The Baltic Sea: A shared responsibility

Marco Francini
Head of Office for the Baltics
EIB
Vilnius, Lithuania

Rasmus Lauridsen
Head of Office for Denmark
EIB
Copenhagen, Denmark

Jaani Pietikäinen
Head of Office for Finland
EIB
Helsinki, Finland

Liisa Raasakka
Head of Office for Sweden
EIB
Stockholm, Sweden

The Baltic Sea is an inland sea shared by various EU and Nordic countries. As the EU climate bank, the European Investment Bank is therefore fully committed to supporting environmental and blue economy initiatives in the region to meet the challenges of the green transition and climate change.

Climate change and the green transition are high on the political agenda of all democratic nations around the Baltic Sea. We have eight years left to meet the United Nations Sustainable Development Goals. Meanwhile, to meet the goals of the Paris Agreement, we must get to net zero by 2050, with a 50% reduction in emissions by 2030. The urgency of meeting these targets cannot be overemphasised. How can we balance this with the need to maintain a long-term strategic focus on meeting the Sustainable Development Goals? Financial markets and institutions can and should play an important role in driving investment for a healthy Baltic Sea and a sustainable blue economy. As the EU climate bank, the EIB is addressing the threats to marine and coastal ecosystems through its ambitious target to devote 50% of its financing to climate action and environmental sustainability.

Specifically, the EIB is contributing to the Baltic Sea’s well-being through the EU Strategy for the Baltic Sea Region (EUSBSR) and the related blue economy agenda through lending, advisory services and key partnerships that support the European Green Deal in many different projects. Below are a few examples of projects that the EIB has supported for a better, shared future in the region.

In the field of wastewater management, the EIB has supported major projects in Sweden, Latvia and Lithuania, to name but a few. In 2021, the EIB granted a €97 million loan to upgrade the Käppala wastewater treatment plant in the Stockholm archipelago. The upgrade will enable the facility to deal with wastewater from up to 900 000 people in the Stockholm region, which is expected to have a clear, positive impact on the environment and water quality in the Baltic Sea.

In 2021, the EIB provided a loan facility of up to €50 million to Vilniaus Vandenys to improve two wastewater treatment plants and rehabilitate the water collection and distribution networks in the Vilnius metropolitan area. This has had a positive impact on residents in the area by reducing water pollution.

Likewise, this year the EIB financed the modernisation of the water management infrastructure in Latvia’s capital Riga by providing a €60 million loan to SIA Rīgas ūdens. The investment loan will have significant environmental benefits through the reduction of groundwater and surface water pollution, and increased energy efficiency.

What do these water management projects in major Baltic Sea cities all have in common? A lot of investment goes into maintaining everyday drinking and wastewater infrastructure. The projects’ local positive effects are expected to have a positive knock-on impact on the environment in the entire Baltic Sea region. The key driver for these EIB investment projects is to ensure cost-efficient, continuous and safe water treatment and supply, as well as sewage collection and treatment, in accordance with the EIB’s climate bank policy. The EIB has stepped up its support for major sustainable projects, where a huge need for investments in infrastructure exists.

At a global level, the EIB’s support centres around its EIB Clean and Sustainable Oceans Programme, including the Blue Sustainable Ocean Strategy, which supports sustainable ocean-based projects in four sectors: green maritime transport, sustainable seafood production, sustainable coastal protection, and ecosystem preservation. Over the last five years, the EIB has provided over €50 million in funding for sustainable seafood production in the European Union, including fisheries and aquaculture. In Finland, for example, we allocated €5 million in 2020 towards a €34 million sustainable aquaculture project that cleans and recirculates used water in a loop system.

Projects in the Baltic region supported by the EIB cover many sectors. These range from transport infrastructure and renewable energy to waste and drinking water management, as well as road projects. For example, in Estonia we have signed a €100 million loan with the city of Tallinn to support its sustainable urban renewal and development programme by upgrading public buildings, urban mobility, public spaces, green areas and municipal infrastructure. Another example is that in 2019, the EIB lent €70 million to support the construction of a new ferry between Vaasa in Finland and Umeå in Sweden.

Energy challenges

The current geopolitical tensions arising from Russia’s invasion of Ukraine have put the European Union’s green transition plans in the spotlight. The climate crisis and the dependence on untrustworthy partners for our energy needs hasten the need for decarbonisation and highlight its strategic importance. The EIB has contributed to many important flagship ocean-based renewable energy projects. This is a key sector of the EIB’s lending to the blue economy and contributes to reducing greenhouse gas emissions. Since 2003, the EIB has financed 31 offshore wind projects in Europe for a total amount of more than €10 billion. The EIB is also committed to financing the next major innovation in the sector — floating offshore wind energy. Our support for this technology includes a loan of up to €475 million for Danish Vestas Wind to support the development of low-carbon technology, products, and energy efficiency.

Intensified cooperation between national, regional, Nordic and EU institutions is vital.

The EIB acknowledges the need to scale up existing projects and green investments in the Baltic Sea region to facilitate the climate transition, for energy independence and strategic autonomy, and for the well-being of the Baltic Sea. Therefore, we look forward to increased cooperation with other international entities such as the Nordic Investment Bank, governments, banks and other private investors. The Baltic Sea is a matter of common interest for us all.

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