Workshop on cleaner production and eco-efficiency as a platform for co-ordinated development of sustainable environmental activities in the barents region

Dear Mr. Chairman, Ladies and Gentlemen.

As a chairman for the Barents co-operation on environment, I am very pleased to be here to welcome you to this workshop on sustainable development based on cleaner production and eco-efficiency. I am especially pleased to welcome such a broad group of Russian participants.

Let me first give you a brief introduction into the Action Program of the Senior Environmental Officals, which tells how we are developing environmental co-operation in the Region.

• The overall aim of the environmental co-operation is to promote sustainable development for the population of the area which is rich in natural resources and culture, but needs economic and social development.
• Cleaner production is definitely one of the most important issues that we try to elaborate under the Norwegian chairmanship.
• In addition, we will also focus on how climate change and energy co-operation can be stimulated through projects aiming at fuel switching and energy efficiency to reduce emissions of greenhouse gases and local and regional air pollution. This can be enhanced through Joint Implementation projects under the Kyoto Protocol, which I still hope the Parties will agree to after the setback at COP 6 in Haag.
• Furthermore, it is a priority to integrate considerations with regard to biodiversity in the Forest Sector Program of the Barents Region. The forest industry is an important industry in a large part of the region, but commercial activities must be developed within the environmental framework to be sustainable.
• It is also a priority to preserve parts of the rich Russian culture such as the monastary at the Solovetsky Archipelage which is on the UNESCO’s World Heritage List
• People-to –people co-operation will be stimulated to promote environmental commitment and action. This will be a supplement to government-to-government co-operation. I am convinced that people-to-people co-operation is fundamental to promote environmental commitment and local actions, and thereby to enhance the belief that changes are possible.

• We are aiming for a ministerial meeting in August next year in Finnmark.

Already in the first declaration, adopted by the Barents Council in 1994, Cleaner Production was set out as a prioritized instrument for promoting Economic and Environmental Efficiency (Eco-efficiency) in Russian industry. Introduction to Cleaner production in Russian industry has also been one of the main and most successful bilateral projects in Norway`s environmental co-operation with Russia.

I would also like to mention an important event this year which was highlighting the benefits of Eco-efficiency to sustainable development, namely the conference Eco-Efficiency 2000, arranged by the Swedish National Board for Industrial and Technical Development, NUTEC, in Malmø, Sweden.

Another important initiative is the EU process on increased attention to northern questions. I do consider the Action Plan for the Northern Dimension, which was adopted in Feira in June this year, as a very important step. The potential for cleaner production and climate change is an issue in the plan. In line with the recommendations in this Action Plan for the Northern Dimension in the EU policies. In this respect I have together with my Nordic collegues, asked the EU Commision to support the development of an environmental investment facility, as appropriate, for "small and medium and cleaner production projects" in North West Russia. In general I find the regional fora like the Barents Council, the Arctic Council, Baltic-21 and the Baltic Sea Council important for implementation and development of this Action Plan, and I intend to be active in this respect.

Since 1994 almost 1100 Russian engineers in about 250 companies have acquired the know-how to make their activities and production processes more environmentally friendly in a profitable way. I am convinced that the main reason we have had such good results is the eagerness, competence and willingness that our Russian colleges have shown. I am therefore glad to see that the time has now come to discuss and elaborate new possibilities and further dissemination of the programme. In this respect, I am also very pleased that our collegues from Polen and Lithuania were willing to share their experiences with us.

Sustainable energy use is a highly prioritized field of the Barents co-operation. There is a good potential for joint implementation of projects that can reduce climate gases in a cost effective way and at the same time improving local environment. Introduction of technology for fuel switching and energy efficiency to reduce emissions of greenhouse gases can contribute to modernisation of the energy sector and social and economic development in the Barents region. In this context, I am informed about the application from the Norwegian Energy Efficiency Group for economic support to develop a Bioenergy Programme for Northwest Russia. I understand that both my Ministry and the Ministry of Petroleum and Energy intend to support this major fuel-switching programme. Such projects could be considered as Joint Implementation projects under the Kyoto Protocol.

We intend to co-ordinate activities in this field in the Barents Region with activities in the Baltic Sea Region. Despite the setback of the negotiations in Haag, it is important to continue work aiming for an operative Kyoto Protocol, which will only be the first step in achieving the long term objective of the Climate Change Convention.

I would also like to point out that Norway has a bilateral agreement with Russia on energy efficiency co-operation in Northwest-Russia, under which the Energy Efficiency Centres in the region have been established. These centers have recently been given the status as Local Barents Energy Centers. We have encouraged closer co-operation between the Energy Efficiency Centers and the Cleaner Production Centers.

The combined effect of eco-efficiency and cleaner production on the environment, on the economy, on trade and sustainable development, makes it one of the most effective instruments improving productivity combined with environmental concern. It is therefore important to integrate Cleaner production efforts with general development and innovation issues. A good dialogue with other stakeholders like labour unions, Non Governmental Organisations, investment companies and insurance industry is of great importance in this respect.

In my view cleaner production can serve as core activity of sustainable development in industry. On the present level of development and modernisation, I think that Russian industry still has a great potential for taking further advantage of Cleaner Production. However the programme has also a potential for development along several lines. An essential condition will also be training and education of students in technical schools and universities. The success of this initiative calls for a number of follow up activities which might be organised both as joint or co-ordinated programmes, and as bilateral initiatives.

Cleaner production also serves as excellent tool for development of environmental management systems in companies.

A growing number of companies in the Nordic countries are now actually introducing various tools of environmental management or "Eco-efficiency". One could imagine that the reason for this is their sudden environment friendliness. However, a more obvious reason is the economic benefit of becoming more resource-efficient. In addition to the signals from foreign markets, requiring documentation and certificates proving the environmental friendliness of their products and processes.

In this connection I am pleased to tell you that a major cornerstone factory in the Karelian Republic, the machine building company "Petrozavodskmash" has now started its own preparation for ISO 14001 certification after making a series of Cleaner Production investment projects. The company is also a client of the NEFCO Cleaner Production Credit Facility, which was established by the Nordic Council for this purpose.

This is good news for the Barents Council, being the first international body to introduce Cleaner Production and Eco-efficiency to Russian industry, and having been active for six years in promoting it.

Nordic Environment Finance Co-operation (NEFCO) is one important actor when it comes to sustainable investment projects in the Russian part the Barents region. I am therefore very pleased to find that the NEFCO Revolving Fund for cleaner production projects now seems to be functioning in Russia. This, I hope, will be a fundamental tool for clean technology and thus serve as an excellent example of the saying "Pollution Prevention Pays". We should in my opinion consider recommending reinforcement of such financial instruments, and also make pressure on other financial instruments to claim eco-management or cleaner production as a presupposition for investments. It is important to reinforce available financial instruments, such as NEFCOs Revolving Facility for Cleaner Production Investments and to support the development of environmental investment facilities for small and medium size projects in Northwest-Russia.

When it comes to pollution control as such, I believe that we all share the same question on how to establish a good and interactive communication between industry and pollution control authorities? I have already touched the fact that cleaner production and eco-management can serve as a first step towards establishment of an environmental management system in a company. Environmental management systems also include somehow a commitment to compliance with environmental laws, prevention of pollution and continual improvement. I believe that environmental authorities should share a significant contribution in the efforts of introducing and promoting cleaner production implementation and contribute to demonstration projects on clean technology.

Thank you very much for your attention. I am sure you will have fruitful discussions during this work shop, and I look forward to see the concrete proposals for following up during my Barents Chairmanship.