OSCE, Alm.del - 2009-10 - Bilag 56: 2nd Committee Final Follow-Up Report

Introduction ..................................................................................................................................... 2Declaration ...................................................................................................................................... 3Energy Security and Co-operation .................................................................................................. 5Climate Change ............................................................................................................................. 11Tax Havens ................................................................................................................................... 16Free Trade ..................................................................................................................................... 20Water Management ....................................................................................................................... 23

IntroductionParliamentarians representing 50 OSCE participating States met in Vilnius from 29 June to 3July 2009 to assess developments and challenges relating to security and co-operation, focusingon the general theme ofThe OSCE: Addressing New Security Challenges.In particular, theSecond General Committee on Economic Affairs, Science, Technology and Environment passedresolutions on energy security and co-operation, climate change, tax havens, free trade and watermanagement in the OSCE area.This report considers actions taken by the OSCE and its participating States in relation to theOSCE PA’s recommendations. With the strong support of parliamentary delegations and theOSCE governmental side, the report is intended to provide a general overview of relevantdevelopments by participating States and the OSCE.While the majority of the recommendations addressed here are found in the OSCE PA’s VilniusDeclaration of July 2009, key themes from past Declarations have also been considered, toensure greater continuity and scope. The International Secretariat would like to thank thedelegations which responded to the OSCE PA International Secretariat’s Questionnaire for theirsupport; the information provided by these answers have been an invaluable source in ourresearch. Responses from delegations are available from the International Secretariat, and PAmembers are encouraged to examine this valuable source of information, in the interests ofcontinuing exchanges of best practice.

DeclarationI.Vilnius Declaration, Chapter IIRecognizing that the global economic crisis “affects all three dimensions of security as describedin the Helsinki Final Act of 1975,” Chapter II of the Vilnius Declaration calls upon the KazakhChairmanship of the OSCE in 2010 and the Office of the OSCE Economic and EnvironmentalCo-ordinator “to address the consequences of the current financial and economic crisis in theOSCE area at the Eighteenth Annual OSCE Economic and Environmental Forum, as well as thepreparatory conferences in 2010.”The Declaration further stresses “the need for strengthened oversight and regulation of thefinancial system, at both the national and the international levels, to ensure greater transparencyand accountability.” It also encourages participating States to invest in environmentally friendlyindustries and “supports further development of the energy security dialogue in the OSCE.”II.OSCE Economic and Environmental Forum

The 18thOSCE Economic and Environmental Forum1took place in two segments: the first on 1-2 February 2010 in Vienna and the second on 24-26 May 2010 in Prague. It was preceded by twoexpert-level preparatory conferences – the first in Astana held 12-13 October 2009 and a secondone in Minsk on 15-16 March 2010. Considering the issue of the Eurasian transport corridors asa priority, the Kazakh Chairmanship defined the theme of the Forum asPromoting GoodGovernance at Border Crossings, Improving the Security of Land Transportation andFacilitating International Transport by Road and Rail in the OSCE Region.2During the First Preparatory Conference in Astana held on 12-13 October 2009, some 170participants discussed best practices in promoting good governance at border crossings,improving land transportation security and facilitating international transport by road and rail.The OSCE Centre in Astana supported the Office of the Co-ordinator of OSCE Economic andEnvironmental Activities, the Ministry of Foreign Affairs and the Ministry of Transport andCommunications in the organization of the conference. The Centre also facilitated theparticipation of representatives from Kazakh civil society and the private sector in the event.3III. Financial Stability BoardAt the London Summit of the G-20 the Financial Stability Forum (FSF) was reconstituted as theFinancial Stability Board (FSB). The FSB’s new mandate includes the promotion of globalfinancial stability and has a specific responsibility to “promote co-ordination and informationexchange among authorities responsible for financial stability.” In particular, the G20 Summits1

last year (in London and Pittsburgh) called on the FSB to take action to promote globaladherence to information exchange and supervisory co-operation standards.The Financial Stability Board in March 2010 launched an initiative to promote the adherence ofall countries to international financial standards, including by identifying non-co-operativejurisdictions and supporting them in efforts to improve their adherence. The initial focus of theinitiative is on adherence to international co-operation and establishing standards on informationexchange in the area of financial regulation and supervision.4IV. National Initiatives / Best PracticesIn its response to the questionnaire, the United Kingdom, which held the presidency of the G-20in 2009, points to its work in driving forward the agenda on international action on tax reform,financial regulation and money laundering. The UK welcomes the establishment of the FinancialStability Board and its initiative in promoting standards on information exchange.Canada points out that despite the financial crisis, no Canadian bank has failed and that nonerequired bailouts from the Canadian government, which Canada attributes to “their healthyleverage ratios and general lack of exposure to toxic assets as compared to their internationalpeers.” Canada points to its active systems of prudent and measured financial regulation, whichhas helped to create “one of the largest and soundest banking sectors in the world as noted by theWorld Economic Forum and Moody’s Investors Service.”As chair of the G-7/G-8 and co-chair of the G-20 for 2010, Canada is urging the adoption ofsimilar financial regulatory practices globally that have the right purposes and that are neitherexcessive nor arbitrary. The country actively promotes an action plan regarding theimplementation of commitments made on the part of the Member States at previous G-7/G-8 andG-20 meetings to improve the international financial system and strengthen internationalfinancial regulation. Canada is also proposing that national regulatory systems be subject tointernational peer review in order to enhance transparency.In January 2010 the German Bundestag adopted the implementation law to the Regulation No.1060/2009 of the European Parliament and the Council from 16 September 2009 regarding therating agencies. The Bundestag also dealt with regulations on stabilization of the financial stateof social security system, the law on easing the sanitation of an enterprise as well as various billsfor the EU on system risks of the financial market and better supervisory agencies.The Polish Parliament has recently passed laws strengthening the supervision of financialmarkets with the goal of ensuring greater transparency and accountability. These regulationsserve,inter alia,to prevent the spread of financial crisis across the Polish economy. Theadoption of these regulations resulted from previous actions taken by various entities (theGovernment, the National Bank of Poland, the Financial Supervision Commission, the Bank

Guarantee Fund, etc.) both at the national as well as international level (including the EuropeanUnion).Slovenia actively participates in procedures to establish the European system of FinancialSupervisors. The country supports the establishment of the three new European supervisoryagencies that will promote further integration of the European financial services market and alsostrengthen the co-operation of financial markets supervisors. Slovenia emphasizes theimportance of doing so in order to strengthen consistent application of supervisory practiceswithin the EU, ensure a co-ordinated response in crisis situations, establish mechanisms for thesettlement of conflicts among individual national supervisors, strengthen the role of the boardsof supervisors, enable transfer of supervisory tasks and facilitate co-ordination of work of theparticipating supervisory authorities.The former Yugoslav Republic of Macedonia reports that its banking sector is undergoingreforms in order to conform with European standards concerning opening of banks, security andprudence, as well as supervision. Also, ongoing efforts are being made harmonize Macedonianlaw with EU law and with internationally recognized principles for effective bankingsupervision. During 2009 the Government worked to further develop regulation of the bankingsector with the implementation of the Law on Banks and the bylaws in the field of banking, inorder, inter alia, to promote transparency.Since 2005, Liechtenstein has had an independent and integrated Financial Market Authorityperforming supervisory and regulatory functions for the financial sector. The licenses for allactivities of banks, investment and insurance undertakings, as well as other financial serviceproviders are issued by the FMA. As a member of the European Economic Area, Liechtenstein isobliged to transpose relevant EU legislation into national legislation. Accordingly, banking,insurance, securities and accounting legislation is based on the relevant EU directives.In Turkey, the enactment of the Banking Law Nr. 5411, the regulatory and supervisoryframework of the banking system has been reshaped in a more systematic way in the light ofinternational best practices. The new Banking Law gives the Banking Regulation andSupervision Agency all the powers to regulate, enforce and ensure the implementation of theestablishment, activities, management and organizational structure, merger, disintegration,change of shares and liquidation of banks and monitor and supervises enforcement of them. Theagency uses its powers through regulatory transactions and specific decisions taken by its Board.

