Report on Integrated Maritime Policy 2012

AnnexAugust 2012Report by the Rapporteurs of the Baltic Sea Parliamentary Conference (BSPC) on developments in Integrated Maritime PolicyPrefaceThis report evidences that the Baltic Sea Parliamentary Conference (BSPC) continues to attach great significance to maritime policy issues, having recognized that all countries around the Baltic Sea share many common sea-related challenges and opportunities that are closely interlinked.It summarizes the developments in the Integrated Maritime Policy (IMP) field since the appointment of MP Jochen Schulte (Mecklenburg-Vorpommern) and MP Roger Jansson (Åland Islands) as BSPC Maritime Rapporteurs. Before our appointment as Maritime Rapporteurs, Jochen Schulte had chaired the BSPC’s Working Group on Integrated Maritime Policy, Roger Jansson functioned as Vice-Chairman.Over the past six years the BSPC has adopted a number of substantial recommendations regarding aspects of maritime transport and infrastructure, short sea shipping, maritime spatial planning, environmental protection and maritime safety and security. At its 18th Conference in Nyborg on August 31 2009, the BSPC asked the Standing Committee to establish the aforementioned Working Group on Integrated Maritime Policy. The Chairmen delivered a first Interim Report to the 19th Baltic Sea Parliamentary Conference in Mariehamn on August 29-31, 2010, which contained the political recommendations that had been deliberated by the Working Group. These were fully incorporated into the 19th Conference Resolution. The Rapporteurs then submitted their Final Report to the 20th BSPC in Helsinki on August 29, 2011. The recommendations contained in the reports and voiced by the Working Group were the basis for the requests by the elected representatives from the Baltic Sea States vis-à-vis the governments in the Baltic Sea Region, the Council of the Baltic Sea States (CBSS), and the EU with regard to maritime policy issues.However, the submission of the Final Report to the 20th BSPC did not mark the end of the parliamentarians’ efforts to act persistently for a positive and pluralistic political, social, and economic development of the Baltic Sea Region, rooted in environmental concerns and sustainability. To underline the importance of IMP-related developments for the Baltic Sea Region, the BSPC Standing Committee decided at its meeting in Hamburg on November 7, 2011 to appoint Jochen Schulte and Roger Jansson as Co-Rapporteurs on Integrated Maritime Policy. They are tasked to follow and report on the developments in this field as well as the implementation of the recommendations of the BSPC Working Group on Integrated Maritime Policy (2009-2011). The rapporteurs shall also liaise with the corresponding working and expert groups in the CBSS and the Baltic Sea State Subregional Committee (BSSSC). The present report represents the result of the rapporteurs’ work.The joint workshop of the Baltic Sea organizations with maritime competence in the context of the 2012 European Maritime Day in Gothenburg certainly marked a milestone in the cooperation between the organizations as regards maritime policy issues. For the first time nine such organizations with maritime competence had come together to present their own activities and jointly deliberate common goals and activities. In reaction to the designation of the Baltic Sea as a Sulphur Emission Control Area (SECA) by the International Maritime Organization (IMO) the participants agreed to concentrate their common efforts in the following fields: Liquefied Natural Gas (LNG) and other alternative vessel fuels as well as the corresponding infrastructure, the upgrading of the Baltic Sea ports’ reception facilities, and maritime spatial planning. Beyond topics for common action the participants stressed the need for better coherence with regard to the initiating, funding, and implementation of projects. As the Baltic Sea Strategy along with the Action Plan is currently under review the participants agreed that there exists a window of opportunity for new project proposals.However, other workshops at the European Maritime Day also revealed that there remains great skepticism with regard to the consequences of the designation of the Baltic Sea as SECA for the competitiveness of the region: an approach that would prioritize ecological aspects over economic ones could not be labeled “integrated” – from our point of view a truly Integrated Maritime Policy requires a balance between ecology and economy. The Tier III requirements of the International Convention for the Prevention of Marine Pollution from Ships (MARPOL), Annex VI, to limit the sulphur content in shipping fuels to 0.1 percent as of 2015 were called into question. Familiar arguments were exchanged, for instance that LNG would be too expensive to bring onboard if the measure was not undertaken on a global scale. Other experts opined that scrubbers had not been seriously tested before 2008 by the major shipping companies, consequently hampering the achievement of the 2015 target.The discussion on the Tier III requirement of MARPOL Annex VI is all the more relevant as the Council and the European Parliament agreed on May 22, 2012 to adapt existing EU legislation to revised, stronger IMO regulations concerning the reduction of sulphur limits in marine fuels as from 2015 in the Sulphur Emission Control Areas (COM(2011) 439 final). The Baltic Sea parliamentarians have repeatedly dealt with this matter, for instance in the 20th BSPC resolution, in which we reaffirmed the need to work actively within the IMO for a European-wide solution for SECAs and a speedy designation of further sea areas such as the Mediterranean Sea as SECAs, in order to reach equal competitive conditions at least at the European level. However, a similar motion by the European Parliament Committee on the Environment, Public Health and Food Safety was rejected.It is then all the more important to stay on the ball and follow the developments in Clean Baltic Shipping closely. The Clean Baltic Sea Shipping Midterm Conference in Riga on September 19-20, 2012, for instance, could mark a promising reset in the debate on the designation of the Baltic Sea as SECA. The conference will present new solutions, which aim to fulfill the new SECA directives for the Baltic Sea, and inform about a number of voluntarily created new Clean Shipping initiatives, designed and tested by fuel and ship engine producers, together with ship owners, port designers, and national and local authorities. As the organizers suggest, this might indeed be called revolutionary as the participants will be framing the IMO requirements as opportunities for the maritime industries, not as challenges. The rapporteurs intend to be present at this event and also report on any new insights coming from its workshops.Finally, it is important to report on the establishment of a Correspondence Group by the HELCOM Contracting States that is tasked to collect the necessary information to propose to the IMO the designation of the Baltic Sea as a NOx Emission Control Area (NECA), whereby ships constructed on or after January 1, 2016 and operating within a NECA would be required to reduce their NOx emissions by 80 percent in comparison to the current situation. Other than was the case with SECA, a comprehensive impact study has been carried out, which found that the potential