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Baltic Rim Economies Quarterly Review Baltic Rim Economies Quarterly Review ISSUE NO. 1, 29 FEBRUARY 2012 EXPERT ARTICLES: Günther Oettinger: Europe's energy future is in gas and in Central Asia Page 1 Gediminas Kazlauskas: The Baltic Sea protection – a challenge for Lithuania and for the whole Baltic Sea region Page 2 Lambert van Nistelrooij: Joint efforts in the Baltic Sea Strategy Page 3 Alexander Graf Lambsdorff: EU-Ukraine relations – a decisive year ahead Page 4 Vladimir Chizhov: The Russia-EU Partnership for Modernisation Page 5 Juris Bone: From Baltic Tiger to Baltic Phoenix Page 6 Jussi Huttunen: Mobilising the regional assets through joint efforts – Pohjois-Savo looks at the Baltic Sea region in cooperation Page 7 Nikolay Tsukanov: Energy deficit of Kaliningrad region is passing Page 8 Jan Owe-Larsson: Territorial cooperation – an asset for East Sweden and the Baltic Sea region Page 9 Pekka Myllymäki: Rural Mynämäki community on the way to competitiveness, employment and safe energy supply Page 10 Akko Karlsson: Territorial review and regional development in the Baltic area Page 11 Slava Khodko: Cooperation development in the Baltic Sea region Page 12 Boedker Andersen: Union of the Baltic Cities 20 years – inspired by the past, heading for the future Page 14 Jyrki Myllyvirta: The power of two metropoles Page 15 Mikael Pentikäinen: Water flows down from Russia’s mountains Page 17 Börje Svanborg: Cooperation within Baltic Sea region (BSR) Page 18 Kaisa Kononen: Towards the Rio+20 in the Baltic Sea region Page 19 Allan Alaküla: BSR deserves a communication strategy Page 20 Anna Saarentaus: Communication is the key – towards a successful network Page 21 Alain Roggeri: EU Strategy for the Baltic Sea Region – from good intentions to effective implementation and results Page 22 EXPERT ARTICLES CONTINUED ON NEXT PAGE To receive a free copy, print or register at www.tse.fi/pei Baltic Rim Economies Quarterly Review ISSUE NO. 1, 29 FEBRUARY 2012 EXPERT ARTICLES CONTINUED: Ellinor Ivarsson, Tommy Holm and Fredrik Gunnarsson: The municipal authorities and the Baltic Sea Strategy – conditions for greater local involvement Page 23 Colin Wolfe and Malgorzata Pekala: The EU Strategy for the Baltic Sea Region – "business as usual" in the EU? Page 25 Janne Jõesaar-Ruusalu: The European Union Strategy for the Baltic Sea Region – where do we stand today? Page 26 Rikard Bengtsson: The EU Strategy for the Baltic Sea Region in 2012 – implementation challenges Page 27 Eeva Rantama: The EU Baltic Sea Region Programme as major start-up support to the EU Strategy for the Baltic Sea Region Page 28 Gunnel Gustafsson: Research collaboration – a way to turn grand challenges into opportunities Page 29 Levan Mindeli: The role of science in Russia's modernisation Page 30 Jan Widberg: Multi-dimensional challenges and governance in the Baltic Sea region Page 31 Janne Tamminen: CPMR Baltic Sea Commission as a developer of the Baltic Sea Area Page 32 Jaakko Henttonen: NDEP – a partnership delivering concrete results for the Baltic and Barents Seas Page 33 Bernd Henningsen: Germany and the Baltic Sea region Page 35 Gunnar Lassinantti: Baltic Sea region cooperation at a crossroad Page 36 Bjarke W. Bøtcher: Growth in vessel transport necessitates regional cooperation on maritime safety and security Page 37 Mervi Pitkänen: Baltic Sea region clusters as platforms for a global maritime growth potential Page 38 Julian Skelnik : Regional and European determinants in favour of the development of the port of Gdansk Page 39 Gunnar Prause: Air cargo in the Baltic Sea region Page 41 EXPERT ARTICLES CONTINUED ON NEXT PAGE To receive a free copy, print or register at www.tse.fi/pei Baltic Rim Economies Quarterly Review ISSUE NO. 1, 29 FEBRUARY 2012 EXPERT ARTICLES CONTINUED: Jussi Rautsi: The new EU Territorial Agenda – a Baltic Sea region perspective Page 42 Tobias Etzold: Nordic cooperation – the adaptation process continues Page 43 Johanna Reiman: WHO Healthy Cities promote cross-sectoral work to tackle unhealthy lifestyles Page 44 Jacob Carstensen: The Baltic Sea below the surface Page 45 Grazyna Sapota: Sustainable Development Strategy for the Baltic Sea Region Page 46 Andrzej Jagusiewicz: “Three in one”– the recipe to save the Baltic waters and its ecosystems Page 47 Lotta Nummelin: The Baltic Sea and cities – the flow goes both ways Page 48 Andrzej Tubielewicz and Marcin Forkiewicz: How an age friendly environment can be promoted in the Baltic Sea region Page 49 Agata Mężyńska: What is there in between competition and competition? – investment promotion in Policy Action Plan for the Marketing of the Baltic Sea Region Page 51 Daniel de Graaf: Boosting sustainable production in SMEs in the Baltic Sea region – challenges and solutions identified by the SPIN project Page 52 Agnieszka Kowalcze: Why stay in the Baltic Sea region? Page 53 Veli-Pekka Tynkkynen: Russia as an environmentally responsible energy superpower? Page 54 Leonid Karabeshkin: Energy nationalism and cooperation in the