OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

OSCEs Parlamentariske Forsamling 2022-23 (2. samling)
OSCE Alm.del Bilag 29
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Original: English

REPORT

FOR THE GENERAL COMMITTEE ON

ECONOMIC AFFAIRS, SCIENCE, TECHNOLOGY

AND ENVIRONMENT

Strengthening Regional Security by Fostering

Democratic and Inclusive Societies:

The Role of the OSCE PA

RAPPORTEUR

Ms. Gudrun Kugler

Austria

VANCOUVER, 30 JUNE

–

4 JULY 2023

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

REPORT FOR THE GENERAL COMMITTEE ON

ECONOMIC AFFAIRS, SCIENCE, TECHNOLOGY AND ENVIRONMENT

Rapporteur: Ms. Gudrun Kugler (Austria)

Introduction

We all aspire to live in a prosperous, clean, secure, free, just, and democratic world, in which

co-operation thrives, and our children can pursue peaceful lives full of opportunities.

However, war has returned to Europe with all its horrific consequences, and the road to a

peaceful and prosperous future has become longer and harder. The unprovoked and unjustified

military invasion of Ukraine by the Russian Federation constitutes a grave breach of all

international norms and principles, including the Helsinki Final Act, and as such represents a

turning point in the history of Europe and the OSCE. This illegal war has brought immeasurable

suffering to people, including torture and war crimes, as well as the destruction of the country’s

critical infrastructure. Moreover, the war in Ukraine has triggered economic distress, energy

instability, food insecurity, and environmental degradation across the OSCE region.

At the same time, participating States are struggling with post-pandemic economic recovery,

high inflation rates, new forms of poverty, and the challenges posed by climate change, which

is increasingly impacting the security of our citizens through extreme weather events, droughts,

heat waves, etc. In the face of all these crises, civil society and especially young people are

becoming increasingly frustrated and distressed. Parliaments should hear their voices and

concerns with a particular attention, as they represent a leading force of change for a better

future. Overall, there is a growing consensus that we need to become more sustainable and more

environmentally friendly in our development efforts; and that technology and science are

instrumental to this end.

On our way to reach a peaceful and prosperous future, we must first and foremost focus on

(re)establishing peace, while already planning to rebuild what has been lost or destroyed over

the past year. We should conceptualize a new way of co-operation with each other, creating

relationships of goodwill and trust, full of care and understanding of each other’s worries and

needs. Working together for the common good must be the priority of the OSCE Parliamentary

Assembly.

Economic Security and Sustainable Economic Recovery

Economic security is a key aspect of the OSCE comprehensive security approach, as it impacts

the daily lives of all citizens. The economic impact of the war in Ukraine had a ripple effect on

the whole OSCE region, which stalled growth and caused rising inflation, adding to the already

tense socio-economic context stemming from years of pandemic. The cost-of-living crisis

cannot be disassociated from higher commodity prices, a direct impact of the Russian

aggression against Ukraine. Europe’s reliance on Russian natural gas has increased the risk of

economic recession and social unrest after the outbreak of the war.

However, within every crisis also lies some new opportunities. The “perfect storm” we are

experiencing – climate change, the war in Ukraine, and the Covid-19 pandemic - shall be our

occasion to develop and implement sustainable economic recovery measures throughout our

region. This does not mean solely building back greener; it entails creating a smarter and more

resilient economic environment, using new technologies and innovative solutions. Indeed,

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

technological developments, digitalization and a more sustainable economy go hand-in-hand.

Open data and digitalization have proven to be useful by allowing citizens to access information

easily and to communicate more efficiently with their authorities, boosting civil society

participation, ensuring greater equality and a smoother transition to a greener economy.

Ultimately, it is crucial to rethink the relation between economic development and its impact

on the environment, and to find a more balanced and green development model to ensure

sustainable economic growth across the region, as slowing down economic growth to ensure

environmental efforts is undesirable.