for a modal shift caused solely by the Tier III NOx regulations will most likely be minimal and in most cases non-existent. The potential for a shift from short sea shipping to road and rail would presumably exist mainly due to the new SOx regulations mentioned above.It is clear that the Baltic Sea Parliamentary Conference alone cannot deal with the multitude of complex tasks that lie ahead of us. However, the fact that the last year was characterized by an increased cooperation between the Baltic Sea organizations with maritime competence represents an encouraging development. We should keep following this path and as Maritime Rapporteurs we ask and thank you for your continued great support.Jochen Schulte Roger JanssonChairman Vice-ChairmanBSPC Resolutions on Integrated Maritime PolicyThroughout its two-year mandate, the BSPC Working Group on Integrated Maritime Policy promoted the development on an Integrated Maritime Policy and elaborated joint political positions and recommendations for the 20th BSPC resolution. The recommendations were based on in-depth deliberations on a broad range of issues including emission reduction and competitiveness, maritime transport, port infrastructure, maritime safety, and maritime spatial planning. The 20th BSPC resolution regarding Integrated Maritime Policy in the Baltic Sea Region reflects the outcomes of these deliberations:The participants, elected representatives from the Baltic Sea States, assembling in Helsinki, Finland, 28 - 30 August 2011, call on the governments in the Baltic Sea Region, the CBSS and the EU,Regarding Integrated Maritime Policy in the Baltic Sea Region, to• revisit the political recommendations concerning Integrated Maritime Policy contained in the 19th BSPC Resolution from 2010*;• intensify research and to promote the use of alternative marine fuels such as – for example - Liquefied Natural Gas (LNG) in the Baltic Sea Region and others by supporting innovative emission reduction technologies and by creating incentives for investments in the development of the necessary port infrastructure with a well-developed distribution network and uniform industry- and usage standards;• against the background of new studies on the implications of the intended reduction of the sulphur content of ship fuels to 0.1 % from the year 2015 in the framework of the international MARPOL convention, take precautions and to start initiatives to prevent a modal backshift in traffic from sea to land;• support incentives for the modification of existing ships, and to work actively within the International Maritime Organization (IMO) for a speedy designation of further sea areas, such as the Mediterranean Sea, as Sulphur Emission Control Areas (SECA), thereby abolishing competitive disadvantages for the Baltic Sea Region;• work for a reduction of administrative obstacles for cross-border maritime traffic;• develop maritime spatial planning as an important instrument for an optimized interaction between the actors in the various maritime sectors in the interest of a more efficient and sustainable usage of sea waters and coastal regions, and to create national, compatible spatial planning concepts, thereby promoting a stronger cross-border cooperation between the Baltic Sea countries;• support a sustainable port development by the development of environmental port services, for instance by building sewage recipient facilities in all important ports in the Baltic Sea by 2015 at the latest, in order to reduce environmental pollution for port residents and simultaneously strengthen the competitiveness of the ports;• further implement an integrated maritime policy with regard to its economic and ecological significance for the entire Baltic Sea Area, particularly by- developing and promoting integrated maritime lead projects for the entire Baltic Sea Area (e.g. Clean Baltic Shipping, Galileo Research Port Rostock, SUCBAS – Sea Surveillance Co-operation Baltic Sea) also in the areas of “green, safe transport and a clean environment” for the strengthening of environmentally friendly goods traffic and the port cooperation in the whole Baltic Sea Area in order to further promote the maritime policy in the consciousness on the European level,- promoting and facilitating the cooperation on all levels of maritime governance and by- the development of national integrated maritime policies of the member states;• support integrated activities of the Baltic Sea Region in the areas of maritime research, technology and innovation, in order to use the growth potential of new maritime sectors such as energy generation in offshore installations and offshore technologies, the security and surveillance technique as well as maritime environmental technology and to enhance access to future markets; for this purpose, create necessary political and judicial framework and disseminate best practices;• further develop environmentally sustainable cruise tourism as a maritime growth industry against the background of its importance for the whole Baltic Sea Region, for example by attractive inland tourist offers and concepts of common marketing in this field of tourism;• proceed with the development and implementation of measures for safe operation of ships in severe and icy winter conditions;• support projects and activities focusing on safety of navigation, such as a Baltic Sea- wide Ship Reporting System (SRS) and Vessel Traffic Service (VTS), and promoting the development of the Baltic Sea Region as a pilot region for e-navigation;Additionally, the resolution included a general part with a further passage with regard to the cooperation with the CBSS and BSSSC, taking up the first joint event of a BSPC working group with working groups of the CBSS and BSSSC on the occasion of the European Maritime Day on 20th May 2011 in Gdansk:J. – welcoming the joint event of the Working Group on Integrated Maritime Policy of the Baltic Sea Parliamentary Conference with the Expert Group on Maritime Policy of the Council of the Baltic Sea States (CBSS) and the Working Group on Maritime Policy of the Baltic Sea States Subregional Co-operation (BSSSC) during the European Maritime Day in Gdańsk on May 20th 2011, and supporting the further coordination and joint activities between these and other institutions and organizations;* The recommendations, which were elaborated by the Working Group during the course of the first year of its existence, found their way into the resolution adopted by the 19th BSPC in 2010:• promote new measures in view of reduction of harmful emissions:- render more active support than heretofore to short sea shipping as an eco-friendly alternative to inland transport;- investigate to what extent the reduction of the sulphur content of ship fuels may result in competitive disadvantages to the economy in the Baltic Sea Region and elaborate proposals on how to avoid such disadvantages while maintaining high environmental standards in the maritime sector;- actively support the projects approved for funding under the Baltic region Programme, especially such projects with the objective to reduce harmful emissions from ships and develop reception facilities for waste water from ships in the ports of the Baltic Sea;• support the implementation of improved security and fire prevention measures regarding vessels, terminals, ports, sea and shore-line constructions as well as the use of environmentally