Report on Integrated Maritime Policy 2013

August 2013Report by the Rapporteurs of the Baltic Sea Parliamentary Conference (BSPC) on developments in Integrated Maritime PolicyFinal Version14th of August 2013PrefaceThis report summarizes the developments in the Integrated Maritime Policy (IMP) field since the renewed appointment of MP Jochen Schulte (Mecklenburg-Vorpommern) and MP Roger Jansson (Åland Islands) as BSPC Maritime Rapporteurs by the standing committee at the conference in St Petersburg. 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.A number of interesting conferences took place throughout the past year, such as the CLEANSHIP Midterm Conference in Riga, the Conference on the Competitiveness of the Maritime Industry in the Baltic Sea Region in Schwerin, or the XI. Southern Baltic Sea Parliamentary Conference, also held in Schwerin. Our conclusions from these and other conferences are summarized below. For further information on the conferences please refer to the first part of the report, and also section C for a detailed report on the competitiveness conference in Schwerin.In the second part of our report we have included a number of important legislative developments at the international level, which are going to affect our own industries and those of third countries that will operate in the Baltic Sea. To highlight just one: The European Parliament and the Council have now passed changes to the Directive 1999/32/EC of 26 April 1999 relating to a reduction in the sulfur content of certain liquid fuels and amending Directive 93/12/EEC. To cut things short, it comprises the incorporation of rules adopted by the International Maritime Organization (IMO) into EU law. In last year’s report we had already mentioned that this legislation was in the works, which Parliament and Council now passed on October 29, 2012.The rapporteurs’ conclusions regarding last year’s achievements based on the above-mentioned meetings and fact findings:- The fuel LNG is mainly an option for new builds. In comparison with other existing fuels LNG seemingly is the best option.- It requires a joint effort to build up a liquid gas bunker infrastructure within the port of the Baltic Sea reason.- Low sulfur marine diesel is the main option for existing ships. Even though it might lead to increase of costs of fuels with 30 % or more.- Investments in scrubbers is an option, however the cargo capacity decreases.- There is a need to invest in new forms of fuels.- The energy consumption of ships can also be lowered by optimizing the harmonization of logistics technologies and infrastructure on land, thus reducing idle time in ports and allowing ships to reduce their speed at sea.- It needs to be evaluated if and how economic incentives for fleet rejuvenation through new construction and expansion are sensible in order to strengthen the maritime economy.- Finland has initiated a state aid system for investments in existing ships in order to meet the requirements of the sulfur directive. For example in Germany, existing programs can be used for the promotion of pilot projects in refitting existing vessels.- Increased transports on wheels threaten the environment in the Baltic Sea area.- In order to save the competiveness of sea transports in the Baltic Sea area the governments and international organizations have to focus on the maritime sector and its demands for competitive operating conditions.- Synergies between the various maritime economic activities need to be identified and created in order to produce more growth and jobs than the sum of their parts. Synergies could benefit the different activities, especially in the development stage and in the case of a lack of critical mass.- To turn knowledge into marketable products, programs such as the Horizon 2020 program and other funding sources will have to be tapped.Pärnu 25th of August 2013Jochen Schulte Roger JanssonMaritime Rapporteur Maritime RapporteurTable of contentsA – Activities of the Maritime Rapporteurs 5Conference on Clean Baltic Sea Shipping 5HELCOM Youth Forum 2012 5Conference on the Competitiveness of the Maritime Economy 5Clean Baltic Sea Shipping Policy Meeting 6Letters to the European Commission, HELCOM and CBSS 7Nordic Council working group regarding the sulfur directive 7XI. Southern Baltic Sea Parliamentary Forum 7Maritime Workshop during the 23rd Hanse Sail in Rostock 9B – Legislative Developments at the EU level with regard to all BSPC member states 11Changes to the Directive 1999/32/EC of 26 April 1999 relating to a reduction in the sulfur content of certain liquid fuels and amending Directive 93/12/EEC 11Horizon 2020 program 11Proposal for a directive on the deployment of alternative fuels infrastructure (COM(2013) 18 final) 12Subsidiarity check regarding the proposal for a directive on establishing a framework for maritime spatial planning and integrated coastal Management (COM(2013) 133 final) 13Communication on Blue Growth – opportunities for marine and maritime sustainable growth (COM(2012) 494 final) 13Proposal for a Regulation on ship recycling (COM(2012) 118 final) 14Proposal for a regulation on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport and amending Regulation (EU) No 525/2013 (COM(2013) 480 final) 14C – Report about the Conference on the Competitiveness of the Maritime Industry in the Baltic Sea Region, April 12, 2013, Schwerin 16A – Activities of the Maritime RapporteursConference on Clean Baltic Sea ShippingThe 19-20th of September 2012 Mr Jansson addressed the Conference on Clean Baltic Sea Shipping in Riga. The BSPC will continue to provide political support to the Cleanship project" said Roger Jansson, Åland Islands, BSPC Co-rapporteur on Integrated Maritime Policy, in his address to the Clean Baltic Shipping conference in Riga 19-20 September. The conference attracted some 130 experts and decision-makers, discussing a wide range of issues such as non-emission ships, shore side power supply, waste water reception in ports, and port fee regulations. Reiterating the political recommendations of the BSPC IMP Rapporteurs at the 21st BSPC In St Petersburg, he stressed the need "to expand information on best maritime practices, to develop real-time maritime surveillance information and e-navigation, to strengthen competitiveness for clean shipping in the Baltic Sea, and to bolster preparedness against hazards and crime". He welcomed a statement from EU that it intends to reenergize the EU Integrated Maritime Policy, and also noted that EU will provide support for the adjustment measures to new and lower sulfur emission requirements from 2015. "We, elected representatives, will continue to do our work toward a prosperous, sustainable and safe Baltic Sea Region, and we will continue to work with you on Clean Shipping", Jansson concluded.HELCOM