EUROPEAN COMMISSION

Brussels, 7.5.2025

SWD(2025) 114 final

COMMISSION STAFF WORKING DOCUMENT

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

on the revised Action Plan of the EU Macro-Regional Strategy for the Adriatic and Ionian Region

{COM(2025) 191 final}

Revised EU Strategy for the Adriatic and Ionian Region Action Plan

(version 5 March 2025)

IIntroduction

I.I    Aim of the revision    

I.II    Horizontal & cross-cutting topics    

I.III    Governance, funding, monitoring and evaluation    

I.IV    Action plan as rolling implementation tool    

I.V    Organisation of the action plan    

1.Pillar 1 –Blue Sustainable Economy

1.1    Topic – Blue and green technologies    

1.2    Topic – Fisheries and aquaculture    

1.3    Topic – Maritime and marine governance and services    

2.Pillar 2 – Connecting the region

2.1    Topic – Maritime transport    

2.2    Topic – Multi-modal connectivity    

2.3    Topic – Urban nodes    

2.4    Topic– Energy networks    

2.5    Topic – Decarbonising the energy systems    

3.Pillar 3 – Environmental Quality

3.1    Topic – Marine and coastal environment    

3.2    Topic – Transnational terrestrial habitats and biodiversity    

4.Pillar 4 – Sustainable Tourism

4.1    Topic – Facilitating digital and green transition of the tourism and cultural heritage offer    

4.2    Topic – Preparing for the future: knowledge, skills and management    

4.3    Topic - Greening of Tourism products and services    

5.Pillar 5 –Improved Social Cohesion

5.1    Topic – Youth engagement and employment    

5.2    Topic – Promoting skills acquisition for future labour markets    

5.3    Topic - Equal opportunities in the labour market    

5.4    Topic - Social Innovations    

6.Annexes

List of abbreviations

IIntroduction

The EU Strategy for the Adriatic and Ionian region is a macro-regional strategy adopted by the European Commission and endorsed by the European Council in 2014. The original Strategy was jointly developed by the Commission and the Adriatic-Ionian region countries and stakeholders, which agreed to work together on the areas of joint interest for the benefit of each country and the whole region.

The participating countries include four EU Member States, Croatia, Greece, Italy, Slovenia, five EU candidate countries, Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Serbia and one non-EU country, San Marino.

The objective of the Strategy is to promote effective multilevel and cross-sectoral cooperation for an economically prosperous, socially inclusive, well connected, more integrated, green and liveable Adriatic-Ionian region. The participating countries agreed on areas of mutual interest with high relevance for the Adriatic-Ionian region, covering both joint challenges and joint opportunities.

The action plan helps the Strategy to go from ‘words to actions’ by identifying the key priorities for the Adriatic-Ionian region. The first action plan was agreed in 2014 when the Strategy was launched. Since then, new priorities, challenges and opportunities have emerged – which need to be addressed through joint actions in the Adriatic-Ionian region – the process of the revision of the action plan started in January 2022. This revision of the action plan takes into account the priorities set in the UN Agenda 2030 and Sustainable Development Goals, EU policies supporting green and digital transition as well as building just and inclusive Europe on the principles of European Pillar on Social Rights; the changed circumstances and perspectives of EU enlargement; enlarged membership in the Strategy revision as well as experience concerning the capacities of the Strategy community in putting the Strategy into practice.

The participating countries have set the goal to facilitate the accession process through the revised action plan and following this, unlock the full potential of the Adriatic-Ionian region. Joint actions comprise building networks, offering mutual learning, striving for harmonisation, aligning policies, building capacities, strengthening civil society and voluntary service, to highlight some examples. The revision of the action plan has been subject to an open public consultation, helping to draw lessons from the experiences and inform the proposals of the revised action plan. The action plan outlines the way for all involved stakeholders to cooperate on specific topics, priorities and actions to achieve the objectives of the Strategy as a whole and in particular those of the pillars. The drafting process 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. The revised action plan is therefore a multilevel approach where the role of the governance system of Thematic Steering Groups of the Pillars and the Governing Board played a very crucial role, from the drafting of the Plan up to its implementation.

The implementation of the action plan is the responsibility of all, at country, regional, and local/municipal level, within each participating country. The governance system oversees coordination, monitoring and implementation. The Governing Board is the main decision-making and coordinating body, providing strategic guidance for the implementation, monitoring the progresses achieved, evaluating the results, and adjusting the Strategy to new challenges. National coordinators ensure an effective link in each country with the relevant bodies involved in the implementation of the Strategy. For each pillar, a Thematic Steering Group, composed of appointed representatives of participant countries will work closely with their counterparts in the other countries. To ensure even stronger commitment, the Strategy governance’s architecture has been revised, better defining the roles and responsibilities and improving coordination between the strategic, thematic and operational level of the Strategy as well as strengthening the involvement of regions, local administrations, academia, research, economic actors, civil society and other stakeholders in the Strategy’s implementation. The Strategy Facility Point, the Stakeholders Engagement Point and the Strategic Project Development project act as a technical structure providing assistance and support to the Governing Board, the Thematic Steering Groups and the relevant stakeholders, each with its functions.

The Thematic Steering Groups have pillar coordinators to ensure an effective implementation of the actions included in each pillar. This involves securing agreement on an implementation plan associated to a timetable and a list of indicators for monitoring and evaluating progresses achieved, and ensuring close contacts between project promoters, programmes and funding sources. This work aims at being transnational, inter-sector and interinstitutional.

I.Aim of the revision

Starting point of the revision process was the political mandate expressed in the Izola and Tirana Declarations, the findings of the Strategy evaluation, relevant Commission reports, experience of the participating countries, the proposals of Thematic Steering Groups and stakeholders and the outcomes of the public consultations. The Sarajevo and Šibenik Declarations, signed during the revision process, were even more specific, welcoming the fifth, social pillar in the Strategy, highlighting its importance in helping regions to adjust to ongoing demographic, industrial, and geopolitical challenges, acknowledging the need for stronger mobilisation of funds and appropriate monitoring tools to evaluate impact of the Strategy and emphasising regional cooperation and integration in equal opportunities, empowerment of women, youth engagement and UN Sustainable Development Goals. On this basis, the action plan has been revised to adapt to the changes in its membership and to respond better to current challenges and opportunities.

The revision process made it possible to better align the Strategy and envisaged actions with EU priorities and strategies, shared management funds e.g. cohesion policy funds, Common Agricultural Policy funds, European Maritime, Fisheries and Aquaculture Fund, Interreg, etc.) as well as EU direct or indirect management funds such as IPA Funds, Horizon Europe, Life, Erasmus+ etc. The Economic and Investment Plan for the Western Balkans, the Growth Plan for the Western Balkans and other targeted Western Balkans investment plans or instruments were also considered. As a result, the revised action plan targets a mid-term future of 2030.

In light of these aims and time horizon, the existing pillars of the Strategy have been revisited, adjusted and supplemented with introduction of one more pillar. This has resulted in the following, pillars:

·Pillar 1 – Blue sustainable economy addressing the need to strengthen emerging technologies and innovation in the field, as well as sustainable fisheries and aquaculture and progress on joint actions in the field of maritime and marine governance and services. The focus goes beyond the immediate marine and maritime areas; it also involves inland water resources such as rivers and lakes.

·Pillar 2 – Connecting the region addresses the need to strengthen and interlink sustainable energy and transport networks and services in the region, reducing bottlenecks and developing necessary regulatory frameworks. Coordinated monitoring of maritime traffic and multi-modal transport and energy services will increase region’s competitiveness. The focus goes beyond the major energy and transport infrastructure networks; it also involves urban nodes of the region in order to reconcile their economic and demographic growth with environmental sustainability and people accessibility to services and innovations, particularly in suburban and rural areas. A particular emphasis is given to the need to also progress on the transition to green (carbon neutral and zero pollution) and digital solutions.

·Pillar 3 – Environmental quality sets out actions to improve the marine and costal environment and transnational terrestrial habitats and biodiversity, by further strengthening the development and use of common platforms and tools for data exchange and joint monitoring, supporting cross-border and transnational aspects of Integrated Coastal Zone Management and Maritime Spatial Planning, strengthening the exchange and dissemination of experience and the development of new innovative solutions for climate change resilience. The environmental consequences of climate change need to be reflected in the shift of risk perceptions to extreme weather conditions, ecological disasters, loss of biological diversity, natural disasters and failure to mitigate climate change. Climate change with special regards to adaptation and nature conservation is determining the scope of work of this pillar. Environmental and climate change risks have to be recognised and included in everyday activities.

·Pillar 4 –Sustainable tourism takes into consideration all the key dimensions of economic, environmental, cultural and social sustainability. The focus includes the digital and green transition of the tourism ecosystem considering relevant sectors and different public and private actors. It also promotes innovative ways for developing sustainable tourism. The overall objective is to develop the full potential of the region in terms of innovative, sustainable, responsible and quality tourism. Diversification of tourism products and services, along with tackling seasonality, will boost business and create jobs.

·Pillar 5 – Improved Social Cohesion promotes social progress concerning labour market opportunities for the whole society and for future generations. In doing so, it promotes the importance of the European social model, and of solving social challenges that transcend national borders. An important focus is on skills, education and youth. The aim of the social pillar is to align the Adriatic-Ionian region with the EU strategies and policies for strengthening focus on social change, and pair the green and digital transition with social transition. It contributes from the macro-regional context to achieve equal opportunities, empowerment of women, youth engagement, upskilling, reskilling, and access to the labour market, as well as fair working conditions and social protection in the whole region. Cooperation between participating countries may inter alia include exchange of experiences, coordination of policy measures, definition of priorities and standardisation of approaches to solving social challenges that transcend national borders. The social pillar will also work as a response to the requirements of the European Pillar of Social Rights, and it will also tackle the human rights dimension of the Economic and Investment Plan for the Western Balkans.

While the first four pillars are further developed based on the past action plan, the fifth, Social Cohesion pillar has only been decided upon in May 2023. Therefore, its content will be further developed and detailed.

The action plan revision process took place between January 2022 and July 2024. The revision process was led by relevant Presidencies (Albania from January to May 2022, Bosnia and Herzegovina from June 2022 to May 2023 and Croatia from June 2023 to May 2024) supported by the Facility Point and included a wide range of relevant stakeholders of the Strategy community. Pillar Coordinators and members of the Thematic Steering Groups for each pillar, the Governing Board and National Coordinators were involved. A specific Revision Working Group has been established by the Governing Board, with representatives of each participating countries appointed by National Coordinators. The group provided guidance to the Facility Point and approved the work done at each step of the process.

The revision process also included moments of consultation, where stakeholders other than those directly involved in the Strategy were asked to provide inputs and comments.

