Table of Contents

Introduction.. 3

1....... BLUE GROWTH.. 7

1.1. Blue technologies. 10

1.2. Fisheries and aquaculture. 13

1.3. Maritime and marine governance and services. 19

2....... CONNECTING THE REGION.. 22

2.1. Maritime transport 26

2.2. Intermodal connections to the hinterland. 30

2.3. Energy networks. 34

3....... Environmental Quality.. 37

3.1. The marine environment 40

3.2. Transnational terrestrial habitats and biodiversity. 48

4....... Sustainable tourism... 51

4.1. Diversified tourism offer (products and services) 53

4.2. Sustainable and responsible tourism management (innovation and quality) 59

5....... Funding.. 64

6....... Monitoring, reporting and evaluation.. 66

ANNEX I Role of the European Investment Bank (EIB) in the EU Strategy for the Adriatic and Ionian Region.. 68

Introduction

The ‘EU Strategy for the Adriatic-Ionian Region’ is described in two documents: (1) a Communication from the European Commission to the other EU Institutions, and (2) an accompanying Action Plan which complements the Communication.

The Action Plan is one of the outputs of the Strategy approach. Its aim is to go from ‘words to actions’ by identifying the concrete priorities for the macro-region. Once an action or project is selected, it should be implemented by the countries and stakeholders concerned.

The Action Plan is informed by an extensive, bottom-up consultation process that involved a wide range of stakeholders from the Adriatic-Ionian Region representing national, regional and local authorities, but also the private sector, academia and civil society. This approach allowed stakeholders at all levels to comment on and to endorse the selected four pillars as well as to point to actions/projects under each pillar that appeared promising for responding to challenges and opportunities shared by participating countries. The Action Plan is conceived to be rolling. This means that new actions may be added as needs change over time while existing actions are adapted as they move closer to completion.

While implementation of the Action Plan is the responsibility of all, at country, regional, and local/municipal level, within each participating country, the Strategy's coordination mechanism will be in charge of coordinating and monitoring this implementation. For each pillar, this mechanism should be made up by two coordinators from relevant line ministries and representing two countries (one EU and one non-EU), working closely with counterparts in the Region, in consultation with the Commission, relevant EU agencies and regional bodies. This involves securing agreement on a plan associated to a timetable, and ensuring close contacts between project promoters, programmes and funding sources. It also involves providing technical assistance and advice as required. This work must be transnational, inter-sector and inter-institutional. It will be eligible for institutional and administrative support from the 2014-2020 Adriatic-Ionian transnational cooperation programme.

It is crucial to ensure that sufficient information and outreach be issued about the Action Plan so as to make it widely known among all types of stakeholders.

Organisation of the Action Plan

The Action Plan is structured so as to reflect the four pillars as well as the topics selected under each pillar. Accordingly, the Action Plan incorporates the following features:

- Pillars: These address the core challenges and opportunities identified as being of central importance for the Adriatic-Ionian Region. They are at the core of the Strategy and are essential to the success of its work, and how it is communicated.

- Topics under each pillar: These represent the main areas where the macro-regional strategy can contribute to improvements (either through tackling the main challenges or through seizing the main opportunities). For each topic, the Action Plan will present the issue and indicate what particular contribution it will bring. Examples: To support competitiveness of enterprises, etc. Each topic has to be considered with other policy fields. The Strategy encourages a horizontal approach highlighting interdependence between its four pillars. For example, climate change mitigation and adaptation as well as transition to a low-carbon economy have an impact on transport, energy, tourism, and other policies whilst the latter also have an impact on climate change. Accordingly, for each topic, involvement of bodies and institutions representing other policy fields is required.

- Actions: An action is the intervention which countries and stakeholders carry out in order to address the different topics. It can be a new approach, an increased coordination in policy making, policy review, support to a process already engaged, a networking initiative, etc. An action may not necessarily require financing. All actions should be understood without prejudice to existing EU competences and requirements of the EU acquis. Examples: New approach: “To legislate at the appropriate level to tackle the problem of by-catch in fisheries”; - Increased coordination in policy making: “To develop a joint position of the Region regarding changes which could be introduced in the framework of the TEN-E"; Support to a process already engaged: “To implement fully commitments under the Adriatic-Ionian Initiative”.

- Projects: The Action Plan is not meant to list specific projects. It is meant to outline the scope of the Strategy (the pillars) as well as the topics (per pillar) on which cooperation should focus. Projects are presented by way of examples to stimulate further initiatives, as the Strategy progresses and as new ideas emerge, and to illustrate what is needed. These examples are drawn from reports pertaining to each pillar as well as from inputs made during the stakeholder consultation and its closing conference which took place in Athens 6th and 7th of February 2014. As far as Blue Growth is concerned, the examples offered are also drawn from a study commissioned by the Commission to support the elaboration of the Adriatic and Ionian Maritime Action Plan. Examples: “To establish a macro-regional platform for the monitoring and observation of fishing activities“; “To improve connectivity between ports and their hinterlands: linking freight railways to important ports", etc. Concrete projects to be implemented have to be identified by the coordination mechanism of the Strategy. As a general rule, each project would have a lead organisation/country and a deadline.

When identifying actions and projects to be included in the Action Plan, the following criteria shall be taken into account:

· They should address identified priorities, meeting well-substantiated needs and be widely supported. The need for the action or project concerned should have been clearly expressed by countries, regions and stakeholders or Commission’s services. The proposals should have been thoroughly discussed with these partners since their support is crucial during the implementation phase. Generally speaking, actions and projects should reinforce existing EU policies such as: Europe 2020, Territorial Cohesion, Trans-European Networks (transport and energy), the Energy and the future Transport Communities[1], disaster risk management policy; or implementation of EU strategies such as the strategies on Biodiversity[2] and on Adaptation to Climate Change[3], both of which encourage the development of (macro) regional strategies, as well as relevant EU Directives[4]. Finally they should also associate, as appropriate, transnational initiatives of relevance for the macro-region, such as the Adriatic-Ionian Initiative, the Regional Cooperation Council, or the Barcelona Convention for the Protection of the Marine Environment and the Coastal Region of the Mediterranean.

· Their scope or impact should be transnational, if not macro-regional. Most actions and projects having an impact at the macro-regional scale will involve several countries who wish to cooperate and coordinate their efforts. If, however, a national/regional project has a direct impact on (i.e. is for the benefit of) the macro-region (e.g. the construction of a waste water treatment plant that improves the water quality of rivers or extension of a port to buttress a macro-regional transport networks), it could also be included. The impact should ideally be articulated in terms of an impact indicator which could be evaluated over time. Consideration should be given to the data which will need to be gathered in order to evaluate the impact (including definition of the baseline situation). To contribute to this end, an inventory of data already available, including their quality, should be established. Actions and projects spanning national boundaries with a view to implementing the Strategy should furthermore complement each other.

· They should be realistic and credible. Projects should be feasible (technically and financially) and there should be overall agreement between countries, stakeholders and the Commission of their worth. In particular, the feasibility and cost-effectiveness of a project should be established and a realistic source of funding should be identified. Confirming the consistency of a project with the Action Plan does not per se guarantee funding,

· They should build on existing initiatives and have reached a fair degree of maturity.

· They should pay attention to the cross-cutting aspects identified in the Communication, further developed in this Action Plan.

· They should be coherent and mutually supportive. While mainly relating to one particular pillar, each action or project must take fully into account possible impacts on actions and projects carried out under other pillars. Actions and projects undertaken under the different pillars must thus be compatible with each other and create win-win solutions. For example, transport projects or energy efficiency initiatives should not jeopardise achievement of environmental targets, such as air quality, and should preferably contribute to achieving such targets.

Reference to EU policies is systematically made for each pillar and efforts were made to link actions and projects to existing EU programmes. The targets included in the Action Plan are set by way of examples. They will serve as a source of inspiration for the bodies in charge of turning the Action Plan as it now stands into a concrete tool for implementing the Strategy. This work will include development of result indicators and precise targets, systematically matching the actions or projects that will eventually be selected.

In an initial phase, the Action Plan will concentrate on "low hanging fruits", that is to say projects emanating from existing initiatives and having reached a fair degree of maturity.

1. Blue Growth

Coordinators: Greece and Montenegro

The overall objective of Pillar 1 “Blue Growth” is about driving innovative maritime and marine growth in the Adriatic-Ionian Region by promoting sustainable economic growth and jobs as well as business opportunities in the blue economy sectors.

This requires building on the regional diversity in the Adriatic-Ionian Region, and taking into account that there are various pathways to innovative maritime and marine growth. At the same time a number of challenges and development opportunities need to be approached through cooperation among the countries, regions and cities.

The specific objectives for this pillar are:

1. To promote research, innovation and business opportunities in blue economy sectors, by facilitating the brain circulation between research and business communities and increasing their networking and clustering capacity.

2. To adapt to sustainable seafood production and consumption, by developing common standards and approaches for strengthening these two sectors and providing a level playing field in the macro-region.

3. To improve sea basin governance, by enhancing administrative and institutional capacities in the area of maritime governance and services.