Youth Forum 2012From December 10 through December 12, 2012 30 students from nine countries of the Baltic Sea Region came together in Rostock to discuss ideas on blue growth and green limits at the HELCOM Youth Forum 2012 in Rostock. The young scientists had the chance to interact with high-level professionals and adopted a final resolution, which will be submitted to the HELCOM Ministerial Meeting in October 2013. Throughout the conference the students had exchanged ideas in structured group discussions on topics closely affiliated with the work of HELCOM, such as maritime policy and regulations, sustainability of the Baltic Sea ecosystem, and maritime technologies and innovation.In the name of the President of the Landtag Mecklenburg-Vorpommern, who was co-hosting the Forum, as the representative from Rostock and as the BSPC’s Maritime Rapporteur, Jochen Schulte addressed the students at their final joint coming together, sharing insights on the BSPC’s work and the work of the parliamentarians on Integrated Maritime Policy.Conference on the Competitiveness of the Maritime EconomyIn cooperation with the BSPC and with support of the Parliament Mecklenburg-Vorpommern the BSPC Maritime Rapporteur Jochen Schulte organized an international conference on the competitiveness of the maritime industry in the Baltic Sea Region, which was held in the parliament of Mecklenburg-Vorpommern on April 12, 2013.The last two BSPC Working Groups had elaborated positions on “Integrated Maritime Policy” and “Green Growth & Energy Efficiency”. The conference aimed at bringing together the results of both working groups and developing them further. With the shipbuilding, port and offshore wind energy industries the conference focused on those maritime sectors, which have the potential to create sustainable growth in the Baltic Sea Region. The sectors are also points of departure of a study by the European Commission on “Blue Growth”, see section B “Legislative Developments”. Representatives of different sectors presented their products and solutions and identified challenges, which the respective sectors are confronted with. The resulting demands became part of the final resolution of the Southern Baltic Sea Parliamentary Forum (see further below) and were proposed for the resolution of the BSPC in Parnu.The participants agreed that among the growth markets would be: eco-friendly ship technology, alternative propulsion systems / alternative fuels, increases in efficiency and reduction of emissions, safety systems, and re-fittings. The Managing Director of Scandlines Germany presented his company’s efforts on some of these fronts, among others measures to reduce idle times in ports, the installation of onboard hybrid systems, and the implementation of a zero-emission concept by 2020. However, more stringent international environmental legislation was also viewed critically as parts of root networks would have had to be sold, in order to allow for more investments in eco-friendly technologies. Regarding the offshore wind energy field it became apparent that the sector showed strong growth rates, but that the recent positive developments could be hampered due to political uncertainties. The European Commission stressed that in order to turn academic knowledge into marketable products, funds such as the new research program Horizon 2020 should be tapped.For a more detailed summary of the conference please view the section C of this report.Clean Baltic Sea Shipping Policy MeetingThe 22nd of April 2013 Mr Jansson attended the Clean Baltic Sea Shipping Policy Meeting in Copenhagen. At the meeting environmentally depending index for harbors were discussed as well as environmentally differentiated port charges and alternative fuels. Regarding alternative fuels LNG was considered as a fuel in the longer term and low sulfur content diesel was considered to be a fuel in the short term. Electrical power supply from the harbors was also discussed. Especially the cost of fuses was considered to be a big issue. Even the reception of black and gray water in all harbours was discussed. The meeting was clear on one point. There should not be more laws regulating the harbour business. Instead there should be voluntary market based solutions. Terminals for LNG fuel supply are rapidly being built in Europe. There are already several in the Mediterranean and the English Channel. However most of them are used as import/export terminals. At the meeting the competitiveness of the maritime sector from the 1st of January 2015 onwards was at focus. The risk of change of means of transport from sea to land was discussed and said to be a real threat. The threat is real not only for the shipping industry itself but also for the environment. The importance of having similar rules and incentives in the countries throughout the entire Baltic Sea area in order to achieve fair competition was also discussed at the meeting.Letters to the European Commission, HELCOM and CBSSThe 3rd of May 2013 the both maritime rapporteurs wrote letters to the European Commission, HELCOM and CBSS in order to emphasize the importance of mutual efforts to handle the enforcement of the sulfur directive from the 1st of January 2015 onwards. In the letter to the European commission they stated the following: ”The new challenge for the competitiveness for sea transport is the threat of differences in state aid policies for vessels coming from different countries that traffic the Baltic Sulfur Emission Control Area (SECA). Thus Finland has implemented one form of state aid in order to improve competitiveness for the shipping industry because of the enforcement of the sulfur directive 1.1.2015. Other countries have other forms of implementation. The importance of having similar implementation of state aid rules and incentives in the EU member countries throughout the entire Baltic Sea area in order to achieve fair competition is an issue both for the European Union and for each country in the region.”Nordic Council working group regarding the sulfur directiveThe 24th of June 2013, Mr Roger Jansson addressed the Nordic Council working group in Mariehamn regarding the sulfur directive. He described the work in the BSPC working group and its outcome. Furthermore he gave an overview of the situation regarding the implementation of the sulfur directive and the technical achievements and trial with new fuels so far. He stressed the environmental danger of changing from sea to land transport and the importance of supporting competiveness of sea transports.XI. Southern Baltic Sea Parliamentary ForumOn June 2 through June 4, 2013 parliamentarians from all around the southern Baltic Sea gathered at the parliament of Mecklenburg-Vorpommern to discuss issues of relevance for all involved regions, namely energy, tourism, and