Åkerholm comments competitiveness of the Baltic Sea Region
NIB President Johnny Åkerholm:
Energy, environment, infrastructure and innovation key for the competitiveness of the Baltic Sea Region
The President and CEO of the Nordic Investment Bank (NIB), Johnny Åkerholm, commented on the State of the Region Report at the Tallinn Summit of the Baltic Development Forum on 5 November.
“One of the key messages of the report is that companies are only starting to experience the Baltic Sea region as an integrated geography. Furthermore, it is stated that the separation into small national markets has so far limited the ability of companies to fully exploit the qualities of the region.”
“The Nordic Investment Bank has throughout its existence been working for the integration of the economies of its members countries and, in a wider context, the whole Baltic Sea Region. In its most recent business plan, NIB has identified four key focus areas for regional cooperation with the aim of enhancing competitiveness and supporting the environment in the Baltic Sea Region. These are energy, the environment, infrastructure (transport) and innovation.”
“In our first focus area, the energy sector, we can see that the demand for energy is growing. However, the increased demand has not been matched by the growth in supply capacity as there is a backlog of investments. To some extent, this can be balanced with further regional integration through improved transmission interfaces and this trend is accelerating. In this way, the Baltic Sea Region is turning into a single regional electricity market supported by EU policy and security-of-supply targets. Countries face similar challenges: access to energy at competitive price levels is important for competitiveness. Investment will be needed in generation, transmission and distribution assets. In addition, we need to secure the cost-effective supply and distribution of hydrocarbons, i.e. oil and gas.”
“Second, as regards the environment, we know that the Baltic Sea is the most polluted sea in the world. In spite of actions over the last ten years, the state of the Sea has continued to decline, as discharges have remained at an unsustainable level. Another major concern is the effect of climate change on the region’s and in particular the Arctic environment. Therefore the environment creates a natural push for regional cooperation and investment.”
“In our third focus area, infrastructure, we see that transport volumes are steadily growing. For the years 2007-2013 only the estimated government-funded transport infrastructure investments exceed EUR 95 billion in the Baltic Sea Region. In addition, there are private and/or municipal investments in e.g. ports and airports. Also here, member countries have common interests: The Baltic Sea Region is located at the northern periphery of Europe and effective transport and logistics corridors and networks, both within the region and as a link to other markets, form the cornerstone of trade and competitiveness.”
“The report also deals with innovation; one of its key conclusions is that talents matter. The Baltic Sea Region has to keep its capacity to innovate. The area has been strong in high-tech and knowledge-intensive industries but we need to secure the fostering of talent and the formation of new businesses to maintain our position.”