Communiqué adopted at the Baltic Sea Region Energy Cooperation (BASREC) Conference of Ministers in Copenhagen

17-18 February 2009

 

 

The Ministers of Energy of Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Russia and Sweden, and the European Commissioner for Energy convened in Copenhagen on 17 and 18 February 2009. These countries and the European Commission (hereafter referred to as the Parties) are the members of BASREC.

 

The Delegations of the Netherlands, Slovakia and the United Kingdom attended the conference as observers. Delegations of Baltic Development Forum, the Baltic Sea Parliamentary Conference (BSPC), the CBSS, the Energy Charter, the International Energy Agency (IEA), the Nordic Council of Ministers, and International Financial Institutions also attended the conference.

 

BASREC is a part of the Council of the Baltic Sea States (CBSS), and the energy co-operation therefore takes place within the Northern Dimension Policy Framework. In this context, BASREC may serve as a complement to the EU-Russia energy dialogue. Furthermore, work within BASREC will take the reform process within the CBSS into consideration, as well as the planned EU strategy for the Baltic Sea region.

 

The Parties took note of the information on their co-operation in the period 2005-2008 and adopted this communiqué, which defines the framework for the next three-year period. Reference is made to previous ”BASREC” Ministerial Conferences in Stavanger 1998, in Helsinki 1999, in Vilnius 2002 and in Reykjavik 2005.

 

The Parties addressed the coherence of energy and climate policy issues and emphasised that continuation of their close co-operation is essential for efficient and sustainable development in the region. Stable and secure energy supplies are important for economic growth and welfare in the region, which can be achieved in harmony with climate change requirements.

 

The Parties confirmed their will to continue to strengthen energy co-operation in the next three-year period (2009-2011), in order to sustain the integration of the energy markets and the energy infrastructure as well as to ensure competitive, stable and secure energy supply in the region. Development of effective energy systems, promotion of energy efficiency and the use of renewable energy are essential to meeting the challenges of energy and climate policy issues.  

 

The Parties welcomed the information about the outcome of the Baltic Sea Testing Ground Facility (TGF), which is a regional climate fund providing financing for Joint Implementation projects within the framework of the Kyoto Protocol via the purchase of emission credits. The fund comprises EUR 35 million and is structured as a Public-Private Partnership shared equally by public and private contributions. The TGF is administrated by the Nordic Environment Finance Cooperation (NEFCO). At the end of 2008 about 94% of the fund’s capital is committed and the remainder of projects is to be contracted in 2009. 

 

BASREC represents a unique and important forum for dialogue on global climate change and energy policy issues with important producers of oil and gas, not least because these producers are members of BASREC. In this respect, BASREC is a natural facilitator of strengthened partnership. 

 

The Parties confirmed their commitment, strengthened during the United Nations Framework Convention on Climate Change - COP 14 - conference held in Poznan in December 2008, to the ongoing negotiations on a post-2012 global-climate agreement and agreed to work out and put forward a statement from BASREC addressing climate and energy-related issues at COP15 to be held in Copenhagen in December 2009. This statement will mainly propose a future avenue regarding energy efficiency and renewable energy in general, including measures that must be taken, such as the use of low-carbon, energy-efficient technologies and clean coal technology, especially Carbon Capture and Storage (CCS)..

 

For many years, to come fossil fuels are expected to continue to be an important part of the member countries’ energy mix. However, increasing use of renewable energy, energy efficiency (EE) and common efforts on research and development of new energy technologies will contribute to reducing greenhouse gas (GHG) emissions from energy use. In addition, CCS technology can play an important role in reducing GHG emissions. The meeting welcomes the initiative and efforts taken by member countries and industry to promote the demonstration of CCS technology projects.

 

The general energy perspective of climate issues is to reduce CO₂ emissions from energy use. The meeting recognised that this effort requires a comprehensive catalogue of specific measures. Organised in an effective manner, these can pave the way for a significant contribution by the Baltic Sea Region to addressing the issues of global climate change. The Parties stressed the importance of further co-operation and exchange of knowledge on energy efficiency and energy savings as well as on the potential of renewable energy in many member countries. In this context the Parties further welcomed the Baltic Sea Bio-energy Promotion project, jointly developed by BASREC and Baltic 21, as a strategic effort to strength the competiveness and sustainable use of bio-energy in the Baltic Sea Region and contribute to the EU target of 20% renewable energy by 2020.