In this regard, the OSCE PA Conference on “the Role of National Parliaments in Promoting

Security and Stability through Green Economy, Connectivity and Sustainable Development in

the OSCE Region”, held in Baku (Azerbaijan) on 22-23 May 2023 provides an excellent

opportunity for policy-makers to share key lessons learned in this field.

Women’s full economic participation in society is also a fundamental element to build stable,

sustainable, and prosperous societies. To that end, all states should increase social and labour

protection of women and motherhood and ensure full and equal access to the economy and the

labour market for women.

Good Governance and Economic Crimes

Promoting economic security is closely associated with ensuring good governance and fighting

economic crimes. Our Assembly is committed to tackle issues related to corruption and money

laundering and to promote good governance. Transparency should be a rule and not an

exception across the OSCE, and it should cover all levels of public functions. To that end, the

use of open data and digitalization to scale up the fight against corruption is key.

International organizations such as the OSCE should continue to take a strong stance against

corruption and to promote efficient and tailored policies against economic crimes and support

participating States in their implementation.

The adoption of the Supplementary Item ‘Code of Conduct for Members of the OSCE

Parliamentary Assembly’ – sponsored by our Special Representative on Fighting Corruption -

at the Birmingham Annual Session in July 2022 is an example of our renewed efforts to lead-

by-example, promote transparency, and boost accountability inside our Assembly.

Protecting the Arctic

Within the Arctic region lies great economic potential, ranging from natural resources to fishing

grounds and tourism. The greatest potential, however, may lie in the development of new

trading routes across the region as the ice continues to melt. Such routes could shorten existing

delivery times and alleviate pressure on some of the world’s trade bottlenecks, such as the Suez

Canal. At the same time, this fuels new geopolitical confrontations in the region. It is imperative

to closely monitor developments in the Arctic region and ensure peaceful economic relations

among relevant OSCE participating States, while protecting the delicate environmental

circumstances of the Arctic.

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

Clean Energy Transition

Over decades, compelling links between environmental degradation and global security have

become increasingly evident. Environmental problems affect people and countries in many

ways. Besides global security, environmental degradation threatens public health, social

cohesion, and development, to name just a few of the areas affected. Moreover, the world's

reliance on fossil fuels, often supplied by authoritarian regimes, may lead to geopolitical

tensions and, occasionally, conflicts.

Against this backdrop, a green energy transition which favours energy diversification makes

our economies more resilient to individual fallouts and less dependent on unstable countries

and authoritarian regimes. Clearly, it is an important step to undertake in order to ensure a

cleaner and more secure future for the next generations and for our planet.

The clean energy transition therefore represents a top priority of our time. Intended as the global

energy sector’s shift from fossil-based systems of energy production and consumption

(including oil, natural gas, and coal) to cleaner energy sources (such as renewables and low-

carbon hydrogen), it implies gradual changes, structural ruptures, as well as systemic shifts,

including reforms of energy markets to adequately integrate "prosumers" (households and

enterprises acting as both producers of renewable energy and consumers).

However, energy systems are complex and affect every aspect of society, therefore it is critical

to find the right timing for the transition. A swift transition to clean energy is as important as a

sustainable and long-lasting one. Changing energy sources and systems without the required

capacities and means to support the transition would likely result in a degradation of energy

reliability and an increase in energy costs which ultimately, would negatively impact the

citizens.

Science and technology play a central role in this context. The energy transition should leverage

the latest scientific findings and technological developments aimed at,

inter alia,

improving

energy efficiency across the board, reducing energy costs, developing and making economically

viable new sources of clean energy, and capturing existing emissions. Research on options to

better diversify energy production is key, from renewable energies that are already in use, to

new energy sources. Nuclear fusion, which is significantly cleaner than conventional nuclear

power, seems a particularly promising area of research, with many advanced international

efforts and experiments on-going. Technological development and scientific progress are keys

to support a transition that is both fast and well balanced, considering national circumstances

and systemic linkages in society, economy and environment. To achieve this goal - clearly

entailing profound economic, social, and cultural transformations in the coming decades, living

up to social challenges and taking into consideration geopolitical differences - we will need

strong political leadership, a common vision, and a shared sense of responsibility.