To achieve the abovementioned objectives Pillar 1 will focus on three topics:

Topic 1 - Blue technologies

Topic 2 - Fisheries and aquaculture

Topic 3 - Maritime and marine governance and services

This pillar strongly supports the Europe 2020 Strategy:

· Smart growth. Strengthened blue technologies, as well as improvements in the sectors of fisheries and aquaculture contribute to smart growth in the Region. Actions in this area will have to build on the smart specialisation strategies being developed at regional and national levels. The work under this pillar aims also at contributing to the smart growth dimension outlined in the South East Europe 2020 Strategy. Particular focus is on developing human capital (skills, and administrative and institutional capacity), promoting entrepreneurship, networks of excellence, cooperation between research and public and private sectors, as well as users, to develop innovative products and services and technology transfer.

· Sustainable growth. Improved maritime governance and services, notably through Maritime Spatial Planning and enhanced management in the fields of fisheries and aquaculture, can contribute a more sustainable use of existing natural resources and thus to sustainable growth. Furthermore, innovations in the sectors of fisheries, aquaculture and blue technologies have potential for supporting sustainable growth by mitigating environmental risk and by cutting emissions from vessels at sea and in ports. The work under this pillar may also contribute to the sustainable growth dimensions outlined in the South East Europe 2020 Strategy, mainly with regard competitiveness. Particular focus is on making sustainable use of natural resources, reducing environmental risk, and on enhancing GDP growth through enhancing regional value chains and coordinating policies.

· Inclusive growth. Developments in the field of Blue Growth can create new jobs. Paying more attention to job opportunities in the maritime and marine sector and improving skills and capacities in these fields can be an asset for inclusive growth. The work under this pillar may also contribute to the inclusive growth dimensions outlined in the South East Europe 2020 Strategy, mainly with regard to employment and labour mobility.

Inclusive growth is also about integrated growth in South East Europe. The work under Pillar 1 will contribute to the objective of integrated growth by removing barriers to trade and investment, and by promoting policies which are non-discriminatory, transparent and predictable and which can therefore enhance the flow of goods, investment, services and people within the Region. A clear territorial perspective in relation to this growth will increase territorial cohesion.

· Blue Growth. In addition to the standard objectives of Europe 2020, the actions carried out under this pillar will contribute to growth, mainly in the field of blue technology but also with regard to strengthening the aquaculture sector.

Blue Growth is the overarching objective of an EU initiative published in 2012. It is the maritime dimension of Europe 2020. The concept is connected to the Europe 2020 objectives of smart, sustainable and inclusive growth and aims at unlocking the untapped potential of Europe’s seas and coastal areas. The Blue Growth Strategy seeks to foster growth and job creation by capitalising upon the so-called blue economy. Its main focus is on blue energy, aquaculture, maritime, coastal and cruise tourism, marine mineral resources and blue biotechnology.

· Governance for growth. The South East Europe 2020 Strategy follows the objective of governance for growth, including compliance with EU regulations underlining that institutions contribute significantly to development and growth. Actions in the topic of “maritime and marine governance and services” can contribute to strengthening effective public services and EU compliance throughout the Region, including the work towards common standards in the fields of fisheries, aquaculture, maritime spatial planning and integrated coastal management.

Links with other pillars

In line with the integrated approach recommended by the Strategy, the three topics under Blue Growth must be brought together with objectives pursued under the other pillars. For example, while strengthening innovative marine and maritime growth has a positive impact on business development, it also improves environmental conditions (Pillar 3 – Environmental quality) through better coordinated and more sustainable use of marine and maritime resources. In this regard, marine biodiversity will be preserved by improving fisheries and aquaculture management and sustainability. Furthermore, this improves the tourist attractiveness of an area and stimulates cooperation between fisheries and tourism activities (Pillar 4 – Sustainable tourism). At the same time, increasing business activities will be closely linked to available transport connections for delivery of goods (Pillar 2 – Connecting the Region).

Cross-cutting issues

Regarding ”capacity building”, the actions under the third topic of this pillar, “maritime and marine governance and services”, will increase the capacity of the public sector in the countries involved - in particular with regard to enhancing administrative and institutional capacities and to promoting EU integration. Enhanced cooperation and sharing of best practices between countries in the Region (as well as outside the Region) will be promoted. Focus is on coordination of planning activities needed for better marine and maritime governance and services. Furthermore, actions under the second topic “fisheries and aquaculture” require strengthening capacity in the Region with regard to management, surveillance, monitoring and skills. This will improve strategic decision-making related to Blue Growth.

A communication dimension is also central for actions involving stakeholder participation, marketing and awareness raising actions. Such actions contribute to the global objective of EU integration as well as interaction with citizens and businesses.

Regarding “research, innovation and SMEs development”, actions under the first topic “blue technology” and the second topic “fisheries and aquaculture” both have a strong focus on research and innovation. This involves using the latest research for developing commercial products and internationalising clusters. Actions may thus help transfer the latest R&D results to seafood processing and new products, helping SMEs develop in the sectors concerned. There is a strong focus on “brain circulation” (mobility of researchers, also between academia and private sector) and on establishment of joint research and innovation platforms in the Region.

1.1. Blue technologies

Presentation of the issue

The Adriatic and Ionian Region is short on clustering and fails to fully exploit the advantages that could be gained from better cooperation between research centres and the public and private sectors. There is an insufficient “business resource efficient culture” in the Region resulting from weak involvement of stakeholders and interrelation of business, research and the public sector. Some key sectors, such as shipbuilding, the boating industry and logistics, risk losing competitive leverage while others, such as marine technologies or blue bio-technologies, have not yet developed to their full potential.

To maximise sustainable economic growth and employment as well as business creation based on blue technologies, brain circulation between research and business communities must be enhanced, their capacity to network and cooperate increased, and access to seed and venture capital improved.

Adriatic-Ionian Region specifics

In geographical terms, the topic affects all the countries in the sea-basin. However, non-EU countries have great potential in terms of blue R&D&I, often limited by outdated technologies, lack of support schemes and of planning and financial resources. Projects in this respect are mainly carried out under the umbrella of the 7th Framework Programme and the European Territorial Cooperation programmes. Research networks on which actions can build already exist, e.g. under the framework of UNIADRION[5]. The actions suggested below reflect environmental and economic challenges specific to the Adriatic-Ionian sea basin.

Indicative actions

Ø Action - R&D&I platforms on green sea mobility, deep sea resources, biosecurity and bio-technologies: to boost blue technologies in the Region, there is a need to develop macro-regional research & development & innovation platforms on selected themes of relevance. The most promising themes are green sea mobility, deep sea resources (including the development of unmanned marine vehicles), bio-security and blue bio-technologies.

Ø Action - Macro-regional cluster development: to support the establishment of trans-boundary clusters on promising sectors such as green shipbuilding and new materials in order to enhance exploitation of emerging technologies and internationalisation of Small and Medium Enterprises.

Ø Action - Researchers mobility: to promote “brain circulation” amongst research institutes/academies and companies as a condition for developing macro-regional cooperation in the field of blue technologies.

Ø Action - Improving access to finance and promoting start-ups: boosting blue technologies requires financial resources. Improving access to funding and promoting start-ups for development and testing prototypes or ideas is crucial, as well as supporting business spin-offs from scientific research.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors, and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

R&D&I platforms on green sea mobility, deep sea resources, biosecurity and bio-technologies || Research institutes, businesses, national/ regional authorities || · “Deep sea observation network”[6]: to map and monitor the seabed and analyse potential deep sea resources which can contribute to strengthening economic activities in the blue sector. · “Research platform marine robotics” e.g. to strengthen unmanned marine vehicles for underwater and seabed operations based on existing cooperation between Italian and Croatian research institutes, and the capacities of Greek companies and other stakeholders in the Region. This could also involve develop into platforms for macro-regional quadruple helix networks linking research, business, public sector stakeholders and the civil society. · “Research platform for green shipping” to develop new materials, sensor technologies shore-based supply of electricity for vessels in ports and to innovative propulsion modes and fuels (switch from diesel to Liquid Natural Gas and electric vessels). · “Research platform on the exploitation of micro-organisms” growing in the Adriatic and Ionian seas for the production of pharmaceuticals and cosmetic products.

Macro-regional cluster development || Advanced training institutes, public admin., research institutes and businesses || · “Green shipbuilding clusters in the Adriatic and Ionian Seas” to support the establishment of trans-boundary clusters on green shipbuilding and new materials. This strengthening of the internationalisation of clusters could e.g. build on cooperation taking place between stakeholders in Italy and Montenegro, and also involve stakeholders in Slovenia (where technological capacity is available) and Croatia (where technological capacity is under development).

Researchers mobility || Advanced training institutes, public admin., research institutes and businesses || · “Blue technology ‘brain circulation’ in the Adriatic and Ionian Region” to support researcher mobility in the areas of blue technology and build on the experience of UNIADRION. This may also involve the development of a “cloud environment”, for facilitating the matching between researchers and institutes and companies, and for setting up a scheme for supporting researcher mobility.

Improving access to finance and promoting start-ups || Financial institutions, research institutes (nat. and internat.), private operators, national/ regional authorities || · “Adriatic-Ionian Blue Financing” could be a macro-regional project exploring innovative financial and incentives instruments to facilitate the access to seed and venture capital, such as blending mechanisms, Adriatic-Ionian Blue prize, crowd-funding, etc. This could also be linked to instruments of the EIB and EIF or other international funding bodies.