Integrated Maritime Policy. The participants passed a joint resolution, which is directed to all relevant actors in the southern Baltic Sea region at regional, national and European level. The Parliamentarians furthermore expressed their demands in joint letters addressed to the presidents of the European Commission, of the Council, and of the European Parliament.With regard to Integrated Maritime Policy the European Commission introduced five major fields, in which it sees a significant potential for sustainable growth: tourism, ocean renewable energies, aquaculture, marine mineral resource, and blue biotechnology. The German Shipbuilding and Ocean Industries Association emphasized that Europe would play a fundamental role for the maritime economy, opining that “parts of a core Europe are visible within the Integrated Maritime Policy”. Environmental regulations were raised in the discussions, especially the issue of sulfur emissions. Maritime safety and security was another theme – the removal of old munitions dumps from the sea bed was debated in this regard, which also plays a role at HELCOM. Maritime Spatial Planning will continue to be an issue.Regarding the issue of Integrated Maritime Policy, the parliamentarians passed the following resolution:“The Southern Baltic Sea Forum1. appeals to the regional and national governments as well as the European Commission,to broaden cross-country contacts in regards to land use regulations, land use in general and maritime land use in particular - independent from internationally important measures as well as claims of metropolitan and rural areas-, since they guarantee a solid base to balance different claims of use and interests and to decrease conflicting uses.2. Welcomes in regard to the European level,a) The efforts of the European Commission to foster blue growth, especially the EU initiative „LeaderShip 2020“, on bases of its modern approach to industry policy;b) The proposal of the European Commission, to consider maritime topics with greater weight in regard to the perennial financial framework 2014-2020. To commercialize existing knowhow in said areas, it is also required to activate the €86 billion Horizon-2020 program of the EU as a successor of the current research framework program.c) The concept of the European Commission to develop national and regional strategies for intelligent specialization, to use advantages in competition effectively, to strengthen advantages of location and to facilitate interregional cooperation.3. Sees it as necessary on the European level,a) That the funding setting of the EU has to fundamentally change. Instead of prioritizing sectorial funding projects, integrative programs should be funded as much as possible (multiple use of offshore wind parks for energy production and aqua cultures);b) To strengthen the perception of the maritime economy as a European key industry also in non-coastal regions;c) In order to secure maritime locations, loans, pledges and grants should be tied to the European value-added chain;4. Believes it to be essential,a) To strengthen regional shipping cooperation and shipyards, when faced with state-funded competition;b) To evaluate if and how (when applicable) economic incentives for fleet rejuvenation through new construction and expansion are sensible, in order to strengthen the maritime economy;c) to optimize harmonization of logistic technology and infrastructure on ships and land, to further reduce idle time in ports;d) to keep industrial knowhow as well as a preferably high local content within the southern Baltic Sea region, networking between industry, marine technology, suppliers and research has to be improved as well as the practice of increasingly offering system solutions and evaluating the availability of financial means for research and development;e) to improve and broaden the facilitation of alternative ship engines and fuels, i.e. hybrid systems;f) to work effectively together, building a liquid gas bunker infrastructure within the ports of the Baltic Sea region. This answers to a demand of the 20th BSPC, to put emphasis on emission reduction through unappointed technologies and development of international standards for onshore energy supply by gas and power in the light of a binding limit of sulfur in ship fuel from 2015 on;g) to advance a deeper integration of university and vocational training within the maritime economy, in order to strengthen commercial-technical vocational training capacities in corporations, as well as evaluating job profiles and pursue sustainable human resources management and development since an elevated demand for qualified professional vocational and advanced training goes along with a reorientation of the ship building industry within the Southern Baltic Sea region;h) to intensify regional cooperation under special consideration between research institutions and the economy.”Maritime Workshop during the 23rd Hanse Sail in RostockOn August 8, 2013 Jochen Schulte followed an invitation by the Expert Group of the Council of the Baltic Sea States (CBSS) on Maritime Policy to discuss further action on the use of green technology and alternative fuels in shipping. Other representatives from the Helsinki Commission HELCOM, Visions and Strategies around the Baltic VASAB, the Baltic Sea Forum, the Baltic Development Forum, and the EU Strategy for the Baltic Sea Region as well as a number of private sector stakeholders were also present. The current Finish CBSS Chairmanship will thus continue a dialogue between the participating organizations that was initiated at the European Maritime Day (EMD) 2011 in Gdansk and substantiated at the 2012 EMD in Gothenburg.Prior to the workshop the participants shared their views on the "Baltic Sea between Blue Growth and Green Limits". There was a general agreement that the shipping industry faced several challenges; among others low charter and freight rates, rising fuel costs, ship banks withdrawing from the market, and new environmental regulations that were passed at a time before the crisis hit home in the shipping industry in 2008. Since funds were drying up, financial support systems would have to be set in place to help the industry fulfill its obligations. Jochen Schulte referred to a joint letter by the Maritime Rapporteurs, which underlined the importance of having similar rules and incentives in the countries throughout the entire Baltic Sea area in order to achieve fair competition (see above).During the consequent workshop the relevant Baltic Sea organizations with maritime competence elaborated, under which framework the problems could be addressed. One platform could be the St Petersburg initiative - an initiative to engage all levels of society to work for the ecological balance of the Baltic Sea. HELCOM informed