OSCE Secretary GeneralIn response to the OSCE PA’s questionnaire, OSCE Secretary General Marc Perrin deBrichambaut stated that “OCEEA has developed some ongoing activities in co-operation withthe UNECE regarding the energy security dialogue, e.g. a conference on security of the energytransit in Central Asia, which will be held in Ashgabat. As an example of energy co-operation,the Energy Community Secretariat plans to participate in the next OSCE PA session, representedby its FYROM chairmanship.”5OCEEA and OSCE Office in MinskOn 7 July in Minsk, during the course of the Eastern Europe Regional Heads of Field OperationsMeeting, Goran Svilanovic, Co-ordinator of OSCE Economic and Environmental Activities heldinformal exchanges with Belarusian officials on potential areas of co-operation. Discussionswere held with Alexandr Apatsky, the First Deputy Minister for Natural Resources andEnvironmental Protection, and Semyon Kundas, Rector of the International SakharovEnvironmental University, a partner of the Office in the introduction of best practices forrenewable energies.6The following day the Co-ordinator met with Valery Voronetsky, the Deputy Minister of ForeignAffairs of Belarus, and outlined the priorities of the EED for the future. Mr. Voronetskyreaffirmed the full commitment of Belarus to strengthening the Economic and EnvironmentalDimension in the OSCE and the wish of his country to host a regional event on the protection ofcritical energy infrastructures, as well as the second preparatory conference of the 18thEasternEuropean Forum in the spring of 2010, under the Kazakh Chairmanship.7On 10 July the OSCE Office in Minsk and the Ministry of Environmental Protection and NaturalResources of Belarus (MNREP) reached an agreement on the conception and implementation ofthe public hearings foreseen under the Espoo Convention on Environmental Impact Assessmentin a Transboundary Context, regarding the new hydropower station to be built on the NemanRiver near the Lithuanian border.5

The hearings, which are aimed at involving the civil societies of both countries, are planned forOctober 2010 as a follow-up to the institutional workshop organized jointly with the Ministry inJune with Belarusian and Lithuanian experts. It is envisaged that such a process, once completed,will provide a model that can be applied in the future to new energy sites or infrastructureprojects implemented near borders.8OSCE Office in TajikistanOn 10-15 July an OSCE-supported environmental summer camp was held at Romit (to the eastof the capital city, Dushanbe) and attended by 110 youth participants from several Green Patrolgroups. They received educational lessons in renewable sources of energy, climate change,demographic and other environmental issues and participated in educational games related to theprotection of the environment. Additional events included similar camps held during this sameperiod in the eastern Gharm district, southern Qubodion district of Khatlon province as well asthe Green Patrols’ Summer Camp “Our Green Home 2009” (17-25 July) near the Qayraqqumtown of the northern part of Sughd province. Representatives of regional and local governments,Sughd Regional Nature Protection and Education Committees, NGOs and mass media werepresent at the opening and closing ceremonies.9OSCE Office in BakuOn 29 July the Head of the OSCE Office in Baku, Ambassador Bilge Cankorel (Turkey),discussed with the Deputy Minister for Industry and Energy, Gulmammad Javadov, thepossibility of co-operating in promoting renewable sources of energy in Azerbaijan. The Head ofOffice outlined several proposals for organizing joint conferences and providing technicalassistance in creating a legal and regulatory framework conducive to the development ofrenewable sources of energy in Azerbaijan.10Chairmanship Conference on Strengthening Energy Security in the OSCE AreaOn 6-7 July in Bratislava, the Greek Chairmanship organized the Conference onStrengtheningEnergy Security in the OSCE Area,in co-operation with the Ministry of Foreign Affairs of theSlovak Republic and the Office of the Co-ordinator of OSCE Economic and EnvironmentalActivities. The event provided experts and representatives of participating States with theopportunity to discuss ways to ensure energy security, prevent tensions or even supplydisruptions and foster dialogue, as well as ways to explore mutually beneficial collaborationthereby contributing to increased international co-operation.11Ibid.OSCE Office in Tajikistan: Activity Report, July 2009, p. 5.10As reported by the OSCE Office, The Government of Azerbaijan is putting great emphasis on this topic and hasadopted aState Programme on the Use of Alternative and Renewable Energy Sources in the Azerbaijan Republic2005-2013and, on 10 June 2009, it joined the newly-establishedInternational Renewable Energy Agency (IRENA).President Ilham Aliyev also signed a decree on the creation of aNational Renewable Energy Agencyon 16 July2009 (OSCE Office in Baku: Activity Report No. 09/09: 1-31 July 2009, p. 3).11OSCE web page: “OSCE meeting in Bratislava calls for strengthening co-operation on energy security”, Pressrelease, 6 July 2009, http://www.osce.org/item/38661.html98

Eastern Europe Expert’s Workshop on the Security of Energy InfrastructureDuring the above-mentioned July 2009 OSCE Conference on Energy Security in Bratislava, thefields of co-operation on these different parties of the energy security chain were identified. Inorder to stimulate a thorough analysis of the dialogue and co-operation on energy security, it wassuggested to develop this dialogue and co-operation on a regional basis, taking into account thespecific situations of the concerned OSCE participating States. Having hosted several OSCEevents demonstrating the Belarusian willingness to be an active partner on this field of regionalcooperation, Belarus hosted a similar event on 10-11 December entitled “Eastern EuropeExpert’s Workshop on the Security of Energy Infrastructures.” The conference focused onenergy efficiency and addressed, inter alia, such topics as:the security of delivery through the capacity of the distribution network to deliver on duetime and due quantities the energy required;the scope of possible disruptions considering their nature i.e., terrorist and criminalthreats, technical failure, or natural/manmade disaster;the current economic and financial crisis and its direct consequences on the capacity toafford energy investments on the whole added value chain, including transport anddistribution;the respective roles, in this domain, of state authorities and private companies;the storage capacity and the management of this capacity;the interoperability of the transport network (for primary and secondary energysources).According to the OSCE Secretary General’s response to the OSCE PA’s questionnaire, “aspecial expert meeting will be organized by the OSCE in 2010 with the aim of assessing OSCE’sfuture contribution to international security energy co-operation.”12OSCE PA Fall MeetingsOn 9-12 October in Athens the OSCE Parliamentary Assembly conducted its annual FallMeetings under the theme ofEnergy Security and Environmentwith almost 200 members from50 countries. Invited speakers included parliamentarians from OSCE participating States, OSCESecretary General Marc Perrin de Brichambaut, Co-ordinator of OSCE Economic andEnvironmental Activities Goran Svilanovic, Director of Contract Structuring and Pricing atGazprom Export Sergey Komlev and independent experts from Greece and Ukraine amongothers. In three focused sessions, Parliamentarians addressed: Regional Co-operation in EnergySecurity; Climate and Environmental Policy – the Road to Copenhagen; and Optimal Utilizationof Natural Resources for Human Security.III.National Initiatives / Best Practices