Examples of targets by 2020

Concrete outputs and results are mainly to be found in the field of increased networking between researchers and clusters linked to the fields of blue technology within the macro-region. Accordingly, the number of newly-established research networks, or clusters involving more than two participant countries, but also joint research papers, or the number of researchers exchanged could be a starting point for the definition of result indicators. These results can be expected to pave the way for increased cooperation on a long-term basis and for internationalisation of research activities and clusters. Possible points of departure for related result indicators may be the number of R&D&I platforms established, as well as the number of clusters with enlarged international cooperation.

As an example, the following target could be mentioned:

20 % increase - as compared to the base line situation - in R&D&I investment in the blue technology domain by 2020

1.2. Fisheries and aquaculture

Presentation of the issue

Fisheries and aquaculture are important sectors for Blue Growth in the Adriatic-Ionian Region. In particular, the social, cultural and economic contribution of fisheries is crucial at local and regional level, especially on islands and in remote regions.

Fisheries

The Strategy aims at long-term sustainable and responsible fisheries so that fishing activities can continue to provide income for coastal communities. For this, the following points are of particular importance:

· Effective implementation of the principles of the Common Fisheries Policy (CFP): The CFP advocates the promotion of a bottom -up approach to fisheries management with a view to achieving fishing levels at or below the ‘Maximum Sustainable Yield’. Common principles and tools for Marine Protected Areas of fishery interest, including the adoption of measures for the protection of sensitive habitats and certain threatened species (e.g. sea turtles, dolphins), would also be beneficial.

· Market intelligence and services: Such services ensure better traceability and marketing of products. These services should build on existing cooperation among administrative bodies and producer organisations in Croatia, Italy and Slovenia and extended to the other Adriatic-Ionian countries.

· Sustainable fishery management: Multiannual fishery management plans are important tools for strengthening sustainable management of fisheries, to be implemented in close cooperation at national or international level. Data collection is essential to designing management actions and proper control is critical to their implementation.

· Control, monitoring and surveillance: The culture of compliance, transfer and share of data and information need to improve, based on the exchange of expertise and best practices and further development of common operational initiatives. Upgrading of all operational tools (systems, equipment and other resources) should also be promoted.

Aquaculture

The development of a strong, high-quality aquaculture sector that is economically sustainable and environmentally-friendly, contributes to job creation and to supply of healthy food products, respecting the EU and international rules. However, a number of barriers prevent aquaculture in the Adriatic-Ionian sea basin from developing its full potential: lack of a clear and harmonised policy with respect to access to space and licensing; industry fragmentation; limited access to seed capital or loans for innovation; time-consuming administrative procedures and red tape.

Respecting subsidiarity, the Common Fisheries Policy reform proposes to promote aquaculture through a coordinated approach, based on non-binding strategic guidelines and common priorities and exchange of best practices through the open method of coordination.

Adriatic-Ionian Region specifics

Fisheries

This topic is specific to both the Adriatic and Ionian Seas albeit with a differentiated degree of overexploitation[7]. Fishery activities are predominantly small-scale. About 80% of commercial fishing vessels are below 15 meters long[8]. The fishery sector faces various challenges linked to global competitiveness and market forces, as well as to environmental objectives concerning the conservation of fish stocks. Many stocks are shared and overexploited. The culture of compliance, and the monitoring, control and surveillance capacity are still weak in many Adriatic-Ionian countries. Risk of depletion of marine resources is a recognised issue. Out of approx. 450 fish species in the sea basin, 120 are threatened by overexploitation[9].

Sustainable use of resources and integrated control of fisheries are critical for the entire Adriatic-Ionian Region, and deployment of the necessary capacities is essential. Building capacity to comply with the EU acquis on fisheries is essential for long-term sustainability.

This notwithstanding, all countries in the area (barring Bosnia and Herzegovina and the landlocked Serbia) have implemented or have been involved in specific cooperation projects aiming at increasing the profitability of fishery activities. Better cooperation across the Adriatic-Ionian sea basin should trigger a virtuous process of increasing the competitiveness of the coastal communities depending on fisheries and of widening stakeholders’ involvement. The benefits of combining fisheries with tourism activity (Pillar 4) should be exploited.

Cooperation on scientific issues and fisheries management already takes place within the multilateral framework of the General Fisheries Commission for the Mediterranean and FAO regional projects (ADRIAMED and EASTMED). Building on this experience, further scientific cooperation between the Region's countries could be promoted to link scientific research to the needs of fisheries and aquaculture.

Aquaculture

Aquaculture is a key sector in the blue economy of countries like Italy, Croatia and Greece. There is significant potential for increasing capacity, and thereby reducing EU dependency on imports, and for decreasing the pressure on wild stocks, provided this is done in a sustainable manner. This activity is one of the most promising in the seven coastal countries of the macro-region and can play a pivotal role in the entire area.

Sustainable and profitable aquaculture requires strengthened stakeholder involvement in the overall management, simplified procedures, as well as improved skills and product diversification. Development of new sites needs proper space and planning, in coordination with other activities (including co-location). Balancing of the costs/benefits of fisheries/aquaculture is required, notably in relation to tourism, as there tends to be a trade-off between the use of marine space for aquaculture and tourism and vessel traffic. This already happens in Slovenia and in some Italian regions (especially on the North-Adriatic shore), where aquaculture is linked to conservation of habitats and ecosystem services, as well as to tourism. However, this also implies developing tools for proper site management, environmental monitoring and improving quality schemes.

Indicative actions

Ø Action - Scientific cooperation on fisheries and fish stocks: Supporting regular assessment of shared fish stocks in the Adriatic and Ionian Seas and evaluating main elements for sustainable management of fisheries are important for strategic decisions in the sector. These assessments require increasing scientific cooperation and capacities. Existing frameworks of cooperation[10] should be more extensively used.

Ø Action - Sustainable management of fisheries: Multiannual fishery management plans are crucial for sustainable fisheries. In order to become useful and powerful instruments, these plans should be combined with economic impact assessment and established in close cooperation between the different areas at national or international level.

Ø Action - EU compliance and common standards and practices: In the fields of both fisheries and aquaculture, efforts are needed to develop and apply common standards and practices. Compliance with the EU acquis in these sectors and alignment to common standards are needed for sustainable fishery management and sustainable aquaculture, as well as for implementation of the Common Fisheries Policy. Establishment of thematic EU compliance networks may help to increase awareness among fishermen and public authorities, as well as sharing of data, exchange of experiences and best practice, and capacity building.

Ø Action - Diversification and profitability of fisheries and aquaculture: Sustainable and profitable fisheries and aquaculture require strengthened stakeholder involvement in the overall management, as well as improved and diversified activities. With regard to aquaculture, this may also imply developing tools for proper site management, environmental monitoring and improving quality schemes.

Ø Action - R&D platform for seafood: Seafood-related R&D and internationalisation of existing seafood clusters are critical to increasing the added value of fisheries and aquaculture products. Actions include research aiming at improving productivity, quality and environmental sustainability of aquaculture (including offshore aquaculture), as well as at increase the industry's ability to respond to market needs and to diversify its offer (new species).

Ø Action - Developing skills: Professional skills and competencies are needed as well as higher capacity to develop them. This action focuses on promoting and strengthening networks of academies and training institutes aiming to develop specific educational and (joint) training programs for fishermen and aquaculture farmers on innovative fishing and aquaculture techniques and safety at work.

Ø Action - Marketing of seafood products: Communication and customer awareness on quality and origin of seafood products are critical to creating added value throughout the fisheries and aquaculture value chains in the Region. This involves development of market intelligence to ensure that marketing and processing of fisheries and aquaculture products in the Region are clear (labelling, traceability and certification), efficient and in full compliance with applicable rules, as well as organisation of and participation in relevant fairs.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

Scientific cooperation on fisheries and fish stocks || Research institutes, fisheries organisations, national/ regional authorities || · “Increasing data collection and scientific capacity”, in the fields of scientific thematic areas of investigation to be jointly explored by (national) research institutions, e.g.: (i) the ecology of larval and juvenile stages and stock recruitment relationship of small pelagic and demersal fish relevant for fisheries; (ii) stock connectivity at sea basin level of the most important fishery resources; (iii) the biology and ecology of important coastal resources (e.g. Sparidae) targeted by the small scale fishery. · “New knowledge for minimising maritime damage caused by fishing”, e.g. focusing on developing improved multi-species modelling, fishing gear and related techniques and technologies so as to minimise carbon footprint, seabed damage, discards and by-catch. · “Data sharing on fishery impacts to support evidenced based decision making”, sharing socio-economic and environmental data to enhance managers' understanding of the socio-economic and ecosystem impacts of fisheries management measures and establish synergies between the fishing sector and other maritime activities (e.g. aquaculture, shipping, tourism, amateur fishing, small-scale fisheries, etc.). · “Fish stock monitoring platforms”, monitoring the state of fish stocks in the Adriatic and Ionian Seas and evaluating the main elements for sustainable fisheries management, such as fishing pressure levels, catch/discards composition, habitat mapping, genetics, tagging, etc. Using to the greatest extent existing cooperation frameworks, e.g. the GFCM,[11]

Sustainable management of fisheries || International organisations, local fisheries stakeholders, research institutes, national and local authorities || · "Multiannual fishery management plans”: establishing management plans for shared fish stocks[12] at national or international level by building also on the experience of the Adriatic-Ionian Plan for Small Pelagics. Ex-ante studies should be carried out in order to simulate consequences of different management systems. This also involves strengthening stakeholders’ involvement in fisheries management. · Cooperation to support responsible fisheries in the Adriatic and Ionian Seas”, building on existing initiatives. This cooperation should be strengthened by focusing on the code of conduct for responsible fisheries established by UN-FAO).