about its intention to create a "Green Technology and Alternative Fuels Platform for Shipping", which would focus on the dialogue between the public sector and the private stakeholders, including ship owners, shipbuilding and marine design enterprises, manufacturers and ports, and the research community. The goal would be to prepare roadmaps for action in different fields with a view to enhancing the effectiveness of measures through information sharing, increased communication and coherence. The participants agreed that both technological solutions and financial support schemes should be discussed.B – Legislative Developments at the EU level with regard to all BSPC member statesIn this part of our report we have included a number of important legislative developments at the EU level, which are going to affect our own industries and those of countries that will operate in the Baltic Sea.Changes to the Directive 1999/32/EC of 26 April 1999 relating to a reduction in the sulfur content of certain liquid fuels and amending Directive 93/12/EECParliament and the Council have agreed on a compromise regarding the directive. The Council passed the directive in a vote on October 29, 2012.In last year’s report we had already informed that on May 22, 2012 the Council and the European Parliament had agreed to adapt existing EU legislation to revised, stronger IMO regulations concerning the reduction of sulfur limits in marine fuels as from 2015 in so-called Sulfur Emission Control Areas (COM(2011) 439 final).Only fuels with a sulfur content of 0.1 % can be used as of January 2015 in the emission control areas. A usage of fuels with a sulfur content higher than 3.5 % is generally forbidden within the EU waters, unless the ships use alternative exhaust gas cleaning systems such as scrubbers. The proposed directive does allow for state aid for the necessary remodeling of the ships before the 2015 deadline.The Commission intends to issue a report on the implementation of the directive until December 2013 und will include the possible reduction of air pollution through ships.Horizon 2020 programHorizon 2020 will be an integrated program that will cover all research and innovation funding currently provided through the Framework Program for Research and Technological Development, the Competitiveness and Innovation Framework Program (CIP) and the European Institute of Innovation and Technology (EIT). Its legal basis is Proposal 811 final 2011/0402 (CNS) of the of the European Commission for a Council decision of 30 November 2011 establishing the Specific Program Implementing Horizon 2020. The different types of funding provided by the existing programs will be brought together into a single coherent, flexible framework with a total budget of about € 70 billion between 2014 and 2020. It will provide funding for every stage of the innovation process from basic research to market uptake. Horizon 2020 is the financial instrument implementing the Innovation Union.EU funding for research and innovation will be focused on three key objectives (Excellent Science, Competitive Industries and Better Society), implemented through specific programs and a dedicated financial contribution to the EIT. The primary aim of Horizon 2020 is to strengthen the EU's position as a world leader in science, to help make Europe a more attractive location to invest in research and innovation and to bring excellent research results to market which will deliver direct benefits to citizens, such as the transition to a resource-efficient, low-carbon economy.Horizon 2020 will be open besides the 28 EU countries to:-acceding countries, candidate countries and potential candidates, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programs established in the respective framework agreements and decisions of association councils or similar agreements;-selected third countries that fulfill all of the following criteria:(i) have a good capacity in science, technology and innovation;(ii) have a good track record of participation in Union research and innovation programs;(iii) have close economic and geographical links to the Union.Proposal for a directive on the deployment of alternative fuels infrastructure (COM(2013) 18 final)On January 24, 2013 the Commission published the Communication “Clean Power for Transport: A European alternative fuels strategy” (COM(2013) 17), in which options are identified to replace oil and reduce transport greenhouse gas emissions. The Commission favors a comprehensive mix of alternative fuels und emphasizes that no particular fuel shall be favored over the other in order to ensure technology neutrality. Various fuels are listed as future-oriented, though the Commission criticizes that a lack of corresponding infrastructure would constitute the biggest challenge for the introduction of alternative fuels. Therefore, the Commission included a proposal for a directive on the deployment of alternative fuels infrastructure (COM(2013) 18) in the package, in which it demands the implementation of national strategy frameworks for the development of a market for alternative fuels and the development of the necessary infrastructure, including the definition of common technical specifications. The Member States shall pass a national political framework, which contains at least the elements found in the directive.The Commission furthermore proposes to install LNG filling stations in all 139 maritime or inland ports of the core network of the integrated trans-European transport network until 2020 respectively 2025, and to erect filling stations every 400 kilometers along the motorways of the network. For LNG, which is also used by trucks, there are currently only 38 filling stations across the EU.The Commission estimates the consequent costs at around € 10 billion, which the Commission opines could mostly be met by private investments. Furthermore, the Member States could use TEN-T funding, the cohesion or structural funds as well as European Investment Bank loans.Albeit the importance of a coordinated approach to installing the necessary infrastructure, there are some concerns. For one, the proposed directive may violate the principle of subsidiarity. Also, the lack of infrastructure may not have to do with political decisions, but simply with a lack of market dynamism. The installation of the infrastructure requires a sustained effort on the part of business actors, which is not a given in every region across Europe. Defining mandatory quantitative goals – irrespective of actual local requirements – requires funding that could be better used elsewhere. This is contrary to the goal of implementing alternative fuels more widely. It might be more promising to have the Member States develop quantitative goals on a regular basis, which adapt to national and