Explanatory Memorandum to COM(2024)479 -

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dossier COM(2024)479 - .
source COM(2024)479
date 17-10-2024


1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The Sustainable Fisheries Partnership Agreement (SPFA) between the European Union on the one part, and the Government of Greenland and the Government of Denmark, on the other part has been signed on 22 April 2021 and entered into provisional application on that date in line with its Article 15. It shall apply for six years from the date of its provisional application and is tacitly renewable for additional periods of six years and is therefore still in force. The previous 4-year Implementing Protocol to the Agreement has been provisionally applied from the moment of its signature on and will expire after four years on 21 April 2025 in line with its Article 13.

On 13 June 2024, the Council authorised the Commission to open negotiations for a new Protocol (‘the new Protocol’) to the SFPA.

On the basis of the relevant negotiating directives1, the Commission conducted negotiations with the Government of Greenland on concluding a new Implementing Protocol to the Agreement. The objective is to allow Union vessels to access the fishing zone Greenland and to fish for demersal species (Cod, Redfish, Halibut, Prawns, Grenadiers) and small pelagic species (Capelin). Following these negotiations, a new text of the Implementing Protocol was initialled on 20 September 2024. The new Protocol covers a period of 6 years from the date of provisional application laid down in Article 12.

The purpose of the new Protocol is to grant fishing opportunities to Union vessels in the fishing zones located in the waters of Greenland, in accordance with scientific advice and the recommendations of the relevant regional fisheries management organisations (NAFO, NEAFC). The new Protocol provides for the following fishing opportunities:

1.

Cod in ICES Subareas II, V, XII, XIV: 2 050 tonnes per year


Pelagic redfish (REB) in ICES Subareas XII, XIV and in NAFO 1F: 0 tonnes per year

Demersal redfish (RED) in ICES Subareas II, V, XII, XIV: 2 100 tonnes per year

Greenland Halibut in NAFO Subarea 1 — South of 68° North: 1 900 tonnes per year

Greenland Halibut in ICES Subareas II, V, XII & XIV: 4 775 tonnes per year

2.

Northern Prawn in NAFO Subarea 1: 2 431 per year


Northern Prawn in ICES Subareas II, V, XII, XIV: 4 150 per year

Capelin in ICES Subareas II, V, XII, XIV: 13 000 tonnes per year

Mackerel in ICES Subareas II, V, XII, XIV: 0 tonnes per year

The fishing opportunities for Pelagic Redfish are set at 0 tonnes because of the negative siceintific advise on the state of the stocks and in the case of Mackerel because of the abscense of a regional sharing arrangement.

Another objective is to enhance cooperation between the Union and Greenland by implementing the partnership framework for the Agreement in order to promote a sustainable fisheries policy and the responsible exploitation of fishery resources in the waters of the Greenland, in the interest of both Parties.

The purpose of this proposal is to obtain the Council’s authorisation for the conclusion of the new Protocol, in accordance with Article 218 i of the Treaty on the Functioning of the European Union (TFEU).

Consistency with existing provisions in the policy area

The main aim of the new Protocol to the Agreement is to provide an updated framework that takes into account the priorities of the common fisheries policy (CFP) and the external dimension. This will help maintain and strengthen the strategic partnership between the European Union and Greenland.

The new Protocol provides for fishing opportunities for Union vessels. It is based on the best available scientific advice and on the recommendations made by NAFO, NEAFC and ICES.

Consistency with other Union policies

The negotiation of a new Sustainable Fishery Partnership Agreement and its Implementing Protocol forms part of the EU’s external action in relation to Overseas Countries and Terittories (OCTs).

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The legal basis is Article 43(2) TFEU, which establishes the common fisheries policy, and Article 218 i TFEU, which provides that the Council, on a proposal by the negotiator, is to adopt a decision concluding an agreement between the Union and third countries.