EU compliance and common standards and practices || National/ regional authorities, research institutes, private operators and organisations || · “EU compliance in the field of fishery”, focusing on establishment of thematic EU compliance networks to increase awareness among fishermen and public authorities, sharing of data and exchange of experiences and best practices and building capacity notably in candidate and potential candidate countries. · “Development of common standards in the field of aquaculture”, setting up a macro-regional working group for standardising licensing procedures and permission for new farming plants and reducing administrative burdens and constraints.

Diversification and profitability of fisheries and aquaculture || National/ regional authorities, research institutes, private operators (fishermen, POs, processors, etc.) Fisheries Local Action Groups (FLAGs) || · “Anti-crisis network for sea food industries”, setting up a network capable of responding quickly to crisis situations in the food industry. The set-up of market monitoring tools at sea basin-level could support the prevention of such crises, aimed at developing data and information dissemination. · “Improvement and diversification of fishing activities” addresses renewal of fishing fleet equipment enhancing fishermen's safety at work and improving storage facilities. Others job opportunities can be created by diversifying fisheries activities by promoting e.g. fishing tourism. Fisheries Local Action Groups could represent the natural tool for diversifying fisheries. · “Sustainable aquaculture site location and management”, focusing on development of tools (including indicators) for proper location of aquaculture, including tools for identifying potential co-location with other economic activities. This could address issues such as improving quality schemes, increasing the cage number at sea, expanding farming of existing species and introducing new species of high commercial value, while minimising the impact of such measures on the surrounding marine environment.

R&D platform for seafood || Research and training institutes, private operators (fishermen, aquaculture farmers, processors, producer organisations) || · “Macro-regional seafood clusters and processing capacity”, to carry out research to improve the growth, productivity, quality and environmental sustainability of aquaculture (including offshore aquaculture) and the industry's ability to respond to market needs and diversify offer (new species).

Developing skills || Training institutes, private operators, Fisheries Local Action Groups (FLAGs) || · “Boosting skill development”, promoting networks of academies and training institutes to develop specific educational and (joint) training programs for fishermen and aquaculture farmers on innovative fishing and aquaculture techniques and safety at work. · “Strengthening of Centres for Aquaculture production and Safety surveillance” based on the experience of CAPS2[13]. Such a project could aim at strengthening diagnostic capacities of laboratories, for contamination of fish and shellfish and to develop concrete improvements of diagnostic competences in terms of equipment and knowledge, skills and capacities.

Marketing of seafood products || Private operators, public authorities, Fisheries Local Action Groups (FLAGs) || · “The taste of Adriatic-Ionian seafood”, developing market intelligence to ensure that marketing and processing of fisheries and aquaculture products bear clear labelling, traceability and certification, are efficient and fully comply with applicable rules. Such a project might also work on a joint quality label for high-quality seafood products from the Region. · “Adriatic-Ionian Seafood on Fairs”, supporting organisation of regional fairs, integration in tourist routes/products to promote common marketing of seafood products. At the same time such a project may also support participation in fairs as a means of marketing seafood products from the Adriatic-Ionian Region.

Examples of targets by 2020

The number of newly established networks relating to research & monitoring, compliance with respect to EU regulations regarding fisheries and aquaculture, common standards in fisheries and aquaculture as well as diversification of aquaculture products, marketing of seafood products from the Region could serve as starting point for the establishment of result indicators.

Examples of targets could include:

· Multiannual fisheries management plans for the stocks adopted and implemented at Sea basin level

Number of joint marketing initiatives aiming at establishing an Adriatic-Ionian brand for seafood products

1.3. Maritime and marine governance and services

Presentation of the issue

The countries in the Adriatic-Ionian Region are characterised by different administrative and political structures as well as government and governance systems.

A wide range of topics relevant for strengthening Blue Growth are not tied to specific sectors such as blue technologies, fisheries or aquaculture. These overarching topics address mainly the wider administrative capacity to deliver marine and maritime services of public interest.

Cooperation on various services – notably those linked to the capacity building in the public sector and better coordination of planning activities – is needed for preparing the ground for better marine and maritime governance and services. In a wide range of fields, coordination of activities would improve use of existing resources. Focus should be on bringing together national or regional activities under one roof, e.g. via joint planning efforts.

Adriatic-Ionian Region specifics

The Adriatic-Ionian Region displays considerable imbalances and currently undergoes significant political transformation. This makes bridging political divides particularly important, as well as improving institutional capacity and management mechanisms transcending national boundaries. Mutual trust among neighbouring countries is crucial. Although accession and prospective accession to the EU has improved the situation, new systems take time to be put in place. They require change in mind sets, raised awareness, confidence-building among public and private stakeholders and improvement of skills.

There are also considerable imbalances both as regards the access to funding as well as administrative capacities and cooperation experience. These imbalances affect the capacity to respond jointly.

Thus, existing networks and organisations active at the level of the Adriatic and Ionian Seas ought to be strongly involved in the future work. Cooperation experience has already been gained in the macro-region, notably thanks to networks involving major ports (like the North Adriatic Ports Association) or regional authorities (e.g. under the umbrella of the Bologna Charter) and/or research institutes (e.g. involved in SHAPe and ADRIPLAN), fora such as those encompassing Adriatic-Ionian Universities and Cities, and organisations such as the Adriatic-Ionian Initiative or the General Fisheries Commission for the Mediterranean.

Indicative Actions

Ø Action - Governance of maritime space: Proper joint governance of the maritime space provides an important framework for a sustainable and transparent use of maritime and marine resources. This will include supporting the implementation of the new Directive on Maritime Spatial Planning (through coordinated planning) and may imply adopting clearer legal frameworks for exploiting deep-sea water and marine mineral resources.

Ø Action - Institutional capacity to harmonise standards and regulations: This action aims at improving the quality of public services and improving governance mechanisms for international cooperation. In a wide range of sectors (e.g. fishery policy, maritime spatial planning, integrated coastal management), the development of common understandings and harmonised standards and regulations as well as sharing of best practices are needed. This requires institutional capacity of the involved public bodies and stakeholders.

Ø Action - Data and knowledge sharing: This action aims at improving the evidence base for policy and decision-making in the Region. Sharing data and knowledge among public bodies in the Region can increase the efficiency of the public administration (e.g. by avoiding duplication of monitoring or data collection efforts) and increase their capacity to seize opportunities or react to challenges which can be detected earlier if data and information is shared and analysed across countries.

Ø Action - Maritime skills: Working in the maritime sectors requires skills and increasingly specialised professional profiles and expertise. This actions aims at improving the levels of skills in the Region, e.g. by strengthening networks of academics, training organisations and professional organisations in the maritime sector.

Ø Action - Citizen and business awareness and involvement: This action aims at promoting citizen and business awareness regarding blue economy, new technologies, fisheries and aquaculture.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors, and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

Governance of maritime space || National and local authorities, research institutes || · “Maritime governance and services task force”, ensuring the legal framework for exploiting deep-sea water and marine mineral resources in a sustainable manner, through governance mechanisms such as establishment of maritime zones. · “Implementing coordinated Maritime Spatial Planning (MSP) and Integrated Coastal Management (ICM)”, based on the experience of e.g. ADRIPLAN[14], with the aim of improving the on-going process to develop Maritime Spatial Planning (MSP) in the sea basin, of overcoming barriers to full participation of all neighbouring countries in the process and of promoting sound technically/scientifically based political decisions. This will promote a coherent transnational approach to the spatial planning of the two seas and support implementation of the MSP Directive. The ultimate aim would be good governance of economic activities in this sea region and implementation of common plans.

Institutional capacity to harmonise standards and regulations || National and local authorities, business associations || · “Twin Fish”, focusing on training and networking activities with the aim of boosting capacity-building and of twinning projects between EU and non-EU stakeholders on Common Fisheries Policy (data collection, controls, etc.). · “MSP and ICM training and mutual support”, focusing on the development of training activities and networks needed to support capacity building on Maritime Spatial Planning and Integrated Coastal Management.

Data and knowledge sharing || National and local authorities, research institutes || · “Adriatic-Ionian data cloud supporting maritime governance and services”, establishing knowledge innovative communities and IT platforms for sharing data and exchanging knowledge. Information from heterogeneous data sources (e.g. sensor data, operational or regulatory data, open source data, voluntary reporting, platforms of opportunity data etc.) would be made available for modelling, risk analysis and wider maritime domain awareness through data broker and "big data analytics" capabilities. Such a project could benefit from a quadruple helix approach involving potential users and providers of relevant information in the academic, private and public sectors and civil society.

Maritime skills || Training institutes, academies, private operators || · “Maritime skills circulation”, developing networks of academies and training institutes on maritime profiles/professions (including shared module trainings) with the aim of developing new high-standard training curricula for experts in the maritime sectors. This could also include development of joint curricula taught at different places in the Region. Such a project could benefit from experience of the UNIADRION network.

Citizen and business awareness and involvement || FLAGs, media, private operators, civil society, local authorities || · “Citizens exploiting the Region's blue potential”, promoting awareness about the macro-region's potential in terms of blue economy, new technologies, aquaculture and fisheries . The target group would mainly be citizens and businesses in the Region. The aim of such a project would be draw attention to and to discuss potential in this field of activity and to encourage citizens and businesses to exploit it.