regional developments.Subsidiarity check regarding the proposal for a directive on establishing a framework for maritime spatial planning and integrated coastal Management (COM(2013) 133 final)On March 12, 2013 the Commission issued a proposal for a directive on establishing a framework for maritime spatial planning and integrated coastal management. Maritime Spatial Planning provides a framework for arbitrating between competing human activities and managing their impact on the marine environment. Its objective is to balance sectoral (traffic, fishing, energy etc.) interests and achieve sustainable use of marine resources.However, many Member States have reacted critically to the proposal as it would violate the principle of subsidiarity. Until the deadline on May 13, 2013, eight out of the nine necessary parliaments had voiced concerns and issued a reasoned opinion. A common concern is that the Commission would not have the authority to legislate as the planning authority and implementation would remain with the Member States and the Commission could hence only offer a forum for the cooperation in the development of a maritime spatial planning as well as an integrated coastal management. A proposal could only be limited to a procedural framework; the legislation would go far beyond.The proposal is currently debated in Parliament and in the Council.Communication on Blue Growth – opportunities for marine and maritime sustainable growth (COM(2012) 494 final)On September 13, 2012 the Commission issued a Communication on “Blue Growth” (COM(2012) 494). By “Blue Growth” the Commission means a long-term strategy, which supports growth in all maritime sectors and thus contributes to the goals of the Europe 2020 strategy. Based on the accompanying study, the Commission sees special growth potentials in the field of maritime, coastal and cruise tourism, blue energy, maritime mineral resources, aquaculture, and blue biotechnology. To realize this potential the Commission envisions the abolishment of administrative obstacles, investments in research and innovation, as well as the promotion of training and further training. The Commission has announced a number of Communications for 2013 and 2014 regarding the implementation of the strategy in the respective sectors. All initiatives shall be undertaken in consultation with the Member States and the respective stakeholders.“Blue Growth” is part of the Integrated Maritime Policy. In this regard the Commission has issued a further progress report on September 11, 2012, which documents the results achieved in the respective fields (COM(2012 491). Initiatives in the fields of Maritime Spatial Planning, the collection of maritime data, maritime research, and the integration of maritime surveillance are highlighted.The “Blue Growth” concept also played a role at the conference in Schwerin on April 12, 2013, organized by the Maritime Rapporteur Jochen Schutle, and the Southern Baltic Sea Parliamentary Forum on June 2-4, 2013 in Schwerin.Proposal for a Regulation on ship recycling (COM(2012) 118 final)On 27 June, the Council endorsed a compromise text of the new Ship Recycling Regulation agreed with the European Parliament. This means that the Regulation will now be formally adopted in autumn, and should be published in the Official Journal of the EU and enter into force by the end of 2013. On June 19, 2013 the third and last trilogue between the European Parliament, the Council and the Commission had taken place regarding the proposal for a regulation on ship recycling. The mandate was given by the Permanent Representatives Committee on June 14, 2013, against the votes of Estonia, Malta and with Germany abstaining.In March 2012 the Commission had issued a proposal, which aimed at improving the conditions hazardous to health and the environment, under which a large number of EU-flagged ships get scrapped in South Asia, and to implement the international Convention on the Safe and Environmentally Sound Recycling of Ships (Hongkong Convention) in a timely manner. Even though the initiative was welcomed in principle by a majority of the Member States, there was disagreement prior to the trilogues, especially with regard to how the proposed regulation would relate to the proposed Waste Shipment Regulation, the Port State Control Directive and a non-discrimination clause proposed by Cyprus. Especially regarding sanctions, access to court and transit regime as well as the so-called beaching method and the inspections in third countries points of conflict between Council and Parliament became evident. The Presidency opined that the EP had, after long negotiations, shown readiness to compromise in the trilogues on the points of interest to the Council, such as access to court or a restrictive position regarding delegated acts. Also, a clear division of the scope of application of the ship recycling regulation and the Basel Convention system for controlling trans-boundary waste shipments remains, albeit German concerns.Proposal for a regulation on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport and amending Regulation (EU) No 525/2013 (COM(2013) 480 final)In June 2013 the European Commission set out a strategy (COM(2013) 479) for progressively integrating maritime emissions into the EU's policy for reducing its domestic greenhouse gas emissions.The strategy consists of three consecutive steps:• monitoring, reporting and verification of CO2 emissions from large ships using EU ports;• greenhouse gas reduction targets for the maritime transport sector;• further measures, including market-based measures, in the medium to long term.At the same time as publishing a Communication setting out the strategy, the Commission put forward a legislative proposal (COM(2013) 480) to establish an EU system for monitoring, reporting and verifying emissions from large ships using EU ports. This would implement the first step in the strategy. The proposal would create an EU-wide legal framework for collecting and publishing verified annual data on CO2 emissions from all large ships (over 5,000 gross tons) that use EU ports, irrespective of where the ships are registered. At the latest as of August 31, 2017 ship owners would have to report (at the latest as of August 31, 207) and monitor (as of January 2018) the verified amount of CO2 emitted by their large ships on voyages to, from and between EU ports. Owners would also be required to provide certain other information, such as data to determine the ships' energy efficiency. As of 2019 ships owners would be obliged to submit an annual report to the Commission and the respective national authorities regarding the emissions on board and any other climate-relevant information. As of June 30, 2012 all ships will have to carry a valid document on board, which confirms