heated with natural geothermal water and around 10% uses green electricity. In the transportsector, which relies on fossil fuel, emphasis has been placed on increasing renewable andenvironmental friendly fuel as well as the use of green electricity in that sector. As Iceland is amember of the European Economic Area, the Ministry of Industry participates in the EEA-EFTAgroup on Energy. The Ministry also participate in Nordic and Baltic energy co-operation onenergy.Turkey has developed projects to secure the flow of gas and oil resources through various routes,notably the East-West Energy Corridor, which transports the Caucasian and Central Asianenergy resources to the Western markets. The second component of this corridor, the Baku-Tbilisi-Erzurum natural gas pipeline, was completed in 2007, while a Turkish-Greek GasInterconnector has become operational on November 2007. Turkey also supports the Nabucconatural gas pipeline project. The Baku-Tbilisi-Ceyhan pipeline became operational in 2006 andthe realization of the Samsun-Ceyhan bypass oil pipeline is currently under consideration.In 2009, Canada and the United States held their first Clean Energy Dialogue (CED) Roundtablemeeting, which seeks to co-ordinate clean energy research, technology, development anddeployment. In August 2009, Canada also attended the North American Leaders’ Summit, atwhich it discussed with Mexico and the United States the importance of a North Americanapproach to climate change. They agreed to collaborate on climate friendly and low-carbontechnologies, including building a smart grid in North America for more efficient and reliableelectricity inter-connections, as well as regional cooperation on carbon capture and storage. ATrilateral Working Plan is to be developed and would serve as the basis for a progress report tobe submitted at the North American Leaders Summit in 2010.At the European Union level, the Directive 2009/28/EC of the European Parliament and of theCouncil of 23 April 2009 establishes a common framework for the use of energy from renewablesources. Member States are also encouraged to set up joint project initiatives.In Hungary, the Renewable Energy Strategy for 2007-2020 targets an increase of renewableenergy production by 15 per cent by 2020. This strategy encourages the decentralized energyproduction, the cogeneration of heat and power and the establishment of small power stationsutilizing renewable sources locally. New investments in the field of biomass, wind, solar andgeothermal energy are also forecast.In Lithuania, the Draft Law on Renewable Energy Resources (No XIP-1749) has been submittedto the Seimas. It establishes a general system to encourage the use of renewable energyresources. The Ministry of Agriculture supports the biofuel crop production through the RuralDevelopment Programme 2007-2013, while the European Agricultural Fund for RuralDevelopment provides funding for the installation of biofuel, biogas, and small-scale wind powerplants, as well as hydro and geothermal power plants and solar panels. Other priorities are thepower interconnections with Sweden and Poland, the synchronous interconnection with theContinental Europe grid, the creation of a new nuclear power plant and the necessity to ensurealternative routes for gas supply.

In the Czech Republic, projects in the field of gas storage capacities were initiated in 2009. Threenew gas reservoirs will be constructed and two will be enlarged, while other possible locationswill be subjected to exploration and plans for further enlargement. There are also two projects ofbuilding new gas pipelines in progress to connect Czech/Polish and Czech/Germaninfrastructures.In Slovenia, a new support scheme for the production of electric energy from renewable energysources and co-production of heat and electric energy was adopted in 2009. Slovenia plans toprepare a new Energy Act by the end of 2010 to transpose the provisions of the new EUlegislative acts. Slovenia received 40 million euros from the European Economic Recovery Planto upgrade the Austrian border Vodice pipeline. In 2009, an Agreement on the Construction ofthe South Stream Pipeline was signed with the Russian Federation. Slovenia also supports theNabucco Pipeline Project and the construction of a LNG terminal in Croatia. Hungary andSlovenia have signed a Memorandum of Understanding to examine the possibility of aninterconnection of gas transmission systems. Slovenia has also acceded to the Central EasternEuropean Forum for Electricity Market Integration.Belgium, Denmark, France, Germany, Ireland, Luxembourg, Sweden, the Netherlands, and theUnited Kingdom signed on 7 December 2009 a Political declaration on the North Seas CountriesOffshore Grid Initiative, which aims at increasing and co-ordinating the offshore wind andinfrastructure developments in the North Seas.In Poland, the Council of Ministers adopted in November 2009 the Energy Policy until 2030,which plans to diversify the sources and directions of the supplies of natural gas, crude oil andelectricity, notably through nuclear power engineering. In April 2009, the Sejm passed an actthat will enable the construction of a liquid gas terminal atŚwinoujście.The development of thenational transmission system and the construction of the cross-border connections would alsopermit Poland to receive gas from Denmark, Germany and the Czech Republic. There is also aproject to build an oil pipeline connecting Odesa, Brody, Płock and Gdańsk and a project to erectan electricity grid interconnection between Poland and Lithuania.The United Kingdom supports the creation of the Southern Corridor, which would bring gasfrom Central Asia through Turkey to the European Union. The United Kingdom has alsosupported the European Union work to re-invigorate relations in the Mediterranean region with aview to encourage investment in production of gas and renewable electricity and increase energytrade between the two regions. The UK works closely with the International Energy Agency, theInternational Renewable Energy Agency and theRenewable Energy and Energy EfficiencyPartnershipto promote low-carbon technologies, use of renewables and increased energyefficiency, with a view to diversifying energy sources.Italy aims for reducing its energy dependence through the diversification of sources and supplies,the improvement of gas pipeline capacity and storage within the EU States, the development ofnew connections with non-EU states and the settlement of new LNG terminals. The Governmentis also localizing nuclear power plants and radioactive waste storage systems. In February 2009,Italy and France signed an Agreement on nuclear energy. With regard to the development of gaspipeline system and further improvement of gas pipeline capacity and storage, ongoing projects10

are the Gas pipeline Algeria-Sardinia-Italy (GALSI), the Greenstream (Libyan Gas TransmissionSystem – LGTS), the Interconnection Turkey – Greece – Italy (ITGI), the South Stream, theTrans-Austria gas pipeline (TAG), the Trans Adriatic Pipeline, and the Tunisia–Algeria–Italy gaspipeline. LNG Terminals are expected to be settled in Livorno, Brindisi, Trieste and Priolo(Siracusa).Monaco has developed several renewable energy production structures that do not producegreenhouse emissions. Heat pumps produce 17 per cent of the energy consumed in thePrincipality, while solar thermal collectors are also built. Other renewable sources of energy arecurrently under study such as solar energy and geothermal energy.In San Marino, a Decree on incentives encouraging the purchase and installation of systemsproducing energy from renewable sources and a Decree on the transfer of electrical energyproduced by systems functioning by using renewable energies were adopted in June 2009.In Switzerland, the Federal Council decided on 21 February 2007 the reorientation of the Swissenergy policy to close energy gaps and to address climate change. The strategy is made up offour pillars 1) increased efforts in energy efficiency, 2) develop the potential of renewableenergies 3) extension of infrastructure including the construction of large power stations, and 4)strengthening international co-operation in the energy sector with the main objectives of supplysecurity, economic efficiency and environmental compatibility.The former Yugoslav Republic of Macedonia is currently developing infrastructure and energyprojects. This includes the installation, modernization or rehabilitation of small and largehydropower plants, a feasibility study on further gas pipelines development, and energyinterconnections with neighboring countries. The construction of a 400 kV interconnection linewith Serbia is on the agenda, while another interconnection with Albania and the upgrade of anexisting line from 200 kV to 400 kV with Kosovo are under consideration. The former YugoslavRepublic of Macedonia has also signed in March 2009 the Memorandum for understanding onthe implementation of common procedures for congestion management methods andestablishment of a coordinated auction office among transmission/independent system operatorsin South East Europe.

