Bulgaria: Toward Blue Economy Development December, 2020 II Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 1 Table of contents © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Abbreviations and Acronyms 3 Telephone: 202-473-1000; Internet: www.worldbank.org Acknowledgements 6 Executive Summary 7 Introduction 16 Chapter 1. Snapshot of Bulgaria’s Coastal and Marine Economy 20 Chapter 2. The Blue Economy’s Development Context 24 2.1. Blue economy development framework 25 2.2. The value of natural capital is central to the blue economy 28 2.3. Blue economy for the black sea: the common maritime agenda 29 Chapter 3. Bulgaria’s Coastal and Marine economy 31 3.1. Economic geography of coastal and marine space 32 3.2. Threats to the black sea marine environment 33 3.2.1. Pollution 33 SOME RIGHTS RESERVED 3.2.2. Depleting marine resources 34 This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions 3.2.3. Climate change 35 expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank 3.3. Pillars of the blue economy 36 or the governments they represent. The World Bank does not guarantee the accuracy of the data 3.3.1. Coastal and marine tourism 37 included in this work. The boundaries, colors, denominations, and other information shown on any map 3.3.2. Fisheries and aquaculture 41 in this work do not imply any judgment on the part of The World Bank concerning the legal status of any 3.3.3. Marine non-living resources: extraction of minerals, oil, and gas 44 territory or the endorsement or acceptance of such boundaries. 3.3.4. Maritime transport, ports, shipbuilding, and ship repair 46 3.3.5. The potential of emerging blue economy sectors 50 RIGHTS AND PERMISSIONS Chapter 4. Financing the Blue Economy 55 The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as Chapter 5. Policies and Institutions for Advancing the Blue Economy 58 full attribution to this work is given. 5.1. Strategies and legislation 59 5.2. Institutions and stakeholders 59 5.3. Research and innovation 61 ATTRIBUTION Chapter 6. Enabling Framework for a Blue Economy in Bulgaria: Policy Recommendations 64 Please cite the work as follows: “World Bank. 2020. Bulgaria: Toward Blue Economy Development.” 6.1. Blue economy policy framework 65 © World Bank.” 6.2. Coastal and marine tourism 69 The picture on the cover (both sides): Sozopol harbor – old town 6.3. Fisheries and aquaculture 70 All pictures’ copyrights were kindly granted by: Eolina Milova, Svetoslav Stoyanov, Emil Martinov, Margarita 6.4. Emerging blue economy sectors 72 Stancheva and Ivelina Taushanova. 6.5. Pollution-free marine environment 74 All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; Conclusions 76 e-mail: pubrights@worldbank.org. References 77 2 Bulgaria: Toward Blue Economy Development Bulgaria: Toward Blue Economy Development 3 Abbreviations and acronyms LIST OF FIGURES Figure 1. Blue Economy Employment in Established Sectors 22 Figure 2. Blue Economy Contribution to GVA of Established Sectors 22 Figure 3. Blue Economy Development Framework 26 Figure 4. The Blue Economy and Natural Capital 29 BEDF Blue Economy Development Framework Figure 5. BBSEA Components 30 BPI Co. Bulgarian Ports Infrastructure Company CCMS Centre for Coastal and Marine Studies Figure 6. Bulgarian Black Sea Coastal and Maritime Area 32 CMA Common Maritime Agenda Figure 7. Marine Parts of the Natura 2000 Network in Bulgaria 33 EAFA Executive Agency of Fisheries and Aquaculture Figure 8. Growth of Coastal and Non-Coastal Tourism in Bulgaria (2012–18) 37 EC European Comission Figure 9. Economic Contribution of the Fisheries Sector 42 ECA Europe and Central Asia Figure 10. Fish Production by Inland and Marine Waters and Aquaculture (tones) 42 EEA European Environment Agency Figure 11. Main Aquaculture Species in Bulgaria (2019) by volume 43 EEZ Exclusive Economic Zone Figure 12. Offshore Blocks for Exploration and Extraction of Oil and Gas 45 EGD European Green Deal Figure 13. Volume of Goods Transported via Bulgarian Ports 2009–18 46 EMFF European Maritime and Fisheries Fund Figure 14. Gross Weight of Goods Handled in Seaports in Bulgaria, by type of cargo 47 EU European Union (28 member states, including the United Kingdom) Figure 15. Loaded and Unloaded Goods in Bulgarian Black Sea Ports 48 FLAGs Fisheries Local Initiative Groups GDP Gross Domestic Product Figure 16. Conventional versus Ecosystem-Based Coastal Protection 51 GES Good Environmental Status Figure 17. Transitioning to Blue Economy as an Opportunity 65 GIS Geographic Information System GVA Gross Value Added LIST OF TABLES ICZM Integrated Coastal Zone Management Table E.1. Bulgaria’s Maritime Economy at a Glance (2018) 8 IMO International Maritime Organization Table 1. Bulgaria’s Maritime Economy at a Glance (2018) 21 IO-BAS Institute of Oceanology-Bulgarian Academy of Sciences IUU Illegal, Unreported, and Unregulated Table 2. Evolution of Maritime Transport, Port Activities, and Shipbuilding and Repair (GVA) 46 LNG Liquefied Natural Gas Table 3. Maritime