friendly substances to alleviate damages caused by accidents;• extend the obligatory use of pilots in risk areas of the Baltic Sea and strictly implement the ban on transporting oil in single-hulled tankers;• initiate measures which 1) pave the way for and promote the use of a single language in international transport operations at sea and on land, and 2) standardize and facilitate the implementation of joint customs and taxation procedures;• continue to ensure improvements to the transport infrastructure in the Baltic Sea Region and, while focusing in particular on developing land and sea routes, to promote a transport policy that is in principle governed by the idea that transport operations should be carried out in an eco-friendly way, supported by an interconnected infrastructure;• make sure that the EU TEN-T core network must be made up of nodes (capitals, other cities or agglomerations of supra-regional importance, gateway ports, intercontinental hub ports and airports, the most important inland ports and freight terminals) and connections of the highest strategic and economic importance linked with key infrastructure in third countries (including Russia);• attach particular importance to the strategic development of the seaports with associated logistics centres and rail terminals in order to create national, regional and European networks. In this context, gaps in the priority TEN projects should be filled, and the projects should be linked and consolidated into a core network;• support initiatives for improving safety of navigation and environmental risk reduction in the Baltic Sea and addressing the human factor including support of initiatives that can lead to less administrative burdens by harmonizing and elaborating the existing ship reporting systems (SRS) and vessel traffic services (VTS) in the Baltic Sea;• strengthen the joint regional as well as national preparedness and capacity to tackle major spills of oil and hazardous substances, for instance by sub-regional preparations, co-ordination and exercises, as pursued in the HELCOM BRISK project, and by procuring sufficient supplies of oil spill and hazardous substances recovery equipment.Mandate and Framing IssuesMandateThe concept of an Integrated Maritime Policy has a strong parliamentary history in the Baltic Sea Region. Based on the recognition that policies in the Baltic Sea countries to a large extent have a maritime dimension and that all maritime related matters are interlinked and therefore must be developed in a joined-up way, the Baltic Sea Parliamentary Conference has, beginning with its 15th Conference Resolution in 2006, continuously and repeatedly addressed the necessity of an integrated maritime policy for the entire Baltic Sea Region and has supported activities in this direction. Within the past six years, the Baltic Sea Parliamentary Conference has adopted a series of political recommendations in this field.The 15th (2006) BSPC called on the governments in the Baltic Sea Region, the Council of the Baltic Sea States, the Helsinki Commission and the European Union “to work for an integrated maritime policy in order to create favorable conditions for a prosperous, socially balanced and ecologically sustainable development of the Baltic Sea Region” and “to establish a balance between the many competing economic benefits of the sea on the one hand, and adequate protection of the marine environment on the other, so as to allow an economically and ecologically sustainable use of marine resources”. Further requests of the Conference related to marine sciences and technologies and their integration in future research programs, a European fisheries policy taking into account the particularities of the Baltic Sea Region and implementing the principle of sustainable fisheries and a strengthened cooperation in the field of maritime safety and security.Both the 16th (2007) and the 17th (2008) BSPC called on the governments in the Baltic Sea Region, the Council of the Baltic Sea States and the European Union to take concrete steps towards developing the Baltic Sea region into Europe’s model maritime region, i.e. into the cleanest and safest sea of Europe and by recommending that all Baltic Sea States ratify existing international conventions on marine environmental protection (16th BSPC), recognizing that maritime policy must be seen within an overarching framework of sustainable development, environment, marine spatial planning, safety at sea and intermodality (17th BSPC). The 16th BSPC also requested, against the background of the rapidly increasing amount of oil transports in the Baltic Sea Region, to ensure a high level of maritime safety and security, in particular by improving the Baltic Sea coastguard practices, promoting innovative navigation technologies and introducing the use of pilots in difficult sea routes. The 17th BSPC formulated demands regarding the full commitment to the implementation of the HELCOM Baltic Sea Action Plan and measures against eutrophication, supporting and encouraging global regulations ensuring a high level of safety and environmental standards in the Baltic Sea and supporting the harmonization of vessel traffic services and the development of a satellite-based, emission-related monitoring system for ships throughout the Baltic Sea Region.Demands by the Baltic parliamentarians regarding maritime safety and security and environmental protection in the region were further elaborated by the 18th (2009) BSPC, requesting that the governments in the Baltic Sea Region, the Council of the Baltic Sea States and the European Union should promote and support initiatives and measures such as enhancing the joint preparedness to tackle oil spills, ship traffic monitoring and surveillance systems and that they encourage active cooperation with the International Maritime Organization on the development of measures to reduce the environmental impacts of shipping, support the designation of further sea basins as Sulphur Emission Control Areas and the BSSSC Action Plan “Clean Baltic Shipping”.With this background, the participants of the 18th BSPC resolved with their consent to the final declaration on September 1, 2009 in Nyborg, Denmark, under subparagraph 38 to establish a Working Group on Integrated Maritime Policy to submit a report to the 20th BSPC. Under the auspices of the Standing Committee of the BSPC, the Working Group was introduced on November 13, 2009 for the duration of two years and Jochen Schulte, MP, Mecklenburg-Vorpommern, appointed Chairman and Roger Jansson, MP, Åland Islands, Vice Chairman of the Group. All BSPC member parliaments and parliamentary organizations were entitled to appoint delegates to the Working Group. The Working Group commenced its work in January 2010 in Rostock and delivered its Final Report to the 20th BSPC on August 29, 2011 in Helsinki, Finland.The report summarized the Working Group’s activities and laid out the political recommendations for the 20th BSPC, which were adopted by the conference. The resolution of the 20th BSPC constituted the most comprehensive set of requests vis-à-vis the governments of the Baltic Sea region, the CBSS, and the EU to date, effectively pulling together previous demands but also spelling out the agenda for the coming years. Regarding Integrated Maritime Policy the parliamentarians, among others, requested: to intensify research on and promote