International Project Caspian Environmental Program Caspian Forum of

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International Project Caspian Environmental Program Caspian Forum of Investors and Donors PRIORITIES AND COMMITMENTS

International Project Caspian Environmental Program Caspian Forum of Investors and Donors PRIORITIES AND COMMITMENTS OF RUSSIA’S POLICY RELATED TO ENVIRONMENTAL PROTECTION OF THE CASPIAN SEA Presentation of the Ministry of Natural Resources of Russia November 19, 2004. Baku, Republic of Azerbaijan 1

Key documents linked to NCAP 1. Concept of transition of the Russian Federation to

Key documents linked to NCAP 1. Concept of transition of the Russian Federation to sustainable development 2. Environmental doctrine of the Russian Federation 3. National Strategy for conservation of biodiversity in Russia 4. Existing environmental legislation 5. Resolutions of the Government of the Russian Federation, the Security Council and the Marine Collegium 6. Package of federal target programs 7. Programs for socioeconomic development and action plans for environmental protection of constituent entities of the Russian Federation in the Caspian region. 2

About NCAP • The NCAP is consistent with the capabilities and the priorities of

About NCAP • The NCAP is consistent with the capabilities and the priorities of social and economic development of the constituent entities of the Russian Federation in the Caspian region • The objective of the NCAP consists in identifying the strategic aspects of planning and carrying out environmental protection activities in the Caspian region of the Russian Federation for addressing a range of national and trans-boundary environmental problems • Implementation of the NCAP is predicated on the correlation of efforts by federal and regional government, the private sector and international financial institutions 3

Priorities of the NCAP • • • The NCAP’s priorities include the following: Rational

Priorities of the NCAP • • • The NCAP’s priorities include the following: Rational management of commercial biological resources Ensuring environmental safety of economic activities Ensuring reliable water supply for the population and economic activities Environmentally sustainable development of the coastal areas, control of degradation and desertification of land Streamlining of environmental management in the region 4

Immediate measures called for by the NCAP for reversing the negative trends in the

Immediate measures called for by the NCAP for reversing the negative trends in the environmental status of the Caspian region: - of a general political and organizational nature; - of a legal nature; - for provision of economic incentives for environmental protection activities; - for development of environmental monitoring and information support; - for promotion of international environmental cooperation. 5

Financing • Based on preliminary estimates, implementation of prioritized environmental protection measures under the

Financing • Based on preliminary estimates, implementation of prioritized environmental protection measures under the NCAP over the period from 2002 through 2006 will require around US$86. 79 million • The shortfall in financing amounts to around US$26. 69 million or roughly 30. 7%. 6

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Examples of potential investments 1. A joint project with ZAO “Yug-Tanker” for establishment of

Examples of potential investments 1. A joint project with ZAO “Yug-Tanker” for establishment of a specialized plant for gathering, processing and disposal of oily waste. The approximate cost is US$2. 5 million 2. Enhancing the efficiency of artificial reproduction of sturgeon species. The project budget is around US$6 million 3. Rehabilitation of Black Earth lands affected by desertification in the Republic of Kalmykia. The budget is around US$400, 000 8

Small grants and other projects • The year 2004 saw commencement of implementation of

Small grants and other projects • The year 2004 saw commencement of implementation of the EC small grants program “Sustainable Development of Caspian Communities”. • At the first stage of the program 66 projects were selected for financing. In Russia, 16 projects will be implemented with a grant component amounting to 125, 000 Euro. • Further activities in this area should be geared to closer cohesion with the priorities determined in the NCAP/CEP SAP system. 9

Changing approaches to financing • It is important to take into account the changes

Changing approaches to financing • It is important to take into account the changes in the financing of environmental protection activities, which are connected with the on-going administrative reform of the government authorities of the Russian Federation. • Since 2004, no provisions have been made for federal-level state guarantees for attraction of any foreign borrowings. • In future, projects will need to be implemented by the constituent entities of the federation in the Caspian region, and will also have to be consistent with the top priority targets of the plans for socioeconomic development. 10

Subject matter of potential environmental investment projects: • • • Modernization and development of

Subject matter of potential environmental investment projects: • • • Modernization and development of the fishery complex, introduction of advanced fish farming technologies Introduction of efficient technologies for supply of small communities with drinking water Construction of garbage processing plants. Modernization and construction of new waste treatment facilities and sewerage networks Introduction of technologies for oil pollution response and reclamation of contaminated areas. Protection of water bodies from oil pollution Preventing desertification of arid areas. Restoration of productivity (rehabilitation) of desertified and degraded lands. 11

Thank you for your attention! 12

Thank you for your attention! 12