NORTHERN LIGHTS ON SUSTAINABLE DEVELOPMENT

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1 WE ARE BALTIC 21 A greenhouse for sustainable ideas. People have ideas. For sustainability. For social, environmental and economic change. We find and develop creative and practical solutions for sustainable development, facilitate them and make them grow. Baltic 21 works with all aspects of sustainable development. This means that we are not just targeting purely environmental issues, but also social and economic actions in an integrated way. CBSS Secretariat Slussplan 9 P.O. Box 2010 SE Stockholm Sweden Phone Fax baltic21@cbss.org Environment/baltic-21 cbss.baltic21 NORTHERN LIGHTS ON SUSTAINABLE DEVELOPMENT Good Practices & Policy Recommendations on Green Economy

2 Dear Reader, The Baltic Sea Region connects eleven very diverse countries with shared traditions and close cultural and economic ties. Due to the intensive use of the Baltic Sea, the riparian states face a common responsibility to protect the marine environment and other jointly used ecosystems a task that requires close macro-regional cooperation. The Council of the Baltic Sea States (CBSS) was founded in 1992 to create a forum for this political, economic, cultural and environmental cooperation. As one of its key areas of work, the Council seeks to establish sustainable development and environmental protection as guiding principles of economic and social development. This approach makes the Baltic Sea Region a model region for sustainable development. The CBSS Expert Group on Sustainable Development Baltic 21 is the main policy forum in the region for dialogue with stakeholders from politics, science, business and civil society on sustainability challenges. Through an innovative project-to-policy approach Baltic 21 fosters a link between national actions and global commitments on sustainable development. In line with the Council of the Baltic Sea States sustainability agenda, Germany is using its Presidency of the Council in 2011/12 to systematically advance the transition of the Baltic Sea Region towards a green economy. Good practice examples for the green economy with implications for Europe and beyond can be derived from specific regional projects. The UN Conference on Sustainable Development, which takes place in Rio de Janeiro, Brazil, in June 2012, will provide an opportunity to incorporate the experience gained into the global process. Using lessons learned from the Baltic 21 Lighthouse Projects this brochure aims to highlight how the network of cooperation in the region can contribute to a clean Baltic Sea, an economically strong and innovative region and stable, socially responsible societies. I hope you enjoy reading this brochure. Jürgen Keinhorst Chair of the Council of the Baltic Sea States (CBSS) Expert Group on Sustainable Development - Baltic 21

3 SUSTAINABLE DEVELOPMENT IN THE BALTIC SEA REGION Iceland Sweden Finland Growing prosperity has made it possible for us in the Baltic Sea Region to invest in solutions to many environmental problems. In fact, no other region in the world has such a strong track-record when it comes to sustainable development, in both principle and practice. But, despite the Baltic Sea Region s clear commitment to sustainability, we still have a long journey to walk in ensuring prosperous economies, healthy societies and dynamic ecosystems in a balanced and integrated manner. Norway Some of the greatest challenges for us in the Baltic Sea Region are those of a changing climate, economic crises, unsustainable consumption and production patterns, as well as demographic changes caused by an aging population and increased youth unemployment which forces our young people to leave rural areas for opportunities in cities, often beyond our own region. The Baltic Sea itself is battling with eutrophication, overfishing and hazardous waste. These challenges are much more multifaceted and complex than those of 20 years ago. Today we need more cross-sectoral and integrated approaches to sustainable development as well as multi-level governance structures. The environment sector cannot on its own safeguard a sustainable Baltic Sea Region. Denmark Estonia Latvia The Russian Federation However, there are positive signs that the next economic wave centres on building a green economy. In our region, we already see great new creative innovation and development in the fields of renewable energy, sustainable food production, transportation, forestry and low carbon building, clean technologies and so much more. In recent years, the realization that increasingly scarce resources pose a threat to our economies and the environment has paved the way forward for new green thinking with regard to the economy, one in which material wealth is not delivered at the expense of the growing environmental risks, ecological scarcities and social disparities. Despite the financial and economic crises which hit the region hard in 2008, many governments continue to investigate ways and means of levelling the playing field for greener products and services. This can be done by reforming policies and providing new incentives, setting minimum standards on th environmental performance of products, improving consumer information, redirecting public investments and greening public procurement to name a few. Germany Poland Lithuania 4 5