the use of Liquefied Natural Gas (LNG) and other alternative marine fuels; to prevent a model backshift in traffic from sea to land against the background of the intended reduction of the sulphur content of ship fuels to 0.1 percent from the year 2015 in the framework of the international MARPOL convention; to work actively within the international Maritime Organization (IMO) for a speedy designation of further sea areas as Sulphur Emission Control Areas (SECAs); to develop maritime spatial planning concepts to allow for a more efficient and sustainable usage of sea waters and coastal regions; to support a sustainable port development.To underline the importance of IMP-related developments for the Baltic Sea Region, the BSPC Standing Committee decided at its meeting in Hamburg on November 7, 2011 to appoint Jochen Schulte and Roger Jansson as Co-Rapporteurs on Integrated Maritime Policy. They are tasked to follow and report on the development in this field as well as the implementation of the recommendations of the BSPC Working Group on Integrated Maritime Policy (2009-2011). The rapporteurs shall also liaise with the corresponding working and expert groups in the CBSS and the BSSSC.Framing IssuesIntegrated Maritime Policy is a concept for different policy levels, regional and national, the European Union level and international levels. Most of the institutions involved are governmental or intergovernmental. For parliamentarian and inter-parliamentarian bodies it is both important and challenging to cooperate and participate in this field. To adequately illustrate the significance of this cooperation the following section recapitulates the activities of the major stakeholders in the Integrated Maritime Policy in the Baltic Sea Region. Section 4 of this report informs about the recent developments in the cooperation between these stakeholders.HELCOM, established in 1980, is the governing body of an international treaty on the Baltic Sea originally signed in 1974. Within the maritime field the Contracting Parties (all coastal states and the EU Commission) work through joint submissions to International Maritime Organization, operational oil spill response and surveillance, as well as in general for a more safe and environmentally friendly Baltic shipping. Shipping industry, ports and environmental NGOs provide their valuable practical experience to the cooperation. The maritime component of the HELCOM Baltic Sea Action Plan from 2007 provides the policy basis for many recent activities. The Commission is currently chaired by Denmark.Baltic maritime policy needs to be closely linked and coordinated with the Northern Dimension policy. The Northern Dimension (ND) is a cooperation between four equal partners: the EU, Russia, Norway and Iceland. The Northern Dimension policy is an instrument through which the EU, Russia, Norway and Iceland cooperate in selected fields, such as the environment and nuclear safety or social welfare and health care issues. Following a recommendation of the 15th BSPC in Reykjavik in 2006, a Partnership on Transport and Logistics was established in the framework of the Northern Dimension in October 2009, with a current focus on maritime transport. The Second Northern Dimension Parliamentary Forum on 22nd/23rd February 2011 asks the governments of the Northern Dimension cooperation to give the maritime dimension of the partnership due attention. The question of how to combine the integrated maritime policy and the Partnership of Transport and Logistics within the Northern Dimension will have to be further discussed.The Council of the Baltic Sea States Expert Group on Maritime Policy (CBSS EGMP) was established in 2009 and is composed of civil servants from eleven Baltic Sea countries including the European Commission. It is intended to contribute to sustainable growth and employment in the maritime sector, to combine and better coordinate all sea related activities and tasks, as well as to strike an appropriate balance between economic, social and ecological aspects. The Expert Group is cross-sectoral and coordinates its work mainly within the priority areas of Economic Development and the Environment. Its original three-year mandate was recently prolonged for another two years.The aim of the Baltic Sea States Subregional Cooperation (BSSSC) Working Group on Maritime is to bundle and formulate the interests of the Baltic Sea regions in a maritime policy and organize relevant political support. The activities are based on the final declaration of the Kiel Conference on Maritime Policy in 2006 and its commitment to develop the Baltic Sea region into Europe’s maritime best practice region by 2015. The Working Group wants to contribute to the implementation at the regional level. Founded in 2008, the standing working group currently has members from Denmark, Finland, Germany, Norway, Poland, Russia and Sweden.VASAB is an intergovernmental multilateral cooperation in spatial planning and development between eleven countries of the Baltic Sea Region. A new VASAB Long-Term Perspective was endorsed on October 16, 2009. The Ministers underlined that new common responsibilities and challenges had emerged which called for deeper pan-Baltic cooperation on spatial planning and development and the integration of spatial development policies into all relevant sectors. There was also a growing understanding that the Baltic Sea itself is in urgent need of maritime spatial planning.The Baltic Sea Forum is a non-profit organization which supports the economic, political and cultural cooperation in the Baltic Sea region. It was founded in 1992 in Helsinki as a German-Finnish organization named Pro Baltica Forum. It supports the cooperation with the Baltic States as well as with the whole Baltic region, sees to the relations between the European Union and Russia and the development of the south-north relation between the Baltic and the Mediterranean. The Baltic Sea Forum has an extended network of members, representatives and partners from all fields of activity such as from the economy, politics, culture as well as science in the Baltic region and Central Europe.The Baltic Sea Commission of the Conference of Peripheral Maritime Regions (CPMR) has a Working Group on maritime issues that is currently focusing on maritime spatial planning and integrated coastal zone management, maritime safety and blue growth and naval industry. The Baltic Sea Commission is organizing 26 regions in seven countries around the Baltic Sea (Finland, Sweden, Germany, Estonia, Poland, Norway, Denmark). The BSC counts several national capitals as members and the organization also has the majority of the Baltic Sea islands as members.Dealing with the subject matter as a whole, the European Commission in 2007 has launched an Integrated Maritime Policy for the European Union, whose main objective is to maximize the sustainable use of the oceans and seas while enabling growth of the maritime economy and coastal regions. It aims at providing a coherent policy framework to develop integrated responses to maritime challenges of globalization and competitiveness, climate change, degradation of the marine environment, maritime safety and security, energy security and sustainability and thereby enabling a better balance between economic, social and ecological aspects of maritime policy. According to the European Commission, integrated maritime