At the request of UN Secretary General Ban Ki-moon, who asked the OSCE to contribute to acomprehensive analysis about possible security implications of climate change, the GreekChairmanship, the Romanian Government and the Office of the Co-ordinator of OSCE EEAjointly organized the Chairmanship Conference on Security Implications of Climate Change inthe OSCE region.13The Conference, which took place on 5-6 October 2009 in Bucharest, gathered experts andrepresentatives of OSCE participating States, international organizations and institutions in orderto discuss ways that climate change may impact security in the OSCE area. The issue of energysecurity and climate change was discussed, inter alia, with special attention given to the UNreport on the possible security implications of climate change, which was presented at the 64thsession of the General Assembly in September 2009.14OSCE PA EngagementSince the Annual Session, the Assembly has continued to serve as an important internationalforum when it comes to addressing climate change, with substantive discussion at the FallMeetings in Athens on 9-12 October, devoted to the subject.During the second session of the Fall Meetings, Vice-Presidents Benjamin Cardin (UnitedStates) and Pia Christmas-Moeller (Denmark) called for decisive action to be taken at the COP15, with Ms. Christmas-Moeller pointing out that elected parliamentarians have a specialresponsibility. “We are all elected to take leadership on behalf of our peoples/nations,” she said.Senator Cardin in his speech referred to a World Bank study which “estimates it will cost up to100 billion U.S. dollars for developing countries to adapt to a two-degree warmer climatebetween now and 2050.”15Mr. Cardin highlighted the security-related effects of climate change, particularly underliningthat more frequent drought leading to crop failures can cause food scarcity and conflict in placeswhere people already struggle to cope. He also touched upon the connection between investingin green technologies and economic recovery. During the discussion period, several Memberspointed out the burden of distribution between developed countries and the developing world.Chairmanship’s conference “Security Implications of Climate Change in the OSCE region” (Bucharest, 5-6October 2009), background note, CIO.GAL/122/09, 15 September 2009,http://www.osce.org/documents/eea/2009/09/39572_en.pdf14Ibid.15Statement by Senator Benjamin Cardin at the OSCE PA Fall Meetings Athens, Greece, 9 October 2009,http://www.oscepa.org/images/stories/documents/activities/3.Fall%20Meetings/2009-Athens/SpeechCardinAthens091009.pdf13

While the developed world must take the lead in addressing climate change, Members pointedout, developing countries should seek to develop environmentally friendly technologies.On the eve of the COP 15 summit in December, President Joao Soares called on members of theOSCE Parliamentary Assembly to take decisive action in reducing carbon emissions. “We allhave to use our influence on our respective Parliaments and show our Governments that we arecommitted to this issue,” he said in a statement posted on the Assembly’s website. “Together, the56 participating States of the OSCE have considerable influence that can positively impact theCopenhagen conference. We have among us some of the main fossil fuel producers andconsumers.”16III. COP 15The 2009 United Nations Climate Change Conference, held in Copenhagen from 7 to 18December 2009, included the 15thConference of the Parties (COP 15) to the United NationsFramework Convention on Climate Change and the fifth Meeting of the Parties (COP/MOP 5) tothe Kyoto Protocol.17The primary goal was to establish a global climate agreement for theperiod beginning in 2012, which is when the first commitment period under the Kyoto Protocolis due to expire. During the closing session of the Conference, a non-binding agreement dubbedthe Copenhagen Accord drawn up by a limited group of countries was “taken note” of by theConference of the Parties.18IV. National Initiatives / Best PracticesIceland is party to the Kyoto Protocol and expects its emissions to be within its limits. TheGovernment adopted a national climate change strategy in 2007, which outlines a number ofactions to be taken in seven key sectors. In 2009, an expert group commissioned by the Ministryfor the Environment published a study on the mitigation potential and cost of different actions tomitigate climate change. On the basis of this study, a new body was established to produce apractical action plan to increase mitigation activities in the post-2012 climate regime. A draftaction plan was published in December 2009, outlining eight key actions in the fields oftransport, fisheries, forestry and revegetation, as well as economy-wide measures. Icelandintroduced a carbon tax in 2009 and is party to the EU Emission Trading Scheme. A finalizedclimate action plan is due in May 2010.

In the Czech Republic, the 2004 National Programme to Abate the Impacts of Climate Changepursues the impacts of climate change on the different sectors and defines a national strategyleading towards a mitigation of the negative impacts. The Programme will be updated during thesecond half of 2010 by a new Climate Protection Policy, which will include the currentprotection strategy and proposed measures for greenhouse gas emission reduction.The Estonian Parliament adopted an energy sector development plan and an electricity sectordevelopment plan in 2009. Along with the energy conservation programme and the housingdevelopment plan adopted in 2007, they have created a comprehensive plan for the continueddecrease of greenhouse gases in Estonia.Italy approved the decision on the assignment of emission quotes from 2008 to 2012. TheFinance Act 2007 established a 600 million EUR revolving fund to finance measures to reduceemissions of greenhouse gases over three years, while the Finance Act 2008 provided measuresaimed at monitoring the implementation of the Kyoto Protocol and certifying the effective cut ofgas emissions in building.Hungary has adopted a National Climate Change Strategy for the period of 2008-2025 anddeveloped Climate Change Programmes, which focus on the reduction of domestic greenhousegas emissions, the adaptation to the impacts of climate change and awareness raising. Hungary isalso working on the implementation of several European regulations and prepares nationalprogrammes (e.g. National Environmental Protection Programme), strategies (e.g. RenewableEnergy Strategy) and action plans (e.g. Energy Efficiency Action Plan).Slovenia ratified the Kyoto Protocol in 2002 and adopted the Operational Programme for theReduction of Greenhouse Gas Emissions by 2012 in July 2003, which was updated in 2009. Ithas introduced measures for more efficient use of energy, promotion of renewable energysources including biofuels, promotion of co-production of heat and electric energy, thermalinsulation of construction materials and measures for the increase of the energy characteristics ofbuildings.France has adopted in July 2009 the Law on the “Grenelle de l’environment,” which lists severalmeasures in various sectors to protect environment, fight against climate change and securesustainable development. A programme of thermal building renovation is planned to reduce theenergy consumption by 30 per cent by 2020. In the transport sector, the objective is to reduce thegreenhouse gas emissions by 20 per cent by 2020 and to cut down the share of hydrocarbons bypromoting rail freight and collective transport. At least 23 per cent of energy should berenewable. Actions to maintain and enhance biodiversity will be taken and the use of phosphateswill be prohibited as of 2012.In Sweden a new climate policy decision19was adopted by the Riksdag in June 2009. Energyand carbon dioxide taxes on fossil fuels have contributed to reduce emissions in the residentialand service sectors and in the district heating sector, as well as to curb the growth of emissions inthe transport sector. The production of more energy-efficient vehicles and the introduction ofbiofuels have also been promoted. Sweden has granted appropriations for international climate19