the correct reporting in line with the regulation.To become law, the proposal requires approval by the European Parliament and Council.C – Report about the Conference on the Competitiveness of the Maritime Industry in the Baltic Sea Region, April 12, 2013, SchwerinLandtag Vice President Silke Gajek opened the conference and welcomed the participants. She underlined the work of the Landtag at the international level, whose President – along with her Finnish colleague Christina Gestrin – assumes the BSPC’s mandate as observer at the Helsinki Commission. Ms Gajek highlighted the crossover issues that the conference shared with HELCOM, for instance environmentally friendly ways of shipping. One important tool would be the designation of the Baltic Sea as a sulfur emission control area. This constituted major challenges for the maritime industry but also great potential. Accordingly, the maritime industry would be under a process of adaptation. For instance, maritime technology, especially offshore wind energy production, increasingly played a role for the ship yards and the downstream and upstream sectors. The BSPC should work to support the industry in this transitory period.Member of the German Bundestag, and member of the former BSPC Working Group on “Integrated Maritime Policy”, Torsten Staffeldt, greeted the participants on behalf of the German Bundestag. Germany had undertaken some important measures as regards the maritime industry, for instance improving its competitiveness by prolonging the Maritime Alliance – a German maritime innovation network –, establishing rules for the prevention of piracy for Germans ships, or providing sustainable fundamentals for the offshore industry. Answers at the level of the BSPC would also have to be found with regard to the upcoming sulfur and nitrogen emission control areas. If the right answers could be found, the Baltic Sea Region could develop into a new economic driver for the European Union.Chairman of the Baltic Sea Forum and former German Minister of Transport Kurt Bodewig spoke about the balance between creating jobs in the maritime industry and safeguarding the marine environment. Mr Bodewig opined that sulfur limits in vessel fuels are drivers in the process for green growth for a blue sea. The macro-regional strategy of the EU for the Baltic Sea Region would have this balance at its core and contained five main goals: the improvement of the environmental situation of the Baltic, support of innovations and its implementation, the improvement of wealth and prosperity in the region, the improvement of infrastructure and of marine safety. Projects such as the CLEANSHIP project would work on examples, measures, and instruments to put ideas into action, such as an Environmental Port Index, alternative fuels in shipping, port reception facilities for sewage from ships, onshore power supply, and environmentally differentiated port dues. Also offshore constituted another major field, where sustainable growth could take place. New opportunities like plant and special vessel engineering and production, maritime and security services, the improvement of electricity networks, and the development of new storage technologies would open up. All the different organizations that are active in these fields would ensure that the Baltic Sea Region could be labeled a maritime model region.Member of the European Parliament Werner Kuhn talked about the latest developments on the EU Port Package. The last official statement regarding the EU port policy had been the Communication from the Commission on European Ports Policy (COM(2007) 616) – a proposal of non-legislative measures and instruments. Previous attempts by the Commission had failed in 2003 and 2006. Currently, the consultation process would be ongoing and replies from the stakeholders had shown that no particular challenges for port services could be made out. Until 2015 the Commission would like to present a new proposal: a proposal for a regulation covering the fields of market access to port services, transparency of accounts and port dues and interport-coordination, as well as a communication covering the fields of handling services port labor (fact finding study). Among the likely elements of a new package would be the principle of freedom with regard to market access to encourage innovation and better quality and efficiency, transparency in the financial flows from public authorities to ports, and the possible coordination between ports in line with the TEN-T approach. Regarding further action on the issue one could not foresee whether the Commission would follow a soft law approach focusing on transparency and a clarification of rules on concessions or a more stringent legislative approach. So far, the ports would reject one-size-fits-all regulatory approaches, whereas the port users stressed that the internal market principles should be applied to all port services, including port labor. However, both sides agreed that action on ports policy would be necessary.Haitze Siemers from the European Commission presented the Blue Growth concept. The maritime economy would consist not only of shipbuilding but also of tourism, energy, raw materials, fishing and aquatic products. The sectors would be tightly connected. The main question would be how the potential of these sectors could be put to maximum use, especially in the context of the Europe 2020 strategy and the continuous search for growth and jobs. Accordingly, the Commission had published a report in 2012 on the matter, in which it looked at the size of the sectors, their future potential, as well as synergies and tensions between the sectors. One important forecast would be that the size of the blue economy would grow from a current gross value added of € 500 billion and 5.4 million jobs to € 600 billion, respectively 7 million jobs in 2020. Especially the aforementioned five sectors would have a large potential to create employment and growth, all the while fostering the development of sustainable technologies, where wind energy would play a significant role. In some cases – such as with exploitation of sea and mineral resources – the Baltic Sea Region would not boast the physical features for the actual local use of the technologies but the knowledge for their commercial exploitation elsewhere. Mr Siemers also pointed out various projects – such as the CLEANSHIP or the Submariner projects – which would contribute to more closely aligning the Baltic Sea Strategy with the Baltic Sea’s blue economy. Finally, Mr Siemers also referred to the importance of the upcoming multiannual financial framework and the mainstreaming of Blue Growth in the various funds. Furthermore he highlighted the upcoming research program Horizon 2020, which would also contain a heavy focus on maritime