Documents considered by the Committee on 7 November - European Scrutiny Committee Contents


12 Marine and maritime sustainable (Blue) growth

(34262)

13908/12

COM(12) 494

Commission Communication: Blue Growth — opportunities for marine and maritime sustainable growth

Legal base
Document originated13 September 2012
Deposited in Parliament21 September 2012
DepartmentBusiness, Innovation & Skills
Basis of considerationEM of 30 October 2012
Previous Committee ReportNone, but see footnotes
Discussion in CouncilSee para 12.4 below
Committee's assessmentPolitically important
Committee's decisionCleared

Background

12.1 According to the Commission, if account is taken of all activities which depend upon the sea, the EU "Blue economy" represents 5.4 million jobs with a gross added value of just under €500 billion a year, in areas such as tourism, offshore oil and gas, offshore wind, shipping, fisheries and aquaculture, blue biotechnology, marine mining, and coastal protection. It says that, because they are outward looking, ports and coastal communities have traditionally been centres for innovation, and it also points out that three new factors opening up a significant opportunity for blue growth have recently come into play — technological developments which allow offshore work in ever deeper waters; the need to explore how the ocean and seas can play a role in meeting challenges relating to food and energy supply; and, in the light of the need to reduce greenhouse gas emissions, a growing focus on off-shore wind and wave energy, and on seaborne transport as a greener alternative to land transport.

The current document

12.2 The Commission says that the purpose of this Communication is to drive forward the Integrated Maritime Policy (IMP) and to launch a process which will place the blue economy firmly on the agenda. In particular, it describes how Member States are already supporting the blue economy, and sets out the measures which the EU has taken to reinforce these (see Annex). It then identifies the following specific areas where it believes that targeted action could provide and additional stimulus:

Blue Energy

The Commission argues that maritime energy has the potential to minimise the land use requirements of the energy sector and reduce greenhouse gas emissions. It notes the contribution already made by offshore wind power, and calls for EU measures, including funding, to provide a framework that will give investors confidence to invest in other new offshore technologies such as tidal barrage, wave power devices and ocean thermal energy conversion.

Aquaculture

The Commission notes the rapid growth of aquaculture in recent years, but argues that more needs to be done to promote it and to increase competition. It says that, as part of the reforms to the Common Fisheries Policy, it will therefore put in place an 'open method of coordination', based on non-binding strategic guidelines, multi-annual national strategic plans, and the exchange of best practice.

Maritime, coastal and cruise tourism

The Communication notes that the tourism sub-sector has now become the largest single maritime economic activity, employing 2.35 million people, but stresses the fundamental contribution of such factors as high quality bathing waters and the protection of coastal and marine habitats. It recognises that, because of the sheer variety of circumstances, initiatives to generate growth will largely be local or regional, but suggests that EU level coordination can help to support this.

Marine mineral resources

The Communication notes that European companies could be well placed to take advantage of the potential increase in the demand for minerals extracted from the seafloor, and that EU support could ensure that they are not squeezed out of the value chain by state-supported competitors. It suggests that such support could include pilot action within the framework of the proposed European Innovation Partnership on Raw Materials,[26] and by an EU research effort addressing the main technological challenges.

Blue biotechnology

The Commission argues that the blue biotechnology sector will emerge as a niche market focused on high value products for the health, cosmetic and industrial bio-materials sector. It calls for a strategic approach to research and innovation to support this development, and a European approach to raise awareness among policy makers, the private sector and the general public.

The Government's view

12.3 In his Explanatory Memorandum of 30 October 2012, the Minister of State for Universities and Science at the Department for Business, Innovation & Skills (David Willetts) says that:

Blue Energy

The UK largely supports and agrees with this part of the Communication, and is working with other Member States and the Commission to build a strong marine and ocean energy industry within the EU, taking a forward role in this area. However, increased renewable energy in the UK and other parts of the EU is due not only to EU incentives, which have complemented as well as facilitated a range of national measures.

The Government sees offshore wind as the most established form of renewable blue energy, but regards wave and tidal stream technologies as rather more advanced than the Communication implies, being on the verge of commercialisation. It also notes that efforts are being made to reduce the costs of marine energy, with the UK Offshore Wind Cost Reduction Task Force having concluded that a cost reduction of over 30% was possible by 2020, provided its key recommendations are implemented.

The Communication rightly highlights the importance of infrastructure development for marine energy, and the UK, with other northern EU Member States, Norway and the Commission, is part of the North Seas Countries Offshore Grid Initiative, which works together on developing offshore renewables generation and infrastructure in the North, Irish and Baltic Seas, and on finding ways to address the various regulatory, technical and other barriers in the most cost-effective way.

The Department for Energy and Climate Change, with the Health & Safety Executive, is working to ensure that the UK's own high environmental and safety standards are not adversely affected by the proposed EU legislation on offshore hydrocarbons drilling.

As the Commission has noted, the local sourcing of marine energy helps to reduce the need for imports, thereby improving European energy security.