The most important steps and milestones of the revision process were:

·The first draft of the roadmap (January 2022)

·Engagement of an external expert that facilitated the revision (February – March 2022)

·M1: Agreement on the process (February to November 2022)

·Launch of Strategy-level public consultation with key stakeholders and interested general public including youth    (May – June 2022)

·Strategy-level public consultation report published (September 2022)

·Establishment of a Revision Working Group (October/ November 2022)

·Launching of the internal Strategy consultation phase on the relevant Strategy levels (October 2022-January 2023)

·M2: Agreement on the action plan pillars, topics, structure, governance (February-May 2023)

·Second round of thematic consultation (March-June 2023)

·M3: 1 Draft action plan (June 2023)

·Gathering feedback from regional, national and Commission levels (July-September 2023)

·Final round of internal Strategy consultation (February 2024)

·M4: Input document for Commission action plan Staff Working Document (May 2024)

II.Horizontal & cross-cutting topics

The pillars are highly interrelated due to the broad and interdisciplinary nature of the challenges and opportunities addressed by the Strategy. Therefore, the Strategy encourages an integrated or transversal approach highlighting interdependences between its pillars.

Accordingly, the revised action plan identifies horizontal and cross-cutting issues that should be addressed appropriately under the respective pillars and integrated when appropriate into the actions implementing the action plan.

The following horizontal topics need to be addressed by all pillars and topics:

·Enlargement. The enlargement of the EU to include the Western Balkan candidate countries is a central development feature in the region. The Strategy is consistent with the EU enlargement policy framework. All pillars and all their topics, where relevant, must support the enlargement process of the candidate countries in the Adriatic-Ionian region and complement their Reform Agendas by accelerating their alignment with Union values, laws, rules, standards, policies and practices (‘acquis’) through investments and reforms as part of their work to become EU members. The candidate countries should accelerate their economic integration and foster their progressive integration into the EU, in particular with respect to socio-economic convergence with the EU and the EU single market. The implementation of the Strategy builds on the substantial investments and reforms through the Economic and Investment Plan and the ‘New Growth Plan for the Western Balkans’, to assist the Adriatic-Ionian region in implementing reforms for sustainable economic growth, regional integration, and the Common Regional Market. The revised action plan is fully compatible with the Economic and Investment Plan for the Western Balkans, notably regarding climate action, including decarbonisation, energy and mobility, as well as its strong focus on digitalisation. It is also aligned with the Green Agenda for the Western Balkans, in particular with the focus on regional energy integration and diversification towards renewable energy. Simultaneously, it aims to accelerate the region’s transition to green economy. Chapters 22 (regional policy) and 27 (environment) of the acquis have pivotal roles in guiding the Western Balkans’ efforts towards sustainable growth. The implementation of these chapters requires significant administrative capacities, including at the local level responsible for the implementation of large parts of the acquis, and strategic planning that the Strategy will help to develop. The Strategy will thus complement the negotiating framework and the other non-financial and financial instruments deployed by the Commission to accompany the candidate countries towards membership.

·Capacity building. Administrative capacity at all levels, governance and the involvement of civil society in policy making are preconditions for economic and social prosperity and cohesion. Therefore the revised action plan builds on a coherent set of targeted priorities prepared by each participating country, in consultation with relevant stakeholders, including partner countries’ local and regional representative bodies and authorities, social partners and civil society organisations. All pillars and all their topics, where relevant and necessary, must contribute to capacity building and to the quality of governance in the region. In particular, policy coherence for sustainable development must be taken into account in order to allow for the five pillars to be carried out in a mutually supported and integrated way.

·Research, innovation and development. Future oriented development requires research to generate knowledge and innovation to translate innovations into new products, markets, and services. The revised action plan is designed to align science and research in the candidate countries with European Research Area, promoting Open Science by granting Western Balkans partner countries’ researchers’ free access to the research publications. By these measures the Strategy will aim to improve candidate countries’ places in the European Innovation Scoreboard and support innovative SMEs and start-ups to take-up the potential of the green and digital solutions. All pillars and all their topics, where relevant, must contribute to strengthening research and innovation and link actions to relevant national and regional smart specialisation strategies. This should be done through better and stronger cooperation between national and regional governance structures responsible for smart specialisation strategies. This networking and coordination should widen research and development and innovation potential and help to achieve a critical mass within the Adriatic-Ionian region, transforming the existing value chains and creating new ones as well as enabling steeper progress towards the UN Sustainable Development Goals. The Strategy does not have its own financial resources and funding for actions and projects; it has therefore to come from existing financial instruments, including, among other programmes, Horizon Europe. In the context of the Horizon Europe work programme 2026-2027, the Strategy will seek the inclusion of specific actions for the region to strengthening innovation ecosystems in the region, supporting circular economy and biodiversity conservation, as well as promoting research and innovation in blue and green technologies. To be noted the specific impact of the European Research Area in the alignment of science and research in candidate countries.

In addition to the above topics, climate change and the green transition to a carbon-neutral and resilient Europe are widely considered by all pillars. They are of particular importance as the region – and especially the Western Balkans –is most heavily affected by the impact of climate change, as it might face considerable and higher than elsewhere in Europe increases in temperature. Estimations suggest temperature may increase by 1.7 to 4.0 °C, and even exceeding 5.0 °C by the end of the century, depending on the global effort in greenhouse gases emission reduction.

The revised Strategy fully aligns with a human rights-based approach, as well as mechanisms and instruments that ensure gender mainstreaming and equal opportunities, and will aim to further intensify the efforts undertaken by the authorities towards further consolidating, protecting, and promoting equal opportunities and gender equality. Compliance with these principles requires involvement and consultation of a wide group of civil society and equality bodies advocating for people with disabilities, persons of migrant background or of marginalised group such as Roma, gender equality bodies, etc. to ensure equality mainstreaming of all pillars and topics. The European Pillar of Social Rights on Gender Equality, as well as the EU gender equality strategy 2020-2025, the EU Pay Transparency Directive and the EU Directive on combating violence against women and domestic violence are to be considered by all pillars, topics and actions. All activities that contribute to the objectives and targets of the revised action plan must be in accordance with the Charter of Fundamental Rights of the EU and the UN Convention on the rights of persons with disabilities. This ensures compliance with the principles of gender equality, equal opportunities, and suppression of discrimination. Actions and topics within the Strategy will be encouraged to include activities that specifically address issues of gender equality and the inclusion of marginalised groups.

Cross-cutting topics could have been thematic pillars in their own right but they were found to overlap with the existing pillars. Therefore, these topics have been identified as cross-cutting as they are to be addressed by several topics of the pillars. These topics are:

·Circular economy. The green transition implies implementing circular economy approaches in a wide range of sectors and places. This requires focus on connecting (national/regional) circular economy entities responsible for national/regional coordination in participating countries, searching for synergies in achieving EU policy goals. Good practices present a useful source of information for capacity building and exchange of experience between participating countries but are not enough. The involvement of national/regional stakeholders this would support matchmaking and development of value chains in the entire region and encourage uptake of EU initiatives related to circular economy in Western Balkan countries.

This topic concerns in particular pillar 1 with focus on green & blue technology reducing human impact on environment and waters, pillar 2 with focus on renewable energy, and pillar 4 with focus on sustainable and green tourism.

·Green rural development. Rural areas are an important part of the Adriatic-Ionian region; they underpin a wide range of economic and societal activities and are often home to natural and cultural heritage. In line with areas of action of Long-term Vision for the EU’s Rural Areas this topic is addressed by pillar 1 with focus on sustainable fisheries and support to local communities, pillar 2 with focus on sustainable energy production also in rural areas and sustainable mobility in rural areas, pillar 3 with regard to the management of the environment in rural areas and sustainable agriculture practices, pillar 4 with focus on sustainable rural tourism as well as pillar 5 with fight against brain drain. Rural areas are also addressed by horizontal and cross-cutting topics that support living conditions and economic development of rural areas through digitalisation and connectivity, and though raising importance of digital networks (4/5 G, optic) in rural areas making available digital public services.

·Digitalisation. Under this topic the priority is to set up the network of digital innovation hubs in the region, while at the same time building stronger connections within the network. This would increase availability of digital innovation tools, such as AI and the internet of things. This will concern in particular pillar 1 with a focus on digitalisation-related green & blue technology, pillar 2 with a focus on digitalisation in transport and energy, pillar 3 with a focus on digital sustainability solutions, pillar 4 with a focus on digitalisation in tourism and pillar 5 with a focus to digitalisation in the employment.

III.Governance, funding, monitoring and evaluation

The revised action plan goes with the adaptation of the governance system. In short, the main structures of the Strategy governance are:

·Governing Board is a decision-making body and provides strategic guidance for the implementation of the action plan, to the Thematic Steering Groups, National Coordinators and governance support structure, decides the monitoring and evaluation activities, and assesses the progress of the implementation of the action plan.

·National Coordinators carry out national coordination and consolidation tasks related to the Strategy, by ensuring links and coordination with the relevant administrations and stakeholders, and present strategic national positions in the Strategy governance and implementation processes.

·The Strategy’s Youth Council is a platform for institutional involvement of young people (18-29 years) in all governance bodies to make their ideas and viewpoints heard and considered. Youth will have an active role in communicating, orientating and implementing the Strategy.

·Thematic Steering Groups coordinate and drive the implementation work under their respective pillars. There is one Thematic Steering Group per pillar with the exception of pillar 2, where there are two sub-groups for transport and energy.

·Pillar coordinators coordinate the work of the respective Thematic Steering Groups. Usually, for every Thematic Steering Group the pillar coordination is shared by at least two coordinators, whenever feasible coming from two participating countries, one from an EU Member State and one from an EU candidate country or San Marino.

·The Governance Facility Point and the other projects supporting Strategy governance provide technical and content related assistance to the implementation of the action plan, including support to the Governing Board, National Coordinators, Thematic Steering Groups and pillar coordinators, and facilitate macro-regional (cross-pillar) actions and capacity building for stakeholders and key implementers. The Facility Point with its four functions has the main supporting and coordinating role in supporting the Strategy’s governance bodies, in decision-making and capacity building, in communicating the Strategy and in monitoring and evaluation of the Strategy. The Stakeholders’ Engagement Point encourages engagement with stakeholders, supports financial dialogues and embedding of the action plan and together with the Strategic Implementation Project supports the implementation of the Action Plan.

The pillars are currently coordinated by the following participating countries:

1.Pillar 1: Greece, Montenegro,

2.Pillar 2: Italy, Serbia, North Macedonia,

3.Pillar 3: Slovenia, Bosnia and Herzegovina,

4.Pillar 4: Croatia, Albania,

5.Pillar 5: Croatia, Bosnia and Herzegovina.

The Strategy does not have own financial resources. Funding for actions and projects under the Strategy has to come from existing financial instruments. It is of importance to mobilise and use all EU, national and regional programmes and funding sources. Besides the cohesion policy and IPA funds (including Western Balkan Investment Framework initiative) 1 , these are, as an example, the European Agricultural Fund for Rural Development, the European Maritime, Fisheries and Aquaculture Fund, Horizon Europe, Connecting Europe Facility-Transport supporting the Trans-European Networks for Transport (TEN-T), Connecting Europe Facility-Energy supporting the Trans-European Networks for Energy (TEN-E), the Digital Europe, Erasmus+, and LIFE.

