Sitra’s Russia Program created
Framework for Finnish-Russian environmental cooperation
Sitra’s Russia Program has boosted Finnish-Russian cooperation in the areas with common interests and development goals - including forestry, forest industries, logistics, innovations, high-tech and building. In all these areas, the advanced solutions for the environment and energy are prerequisites for the sustainable future. The Program has responded this challenge with creating a cooperation framework for waste management and energy services for selected regions in Russia.
The Russia Program created the framework in close cooperation with Sitra’s Environmental Program and other experts. The both Programs were launched in late 2004 for the years 2005 – 2007.
| One of the key arenas for drawing main lines for cooperation has been the Forums, arranged by Sitra, with Finnish and Russian influential decision-makers. “Based on an open dialogue the Forum has been a flexible working method to find new cooperation opportunities between Finland and Russia and also solutions for possible drawbacks and obstacles,” says Maaret Heiskari, Executive Director of the Russia Program at Sitra. The first full-scale Forum meeting was held in January 2006. |  |
Stemming power from clusters
The created framework for energy and waste management cooperation is based on clusters. A cluster is a group of enterprises in the same area with different expertise. They cooperate, but do not compete. Finland has long experience and competence on cluster working.
“Out of the environmental companies we gathered ten small and medium size enterprises for both waste management and energy clusters. In addition, we found driver enterprises for both clusters. These are larger companies which already operate in Russia,” Heiskari explains.
The driver for waste management cluster is Lassila & Tikanoja and for energy cluster Onninen Oy. Both these companies have local companies in Russia, which may support smaller cluster companies to start operations in the country.
Focus on selected areas
According to Heiskari, the Forum dialogues showed that some Russian republics, regions and districts are interested in cooperation.
Based on this information and other, for instance, economical and business growth rate estimations especially in the construction sector, the cooperation focus was set on Moscow and St.Petersburg regions, the Republic of Tatarstan and Kaluga regions.
“We are surveying in the focus regions the frames within which a foreign company can operate. In addition, we gather information on current and coming projects. These studies will be completed in few weeks and they will be available to all enterprises in the environmental field,” Heiskari explains.
“We have also searched for local enterprises which would be interested in cooperating with Finnish actors, and sounded out Russian and international and investors’ interest,” Heiskari says.
In Russia, there exists no environmental federal legislation. All regions and municipalities have their own legislation. But, for example hazardous waste management, does not have any standards.
“We have readiness to act as advisors in developing the legislation,” Heiskari says.
During this autumn, the cluster enterprises will visit these areas looking for possible projects and creating contacts. The visit is arranged by the Russia Program.
“Besides the selected four regions, we have received contacts also from other regions which have heard something about the cooperation efforts. I suppose this a good sign for extension of cooperation in the future,” Heiskari estimates.
Energy cluster – expertise for local energy
Energy production and distribution in Russia is facing big challenges e.g. the decline in energy production, shortage of transmission capacity, privatisation targets, and the commitment to the Kyoto Protocol.
Local energy demand is increasing fast due to the fact that annual housing construction will be doubled by 2010. The process to reform energy system is such a massive undertaking that it requires international co-operation on many levels and aspects.
To the energy challenges, local energy production from renewable energy sources and energy saving are, for their important part, responses. For instance, by utilizing of forest residues as a fuel for combined heat and power generation, one of the most sustainable ways to fulfil the energy demand.
“For these fields, the energy cluster’s enterprises have world-class expertise. In addition, they have experience for emission trading. Thus, opportunities for technological and commercial cooperation are excellent,” Heiskari points out.
The rapidly increasing housing construction opens possibilities for Finnish companies to provide energy management and other building systems. The climatic similarities of Finland and Russia facilitate decision-making when seeking advanced solutions.
Comprehesive waste management
Finnish forest companies have traditionally utilized fully their raw material by recovering of recycled paper and using the by-products for energy production.
Besides forest industry, also other Finnish actors have developed special know-how in recycling, separation and waste processing methods. New methods for the treatment of contaminated soil have also been developed.
Some of the waste management cluster companies are already operating in Russia. For example Lassila & Tikanoja has arranged the waste management in the City of Dubna.
During the years also other Finnish companies have successfully implemented several environmental projects, which aim, for instance, at pollution reduction in the Baltic Sea.
“These projects together with implementing of St.Petersburg waste water treatment plant would offer concrete content to the EU's Northern Dimension and steer its activities in a pragmatic direction,” Heiskari notes.
Energy and environmental sector
Main challenges
*Environmental legislation
*Funding for projects
Opportunities:
*Implementing environmental projects and participating in operational activities
*Forming with private actors funding consortiums
“The improvements would open huge possibilities to entire new local energy production and waste management for inhabitant’s and the environment’s best,” Heiskari stresses.
To create international competitive players
Since 2000 trade between Russia and Finland has more than doubled, and in 2005 Russia became the biggest trade partner of Finland. It can be expected that Russia will in coming years keep its position as Finland’s leading trade partner and be of importance in the development of Finnish economy.
The economic growth and improved well-being in Russia will generate new business opportunities for Finns both in Russia and in Finland.
“Combining the existing Finnish-Russian strengths, players and funding to form larger entities could also lead to an internationally competitive service provider,” Heiskari emphasizes.
“In addition, it is important to realize that while Finland is looking after its national interests and nurturing bilateral relations with Russia, it can also influence the EU policies related to Russia and their implementation,” Maaret Heiskari concludes.
Work for cooperation continues
Sitra’s Russia Program will be completed at the end of this year. The developed strategy, gained environmental know-how and contacts are utilized by the cluster’s enterprises and a continuing program, which is under planning in Lahti Science and Business Park, a center of Finnish environmental expertise.
More information
ENTERPRISES IN WASTE MANAGEMENT CLUSTER
ENTERPRISES IN ENERGY CLUSTER
Sitra's Russia Program
Sitra's Environmental Program
Related articles in this magazine in 2005
Russia Program
Environmental Program
Cooperation network
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