Ultimately, reliable and affordable energy is a prerequisite of economic growth, which is

instrumental to stability and security in the OSCE space. Hence, while we advance our energy

transition efforts, we must be cautious not to undermine the competitiveness of our economies

vis-a-vis those of countries that benefit from lower production costs and less stringent

environmental regulations, such as China and India. As parliamentarians, we must secure the

economic competitiveness of our countries and of the OSCE region as a whole while creating

strategies for an affordable and inclusive energy transition.

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

Energy for All

At the 5

Vienna Energy Security Dialogue, an international forum uniting decision-makers

from business, politics, academia, and civil society to discuss the opportunities and challenges

of the energy transition, the need to invest in affordability of energy and to place individuals at

the core of the energy transition was repeatedly stressed. As one of the largest expenditures of

households, citizens are particularly vulnerable to rising energy prices. We must prevent the

development of new poverty traps and insist on the inclusion of all in mobility and society.

Therefore, unhindered access to, and affordability of, energy is a key factor to secure citizens’

well-being and prosperity. Unfortunately, within the OSCE region there are still areas with

limited access to electricity. In rural areas of Central Asia, for instance, more than half of the

population are poorly connected to the national energy systems. For instance, 5,000 residential

areas in Kazakhstan are still not connected to the central power grid, and residents often resort

to burning coal to meet their household energy needs.

Hence, when setting common global

targets, it is crucial to duly ponder the different national circumstances of each country and

tailor strategies to best support local needs, thereby ensuring a more inclusive, fair, and efficient

energy transition. Ultimately, it is critical that all OSCE countries have unhindered access to

clean energy investments and programmes.

Energy Security and Critical Infrastructures

Together with the COVID-19 pandemic, the dramatic consequences of the war in Ukraine

highlighted the need for countries to reinforce the security and resilience of their energy

infrastructures and to strengthen their domestic capacity to build and apply clean technologies.

2022 was described as the year of the first global energy crisis by the World Energy Outlook

as it was marked by an unprecedented energy scarcity.

Resilience of energy infrastructure is at

the forefront of policymakers’ concerns, and the OSCE PA has contributed to this conversation

by organizing two debates on energy security during the Autumn and the Winter Meetings.

Several issues stem from this crisis. First, the energy crisis cannot be fully disassociated from

climate change, as weather variations impact participating States’ clean energy production

capacities. Incorporating data on climate change and weather patterns to our knowledge of

critical energy security could help to palliate this issue and better understand its nexus. Second,

the war has highlighted the importance of improving cyber security as threats surrounding

critical energy infrastructures have skyrocketed. Third, the energy crisis has raised both the cost

and the urgency of achieving the energy transition, putting additional pressure on already weak

economies. Finally, the destruction of the Nord Stream pipelines last September has

demonstrated the fragility of our current energy systems and the need to better protect our

critical energy infrastructure. The importance of transboundary infrastructure like submarine

cables and pipelines should not be underestimated. A thorough international investigation on

the destruction of the Nord Stream pipelines is therefore needed in order to ascertain

responsibilities and avoid similar attacks on critical infrastructure in the future.

Advancing Energy Security in Central Asia: Publisher Organization for Security and Co-operation in

EuropeDate 9 March 2022;

513787_0.pdf (osce.org)

IEA (2022), World Energy Outlook 2022, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2022,

License: CC BY 4.0 (report); CC BY NC SA 4.0 (Annex A)

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

Preventing Blackouts

Experts have warned that electricity networks are not currently designed to cope well with

significant sudden variations of energy inputs from sources with different voltages, for example

those dependent on the weather. This could trigger major blackouts, meaning a prolonged fall

out of electricity due to network breakdowns.