Furthermore, EU territorial tools such as Integrated Territorial Investments, Community-Led Local development, local action groups under LEADER, ‘renewable energy communities’ and ‘citizen energy communities’, smart villages, etc. are important approaches to be mobilised by the revised Strategy.

Other means are available, notably from the European Investment Bank and other International Financial Institutions.

All funding sources have their own eligibility rules, selection criteria and implementation arrangements. The managing authorities of EU funding programmes play an important role by ensuring the embedding of the actions of the revised action plan into their programmes and projects. This requires close and long-term cooperation with the managing authorities through establishment of operational networks of managing authorities and National IPA Coordinators. National Coordinators and members of Thematic Steering Groups cooperate with managing authorities and NIPACs at the national level, with other National Coordinators on the strategic level, and with members of the Thematic Steering Groups on the operational level.

IV.Action plan as rolling implementation tool

Operationally the action plan revisions should be aligned with the Multiannual Financial Framework programming to provide agreements on macro-regional thematic priorities to be embedded in the new programmes. In between revisions adjustments to the action plan are still possible.

The rolling character of the action plan provides all pillars and topics the chance to further develop and fine-tune their actions in the years to come, to be able to better respond to changing contexts and possible new crises, challenges and opportunities. The revised action plan is a ‘rolling document’, which implies that the Governing Board and Thematic Steering Groups should remain attentive and adopt appropriate actions if there is a need for adaptation.

Based on results of monitoring and evaluation, Commission reports and observed trends in the region, the Thematic Steering Groups might propose readjustments of existing topics and/or actions or even new topics and/or actions to the action plan. When duly justified, the Governing Board will approve such changes.

In addition, as a rule, and where appropriate, the Thematic Steering Groups, in cooperation with the National Coordinators, Revision Working Group and Governing Board, must undertake efforts to strengthen the focus and targeting of the pillars, also considering the integration of horizontal and cross-cutting issues into the actions – rather than at the level of topics – where appropriate. Based on the more focused pillars, this will also include setting appropriate measurable indicators and targets that can measure whether the Strategy is getting closer to the specific objectives. The new indicators can take inspiration from past monitoring reports and evaluations of the Strategy, the indicators used in other macro-regional strategies as well as the indicators for cohesion policy or IPA programmes set out in the regulations. The proposal for the strengthened focus and targeting of the pillars will be adopted by the Governing Board.

V.Organisation of the action plan

Besides the horizontal and cross-cutting topics already described in this first chapter, the revised action plan is structured to reflect the five pillars as well as the topics selected under each pillar. Accordingly, the action plan incorporates the following features:

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

·Topics under each pillar represent the main areas in which the macro-regional Strategy brings added value. For each topic, the revised action plan presents the issue and indicates what specific contribution it will bring.

·Actions under each topic are the interventions which the Strategy governance structures and stakeholders plan to carry out to address the set objectives and targets. These include e.g. new approaches, increased coordination in policy making, policy reviews, support to a process already underway, and networking initiatives. The Thematic Steering Groups assisted by the governance support structure will translate the actions into concrete project development processes and together with stakeholders bring added value to the region.

1.Pillar 1 –Blue Sustainable Economy

The Adriatic-Ionian region is rich in natural resources and biodiversity. However, it remains vulnerable to natural disasters, overexploitation of natural capital and resources and pollution. Sustainable fisheries and aquaculture are important sectors in the Adriatic-Ionian region, not only due to their economic and ecological contributions, but also due to social and cultural traditions. This concerns seas, coastal areas, islands, lake areas and transitional waters, river areas, and catchment areas of important water bodies (e.g. the whole hydrosphere).

Marine and maritime services encompass a wide range of activities, including shipping, port management, coastal tourism, biotechnology, fisheries, aquaculture, environmental protection and restoration, or research, among others. These activities are major drivers of economic growth, job creation and trade facilitation in the Adriatic-Ionian region and often constitute and include cross-pillar issues. The blue sustainable economy encompasses a spectrum of endeavours, including activities that are both land-based and marine-based, such as fish processing, sensor manufacturing and creating value from fish by-products and unavoidable unwanted catches. It is also significantly influenced by the dynamic interaction between land and sea at the coastal interface, influenced by factors like riverine inputs and human activities. Nonetheless, it is important to recognise that blue economy value chains will invariably involve some form of application, utilisation, or reliance on marine and coastal environments, resources, or data.

To fulfil these aims, many challenges must be overcome. First, there are imbalances in innovative capacity, access to knowledge and research networks. There are also considerable differences in access to funding and administrative capacity, especially between EU and candidate countries. Candidate countries are often limited by the lack of support schemes and by obsolete technologies, which restrain their research, development and innovation potential. Overexploitation of natural resources is one other main challenge, leaving the local fauna in danger, and polluting the environment with an excess of nutrients, pesticides and antibiotics. This also includes the lack of effective waste management, which can result in the accumulation of large amounts of marine litter in the region. Moreover, the Adriatic-Ionian region, like the whole Mediterranean is highly exposed and sensitive to the effects of climate change.

The Strategy sets out to further promote the sustainable and responsible use of its natural resources, ensuring its conscious exploration and the creation of added value. It aims to develop innovative technologies, to strengthen the regional market by enhancing cooperation and clustering in the region, as well as stakeholder involvement and interrelation of businesses, and to increase competitiveness in related sectors both in coastal and inland areas always preserving and improving the environmental condition of the sea, coasts and inland waters (rivers and lakes). All of this will help to ensure comparable production and common and shared environmental standards across the entire region, and in compliance with the EU acquis.

In addition, this strategic framework outlines a comprehensive approach to address the challenges, capitalise on the opportunities, restore ocean and coastal ecosystems, and promote the adoption of blue and green technologies in the whole maritime and inland water bodies, sustainable and competitive fisheries and aquaculture and maritime and marine governance and services in the Adriatic-Ionian region. Achieving these objectives will require collaboration among governments, local communities, industry stakeholders, the Academic and Research Communities and international organisations to safeguard the region’s marine and freshwater resources and promote economic development.

Over the past few years, the Adriatic-Ionian region has gained experience in successful macro-regional cooperation, especially thanks to the networks of the largest ports of the region, of research institutions, of business organisation and clusters, and of regional authorities. This pillar provides continuation for these networks and addresses the region’s challenges by promoting further forms of cooperation. This includes the facilitation of cooperation and networking between national and EU-funded research and innovation activities and the development of regional innovation communities. The Strategy supports the coordination of policies aimed at science and research and promotes the use of EU instruments to support research and innovation in blue and green technologies. It also promotes research collaboration, joint projects and sharing of research infrastructure.

Energy is a major cost item in EU fisheries and aquaculture. The recent energy crisis has hit the aquatic food sector hard, notably because of increased marine diesel prices, exposing one of its major vulnerabilities: high dependency on fossil fuels. A move towards alternative energy sources would not only address this vulnerability but also contribute to the objectives of the European Green Deal and the EU’s commitment to become climate-neutral. On 21 February 2023, the European Commission published a ‘fisheries and oceans’ package, which includes an action plan on decarbonising and enhancing the sustainability of EU fisheries and aquaculture. The plan outlines two change directions: to increase energy efficiency in the short to medium term while gradually switching from fossil fuels to renewable energy sources.

Pillar 1 focuses on three topics:

1. To strengthen blue and green technologies, by promoting synergies and networking of regional relevant and useful research, development and innovation activities as well as supporting initiatives and cooperation between regional innovation ecosystems, initiatives and smart specialisation strategies.

2. To strengthen sustainable fisheries and aquaculture, through networking policy practices, business practices, research findings and other important assets (in maritime and lake environments) in the Adriatic-Ionian region.

3. Supporting maritime and marine governance and services, to make better use of the skills that are available and equip people with new skills (including soft skills) that are needed.

1.1Topic – Blue and green technologies

Global objectives. Blue and green technologies are essential for the transition to a competitive, climate-neutral and resilient sustainable economy, i.e. the implementation of the EU Green Deal and the Green Agenda for the Western Balkans. This involves the promotion of research, innovation and business opportunities in sustainable blue economy sectors, by strengthening quadruple helix ties and synergies among ongoing initiatives and projects in the region. The focus goes beyond the immediate marine and maritime areas; it also involves other natural habitats such as rivers, lakes and transitional waters, including the flora and fauna therein. It also targets the exploitation of the not yet (fully) utilised potentials which contribute to a sustainable technology and economic transitions regardless of where they are located.

Strategy objectives. The evolution of the marine and maritime sector and the growing importance of water as a key resource for sustainability require a unified approach at the Strategy level. To promote research, innovation and business opportunities for the marine and maritime technologies and blue biotechnology, there is a need to strengthen synergies among initiatives and funding programmes active in the area and cooperation between EU Member states and candidate countries. The overall objective is to maximise progress in research, technological development and innovation to help solve societal challenges by creating synergies between smart specialisation approaches and strengthening the quadruple helix ties between research units, business support organisations, SME and sector-specific business associations and clusters in the field of green and blue technologies in the region. This may also involve improving shipbuilding technology to strengthen green shipbuilding. This involves promoting

·synergies and networking to jointly work for relevant research, development and innovation activities and initiatives;

·networking and cooperation between macro-regional innovation systems, initiatives and smart specialisation strategies of the Adriatic-Ionian region;

·macro-regional innovation collaboration and investments;

·exchanges between the business sector and the research world;

·support blue-green SMEs of the Adriatic-Ionian region to develop favourable framework conditions for their internationalisation through cooperation and access to finance for SMEs as well as the promotion of start-ups and SME growth and development.

1.1.1Strategy specificities opportunities & challenges

The above objectives, based on an analysis of the opportunities and challenges below, illustrate that the Adriatic-Ionian region faces a number of specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·Capitalising on Adriatic-Ionian regions, which are among the fastest growing innovation performers in the EU.

·Collaboration between lagging regions and more developed regions can improve and facilitate knowledge transfer, technological upgrading and entrepreneurship.

·Easier access to finance can promote innovative companies and start-ups for marine and maritime technologies and blue biotechnology.

·Developing competitive macro-regional platforms for an enhanced collaborative ecosystem for research, innovation, entrepreneurship, where SMEs can foster the development of existing Research, Development and Innovation cooperation in the different technology fields through with strategic and complementary actions that would have a stronger impact and more scalable results.

·Explore possibilities to link marine and maritime technologies and biotechnologies with landlocked countries, and to link with scientific activities in the internal waters such as in rivers and lakes.

Challenges:

·Increasing disparities in innovation performance between EU and candidate countries.

·Lagging regions underrepresented in competitive programmes such as Horizon Europe.

