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ENTR F3 The European Union and the Economic Development of the Arctic Seminar: The West-Nordic Arctic: A growth potential at the door of Europe 03 July.

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Presentation on theme: "ENTR F3 The European Union and the Economic Development of the Arctic Seminar: The West-Nordic Arctic: A growth potential at the door of Europe 03 July."— Presentation transcript:

1 ENTR F3 The European Union and the Economic Development of the Arctic Seminar: The West-Nordic Arctic: A growth potential at the door of Europe 03 July 2014, Brussels Ugo Miretti European Commission, DG Enterprise and Industry F3 - « Raw Materials, Metals, Minerals, and Forest-based industries »

2 ENTR G3 ENTR F3 EU Arctic Policy: Background The Arctic Communication by the Commission (2008) The Council Conclusions on Arctic issues (2009) The European Parliament Resolution on a sustainable EU policy for the High North (2011) On 26 June 2012, Communication JOIN(2012) 19: Developing a European Union Policy towards the Arctic Region: progress since 2008 and next steps On 15 May 2013: positive endorsement of the EU's observer status by the Eighth Ministerial Meeting of the Arctic Council On 12 March 2014: European Parliament resolution on the EU strategy for the Arctic (2013/2595(RSP) On 12 May 2014: Council conclusions on developing a European Union Policy towards the Arctic Region 2

3 ENTR G3 ENTR F3 EU Arctic Policy: next steps The EU Institutions are thus strongly committed to a strong and active Arctic policy. In particular, the Council encouraged "the Commission and the High Representative to present proposals for the further development of an integrated and coherent Arctic Policy by December 2015". The Arctic is thus going to be a priority for the new Commission, whose services will also focus on "ensuring effective synergies between the various EU funding instruments in the Arctic region". 3

4 ENTR G3 ENTR F3 EU Arctic Policy: Reasons Three EU Member States are members of the Arctic Council; others, such as Iceland and Norway, have strong links with the EU The strategic importance of the Arctic is growing (transport, resources, climate change) It is in EU interest, as well as in the Arctic countries’, that the economic development of the region is managed sustainably The EU Arctic approach (2012 Comm) rests on three columns: Knowledge, Responsibility, Engagement 4

5 ENTR G3 ENTR F3 EU Arctic Policy: Knowledge 5 Arctic research is key to understand the impact of climate change and to allow sustainable development The EU has been the largest contributor to international Arctic research: over 200 million Euros (FP 6 and 7) Twelve projects helped enhance monitoring and data availability, another eight supported research networks and infrastructures The EU also supports information networks, and is exploring the possibility of creating an European Arctic Information network First step: the preparatory action for the strategic assessment of the development of the Arctic The EU is also developing spaced-based applications and monitoring tools (Copernico and Galileo Initiatives)

6 ENTR G3 ENTR F3 EU Arctic Policy: Knowledge 6 Horizon 2020: the new EU research financing programme Horizon 2020 will run from 2014 to 2020 with a budget of just over €70 Billion. The first round of proposals have been received and are being evaluated. It will have an even bigger impact on Arctic research (strong focus on links with third countries) Information on how to participate is available at Most relevant for the Arctic: WP2014-2015 for Societal Challenge 4: “Smart, green and integrated transport” Societal Challenge 5: "Climate action, environment, resource efficiency and raw materials“

7 ENTR G3 ENTR F3 EU Arctic Policy: Responsibility The EU Arctic policy emphasizes the sustainable use of resources and high safety standards. With increasing oil exploration and mining activities taking place in the region, these are high concerns; the EU is working with the private sector to develop sustainable, low-risk technologies for the extractive and shipping industries. To develop the economic, environmental and social potential of the Arctic, the EU has so far provided one Billion Euro through its funds: European Regional Development Fund (ERDF), the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries. Special attention is reserved for indigenous and isolated populations, also through the Northern Periphery Programme (project budget of 45 million Euro). The EU is also the largest contributor to the Support Fund of the Northern Dimensions Environmental Partnership (NDEP). 7

8 ENTR G3 ENTR F3 EU Arctic Policy: Engagement The EU wishes to increase cooperation with her Arctic partners: Contacts and exchanges are ongoing with all Arctic countries bilaterally Engagement with non-governmental organisations and indigenous groups is being enhanced The EU participates as observer in the Arctic Council and is working for the full implementation of the Kiruna decision It is a full member of the Barents Euro-Arctic Council The Northern Dimension has created a successful cooperation framework including countries and international financial institutions Arctic research cooperation with the US and Canada is being strengthened The EU-Greenland partnership will open up important new opportunities 8