research. To conclude Mr Siemers pointed out some general framework conditions for the blue economy to prosper: a functioning maritime spatial planning tool – the Commission had issued its own proposal on March 12, 2013 –, integrated maritime surveillance systems, and cohesive data and knowledge sets as regards the marine environment.Hauke Schlegel from the German Engineering Foundation VDMA gave an overview of the German marine and offshore equipment industries. The industries would employ 70,000 people and have a turnover of € 11.5 billion in Germany – both three times the size of the original shipbuilding industry. On the world stage the largest producers of ships came mostly from Asia. As regards the equipment industry, however, Germany ranked number 1, with a few other European countries also competing strongly, among others Denmark, Norway or the Netherlands. The shipbuilding market would not look as grim as some people tried to make believe: even though new shipbuilding orders in 2007 had been at $ 260 billion, the more realistic years for comparison would be 2003, 2004 and 2005, with which the current numbers would compare well (around $ 80-100 billion). However, especially new orders for container ships, tankers and bulk carriers had decreased after the 2007/2008 period. The offshore vessel market, on the other hand, had grown exponentially since 2009, with a lot of vessels being built and outfitted in Europe, and especially the Baltic Sea Region featuring special know-how. Challenges were manifold. For one, European ship owners would only make about one fifth of their orders in the European market, the vast remainder going to Korea and China; Japan, China, and Korea, on the other hand, would predominantly order in their respective domestic market. Another challenge would regard the shipping cost model. The model had changed completely during the past five years: whereas in the past the daily ship costs had exceeded the daily bunker costs by a factor of three, the bunker costs would now exceed the ship costs, partly due to new emission regulations. European ship owners would be especially affected by this, though the situation would also mean that now would be the best time to build new energy-efficient ships, which consume less fuel. In the offshore oil and gas market there had been a steady positive development, especially in the deep sea sectors of the world. Also the Baltic Sea Region would feature a lot of companies that are strong in the offshore oil and gas sector – a sector that is about ten times the size of the marine market of the offshore wind industry. In line with previous presentations, growth markets would be: eco-friendly ship technology, alternative propulsion systems / alternative fuels, increases in efficiency and reduction of emissions, safety systems, and re-fittings. New markets with great potential would be: deep sea offshore oil & gas, deep sea mining, renewable ocean energies, and swimming infrastructures. The suppliers would currently undertake the following measures to stay competitive: gain new market sectors and regions as compensation, enforced export efforts to growing markets, increased re-fittings, extend lead in service, continued reduction of production costs, extend lead in research and development. They would also have to meet a growing demand for system solutions and packages, requiring closer international cooperation.The Managing Director of Scandlines Germany, Dr. Gernot Tesch, talked about the ferry connection between Rødby and Puttgarden as an example for the company’s green shipping efforts as well as about the current measures under development within Scandlines. The ferry between Rødby and Puttgarden would already boast much shorter port times than its competitors (15 minutes compared with 45 minutes in case of the leading operator on the English Channel between Dover and Calais). Still, Scandlines would be working on even better efficiency benchmarks. Firstly, hybrid systems would be installed on board, leading to 20 % lower fuel consumption and corresponding emissions. Secondly, scrubbers would be installed, though only after bunker reduction measures had been implemented. It remained to be seen whether a hybrid system could work well in practice with installed scrubbers and thus fulfill the upcoming sulfur regulations. Nevertheless it would be safe to say that the IMO’s sulfur decision would affect the competitiveness of short sea shipping in the sulfur emissions control areas negatively. Scandlines had had to sell part of its former root network in 2012 in order to concentrate its funds for investments on a fewer number of vessels. Yet due to their relatively high energy consumption scrubbers would merely stay a bridge technology and the goal would remain to replace heavy fuel oil with alternative vessel fuels. Accordingly, Scandlines had worked with its subsidiary Germanischer Lloyd on the FutureShip project. The zero-emission concept would be characterized by utilization of electric energy surplus from wind turbines for production of hydrogen which would be used to supply the electrical pod drives. Additionally, optimized hull lines, propeller shapes, and procedures in port would cut the overall energy demand. Scandlines would work on implementing the concept in the Fehmarn belt by the end of the decade. Finally, Mr Tesch stressed that shipping remained the most efficient means of transport. Compared with the per transported unit emission output of trucks, it would be more than twice as efficient. Consequently, it would be counterproductive to finance fixed infrastructure projects such as the Fehmarn belt fixed link in a sparsely populated area, especially if companies like Scandlines would be ready to invest hundreds of millions of euros in green shipping technologies. Mr Tesch opined that Zero Emission ferries were to have a positive business case if the fixed link would be postponed until 2030.The Managing Consultant of FutureShip, Björn Pape, explained the Zero Emission concept in further detail. Wind energy, either from land or offshore, would serve as the source of energy. The energy gained from the wind turbines would be used to produce hydrogen in an electrolysis process. The hydrogen could be bunkered on board of the ship where it would get converted back to electric energy in the fuel cells. The hydrogen-powered fuel cells would emit pure water into the air or back into the sea. The energy produced in the fuel cell could then be consumed on board. Further efficiency measures would include: reduced wave resistance, exclusive utilization of premium insulation, an optimized consumer structure, and improved timekeeping to avoid rush at sea. The overall efficiency of the aforementioned zero emission process would be at around 50 %. The ships would accommodate 