Deal’s Impact on Shipping in the Baltic Sea with Inclusion of the Emissions Trading System (ETS) in Europe 14Summary of the EU Green Deal’s Impact on Shipping inthe Baltic Sea with Inclusion of the Emissions TradingSystem (ETS) in EuropeThe European Green Deal, the European Union’s ambitious roadmap towards climate neutrality by 2050,has significant implications for the shipping industry in the Baltic Sea. This initiative aims to transformthe EU economy for a sustainable future, and shipping, a vital component of regional and global trade,plays a crucial role in this transition. A critical component of this transition is the inclusion of the ship-ping industry in the EU Emissions Trading System (ETS).Key Impacts:1. Stricter Emission Regulations:• The EU Green Deal emphasizes stringent emissions reductions, further tightening regulations onsulfur oxides (SOx), nitrogen oxides (NOx), and greenhouse gases (GHGs) for ships operating inthe Baltic Sea.• Enhanced monitoring and reporting mechanisms ensure compliance, pushing for cleaner fuels andtechnologies.2. Inclusion of Shipping in the ETS:• From 2024, the EU will include maritime emissions in its Emissions Trading System (ETS),making it mandatory for ship operators to purchase allowances for their CO2 emissions.• This inclusion aims to incentivize the reduction of carbon emissions by making it more costly toemit CO2, encouraging investment in energy-efficient technologies and cleaner fuels.Summary of the EU Green Deal’s Impact on Shipping in the Baltic Sea with Inclusion of the Emissions Trading System (ETS) in Europe 153. Promotion of Alternative Fuels:• The deal encourages using alternative, low-carbon fuels like LNG, biofuels, hydrogen, andmethanol.• Financial incentives and research funding support developing and deploying these sustainable fueloptions.4. Infrastructure Development:• Significant investments are directed towards developing the necessary infrastructure for alternativefuel bunkering and the electrification of ports.• The deal promotes the construction of LNG terminals, hydrogen refuelling stations, and shore-side electricity supply facilities.5. Technological Innovation:• The EU Green Deal fosters innovation through funding for research and development in greenmaritime technologies.• It supports advancements in fuel cell technology, battery storage systems, and energy-efficient shipdesigns.6. Economic and Environmental Incentives:• Economic incentives, such as reduced port fees and grants, benefit ships that comply with the newregulations and use green technologies.• Enhanced environmental regulations aim to protect the Baltic Sea’s sensitive ecosystem, aligningwith broader EU environmental policies.The potential impact of the Russian ”shadow fleet” in the Baltic Sea Region 167. Collaboration and Standards:• The deal encourages collaboration among EU member states, industry stakeholders, andinternational bodies to establish uniform standards and practices.• It aims to create a level playing field, ensuring fair competition while driving collective progresstowards sustainability goals.The potential impact of the Russian ”shadow fleet” in theBaltic Sea RegionThe term “Russian shadow fleet” refers to a network of tankers and vessels transporting Russian oil andpetroleum products outside the purview of international sanctions and regulatory oversight. This fleet op-erates in a covert manner to evade the restrictions imposed by Western countries and organizations in re-sponse to geopolitical tensions, particularly after Russia’s annexation of Crimea in 2014 and the 2022 in-vasion of Ukraine.Key characteristics and activities of the Russian shadow fleet include:1. Unregistered or Misregistered Ships: Vessels may be registered under flags of convenience, often fromcountries with lax maritime regulations to obscure their actual ownership and operational control.2. Ship-to-Ship Transfers: The fleet often conducts ship-to-ship (STS) transfers in international watersto mix oil cargoes, making it difficult to trace the oil‘s origin.3. AIS Manipulation: Automatic Identification System (AIS) transponders on these vessels are frequent-ly turned off or manipulated to mask their locations and movements.4. Complex Ownership Structures: The ownership of these ships is often obscured through complexcorporate structures involving multiple shell companies based in different jurisdictions.The potential impact of the Russian ”shadow fleet” in the Baltic Sea Region 175. Alternative Financing and Insurance: Due to sanctions, these ships often rely on alternative financ-ing and insurance arrangements outside the mainstream, sanctioned financial and insurance markets.6. Disguised Routes: The fleet uses circuitous routes and multiple transhipment points to disguise thefinal destinations of their cargoes.The operation of the Russian shadow fleet represents a significant challenge for global maritime authori-ties and regulators, as it undermines efforts to enforce sanctions and maintain the integrity of internation-al shipping standards. The fleet‘s activities have significant implications for global energy markets, mari-time security, and geopolitical stability. A specific analysis by S&P Global Market Intelligence indicatesthat approximately 443 tanker vessels, each with a deadweight greater than 10.000 tons, are actively partof the Russian shadow fleet. The Atlantic Council suggests the broader estimate, including all vessels pos-sibly engaged in sanction-evading activities, reaches around 1,400 ships. This fleet includes a mix of age-ing tankers, often lacking proper insurance and featuring opaque ownership structures, which frequentlychange their names and flag registrations to evade detection and regulatory scrutiny.This covert operation poses significant risks to maritime safety and the environment, as these older shipsare more prone to accidents. Additionally, the shadow fleet plays a crucial role in sustaining Russia‘s oilexport activities despite international sanctions, thus impacting global energy markets and geopoliticalstability . The Russian shadow fleet is considered a significant threat in the Baltic Sea for several reasons:1. Maritime Safety Risks: The shadow fleet consists mainly of older vessels that often lack proper main-tenance and insurance, making them prone to accidents. The Baltic Sea is a busy and narrow body ofwater where any maritime accident can have severe consequences, including oil spills and collisions,which can disrupt shipping lanes and harm marine environments .2. Environmental Threats: The Baltic Sea is an ecologically sensitive area with unique marine life. Oilspills from the shadow fleet‘s aging and poorly maintained tankers could cause catastrophic environ-mental damage. The sea‘s enclosed nature means that pollutants do not disperse easily, leading tolong-term ecological consequences.3. Economic and Strategic Concerns: The Baltic Sea is a crucial maritime route for many Northern andEastern European countries. The presence of a shadow fleet complicates navigation and can lead toincreased shipping costs due to the need for enhanced surveillance and security measures. Addition-ally, any significant disruption can ripple effect on global trade and energy supplies.The potential impact of the Russian ”shadow fleet” in the Baltic Sea Region 184. Regulatory Evasion: The shadow fleet‘s manipulation of AIS transponders and changing ship regis-trations makes it challenging for authorities to monitor and enforce maritime regulations. This eva-sion undermines international efforts to impose sanctions and maintain maritime order, potentiallyencouraging other nations or entities to adopt similar practices.5. Geopolitical Tensions: The shadow fleet‘s operation in the Baltic Sea exacerbates regional securityconcerns. Countries bordering the Baltic Sea, such as Poland, Sweden, Finland, and the Baltic states,are wary of Russia‘s intentions and view the shadow fleet‘s activities as economic and strategic aggres-sion.In summary, the Russian shadow fleet poses multiple threats in the Baltic Sea, from environmental haz-ards and maritime safety risks to economic disruptions and geopolitical instability. These factors contrib-ute to the fleet being considered a significant threat in this region.Baltic Sea Parliamentary Conferencewww.bspc.netBSPC SecretariatSchlossgartenallee 1519061 SchwerinGermany