Such a scenario poses a serious threat to our

societies, which are highly reliant on electricity for almost any aspect of human life. Hence, it

is key to upgrade our networks and promote clean and stable energy supply, while also

preparing for the possibility of unexpected blackouts.

Energy transition to cleaner forms of energy production must duly consider the complex

systems in which energy production is embedded in today’s society, economy and environment.

Pro-environmental policies must not necessarily be anti-industrial or anti-economy. In fact,

economic development has often led to more environmental protection.

Climate Change and Environmental Protection

Climate change mitigation and adaptation encompasses a wide range of actions that aim to

eliminate, or at least reduce the risks to people and society stemming from global warming,

from food security to reacting to land erosion. Combating climate change is an uphill battle, but

with combined efforts and suitable actions it is indeed possible to minimize the damage it

causes. This was also underlined by the 2021 Ministerial Council Decision on Strengthening

Co-operation to Address the Challenges Caused by Climate Change. In this endeavour, the

Parliamentary Assembly is eager to work with the OSCE and its executive structures, as well

as with the governments of the participating States, to increase existing synergies and add its

distinct parliamentary contribution.

Technology plays an important role also in reducing green-house gases (GHG) emissions.

Investment in critical technologies such as carbon capture and storage, direct air capture, and

nature-based solutions to capture emitted GHG emissions can greatly help to reconcile, at least

in the short-term, the growing need for reliable and affordable energy with the requirements of

decisive climate action.

Considering that e-transportation

carries clear public health benefits, especially in our cities,

but does not necessarily entail a low CO2-footprint, for instance when the electricity used by e-

vehicles comes from fossil fuels, it is pivotal to continue researching alternative green

technologies in the mobility sector, such as hydrogen.

Both the construction and the long-term maintenance of residential and commercial buildings

are responsible for a significant share of environmental pollution. Technical deficiencies in

existing buildings, and avoidable design errors in new projects, often cause excessive energy

and resource consumption, as well as CO2 emissions. Against this backdrop, it is pivotal to

reduce the carbon footprint of our buildings, including by improving their design and

construction, promoting their renovation and reducing their energy maintenance costs.

Finally, it is critical to continue improving climate science to combat climate change more

effectively. There are still uncertainties in the prediction of future scenarios, which steer our

Scholastica N. Emenike, Gioia Falcone, A review on energy supply chain resilience through optimization,

Renewable and Sustainable Energy Reviews, Volume 134, 2020, https://doi.org/10.1016/j.rser.2020.110088.

(https://www.sciencedirect.com/science/article/pii/S1364032120303798)

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

actions in the present, therefore there is a need to conduct more precise analyses and more

focused modelling efforts to reduce these uncertainties. The public also needs to be adequately

informed about climate change. Instead of anxiety-driving slogans, we need a fact-based

dialogue in the fields of environment, politics and science, in order to enhance credibility and

foster common action.

We must foster a science-based approach and duly highlight the progress achieved so far in our

global efforts. Governmental awareness across the OSCE-region is high, key steps have been

achieved, technological innovation is at a peak, and good news is already coming in. Rare

species which were feared to be extinct, were spotted and documented again. Harmful

chemicals have declined by just over 50 per cent in the mid-level of the stratosphere compared

to the 1980s, and the Great Barrier Reef shows signs of recovery.

While working towards a

clean and sustainable environment and planet, it is pivotal to embrace a balanced and science-

based attitude in addressing these challenges.

Pollution as a Shared Liability

Pollution, hazardous waste and harmful radiation do not stop at borders. Neither does our

responsibility for the pollution we cause. It is rather common that environmental risks stemming

from industrial activities are partly borne by neighbouring countries, which in turn have no

direct production benefits. The polluter must take responsibility, no matter where harmful

effects occur.

Water pollution and water scarcity, as we see for example in the Aral Sea, are posing growing

threats to the OSCE region. Needless to say, water is crucial for people to survive and for

societies to thrive. It is a strategic natural resource directly impacting on security, as water

(mis)management can trigger conflicts, or act as a threat multiplier in times of conflict. Climate

change and poorly pondered human activities bare the potential to disrupt water security,

making water scarcity a growing problem around the world. Water scarcity has direct

implications on human health, sanitation, and political stability.