Ports Infrastructure 47 MoAFF Ministry of Agriculture, Food and Forestry MoEc Ministry of Economy LIST OF BOXES MoEn Ministry of Energy Box 1. BEDF Toolkit Elements Enabling Adaptation to Country-Specific Conditions 27 MoEW Ministry of Environment and Water Box 2. Integrated Management Plans for Norway’s Marine Areas 27 MoRDPW Ministry of Regional Development and Public Works MoT Ministry of Tourism Box 3. China’s Blue Economy Experience 28 MoTITC Ministry of Transport, Information Technology and Communications Box 4. Wind Energy along the Bulgarian Coast 50 MPA Marine Protected Areas Box 5. Beneficial Impacts of a Multisector Approach 51 MS Member State Box 6. MSFD (Directive 2008/56/EC) Objective 52 MSFD Marine Strategy Framework Directive Box 7. Implementation of the MSFD: Status of the Marine Strategy 53 MSP Maritime Spatial Planning Box 8. Multi-Use Concept Supports a Circular Economy, Industrial Symbiosis Models, MU Multi-Use and a Blue Economy 54 MW Megawatt Box 9. Blue Economy Government Stakeholders 60 NM Nautical Miles NSI National Statistical Institute NUTS Nomenclature of Territorial Units for Statistics codes of Bulgaria OECD Organization for Economic Co-operation and Development PoMs Program of Measures R&D Research and Development SDGs Sustainable Development Goals SMEs Small and Medium-Sized Enterprises SRIA Strategic Research and Innovation Agenda for the Black Sea TAC Total Allowable Catches UCH Underwater Cultural Heritage WFD Water Framework Directive WWTP Wastewater Treatment Plant 4 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 5 Krapets North beach 6 Bulgaria: Toward Blue Economy Development Bulgaria: Toward Blue Economy Development 7 Acknowledgements Executive Summary T he team is grateful to all government officials from the Ministry of Transport, Information Technolo- i. This Policy Note reviews the challenges and opportunities that are central to the transition of gy and Communications of the Republic of Bulgaria for the insights and generous cooperation pro- the Republic of Bulgaria’s key marine-based economic sectors to blue economic development. The vided, especially under the challenging circumstances of the global pandemic lockdown. The team term “blue economy” refers to the sustainable use of ocean and maritime resources for economic growth, is especially grateful to Ms. Nadezhda Buhova, Director of European Affairs and International Cooperation; improved livelihoods and jobs, and the lasting health of ocean and maritime ecosystems. The note takes Mr. Dimitar Savov, Director of the Transport Policy Directorate, Ministry of Transport, Information Technolo- a closer look at sector opportunities as a mix of interconnected economic activities that complement or gy and Communications; Ms. Tatiana Savova, Head of Unit; Ms. Ana Kardzheva, Common Maritime Agenda build on each other. The objective is to inform Bulgaria’s vision and strategy for transitioning to a blue Coordinator for Bulgaria; and Mr. Peter Benov, expert at the Transport Policy Directorate, Ministry of Trans- economy. The note highlights development risks and charts a way forward, factoring in future challenges port, Information Technology and Communications, as well as to Ms. Atanaska Nikolova, Deputy-Minister of and drivers to substantially advance Bulgaria’s policy and investment alignment with the European blue Environment and Water; Ms. Sylvia Rangelova, Director of European Union Coordination and International economy initiatives. It also identifies the challenges and opportunities in shaping blue economy develop- Cooperation; Ms. Iliana Todorova, Director, Water Policy Directorate, Ministry of Environment and Water; ment based on a holistic ecosystem approach to the management of coastal and marine resources. Ms. Desislava Konsulova, Director of the Black Sea Basin Directorate; Ms. Denitsa Nikolova, Deputy-Min- ister of Regional Development and Public Works; Ms. Tzvetelina Atanasova, Director General, OP Regions in Growth; Mr. Ivaylo Stoyanov, Head of Unit, Regional Policy Directorate; Ms. Maria Georgieva, Maritime Why is the maritime economy so important to Bulgaria? Spatial Planning Coordinator at the Ministry of Regional Development and Public Works; and Ms. Vesselina ii. Situated in one of the most attractive regions of Europe, Bulgaria boasts a beautiful coastline Troeva, Director of the National Territorial Planning Center. that is a mosaic of marine and terrestrial systems of great natural value and substantial socioeconom- This policy note was prepared by a World Bank team that was led by Eolina Milova (Senior Environment ic benefit. The Black Sea coast is a solid center of economic growth and home to a burgeoning number Specialist and Task Team Leader with the Environment, Natural Resources and Blue Economy unit in ECA of coastal residents who make up 10 percent of Bulgaria’s total population. The coast draws significant Sustainable Development [SCAEN]) and included Paola Agostini (Lead Natural Resource Management