Foreign Minister Knut Vollebæk:

Report from the energy ministers of the Baltic Sea Region

Ministerial Conference on the Northern Dimension, Helsinki, November 12, 1999

Energy is essential in order to achieve the overall objective of stability and economic integration in the Baltic Sea region. I am therefore very pleased to report on the meeting on 24 and 25 October of the energy ministers of the Baltic sea states. The meeting also included high level representation from the United States, from many of the EU countries and from international organisations such as the International Energy Agency (IEA), the Energy Charter, and Nordic and European institutions.

The meeting was very successful. This was not least thanks to the excellent preparatory work done by Finland as the host country. As Chairman of the Council of Baltic Sea States, I would like to express my sincere thanks to the Finnish government for its contribution and its hospitality.

At this meeting the energy ministers decided on a comprehensive and credible programme of energy cooperation. Their decision completes the first phase of a process which was initiated at the CBSS summit in Riga in January 1998.

From now on energy is an integral part of the CBSS cooperation.

The program identifies all the key areas where energy cooperation can remove impediments to growth and promote economic and social development in the Baltic region.

It provides guidance for the important role to be played by the authorities and by commercial and industrial actors to further develop the resource potential which exists in the region. The programme is also designed to address common environmental challenges and climate change.

The decisions to strengthen the CBSS secretariat by taking on specialists on energy, and to set up a forum for senior energy officials, demonstrate the ministers’ commitment to integrating energy into the CBSS framework. Some delegations announced that they were prepared to give an initial financial contribution for this purpose, which of course was welcomed by the energy ministers.

The Helsinki communiqué is in your file for this meeting. I will therefore limit myself to highlighting some of its main points.

The energy ministers identified two areas which are essential for future energy cooperation: i) organisation and integration of the electricity and gas markets, including the basis for infrastructure investments; and ii) climate change policies, work on renewables and energy efficiency.

The electricity network is well developed in most of the region. However, the energy authorities will need to look at the harmonisation of legislation to further promote trade and environmental concerns in the electricity sector.

It will be a major challenge to link the whole region in a common electricity network.

Natural gas and nuclear power will continue to attract considerable attention. Natural gas has important implications for energy security. It is an environmentally friendly source of energy. The role of nuclear power in electricity production requires the full attention and cooperation of all states in the region, in order to deal with safety and waste management issues.

The directives for a common approach to the problem of climate change take into account the technical and regional features which are particular to the Baltic region.

The Helsinki energy ministers’ meeting was undoubtedly a milestone.

Our joint efforts to promote political stability, economic growth and sustainable development will be strengthened. We now have clearly stated objectives about the involvement of the public and private energy sectors.

The focus on energy linkages between the Baltic region and continental Europe opens up important political perspectives for the entire European region. The significance of the Helsinki meeting should therefore be recognized by this meeting of foreign ministers.

The “Northern Dimension” provides a political framework for long-term energy security. It will bring together producers and consumers in the Northern European region to address this vital issue and how it relates to market liberalisation and environmental issues. The CBSS energy programme will be one of the main building blocks in this process.

The Baltic sea region also offers important opportunities with regard to cooperation on climate change mitigation. With the implementation of the energy programme, the Baltic Sea region could become a testing ground for international cooperation in the use of socalled flexibility mechanisms – the concept which many believe is the key to successful implementation of the Kyoto commitments.

Thank you