·Asymmetries in common connecting and exploiting synergies between landlocked countries and countries with access to the sea, and thus in finding common goals.

·Insufficient support in terms of funding and marketing operations, lack of specific national policies and/or legislation under which blue (bio) technologies could be developed and implemented,

·Fragmentation of the sector, lack of established blue biotech value chains, underdeveloped collaboration between science-industry-policy makers.

·In candidate countries, only few research groups and networks are actively involved in this sector and generally they are not specialised in blue (bio) technologies.

·Lack of cooperation and networking between research institutions and the private sector of marine and maritime technology enterprises, and the common use of resources for developing certain products with common standards.

1.1.2Support to horizontal and cross-cutting topics

Activities under this topic contribute to the horizontal and cross-cutting topics of the revised action plan in the following manner:

Horizontal topics:

·Enlargement. The activities will help the candidate countries to better integrate with EU Member States in the field of research and innovation related to blue and green economy and technology. More specifically, the enlargement activities are related to the EU acquis Chapters 3 (right of establishment and freedom to provide services), 6 (company law), 7 (intellectual property law), 8 (competition), 18 (statistics), 20 (enterprise and industrial policy), 22 (regional policy and coordination of structural instruments), 25 (science and research), 26 (education and culture), 27 (environment), 28 (consumer and health protection).

·Capacity building. The activities have a strong research and innovation focus which subsequently will contribute to increasing capacities among relevant players in the region.

·Innovation and research. The activities are directly targeted to strengthening innovation ecosystems and research in accordance with respective smart specialisation communities with aim of building macro-regional S3s on sustainable blue economy and green technologies.

Cross-cutting topics:

·Circular economy. Blue and green technologies are important enabling components of the circular economy and of the ecological transition. Using developed and new system business models/initiatives (such as Climate-KIC) 2 in participating countries to support implementation of the circular economy and value chains development.

·Green rural development. The topic does not include an explicit link to green rural development activities. However, some of the activities related to aquaculture and coastal bioeconomy can contribute to the regeneration of some rural areas. Building on smart community/village concept to support sustainable development of the rural areas using also green and blue technologies.

·Digitalisation. The digital transition will be supported e.g. through activities related to the development of favourable framework conditions for the adoption of technological and digital solutions in the field of blue and green growth; the strengthening of digital innovation hubs will facilitate cooperation and networking between national and EU-funded research and innovation initiatives.

·Nature preservation and restoration. Any economic development must be sustainable. This implies decoupling the use of natural resources from economic growth, tackling climate change, biodiversity loss and pollution. This must be the priority of all actions, with environmental impacts being duly monitored.

1.1.3Action – Building Adriatic-Ionian region innovation systems that will promote research and innovation networks in green and blue technologies

*: Horizontal topic expected result/target of the action

**: Cross-cutting topic expected result/target of the action

P1F1: Pillar 1 Flagship 1 for Topic 1.1.

1.2Topic – Fisheries and aquaculture

Global objectives. Sustainable aquaculture and fisheries management is a central part of a sustainable regional development, especially in coastal areas and rural regions.

The aim of the Common Fisheries Policy is to ensure that fishing and aquaculture activities are environmentally sustainable in the long-term and are managed in a way that is consistent with the objectives of achieving economic, social and employment benefits, and of contributing to the availability of food supplies 4 and food security. Aquaculture and fisheries represent critical sectors in the Adriatic-Ionian’s economy and their responsible management is vital to ensure long-term environmental, social and economic viability as they have the potential to drive economic growth and create job opportunities in the region. The Strategy aims to harness these sectors for the benefit of local economies and ensure a consistent supply of aquatic food products to meet the region’s food security needs and envisions a future where aquaculture and fisheries are sustainable, environmentally responsible and, social and economically beneficial.

Strategy objectives. The overall objective is to support cooperation efforts aiming at networking policy practices, business practices, research findings and other important assets to strengthen the fisheries and aquaculture sectors (in maritime and inland environments) in the Adriatic-Ionian region.

In the region, fisheries and aquaculture are an integral part of the cultural, social and economic fabric. However, several challenges have emerged that have changed the approach for sustainable and competitive fisheries and aquaculture. In fisheries, catch levels are lower compared to decades ago; this has led to restrictions and common management measures. Increasing human pressures on the marine environment and demographic changes have also produced changes in the predominantly small-scale fisheries of the region. On the other hand, aquaculture production has grown in the past decades compared to fisheries. Although the growth in aquaculture might be comparatively slower than in some other countries globally, it remains a valuable component of the region’s aquatic food industry. Aquaculture offers several benefits, including the production of nutritious and high-quality aquatic food products, which are vital for food security and a healthy diet. Furthermore, it contributes to employment opportunities, bolstering the regional economy and livelihoods. Additionally, certain types of aquaculture can provide climate-mitigation services (such as carbon sequestration), climate-adaptation services (such as nature-based coastal protection), or ecosystem services (such as ponds or wetlands). This type of aquaculture should be promoted. There is a need for action to build upon existing fishery and aquaculture resources in order to ensure a sustainable, resilient, and competitive future.

Sustainable aquaculture and fisheries management covering the Adriatic and Ionian Seas and relevant inland waters involves the coordination of many inter-sectoral and transboundary issues and responsibilities for better management of the natural resources. Effective and better fisheries management at the sea and relevant inland waters requires strong coordination between the different macro-regional strategies. In this context, close collaboration of relevant envisaged activities for inland waters, which have been identified in the Danube macro-regional strategy (EUSDR) is required to avoid duplication.

Strategy actions under this topic are also related to other pillars, in particular activities in the Adriatic-Ionian region promoting: a) sustainable maritime governance and spatial planning; b) circularity in fishery and aquaculture activities, c) green maritime transport and ports; d) maritime clusters set up as an innovative enabler for a sustainable blue (bio) economy and e) sustainable maritime, coastal, and rivers and lake tourism.

1.2.1Strategy specificities opportunities & challenges

Linked to the above objectives, the Adriatic-Ionian region faces a number of specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·Growing demand and market prices for fishery products.

·Under the umbrella of the General Fisheries Commission for the Mediterranean, coordination efforts and joint multiannual fisheries management are being organised to avert overfishing and the decrease of stocks and they are showing encouraging results.

·Establishment of marine protected areas, other effective area-based conservation measures and/or Ecological and Fishery Protection Zones, like the Jabuka/Pomo Pit area in the Central Adriatic, to protect valuable marine habitats, preserve the marine biodiversity and ensure the long-term health of fish stocks.

·Sustainable fisheries and aquaculture value chains are well developed in the Adriatic-Ionian region and they contribute to the socio-economic fabric of the region.

·Further explore and tap into the role of fishery operators for the conservation of the sea.

·Small-scale coastal fishing has a pivotal role in regional development of coastal regions, as it is key for other areas of development (e.g. employment, environment, tourism).

·Huge potential to diversify fisheries and further explore the link between fisheries, aquaculture, wildlife watching, recreational activities, and tourism which have not yet been explored extensively.

·Sustainable aquaculture production continues to grow due to high demand and restrictions to traditional fishing, with a positive role for farmed aquaculture products for environmental sustainability and food security (including micro and macroalgae).

·The Adriatic-Ionian region has several freshwater resources, with numerous lakes and rivers, which can be explored for sustainable use (fisheries, aquaculture, tourism activities).

·Setup a maritime spatial planning to accommodate green and blue maritime activities, Allocated Zones for Aquaculture, renewable energy production, marine protected areas and improve and align the legal framework for such investments. Missing data concerning some fish stock assessments.

·Compliance with existing regulations leading to the need to renovate and restructure fishing fleets and to improve fishing gear efficiency and sustainability; for example, through selectivity and new, less polluting engines.

Challenges:

·The situation of some exploited stocks in the Adriatic-Ionian needs close monitoring.

·Lack of coordinated and agreed solutions to reduce overfishing (e.g. fishing quotas, expanding recreational fishing, maritime and river-based tourism).

·Lack of compliance, data quality and well as monitoring, control, inspections and surveillance capacity in some Adriatic-Ionian countries.

·Lack of monitoring throughout the region with regards to assessment and implementation of fishery management plans that are introduced to achieve maximum sustainable yields and resource conservation.

·Lack of coordinated restoration/protection activities on freshwater resources to ensure healthy and sustainable freshwater ecosystems.

·Low rate of adaptation to institutionalised spatial planning: existing areas designated for aquaculture are fully occupied, and conflicts with other uses (e.g. tourism) provide limited spatial possibilities for coastal marine aquaculture development.

·Negative effects on the environment and ecosystems through some human (aquaculture, tourism, etc) activities that are not environmentally sustainable.

·High levels of pollution in the Adriatic and Ionian Seas and freshwater ecosystems due to marine litter, microplastic, pesticides, antibiotics, excess of nutrients, etc.

·Low level of skills, education, and knowledge in traditional small-scale fisheries, in the fish processing value chain and in the aquaculture sector. This includes low level of adaptation to new business concepts/activities and digitalisation.

·Complex and not harmonised processes for licences and authorisation of fisheries, aquaculture and land-based fish-farming installations across the region.

·Climate change results in sea warming that promotes the migration and installation of Invasive Alien Species to the Adriatic-Ionian latitudes that outcompete or even drive endemic species to extinction.

1.2.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. The activities help the candidate countries to better integrate with EU Member States in EU fishery policies and compliance of candidate countries with the EU acquis in the fields of fisheries, environmental protection, training and education. In more detail, the enlargement activities are related to the EU acquis Chapters 8 (competition), 12 (food safety and veterinary policy), 13 (Fisheries), 18 (statistics), 20 (enterprise and industrial policy), 25 (science and research), 26 (education and culture), 27 (environment), 28 (consumer and health protection).

·Capacity building. The activities have a strong focus on capacity building and training e.g. related to diversifying activities for fishers, sustainability, new technology and practices as well as funding opportunities in the fields of sustainable fisheries and aquaculture.

·Innovation and research. The activities include a number of proposals related to research projects, technological pilots, capacity building and investments regarding e.g. the use of aquaculture products (fish, algae etc.) for other purposes (pharmacy, cosmetics, etc.) and new fish products and new species in aquaculture.

Cross-cutting topics:

·Circular economy. Sustainable fisheries and aquaculture are sectors which are directly relevant for the transition to a circular economy.

·Green rural development. The topic does not include an explicit link to green rural development activities. However, some of the activities will be related to better using the resources of rural areas.

·Digitalisation. The digital transition can be supported e.g. through activities related to digitalisation in the fisheries and aquaculture sectors, e.g. from harvest to distribution using Internet of things, data science, digital monitoring systems and predictive microbiology.

·Nature restoration. [see above, previous section].

1.2.3Action – Sustainable, resilient and competitive fisheries in the Adriatic-Ionian region

*: Horizontal topic expected result/target of the action

**: Cross-cutting topic expected result/target of the action

P1F2: Pillar 1 Flagship 2 for Topic 1.2, Action 1.2.1.