 

Stable and secure supplies of energy as well as well-functioning, competitive energy markets require efficient transport routes for electricity and natural gas. The parties welcomed the European Commission’s Second Strategic Energy Review in November 2008, including an initiative to develop a Baltic Energy Market and Interconnection Plan (BEMIP) covering electricity, gas and storage. The plan will identify the solutions to remove barriers to market integration and the infrastructures needed to ensure effective interconnections between the countries in the Baltic Sea Region and the rest of Europe. A roadmap will be agreed to facilitate the implementation of the plan, which is crucial for guaranteeing trade of energy and a secure, reliable and diversified energy supply in the region.

 

The Ministerial Conference served as a platform for assessing the first developments of a Baltic Energy Market and Interconnection Plan. The Parties agreed on the importance of creating well-functioning energy markets and the necessary interconnections on which such markets depend.

 

The Parties acknowledged that financial means may be useful for the acceleration of the realisation of the Baltic Energy Market and Interconnection Plan, as security of supply aspects may justify such intervention. The Parties took note of the EU’s Economic Recovery Plan which should be discussed further. The TEN-E-Programme will continue to provide financial support to infrastructure development. The European Structural Funds may also be used for this purpose. In this connection, the participating international investment banks emphasised their willingness to participate actively in the financing of infrastructure projects and other energy projects, where appropriate. The Parties noted that the region is still in need of investments in the energy sector for it to address climate issues and secure energy supplies.

 

The Parties welcomed the establishment of the International Renewable Energy Agency (IRENA). IRENA is to promote fast adoption and sustainable use of renewable energy worldwide. Its tasks will include practical advice and support for both industrialised and developing countries on the expansion of renewable energy and the promotion of better regulatory frameworks. IRENA will co-operate closely with other international initiatives working with renewables, including BASREC.

 

The Parties acknowledged that rehabilitation and development of existing district heating systems in combination with increased use of combined heat and power (CHP) are essential for widespread and efficient use of renewables. There is great potential for increasing the effectiveness of the district heating systems and promoting CHP in the region. Countries that already have efficient district heating systems and extensive experience in the use of renewables in CHP plants could contribute to harnessing this potential through sharing of experience and knowledge.

 

The Parties confirmed that their co-operation in the upcoming three-year period will concentrate on the following energy topics in order to meet global energy policy and climate policy challenges:

 

·        Security of energy supply

·        Development and integration of energy infrastructure in the region

·        Energy efficiency and savings

·        Increased use of renewable sources with specific focus on the forms of energy potentially dominant in the region

·        Increasing renewable sources in the heat market

·        Rehabilitation and development of district heating systems and CHP in order to facilitate the use of biomass

·        Development of Clean Coal Technology

·        Demonstration of Carbon Capture and Storage (CCS)

·        Energy policy issues for the post-Kyoto period

 

The Parties are committed to engaging in reviews, studies, workshops/seminars, small projects and other activities carried out within the following fields:

• Best practices for deployment of energy efficiency (EE) and renewables in the energy sector
• Integration of fluctuating wind power into the electricity system
• Legal and financial frameworks to promote the objectives for increased EE and use of renewables
• Integration of regional electricity and gas markets, including assessment of supply and demand and the need for new production capacities.

 

The Parties recognised the need for financial contributions from each member country in order to carry out reviews, studies, workshops, projects and other activities for the next three-year period of co-operation.

 

The Parties agreed on BASREC having a budget framework for carrying out activities of EUR 1 million for the three-year period 2009-2011.[1] All member countries are to participate in raising the funds and are to contribute in accordance with the CBSS key.

 

The funds will either be directed to a specific BASREC account, which is to be administered by CBSS. Alternatively, the BASREC member countries will finance reviews, feasibility studies, workshops, small projects and other activities and events directly. The BASREC budget framework can only be used after decision and approval by the Group of Senior Energy Officials (GSEO). Periodically, the chair of BASREC will present a report including the state of project realisation and the distribution of the BASREC budget framework.

 

Each presidency must finance and undertake the secretarial function during its presidency. The Executive Committee (the four chairmanships during this co-operation period) is to assist the presidency in its work and ensure continuation of the work during the yearly rotating presidencies of BASREC.

 

GSEO is appointed to organise the work of implementing the recommendations and decisions agreed upon, to seek financing for task fulfilment and to secure proper and adequate reporting, as well as sound co-ordination of the work, also with other international energy or financial organisations, where appropriate.

 

BASREC members at ministerial level will meet when necessary, but no later than in 2011.