Examples of targets by 2020

Concrete results are mainly to be found in the field of increased networking on improving EU compliance, data and information sharing and development of common standards. Other results will pertain to training to improve skills and capacities and to awareness-raising. Accordingly, the number of newly established networks on monitoring and maritime spatial planning or integrated coastal management, as well as the number of trainings provided could serve as starting point for establishing result indicators. These results would prepare the ground for improved cooperation structures, joint databases or monitoring systems and implementation of joint plans. Possible points of departure for quantifiable result indicators may thus be a common MSP and ICM plans along the Adriatic-Ionian Sea basin and coastlines, the number of joint databases or monitoring systems put in place.

Examples of targets could include:

· Creation of a shared system of major macro-regional data bases (i.e. Adriatic-Ionian Cloud)

· 100% of the water under national jurisdiction and 100% of coast lines covered by Maritime Spatial Planning and Integrated Coastal Management and their implementing mechanisms fully in place

2. Connecting the Region

Coordinators: Italy and Serbia

The overall objective of Pillar 2 "Connecting the Region" is to improve connectivity within the Region and with the rest of Europe in terms of transport and energy networks. This requires thorough coordination of infrastructure works and improved operation of transport and energy systems between the countries in the Region.

The macro-region is facing huge infrastructure disparities, notably between 'old' EU Member States and the other countries, following years of isolation and conflict. Better transport and energy connections are compelling needs for the macro-region and a pre-condition for its economic and social development. Environmental impacts have to be duly considered (e.g. air emission). Infrastructure projects should be embedded in a wider sustainable transport plan linked to local and regional air quality plans.

Efficient and sustainable transport connections, capable of coping effectively with increased traffic flows, will create attractiveness, both for foreign direct investments and for tourism, hence jobs and prosperity. Better use of intermodal transport will reduce the costs of delivering goods in Central and Eastern Europe, improve the eco-balance and restore the competitive position of the North Adriatic ports as natural gateways to Central and Eastern Europe. Better interconnected energy networks will benefit the whole South-East Europe region, and beyond. A better working and interconnected energy market will reduce wholesale prices and attract investors.

The specific objectives for this pillar are:

1. To strengthen maritime safety and security and develop a competitive regional intermodal port system;

2. To develop reliable transport networks and intermodal connections with the hinterland, both for freight and passengers;

3. To achieve a well-interconnected and well-functioning internal energy market supporting the three energy policy objectives of the EU – competitiveness, security of supply and sustainability.

To achieve these objectives, the pillar will focus on three topics:

Topic 1 - Maritime transport;

Topic 2 - Intermodal connections to the hinterland;

Topic 3 - Energy networks.

The challenges posed by improving the connectivity within the Region and between the Region and the rest of the EU can only be tackled through cooperative and coordinated approach.

As the Region is made up of many relatively small countries, national actions are not enough, and even bi-lateral cooperation does not provide the necessary solutions. Wider regional cooperation is needed to overcome bottlenecks and to promote connectivity (i.e. cooperation aimed at developing projects of common interest (PCIs) which will provide services to several countries involved in the Strategy). Many of the planned major infrastructure projects only make sense if looked at from a macro-regional perspective.

The core transport and energy axes are macro-regional per definition or even European in the perspective of the Trans-European Networks for transport (TEN-T) and energy (TEN-E). A coordinated approach is therefore vital.

An additional factor to take into consideration for the railway and electricity markets is their fragmentation. Most of the national markets are too small to attract investors and competition. Freight transport, in particular combined, requires distances above 300km, often exceeding the distance between two borders in the Western Balkans. Electricity interconnections are a condition sine qua non to have a well-functioning market, not to mention the safety of supply. Macro-region-wide railway and energy packages would also make more sense. This, however, requires advanced regulatory and trading skills, not easily found in small markets. Scale is bringing added value. On the sea side, maritime traffic congestion requires better coordination on maritime surveillance, so as to improve maritime safety.

This also holds true for border crossings. Simplifying border crossings, between EU Member States, between them and non-EU countries, Schengen and non-Schengen, for passengers and for freight, is better conceived and implemented at macro-region level.

This pillar strongly supports the Europe 2020 Strategy:

· Smart growth. Better transport and energy connections require innovative solutions which reduce costs, improve efficiency and contribute to smart growth.

· Sustainable growth. It supports modernisation of the transport sector to make it more efficient hence more environmentally-friendly (e.g. by promoting inter-modality). Through interconnection of energy networks, it provides the condition for better functioning energy market and thus development of energy production from renewable sources.

· Inclusive growth. Territorial cohesion is supported through better connections and secure and affordable energy, including in remote areas. New business opportunities are created, hence new jobs.

Inspired by the Europe 2020 Strategy, the countries of South East Europe endorsed their own 2020 Strategy (South East Europe 2020 Strategy - SEE 2020) as a regional response to Europe 2020 in the context of the Regional Cooperation Council (RCC)[15]. SEE 2020 focuses on five main pillars: integrated, smart, sustainable, and inclusive growth, underpinned by good governance.

With regards to transport, SEE 2020 sets ambitious targets, including decrease of the cost of transport, improvement of transport infrastructure utilisation rates and increase in railway/waterborne share. The South-East Europe Transport Observatory (SEETO) is playing a central role in the Region, in close coordination with the Commission. The aim of the SEETO is to promote regional cooperation in the Western Balkans in developing the multimodal SEETO Comprehensive Network and to connect it to the EU's TEN-T. The SEETO Comprehensive Network has been defined in close co-operation between the European Commission and the regional partners. It constitutes the indicative extension of the TEN-T into the Western Balkans. It has been included in the TEN-T guidelines.

Concerning energy, the countries in South–East Europe, as signatories of the Energy Community Treaty[16], have embarked on a path of energy market reforms and regional integration. SEE 2020 aims at increasing energy efficiency, promoting renewable energy production and consumption, stimulating energy infrastructure development and creating a well-functioning SEE energy market.

Implementing the energy and railway packages remains a challenge in the macro-region, Italy excepted. Unbundling of energy production, transport and distribution and of the railway market in infrastructure and train operations may be done on paper, but the access to these markets remains limited and competition almost inexistent.

Actions in each sector should combine investments in the network, soft measures to ensure correct application of the regulatory framework and market functioning, plus specific measures for smoothing border crossings. Effective improvements need coordinated planning, funding and implementation. Market failures, due to externalities, are strikingly evident in lack of investments across borders. Large projects need to be identified and implemented sustainably and efficiently, with shared costs and benefits. The more users, the more efficient investments become, with significant economies of scale. This would for example apply to LNG infrastructure to facilitate fuel switching and to infrastructure providing shore-based power supply.

Links with other pillars

The topics identified under this pillar must be considered with the other policy fields, in line with the integrated approach encouraged by the Strategy. Pillar 2 is an obvious prerequisite for the three other pillars. For example: harmonisation of maritime traffic monitoring and information system will help development of fisheries and aquaculture; intermodal transports will reduce environmental impact; better transport connections are a must for tourism development, particularly in insular and remote areas.

Cross-cutting issues

The three topics included in this pillar, and the related specific objectives, would strongly benefit from the cross-cutting issues identified for the Strategy, in particular:

· Institutional and administrative capacity of the national and regional bodies responsible for transport (maritime, land, air) is essential for effective coordination at macro-regional level, for coordination in the TEN-T and TEN-E context and, eventually, for achieving the objectives set. Capacity building should aim, inter alia, to help joint planning, financing and implementation of actions. It should aim, first and foremost, to bolster macro-regional thinking.

· Communication and awareness-raising is essential for participation of stakeholders in the decision-making process and for building a feeling of ownership in the population. This will also be of benefit for the implementation phase, where actions need wide-ranging public support.

· Investments in transports and in energy networks can benefit from innovative approaches which would come from research. The business community, and in particular the small and medium size enterprises, would benefit directly from investments in the sectors, though work, services and supplies contracts, and indirectly from more efficient transport and energy networks which would favour investments, thus growth and jobs.

2.1. Maritime transport

Presentation of the issue

The Adriatic and Ionian Seas represent the backbone of the Region, and its major asset. Maritime transport is an economic sector that could play a significant role in Adriatic and Ionian countries.

During the 1960s, 1970s and 1980s, the ports of the macro-region were unable to develop their container traffic to a significant extent, because of the Region being located on the fringe of Western Europe. Current trends of trade have increased the competitive position of the North Adriatic ports as natural gateways to Central and Eastern Europe. There is evidence that the North Adriatic ports could secure 6.0m TEU containers/year of traffic by 2030 (or 11.3% of the EU market); this would represent traffic growth of almost 350% over 20 years, provided good railway access is provided for the hinterland.

In this context, development of maritime transport, in particular motorways of the sea as navigation corridors, is of paramount importance and must go hand-in-hand with the creation of modern and efficient intermodal ports integrating maritime transport with rail and road. Such an extension of infrastructure and transport activities must be accompanied by a coherent sustainable transport plan linked, inter alia, to an air quality plan under Directive 2008/50/EC. Investments in innovation and modernisation of infrastructure, reduction of procedural constraints and bureaucratic burden (especially in port operations) and promotion of safe maritime traffic should be given priority in the entire sea basin.