1.2.4Action – Sustainable, resilient and competitive aquaculture in the Adriatic-Ionian region

*: Horizontal topic expected result/target of the action

**: Cross-cutting topic expected result/target of the action

P1F2: Pillar 1 Flagship 2 for Topic 1.2, Action 1.2.2.

1.3Topic – Maritime and marine governance and services

Global objectives. Maritime and marine governance and services are essential for the sound management of shared resources. This involves improved governance of maritime space and land-sea interactions as well as improved skills and capacities of the relevant players. This covers a wide range of fields including the development of capacities to harmonise standards and regulations to improve the sustainable governance use of maritime technologies and marine resources, including standardisation at macro-regional level to enable a technological leap forward. A key is increased data exchange, knowledge sharing and cooperation of planning and control authorities to ensure a sustainable management of natural resources; and furthermore to promote the use of digital technologies and new technological tools for planning and land-use/marine space analysis and control including hydrodynamic oceanographic models. To contribute to the offshore renewable energy EU targets by 2030 and beyond and to the energy efficiency and transition in sustainable fisheries and aquaculture.

Strategy objectives. The overall objective is to support cooperation among players in the Adriatic-Ionian region to make better use of the skills that are available and equip people with new skills (including soft skills) that are needed. This covers a wide range of fields including the cooperation of maritime and land-based spatial planning and governance of maritime and land-sea space.

The effective governance and services in the maritime and marine domains are essential for the sustainable and integrated development of the region and includes Maritime Spatial Planning of man-made activities that should balance economic development, environmental protection and social wellbeing in the Adriatic-Ionian region. Therefore, it has strong links with the other four pillars of the Strategy.

The Strategy for the future should implement an integrated maritime policy that coordinates and harmonises various activities that take place in the marine environment, including maritime transport, aquaculture, fisheries, marine protected areas, marine reserves and conservation zones to safeguard fragile ecosystems, biodiversity, and endangered species, preservation of submerged cultural heritage sites, including shipwrecks and archaeological relics, port infrastructure, energy generation including siting and regulating offshore energy installations, such as wind farms, wave energy devices and oil and gas drilling platforms, to ensure their safety and minimise environmental impacts. It also includes designate areas for marine tourism, recreational activities and the development of tourism infrastructure (Pillar 4), planning and maintaining underwater telecommunication cables, pipelines for oil and gas transport and electricity transmission lines require careful coordination in Maritime Spatial Planning to avoid conflicts and environmental damage. The Strategy should include activities related to prevent marine litter pollution from plastics and other emerging pollutants, and plans for the clean-up of marine pollution, such as oil spills and the removal of marine debris, that should be integrated into Maritime Spatial Planning plans to protect the marine environment (synergies with Pillar 3). Strengthening grid infrastructure and interregional cooperation by promoting the development of offshore wind energy and energy efficiency in complementarity with Pillar 2 by building a substantial offshore power grid and Pillar 3 by incorporating marine renewables in the Maritime Spatial Planning.

1.3.1Strategy specificities opportunities & challenges

Linked to the above objectives, the Adriatic-Ionian region faces several identified challenges and opportunities which the revised action plan aims to address.

Opportunities:

·Strengthening cooperation between developed and underdeveloped countries that significant potential for innovation and new business opportunities.

·Capitalisation on existing results, implemented activities and projects within the Strategy, the Interreg ADRION programme, IPA funding and others.

·Developing cooperation of the Strategy pillars with other macro-regional strategies and initiatives.

·Accelerating the implementation of relevant policies in the Adriatic-Ionian region and related challenges of joint interest to the Strategy territory and scope.

·Increased promotion of the blue economy, on islands and coastal areas, offers significant potential in relation to the exploitation of marine resources for food, food and health products, management and protection of marine and coastal areas, maritime transport, shipbuilding, and shipping services, as well as marine renewable energy.

·The green and digital transition processes are rooted in skills; therefore, it is necessary to strengthen and create skills (upskilling and reskilling) in order to achieve transitions.

·To incorporate the offshore renewable energy and energy efficiency measures applied to ports and vessels into the Maritime Spatial Plans and marine governance and services.

Challenges:

·Maritime Spatial Planning implementation across borders of the maritime spatial plans is not coherent, although developed to reduce conflicts and create synergies between different activities.

·Urgent need for training in the use of new technologies, oceanographic models, remote robotics, smart devices, etc. A new workforce is emerging, which should handle these devices and technologies properly.

·The multi-use of marine space is creating challenges due to conflicting activities: renewable energy, aquaculture, nature conservation, underwater heritage, shipwrecks, and tourism. There are many and often different obstacles in the current legal framework of each participating country to facilitate the multi-use of marine space.

·Increase of pollution due to macro and microplastics, pesticides, antibiotics, etc. associated with the activities in the area.

·Geographical, economic, environmental, and demographic disadvantages and challenges of island regions, while at the same time the vulnerability of their natural living conditions and productive systems is high.

1.3.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. The activities help the candidate countries to better integrate with EU Member States in field of EU maritime and marine policies through the support to the harmonisation of standards and regulations to improve the sustainable governance use of maritime and marine resources and promotion of digital solutions and knowledge exchange among countries. More specifically, the enlargement activities are related to the EU acquis Chapters 3 (right of establishment and freedom to provide services), 6 (company law), 7 (intellectual property law), 8 (competition), 18 (statistics), 20 (enterprise and industrial policy), 22 (regional policy and coordination of structural instruments), 25 (science and research), 26 (education and culture), 27 (environment), 28 (consumer and health protection).

·Capacity building. The activities have a strong focus on capacity building and training e.g. to increase capacities related to the EU maritime and marine policies, harmonise standards and regulations and seizing opportunities or reacting to challenges that can be detected earlier if data and information is shared and analysed across countries. This should also include development of skills in the blue professions/ improvement of the levels of skills and expertise of people working in sectors such as maritime transport, coastal and marine tourism, aquaculture and fisheries, marine hydrocarbon extraction, maritime transport and port activities, shipbuilding and ship repair activities, marine renewable energy sources, blue biotechnology, New technologies at sea and shipping. Furthermore, it will lead to an improvement of skills and expertise in the offshore renewable energy and energy efficiency sector.

·Innovation and research. The activities include several proposals related to data exchange and digital technological tools in maritime and territorial spatial planning, governance and services, including the promotion of innovative and smart transformation of island production systems by strengthening and diversifying local production based on smart specialisation. Also, strengthening and supporting, through the Smart Specialisation, the energy efficiency in the local fisheries and aquaculture production systems in the Adriatic- Ionian region.

Cross-cutting topics:

·Circular economy. Maritime and marine governance are directly relevant for the transition to a circular economy as they help to shape the preconditions for the transition to a circular economy in these fields.

·Green rural development. The topic does not include an explicit link to green rural development activities. However, some of the activities will probably be related to better utilising resources of rural areas and strengthening entrepreneurship and local cooperative schemes, in coastal areas including islands.

·Digitalisation. The digital transition can be supported e.g. through activities related to the use of digital tools in maritime and territorial spatial planning, governance and services, including e.g. data exchange platforms, strengthening maritime surveillance and improving the level of navigation safety.

The activities within the Maritime and Marine Governance and Services topic serve as a crucial catalyst for advancing both horizontal and cross-cutting aspects of the revised action plan, driving harmonisation, capacity building, innovation and green transition while embracing sustainability and forward-looking practices.

1.3.3Action – Institutional capacity to harmonise standards and regulations

*: Horizontal topic expected result/target of the action

**: Cross-cutting topic expected result/target of the action

P1F3: Pillar 1 Flagship 3 for Topic 1.3, Action 1.3.1.

1.3.4Action – Data exchange and knowledge sharing

1.3.5Action – Promote the development of skills and digital technological tools in the maritime industry and territorial spatial planning, governance and services

2.Pillar 2 – Connecting the region

The overall objective of Pillar 2 ‘connecting the region’ is to improve connectivity, integration, and cohesion within the Adriatic-Ionian region and with the EU regarding transport and energy programmes, initiatives, and projects. This objective is requiring thorough coordination of transport and energy policies and initiatives by countries of the Adriatic-Ionian region. Cooperation is envisaged on infrastructure developments and harmonised operation of transport and energy systems to build a region that is more inclusive, cohesive, and competitive.

The region is a geographically diverse place where coastal, mountainous, and insular areas demand investments on technical infrastructures, and many areas are still not well connected. The transport and energy systems of the region are fragmented and outdated. There is a clear need to accelerate the green transition and to cope with the challenge of global climate change while looking at an improved and streamlined governance of the transport and energy systems.

There is a significant potential for quality improvement and better integration of transport and energy systems, removing roadblocks to project investments, focusing on the enabling factors for the creation and development of regional enterprises along the free and regulated European market principles.

Various bottlenecks have limited the development opportunities stemming from the motorways of the sea. Railway transportation is lagging the EU average both in terms of infrastructure, as well as in freight and passenger volumes. In many countries, and especially in Western Balkans, there are inferior quality rail systems and unsafe roads. The network of airports has inadequate capacity to sustain tourism development and connectivity in general, mostly due issues concerning the economy of scale of the related catchment area. At the same time, connectivity is a key asset for Western Balkans within the enlargement process.

In the field of energy, connections can be improved to jointly address the transition towards decarbonised energy systems. Today, not so efficient usage of the existing grid interconnection capacities, preventing the trading activities from being increased and to share balancing reserves and energy to accommodate fluctuating energy from renewable sources is a factor limiting the development of renewable energy sources to a large scale. Hydropower is the most used type of renewable energy in the region. Even though the region has immense potential for the development of renewable energy sources notably, solar and wind energy, it performs below the EU average for solar and wind energy, eco-innovation, and energy efficiency. The Strategy should also ensure appropriate alignment with the National Energy and Climate Plans of the participating Member States.

National programmes and actions can only partially address all the challenges, due to the capital-intensive measures required to improve and upgrade transport and energy networks and systems. Even bilateral cooperation may not be sufficient to overcome bottlenecks and to promote connectivity and cooperation aimed at developing projects of joint interest. Wider macro-regional cooperation consultation and capitalisation are needed to provide services and benefits to the Strategy countries. Most major infrastructure projects and programmes only make sense if looked at from a well-coordinated macro-regional perspective.

In this light, the Strategy sets out to improve connectivity, integration and cohesion within the Adriatic-Ionian region and with the rest of the EU regarding transport and energy programmes and actions. This objective is requiring thorough coordination of transport and energy policies and initiatives, collaboration on infrastructure developments and delivery of transport and energy services. Relations with stakeholders and research of public consensus and support transport and energy infrastructures and projects will be a major concern. The experience of broad long-term frameworks programme studies will be continued. The intent is to update and expand along a three-year period or so studies such as the Strategy master plan on transport for the Adriatic and Ionian region, the Strategy master plan on energy networks for the Adriatic and Ionian region, the roadmap towards a Strategy power exchange and natural gas trading hub for the Adriatic and Ionian region. These framework studies aim at creating consensus on priorities, actions, while identifying problem areas and opportunities for convergence for projects and cooperation along short-term and long-term perspectives.