policy making requires and promotes reinforced cooperation and effective coordination of all maritime-related activities and tasks at the different decision-making levels. The European integrated approach to maritime policy intends to include regionalization and strengthening of stakeholder involvement and requires moving away from very fragmented, sectoral policy approaches. On October 15, 2009, the European Commission issued a Communication on the International dimension of the Integrated Maritime Policy (IMP) of the European Union, recognizing that it could not only be considered as a European policy, as it is an issue for the entire Baltic Sea region, and that its success would depend on the extent to which all neighboring countries could be included in the process. On September 30, 2010, the European Commission proposed a Regulation for continued financial support of the EU’s Integrated Maritime Policy, for the period between 2011 and 2013. This proposal establishes a program aimed at supporting the measures planned to further the development and implementation of the IMP. The program will provide financial resources for achieving the objectives and priorities set out in the action plan, which was adopted in 2007.The EU Strategy for the Baltic Sea Region (EUSBSR), adopted by the European Commission in June 2009 and endorsed by the European Council in October 2009, is a macro-regional strategy for the European Union with a high proportion of actions of maritime nature and therefore can be seen as a first step towards implementing the integrated maritime policy on a regional basis. Key maritime actions of the EUSBSR include the development of maritime governance structures, maritime spatial planning and in particular cross-border approaches, sustainable fisheries, maritime surveillance and integration of different surveillance systems across borders and sectors, clean shipping, motorways of the sea, maritime transport space without barriers, implementation of the Marine Strategy Framework Directive, accelerated implementation of the Baltic Sea HELCOM action plan, development of maritime clusters, maritime training and education. On June 22, 2011, the European Commission provided a first progress report on the implementation of the Baltic Sea Strategy.Cooperation with Baltic Sea organizations with maritime competenceThe Working Group on Integrated Maritime Policy (IMP) held its final meeting in Schwerin on June 20-21, 2011. The group drafted political recommendations for the 20th BSPC, which found their way into the final resolution (cf. section 2 of this report). However, issues such as emission reduction, competitiveness, maritime transport, or port infrastructure continue to bear significant relevance for the Baltic Sea Region. To follow IMP-related developments as well as the implementation of the recommendations of the BSPC Working Group on Integrated Maritime Policy (2009-2011), the BSPC Standing Committee decided at its meeting in Hamburg on November 7, 2011 to appoint Jochen Schulte and Roger Jansson as Co-Rapporteurs on Integrated Maritime Policy. The following section summarizes the rapporteurs’ activities and developments in the field of IMP.European Maritime Day 2012 in GothenburgOverall, the past year has been characterized by an increased cooperation between the Baltic Sea organizations with maritime competence. Last year’s final report on the activities of the BSPC Working Group on Integrated Maritime Policy already highlighted a joint meeting between the Baltic Sea Parliamentary Conference, the Council of the Baltic Sea States, and the Baltic Sea States Subregional Cooperation in the context of the European Maritime Day in Gdansk on May 20, 2011. The intention of this common event was to broaden the awareness of the European public on the maritime cooperation in the model region Baltic Sea, to illustrate the integrated political approaches, and to promote a more regular and structured dialogue between different levels of political decision-making in the region.However, further bodies – representing the national, the regional, and the parliamentary political level of the Baltic Sea Region – would have to become part of the dialogue in order to prevent policy overlaps. Since numerous such organizations deal with Integrated Maritime Policy, though with different focus and constituencies, coordination and division of labor would be required. Against this background six other Baltic Sea organizations with maritime competence have joined the dialogue: the Helsinki Commission (HELCOM), Visions and Strategies around the Baltic Sea (VASAB), the Conference of Peripheral Maritime Regions / Baltic Sea Commission (CPMR Baltic Sea Commission), the Baltic Organizations Network for Funding Science (BONUS), the Northern Dimension Partnership on Transport and Logistics (NDPTL), and the Baltic Sea Forum (BSF).Whereas the joint meeting in Gdansk gave the impetus for a more structured dialogue on maritime issues, the 2012 meeting at the European Maritime Day in Gothenburg represented the most visible sign to date of a concentrated effort to streamline Integrated Maritime Policy in the Baltic Sea Region: for the first time nine Baltic Sea organizations with maritime competence had come together to talk about their own activities as well as about common goals and activities.The meetings leading up to the workshop in Gothenburg on May 22, 2012 are summarized below.On December 9, 2011 representatives of the BSPC, CBSS, and BSSSC gathered at the working level in Kiel to discuss IMP-related joint activities. A central agenda item was the participation of the Baltic Sea organizations with maritime competence at the 2012 European Maritime Day in Gothenburg. It was agreed to draft a joint discussion paper as the basis for the meeting and future cooperation, outlining common themes and activities of the Baltic Sea organizations. Several possible themes were brought forward: the foundation of a regional council to better integrate and voice IMP-related interests and recommendations; the design of the Integrated Maritime Policy with a view to the new Financial Framework period 2014-2020; strengths and weaknesses of the maritime elements of the Baltic Sea Strategy. A common activity could be the development of a Baltic Sea maritime information database. In order to allow for a regular and more structured dialogue between the Baltic Sea organizations with maritime competence the meeting also discussed potential forums beyond the 2012 European Maritime Day in Gothenburg. The idea of a Maritime Stakeholder Forum was brought forward. However, it would still have to be made clear whether such a forum would merely function as a platform for the exchange of experiences and best-practice examples, or whether it would deliberate concrete political action. Furthermore, the meeting stressed the importance of a clear definition of common goals and political fields of action.Representatives of the BSPC, CBSS, BSSSC, HELCOM, VASAB, the Northern Dimension Partnership on Transport and Logistics, The Baltic Sea Forum, the CPMR Baltic Sea Commission and BONUS came together in Berlin on January 12, 2012 to discuss future joint activities in the maritime policy field as well as the preparation of the joint event at the 2012 European Maritime Day in Gothenburg. The meeting began with each representative giving a short presentation on their