numbers of domestic and international visitors during the tourist season. Specialist), Adriana Damianova (Policy Advisor), and Adelina Dotzinska (Program Assistant). The background iii. The Black Sea’s unique coastal and marine resources offer opportunities for the sustainable analysis, including sectoral diagnostics and recommendations, was prepared by Margarita Stancheva growth of the industries that depend on them. A large part of the Bulgarian coastal economy continues (Center of Coastal and Marine Studies). Additional contributions were received by Svetoslav Stoyanov to rely on traditional sectors, such as beach tourism, fisheries, maritime transport, and mineral extraction. (expert on the blue economy and the Black Sea). The team benefited from the insights of Bérengère Prince However, there has been an increasing fragmentation in the management of coastal environmental and (Lead Natural Resources Management Specialist), Stavros Papageorgiou (Senior Environment Specialist), marine natural resources, due to a lack of consistency in sector policies and market development at the and Peter Kristensen (Lead Environment Specialist), as well as the Bulgaria country team and country regional and national levels. office technical staff. Overall management support and guidance was provided by Kseniya Lvovsky, Practice Manager for Environment, Natural Resources and Blue Economy in ECA), and Fabrizio Zarcone, Country iv. The input of Bulgaria’s maritime economy into the national economy, including employment, Manager for Bulgaria, Slovakia, and the Czech Republic. is significant relative to EU standards. Several marine-based sectors, including coastal and maritime tourism, fishery and aquaculture, shipping, ports, ship building and repair, and oil and gas exploitation, The contributions of all others not mentioned by name are gratefully acknowledged. generated roughly €995 million in gross value added (GVA) in 2018, which is roughly 2 percent of the national GVA of all economic sectors and accounts for 3.4 percent of all jobs,1 placing Bulgaria above European Union (EU) averages and above Italy and France. Given Bulgaria’s relatively smaller coastal and maritime space, these results illustrate the strategic importance of its maritime economy. Coastal tourism alone generated 80 percent of all blue economy jobs2 and contributed 69 percent to the blue economy GVA in 2018.3 The favorable conditions in Bulgaria for wellness and spa tourism along the coast represents a potential for additional jobs. The country’s fisheries sector, which includes capture fisheries, aquaculture, and fish processing, contributed €85 million to the economy, or 1.7 percent of the national GVA in 2018; it also employed 9,250 people, generating 9 percent of the blue economy jobs. In view of increasing seafood consumption globally, this sector offers major economic potential. __________________________  C, The EU Blue Economy Report 2020 (Brussels: European Commission, 2020). 1 E  he contribution of the established blue economy sectors to the EU-28 economy in 2018 was 1.5 percent in terms of GVA and 2.2 percent in terms 2 T of employment. See EC, The EU Blue Economy Report 2020. Ibid. 3  8 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 9 Table E.1. Bulgaria’s Maritime Economy at a Glance (2018) lagging horizontal integration across the maritime sectors and the lack of inclusive planning, which are central to the integration of policy and decision making, could undermine the country’s future economic Established Sectors Persons Employed (2018) GVA (2018) opportunities. EU blue economy policies are the cornerstone of the transformational framework for co- ordinated actions between national and local stakeholders and societal organizations toward the goal of Thousand % of national % of blue EUR % of % of blue reducing the impacts of production and consumption on the coastal and marine environment. (‘000) employment economy million national economy employment GVA GVA viii. The EU is and will remain an important driving force in defining many aspects of Bulgaria’s na- Coastal tourism 82.5 2.6 79 692 1.40 69.9 tional maritime economy policy development. Among other guidelines, this includes the policies on fisheries and aquaculture, integrated coastal zone management (ICZM), the Maritime Spatial Planning Marine living resources 9.25 0.3 9 85 0.2 9.0 Directive, the Marine Strategy Framework Directive (MSFD), the Water Framework Directive (WFD), the Marine non-living resources 0.09 0.2 0.9 11 0.02 1.1 Environment Impact Assessment/Strategic Environment Assessment, access to environmental informa- tion, the Habitat and Birds Directive, and so on. The relevant Bulgarian legal acts that transpose these Port activities 4.39 0.1 4.3 78 0.16 8.0 EU directives include: the Republic of Bulgaria Act on Maritime Spaces, Inland Waterways and Ports; the Shipbuilding and repair 4.95 0.2 4.9 91 0.18 9.0 Black Sea Coast Development Act; the Tourism Act; the Fisheries and