The Strategy master plan on transport will be updated and upgraded with a view to EU enlargement as envisaged by a key horizontal topic of the Strategy. This activity is cross-cutting the entire Topic 2.1, Topic 2.2 and Topic 2.3 of the action plan.

The specific objectives of the pillar are:

•T1- maritime transport: to strengthen safety and security of port operations and develop a competitive macro-regional interconnected port system;

•T2 – Multi-modal connectivity: to develop reliable multi-modal and intermodal connections with the hinterland, both for freight and passengers;

•T3 Urban nodes: to support the integration of urban nodes and regional transport systems into a greener TEN-T network;

•T4 Energy networks: to achieve a well-interconnected and well-functioning internal energy market supporting the three energy policy objectives of the EU, i.e. confronting climate change, enhancing security of supply and competitiveness;

•T5 Green energy: to confront the challenges of the energy transition towards decarbonised and resilient energy systems, while promoting renewable energy sources and energy efficiency.

In the electricity markets of the Adriatic-Ionian region, the ultimate objective is the development of a well-functioning electricity markets, underpinned by the development and integration of the wholesale market, removal of regulated retail electricity prices, the relieving of network congestions, integration of renewable energy sources into meshed power grids and unhampered cross-border exchanges of electricity, followed by market coupling of the electricity markets of non-EU participating countries with the EU Member States.

A substantial increase in installed capacity and generation from variable solar and wind power are expected in the coming years. Limited interconnection capacities and internal network capacities as well grid capacity to connect renewable energy sources in a large scale, as well as limited balancing resources and non-existence of integrated, liquid and well-functioning day-ahead, intra-day and balancing market, are limiting the development of renewable energy. The existing bottlenecks in the uptake and distribution of solar and wind power need to be thoroughly assessed and addressed.

Electricity infrastructure projects, identified under the EU Projects of Common interest/Projects of Mutual Interest and Energy Community Projects of Energy Community Interest, as well as the Central and South-Eastern Europe Energy Connectivity action plan aim at connecting new renewable energy to the power grid, facilitate market activities and improving the reliability and quality of energy services. The interconnection of electricity grids and sufficient grid capacity are preconditions for large-scale investments in renewable energy and its deployment.

COP28 in December 2023 decided on the ‘transitioning away from fossil fuels by 2050’, so efforts should be dedicated to increasing the share of renewable energy sources. In the natural gas network, limited investments are required in gas transmission infrastructure, to address remaining bottlenecks. Only for facilities needed to meet immediate security of supply needs, natural gas is still viewed as a transient fuel enabling the transition towards decarbonised energy systems through the European Union by the year 2050. In general, lock-in technologies not compliant with the ‘do no significant harm’ principle 7  should be avoided and conditions should be created according to a long-term perspective to shift away from natural gas to renewable and no-carbon gases, in particular biomethane, synthetic methane and hydrogen.

To this end, repurposing of existing gas pipelines for hydrogen transportation should be planned. Regarding natural gas use hydrogen – ready solutions should be envisioned as well as highly efficient cogeneration processes while carbon capture and sequestration technologies and the corresponding investments should receive consideration.

In the short term, increased supply of liquefied natural gas is still envisaged in countries of the Adriatic-Ionian region. Direct use of Liquefied Natural Gas for transport and process industry can also be a transient option because of its lower carbon content as compared with other hydrocarbon fuels. Liquefied Natural Gas terminals might serve as facilities for importing hydrogen in the future, however their potential and technical compatibility for conversion and repurposing is requiring in-depth analysis and simulations.

Based on already existing natural gas infrastructure and infrastructure in the Adriatic-Ionian region, and with the completion of a limited number of interconnectors in the Western Balkans region whose implementation is already ongoing among EU Projects of Common Interest, Projects of Energy Community Interest and REPowerEU Plan, Western Balkan countries will be able to diversify supply sources and routes and to enhance security of energy supply.

Along a mid-term perspective developing natural gas infrastructure would help currently isolated areas and regions to have access to natural gas supplies, to ensure continuous and secure supplies by having networks renovated and modernised, and to bring natural gas from a range of export markets via new routes (notably, the upgraded Trans-Adriatic Pipeline – TAP2). The TAP project has been implemented and its upgrading and doubling of capacity are in progress.

In addition, Liquefied Natural Gas infrastructure in ports and on land enabling new gas import routes and fuel switching to Liquefied Natural Gas would also benefit security of supply and improve environmental quality.

Based on the approach of the European Green Deal, the Communication from the European Commission ‘An Economic and Investment Plan for the Western Balkans’ with its guidelines for the implementation of the ‘Green Agenda for the Western Balkans’ are framing relevant actions on transport and energy while proposing improved connectivity competitive services and alignment with the EU acquis. To achieve its overall objective and specific objectives Pillar 2 will focus and organise according to five topics: Topic 2.1 Maritime transport, Topic 2.2 Intermodal connectivity, Topic 2.3 Urban nodes, Topic 2.4 Energy networks, Topic 2.5 Green energy. The description of the five topics is as follows.

2.1Topic – Maritime transport

Global objectives. Developing maritime transport, in particular motorways of the sea as navigation corridors, is of paramount importance and must go together with the creation of modern and efficient intermodal ports integrating maritime transport with other transport modes such as 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. 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.

Strategy objectives. The Strategy sets out to improve connectivity, integration, and cohesion within the Adriatic-Ionian region and with the EU. The focus is on the coordination of transport policies and initiatives by countries of the Adriatic-Ionian region, collaboration on infrastructure developments and harmonised operation of transport systems.

2.1.1Strategy specificities opportunities & challenges

Linked to the above objectives, the Adriatic-Ionian region faces several specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·A well-established network of motorways of the seas links, with further potential for growth.

·A dynamic port system interconnected to the most relevant TEN-T transport corridors.

·A multipurpose port system integrated in the regional economy and energy industry, located along the One Belt and One Road global initiative.

·Greening ports and maritime transport.

Challenges:

·Lack of safety and security in port operations and resilience of infrastructure.

·Lack of effectiveness of port infrastructure and equipment, hence the lack of competitiveness of maritime transport services.

2.1.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. In the context of transport policy (Chapter 14), enhancing and harmonising traffic monitoring and management within the ports of the Adriatic-Ionian region through the implementation of advanced technologies such as Vessel Traffic Monitoring and Information Systems and IT solutions holds significant potential. Improved traffic monitoring and management not only enhance the overall functionality of ports but also demonstrate a commitment to aligning with EU norms and regulations, making the transition smoother for potential accession.

Furthermore, the harmonisation of monitoring systems for emissions, water quality, and air quality in the Ports of the Adriatic-Ionian region is pivotal for aligning the candidate countries with EU environmental standards (Chapter 27) and for ensuring a sustainable and environmentally responsible approach to port operations, fostering seamless integration with EU Member States. The Strategy master plan on transport will be updated and upgraded with a view to the EU enlargement as envisaged by a key horizontal topic of the Strategy. This activity is cross-cutting with the entire Topic 2.1, Topic 2.2 and Topic 2.3 of the action plan.

·Capacity building. Improving IT solutions and implementing emission monitoring measures in the ports of the Adriatic-Ionian region enhance the region’s maritime capabilities, providing valuable insights into traffic patterns, safety protocols, and navigation efficiency. This, in turn, contributes to capacity building by empowering port authorities with real-time data to make informed decisions and optimise operational processes.

Simultaneously, the monitoring of emissions aligns with contemporary environmental standards, promoting sustainability and responsible maritime practices. Furthermore, cooperation to improve vessel monitoring and emission control measures improve the capacity of the Adriatic-Ionian ports through knowledge sharing and the dissemination of successful strategies, and contribute to a more sustainable, efficient, and informed maritime environment in the broader context of the EU Green Deal.

·Innovation and research. Enhancing IT solutions for vessel monitoring and implementing emissions monitoring in the ports of the Adriatic-Ionian region can serve as a catalyst for innovation and research. The integration of advanced IT solutions in maritime operations not only optimises efficiency but also provides a rich source of data for researchers to explore and analyse. Moreover, monitoring emissions in these ports could stimulate research into cleaner technologies, alternative fuels, and emission reduction strategies, promoting innovation in green shipping practices.

Cross-cutting topics:

·Circular economy. The topic does not include a defined link to circular economy activities. However, advanced technologies, notably Vessel Traffic Monitoring and Information Systems can promote resource efficiency, reduce waste, and encourage the adoption of sustainable practices, aligning the sector with the broader goals of a circular and environmentally responsible economy.

The circular economy is centred on the concept of closing the loop, wherein resources are reused, recycled, and regenerated. Vessel Traffic Monitoring and Information Systems, alongside emission monitoring, contributes to this circularity by fostering a closed-loop approach in maritime operations. Efficient traffic management reduces unnecessary fuel consumption and associated emissions, while monitoring emissions directly addresses the environmental impact of shipping activities.

·Green rural development. The topic does not include an explicit link to green rural development activities, as it the focus is on maritime transport.

·Digitalisation. The implementation of Vessel Traffic Monitoring and Information Systems allows for real-time monitoring and tracking of vessel movements, enhancing overall safety, security, and efficiency in port operations. This not only streamlines maritime traffic but also ensures compliance with international maritime regulations. By adopting modern IT solutions, the Ports of the Adriatic-Ionian region can put in place a cohesive and interoperable framework, promoting seamless communication and data exchange among various stakeholders involved in port management.

The digital transition can be supported e.g. through activities related to use of joint monitoring systems, and more explicitly the identification of bottlenecks for the interoperability of IT systems and solutions in ports including the development and/or improvement of Port Community System.

2.1.3Action – Improving and harmonising traffic monitoring and management

2.1.4Action – Improvement of the interoperability of IT systems and solutions in ports

2.1.5Action – Improving monitoring of environmental quality in ports

2.2Topic – Multi-modal connectivity

Global objectives. A fully operational, multi-modal Trans-European Transport Network (TEN-T) for sustainable and smart connectivity is an objective set out in the EU ‘Sustainable and Smart Mobility Strategy’ and an important asset to achieving the objectives of the European Green Deal. A harmonised and interconnected transport network enhances the efficiency of cross-border movements, reducing transit times and trade barriers. Furthermore, increasing road and rail capacity responds to the growing demands of commerce and travel (Chapter 4). Upgrading and expanding transportation infrastructure not only accommodates rising traffic volumes but also enhances the region’s overall competitiveness, contributing significantly to the seamless integration of the region into the broader TEN-T (Chapter 21).