Aquaculture

The Government shares the Commission's view that aquaculture provides significant potential for growth and jobs, but believes that such growth must be market-driven, sustainable and not come at a cost to the environment. Therefore, whilst the UK welcomes efforts to promote sustainable growth in aquaculture, these must be applied to an industry which is competitive and can operate in international markets, and the Government does not wish to see food production supported by public subsidy if the industry is unable to survive without such support.

Marine spatial planning

The Government recognises fully the benefits of seeking to ensure sustainable development of the marine environment, of helping to provide transparency and confidence for investment, and of setting a direction for marine management decisions, leading to efficient use of marine resources in a way which integrates economic, environmental and social objectives. The UK has the necessary domestic legislation and policy framework in place, and is actively implementing marine spatial planning.

Integrated Coastal Zone Management (ICZM) is primarily a process facilitating delivery by people or groups working together, and which enables coastal areas and the issues they face to be managed in a sustainable way. The Government believes strongly that ICZM cannot be achieved through any binding measure, and thus considers that the Commission should take forward only those actions that add the most value, and which are realistic, proportionate and cost-effective. The UK has also made clear that any EU-wide initiatives or measures must both supplement and complement those already in place, and not undermine the progress which Member States have already made in this area.

Marine, coastal and cruise tourism

The Government shares the Commission's view that maritime, coastal and cruise tourism can be a valuable contributor to economic growth, and looks forward to seeing its impact assessment on the development of this sector.

It says that the seaside remains a vital asset for the UK's visitor economy, accounting for around 20% of domestic overnight visits and 25% of overnight spend, and adds that the Government's tourism strategy includes a strong and clear commitment to increasing the value of the domestic tourism market. Coastal destinations and attractions will be of critical importance in achieving this goal, with national tourism boards giving significant coverage to them.

Marine mineral resources

There are no direct policy implications arising from the section on marine mineral resources, but the Government looks forward to proposals from the Commission on how European industry can increase its competitiveness in extracting minerals from the sea floor, and welcomes the commitment it has made to produce an Impact Assessment. The UK will work to ensure proposals are consistent with the need for open and competitive markets.

Blue biotechnology

The UK recognises the potential of the blue biotechnology sector to stimulate long-term growth and jobs in the blue economy, whilst safeguarding its unique marine environment for future generations, and will continue working with industry and other stakeholders to develop basic science and mechanisms to support translation of science into sustainable and commercially viable opportunities in this emerging sector.

The Government broadly welcomes the Horizon 2020 proposals, which the Commission has identified as the mechanism through which Research, Development and Innovation (R&D&I) into blue growth can be addressed. It supports the need for a strategic approach to research and innovation and the importance of removing technology bottlenecks as part of making investment more attractive in general. However, it stresses that negotiations on Horizon 2020 are ongoing, and that, until there is a complete package including both the content and the budget, it cannot commit to supporting all the areas of blue growth R&D&I identified in the Communication through Horizon 2020.

12.4 The Minister notes that the Commission intends to analyse the policy options under each of the five headline areas identified in the Communication and to consider further initiatives. These will include presenting a Communication on ocean renewable energy in 2013; agreeing strategic guidelines on aquaculture by 2013; presenting an impact assessment on the development of maritime and coastal tourism in 2013; presenting a Communication on extracting minerals from the seafloor in 2014; and presenting a Communication on blue biotechnology in 2014.

Conclusion

12.5 Since this is a wide-ranging Communication, covering an area of some economic and environmental significance, we are drawing it to the attention of the House. However, the Communication itself is essentially a resumé of action which has been taken, is in progress, or is proposed, and we do not think it gives rise to any issues which need to be considered further at this stage, since an opportunity for more focussed scrutiny will arise when the follow-up proposals envisaged by the Commission are put forward over the next 18 months. We are therefore clearing the document.

ANNEX

ON-GOING EU INITIATIVES

  • Marine Knowledge 2020, which provides an integrated knowledge infrastructure, based on national data collection systems delivering data products at a European level.
  • A Common Information Sharing Environment (CISE) for the surveillance of the EU maritime domain, which will allow maritime authorities responsible for activities such as safe navigation or fisheries control to share information on risks and threats.
  • The Marine Strategy Framework Directive (2008/56/EC), which introduces an eco-system based approach, aiming at ensuring that the pressure of human activities on the environment is kept to level compatible with the achievement of good environmental status by 2020.
  • The European Maritime Transport space without Barriers, which aims at simplifying administrative procedures for maritime transport.
  • The EU's programmes for marine and maritime research and innovation, funded through the current framework programme, and the future Horizon 2020 programme, which will (among other things) target cross-thematic marine and maritime research.
  • The LeaderSHIP 2015 initiative aimed at tackling the new challenges facing the EU shipbuilding sector.





26   (33733) 7247/12: See HC 428-lvi (2010-12), chapter 4 (27 March 2012). Back


 
previous page contents next page


© Parliamentary copyright 2012
Prepared 16 November 2012