Aquaculture Act; the Energy Act; the Concessions Act; the Mineral Resources Act; the Waste Management Act; the Biological Diversity Act; the Maritime transport 1.83 0.05 1.9 37 0.07 4.0 Protected Areas Act; the Water Act; and the Environment Protection Act. Blue economy employment/GVA 102.96 3.4 100.00 995 2.0 100.00 ix. The EU’s MSFD, which has been in force since 2008 and according to which member states are to National employment/GVA 3,069 NA 48,634 NA achieve, or maintain where it exists, “good environmental status” (GES) by 2020,7 is mostly unrealized. The Black Sea Marine Strategy up to 2021, which aims to support MSFD implementation, concludes that, Source: EC, The EU Blue Economy Report 2020 (Brussels: European Commission, 2020). due to significant pressures from human activities in the Black Sea countries, conditions for marine habi- tats and ecosystems have worsened, particularly in the coastal marine waters. Bulgaria has transposed the v. The economic potential of Bulgaria’s coastal and maritime ecosystem is at risk from human and MSFD into national legislation through the Regulation for the Protection of the Environment in Seawaters. climatic pressures. Urbanization, pollution, climate change, coastal erosion, and cliff retreat – all natural The National Advisory and Coordination Council for Protection of Black Sea environment8, chaired by the and human-induced impacts – are putting serious stresses on the coast. The estimated average rate of sea Minister of Environment and Waters, is responsible for reviewing and coordinating the national Marine level rise along the Bulgarian Black Sea coast varies from 1.5 to 3 millimeters per year.4 Along the coast, 11 Strategy prepared in compliance with the MFSD and for establishing a Program of measures for reaching sensitive stretches, with a total length of approximately 267 kilometers, are prone to a heightened risk of good environmental status of Bulgarian part of the Black sea. However, Bulgaria’s delay in meeting the floods.5 Concentrated urbanization, together with increased industrial development, including ports and MSFD’s reporting obligation has led to a legal procedure initiated by the European Commission (EC), which marine infrastructure, has strained the coastal environment, threatening habitats and the very values that recently reminded Bulgaria9 that it is overdue on this requirement. This means that Bulgaria needs to re- draw the interest of visitors and investors. view, in a coordinated manner, the initial assessment for GES determination and the environmental targets as elements of its marine strategies, a review that is required every six years after the targets have initially vi. A new challenge will be to find the metrics to gauge the extent to which Bulgaria’s blue econ- been established. Given that the noncompliance persists, the Commission has decided to refer Bulgaria’s omy transition could also foster growth and accelerate the pace of job and income creation in the case to the EU Court of Justice. hinterland regions. An upsurge in blue economy innovation and technology development could drive maritime economic expansion, and emerging new industries could create opportunities for high-quality x. Several sector strategies that have already been developed and are central to Bulgaria’s transi- jobs beyond the traditional sectors. Therefore, any future blue economy strategy should highlight that the tion to a blue economy may benefit from a more thorough look into the potential synergies in and distributional economic effects of the traditional and emerging sectors on onshore communities could conflicts over the use of resources within the sector. These include the Concept for Tourist Zoning in the well expand to those communities that may not be considered strictly coastal. Republic of Bulgaria; the Updated National Strategy for Sustainable Tourism Development (2014–2030); the Multiannual National Strategic Plan for Aquaculture; the Energy Strategy up to 2020; the Integrated Trans- port Strategy for the period until 2030; the Marine Strategy; and the National Climate Change Adaptation Where does Bulgaria currently stand on its maritime policy? Strategy and Action Plan. vii. As an EU member state, Bulgaria adheres to the acquis communautaire6 that shape the con- xi. Bulgaria is stepping up efforts to adapt to climate change and flood risks. The National Climate text in which gaps in the management of marine ecosystems and economies are to be addressed. Change Adaptation Strategy10 and Action Plan for the Republic of Bulgaria was approved by the Council of Bulgaria has set in motion the Marine Spatial Planning (MSP) procedures to bring together blue economy Ministers in 2019. The Strategy will serve as a reference document for adaptation actions and priorities until stakeholders and beneficiaries for the sustainable management of coastal and marine resources. Yet, the __________________________ __________________________ 7  The full definition is: “the environmental status of marine waters where these provide ecologically diverse and dynamic oceans and seas which are 4  L . Pashova and I. Yovev, “Geodetic Studies of the Influence of Climate Change on the Black Sea Level Trend,” Journal of Environmental Protection clean, healthy and productive within their intrinsic conditions, and the use of the marine environment is at a level that is sustainable, thus safeguarding and Ecology 11, no. 2 (2010): 791–801. the potential for uses and activities by current and future generations.” See EC, The EU Blue Economy Report 2020. 