Adriatic-Ionian Region specifics

Traffic monitoring and management are still an issue in the Region. The current ADRIREP[17], a mandatory Ship Reporting System in the Adriatic Sea, is outdated and not fully serving its objectives. Significant improvements are still needed on harmonising the procedures, the data exchange and the national VTMIS[18] and on establishing mechanisms to enable maritime traffic information exchange between national VTMIS systems, also in view of including pre-accession countries in SafeSeaNet[19].

The North Adriatic Ports Association (NAPA) constitutes a positive step of cooperation between the Adriatic ports in their global competition with those of Northern Europe. The partners agreed, in particular: (a) to establish a network of port community systems capable of integrating all members of the transport community through internet; (b) to exchange data on the shipping lines and vessels operating between sea ports and harbours in order to achieve coordination and integration; and (c) to promote the concept of “Single Window” with the aim of reducing transaction costs and operation turnaround time.

Ports also play a key role in local traffic, with ferries and Ro-Ro short-sea shipping. More routes would decrease the distances between the two coasts of both seas. Tourism is heavily dependent on ports, for cruise ships, big and small, and for yachting. Trends in the fast growing cruise industry and in logistics and distribution systems, have led to an increased need for value-added services within the area of the port. Ports require new facilities such as cranes, new passenger terminals, new operational procedures, and good sequential or parallel coordination of the different services provided by the port actors inside and outside the port, in the context of door-to-door logistics. Port services could also address air quality measures such as power supply from shore and cleaner non road mobile machinery (e.g. cranes). For the same reason clean short sea shipping in the very touristic Adriatic Sea basin should also be promoted, by using clean shipping and retrofitting technologies.

The multiple islands in the Region present a unique point of attractiveness, but, without improving connections within the macro-region and beyond, they will not be able to develop this competitive economic advantage.

On the problematic side, ports are a possible gate for unlawful trades concerning drugs, weapons, counterfeited goods. Ports are also gateways for introduction of invasive alien species which can make a negative impact on other activities, like aquaculture or tourism. Security concerns will have to be continuously addressed in an appropriate manner.

Overall, ports will need to invest substantially in order to meet all these technological, industrial, safety, security, environmental and climate change challenges.

Indicative Actions

Ø Action - Clustering port activities/services throughout the region: Following the example of the existing NAPA cooperation agreement, harmonising the ports processes through a common ITS (Intelligent Transport System) would attract traffic that is now avoiding the Region.

Ø Action - Improving and harmonising traffic monitoring and management: Strengthening and securing frequent exchange of information between coastal countries through the development of a Common Adriatic-Ionian Vessel Traffic Monitoring and Information System (by building on existing regional exchange of Automated Identification of Ships data and Ship Mandatory Reporting system, i.e. ADRIREP), will improve safety and security of maritime traffic in the region.

Ø Action - Developing ports, optimising port interfaces, infrastructures and procedures/operations: Developing the ports and port terminals in order to boost maritime transport, short-sea shipping capacity and cross-border ferry connectivity. Ports should favour development of combined infrastructure (trade, procedures, movement of goods information systems, structures, vehicles and operations), improving links to the mainland and emphasising the supply chain of goods.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

Clustering port activities /services || Port authorities, port users, shipping companies, freight transporters || · Sharing strategic functions and harmonising ports processes through a common Intelligent Transport System (ITS), building e.g. on the NAPA initiative (Trieste, Koper, Venice and Rijeka) and on the APC -Adriatic Port Community (APC) project (Venice, Ploce and Igoumenitsa). · Common certification of the ports on safety, sustainability and computerisation.

Improving and harmonising traffic monitoring and management. || Masters, owners, agents, operators, shippers and relevant authorities || · Establish a working group to amend the current Adriatic Traffic Reporting system (ADRIREP) in order to reduce excessive administrative burden and unnecessary duplication of data collected by Vessel Traffic Monitoring & Information System (VTMIS) infrastructure. · Implement a new ADRIREP ensuring that data providers, including masters, owners, agents, operators, shippers and relevant authorities, need to submit information only once, and that the information submitted is available for use in all relevant reporting, notification and VTMIS systems · Link all Adriatic and Ionian countries to a Sub-Regional MARE server to take advantage of AIS sharing data, including as an example, data on ships, emission factors, results of fuel quality inspections, clean shipping index, that could help monitoring emission and improve air quality in port cities. · Capacity -building activities (training, education programmes, standardization and interoperability) improving the application of international legal requirements. · Traffic Separation Schemes (TSS) could be envisaged in the congested areas.

Developing ports, optimising port interfaces, infrastructures and procedures / operations || Port authorities, port users, shipping companies, transport companies || · Implementation of Information and Communication Technology (ICT) and intelligent infrastructure services (e.g. tracking and monitoring) to improve the efficiency, reliability and safety/security of the port operations and of the delivery system · Harmonisation of the port processes through a common ITS · Creation of an accessible maritime transport database allowing for the design of new itineraries · Support port multimodal connectivity through the development of Short- Sea Shipping and the improvement of raid and railway connections. · Given the increased traffic in ports and the requirement to finalise international routes in time by the companies organising cruises, development of a system of berth allocation in Adriatic Ionian ports. · Green upgrading of ships, of port machinery and port activities (e.g. cranes, power supply from shore, fuel switching to LNG, retrofitting, etc.).

Examples of targets by 2020

· Double the current Adriatic-Ionian market share in container traffic reaching EU

· Establish a single system for maritime traffic surveillance through a unique window and common data exchange

· Increase the traffic of clean Ro-Ro, ferries, short-sea shipping and cruise ships and yachts by 20%

2.2. Intermodal connections to the hinterland

Presentation of the issue

Intermodality goes beyond technical aspects and infrastructure. It includes organisational issues, meeting overall transport demand and seasonal/daily traffic peaks, spatial planning, life-styles, innovations, etc. Together with inland waterways, road and rail provide important international connections within the Region. Ports of the Adriatic and Ionian Seas, as well as railway lines and airports, are immediate entry points to the Region from abroad. An appropriate transport policy must take into account all these considerations, promoting multimodality, while also taking into account environmental aspects (e.g. air emission, etc.), economic growth and social development.

Adriatic-Ionian Region specifics

High investments in the road network in the Western Balkans delivered 36% increase in highways from 2006 to 2011 in relation to the SEETO Comprehensive Road Network. In the period 2007-2011, investments in this network amounted to EUR 10.8 billion, with more than 80% going to the roads network. In addition, the SEETO multi annual plan 2014 defines 20 mature priority projects, and 20 more that require preparatory activities. In relation to the Western Balkans road network, approx. 500 km need urgent rehabilitation and approx. 700 km urgent upgrading of capacity. More attention should, however, be paid to sustainable transport, i.e. multimodal combining maritime, rail and inland waterways. More of less the whole SEETO railway network needs urgent rehabilitation and removal of bottlenecks.

Cumbersome procedures are still leading to excessive delays for freight transport at border-crossing points. The completion of the Adriatic and Ionian Motorway, from Trieste to Patras, is a priority for the development of the Region, in particular for tourism, provided its environmental impacts are carefully considered.

Railway services must become better and more competitive through the on-going reform process separating infrastructure and operations and introducing licensing and regulation. Their complete operational establishment is still lagging behind. After a long period of under-investing in infrastructure and rolling stock, current on-going and planned projects indicate that the rehabilitation of the main rail lines has begun. The SEETO comprehensive network has been improved by rehabilitation and overhaul work mainly on the corridor X, the main artery in the region, and on corridor Vc. However, further efforts and investments are needed in order to bring the railway network of the region close to TEN-T standards. Nevertheless, both freight and passenger traffic volumes continue to decline. Despite border crossing agreements, excessive waiting times and cumbersome procedures and the large number of border crossing points in small areas, present one of the most serious obstacles.

A major issue regarding air transport is the need to develop the route network. Lack of intraregional connectivity reduces the attractiveness of the Region. Given undeveloped road and railway traffic infrastructure, the fastest and cheapest way to increase intraregional links between the countries of the Region may by air. Synergies may be sought, as appropriate, with the air policy initiative in the Western Balkans (Joint Service Provision Area) which aims at creating proactive relationship between regional civil aviation administrations and service providers. Coherence with the ISIS programme (Implementation of the Single European Sky in South-East Europe) should also be sought.

Development of the South East Mediterranean Motorway of the Sea Master plan is intended to concentrate flows of freight on sea-based logistical routes. This should improve existing maritime links or establish new viable, regular and frequent maritime links for transporting goods between participating countries so as to reduce road congestion and/or to improve access to peripheral regions or islands. For example, the Adriamos project aims at enhancing a viable, regular and reliable sea-based transport service integrated in the logistic chain along the Adriatic-Ionian transport corridor between the port of Venice and the Ionian Sea/West Greece port cluster (Igoumenitsa and Patras). This would contribute to reducing economic, social and environmental costs related to port and logistics activities. This project involves infrastructure and facility investments (both works and studies) necessary for removing bottlenecks and for improving the efficiency of the logistic chain.

Indicative Actions

Ø Action - Developing the Western Balkans comprehensive network: Western Balkans need to prioritise investments on the defined SEETO comprehensive network (railway, inland waterways, nodes and hubs, notably with the motorways of the sea), aimed at promoting sustainable transport in the Region, and to prepare their integration in the Trans-European Network – Transport (TEN-T) network. This implies elaborating integrated planning for infrastructure developments and defining joint roadmaps for investments.

