Round table "Sustainable and Resilient Blue Economy – a Key to Enhanced CMA Progress" was held in Varna, Bulgaria

On Monday, July 29, 2024, at 13:00, a round table discussion on the topic "Sustainable and Resilient Blue Economy – a Key to Enhanced CMA Progress" was held at the Seafarer’s House in Varna.
The round table was organized by the Ministry of Transport and Communications (MTC) of the Republic of Bulgaria - National Coordinator of the Common Maritime Agenda for the Black Sea (CMA) and Marine Cluster Bulgaria (MCB) – Bulgarian National Hub of the Black Sea Assistance Mechanism (BSAM) for the implementation of CMA. The event is part of the initiative CMA in My Country and supported by BSAM, Enterprise Europe Network and Bulgarian Chamber of Shipping.

Mrs. Anna Mihneva-Natova, Deputy Minister of Ministry of Transport and Communications of Bulgaria, welcomed the participants, emphasizing the importance of joint initiatives like the Common Maritime Agenda for the Black Sea in enhancing cooperation and creating a favorable environment for innovation and investment in the blue economy.

The event was moderated by Mrs. Ilze Atanasova gathered key business representatives, experts from the Ministry of Transport and Communications (MTC), maritime and port authorities, academia, and research, related to maritime transport, coastal and maritime tourism.

Key discussion topics among the attendees included the implementation of European Commission regulations: (EU) 2023/1804 on the deployment of alternative fuel infrastructure and (EU) 2023/1805; the use of renewable and low-carbon fuels, ETS Directive 2003/87/EC for maritime transport, and the opportunities for Bulgaria to join the EC initiative “Sustainable Blue Economy Partnership”.

Mrs. Boryana Koleva, Chief Expert in the National Transport Policy Directorate at MTC, presented the regulatory framework and necessary future actions for the long-term transition to alternative energy sources in maritime transport. She highlighted the progress in preparing and planning the construction of the necessary infrastructure at Bulgarian ports and announced the upcoming development of the new National Policy Framework for the development of the market for alternative fuels in the transport sector in Bulgaria. Mrs. Koleva confirmed the administration's readiness to cooperate with all stakeholders related to these policy issues.

Capt. Aleksandar Kalchev, Executive Director of Navigation Maritime Bulgare JSC and Chairman of the Management Board of Bulgarian Chamber of Shipping, introduced the participants to the impact of the EU Emissions Trading System (ETS) on maritime transport in Bulgaria and Europe. He expressed the maritime industry's support for initiatives to enhance the environmental sustainability of maritime transport and reduce carbon emissions. At the same time, he expressed concerns, shared by all business representatives, about the potential adverse economic effects of the ETS introduction on the competitiveness of European maritime transport companies and the European economy and end consumers as a whole. He also emphasized the need for greater clarity and transparency regarding the mechanism for allocating ETS revenues. The discussion continued on topics related to the safety of new technologies for the introduction of alternative fuels. Participants agreed on the proposal that part of the investments should be directed towards implementing qualification programs in accordance with the new technical and safety requirements in the maritime industry.

Assoc. Prof. Petar Georgiev from the Technical University - Varna presented the results of a study on international maritime traffic in Bulgaria's exclusive economic zone. The analysis of the impact of emissions on coastal areas is crucial for reducing emissions in the Black Sea region. Participants discussed the need for a regional-level analysis to designate the Black Sea as an emission control area, carried out through the development of a regional project involving other Black Sea countries.

Prof. Milen Baltov, Bulgarian Contact Person of "Partnership for a Sustainable Blue Economy" (SBEP), presented the potential opportunities of the initiative and the barriers for Bulgarian blue economy sectors business and scientific organizations to join it. Participants emphasized the need to secure national funding, as Bulgaria's participation in such initiatives would encourage international partnerships and enhance Bulgaria's innovation potential for the transition to a sustainable blue economy.

Mrs. Ilze Atanasova, Chair of the Management Board of MCB and expert at the Bulgarian National Hub of BSAM, informed the participants about the upcoming CMA and BRIDGE-BS initiatives and support services and partnership search, provided by the Enterprise Europe Network. Mrs. Irina Kircheva, an expert at MCB, presented current funding opportunities under HORIZON Europe, Life+, and other open calls in the blue economy sectors.

Main conclusions:

The roundtable provided up-to-date information on the issues faced by the industry and the steps that need to be taken to ensure that the Bulgarian maritime transport remains competitive while aligning with the upcoming regulations.
In practice, there is a huge disconnect between the IMO and EC global 2050 decarbonisation targets and the technological and financial readiness to realise these targets. Sustainable alternative fuels as well as technologies for their safe storage have not yet been clearly validated. It is likewise debatable whether these targets are feasible in terms of global shipbuilding capacity. Unless the ETS is implemented on global level, it might put European shipping (including BG and RO in the Black Sea region) at a competitive disadvantage against non-European companies.

The round-table participants agreed on the need to review the EC measures after an in-depth multi-faceted analysis of the impact and consequences the ETS adoption and the related directives under discussion may have on the maritime transport and the EU economy at large. It was collectively decided to prepare a formal statement to be sent to the attention of the CMA National Coordinator at MTC for further consideration.

A key conclusion from the discussions is the need to develop and implement a holistic approach to the different aspects, sectors and actors in Bulgaria's blue economy in order to reach a common vision to support the development of a sustainable blue economy.