5  Flood Risk Management Plan of the Black Sea Region (2016–2022). 8 https://saveti.government.bg/web/cc_501/1 Acquis communautaire refers to the cumulative body of European Community laws, consisting of the European Commission’s objectives, substan- 6  9 See EC, “Marine Environment: Commission Decides to Refer Bulgaria to the Court of Justice of the EU over Late Reporting under the Marine Strategy tive rules, policies, and in particular, primary and secondary legislation and case law, all of which form part of the legal order of the EU. This includes Framework Directive,” July 2, 2020, https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1234. all the treaties, regulations, and directives passed by European institutions, as well as judgments laid down by the European Court of Justice. Documents are available at: https://www.moew.government.bg/en/climate/international-negotiations-and-adaptation/adaptation/. 10  10 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 11 2030. Flood risk maps of risk-prone areas have been produced to meet EU and national requirements.11 on the origin and sources of marine litter and its impacts, which include economic damage, habitat loss, They are included in the first Flood Risk Management Plan for the Black Sea Basin, prepared in 2018, and declines in biodiversity, injured animals, and so forth. address all aspects of flood risk management, taking into account the basin’s particular characteristics. As xvi. Leveraging the COVID-19 crisis and excessive pollution levels, Bulgaria can use the new EU recov- noted, there are 11 areas with significant potential risk of sea floods, including high and medium risk loca- ery funds to promote reforms with lasting benefits for coastal and marine natural capital that could tions, within the Black Sea Basin, with a total length of approximately 267 kilometers. In the different flood turn the tide of the recovery effort. The blue economy is an opportunity to define new poles of growth scenarios, the most at risk would be the critical infrastructure of the Burgas district, and the municipalities and job-creating options that will accelerate the transition to a new, sustainable, and more inclusive coast- of Nessebar and Burgas are the most vulnerable in terms of the potential number of people affected. al and marine economy. Bulgaria critically needs a proactive strategy and good data to accurately assess the impacts of the pandemic on the maritime sectors and to grasp the opportunity to rebuild with a blue economy fit for the future. Managing marine-related activities in a more coordinated manner will raise the From crisis to recovery: Bulgaria’s transition to a blue economy efficacy of investment initiatives and improve the livelihoods of local communities. Reducing policy uncer- xii. The outbreak of the coronavirus pandemic has placed substantial pressure on the Bulgarian tainties affecting the stocks of natural capital and promoting high-quality public and private investments economy. The GDP contracted by 10 percent in the second quarter of 2020, the deepest quarterly GDP that reverse the pressure on coastal and marine resources are equally important steps. A COVID-19 crisis slump on record amid efforts to contain the rapid spread of COVID-19 (IMF Policy Tracker, 2020). The nation- economic recovery program aiming to catalyze sustainable and equitable blue economic growth has the al GVA decreased by 8 percent year over year.12 The biggest drops were recorded in the entertainment and prospect of delivering long-term gains. Realizing the blue economy potential requires the balancing of recreation industry, trade and transport, accommodations, and manufacturing.13 To build back better, the short- and long-term objectives in the national plan for recovery and resilience, using financial resources to recovery models need to clearly articulate how they will fundamentally redefine the relationship between spur innovation and progress in the blue economy sectors. economic growth and sustainability. xvii. Bulgaria is an active player in the Black Sea regional cooperation effort. By embracing blue economic development in its governance and operational frameworks in line with the Common Mar- xiii. The blue economy sectors have been severely affected by the COVID-19 pandemic. The crisis took itime Agenda (CMA)16 for the Black Sea and its scientific pillar, the Strategic Research and Innovation its toll on the