Baltic Sea region Page 55 Jörg Hackmann: Does history pose an obstacle to Baltic identity? Page 56 To receive a free copy, print or register at www.tse.fi/pei Expert article 939 Baltic Rim Economies, 29.2.2012 Quarterly Review 1ƒ2012 Europe's energy future is in gas and in Central Asia By Günther Oettinger Europe is waking from a prolonged recession. Growth is flares. South of the Caspian, there is Iraq, and the back. Looking forward, we can see that Europe's government in Baghdad is looking for a solid partner to prosperity, our competiveness, rests on getting all the develop its domestic market and the export option. elements of a successful economy right. Sufficient, reliable Production costs of gas in these countries are globally and affordable energy supplies are a major factor among competitive. Yet, there is no economic export route for this those elements. But as Gazprom CEO Alexei Miller said gas to market. recently “The European market is skyrocketing: ….by The European Union has launched the Southern Gas December gas is expected to cost around USD 500 under Corridor initiative to bring these new producers into the our long-term contracts. I believe these are not the last European market. We have active buyers. But we have record figures for this year.” Input prices for fuels threaten few active producer companies driving the process. growth. Over the next 6 months, the European Commission will Yesterday's oversupplied gas markets are tomorrow's develop its Southern Corridor strategy and enhance it tight market. There is money in natural gas. But that means further. It is looking for upstream investors, from whatever that gas, an essential input, will drive up the costs of background, who can drive the process to open the Standort Europa. For the economy's sake, we must bring Southern Corridor and underwrite the infrastructure to get supply competition by getting more pipelines to new these sources of supply to market. The Commission suppliers and companies, and we must expand the LNG supports various pipeline projects linking the Caspian market. region to Europe. Nabucco, a dedicated gas pipeline from Moreover, Europe has to achieve its carbon targets. Azerbaijan to the heart of Europe, would have the largest After Fukushima, gas is more attractive, being relatively a capacity among them. Together with it we also support low carbon fuel. It complements intermittent renewables -- regional pipeline solutions across the Caspian. We are like wind – well. It is plentiful, and there are lots of producer committed to put in place a generic and welcoming regime countries. Gas is about to become a fuel of choice. for investment in these regions and in the transit routes to The shame is that Europe is not connected to as many Europe. We will accommodate the necessary company co- potential suppliers as it should be, despite most of the operation to get the Southern Corridor open. We will make producers being within economic range of pipelines or LNG sure that the companies involved have a stable, long-term routes. We have three established supply routes with perspective to enter the EU market. Norway, Russia and Algeria. We will have a growing Europe is not offering subsidy. It is offering a stable import market. A comfortable oligopoly of suppliers in long-term market with good prices and the best customers Europe is evident. There is evident demand from in the world. consumers to have more suppliers, witnessed by the number of consumer-led diversification projects. This makes us look at the perspective of gas imports from Central Asia and the Middle East. Collectively the region between Kazakhstan and Egypt has much more gas Günther Oettinger than Russia – by a factor of 1.5. In Central Asia, the worlds 4th largest proved reserve, Turkmenistan, is asking for a EU Energy Commissioner solid commercial commitment from our companies, in the purchase and in the extraction of natural gas. Azerbaijan, European Commission whose potential is globally significant, is also in view. Behind these stand Kazakhstan and Uzbekistan. The Caspian countries are abundant in gas; they actually burn 9.8 billion cubic metres of natural gas every year – as 1 Pan-European Institute To receive a free copy please register at www.tse.fi/pei Expert article 940 Baltic Rim Economies, 29.2.2012 Quarterly Review 1ƒ2012 The Baltic Sea protection – a challenge for Lithuania and for the whole Baltic Sea region By Gediminas Kazlauskas The Baltic Sea is one of the youngest seas in the world for the Baltic Sea issues that are the most relevant and for with a unique ecosystem, which is probably one of the the sea area. The National Baltic Sea Environmental largest brackish water bodies on the Earth. Aspects, such Strategy has been implemented in accordance with the as reticence and water exchange (exchange of water within Action Plan for 2010–2015 having specific environmental 30 years), which leads to the Baltic Sea known as one of measures in line with the other Baltic Sea countries.
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