change interventions in the Clean Development Mechanism and the Joint Implementation, and istaking part in five multinational funds.20Lithuanian climate policy includes the development of nuclear energy (construction of a newnuclear power plant), the promotion of renewable energy sources, the increase of energygeneration, transportation, and efficiency, as well as the reduction of greenhouse gases. AProgramme for the Development of Recycling of Secondary Raw Materials is also underdevelopment.In November 2009 Poland adopted the Energy Policy until 2030, under which priority is given toincreased energy effectiveness, improved security of fuel and energy supplies, diversification ofthe electricity generation structure through nuclear power engineering, wider use of renewableenergy sources, development of competitive fuel and energy markets and lessening theenvironmental effects of the power industry. The Polish Government also supports theestablishment of the so-called Green Fund, a global fund that would fight climate change.In Norway, in addition to domestic measures to reduce greenhouse gas emissions, such asincentives to increase the use of electric cars, the Parliament has authorized the Government totrade in the international market for carbon credits through the Clean Development Mechanismand Joint Implementation. Norway pledged up to 820 million EUR before 2015 to the Amazonfund, which aims at reducing deforestation in the Amazon region, and funding is also provided toUNs efforts for Reduced Emissions for Deforestation and Degradation.The United Kingdom published a Low Carbon Transition Plan in July 2009. It also providesassistance to developing countries by funding and sending experts, for instance in South Africaand South Arabia.Belgium intends to introduce a Federal Climate Plan, which includes a large range of policiesand measures in a long-term strategy. Among the measures planned are the development ofoffshore wind turbines, the use of biofuels, as well as the gradual introduction of a carbon pricesignal in sectors not covered by the European Union Emission Trading System.In Germany, the Bundestag discussed the topic of combating climate change on 2 December2009. The discussion included consideration of the law amending the Federal Pollution ControlAct. This initiative aims to reduce the climate-damaging CO2emissions by setting a minimumefficiency grades for coal and gas power plants with an aim to improve the energy efficiency ofthe new permits and existing sites. The consultations on the law have not been finished yet. InLuxembourg, a National Plan for Sustainable Development is currently being developed by theMinistry for Sustainable Development and Infrastructure.Canada’s commitment is to ensure that 90 per cent of electricity will be provided by non-carbonemitting sources by 2020. Since September 2009, the government has collaborated on Canada’senergy future through roundtables with key stakeholders. A carbon capture and storage project isunder development, while funding will be provided to the Biofuels program. Canada hasThe Testing Ground Facility, the Prototype Carbon Fund, the Asia Pacific Carbon Fund, the Future Carbon Fundand the Multilateral Carbon Credit Fund.20

collaborated with the United States under the Clean Energy Dialogue and has participated in theGlobal Partnership launched by Leaders of the Major Economies Forum and the Global ResearchAlliance on Agricultural Greenhouse Gases.Turkey became party to the UN Framework Convention on Climate Change in 2004 and to theKyoto Protocol in 2009. Certain measures have been taken under the renewable energy andenergy efficiency legislations, while a National Climate Strategy has also been prepared and aClimate Change Department established at the Ministry of Environment and Forestry. Turkeyencourages increased use of hydro, wind, solar and geothermal powers and increases its sinkareas by forestation actions and deforestation controls. Turkey has also been involved in theVoluntary Carbon Markets since 2007 and has participated in more than 50 voluntary offsetprojects in accordance with the Gold Standard.San Marino ratified the Kyoto Protocol to the United Nations Framework Convention to ClimateChange on 28 January 2010, as well as the Vienna Convention for the protection of the OzoneLayer and the Montreal Protocol on Substances that Deplete the Ozone Layer in March 2009. InAndorra, the Convention for the Protection of the Ozone Layer came into effect on 26 April2009, while the UN Convention on Climate Change is expected to be ratified by the end of theyear. The Government has also approved a strategy for monitoring, communication and airprotection for the period 2006-2010, and a network, which enables to monitor the emissionlevels, to follow the evolution over time and to propose necessary measures to solve theproblems caused by air pollution has been established.Liechtenstein ratified the Climate Convention on 22 June 1994 and the Kyoto Protocol on 3December 2004. The national climate policy stems from the Emissions Trading Act (LGBl. 2008Nr. 10) and the CO2 Act (LGBl. 2010 No. 19), which introduced a levy on the consumption offossil fuel and is part of “The Bilateral Agreement between the Principality of Liechtenstein andthe Swiss Confederation on Environmental Levies within the Principality of Liechtenstein.”Monaco has implemented an Energy-Climate Plan to reduce greenhouse gas emissions andenergy consumption as well as to develop renewable energy sources. The use of solar energy isencouraged, while an energy auditing ensures that new public buildings are constructedaccording to the High Quality Environmental Standard. Monaco has also set up environmentallyfriendly policies, as the use of biodiesel by the Monaco Bus Company or incentive tariffs forpublic transportation and subsidies for people buying electric vehicles. Ten percent of vehiclesused by public administration are electric. A sustainable management system for urban waste hasalso been implemented.

unco-operative jurisdiction and recommends that participating States establish measures aimed atobtaining complete transparency in un-co-operative jurisdictions and the eventual abolition oftax havens.II. National Initiatives / Best PracticesBelgium has put in place a framework aimed at imposing the OECD standard for the bankinginformation exchange. This provides the possibility to take measures against the use of taxhavens by person liable for income tax in Belgium. It also introduces the requirement to reporttransactions with non-cooperative countries and reverses the burden of proof regarding thedeductibility of payments made to companies located in these countries. A special department tofight against the improper use of tax havens will be created to co-ordinate the actions of theadministration.Andorra has signed 17 agreements21on exchange of information on tax matters since September2009. The Government has also prepared a new fiscal framework currently submitted to theParliament’s consideration. Its approval will allow the opening of negotiations on non-doubletaxation agreements. The Norwegian Parliament ratified in 2009 several bilateral agreementsregarding tax havens22aimed at the exchange of tax related information and increasedtransparency in financial transactions.In Canada, the 2009 Budget Implementation Act (C-10) amended a number of laws governingfederal financial institutions. It provides the Minister of Finance with increased authority in orderto promote financial stability and maintain efficient and well-functioning markets. In its 2010Budget and the accompanying Budget Implementation Act (C-9), the Canadian governmentproposes to strengthen the financial sector by creating a single national securities regulator. Itwill also confer on the Governor in Council the power to make regulations that limit or prohibitcertain financial transactions. At the international level, Canada signed a Tax InformationExchange Agreement with the Netherlands concerning Netherlands Antilles in August 2009 andis negotiating an additional 15 TIEAs.23In spring 2010 the Estonian Ministry of Finance sent out for approval a Bill, which transposesthe amendments to the EU banking directive into the Estonian legislation. In addition, theFinancial Supervision Authority, the Police and Border Board and the Office of the ProsecutorGeneral updated in September 2009 a trilateral agreement on money laundering, off-shorebanking and tax havens. This agreement focused on the strengthened oversight and the regulation

of the financial system at national and international levels, to ensure greater transparency andaccountability.The French Government presented in December 2009 a draft law on banking and financeregulations, which will be under the consideration of the parliament in 2010. The bill introducesthe colleges of supervisors and a control of the rating agencies entrusted to the Financial MarketAuthority. The latter holds new emergency powers and can take indisputable measures in timesof crisis. The establishment of a Council on financial regulation and systemic risk, similar to theinternational Financial Stability Board and the European Systemic Risk Council is also planned.The draft supplementary budget for 2009 proposes the taxation of the amount paid and thedividends received from tax havens, a limit to the corporate tax deductions, and an obligation forcompanies to document their transfer prices. It provides France with its own list of tax havens.French companies established in the listed countries will be more taxed. The text also introducesnew rules on professional secrecy to fight against the underground economy. Tax officials willbe allowed to spontaneously communicate information to the police department and a judicialfiscal inquiry procedure, which provides the tax administration with police powers, isestablished.In Italy, the Finance Act 2008 established how to identify States that have a fiscal regimeconformed to proper standards of legality and transparency. The access to regimes that canfacilitate the disparity of treatment is submitted to strict verification.In 2009, the former Yugoslav Republic of Macedonia worked on the development of theregulation of the banking sector with the implementation of the Law on Banks and the bylaws inthe field of banking to rise, among others, the level of transparency and the prevention againstmoney laundering and financial terrorism. In order to develop further international co-operation,the former Yugoslav Republic of Macedonia is also taking steps to enlarge the network ofagreements for avoiding double taxation and protection from fiscal evasion.The German Bundestag adopted in January 2010 the implementation Law to the Regulation (EC)No 1060/2009 of the European Parliament and of the Council of 16 September 2009 regardingthe rating agencies. The Bundestag also dealt with regulations on stabilization of the financialstate of social security system, the law on easing the sanitation of an enterprise as well as variousbills on system risks of the financial market and better supervisory agencies.The Liechtenstein Declaration of 12 March 2009 recognizes the OECD tax co-operation standardas binding worldwide. The Parliament has adopted the Tax Information Exchange Agreementconcluded with the United States in December 2008. The Government has also signed TIEAs ordouble taxation agreements with Germany, the United Kingdom and several other States.The Seimas of the Republic of Lithuania adopted on 10 December 2009 the Law on AmendingArticles 2 and 4 and Supplementing the Annex of the Law on Prevention of Money Launderingand Terrorist Financing. Under this Law, the Bank of Lithuania is obliged to approve instructionsfor credit and financial institutions aimed at the prevention of money laundering and/or terrorist

