Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Bulgaria: Toward Blue Economy Public Disclosure Authorized Development December, 2020 II Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 1 Table of contents © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Abbreviations and Acronyms 3 Telephone: 202-473-1000; Internet: www.worldbank.org Acknowledgements 6 Executive Summary 7 Introduction 16 Chapter 1. Snapshot of Bulgaria’s Coastal and Marine Economy 20 Chapter 2. The Blue Economy’s Development Context 24 2.1. Blue economy development framework 25 2.2. The value of natural capital is central to the blue economy 28 2.3. Blue economy for the black sea: the common maritime agenda 29 Chapter 3. Bulgaria’s Coastal and Marine economy 31 3.1. Economic geography of coastal and marine space 32 3.2. Threats to the black sea marine environment 33 3.2.1. Pollution 33 SOME RIGHTS RESERVED 3.2.2. Depleting marine resources 34 This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions 3.2.3. Climate change 35 expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank 3.3. Pillars of the blue economy 36 or the governments they represent. The World Bank does not guarantee the accuracy of the data 3.3.1. Coastal and marine tourism 37 included in this work. The boundaries, colors, denominations, and other information shown on any map 3.3.2. Fisheries and aquaculture 41 in this work do not imply any judgment on the part of The World Bank concerning the legal status of any 3.3.3. Marine non-living resources: extraction of minerals, oil, and gas 44 territory or the endorsement or acceptance of such boundaries. 3.3.4. Maritime transport, ports, shipbuilding, and ship repair 46 3.3.5. The potential of emerging blue economy sectors 50 RIGHTS AND PERMISSIONS Chapter 4. Financing the Blue Economy 55 The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as Chapter 5. Policies and Institutions for Advancing the Blue Economy 58 full attribution to this work is given. 5.1. Strategies and legislation 59 5.2. Institutions and stakeholders 59 5.3. Research and innovation 61 ATTRIBUTION Chapter 6. Enabling Framework for a Blue Economy in Bulgaria: Policy Recommendations 64 Please cite the work as follows: “World Bank. 2020. Bulgaria: Toward Blue Economy Development.” 6.1. Blue economy policy framework 65 © World Bank.” 6.2. Coastal and marine tourism 69 The picture on the cover (both sides): Sozopol harbor – old town 6.3. Fisheries and aquaculture 70 All pictures’ copyrights were kindly granted by: Eolina Milova, Svetoslav Stoyanov, Emil Martinov, Margarita 6.4. Emerging blue economy sectors 72 Stancheva and Ivelina Taushanova. 6.5. Pollution-free marine environment 74 All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; Conclusions 76 e-mail: [email protected]. References 77 2 Bulgaria: Toward Blue Economy Development Bulgaria: Toward Blue Economy Development 3 LIST OF FIGURES Figure 1. Blue Economy Employment in Established Sectors 22 Abbreviations and acronyms Figure 2. Blue Economy Contribution to GVA of Established Sectors 22 Figure 3. Blue Economy Development Framework 26 Figure 4. The Blue Economy and Natural Capital 29 BEDF Blue Economy Development Framework Figure 5. BBSEA Components 30 BPI Co. Bulgarian Ports Infrastructure Company CCMS Centre for Coastal and Marine Studies Figure 6. Bulgarian Black Sea Coastal and Maritime Area 32 CMA Common Maritime Agenda Figure 7. Marine Parts of the Natura 2000 Network in Bulgaria 33 EAFA Executive Agency of Fisheries and Aquaculture Figure 8. Growth of Coastal and Non-Coastal Tourism in Bulgaria (2012–18) 37 EC European Comission Figure 9. Economic Contribution of the Fisheries Sector 42 ECA Europe and Central Asia Figure 10. Fish Production by Inland and Marine Waters and Aquaculture (tones) 42 EEA European Environment Agency Figure 11. Main Aquaculture Species in Bulgaria (2019) by volume 43 EEZ Exclusive Economic Zone Figure 12. Offshore Blocks for Exploration and Extraction of Oil and Gas 45 EGD European Green Deal Figure 13. Volume of Goods Transported via Bulgarian Ports 2009–18 46 EMFF European Maritime and Fisheries Fund Figure 14. Gross Weight of Goods Handled in Seaports in Bulgaria, by type of cargo 47 EU European Union (28 member states, including the United Kingdom) Figure 15. Loaded and Unloaded Goods in Bulgarian Black Sea Ports 48 FLAGs Fisheries Local Initiative Groups GDP Gross Domestic Product Figure 16. Conventional versus Ecosystem-Based Coastal Protection 51 GES Good Environmental Status Figure 17. Transitioning to Blue