Strategy objectives. The objective of the topic is to foster the development of effective multi-modal connections, between maritime transport of passengers and goods with landside modes such as rail and road networks, as well as the connection to the main airport nodes. Ports and airports of the Adriatic and Ionian Seas are immediate entry points to the region from abroad, whereas inland waterways provide important international connections to/from the region. An appropriate transport policy must regard all these considerations promoting multimodality, while also considering environmental aspects (e.g. air emission), economic growth and social development.

2.2.1Strategy specificities opportunities & challenges

Linked to the above objectives, the Adriatic-Ionian region faces specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·Rail infrastructure and intermodal nodes belonging to the TEN-T network and mostly to the TEN-T transport corridors.

·Growing positive trends in freight and passenger demand across Europe.

·Rail network already interconnected with most of the ports in the regions.

·Potential growth of air passenger traffic due to tourism activities.

·Increase rail transport capacity, quality and road and rail safety and resilience.

Challenges:

·Multiple and heterogenous transport operators (multi- modes, multi -countries).

·Lack of harmonised of regulation and services among countries.

·Lack of interoperability of infrastructure among countries.

2.2.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. The implementation of ICT in transport infrastructure, coupled with efforts to enhance interoperability, increase road, and rail capacity, stands as a pivotal strategy to bolster the enlargement process of the European Union in the Western Balkans (Chapter 14). By embracing ICT solutions in transportation, the region can achieve heightened connectivity, real-time monitoring, and streamlined logistics. This not only facilitates the smooth flow of goods and people but also aligns the Western Balkans with the advanced technological standards of the EU. Interoperability, achieved through standardised systems and collaborative frameworks, further strengthens the Western Balkans’ integration with the EU.

·Capacity building. The strategic implementation of ICT in transport infrastructure, coupled with a focus on interoperability and increased road and rail capacity, could contribute to capacity building in the Adriatic-Ionian region, since it not only enhances operational efficiency but also fosters continuous learning and skill development, laying the foundation for a well-equipped and knowledgeable workforce capable of managing the region’s evolving transportation needs. By promoting ICT infrastructure and interoperability, the region is better equipped to build the collective expertise necessary for effective transportation management and optimisation.

·Innovation and research. The implementation of ICT transport infrastructure creates a data-rich environment that researchers can leverage to study and to develop innovative solutions for optimising logistics and traffic management. Interoperability enhancements encourage collaboration among transport stakeholders and the exchange of ideas for supplying new mobility services in the region. The Adriatic-Ionian region, with its diverse economic activities and geopolitical significance, can benefit from collaborative research efforts focused on ICT solutions in rail transport. Increasing road and rail capacity paves the way for research into novel technologies and sustainable practices, aligning the region with the latest advancements in transportation. Commitment to modern infrastructure not only stimulates local innovation but also attracts research initiatives and partnerships.

Cross-cutting topics:

·Circular economy. The integration of ICT solutions into rail transport systems, such as smart sensors, predictive analytics, and digital communication, can enhance efficiency, and contribute to circular principles. In fact, streamlining logistics and enhancing overall supply chain efficiency (e.g. minimising delays, reducing idle times, …) optimises resource utilisation, fostering a circular economy by ensuring that transportation resources are used to their maximum potential. Optimising the performance of rail systems contribute to circularity by improving resource efficiency and minimising the environmental footprint associated with rail operations. Develop sustainable infrastructure, and increase the number of EMAS 8 registered ports and maritime infrastructure.

·Green rural development. The topic does not focus on green rural development activities. However, improved multi-modal connectivity and especially road connectivity can also support the development of rural areas offering transport solutions improving overall accessibility.

·Digitalisation. The implementation of innovative ICT solutions in the realm of rail transport holds immense potential for fostering research and innovation in logistics optimisation, traffic management, and sustainable transportation practices. Researchers can explore ways to leverage ICT for real-time monitoring, predictive maintenance, and resource-efficient operations, contributing to advancements in transportation sector and novel approaches to design, construction, and maintenance. ICT solutions, such as advanced simulation models and digital twin technologies, can be employed to test and optimise various scenarios, enabling researchers to develop innovative solutions that enhance capacity while minimising environmental impact.

2.2.3Action – Implementation of ICT infrastructure at nodes and along logistics chains

2.2.4Action – Upgrade of the network to provide continued and interoperable international rail links between countries

2.2.5Action – Increase rail transport capacity and quality in the region

2.3Topic – Urban nodes

Global objectives. Sustainable urban mobility is a key objective of EU urban and mobility policies to enhance mobility and reduce congestion, accidents, and air pollution in urban areas. It aims at improving the overall quality of life for residents and commuters by addressing major challenges related to for example congestion, development of intermodality air/noise pollution, climate change, and road safety and, more generally, transport energy.

Strategy objectives. The objective of the topic is to foster the improvement of urban mobility solutions and transport systems talking/anticipating the challenges and the already existing criticalities deriving from growing urbanisation (urban sprawl) and from some socio-economic (e.g. ageing population) and environmental trends, calling for a reduction of the impacts of passengers and goods mobility in the cities. The improvement of integrated local public transit systems (including ‘last-mile’ solutions, such as active mobility, micromobility, and shared mobility solutions) is essential to increase transport efficiency and to achieve the decarbonisation targets by the promotion of urban low -emission mobility, also in a cross-border framework.

2.3.1Strategy specificities opportunities & challenges

Linked to the above objectives, the Adriatic-Ionian region faces several specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·An extended network of urban nodes belonging to the TEN-T, according to the proposal for the revision of Regulation (EU) 1315/2013.

·Development of Multifunctional urban nodes, many of them also representing tourism attractions and/or classifiable as city-ports.

·Development of accessible and safe cycling solutions for local and tourist mobility.

Challenges:

·Lack of integration of local public transport networks with other services (the challenge that here is related to the preparation of projects and get the funds for the development of rail infrastructure (where needed) that is a pre-condition to increase rail transport capacity).

·In addition, creating agreement among rail transport operators to supply (cross countries) quality rail services is another critical and challenging issues. An agreement upon the standard is needed, who pays for subsidising the rail services, etc. are also particularly challenging. e.g. shared mobility services).

·Low level of road safety, particularly for vulnerable users.

·Improve road safety, particularly for vulnerable users.

·Development of accessible and safe cycling solutions for local and tourist mobility.

2.3.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. Sustainable Urban Mobility Plans emphasise environmentally friendly transport solutions, aligning the region with EU sustainability standards (Chapter 27). The adoption of Mobility as a Service fosters efficient and integrated urban transport systems, demonstrating the Western Balkans’ commitment to modern and interconnected urban mobility (Chapter 14). Additionally, investing in cycling infrastructure not only promotes healthy and sustainable commuting but also aligns the region with EU emphasis on alternative and green modes of transportation (Chapter 27). These measures collectively contribute to the harmonisation of transport practices, a key component in the Western Balkans’ journey towards EU accession (Chapter 14).

·Capacity building. The implementation of Sustainable Urban Mobility Plans offers a comprehensive framework for urban planners and policymakers to enhance their expertise in sustainable urban development, fostering capacity building in local governance. By introducing innovative, technology-driven, and integrated transport solutions, Mobility as a Service encourages the development of skills and knowledge among professionals involved in urban mobility management. Investing in cycling infrastructure not only contributes to healthier and more sustainable transport but also supports capacity building by creating opportunities for training and expertise development in urban planning, transportation engineering, and alternative mobility solutions.

·Innovation and research. The implementation of Sustainable Urban Mobility Plans, public transport single-ticketing platforms (including Mobility as a Service solution), and cycling infrastructure in the cities of the Adriatic-Ionian region would provide a fertile ground for research into novel technologies and urban planning strategies. Mobility as a Service introduces a transformative approach to transportation, encouraging research into seamless integration of various modes of transport and user-centric mobility solutions. The development of cycling infrastructure may stimulate innovation in urban design and safety measures, attracting research initiatives focused on enhancing the cycling experience and integrating it effectively into urban transport systems.

Cross-cutting topics:

·Circular economy. The topic does not include any link to Circular Economy.

·Green rural development. Integrated public transport services may be extended beyond urban areas and support connectivity in the neighbouring rural areas.

·Digitalisation. The integration of public transport systems including fare and single ticketing systems will include the development of digital platform and data sharing systems. In fact, Sustainable Urban Mobility Plans leverage digital technologies to optimise urban mobility, fostering the integration of smart solutions for traffic management and data-driven decision-making. Mobility as a Service 9 introduces digital platforms that seamlessly connect various transportation modes, providing users with real-time information and payment options through digital channels. Additionally, the development of cycling infrastructure may incorporate digital tools for route planning, bike-sharing systems, and safety measures, collectively contributing to the overall digital transformation of transportation in the region’s cities.

2.3.3Action – Boost the uptake of Sustainable Urban Mobility Plan initiatives especially in urban nodes

2.3.4Action – Diffusion of integrated public transport system including integrated fare structures (Mobility as a Service)

2.3.5Action – Support the realisation of cycling lanes and networks

2.4Topic– Energy networks

Global objectives. Energy systems are made up of energy networks, energy markets and energy uses. The liberalisation and integration of the EU electricity and natural gas markets, pursued by the EU directives and regulations, contribute to security of supply, competitiveness, sustainability and affordability. The energy policy objectives of the EU – sustainability, security of supply, competitiveness and affordability – can only be achieved through a well-interconnected and well-functioning internal energy market.

Strategy objectives. The EU is committed to climate neutrality by 2050, as laid down in the Climate Law, responding to its obligations under the Paris Agreement and the Global Stocktake at COP28. One of the key objective of this topic is to reach these goals and phase-out fossil fuels. In this perspective and in view of the transition towards decarbonised energy systems to confront the climate change challenge, key objectives are to achieve well-interconnected and well-functioning energy systems and markets in the Adriatic-Ionian region, to foster security of energy supply, and to improve energy market competitiveness. Priorities are enacting the energy goals of the European Green Deal, RePower EU, and the Green Agenda for Western Balkans, while contributing to the energy transition, large-scale deployment of renewable energy sources compatible with the ‘Do No Significant Harm’ (DNSH) principle and the environmental acquis, increased electrification of the energy system, energy efficiency and resilience of sustainable energy infrastructure with a view to EU enlargement.

The focus is on the cooperation energy policies and initiatives by countries of the Adriatic-Ionian region, collaboration on infrastructure developments, in line with the Green Deal and RePower EU policies, and integration of energy markets regionally and with the EU.

The electricity and natural gas systems and markets in the Adriatic-Ionian region and even more in the Western Balkans region are in the process of integration, but several roadblocks still persist. Actions for greater integration will be addressed under this topic in cooperation with the Energy Community and European Commission services.

Fully integrated networks and markets are crucial for achieving security of supply, market integration, energy price competitiveness, convergence and affordability, at the same time paving the way for a future renewable hydrogen distribution. Investments would be public and private or both. Projects which have not secured sufficient public, or EU funding should be implemented through market-based instruments, such as incremental capacity processes, concessional agreements, own equity or support from commercial banks. Support and realisation of the projects within the different activities must be linked with the confirmation from the market and the relevant institutions that these infrastructures are needed and funding will be secured through market mechanisms.