1500 passengers (20 % more than the status quo), the speed would be reduced to 18.5 knots, 140 m3 of hydrogen tanks containing ten tons of hydrogen would be installed powering the ferry for two days, as well as fuel cells and batteries with a capacity of 8.3 MW respectively 2.4 MWh and four 3 MW pod-propellers. Once the project had become reality, the current average consumption and emissions per trip (0.95t low-sulfur heavy fuel oil, 2.96t CO2, 20kg SOx, 50kg NOx) would be reduced to zero.Dr. Michael Wiedicke of the German Federal Institute for Geosciences and Natural Resources talked about the prospects for deep-sea mining of mineral resources and the chances and challenges of this new field with economic potential. Especially manganese nodules, co-rich crusts, and polymetal sulfides would be sought after. Apart from the resources on land, these marine mineral resources would constitute additional deposits suitable for long-term and stable resource supply irrespective of political turmoil on land and offer highly developed countries the potential to develop new markets. The demand for marine claims had significantly increased since 2001 and chances would be manifold: developing enduring exploration tools, sensor techniques, or autonomous underwater vehicles for large depths, as well as enduring and sustainable mining equipment, such as collectors, risers, mining vessels and environmental monitoring equipment. However, even though a lot of money could one day be made with this technology, all current considerations were merely theoretical and would have to be backed up with proven sustainable technologies.The Managing Director of the Foundation “Offshore Wind Energy”, Andreas Wagner, and Torsten Richter, Head of Service Bahöft at EnBW, spoke about the operational experiences with German offshore wind farms. Mr Wagner introduced the Interreg program “South Baltic OFF.E.R”, which works with 10 partners and 9 associated organizations in 5 countries on awareness raising, business development and skills & recruitment. He also illustrated the contribution of the offshore wind parks to a reliable energy system. For instance, the Alpha Ventus wind park had had a capacity of 4,400 full load hours in 2011 (267 GWh), 15 % above expectations. Over € 1 bn in investments had been made along the German coast, showing the vast opportunities for the maritime industries in this sector, with another € 10 bn under construction in 2012/2013. However, the recent growth could be hampered due to political uncertainties with regard to the offshore wind energy sector. Investments in offshore wind farm projects with 80 turbines would be between one and two billion euros. Political framework conditions would have to be clear and predictable. Right now it would seem uncertain to reach the goal of 10 GW from offshore wind parks by 2020 in Germany. Torsten Richter went on to talk about the completed Baltic I and the currently built Baltic II wind parks. Baltic I would feature a production of 48 MW and a yearly output of 185 GWh, Baltic II with 288 MW would be under construction. For most of 2011, Baltic I’s production had exceeded predictions, though due to maintenance works in September and October, total production had been just 5 GWh below the planned 129 GWh. Baltic I would furthermore often reach its maximum total output of 48,000 kW, showing that it had been a good decision for EnBW to invest in the Baltic Sea. Mr Richter also talked about the different strategies regarding Baltic I and Baltic II, depending on whether the wind park was closer to or further away from the coast. The distance would, among others, determine the use of sea-based services with offshore service vessels or of land-based services with crew transport vessels, thus affecting important factors such as number of technicians required, effective working times, frequency of customs or the efficiency of technicians.Dirk Briese, director of the German market research institute wind:research, spoke about offshore wind energy in Europe, demand for the necessary services, and current challenges. First, Mr Briese gave an overview of the development of the German Renewable Energies Act levy, which had contributed to a significant increase in the use of renewable energies but also to a rise in energy prices. The Renewable Energies Act would guarantee suppliers of energy generated from renewable energies certain feed-in tariffs, causing an increased supply of energy in the market, thus dropping the market price, but increasing the gap between the guaranteed kilowatt-hour feed-in tariff and the lower price in the market. The difference would be borne by the end consumer. Second, he gave an overview of the installed and planned capacities in the offshore wind market, showing, that 120 GW capacities – equaling the capacity of 100 nuclear power plants – had been installed, approved or planned across Europe. In Germany, the goal of 10 GW by 2020 could not be achieved any more – immediate action on grid connections and financing would be necessary. Third, since the size and capacity of wind turbines had increased significantly in the last few years, logistics had become more challenging, among others with regard to procurement, production, installment, sea transport, service parts, or dismantling, thus posing new demands for ports, ship yards, and others. Important factors for the ports to consider included: water depth, lock width, river mouth width, transport competition, quay length, hinterland connections, storage/assembly/heavy load areas, loading structures, previous experiences in the offshore field, and surrounding companies or institutes. Ship yards would also be faced with a large demand for different kinds of vessels, such as transport and service vessels, cabling vessels, jack-up barges, or floating cranes. Further, even in small offshore wind parks, such as Baltic I, 21 vessels and 300 personnel at once would be busy on site, creating further challenging demand for transport and logistics services. The value chain would be accordingly big, with a lot of important suppliers in the land-locked hinterland. Fourth, challenges would have to be overcome. On the technical side, deeper depths of the offshore wind parks would require innovation on the part of the suppliers. On the political side, answers to the discussion about the Renewable Energies Act levy would have to be found and uncertainties with regard to the legal framework conditions reduced. Further, time lags with regard to financing, grid connections or the political debates translated into fewer investments and orders, leading to layoffs and insolvencies, thus stalling the development of offshore wind energy. Above all, long-term planning security would have to be ensured and the costs of renewable energies be reduced.