Ø Action - Improving the accessibility of the coastal areas and islands: Coastal area and island accessibility are mostly affected by tourism seasonality and commercial and passenger maritime transport are not sufficiently developed . This needs to be addressed by exploring new coordinated and market-based options, optimising use of freight and passenger routes and involving private and public stakeholders.

Ø Action - Developing motorways of the sea: Intermodal transport requires integrated management of the whole logistic chain. Essential elements are, inter alia, improved road and rail infrastructure linking ports with the hinterland and improved infrastructure within a port and ITS solutions.

Ø Action - Railway reform: Taking measures to expedite progress in railway reform, e.g. transparent non-discriminatory access to rail terminals, in particular in sea and inland ports, introducing a concession approach for infrastructure, with direct cost-oriented track access charges, performance schemes and management contracts for authorised applicants

Ø Action - Development of air transport: Establishing a dialogue amongst stakeholders on regional flight connections aiming to develop better links within the Region and to optimise year-round regional flights connections with outside destinations.

Ø Action – Cross-border facilitation: This requires physical and non-physical investments on specific transport axes.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors, and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

Developing the Western Balkans comprehensive network || National ministries of transport and infrastructure, railway undertakings, port authorities, multi-modal operators || · Develop integrated planning for infrastructure developments and define joint roadmaps for investment. · Upgrade multimodal corridors linked to TEN-T core corridors (Baltic-Adriatic, Mediterranean) starting with cross-border bottle necks. Ste-by-step renovation of the railway between Bar and Belgrade. · Build capacity and develop communication activities (training, education programmes, seminars) aimed at improving the application of international legal requirements in the field of environmental impact assessment of transport and energy infrastructures.

Improving the accessibility of the coastal areas and islands || Ship-owners, port authorities, public authorities, tourist operators and associations || · Support feasibility studies and market analyses on maritime connections between neighbouring countries, islands and mainland in order to (i) limit seasonality and (ii) draw new routes. · Promote cooperation between relevant actors to set/improve maritime connections between neighbouring countries, between islands and with mainland.

Developing motorways of the sea || Shipping operators, shippers, maritime transport industry, ports, customs || · Analyse the comparative socio-economic and environmental costs and benefits of different modes of transport (motorway of the sea, railway, motorway, including city bypass-roads) along the eastern coast of the Adriatic and Ionian Seas from Trieste to Patras. · Foster development of a Motorway of the Sea in the Adriatic-Ionian region by building on existing experiences, such as the Adriamos project between the ports of Venice and Igoumenitsa. · Improving the railway connections at the port terminals instead of RO-RO. · Support the logistic chain with shared IT solutions.

Railway reform || Railway undertakings, multi-modal operators || · Coordinate and align access and access charges.

Development of air transport || Regional airports, carriers, public authorities, tourist operators and associations || · Establish a cooperation platform between relevant actors to set/improve flight connections between countries in the Region and optimise year-round flights connections with outside destinations.

Cross-border facilitation || National ministries of transport and infrastructure || · Re-launch cross-border bus or train connections for passengers. · Agree on simplified border-crossing procedures.

Examples of targets by 2020

· Agree on a master plan for coastal road traffic

· Double cross-region regular container train connections

· Reduce the time spent at regional border crossings by 50%

2.3. Energy networks

Presentation of the issue

The energy systems are made up of energy networks and energy markets. The two are interrelated as networks are essential for the effective operation of the markets. The opening of the EU electricity markets, pursued by the third internal market package, contributes to both competition and security of supply and will be facilitated by creation of the European Network of Transmission System Operators and the Agency for Cooperation of Energy Regulators.

In particular in the gas sector, the interconnections between national markets have be improved and countries in the Region need to gain access to new external sources. Reinforcing gas transmission infrastructure will be pivotal for preventing potential supply disruption in the future. Well-functioning networks, interconnections and interoperability are needed for energy security, diversification and effective energy operation.

Adriatic-Ionian Region specifics

The three energy policy objectives of the EU – competitiveness, security of supply and sustainability – can only be achieved through a well-interconnected and well-functioning internal energy market. For the Western Balkans, a treaty establishing the Energy Community was signed in 2005 and an energy strategy developed in 2012.

The energy markets remain fragmented. Integration of the electricity market is a goal which should be achieved by 2020. In the electricity market, the ultimate goals remain the removal of regulated electricity prices, the substantial easing of network congestion, and unhampered cross-border exchanges of energy. In gas, substantial investments are required in transmission and storage infrastructure, in order to improve market liquidity. Investment in infrastructure is crucial for achieving market competition for both electricity and gas. Development of freely accessible energy trading/ auctioning platforms is necessary to enhance market competition.

Unavailability of grid capacity to dispatch fluctuating energy from renewable sources is limiting the development of renewable energy. Hydropower is the most commonly used type of renewable energy in the Region. Only between 2012 and 2020, the installed generation capacity in the Western Balkans is forecast to grow by some 13 GW, which represents an increase of about 64% from 2009 capacity at a cost of some EUR 28 billion. The Energy Community interconnection plans include connecting new renewable energy to the grid, integrating energy markets, enhancing the security of supply, and improving the reliability and quality of energy services provided. Interconnection of electricity grids and adequate grids capacity are pre-conditions for large-scale investments in renewable energy.

Developing natural gas infrastructure will also help currently isolated regions to have access to natural gas supplies, to ensure continuous and secure supplies by having network renovated and modernised, and to bring natural gas from a new range of export markets via new routes (Trans Adriatic Pipeline – TAP, and the Ionian- Adriatic Pipeline - IAP). The TAP project is under development, while the IAP project still lacks a defined business model. In addition to this, LNG infrastructure in ports enabling fuel switching to LNG would also be welcomed, both for the benefit of ship operators and for the sake of air quality.

Wherever possible, energy efficiency improvements should be considered with a view to enhancing security of supply and to achieving a better degree of energy autonomy. Moreover, the participation of the demand side is particularly valuable for matching varying supply patterns and accommodating renewable energy sources in the system. However, owing to economies of scale, each country pursuing full energy independence and striving to achieve security of supply on its own would be far less efficient than cooperating and planning infrastructure developments with its neighbours, while at the same time increasing the reliance on the regional energy trade. In case of a coordinated approach, investment requirements in electricity generation would be significantly reduced – by around 10% of the energy expenses between 2005 and 2020, in South East Europe, according to the Power Generation Investment Study conducted for the World Bank.

Regulated and/or non-cost-reflective prices and tariffs constitute a major barrier to investment. In the majority of cases, regulated end-user prices do not reflect the real costs of electricity supply. The regulatory framework is not yet fully in line with the EU acquis, especially regarding wholesale market opening, transparency of capacity allocation and third party-access to energy networks. Slow progress in unbundling supply and distribution still constitutes an important barrier to market opening, creating an unequal playing field between the incumbent supplier and a new entrant. Differences in allocation of cross-border capacity (in particular non-market based allocation) and in pricing methodologies constitute obstacles to trading. When planning and developing cross-border connecting networks, potential impacts on the environment - e.g. on the marine environment from pipelines - need to be duly considered.

Indicative Actions

· Action - Cross-border electricity interconnections: Improving cross-border electricity interconnections is a fundamental prerequisite for supporting the investments required in energy generation.

· Action - Gas pipelines: For gas, the objective is to enhance security of supply and to promote market integration through diversification of sources and routes to connect gas supply sources, as well as through necessary internal market actions. The creation of a gas ring in the Region will contribute to more secure gas supply.

· Action - Support the establishment of a well-functioning electricity market: Energy needs an integrated and well-functioning market. One of the major requirements for harmonising South-East Europe a far as electricity supply is concerned is to establish a Coordinated Auction Office (CAO). A well-functioning Day Ahead Market for the whole SEE region thus requires, among other things, that all transmission capacity should be made available for the implicit auctions. In this respect, the main function of the CAO is to provide correct transmission capacities to the market, irrespective of the market concept applied.

· Action - Remove barriers for cross-border investments: In order to facilitate development and implementation of Projects of Energy Community Interest, the Energy Community will adopt a holistic approach, in which regulatory measures will be enforced in order to remove some of the barriers to cross-border investment; these may involve permitting procedures, information for decision makers, cost benefit analysis, incentives for projects with a cross-border impact and others.

The table below provides an overview of the mentioned actions, a non-exhaustive list of indicative actors, and examples of possible projects.

Actions || Indicative actors || Examples of possible projects

Cross border electricity interconnections || Transmission system operators, project promoters || Example of possible projects amongst the 2013 PECI (Project of Energy Community Interest) list: · 400 kV OHL Banja Luka (BiH) - Lika (HR) · 400 kV OHL Brinje - Lika - Velebit – Konjsko including 400 kV sub-station Brinje · 400 kV HVDC SS Vlora - Bari West

Gas ring || Transmission system operators, project promoters || · Realising the TAP and its IAP connection · LNG infrastructure in ports to allow fuel switching in shipping

Support the establishment of a well-functioning electricity market || National and regional competent authorities, energy companies || · Establishment of a Coordinated Auction Office (CAO)

Remove barriers for cross-border investments || National, regional competent authorities || · Coordinate and align permits and regulations. · Joined capacity building and innovative solutions for implementing a common market.