financing, to supervise the activities of credit and financial institutions related to the preventionof money laundering and/or terrorist financing, and to consult credit and financial institutions.Regarding tax havens, taxation laws24provide the mechanisms aimed at limiting the tax-payers’opportunities for making use of tax-exempt companies registered or people residing in low orzero tax jurisdictions. A List of Target Territories, which includes states and zonesinternationally considered as tax havens, was approved by the Order No 344 of 22 December2001 of the Minister of Finance.Luxembourg has approved a series of Conventions on the avoidance of double taxation and theprevention of fiscal evasion with respect to taxes on income and on capital gains. The Law of 29May 2009 amending the Law of 5 April 1993 on financial sector improves the deposit guaranteesystems. A bill amending the Law of 9 May 2006 on market abuses and transposing theDirective 2003/6/CE of the European Parliament and of the Council of 28 January 2003 oninsider dealing and market manipulation has been submitted to the Parliament.Monaco was withdrawn from the OECD list of "noncooperative" countries in terms of provisionof tax information on 24 September 2009. Fourteen agreements of exchange of information havebeen signed by the Principality and its Finance Intelligence Unit (FIU) has concludedinformation exchange agreements with 29 foreign FIUs.In August 2009, Monaco passed Act 1.362 on the fight against money laundering, terroristfinancing and corruption and promulgated Sovereign Order 2.318 setting the conditions forapplication of Act 1.362. Those legislative measures enhanced Monaco's legal and regulatoryframework adopting the various recommendations set out in the Action Plan prepared by theCouncil of Europe's MONEYVAL Committee.The Polish Parliament has passed laws aimed at preventing the spread of negative effects of theglobal financial crisis over the Polish economy and stabilizing the operating conditions forfinancial market participants. The Finance Minister makes a list of the countries and territoriesthat engage in unfair tax competition, primarily, on the basis of the relevant OECD findings. Toprevent transactions with these countries, special obligations on taxpayers have been imposed,notably the presentation of documents regarding certain transactions.San Marino has adapted its legislation to international conventions and standards to prevent andavoid money laundering and funding of terrorism, by Law n�73 of 19 June 2009. San Marino hasalso signed 23 Conventions on the Avoidance of Double Taxation and the Prevention of FiscalEvasion with Respect to Taxes on Income and Tax Information Exchange Agreements.Slovenia will implement the EU Capital Requirement Directives II with the Act Amending theBanking Act in 2010. There are currently three lists categorizing countries according to theircommitment to respect standards on transparency and exchange of information for tax purposes:the List of Uncooperative Countries, the List of Countries which have committed to standards oftransparency and exchange information for tax purposes but have not implemented thesestandards to a sufficient extent, and the List of Countries which have committed to standards of24

transparency and exchange information for tax purposes and have adequately implemented thesestandards into their domestic legal order.In Turkey, a provision in the domestic tax law authorizes the Government to identify a list ofcountries which lack taxation capacity and exchange of information instruments. Less favorablerates and measures25can be applied to them. Turkey has also been negotiating with thesecountries to conclude Tax Information Exchange Agreements. In the Czech Republic, alegislative motion which strived to toughen up the conditions for joint stock companies was onthe agenda, but has not been passed yet and is unlikely to be approved.Switzerland emphasizes that the OECD is responsible for the treatment of this subject rather thanthe OSCE. It must be ensured, Switzerland emphasizes, that there is no second organization tofurther pressure countries regarding tax havens. The Swiss delegation in Vienna will follow thefurther discussion within the OSCE and confront when needed unwelcome proposals from otherparticipating States.

The Vilnius Declaration’s Resolution on Mediterranean Free Trade calls for the creation of a freetrade zone that is meant to substantively contribute to development and security effortsthroughout the Mediterranean region. The Resolution also reiterates various calls in the 2008Astana Declaration that deal specifically with the rapid reduction of trade barriers between theOSCE and the Mediterranean region, as well as facilitation of transition to a knowledge-basedeconomy for Mediterranean countries.The Resolution on the European Union Seal Products Ban calls upon the governments of theOSCE participating States to meet their full commitments with respect to internationalobligations regarding trade liberalization and calls for lifting barriers to trade, specifically theEuropean Union’s ban on seal products. While hailing the work of the international communityin establishing best practices in sealing, the resolution highlights the right of indigenous peoplesto have access to opportunities that provide for economic advancement.II.International Developments

deals with trade in seal products within the European Union.26The regulation imposes a neartotal ban on seal products that do not originate from within the EU, and at the same time restrictsthe market for seal products to those that result from “traditional hunts.”27This regulationinhibits access to the European Market to such a degree that some OSCE participating Stateshave sought redress within the framework of the World Trade Organization (WTO).On 4 November 2009 Canada filed a formal request for consultations with the WTO based on thegrounds that the EC Regulation is inconsistent with the European Community’s obligationsunder the 1994 General Agreement on Tariffs and Trade (GATT).28On 18 November 2009Iceland formally requested to join the consultations29as trade issues pertaining to seal andmarine products are of particular relevance to Iceland’s economy. A separate request forconsultations was filed by Norway on 10 November 200930with requests to join consultationsfrom Iceland and Canada on 18 November 200931and 24 November 200932respectively.Euromed Trade Ministerial ConferenceAt the eighth Euromed Trade Ministerial Conference, held in Brussels on 9 December 2009,ministers discussed the global economic situation in relation to challenges posed to all countriesin the Euro-Mediterranean region. Ministers expressed their support to the commitment taken atthe G-20 summits to avoid economic nationalist measures and stressed the importance ofremaining committed to a common regulatory framework based on transparency across the Euro-Mediterranean region in order to encourage trade and economic growth.Ministers also expressed their determination to conclude negotiations on the Doha DevelopmentAgenda, affirming their commitment to reach an ambitious, comprehensive and balancedagreement. In this context, Ministers emphasized the importance of Southern Mediterraneanpartners acceding to the WTO. Further, Euromed Ministers discussed the establishment of aEuromed Free Trade Area at the end of 2010. Welcoming the progress made in theimplementation of Euro-Mediterranean Association Agreements between the EU and Southern

