Nordic Council of Ministers Wednesday, December 23, Session on Green Growth EU Baltic Sea Strategy - Annual Forum Tallinn October 2010 Green Growth in Kaliningrad, Russia by Director, Arne Grove Information Office of Nordic Council of Minister in Kaliningrad

Nordic Council of Ministers Kaliningrad - a region in BSR 12/23/20152

Nordic Council of Ministers NCM in Kaliningrad Office registered and in operation since June 2006 Network- and knowledge-building activities Workshops, seminars and study visits Facilitating cooperation within BSR No financial instruments for investment, but we cooperate with and promote NEFCO, EBRD and IFC Strategic partners include i.a. –Helcom –BASREC & NDPHS –Baltic Development Forum –Association of European Business in Russia 12/23/20153

Nordic Council of Ministers Green activities I Helcom 7 Stakeholder workshops with focus on Helcom Baltic Sea Action plan in 6 regions of NW Russia Cooperation with Helcom and SIDA on implementation on strategic projects as e.g. BALTHAZAR and Baltic COMPAS NGO project on Espoo Convention Facilitating Russian participation in BRISK via BRISK_RU cofinanced by NCM. –Assessment of risk for oil spill in the Baltic Sea –Sub-regional agreements to reduce risks from oil spils –Coordinated investment plan to reduce risks from oil spils 12/23/20154

Nordic Council of Ministers Green activities II Energy cooperation with NW Russia, –Study visits to Nordic Countries –Seminars in NW Russia Networks and relationships established –Energy managers of 11 regions of NW Russia including i.a.: Kaliningrad, Pskov, Karelia, Leningrad region and St. Petersburg City –Energy managers of municipalities in Kaliningrad region. Contribution to planning energy- saving at local level, Federal law on Energy-saving form /23/20155

Nordic Council of Ministers Observations until now Helcom BSA and EU BSR Action plan instruments for setting priorities in our cooperation with NW Russia The attitude to energy saving has changed from 2008 to 2010, NCM has played a role in NW Russia There is a huge market for Nordic and EU business within energy and environment Barriers including i.a. Russian tariff policy market No “market follow up” projects on “Pilot projects” Russian know how, technology and market system is not developed to attract private investments to meet the demand Development of business cooperation is not developed except for outstanding examples as Rockwool, Siemens and other big brands 12/23/20156

Nordic Council of Ministers Wednesday, December 23, A note on Russia and the Baltic Sea Strategy Though Russia is not a formal partner of the EU Strategy for the Baltic Sea Region, Russia is ready to cooperate and participate in areas of joint interest. Green Growth is one such area of joint interest. Consequently NCM works to facilitate integration and engage with Russian partners also within the context of the EU Baltic Sea Strategy.

Nordic Council of Ministers Wednesday, December 23, Business integration of Kaliningrad in BSR Need for a systematic approach to develop business cooperation First attempt is the project “Business integration of Kaliningrad in the Baltic Sea Region” The project aims to: a) Analyze the market for energy efficiency technologies and renewable energy solutions in Kaliningrad. b) Identify and communicate market opportunities for Nordic companies and partners in Kaliningrad.

Nordic Council of Ministers Wednesday, December 23, Business integration of Kaliningrad in BSR The project Steering Group – with members from Russia and public and private partners in BSR – met on 8 October The Steering Group concluded: - There is a great interest for cooperation on EE (and RE) - The project will focus on: 1) Conversion from coal to biofuel in 6 local district heating systems; 2) Introduce energy saving street light; and showcase/promote SmartHouses. - There is a need for public-private dialogue that to accelerate innovation and competitiveness (using the cluster approach)

Nordic Council of Ministers Wednesday, December 23, Business integration of Kaliningrad in BSR Green Growth benefits: Conversion from coal to bio-fuel; energy saving street light; and SmartHouses all provides excellent new green business opportunities in Russia for companies in the BSR. Other benefits: Development of clusters and innovation systems in Kaliningrad offers new opportunities for private and public partners to cooperate with Russia. Possibly, the new partnership with Russia could spill over to benefit also the BSR flagship project on cluster development (Project 7.1: Develop a Baltic Sea Region Programme for Innovation, Clusters and SME-Networks).

Nordic Council of Ministers Wednesday, December 23, Next steps and implications for BSS Implications: Based on the experiences on EE, RE and business integration, the NCM is now preparing a more extensive programme to facilitate business integration of Kaliningrad in BSR, with perspectives to cover other parts of NW Russia. Kaliningrad and NW Russia can benefit from a number of ongoing BSR activities. Currently, potential and emerging clusters in Kaliningrad are being reviewed (ICT and nanotechnology, life science, food & meat processing, furniture, tourism, energy & cleantech).

Nordic Council of Ministers Wednesday, December 23, Thank you!