The OSCE region has approximately 150 rivers and lakes which are shared by two or more

States, making co-operation on water management a crucial part of its mandate. Water

management has a strong peacebuilding potential, as local environmental projects conducted

across our region have proven to promote social cohesion, regional collaboration and enhance

socio-economic factors. Hence, water diplomacy and co-operation between participating States

is necessary to reconcile varying water needs in the interest of security. More practical solutions

should be considered and implemented, such as the installation of wastewater treatment

facilities to curb the levels of water pollution.

Adding to this, an alarming number of micro- and nano-plastic particles have been detected in

virtually all ecosystems of the planet, including in some of the most remote areas of the world.

Last year, these particles were identified in various human organs, and even in their blood.

While negative health effects of exposure to micro-plastic particles have already been

demonstrated in various organisms, pathological effects on humans have yet to be established.

https://www.euronews.com/green/2022/09/27/wolves-bears-and-bison-50-species-make-spectacular-

comeback-in-europe

https://www.euronews.com/green/2022/08/04/australias-great-barrier-reef-shows-best-signs-of-coral-recovery-

in-36-years

https://www.weforum.org/agenda/2018/08/planet-earth-has-more-trees-than-it-did-35-years-ago/

https://www.unep.org/news-and-stories/story/plastic-leaching-farmers-fields-alarming-rate-new-report

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

It is therefore critical to step up research efforts in this field and put in place the appropriate

countermeasures.

Globalization and Food Security

Globalization has made our societies more interdependent than ever before. Since the decisive

factor of purchase is usually price, production centres have gradually shifted to places with

lower production costs, including food production. This has increasingly exposed our societies

to shocks deriving from unpredictable natural and geopolitical developments, such as the recent

pandemic and the war in Ukraine. It has often also increased the ecological footprint of our

goods, as delocalization of production often comes at the expense of environmental standards.

Hence, it is critical that OSCE participating States regain control over the production of

strategic/essential goods and services, such as food and medical supplies.

November 2022 marked the anniversary of the so-called Holodomor, a severe, arbitrary and

systematic famine provoked by the Soviet Union in 1932 and 1933, which, according to various

calculations, claimed the lives of 3.5 to 7 million people. In the current Russian war of

aggression against Ukraine, we are also witnessing the use of hunger and deprivation as a

weapon of war. As a key producer and exporter of grains and other essential food supplies, the

unjust aggression war against Ukraine endangers the lives of millions. We support all attempts

to secure food deliveries from Ukraine, despite the war and the upholding of production even

under such difficult circumstances.

Addressing Demographic Challenges

In many OSCE participating States demographic challenges have emerged as a result of

inter

alia,

lower birth rates and emigration trends. This has led to a disproportionately large group of

older population, challenging the concept of passing on life from one generation to another. It

also poses a democratic challenge, namely when an ageing population has a decisive voting

power, shaping society without sufficient regard to the needs of younger generations. These

demographic changes and the challenges they pose do not always receive the attention deserved

by legislators. It is therefore very important to closely monitor these developments and put into

place adequate responses. A multi-level dialogue aimed at identifying possible causes, likely

consequences, and plausible sustainable strategies for remedial action is needed to ensure

generational sustainability and structural solidarity.

Human Trafficking and ICT

Organized crime is seemingly always one step ahead. Trafficking of human beings has largely

shifted to a technology-initiated crime, as one unintended consequence of rapid technological

development has been the misuse of technology for the purpose of human exploitation. This

phenomenon affects all OSCE participating States. As also recognized in the Birmingham

Declaration adopted by the OSCE Parliamentary Assembly at the 29th Annual Session (2-6

July 2022), it is a matter of priority that OSCE participating States adopt policies and legislation

that will prevent the misuse of technology for trafficking purposes.