“Regulation (EC) No 1007/2009 of the European Parliament,” Official Journal of the European Union, 31 October2009. Accessed Online:1 June 2010. http://ec.europa.eu/food/animal/welfare/trade_seals_products.pdf27“MEPs adopt strict conditions for the placing on the market of seal products in the European Union,” EuropeanParliament: Press Release, 5 May 2009. Accessed Online: 1 June 2010.http://www.europarl.europa.eu/sides/getDoc.do?language=EN&type=IM-PRESS&reference=20090504IPR5495228“European Communities- Measures Prohibiting the Importation and Marketing of Seal Products: Request forConsultations by Canada,” World Trade Organization: WT/DS400/1, 4 November 2009.29“European Communities- Measures Prohibiting the Importation and Marketing of Seal Products: Request to JoinConsultations Communication from Iceland,” World Trade Organization: WT/DS400/2, 18 November 2009.30“European Communities- Measures Prohibiting the Importation and Marketing of Seal Products: Request forConsultations by Norway,” World Trade Organization: WT/DS401/1, 10 November 2009.31“European Communities- Measures Prohibiting the Importation and Marketing of Seal Products: Request to JoinConsultations Communication from Iceland,” World Trade Organization: WT/DS401/2, 18 November 2009.32“European Communities- Measures Prohibiting the Importation and Marketing of Seal Products: Request to JoinConsultations Communication from Canada,” World Trade Organization: WT/DS401/3, 24 November 2009.

In their responses, participating States of the OSCE highlighted the limited leeway in decidinghow a country can do by its own and the necessity to work together in the international structuresand fora to encourage free trade and avoid protectionism.The United Kingdom organized in 2009 the G20 Summit in London. One of the major issues ofthis Summit was to discourage countries from raising barriers or imposing new barriers in theinvestment or trade of goods and services.At the European Union level, the EU institutions and the 27 Member States are both involved inthe strengthening of the internal market and the conclusions of the negotiations on bilateral freetrade agreements between EU and other areas and countries. Sweden, which held the presidencyof the EU in the second half of 2009, worked to promote open markets with free trade and reduceprotectionism. Negotiations on free trade agreements between the EU and South Koreasuccessfully ended, while agreements with India, Ukraine, Central America, the Gulf States andthe Andean community were placed on the agenda.In 2009, Canada ratified free trade agreements with Peru and the European Free TradeAssociation. It submitted to Parliament for ratification free trade agreements with Colombia34and Jordan. The latter was signed on 28 June 2009. Negotiations for a free trade agreement withPanama were concluded in August 2009 while negotiations for a comprehensive economic andtrade agreement with the European Union were launched in May 2009. Canada also launchedexploratory discussions towards possible free trade agreements with India, Morocco andUkraine. Moreover, a twelfth round of negotiations on a free trade agreement between Canadaand the Central American 4 (El Salvador, Guatemala, Honduras and Nicaragua) took place inOttawa in March 2010.In its 2010 Budget, the Canadian government announced that it would unilaterally eliminate allremaining tariffs on manufacturing inputs and machinery and equipment, making Canada atariff-free zone for manufacturers.Slovenia noted the interconnectedness of the global economy in their national response andpointed out the importance of adhering to international regulations regarding trade. As a result ofhonouring international commitments only seal products harvested in accordance withinternational regulations for best practices may be placed on the market in Slovenia.

OSCE Centre in BishkekAs part of a project on building awareness of water conflict management in transboundaryregions, the OSCE Centre in Bishkek, the Rural Development Fund and the Public FoundationCAMP Ala Too organized a training session designed to prepare mediators to be able to work invillages in order to raise awareness of water-related conflicts and methods of resolution.35Thetraining session took place in Bishkek from 24 to 28 August 2009. The Centre and the Women’sPolitical Discussion Club, an informal group of female representatives of political parties, NGOsand mass media, organized a roundtable discussion, on 30 September, to share their views onwater and energy problems in Kyrgyzstan. Recommendations were elaborated and forwarded torelevant authorities.On 27 November, the Centre in Bishkek and the public foundation Bilek organized a roundtableon cross-border water issues in Jany-Jer (Batken province).36The results of an OSCE-supportedproject on addressing cross-border water difficulties in the Batken province and the sustainabilitystrategy of the Aikol water users’ association and future action plans were discussed. The eventwas attended by local governments, water users’ associations, state water stations and farmersfrom Kyrgyzstan and Tajikistan.Office of the Co-ordinator of the OSCE Economic and Environmental Activities / OSCE Centrein Bishkek / Chu and Talas CommissionOn 6 October 2009, OSCE officials provided support and guidance during a meeting of the Chuand Talas Commission that gathered government officials and experts from Kazakhstan andKyrgyzstan as well as representatives from other international organizations and focused onTraining for mediators in water conflict management, OSCE Centre in Bishkek Event,http://www.osce.org/item/37965.html36Roundtable on cross-border water issues, OSCE Centre in Bishkek Event, 27 November 2009,http://www.osce.org/item/41191.html35

progress under an agreement to share the water from trans-boundary rivers.37Participants of themeeting discussed what had been done since the last meeting, held in Bishkek in February 2009,forthcoming activities and a possible update to the 2000 bilateral agreement on water sharing.OSCE Office in TajikistanOn 17 December 2009, the OSCE Office in Tajikistan handed over to the Ministry of LandReclamation and Water Resources a special software package developed for the establishment ofthe electronic Water Code.38This OSCE-supported project aims to assist Tajikistan inestablishing a standardized system of water data collection, analysis and transfer to better addresswater resource management challenges. It streamlines information flows on water managementbetween the Ministry's units and facilitates the negotiations on the distribution of water andenergy resources between suppliers and consumers.OSCE Centre in AstanaKazakhstan’s work in the field of water resource management has included a two-day workshopattended by regional authorities, as well as water consumer groups, which was aimed at raisingawareness on the topic of Integrated Water Resource Management. The workshop, held inTaldykorgan, Kazakhstan, took place on 19-20 November 2009.39This event was organized bythe OSCE Centre in Astana in conjunction with the Committee on Water Resources and theCentre for Sustainable Development. The workshop brought 35 representatives of localadministration and civil society together. Workshop participants had the opportunity to discussbest practices and possible ways to introduce the concept of Integrated Water ResourceManagement in their respective home regions, and also ways to stimulate dialogue among thoseinterested in the field.40On 20 November 2009 the OSCE Centre in Astana signed a Memorandum of Understandingwith the International Fund for Saving the Aral Sea (IFAS) Executive Directorate in the Republicof Kazakhstan. IFAS is an international organization that works to promote sustainabledevelopment in the Aral Sea region. The Directorate is a national branch within Kazakhstan thatis working to implement Aral Sea Basin projects with a focus that includes water resourcemanagement.41Medet Ospanov, Director of the IFAS Executive Directorate in the Republic of Kazakhstan hasbeen quoted as saying, “This Memorandum is opening the way to joint co-operation in the areaof integrated water resources management, environmental recovery in the basin and preparation37

for the Aral Sea Basin Programme.”42The intent of this partnership is for both the OSCE and theIFAS to take targeted measures designed to improve social and economic conditions of the AralSea states through resource management.43The OSCE Centre in Astana and the Kazakh branch of the IFAS co-organized a two-dayroundtable discussion on environmental security threats to the Aral Sea basin in Kyzylorda on 17May 2010.44More than 70 representatives from embassies in Kazakhstan, international organizations, localand national government authorities and non-governmental organizations discussed how todevelop existing and proposed national and international initiatives to address water andenvironmental security challenges in the Kazakhstani part of the Aral Sea and Syrdariya watersystem basin. International and local experts presented findings from projects in the area anddiscuss efforts to stabilize the environmental situation, protect the local population from thenegative effects of depletion and pollution, and improve the socio-economic condition of thelatter.The OSCE Centre and IFAS Kazakhstan also presented a proposed OSCE extra-budgetaryproject to implement the integrated water resources management concept in Kazakhstan's AralSea basin.OSCE Project Co-ordinator in Ukraine“Dniestr III Project”As noted by OSCE Secretary General Marc Perrin de Brichambaut in his response to the PA’squestionnaire, the OSCE Project Co-ordinator in Ukraine has continued to help implement anENVSEC project aimed at the improvement of transboundary co-operation and sustainablemanagement in the Dniestr River basin. A number of public awareness campaigns were alsoorganized throughout the entire Dniester River basin.45“Black Sea Monitoring System”In early November 2009 implementation of the Black Sea Monitoring System began. Accordingto the Secretary General the objective of this project is “to minimize potential environmentaldamage in the Black Sea basin through a more informed decision making process.”46As aprimary step, a working meeting with the Ukrainian Ministry of the Environment was conductedto update the project implementation action plan.