4 SUSTAINABLE DEVELOPMENT WITHIN THE COUNCIL OF THE BALTIC SEA STATES Baltic 21 has a project-to-policy approach in promoting sustainable development within the region. We develop projects, so called Baltic 21 Lighthouse Projects, and within their framework we identify, develop and test practical solutions for sustainability. The projects also assist in developing policy recommendations that the CBSS-Baltic 21 promotes on different political levels such as national governments, the European Commission and even the United Nations. IDEA The Council of the Baltic Sea States Expert Group on Sustainable Development - Baltic 21 works with all aspects of sustainable development. This means that we are not just targeting purely environmental issues, but also social and economic actions in an integrated way. An Agenda 21 for the Baltic Sea Region, was initiated by Prime Ministers of the Baltic Sea Region States in 1996 which lead to the formation of the Baltic 21 network. As an Expert Group of the CBSS, we provide a forum for continuous dialogue among governments and stakeholders in the Baltic Sea Region on sustainable development. GOVERNMENTS CBSS-BALTIC 21 PARTNERSHIP CBSS-Baltic 21 is a multinational team of relevant government ministries and agencies from the 11 Baltic Sea States, numerous intergovernmental and non-governmental organizations, academic institutions, local, city and sector networks. For the period the CBSS Strategy on Sustainable Development guides our work. The prioritized areas of cooperation include climate change, sustainable urban and rural development, sustainable consumption and production as well as innovation and education for sustainable development. POLICY LIG H T H O U SE P R O J E C T PROJECT In addition to CBSS-Baltic 21 there are other bodies and networks under the CBSS umbrella that are addressing sustainability. Baltic Sea Region Energy Cooperation (BASREC) deals with energy efficiency and renewable energy and the newly established Public-Private Partnership Cooperation Network (P3CN) addresses sustainability aspects of public-private partnerships. ACTIONS 6 7

5 KEY ACHIEVEMENTS & LESSONS LEARNED FROM ALMOST A DECADE OF PROJECT ORIENTATION CBSS-Baltic 21 activities and projects have a strong policy focus. This has led to our work having a significant impact on the development of sustainability strategies and policies at different levels: from local to European. One example is that all on-going Baltic 21 Lighthouse Projects are either flagship projects or closely linked to the Action Plan of the European Union Strategy for the Baltic Sea Region. CBSS-Baltic 21 is frequently highlighted and appreciated in Ministerial Declarations in the Baltic Sea Region, most notably by the Council of Foreign Ministers and the Baltic Sea State Summits of Heads of Government and the President of the European Commission. Since 2004 CBSS-Baltic 21 has facilitated and supported the development and implementation of twenty Baltic 21 Lighthouse Projects. The average budgets for these projects are 2,5 million Euros and each comprises of about fifteen partners. Hence, over the last eight years the CBSS-Baltic 21 has helped to mobilize about 50 million Euros and worked with more than 300 partners in the Baltic Sea Region. Through the work of the Baltic 21 Lighthouse Projects we have enabled people-topeople contacts and exchange of experiences and lessons learned in sustainable development. Numerous workshops, seminars and training exercises have provided opportunities for fruitful discussions in highlighting best practices in various fields of sustainable development. Handbooks and reports as well as databases have been produced to make the collected knowledge and information easily accessible to experts and the general public. The Baltic 21 Lighthouse Projects have dealt with a broad scope of issues such as sustainable tourism, model forest networks, urbanrural interaction, eco-innovations, promoting sustainable bio-energy, adapting to climate change, and increasing the use of green public procurement 8 9

6 CBSS-BALTIC 21 Baltic Sea Breeze EcoRegion Bioenergy Promotion LIG H T H O U SE P R O J E C T AGORA BUSTRIP SPIN New Bridges AGORA 2.0 Marlin BaltCoast SUSTAINMENT EHSA EcoVillages Reco Baltic 21 Tech BALTADAPT New Hansa of Sustainable Ports and Cities A.S.A.P. Baltic Forest Baltic GPP Baltic Landscapes 10 11

7 KEY MESSAGES ON GREEN ECONOMY GREEN PUBLIC PROCUREMENT Green economy focuses primarily on the intersection between the environment and the economy. The United Nations Environment Programme defines a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In a green economy, growth in income and employment are driven by public and private investments which reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. During the German Presidency of CBSS ( ), Green Economy has been one of its priorities. During this year, we have focused on four areas of critical importance in fostering green economy. ECO-INNOVATIONS & GREEN ENTREPRENEURSHIP CORPORATE SOCIAL RESPONSIBILITY WITHIN SMEs & PUBLIC PRIVATE PARTNERSHIPS SUSTAINABLE ENERGY 12 13