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

Artificial Intelligence

ChatGPT, which stands for Generative Pre-trained Transformer, is an Artificial Intelligence

chatbot that was recently launched and which has been fascinating users with accuracy of its

human-style texts. It is crucial to carefully ponder the effects of this radical invention on

education and public discourse. Issues such as plagiarism, the development of citizens’ critical

thinking and writing abilities, as well as risks associated with cybersecurity, are clearly at stake.

Multi-stakeholder initiatives are urgently needed to properly assess the impact of such new

technologies and AIs on our societies and their security, and regulate their development and use

as appropriate.

Data Management

Data management issues have become central in our digital lives. Personal data is increasingly

being stored and exploited by companies with very little transparency and regulation, thereby

attaining power, which is not democratically legitimized. At the same time, data is a prominent

resource which – when used meaningfully and shared transparently – can greatly enhance

inclusiveness in our societies and boost scientific progress. An effective data-management

strategy should entail the creation of a transparent legal framework for public data use and

protection as well as infrastructures of responsible bodies, meeting the requirements of a highly

complex digitalized world.

Inclusion and Participation

Digitalization of services in fields such as economy, public administration, education and

health, brings new opportunities for freedom and prosperity. Naturally, it also comes with

challenges, one of which is inclusion: participation depends on access to devices and the

internet, as well as on the capacity and willingness to use them. Parliaments should spearhead

efforts to develop strategies that ensure that digitalization will be employed for the benefit of

all the people, leaving nobody behind.

We must ensure that all citizens have equal access to fundamental services, information, and

essential goods, independent of their ability to use digital means. In particular, the elder

generation and poorer or less educated people need to have a right to participate in the political,

social and cultural life by analogous means. Therefore, as parliamentarians we need to develop

legislation which obliges state institutions and providers of basic goods, such as energy, water,

education, health to procure possibilities for citizens to approach them, get information, file

applications, and voice their concerns by non-digital means as well. We also need to develop

our understanding of human rights in the light of recent developments and declare and

implement a human right to participate in the social, political, and economic life by non-digital

means.

Medical Security

The origin of the Covid19/SARS virus has not yet been fully clarified. This incertitude has led

to questioning the safety of laboratories engaged in so-called “gain of function” virology, in

several participating States. Making a virus more dangerous in order to research its

functionalities poses obvious security hazards. Re-adjusting the security standards of these

laboratories and confronting ethical questions raised after the global pandemic are essential

steps in this context.

OSCE, Alm.del - 2022-23 (2. samling) - Bilag 29: Reports and Draft Resolutions of the Three Committees of the OSCE PA

Another issue that should not be overlooked is the decrease in manufacturing of medications in

the OSCE region, due to the globalization of drug trade. Most of the world’s medication is

currently produced in China and India. This concentration of the market comes with risks,

which include disruptions in supply chains, as was recently experienced in several European

countries. Also, manufacturers can decide to stop producing a certain drug when it is no longer

profitable enough, leaving buyers with very few alternatives. Diversification of sources of

essential medicines must be a goal of our parliamentary work.

Ultimately, a comparative analysis of the different approaches of OSCE participating States

vis-à-vis the COVID-19 pandemic could serve to develop a better understanding of this health

crisis and prepare better for the next one.

Conclusion

Against this very articulated background, the OSCE PA Second General Committee shall

continue to examine topical security threats related to the environment, economy, science, and

technology, as well as to explore opportunities for co-operation within these fields to foster

longer-term security, prosperity, and sustainable development in the OSCE region. Our

Committee is quickly becoming the most forward-looking body of our Assembly. The multiple

crises of our time have demonstrated the importance of the themes we are mandated to focus

on and urges us to explore innovative ways to address them co-operatively. Co-operative

security on economic affairs, science, technology and environment is more important than ever.

All stakeholders are called to engage and commit themselves and join expertise and forces. I

hope that this report is a small contribution to this process.