organization’s maritime aspects. Following the introductory presentations, the meeting debated concrete possibilities for joint activities, on the basis of the discussion paper presented by Mr. Dietrich Seele, Chairman of the CBSS Expert Group on Maritime Policy, at the joint Schwerin Working Group session in June 2011 (“Integrated Maritime Policy – ideas for joint activities”). Ideas included a “Clean Marine Award for the Baltic Sea Region”, an interactive electronic communication platform for all Baltic Sea organizations with maritime competence, as well as a structured dialogue with the maritime industry. Furthermore, the meeting identified the exchange of existing projects and views on possible future projects between maritime actors as a goal of the cooperation, as well as the dialogue with other sea basins. Regarding governance structures the meeting agreed to use existing structures as far as possible and to improve their efficiency instead of creating new structures. Lastly, the meeting decided to organize a common follow-up event of Baltic Sea organizations with maritime competence on the occasion of the European Maritime Day 2012 in Gothenburg, building up on the first joint event of the BSPC, CBSS and BSSSC in Gdansk in 2011.Based on the discussion paper “Integrated Maritime Policy – ideas for joint activities”, a follow-up meeting to the January meeting took place in Berlin on April 24, 2012. First and foremost, the meeting further discussed possible topics for cooperation between the Baltic Sea organizations with maritime competence. It was agreed that the topics would have to be cross-cutting so as to allow for contributions from all organizations. Clean Shipping and Liquefied Natural Gas (LNG) were proposed as topics for cooperation. In this context it was suggested that an inventory of strategies with regard to each topic be drawn up by the CBSS secretariat in order to identify potential synergies and overlaps. With a view to governance, the meeting agreed that the cooperation of the Baltic Sea organizations with maritime competence should function as a nucleus, which brings together actors from different priority areas, reflecting all: states, regions, parliaments, civil society, as well as the maritime industry. It was reaffirmed that the group should retain lights structures and focus on concrete projects. Regarding the idea of a “Marine Award” the meeting cautioned that a critical mass for such an award would first have to be found, along with a high profile awarding scheme, which was not yet existent.On May 22, 2012 eight Baltic Sea organizations with maritime competence came together during the European Maritime Day in Gothenburg at a workshop titled “Better Coherence in the Baltic Sea Region”. The organizations had identified topics for cooperation in previous meetings – such as alternative fuels like LNG, the upgrading of port reception facilities, and maritime spatial planning –, each being part of the Baltic Sea Strategy. However, they see the need to further increase coherence by discussing common goals and future joint activities. After each organization had presented its own activities the participants deliberated where cooperation was feasible and could bring added value. Clean Shipping was again brought up as a cross-sectoral theme, to which every organization could contribute. In this regard the feasibility of LNG was discussed. However, since LNG also entails tradeoffs such as price shifts, national and uncompetitive approaches, or the costs of standardization, the workshop similarly discussed the use of other alternative vessel fuels including the corresponding infrastructure, as well as improved ship technology, for instance with regard to the vessel hull or ship propulsion. The upgrading of the Baltic Sea ports’ reception facilities, including sewage water treatment, was identified as another topic for cooperation. Maritime spatial planning was recognized as a further topic as it pertains to any one of the above-mentioned issues. Beyond topics for common action the participants stressed the need for better coherence with regard to the initiating, funding, and implementation of projects. As the Baltic Sea Strategy along with the Action Plan is currently under review there exists a window of opportunity for new project proposals. This goes hand in hand with the chance to secure funding for future projects. However, the Baltic Sea organizations would have to speak with one voice and hence improve coherence. A role model could be the life sciences sector where the ScanBalt network had compiled a joint position paper, in which they formulated their interests for the upcoming cohesion policy period 2014-2020. The participants agreed that investments in energy, infrastructure, or port reception facilities could only be undertaken if funding possibilities at the European level were tapped. Regarding the “Baltic Sea Green Marine Award” the meeting agreed that the Baltic Sea Forum would continue its work on an awarding scheme, in which LNG, port reception facilities, and maritime spatial planning could play a role.Cooperation with HELCOMCooperation with HELCOM is of particular importance for the BSPC as HELCOM is a key Baltic Sea organization that has been working for more than 30 years on the improvement of the environmental situation of the Baltic Sea. The organization was the main driver behind Annex VI of MARPOL 73/78, making the Baltic a SOx emission control area. For further details on this matter please consult the HELCOM Observer Report by Sylvia Bretschneider and Christina Gestrin. For us as Maritime Rapporteurs, having in mind both the ecological and the economic issues, it is quite clear that economic and environmental aspects need not be opposites. Accordingly, we will continue to work actively on reframing the discussion on the consequences of the designation of the Baltic Sea as a SOx and – as it is currently discussed– NOx emission control area, thus hoping to avoid the risk of compromising the competitiveness of the region.Recently, the HELCOM countries have shifted their attention to NOx emissions from ships in the Baltic Sea. In November 2008, HELCOM MARITIME 7/2008 considered a joint paper by the HELCOM Contracting States on NOx emissions from ships submitted to 57th session of the Marine Environment Protection Committee (MEPC 57), 31 March – 4 April 2008, London, as a contribution to the revision of Annex VI of MARPOL 73/78. The paper outlined scenarios estimating how much NOx emission from ships in the Baltic would be reduced if different proposed IMO emission control measures were adopted. The scenarios revealed that only the most challenging proposal – 80 percent reduction of emissions from marine diesel engines installed on ships on or after January 1, 2015 – would reverse the increasing trend of NOx emissions by 2030. Therefore, the HELCOM Contracting States have established a Correspondence Group to collect the necessary information to propose to the IMO the designation of the Baltic Sea as a NOx Emission Control Area (NECA), whereby ships constructed on or after January 1, 2016 and operating within a NECA would be required to reduce their NOx emissions by 80 percent in comparison to the current situation. To support the work of the Correspondence Group, a HELCOM study on the economic impacts of the Baltic NECA (2010) has been carried out.At the 37th Heads of