8 GREEN PUBLIC PROCUREMENT Public authorities are often large economic actors in local markets with many employees and a great demand for energy, goods and services. By using the criteria of sustainability in their purchasing practices, public authorities trigger a growing supply of sustainably produced goods and services. The Baltic 21 Lighthouse Project Baltic Green Public Procurement addresses this issue. Also, the Baltic 21 Lighthouse Projects SPIN and RECO Baltic 21 Tech have highlight the potential of green public procurement as a means to foster green economy. POLICY RECOMMENDATIONS: BEST PRACTICE EXAMPLE FROM THE REGION Support the development of national and regional GPP strategies Apply sustainability criteria to all public procurement Base the GPP on the principle of life-cycle costs Address risk awareness of public procurement to allow procurement of innovative solutions Provide transnational communication platforms for sustainable procurement Facilitate national training programmes on sustainable procurement for procurers working with local, regional and national authorities Disseminate good practice measures from the Baltic Sea Region in the field of sustainable public procurement Using procurement as a way to reduce CO2 emissions from waste management Within the area of waste management long-term investments are made in the treatment system. It is important that these investments are procured and take into consideration not only the lowest price but also the best solution from an environmental perspective. Many municipalities aim at low carbon dioxide emissions. One way to lower the emissions is to set a high standard for the trucks collecting waste. The city of Gothenburg, Sweden has, for example, when procuring the collection of municipal solid waste used this opportunity to reach a higher standard in the vehicle fleet: Certain percentage of the trucks which must run on bio-fuels Highest performance engine Electrical lifters for the compactors 14 15

9 ECO-INNOVATION & GREEN ENTREPRENEURSHIP The Baltic Sea Region has the potential to be a global frontrunner when it comes to the development of knowledge-intensive products and services, as well as eco-innovations. Cross-border support structures are already established. The challenge is now to make eco-innovations more known and accessible to consumers, as well as to ensure attractive frameworks for entrepreneurs and clean tech clusters in the region. The Baltic 21 Lighthouse Project SPIN has been working to promote sustainable production through eco-innovation in SMEs. POLICY RECOMMENDATIONS: BEST PRACTICE EXAMPLE FROM THE REGION Support initiatives which create demand for eco-innovations through awareness raising and the use of creative instruments, including film and marketing Demonstrate the role of retailers, consumers and supply chains in stimulating demand for eco-innovation and of integrating the needs of end-consumers into product and service development for greater resources efficiency CBSS to provide a regional platform for implementation of the UN 10-year framework Programmes on Sustainable Consumption and Production Support for early innovation phases to enable SMEs to use external expertise from R&D institutes or consultancies Close the funding gaps by supporting eco-innovation during the pre-commercial development stage and promote public-private risk sharing Create a SME Sustainable Innovation Awards or Year of Eco-Innovation to showcase good practices example of sustainable innovations in the transnational context Ecoprint is reducing the ecological footprint Ecoprint is a small printing company in Estonia which has gained the trust of its customers through providing high quality service and at the same time doing business in a more sustainable way. Ecoprint has earned multiple green labels by using 100% natural printing inks, environmentally friendly printing paper and energy efficient technology solutions. Among their smart environmental solutions they are using rainwater to control humidity inside their printing factory, windmills for generating electricity and solar collectors which utilize a pre-heater for their warm water supply. They even have an advanced ventilation system which is able to reutilize the residual heat created within the factory and distribute this to the rest of the building. For SMEs, such as Ecoprint, eco-innovations create competitive advantages and new business opportunities while at the same time reducing negative environmental impact

10 CORPORATE SOCIAL RESPONSIBILITY & PUBLIC PRIVATE PARTNERSHIPS Business impact on society and environment can be improved through Corporate Social Responsibility (CSR). Fostering CSR activities among SMEs can contribute to more competitive enterprises and the development of more sustainable business models, as well as numerous advantages in terms of staff retention and motivation, in addition to reduced energy costs. CBSS is currently involved in new project developments concerning CSR and SMEs in the Baltic Sea Region. In the Vilnius Declaration from the 8th Baltic Sea States Summit in 2011 specific emphasis was put on ensuring the development of Public Private Partnerships for sustainability. POLICY RECOMMENDATIONS: Promote already existing national on-line CSR toolkits to provide SMEs with concrete guidelines and tools on how to implement CSR into their business activities Set up a CSR Network that includes national CSR focal points and representatives from SMEs as well as the establishment of a mentoring programme to support training and peer review opportunities Call for the integration of sustainable development and entrepreneurship as a part of schools and university curricula to encourage entrepreneurs-tobe to elaborate green innovative business ideas and foster cross- sectoral thinking Develop a Green Economy toolbox and good practice guide covering actions, instruments, indicators, case studies and policies regarding the low carbon, resource efficient and socially inclusive use of renewable energy sources Ensure newly established CBSS Public Private Partnership Networks share knowledge and disperse information on good practices to public private partnerships in sustainability BEST PRACTICE EXAMPLE FROM THE REGION Navigating towards sustainability with the CSR compass CSR Compass is an online tool for small and medium-sized companies to help them implement responsible supply chain management and to comply with expectations from governments, industry and NGOs. The tool provides good advice, case studies, templates, useful links and so forth. The tool was originally developed by the Danish Ministry of Business and Growth and the Confederation of Danish Industry. Several Nordic actors were involved in the revision of CSR Compass and provided input to the tool content and form. Analogues to Danish CSR Compass were developed in Sweden, Iceland, Norway and Finland, involving a great number of partners at governmental level, business associations and others