In accordance with the Treaties, it is for the Commission to ensure that the notification to the Government of Greenland and the Government of Denmark as provided for in Article 14 of the Protocol be made on behalf of the Union, in order to express the consent of the Union to be bound by the Protocol.

Subsidiarity (for non-exclusive competence)

The proposal falls within the exclusive competence of the European Union pursuant to Article 3(1)(d) TFEU. The subsidiarity principle therefore does not apply.

Proportionality

The proposal is proportionate to the objective of establishing a legal, environmental, economic and social governance framework for fishing activities carried out by Union vessels in third-country waters, as set out in Article 31 of Regulation (EU) No 1380/2013 establishing the common fisheries policy. It complies with those provisions and with those on financial assistance to third countries laid down in Article 32 of that Regulation.

3. RESULTS OF EX POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex post evaluations / fitness checks of existing legislation

In 2024, the Commission contracted an independent consultant to carry out an ex post and ex ante evaluation study1. On the basis of that evaluation study, the Commission carried out an ex post evaluation of the current Implementing Protocol and an ex ante evaluation of possible options for the future. The conclusions of the ex post and ex ante evaluations are set out in a Commission Staff Working Document (SWD)2.

In the ex post evaluation contained in the SWD, the Commission concludes that, overall, the current Implementing Protocol was effective in achieving its objectives, with some areas for improvement. In this respect, the Union fleet remains interested in accessing the fishing areas of Greenland for the deployment of harvesting strategies under a multiannual framework, with some need for alignment of fishing opportunities based on the sicentific advice by the Union fleet. In terms of the sectoral support component, the Commission concludes that the sectoral support funds have (i) helped to strengthen scientific research and adminsitrative capacities of Greenland, and (ii) contributed to improved ocean governance in Greenland

In the ex ante evaluation contained in the SWD, the Commission concludes that the negotiation of a new Implementing Protocol, with some adjustments, is in the interest of both the Union and Greenland. For the Government of Greenland, negotiating a new Implementing Protocol will secure continued cooperation with the Union on strengthening ocean governance through the dedicated sectoral support funds under a multiannual framework.

For the Union, it is important to maintain an instrument allowing for close sectoral cooperation with a country that is a major partner, a supplier of fishery products to the Union, a provider of fishing opportunities used for swaps with other Nrothern European countries (namely Norway) and a stakeholder on the international stage and that has fishing grounds that are of interest to the Union fleet.

Stakeholder consultations

Member States, industry representatives, international civil society organisations and the fisheries administration and civil society representatives of Greenland were consulted as part of the evaluation. Consultations also took place in the framework of the Long Distance Advisory Council. These consultations led to the conclusion that it is in the interest of the Union and Greenland to maintain an instrument allowing for in-depth sectoral cooperation, with multiannual funding possibilities for Greenland. It is in the interest of Union vessel owners to maintain access to an important fishing zone by means of a fisheries agreement.

Collection and use of expertise

The Commission used an independent consultant for the ex post and ex ante evaluations, in accordance with Article 31(10) of Regulation (EU) No 1380/2013 establishing the common fisheries policy.

Impact assessment

3.

Not applicable


Regulatory fitness and simplification

4.

Not applicable


Fundamental rights

The negotiated Protocol includes a clause on the consequences of violating the essential elements regarding human rights as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

4. BUDGETARY IMPLICATIONS

The annual financial contribution from the European Union is EUR 17 296 857, based on:

a) an annual amount for access to fishery resources for the categories provided for in the Protocol, set at EUR 14 096 857 for the duration of the Protocol;

b) support for the development of Greenland’s sectoral fisheries policy amounting to EUR 3 200 000 per year for the duration of the Protocol. This support meets the objectives of Greenland’s national policy on the sustainable management of their maritime fishery resources for the entire duration of the Protocol.

The annual amount for commitment and payment appropriations is established during the annual budgetary procedure, including for the reserve line for protocols not yet having entered into force at the beginning of the year1.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The monitoring arrangements are provided for in the SFPA and the new Protocol.