Economy as an Opportunity 65 GIS Geographic Information System GVA Gross Value Added LIST OF TABLES ICZM Integrated Coastal Zone Management Table E.1. Bulgaria’s Maritime Economy at a Glance (2018) 8 IMO International Maritime Organization Table 1. Bulgaria’s Maritime Economy at a Glance (2018) 21 IO-BAS Institute of Oceanology-Bulgarian Academy of Sciences IUU Illegal, Unreported, and Unregulated Table 2. Evolution of Maritime Transport, Port Activities, and Shipbuilding and Repair (GVA) 46 LNG Liquefied Natural Gas Table 3. Maritime Ports Infrastructure 47 MoAFF Ministry of Agriculture, Food and Forestry MoEc Ministry of Economy LIST OF BOXES MoEn Ministry of Energy Box 1. BEDF Toolkit Elements Enabling Adaptation to Country-Specific Conditions 27 MoEW Ministry of Environment and Water Box 2. Integrated Management Plans for Norway’s Marine Areas 27 MoRDPW Ministry of Regional Development and Public Works MoT Ministry of Tourism Box 3. China’s Blue Economy Experience 28 MoTITC Ministry of Transport, Information Technology and Communications Box 4. Wind Energy along the Bulgarian Coast 50 MPA Marine Protected Areas Box 5. Beneficial Impacts of a Multisector Approach 51 MS Member State Box 6. MSFD (Directive 2008/56/EC) Objective 52 MSFD Marine Strategy Framework Directive Box 7. Implementation of the MSFD: Status of the Marine Strategy 53 MSP Maritime Spatial Planning Box 8. Multi-Use Concept Supports a Circular Economy, Industrial Symbiosis Models, MU Multi-Use and a Blue Economy 54 MW Megawatt Box 9. Blue Economy Government Stakeholders 60 NM Nautical Miles NSI National Statistical Institute NUTS Nomenclature of Territorial Units for Statistics codes of Bulgaria OECD Organization for Economic Co-operation and Development PoMs Program of Measures R&D Research and Development SDGs Sustainable Development Goals SMEs Small and Medium-Sized Enterprises SRIA Strategic Research and Innovation Agenda for the Black Sea TAC Total Allowable Catches UCH Underwater Cultural Heritage WFD Water Framework Directive WWTP Wastewater Treatment Plant 4 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 5 Krapets North beach 6 Bulgaria: Toward Blue Economy Development Bulgaria: Toward Blue Economy Development 7 Acknowledgements Executive Summary he team is grateful to all government officials from the Ministry of Transport, Information Technolo- i. This Policy Note reviews the challenges and opportunities that are central to the transition of gy and Communications of the Republic of Bulgaria for the insights and generous cooperation pro- the Republic of Bulgaria’s key marine-based economic sectors to blue economic development. The T vided, especially under the challenging circumstances of the global pandemic lockdown. The team term “blue economy” refers to the sustainable use of ocean and maritime resources for economic growth, is especially grateful to Ms. Nadezhda Buhova, Director of European Affairs and International Cooperation; improved livelihoods and jobs, and the lasting health of ocean and maritime ecosystems. The note takes Mr. Dimitar Savov, Director of the Transport Policy Directorate, Ministry of Transport, Information Technolo- a closer look at sector opportunities as a mix of interconnected economic activities that complement or gy and Communications; Ms. Tatiana Savova, Head of Unit; Ms. Ana Kardzheva, Common Maritime Agenda build on each other. The objective is to inform Bulgaria’s vision and strategy for transitioning to a blue Coordinator for Bulgaria; and Mr. Peter Benov, expert at the Transport Policy Directorate, Ministry of Trans- economy. The note highlights development risks and charts a way forward, factoring in future challenges port, Information Technology and Communications, as well as to Ms. Atanaska Nikolova, Deputy-Minister of and drivers to substantially advance Bulgaria’s policy and investment alignment with the European blue Environment and Water; Ms. Sylvia Rangelova, Director of European Union Coordination and International economy initiatives. It also identifies the challenges and opportunities in shaping blue economy develop- Cooperation; Ms. Iliana Todorova, Director, Water Policy Directorate, Ministry of Environment and Water; ment based on a holistic ecosystem approach to the management of coastal and marine resources. Ms. Desislava Konsulova, Director of the Black Sea Basin Directorate; Ms. Denitsa Nikolova, Deputy-Min- ister of Regional Development and Public Works; Ms. Tzvetelina Atanasova, Director General, OP Regions in Growth; Mr. Ivaylo Stoyanov,