EUROPEAN COMMISSION

DIRECTORATE-GENERAL FOR MARITIME AFFAIRS AND FISHERIES ATLANTIC, OUTERMOST REGIONS AND ARCTIC MARITIME POLICY ATLANTIC, OUTERMOST REGIONS AND ARCTIC

Blue Growth: sustainable growth from the oceans, seas and coasts Summary Report of the Online Public Consultation Results

1. Blue Growth
To make it through the crisis, Europe needs the contribution of all sectors of its economy. In this context, the marine and maritime sectors the 'blue economy' have an important role to play in the overall road to Europe's economic recovery. Marine and maritime activities, which provide work for 5.4 million people and account for a gross value added (GVA) of just under 500 billion per year, have a great potential and could make a major contribution to the objectives of the Europe 2020 strategy for smart, sustainable and inclusive growth. The Blue Growth initiative aims at highlighting economic opportunities in the blue economy, identifying sectors with the highest growth prospects and exploring further measures that need to be taken to support Member States to realise fully this potential. To draw a comprehensive picture of the marine and maritime economy in Europe and identify bottlenecks and opportunities for the future of maritime activities, a twenty month study was commissioned in 2010, building on desk research and interviews with relevant experts and economic operators. Three interim reports of the Blue Growth Study have been issued before the launching of the consultation, accompanied by separate sectoral analysis of maritime activities. The third interim report has been provided as background document to the consultation questionnaire. The final report of the study will be published in July. To get direct input from stakeholders that would feed in the Communication to be adopted in September 2012, an eight-week online public consultation was launched from 16th March to 11th May 2012. The extensive consultation (33 questions) was aimed at gathering the views of entities, individuals and key stakeholders that have an interest in and would like to shape EU actions vis--vis the marine and maritime sectors. 66 replies in total were received, with over a third from national and regional government institutions from all around Europe and 14% from private business. Most of the respondents claimed to have a very good knowledge of maritime affairs. The results of this public consultation will be taken into consideration in the formulation of the Blue Growth Communication.

2. The blue economy

Respondents are in general in favour of an initiative on Blue Growth, backing the idea of a specific marine and maritime industrial policy and supporting initiatives of the Integrated Maritime Policy, such as marine knowledge (seabed mapping) and a sea-basin approach. As a general comment, participants argue that the reduction of environmental impact and cooperation with neighbouring countries should be components of Blue Growth and IMP initiatives. Access to finance and support to Research, development and innovation are identified as major requirements for the development of the blue economy. To this end, respondents

recognise the value of Structural Funds and ask for a higher concentration of existing funds on marine and maritime projects. 90% of respondents agree with the definition of maritime economy: "The maritime economy consists of all the economic activities related to the oceans, seas and coasts. This includes the closest direct and indirect supporting activities necessary for the functioning of these economic sectors, which can be located anywhere, including in landlocked countries." 83% agree with the classification of maritime activities in three categories, as defined in the Blue Growth study (pre-development, emerging and mature sectors).

3. Framework conditions for sustainable growth

Respondents considered as most important the following framework conditions for the sustainable development of emerging maritime activities: research, development and innovation and access to finance. 3.1 Education, training, and skills Stakeholders regard the following as mostly effective remedies to skill shortages: better links between maritime training institutes and employers' expectations; the promotion of life-long learning; and the improvement of the European recognition of qualifications. The least effective is the improvement of gender equality in maritime sectors. Respondents also highlighted the need to address the attractiveness of the sea-related activities. As regards skills mismatches, respondents pointed to the necessity to cover the needs of the maritime industry; the marine workforce might require re-training since maritime education is too focused on past activities (e.g. fishing, shipping). As regards the identification of skills mismatches in respect of maritime economic activities, the percentage of 'no opinion' replies was too high to indicate any emerging trend. In terms of initiatives addressing skills, qualifications, and overall education and employment, respondents were mostly familiar with the Life Long Learning programme, Youth on the Move, Eures, and ESF training programmes. Two-thirds of the respondents are not aware of any specific initiatives and partnerships underway in Member States and regions to address these issues. 3.2 Access to finance 91% of respondents think it is necessary to create specific instruments and initiatives directed at emerging marine and maritime economic activities (such as ocean renewables, blue biotech and marine aquatic products). Reference was made to the urgent need to invest in R&D&I and adequate infrastructures for emerging sectors. The following actions were identified as mostly effective in facilitating the financing of innovative ideas: more focused use of existing EU funding for marine and maritime 3