On 30 May 2022, the European Union adopted the Regulation (EU) 2022/869 on guidelines for trans-European energy infrastructure repealing Regulation (EU) No 347/2013.

On a proposal by the European Commission, on 14 December 2023 the Energy Community Ministerial Council followed by adopting a Decision adapting Regulation (EU) 2022/869 to the Energy Community to foster decarbonisation efforts of the Energy Community Contracting Parties in relation to energy infrastructure. This TEN-E Regulation sets out a revised regional cooperation framework for selecting and implementing key infrastructure projects necessary for achieving the 2030 and 2050 energy and climate targets and the European Green Deal. The TEN-E Regulation is key for accelerating investments in grid infrastructure. By including infrastructure for renewable and low-carbon gases (biomethane, biogas, renewable hydrogen), it will support the decarbonisation of gas markets and support the transformation of industrial clusters. The Energy Community Contracting Parties have to transpose the Regulation by end 2024. In parallel, the process for the selection of Projects of Energy Community Interest (PECI) has been launched early 2024 and in December 2024 the Energy Community Ministerial Council adopted the first PECI list 10

Specific objectives of the topic

2.4.1Strategy specificities opportunities and challenges

Linked to the above objectives, the Adriatic-Ionian region faces a number of specific challenges and opportunities which the revised action plan aims to address.

Opportunities:

·Connecting and integrating networks to reduce energy system vulnerability and risk of disruptions of energy supply.

·Enhancing cooperation on cross-border energy networks to allow for investments on large energy infrastructure which would find difficulties given the limited national outreach capacity. If these actions are not compliant with DNSH criteria and the environmental acquis, they won’t be (co-)funded by EU programmes.

·Exploiting complementarities of the energy systems through the Adriatic-Ionian region to improve security and competitiveness.

Challenges related to electric power concern among others:

·Insufficiently integrated power grids and still fragmented market not fully supporting the energy transition of the Adriatic-Ionian region.

·Restricted electricity market activities in the Adriatic-Ionian region due to inefficient use and low exploitation of interconnections 11 as well as subsidies causing electricity market distortions.

·Regulatory and financial barriers that hinder electricity market integration as well as the functioning of power exchange through the Adriatic-Ionian region.

·Significant constraints in the existing electricity grid to accommodate generation of large amounts of electricity from intermittent renewable and distributed energy sources.

Further challenges:

·The credible implementation and enforcement of the EU directives and regulations under the Energy Community framework, in particular the Electricity Integration Package adopted in 2022, as relevant for facilitating development of more flexible and consumer-centred energy markets and their integration into the European single market for electricity.

·Prosperous business environment is required to attract investments for the development of networks and international and regional interconnections. Administrative delays and political volatility, which are recurrent phenomena in the Adriatic-Ionian region, are often regarded as a threat and deterrent to committing long-term investment on energy networks.

·Alliances, agreements, joint ventures amongst energy enterprises from countries of the Adriatic-Ionian region should be promoted and looked for to create larger and efficient regional industry players with a sufficient number of employees and international connections while facing technology innovations and economies of scale.

·Cybersecurity threats to power and natural gas networks and infrastructure, as well as to information systems used for providing essential services in the energy sector. Exceptional events due to global climate change with the consequent need for reducing vulnerability and ensuring early warning and continuity of energy services when facing incidents and disruptions.

2.4.2Support to horizontal and cross-cutting topics

Activities under this topic contribute actively to the horizontal and cross-cutting topics of the revised action plan.

Horizontal topics:

·Enlargement. The activities help candidate countries to better integrate with EU Member States in field of EU energy policies, also including programmes and projects and their harmonisation and alignment to the EU directives and regulations. Enactment and implementation of cross-border interconnections and transnational energy infrastructures would contribute to the integration of non-Member States with the European Union. The creation of integrated markets within the Adriatic-Ionian region would enable cost reductions and regulatory alignment with the EU Member States while reducing risk in energy supply and distribution.

·Capacity building. The activities have a strong focus on capacity building to ensure relevant players are well informed and involved and the regulatory frameworks facilitate sustainable ad efficient energy markets and systems. This includes, among other activities, joint capacity building and innovative solutions for implementing a common market and enhancing energy regulatory frameworks. Local energy enterprises may find new opportunities while creating joint ventures and merging into larger more efficient regional enterprises.

·Innovation and research. The activities will touch on innovation and research in various contexts, e.g. related to new technologies improving energy transmission and storage while activating measures for cybersecurity.

Cross-cutting topics:

·Circular economy. The topic does not explicitly address circular economy. However, improving energy networks to support a green transition is also supporting the transition to a circular economy.

·Green rural development. Increased energy interconnections and power grid development would facilitate the inclusion of rural and remote areas into the main power and networks and infrastructure.

·Digitalisation. The digital transition and large-scale use of artificial intelligence are an integral part of the development of energy networks. Digitalisation and artificial intelligence would be a key asset and driver for the operation of the energy networks, for the management of spare capacity, deployment of smart power grids, prevention of human errors and recovery from accidents and failures.

2.4.3Action – Integrated power networks and market supporting the green transition

2.4.4Action– Integrated energy corridors

2.4.5Action– Liquified Natural Gas logistics and infrastructure 15

2.5Topic – Decarbonising the energy systems

The leading objective is confronting global climate change while accelerating the transition towards decarbonised energy systems in the Adriatic-Ionian region, enhancing security of energy supply and delivery, granting affordable and equitable energy access for all consumers. Priorities are enacting the energy goals of The European Green Deal, REPowerEU and the Green Agenda for the Western Balkans. The decarbonisation of the energy systems and the transition towards net-zero carbon economies will entail large-scale deployment of renewable energy sources and other low-carbon energy options, improved energy efficiency, increased electrification and potentially the development and use of renewable hydrogen for hard-to-abate industries. Energy technology innovation and digitalisation will be key drivers.

New market structures and technologies that are developed and deployed would imply a new organisation of the energy systems. In the past energy systems were based on long-distance energy networks and concentrated energy supply while the future will see more distributed and local energy production and delivery. During the past few years, active consumers such as prosumers, energy communities and demand-side participants have emerged that contribute to more efficient decentralised markets and networks management. For these market participants to become an integrated part of the energy system, any development of energy infrastructures should take them involved and into account. The transition towards decarbonised energy systems might require new forms of governance of the transition. Cooperation in the development and implementation of National Energy and Climate Plans is planned. The objective under this topic is to exchange experiences and consultation between and among countries from the Adriatic-Ionian region on the governance for the energy transition and public acceptance. Ad hoc analyses and studies can be planned. Pillar 3 and Pillar 5 might have a role and contribute.

Global objectives. The commitment to tackling the existential triple environmental crisis (climate change, biodiversity loss and pollution, all driven by natural resources depletion) is this generation’s defining task. The European Green Deal was presented as a new growth strategy that aims at transforming EU Member States and EU candidate countries into a fair and prosperous society, with a modern, resource-efficient and competitive economy where there are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use. This green strategy also aims to protect, conserve, and enhance the Adriatic-Ionian region’s natural capital, and protect the health and wellbeing of its citizens from environmentally related risks and impacts. At the same time the transition should be just and inclusive. It must put people first, and pay attention to the local communities, industries and workers who will face the greatest challenges. Since it will bring substantial change, active public participation and confidence in the energy transition is paramount if policies are to work and be accepted.

Strategy objectives. It is assumed that the Adriatic-Ionian region should develop a collective ability to transform its economy and societies to follow a more sustainable energy path. Delivering substantial reductions in greenhouse-gas emissions is a challenge. It will require massive public investment and increased effort to direct private capital towards climate and environmental action, while avoiding lock-in into unsustainable practices. The Adriatic-Ionian region should be able to coordinate and promote its efforts towards building a coherent financial public-private system that supports sustainable solutions. These investments should also be an opportunity to put the Adriatic-Ionian region firmly on a new path of sustainable and inclusive growth while enhancing security of energy supply and delivery and ensuring affordable energy access and equity. Energy efficiency improvements should be considered with a view to enhancing security of supply and to achieving a better degree of energy independence and to protect the environment.

2.5.1Strategy specificities opportunities and challenges

Linked to the above objectives, the Adriatic-Ionian region faces a number of specific challenges and opportunities which the action plan aims to address.

Opportunities:

·Exploiting the potential of renewable energy sources in the Adriatic-Ionian region, while respecting the environment (e.g. minimising land use, avoiding biodiversity and pollution harm, prioritising circular economy solutions). Specifically, solar energy, onshore and offshore wind power hydropower and possibly geothermal energy are expected to make a substantial share in the future electricity mix. Furthermore, advanced biofuels would have a role in transport and other use.

·Providing the economies of the Adriatic-Ionian region (in several cases with significantly lower GDP per capita than the EU average) with opportunities for international investors in the green energy sector, while ensuring that transparent and reliable regulatory frameworks are in place.

·Making the transition to a renewable-based energy supply and to high energy efficiency driven by domestic resources can enable countries to capture increasing shares of the energy value added chain within the Adriatic-Ionian region, progressively build domestic technological capacity and turn the energy system into a driver of clean economic growth, and social cohesion.

·Accelerating the deployment of renewables energies in the Adriatic-Ionian region and increasing energy efficiency are a cost-effective strategy to reduce dependency on energy imports and improve the security of supply. At the same time, expanded electrification of the energy system with renewable energy sources would allow the phasing out of coal uses as well as avoiding further investments in redundant natural gas infrastructure, which would be at high risk of becoming stranded if the Adriatic-Ionian region is to meet the goals of The European Green Deal. Deployment of flexibility resources would also enable better integration of renewables into the existing energy systems.

Challenges:

·Reforming regulatory and administrative procedures to streamline the integration of renewable energy sources in spatial plans while promoting coordination of renewable energy sources regulations between and among countries.

·Removing undue restrictions to the deployment of renewable energy sources (in particular fossil fuel subsidies) grid integration restrictions, streamlining functional power exchanges, socio-economic and environmental barriers.

·Reducing the high energy intensity of several participating countries. Reducing energy intensity is the challenge. Efficient energy use should be promoted as a means for environmental protection and economic competitiveness.

·Increasing share of greenhouse-gas emissions from the energy sector per GDP unit in some countries from the Adriatic-Ionian region with consideration for the high dependency of energy sectors on fossil fuels (i.e. lignite) and hydropower (affected by impacts due climate change and potential conflicts with Water Framework and Habitats Directives).

·Accelerating the transition towards a net-zero carbon economy to decarbonise the energy systems while promoting security of energy supply and delivery, energy affordability and access.

·Reducing the cost of energy transition to low-carbon technologies, stranded assets and stranded costs emerging form the phasing out of coal-using facilities and producing areas.