Delegation Meeting in Trelleborg on June 14-15, 2012 the NECA Correspondence Group Chair, Mr. Jorma Kämäräinen, provided an update on the progress toward a NECA in the North Sea and the recently completed studies, concluding that there are benefits from reducing NOx from ships for both public health and the environment in the North Sea, exceeding the costs of installing and operating NECA equipment. The NECA Correspondence Group Chair pointed out that these studies and the previously made HELCOM study on the Baltic Sea all show similar results: that a NOx abatement technology to meet Tier III standard exists (Selective Catalytic Reduction - SCR) and that NECA would bring benefits both to the environment, as well as the human health. On the other hand, these studies show that the designation of the Baltic Sea as a NECA would presumably increase the freight rates of shipping in the sea basin. However, estimations show that due to use of the aforementioned necessary Tier III NOx SCR emission reduction equipment, an increase of only 2 to 4.6 percent in freight rates of new ships would be possible, depending on the vessel type. The highest cost increase may be for large and fast container vessels. Due to the relatively small increase in freight rates, the potential for a modal shift caused solely by the Tier III NOx regulations will most likely be minimal and in most cases non-existent. The potential for a shift from short sea shipping to road and rail presumably exists mainly due to the new SOx regulations and not because of future NOx regulations.Cooperation with the Southern Baltic Sea Parliamentary ForumMembers of the parliaments around the southern Baltic Sea came together at the 10th Southern Baltic Sea Parliamentary Forum in Kiel on March 12-13, 2012 to discuss issues such as green growth and energy efficiency, cross-border education and labor markets, and integrated maritime policy. The BSPC was represented by Arkadiusz Litwinski, MP, Poland The parliamentarians crafted a vision for the Southern Baltic Sea Region in 2020. The final document of the forum “Southern Baltic Sea 2020” is intended to present sustainable development strategies for the Southern Baltic Sea Region, based on the principles of subsidiary and regional autonomy.Like the BSPC and the other Baltic Sea organizations with maritime competence, the Southern Baltic Sea Parliamentary Forum attaches great importance to the issue of an integrated maritime spatial planning (MSP). MSP was identified as a prerequisite for a sustainable development of the Baltic Sea region. However, it would have to account for different interests and necessities – a task complicated by the fact that the nations bordering the Baltic Sea all feature different competences as regards maritime spatial planning.Similar to the demands raised by the BSPC, the Forum also stressed the need of research and innovation as the necessary foundation for a truly Integrated Maritime Policy. The full list of demands by the Forum regarding IMP is listed below:• The Southern Baltic Sea Parliamentary Forum supports the European Commission in its endeavor to build up a more integrated marine and maritime knowledge network (environment, fisheries, regional planning, shipping etc.) as part of a successful integrated maritime policy, because the regions are of prime importance in monitoring and using these data bases.• For the maritime business sector to remain competitive in today’s global economy, more applied research and innovation are needed so that know-how on the fields of vessel safety, energy efficiency, emission reduction, alternative propulsion systems for ships and renewables can be developed and marketed.• As regards a sustainable use of the maritime environment, joint objectives in maritime spatial planning policy need to be developed and implemented for the regions in the Southern Baltic Sea area, which take the VASAB guidelines (conference of the ministers responsible for spatial planning at the national level) into account.• The Southern Baltic Sea Parliamentary Forum supports the European Commission’s plan to reform the Common Fisheries Policy so as to reorient its goals along the lines of economic, environmental and social sustainability. It is especially important to the regions of the Southern Baltic Sea area that the intended reform should take sufficient account of safeguarding the interests of the artisanal fishing industry and the protection of the marine environment.• Junk fishing shall be restricted and ultimately prohibited altogether. The maximum length of fishing vessels on the Baltic Sea shall be reviewed.Current developments in IMP at the European levelFor the BSPC, Integrated Maritime Policy is not a mere policy of the European Union since a number of BSPC members are not member states of the EU. Nevertheless, it is a European policy and developments also at the EU level may influence the position of the BSPC members as much as they influence the HELCOM Contracting Parties. Accordingly, the European level continues to bear significant relevance for the activities of the Baltic Sea organizations with maritime competence. Even though no new allocations should be created within the EU budget for the Union’s macroregional policies, the overall financial framework of the EU strategies for the Baltic Sea Region between 2007 and 2013 is indicated at around € 50 billion, thanks to an arrangement of the strategies that mobilizes all relevant EU funding and policies. Accordingly, developments at the EU level should be closely followed, monitored, and critically accompanied by the Baltic Sea organizations with maritime competence.Adaption of EU legislation to revised, stronger IMO regulations as regards the sulphur content of marine fuelsOn May 22, 2012 the Council and the European Parliament agreed to adapt existing EU legislation to revised, stronger IMO regulations concerning the reduction of sulphur limits in marine fuels as from 2015 in so-called Sulphur Emission Control Areas (SECAs) (COM(2011) 439 final).The provisions of the International Maritime Organization (IMO) on the sulphur content in shipping fuels and the economic impacts of the designation of the Baltic Sea as a Sulphur Emission Control Area constituted a central element of last year’s Final Report of the BSPC Working Group on Integrated Maritime Policy.The International Convention for the Prevention of Pollution from Ships (MARPOL Annex VI) defines two sets of emission and fuel quality requirements: global requirements and more stringent requirements applicable to ships in emission control areas. Existing emission control areas include:• Baltic Sea (SOx, adopted: 1997 / entered into force: 2005)• North Sea (SOx, 2005/2006)• North American ECA, including most of the US and Canadian coast (NOx & SOx, 2010/2012)MARPOL Annex VI limits the maximum sulphur content of fuel to 4.5 percent. This is going to be changed to 3.5 percent after January 1, 2012 and to 0.5 percent after 2020 (or 2025, depending on the outcome of a review in 2018). In SECAs, the sulphur limit in fuel is at 1 percent until July 1, 2015 when it drops to 0.1 percent. For the Baltic Sea Region, the sulphur content in shipping fuels is limited to 0.1 percent as of 2015.