projects; supporting infrastructures and the provision of business development services; and supporting access to finance for start-ups. 3.3 Research, development and innovation In order to bridge the knowledge-transfer gap in pre-development sectors, the following initiatives were deemed as being the most effective: i) For blue biotechnology and marine aquatic products: bridging gaps between science / industries and education; improved access to risk capital or loans for startup SMEs; and improved intellectual property management. ii) For ocean renewable energies: increased investments in demonstration projects to prove commercial feasibility; and large public-private partnership initiatives to gather the necessary critical mass. iii) For sea bed mining: large public-private partnership initiatives to gather the necessary critical mass to overcome technological obstacles and improved access to risk capital or loans for start-up SMEs. Some respondents mentioned the need for more dialogue between public and private sectors and universities, particularly as there is a lack of awareness in the research community about the knowledge gap the industry has to face. Several underlined that a key issue was the access to funding to overcome the knowledge-transfer gap. In order to bridge the knowledge-transfer gap in other growth sectors, the following initiatives were deemed as being the most effective: i) For offshore wind: large public-private partnership initiatives to gather the necessary critical mass; improved access to risk capital; and increased investment in demonstration projects to facilitate commercial growth. (Reference was also made to the need to encourage grids and interconnector technology and deep-water floating wind farms.) ii) For maritime monitoring and surveillance: bridging gaps between science/ industries and education; and improving intellectual property management. 3.4 Clusters and synergies In terms of achieving synergies between economic actors, respondents highlighted the following as the most relevant actions: strengthening European networks of maritime clusters, and case studies outlining integrated investment strategies for business cases. Moreover, maritime clusters can mainly push forward innovation and develop new business concepts. The promotion of maritime clusters could also address the fragmentation of the maritime economy, via cross-border cooperation and European projects.

3.5 Regulatory bottlenecks National (indicated by nearly half of the respondents) and European governance levels are identified as 'problematic' in terms of bottlenecks to sustainable growth. Regional and local levels, on the other hand, are not considered to be problematic in this respect. As examples of regulatory bottlenecks, respondents referred to the following: A complex and unstable legal framework: e.g. no regulatory certainty post-2020 for offshore wind; The lack of integrated maritime spatial planning: access to space and conflicts linked to space for aquaculture and offshore wind; barriers to the establishment and funding of pilot farms; increasing conflicts between maritime navigation and ocean renewable energy farms (tidal, wave, OTEC); Complex permit and licensing procedures: offshore wind, blue biotechnology; Gaps in EU regulation for some activities: exploitation of seabed marine resources, offshore aquaculture, offshore wind.

4. Sustainability environmental challenges and opportunities

The following marine and maritime economic activities were considered to have the highest risk in relation to sustainability: offshore oil and gas; fisheries; cruise and coastline tourism; seabed mining; carbon capture and storage; aggregates mining; yachting and marinas; deepsea and short-sea shipping. 75% of respondents think that there are specific opportunities arising from marine and maritime activities (such as the development of ocean renewable energy) that could enhance both the EU's security of energy supply and environmental protection. For 80% of respondents, policies should take into account the economic value of ecosystems (ecosystem services). Several respondents underlined the need to improve knowledge on marine ecosystems in order to precisely assess their economic value. Nearly half of the respondents are aware of specific environmental challenges which could be transformed into business and environmental opportunities. Potential synergies highlighted include: multi-purpose platforms for finfish aquaculture and offshore renewable energy; OTEC combined with provision of air conditioning and condensing water; wave energy combined with coastal protection; ocean renewable energy projects combined with management of biological marine resources; the extension of offshore monitoring/surveillance networks through the use of offshore platforms; and the development of aquaculture together with marine biotechnology. 92% of respondents believe that cooperation with non-EU neighbouring countries could contribute to addressing environmental challenges.

5. Integrated Maritime Policy focus

The vast majority of respondents consider it important that Member States cooperate with their neighbouring countries on the Integrated Maritime Policy cross-cutting tools (maritime spatial planning, marine knowledge, and the integration of maritime surveillance) in order to maximise the sustainable growth of marine and maritime economic activities. Enhanced coordination and simplified decision processes are considered as the most important economic effects (followed by enhanced legal certainty) resulting from Maritime Spatial Planning. This would provide greater predictability and transparency for investment, especially in projects in different Member States' territorial waters. 73.5% of respondents regard cooperation between Member States across borders on Maritime Spatial Planning issues as 'very important'. Seabed mapping is identified as 'crucially important' for the sustainable exploitation of marine resources by two thirds of respondents (and over a quarter regard it as 'relevant'). The benefits to the economy from the exchange of data and information through the integration of maritime surveillance across borders and sectors can be measured in terms of environmental and social issues through the use of statistics and analysis of factors related to the use of the seas. The benefits of improved maritime awareness, safety and border control could be measured through the reduction of risk management costs, insurance premium rates for short-sea shipping and deep-sea shipping. 83% of respondents think further development of the sea-basin approach, including cooperation with non-EU neighbouring countries, would benefit the maritime economy. A sea basin approach would support marine and maritime activities and help to establish common standards for sustainable economic growth, which in turn would contribute to building a critical mass. The most relevant instruments to improve the effectiveness of sea basin strategies are the following: regional fora bringing together public authorities, private companies, NGOs and Regional Seas Conventions; and sea basin specific study work on future maritime economic activities. 83% of respondents think the EU Integrated Maritime Policy should give special attention to the sustainable development of emerging maritime activities. In this context, reference was made to the development ocean energy, offshore wind and grid infrastructure, greening aquaculture, and lowering the environmental impact of short-sea shipping. 76.5% of respondents believe a specific marine and maritime industrial policy is needed. Among other issues mentioned by respondents, such a policy would: o Provide a vision for the long term future, measurable aims and a clear and stable regulatory framework o Increase visibility of maritime activities and attract finance, skills and entrepreneurship 6

o Remove bottlenecks at national level o Ensure the integration of environmental protection and sustainability issues. ---------