11 SUSTAINABLE ENERGY Investing in energy efficiency not only benefits the environment and climate, it is increasingly paying off economically as well. In addition, energy efficiency, such as in the building sector, can create jobs for very many people with a wide range of qualifications and also improves the living conditions for all. Moreover, the Baltic Sea Region has a great potential for a sustainable production and utilization of bioenergy. Sustainable bioenergy production can stimulate positive developments, both in terms of the economy as well as socially, whilst at the same time ensuring healthy ecosystems. Within CBSS it is the Baltic Sea Region Energy Cooperation which is leading the work on energy, however, the Baltic 21 Lighthouse Projects Baltic Sea Region Bioenergy Promotion and EcoRegion have both addressed sustainable energy as a key factor for Sustainable Development and Green Economy in the region. POLICY RECOMMENDATIONS: Encourage energy utilities to develop voluntary sustainability schemes for the use of solid and gaseous biomass Increase support to the development of greener bioenergy products, services and technologies, through continued support for Research, Development, Demonstration and Innovation Facilitate grid transformation into a smart grid and improve transnational grid connections as well as supporting Research & Development (R&D) in order to address access to, and use of, smart grid functionality as well as large-scale electric energy storage Support energy-efficient technologies for residential, commercial, industrial and transport investments Shift to more sustainable modes of transportation by strengthening the role of public transport and to invest more into pedestrian and bicycle infrastructure Introduce incentives for reducing the use of fossil fuel in the transportation sector BEST PRACTICE EXAMPLE FROM THE REGION Forest farmers make sustainable and optimal use of biomass In Jämtland, in the North-Western part of Sweden, the entrepreneur and forest farmer Mikael Jonsson has developed sustainable activities which make optimal use of his forest resources. Mikael has begun to grow energy forests. Instead of thinning out or spraying the small birch trees with pesticides which ultimately destroy them he keeps and utilizes them for producing woodchips. Mikael uses these woodchips to heat his home as well as those of his neighbours. Then he delivers the tree tops and branches from his harvest which are of no alternative use for the conventional paper and lumber industry to his local district heating plant in Jämtland where they produce not only heat but also electricity for nearly residents of the town of Östersund. In doing so Mikael Jonsson supports the development of supplementing our energy needs

12 FILM CLIPS CLIMATE CHANGE Climate Change affects all of us! Become a low carbon and climate adapted region SUSTAINABLE CONSUMPTION AND PRODUCTION How can everyone on this planet survive with the resources available? Becoming a forerunner region in sustainable lifestyles and green economies Photo Gytaute Ak SUSTAINABLE URBAN AND RURAL DEVELOPMENT One of the key aspects for quality of life is well established urban-rural links Create a region of sustainable cities and towns in symbiosis with vibrant rural areas INNOVATION AND EDUCATION FOR SUSTAINABLE DEVELOPMENT For SMEs eco-innovations create competitive advantages and new business opportunities Become a leading region on education for sustainable development and eco-innovations

13 WE ARE BALTIC 21 A greenhouse for sustainable ideas. People have ideas. For sustainability. For social, environmental and economic change. We find and develop creative and practical solutions for sustainable development, facilitate them and make them grow. Baltic 21 works with all aspects of sustainable development. This means that we are not just targeting purely environmental issues, but also social and economic actions in an integrated way. CBSS Secretariat Slussplan 9 P.O. Box 2010 SE Stockholm Sweden Phone Fax baltic21@cbss.org Environment/baltic-21 cbss.baltic21 NORTHERN LIGHTS ON SUSTAINABLE DEVELOPMENT Good Practices & Policy Recommendations on Green Economy