III. Other International InitiativesAt theEuropean Unionlevel, measures are taken by the Member States to implement the waterpolicy of the European Union, and particularly the provisions of the Water FrameworkDirective.47This directive establishes a legal framework to protect and restore clean water acrossEurope and ensure its long-term sustainable use. Under Article 4(1) of the directive, MemberStates should aim to achieve good status in all bodies of surface water and groundwater by 2015.World Water DayIn a Declaration by the High Representative of the European Union for Foreign Affairs andSecurity Policy, Catherine Ashton, to commemorate the World Water Day on 22 March 2010,the European Union reaffirms that all States bear human rights obligations regarding access tosafe drinking water, which must be available, physically accessible, affordable and acceptable.48The EU also recognizes that the human rights obligations regarding access to safe drinking waterand to sanitation are closely related with individual human rights, as the rights to housing, foodand health.International Decade for Action “Water for Life,” 2005-2015A High Level International Conference on the Mid-term Comprehensive Review of theImplementation of the International Decade for Action “Water for Life," 2005-2015 wasorganized from 8 to10 June 2010 in Dushanbe, Tajikistan.49The Conference was mainly aimedat making a mid-term comprehensive review of the implementation of the International Decade“Water for Life” 2005-2015, as well as an appraisal of the progress achieved in theimplementation of internationally agreed water-related goals, and prospects for the fulfillment ofinternational commitments on water and water related issues by 2015. The Conference providedan opportunity to discuss and develop new measures to accelerate efforts toward timely and fullyachievement of the goals.IV.National Initiatives / Best Practices

This report reviews the quality and the quantity of the surface water and groundwater and thelegislative, economic, research and integration activities on the issue.In Estonia, the parliament is currently discussing the Bill on Amendments to the Water Act andthe Chemicals Act. One of the major amendments expected is the so-called principle ofapplication of the strictest environmental requirement: in case several environmentalrequirements or responsibilities are applicable simultaneously, the strictest of these must beapplied or achieved. Catchment area based work plans for improving the water system will becompiled in the future, and a committee will be formed to organize activities in the water sector.The Bill also changes the regulation for building bore wells.More than 286,000 people will soon get quality drinking water from their taps after theEnvironmental Investment Centre has decided to allocate 415 million EUR. The Ministry ofRegions also supported 786 projects in 2009 aimed at constructing bore wells, drinking waterpipelines and pumps or water purification stations.In Poland, the Law on Universal Water Supply and on Collective Liquid Waste disposal aims atensuring the continuity of supply, a satisfactory quality of water for human consumption, and adependable sewage disposal and treatment. The Ministry of Environment has prepared a draftNational Strategy for Water Management 2030, of which purpose is to satisfy the population’sneeds for drinking water and sanitation, and to reduce the water consumption by maintainingwaters and related ecosystems in good condition and leveling regional disproportions in access togood-quality water. The draft is currently being analyzed. However, several water qualityimprovement projects have already been launched.In Luxembourg, a hydrographic district management plan is being developed by the Ministry ofInterior. The German Bundestag announced in March 2009 the “first regulation amending theRegulation on general conditions of the water supply.” In addition, it has submitted writtenquestions and brief requests/inquiries to the Federal Government regarding the content ofBisphenol-A (BPA) in drinking water as well as the state of implementation of the EuropeanWater Framework Directive, including management plans, action plans and the work of riverbasin communities.In Romania, investments are mainly focused on the upgrade and expansion of water and sewagenetworks, the construction and upgrade of drinking water and wastewater treatment plants, aswell as an improved quality of public services and acceptable tariffs.In Italy, a fund aimed at improving the process of making water potable, microfiltration andsweetening for tap water has been established. Funding is provided by taxing each bottle sold.Slovenia presides over the International Commission for the Protection of the Danube River in2010. At the ministerial meeting on 16 February, a plan for the environmental protection of theDanube river-basin was adopted.Hungary has developed a river basin management plan, which covers the entire territory of thecountry, including the Danube (34,730 km�), Tisza (46,380 km�), Drava (6,145 km�) and Balaton(5,775 km�) sub-basins. This plan includes measures that facilitate the efficient and sustainable27

use of waters, such as water source protection, national wastewater programme and protection ofwaters against nitrate contamination of agricultural origin. A Drinking Water QualityImprovement Programme, which affects about 2.3 million people, is also expected to becompleted in 2012-2013, while a National Waste Water Programme is currently being preparedfor the implementation of wastewater collection and treatment.The Canadian Government’s Action Plan for Clean Water includes a commitment of 75.6million EUR to restore Lake Winnipeg, Lake Simcoe and several areas of concern in the GreatLakes. Further commitments to protect water resources include the funding and the accelerationof First Nations’ infrastructure projects, the regulation of specific industries like metal mines andpulp and paper to reduce the toxicity of their effluents, and a financial support to the UnitedNations Global Environment Monitoring System/Water Programme. In August 2009, theGovernment also announced new regulations for managing municipal wastewater.In Liechtenstein, sustainable access to clean water is guaranteed by the regional platform“AlpineRhine”, which was founded in 1995 by the Governments of Liechtenstein, the AustrianProvince Vorarlberg and the Swiss Cantons Graubünden and St. Gallen.The European Union Strategy for Central Asia includes the sustainable management ofenvironment and water. The United Kingdom Department for International Development hassupported the water sector in Kyrgyzstan since 2002. The Rural Water Supply and SanitationProject (2002-2008) and a follow up project have been implemented jointly with the WorldBank. The UK contributed 239,690 EUR to a UNICEF project, which focused on recovery forwater supply and sanitation after the Tajikistan floods in the spring 2009.The European Bank for Reconstruction and Development's (EBRD) Early Transition CountriesFund (ETCF) and the Sustainable Energy Initiative (SEI) provide technical assistance to thewater and sanitation sectors in EBRD’s countries of operation. Since the Western BalkansInvestment Framework was established, the UK’s Department for International Development hasprovided a grant of 7 million EUR for, inter alia, water sector projects in Albania, Kosovo,Montenegro and Serbia.Monaco’s development agency has implemented programs in support of sustainable access toclean water and fight against desertification in Kenya, Ethiopia and Burkina Faso. In 2009,Andorra has allocated 25,000 EUR to the “French-Speaking Initiative for Water” jointlylaunched by the Prince Albert II of Monaco Foundation and the International Organisation of LaFrancophonie.Luxembourg has launched two development cooperation projects in Cape Verde to strengthenthe capacity of water operators on the Santiago, Fogo and Brava Islands, and one in Niger, toimprove sustainable water supply, hygiene, sanitation and environment in one hundred schoolsof the Boboye department.