|Date | Sulphur Limit in Fuel || |SECA Global ||2000 |1.5 % |4.5 % ||2010 | 1.0 % | ||2012 | |3.5 % ||2015 |0.1 % | || 2020* | |0.5 % ||* alternative date is 2025, to be decided by a review in 2018 |While supporting in general the internationally agreed environmental targets, the Working Group made clear that it attaches great importance to prevent distortion of competition to the detriment of the Baltic Sea Region. In the view of many experts, the implementation of stricter sulphur regulations is not only a question of competing within this area with road or rail transport, but also of competitiveness of the Baltic Sea Region with other regions. In particular, disadvantages for shipping going in and out of the Baltic Sea compared to other shipping routes worldwide must be avoided. Therefore, the 20th BSPC resolution reaffirmed the need to work actively within the IMO for European-wide solution for SECAs and a speedy designation of further sea areas, such as the Mediterranean Sea, as SECAs, in order to reach equal competitive conditions at least on the European level.Similar demands were meanwhile raised by the European Parliament Committee on the Environment, Public Health and Food Safety vis-à-vis the Council. Among others the committee members requested that the same 0.1 percent target be applied in the Mediterranean as of January 1, 2020. Nevertheless, the motion was rejected and the IMO requirements adopted unchanged. The proposal for a directive does allow for state aid for the necessary remodeling of the ships before the 2015 deadline. However, ship operators will still have to face the significantly higher costs for respective vessel fuels.Review of the EU Strategy for the Baltic Sea RegionAs was suggested during the 2012 European Maritime Day in Gothenburg, coherence between the Baltic Sea organizations with maritime competence is also essential with a look to funding: if the partners do not speak with one voice, their interests might not be communicated consistently and hence project proposals might not strike a sufficient chord with financiers.A window of opportunity to formulate common interests and secure project funding has opened up with the review of the EU Strategy for the Baltic Sea Region (EUSBSR) by the European Commission, which is asking stakeholders for input. The Strategy was launched in 2009 and aims to make the Baltic Sea Region cleaner, more connected and more prosperous. The Strategy is a pilot initiative where the macroregional concept is tried and tested in a specific geographic area. The main lessons were outlined in a report written by the Commission in June 2011 and in a Communication of March 2012.The EUSBSR Action Plan is also being reviewed, to be completed by the end of 2012. The most important elements of this review are to introduce objectives, indicators and targets, at Strategy level and for each Priority Area of the Strategy. These will measure the success of the Strategy, but also focus efforts on the most urgent challenges.There will also be an assessment of the number and content of the Priority Areas, to decide if they could be merged or reinforced. The European Commission has asserted that there is a need for greater focus, and to concentrate efforts on actions that respond to the indicators and targets selected. The intended end result is a more compact Action Plan, with Flagship Projects and actions in more specific terms to increase impact.The Commission also wants to strengthen the capabilities of the key implementers of the Strategy. New and clarified descriptions of roles and expectations have been developed, as well as set out in a handbook with examples.An overall analysis is being prepared by the Priority Area Coordinators and the Horizontal Action leaders. Furthermore, input can be communicated at a number of stages, such as at the Annual Forum in Copenhagen, which took place from June 17-19, 2012. Based on the received comments the Commission is preparing a draft revised Action Plan for the fall of 2012, to which stakeholders are invited to respond.OutlookThis report has also shed light on the difficulties facing the Baltic Sea states with regard to the reduction of sulphur limits in marine fuels as from 2015 in so-called Sulphur Emission Control Areas. Relevant workshops at the European Maritime Day in Gothenburg have once again shown that even though most stakeholders generally support the internationally agreed environmental targets, they still fear a distortion of competition to the detriment of the Baltic Sea Region and doubt that the 2015 deadline can be met.Against this background the Clean Baltic Sea Shipping Midterm Conference in Riga on September 19-20, 2012 could mark a promising reset in the debate on the designation of the Baltic Sea as SECA. Instead of concentrating on the challenges of the IMO requirements, the conference will present new and revolutionary solutions, which aim to fulfill the new SECA directives for the Baltic Sea, and inform about a number of voluntarily created new Clean Shipping initiatives, designed and tested by fuel and ship engine producers, together with ship owners, port designers, and national and local authorities.The Clean Baltic Sea Shipping initiative goes back to a 2008 five-point action plan by the BSSSC covering the following areas: 1) shore-side electricity supply for ships, 2) environmentally differentiated fairway and/or port dues, 3) a voluntary on of waste-water discharges, 4) awarding best-practice prices, 5) the introduction of labels for clean Baltic shipping and sustainable port management. The initiative was originally supported by five other Baltic Sea organizations and was fully integrated into the Baltic Sea Strategy proposed by the European Commission in 2009, which shows that speaking with one voice pays off. Priority Area 4 of the Strategy now reads “To become a model region for clean shipping".Further developments are expected as the BSSSC has both proposed an INTERREG project on Clean Baltic Sea Shipping and offered the BSPC to join the project by becoming a member of the Political Committee.Finally, regarding the IMO application for a NOx Emission Control Area status for the Baltic Sea, the relevant developments are outlined in section 4 of this report as well as in the HELCOM Observer Report by Sylvia Bretschneider and Christina Gestrin. The submission of the application to the IMO is imminent. The 33rd HELCOM meeting on March 6-7, 2012 decided that there will be two submissions by the Baltic Sea countries to the IMO: the NECA submission and an information paper giving an overview of the available technology to meet NECA requirements (MARPOL Annex VI Tier III emission standards, or IMO Tier III). Both submissions are complete and the NECA application fulfills the IMO criteria in Appendix III of Annex VI to MARPOL. It is expected that the final decision regarding the date of the submissions will be made at the next Heads of Delegation meeting (HELCOM HOD 38/2012) in October 2012. The submissions represent the fulfillment of the obligation to report on this Baltic Sea Action Plan commitment before the next HELCOM Ministerial Meeting in Denmark 2013. The Baltic Sea States, at the HELCOM Moscow Ministerial Meeting 2010, had agreed to work towards submitting, a joint proposal to the IMO applying for a NOx Emission Control Area status for the Baltic Sea.As stated before we hope that this discussion will avoid the risk of compromising the competitiveness of the Baltic Sea Region – economic and environmental aspect need not be opposites and must be balanced.