9 ENTR G3 ENTR F3 EU Arctic Policy: Energy The challenge: to strike the right balance between industrial policies and climate change The EU is committed to re-industrialize Europe (20% GDP) This has to happen in the context of our climate policy The new energy and climate framework 2020-2030 aims exactly at mitigating emissions while maintaining industrial competitiveness Nowhere is such a balance as delicate as in the Arctic: -it holds 13% and 33% of undiscovered supplies of gas and oil (US Geological Survey) -thus, it could contribute to our energy security and provide important revenues to the Arctic states -but the Arctic environment is extremely sensitive and vulnerable to climate change 9

10 ENTR G3 ENTR F3 EU Arctic Policy: Maritime and Space Traditional shipbuilding has been severely hit by the crisis Advanced segments including arctic-equipped vessels have better perspectives The new EU LeaderShip 2020 is focusing on this: -Stronger focus on innovation and research -Wider range of stakeholders included: also the clients, such as ship- owners or energy industry -Coordination with other programmes is foreseen, such as COSME for SMEs, including coastal smart specialization and clustering, and Horizon 2020 EU space research and programmes could greatly assist in monitoring and communication 10

11 ENTR G3 ENTR F3 EU Arctic Policy: Raw Materials Raw materials are a significant, if challenging, opportunity for the Arctic The EU Raw Material Initiative aims at ensuring sustainable supply from EU and non-EU sources The European Innovation Partnership on Raw Materials and its Strategic Implementation Plan involve the Arctic in multiple ways: -Through the technology areas, particularly exploration and extraction -Through the non-technology areas, particularly the knowledge base and the infrastructure -Through the international cooperation aspects (Raw Materials Diplomacy: policy dialogues and strategic partnerships) 11

12 ENTR G3 ENTR F3 EU-Greenland Cooperation Greenland has a vast raw material potential, and a strong interest to develop it to diversify its economy and boost its exports The EU has a strong interest to ensure and diversify its supply of raw materials Greenland has a particularly strong potential in six of the elements on the EU critical raw materials list: -Niobium -platinum group metals -rare earths -tantalum It could thus be a vital supplier of indispensable inputs to the production of high-tech goods (electronics, automotive, renewable energy solutions and navigation systems) 12

13 ENTR G3 ENTR F3 EU-Greenland Cooperation A letter of intent on co-operation in the area of raw materials was signed on 13 June 2012 in Nuuk by prime Minister Kleist on behalf of Greenland and Vice-President Tajani, Commissioner Piebalgs of the Commission. The letter stressed the mutual interests: diversification of the Greenlandic economy and security of supply of strategic raw materials for the EU, in a context where most licenses went to non-EU operators. It foresaw cooperation in a number of fields, ranging from geological knowledge to the environmental and social issues related to mining. The letter sets the strategic framework for the EU-Greenland relationship, and provides guidance for cooperation. 13

14 ENTR G3 ENTR F3 EU-Greenland Cooperation Of course, the EU-Greenland dialogue goes beyond Raw Materials. The main areas of cooperation (the Fisheries Partnership Agreement is also dealt separately) are defined by the Council Decision 2014/137/EU: education and training, tourism and culture; natural resources, including raw materials; energy, climate, environment and biodiversity; Arctic issues; the social sector, mobility of the workforce, social protection systems, food safety and food security issues; research and innovation in areas such as energy, climate change, disaster resilience, natural resources, including raw materials, and sustainable use of living resources. 14

15 ENTR G3 ENTR F3 EU-Greenland Cooperation Discussions are ongoing on the financial support (Programming Document) for cooperation with Greenland in the period 2014-2020 within the MFF. The choice of focal sectors for financial cooperation in the period 2014-2020 is being finalised in consultations between the parties. Education will remain a priority as in 2007-2013, but another sector might be added, and a more targeted approach chosen. The support will amount to 217.8 million € for the whole period, as foreseen by Council Decision 2014/137/EU. Cooperation in raw materials could also be supported through horizontal programmes, particularly Horizon 2020. 15

16 ENTR G3 ENTR F3 Study on EU needs with regard to cooperation with Greenland A study has been tendered to assess the needs of the EU- Greenland cooperation in the area of mineral resources The contractor group, led by Milieu, is currently collecting data and stakeholders opinions Special focus on the downstream industry and the policy options on which type of projects to support Areas to be assessed: geological knowledge analysis of infrastructure and investment needs competence building environmental issues related to mining social impacts of mining 16

17 ENTR G3 ENTR F3 EU-Greenland workshop in November 2014 The Commission plans a workshop to follow up on the EU- Greenland dialogue: 1.Internal meeting between the government of Greenland and the Commission 2.Workshop of European end-users with mining companies operating in Greenland 3.Meeting of the Government of Greenland and the Bureau of Minerals and Petroleum with European mining companies on opportunities for European investment The workshop will draw on the results of the study, and discuss the concrete implementation of the EU-Greenland dialogue. 17

18 ENTR G3 ENTR F3 Thanks for your attention! Contact: 18

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