Examples of targets by 2020

· Complete the agreed PECI projects

· Security of gas supply at the same level as elsewhere in the EU

· "x" ports with LNG infrastructure

3. Environmental Quality

Coordinators: Slovenia and Bosnia Herzegovina

This overall objective of the pillar is to address the issue of environmental quality, with respect to marine, coastal and terrestrial ecosystems in the Region. Environmental quality is essential for underpinning human activities in the Region and for ensuring economic and social well-being for its peoples. The pillar will deal with the environmental issues that can only be adequately tackled through cooperation at the level and scale of the macro-region.

The specific objectives for this pillar are:

1. To ensure a good environmental and ecological status of the marine and coastal environment by 2020 in line with the relevant EU acquis and the ecosystem approach of the Barcelona Convention.

2. To contribute to the goal of the EU Biodiversity Strategy to halt the loss of biodiversity and the degradation of ecosystem services in the EU by 2020, and restore them in so far as feasible, by addressing threats to marine and terrestrial biodiversity.

3. To improve waste management by reducing waste flows to the sea and, to reduce nutrient flows and other pollutants to the rivers and the sea.

Two topics are identified as pivotal in relation to environmental quality in the Adriatic-Ionian Region:

Topic 1 - The marine environment;

Topic 2 - Transnational terrestrial habitats and biodiversity.

Actions under both topics are expected to contribute to attaining a good ecological and environmental status for marine, coastal and terrestrial ecosystems by 2020.

This pillar strongly supports the Europe 2020 Strategy:

· It contributes to smart growth by strengthening of technical and scientific capacities, and establishment of common platforms and innovative solutions for research, observation and monitoring;

It contributes to sustainable growth, in particular to the objectives of ‘A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy’. The actions under the pillar will support efficient and sustainable use of natural resources including fish stocks, materials and water, preservation of biodiversity, habitats and ecosystems, and will contribute to minimising the impact of climate change on marine and terrestrial ecosystems;

· It contributes to inclusive growth by promoting stakeholder involvement in exploring sustainable options, including the involvement notably of fishermen and farmers, thereby ensuring the economic and social sustainability of actions.

Taking appropriate actions to address environmental issues faced by the macro-region will contribute to implementing the EU Environmental acquis, particularly the Marine Strategy Framework, Maritime Spatial Planning, Water Framework, Urban Waste Water, Nitrates, Waste, Birds, Habitats Directives as well the Green Infrastructure Strategy. It will also contribute to achieving the goals set out in the Common Fisheries Policy, the EU Adaptation Strategy and the EU Biodiversity Strategy.

The Adriatic and Ionian Region is vulnerable to disasters and to the impact of climate change and comprehensive actions to adapt to those circumstances are needed. Enhancing cooperation in this area, through different actions such as conducting adequate comprehensive risk assessment, implementing a disaster risk management policy, as well as developing a regional strategy on adaptation to climate change, will make the Region more resilient to such changes.

The pillar also contributes to the South East Europe 2020 Strategy of the Regional Cooperation Council, in particular to the Environment Dimension of its Sustainable Growth Pillar, by addressing issues related to water quality, disaster risk reduction and climate change mitigation and adaptation.

Involvement of a wide range of stakeholders in the implementation of all actions proposed under this pillar and, more specifically, the social partners and private sector actors from fisheries and producers of packaging, as well as the scientific community and civil society, will further contribute to an integrated approach.

Links with other pillars

While being addressed as a separate pillar, this issue runs across the other three pillars of the Strategy. In line with the Strategy's emphasis on an integrated approach tying together different policy areas and sectors, this pillar is to be linked to the other three pillars on which the Strategy is built. In addition to supporting low-carbon developments and helping limit the ecological footprint of, for example, transport and energy programmes and projects, it directs attention to how environmental quality can ultimately enhance prospects for smart and inclusive growth under the three other pillars. It thus reinforces Blue Growth, through actions related to ensuring the sustainability of fisheries and aquaculture. It also contributes to sustainable tourism by ensuring preservation of natural resources and cultural heritage on which tourism depends, and by addressing issues resulting in part from tourism, such as inappropriate coastal development and marine litter, and issues affecting tourism such as air emissions (e.g. from shipping and road transport). It also contributes to bolstering the resilience of the macro-region's economies and societies in the face of existing and/or potential impacts of climate change.

Cross-cutting issues

In respect of cross-cutting issues:

Capacity building and communication is of paramount importance for both topics under Pillar 3. Macro-regional cooperation in the field of environment can only be successful if there are adequate legislative and institutional conditions at the national level. Moreover, after the necessary legislation has been put in place, environmental protection requires monitoring and enforcement. Capacity building and communication can contribute to raising awareness of the issues and ownership of efforts to address them as well as to aligning national environmental legislation to existing EU legislation, thereby also improving implementation where relevant;

· Research and Innovation, and SMEs - Many of the actions listed under both topics depend on research and innovation for reliable and up-to-date data for identifying baseline situations and hence for monitoring progress. There is a clear need for sharing existing knowledge and development of scientific cooperation, notably through innovative integrated observatory infrastructure and data exchange platforms across the Region and across sectors.

3.1. The marine environment

Two issues can be identified as particularly relevant for the Adriatic-Ionian marine environment, namely threats to coastal and marine biodiversity and pollution of the sea.

a) Threat to coastal and marine biodiversity

Presentation of the issue

The Adriatic-Ionian Region is rich in biodiversity. However, our understanding of marine biodiversity is still not complete. While the marine sub-region has rare or unique habitats, there is a lack of habitat maps covering the Adriatic and Ionian Seas. The high biodiversity of the two seas is the basis for tourism, recreational and fishing activities and contributes to the cultural heritage of the macro-region.

Overfishing, habitat degradation and incidental catches pose serious threats to marine biodiversity, including fish, sea turtle, cetacean, seabird and other species. In addition, uncontrolled and illegal coastal development often leads to destruction of habitats. Invasive alien species from aquaculture and ballast water discharge also threaten ecosystem functions, and illegal collection of sponges, corals and bivalves are further cause for concern.

Increased human use of the marine and coastal space, in particular for fishing, maritime transport, tourism, and construction, has intensified pressures on coastal and marine ecosystems. Ecosystem-based approach to coordination of activities is needed within the framework of Integrated Coastal Management (ICM) and Marine Spatial Planning (MSP) in order to ensure sustainable use of resources. Both frameworks are important stimulants for trans-boundary collaboration and stakeholder cooperation across different coastal and maritime sector activities, and have potential for bringing together ecosystem services and Blue Growth opportunities in a sustainable way. They are key tools for achieving decision-making balancing sector-based interests competing for marine and coastal space.

Adriatic-Ionian Region specifics

The Adriatic and Ionian Seas are home to almost half of all the recorded marine species found in the Mediterranean Sea. High variation in hydro-geographic and other conditions gives rise to a large number of diverse ecosystems and habitats, in turn generating rich biodiversity. A complete inventory of this rich biodiversity and marine habitat maps is however still missing. The highly indented eastern coast of the Adriatic also acts as a breeding ground and nursery to a large number of species. At the same time, the Adriatic and Ionian Seas are subjected to intense fishing activity, aquaculture and coastal development that pose serious threat to this natural capital. There is a general lack of information on small-scale fisheries, illegal fishing gear is not uncommon, and monitoring and enforcement are insufficient. Aquaculture is a rapidly growing industry which is not regulated in all countries so as to ensure sustainability. Raising the awareness of fishermen regarding marine species and fishing nets minimising by-catch, is needed for improving compliance and for strengthening their involvement in identifying the best measures for meeting sustainable fishing targets.

Illegal and uncontrolled construction is a widespread phenomenon across much of the macro-region, with the demand for additional construction stemming from tourism further exacerbating the problem. Coverage in terms of offshore Marine Protected Areas (MPAs) beyond 12 nautical miles is the lowest of all EU marine regions[20], while existing MPAs are often not adequately managed. Invasive marine alien species with possible detrimental effects to aquaculture and fisheries are introduced by shipping vectors.

Indicative Actions

Ø Action - Increasing marine knowledge: To ensure a sound basis for actions related to Maritime Spatial Planning (MSP), Integrated Coastal Management (ICM) and implementation of the Marine Framework Strategy Directive, it is important for the Region to:

- Make an inventory of marine biodiversity and detailed habitat mapping in coastal and offshore areas

- Agree on a common approach to be applied across the Adriatic and Ionian sea basin for monitoring diversity descriptors on the status of the marine environment the two seas, and for determining Good Environmental Status indicators and targets

- Establish a common infrastructure platform in terms of data collection, marine research, lab analysis through common survey programs, research vessels and laboratories

- Develop a Web-GIS Observatory Network to gather and process geographical and statistical data related to sustainable development and the marine environment.

Ø Action - Enhancing the network of Marine Protected Areas: By possible designation of new areas in coordination with the process of designation of Specially Protected Areas of Mediterranean Importance under United Nations Environment Programme – Mediterranean Action Plan (UNEP MAP); by establishment of Fisheries Restricted Areas under the General Fisheries Commission for the Mediterranean (GFCM), by completing marine NATURA 2000 network under Birds and Habitats Directives; by designating further protected areas to form a coherent and representative network of MPAs according to the Marine Strategy Framework Directive; and by ensuring their joint or coordinated management, also in relation to maritime spatial planning and integrated coastal management;

Ø Action - Exchanging best practices among managing authorities of Marine Protected Areas: Aiming to achieve and/or to maintain the Good Ecological Stat