fisheries and aquaculture sectors, where many fishermen, producers, and processors have Agenda for the Black Sea (SRIA), Bulgaria could elevate its regional leadership position in the Black been forced to suspend or severely reduce their activities. The closure of sales venues, markets, outlets, and Sea region. Both the CMA and SRIA encourage national initiatives and projects that are complementary distribution channels has caused a substantial drop in prices and volumes. Tourism was among the sectors to enhancing regional dynamics, promoting blue economy regional value chains, and untapping invest- hardest hit. In July 2020, the total number of visitors from abroad to Bulgaria declined 66 percent from a ment opportunities. Mainstreaming their spirit and pillars in the country’s national policies and funding year earlier, with the biggest decline in holiday travel and recreation (-85.6 percent). Maritime transport has programs, in line with the recommendations provided in this report, would advance blue economy de- suffered a similar setback in recent months. velopment in Bulgaria and serve as a good practice example for other CMA countries. The World Bank is xiv. Adding to the pandemic’s impacts are the elevated levels of harmful substances14 in surface wa- also proactively involved in the Black Sea blue economy cooperation agenda through the preparation of a ters around industrial centers, large cities, and ports that are affecting health and tourism develop- multiyear program for “Blueing the Black Sea” (BBSEA). This program intends to provide comprehensive ment.15 Bulgaria has made some progress in addressing the lack of coherent environmental monitoring support to assist the Black Sea countries in expanding the knowledge platform for mobilizing investments and in increasing the accuracy of data on the marine environment. Although these actions will enable the and technical assistance. country to devise policy responses and support the transition to a sustainable and more synergetic blue economy, more timely actions to prevent pollution are required. The monitoring results of sea water quality in the Varna Bay at the mouth of the Kamchia River indicate a need for major improvements. The situation How Bulgaria can realize its blue economy potential? in the Bay of Burgas is similar, although less problematic. Along the coast there are 105 industrial sites in the basin area, 77 of which have been identified as significant sources of wastewater. Unabated marine xviii. The World Bank and the EC launched the Blue Economy Development Framework (BEDF) in pollution can affect many sectors and could also affect the revenues of industries that depend on the qual- 2019 to promote holistic consideration of the ocean economy and ecological systems in policy design ity of marine resources. and investments. The ensuing discussion on Bulgaria’s framework for a transition to more holistic blue economy development points toward the BEDF’s complementarity and usefulness as a set of tools to im- xv. To comply with the MSFD, Bulgaria has to monitor the quantity and quality of different catego- plement EU blue economy policies and directives in order to address higher-level policy issues through ries of recyclable waste. The reuse and recycling of waste in Bulgaria is still significantly lower than the integrated and coordinated management of all marine-related activities at the country level. BEDF tools, EU-28 average. Moreover, Bulgaria does not yet have a circular economy policy program, a gap that needs such as MSP, the valuation of natural capital, and the ecosystem approach, offer a unique point of entry to be addressed in line with the European Green Deal (EGD). This includes lowering the quantities and for Bulgaria to step up the blue transformation of established industries by strengthening the linkages be- quality of micro- and macro-waste on Black Sea beaches as well as floating surface marine litter, including tween productive and healthy ecosystems and the local economy and to generate spin-off benefits from what has been deposited on the seabed and in the biota. The monitoring program will provide information sector synergies and new investment opportunities. __________________________ Cf. Art. 6 of the Flood Directive 2007/60/EC and Art. 146d of the Water Act of Bulgaria. 11  12 Ministry of Finance “Monthly Report on Bulgarian Economy,” Ministry of Finance, Sofia, https://www.minfin.bg/en/870. Based on statistical data up to September 17, 2020. __________________________ 13 I bid.  ulgaria endorsed the “Common Maritime Agenda for the Black Sea” (CMA), which aims to expand the scope of cooperation in the Black Sea basin 16 B 14  This includes heavy metals, pesticides, and other persistent organic pollutants. on key sectors and to advance the commitments of the 2018 Burgas Ministerial Declaration “Towards a Common Maritime Agenda for the Black 15 Black Sea Commission, “State of the Environment of the Black Sea (2001–2006/7)” (Istanbul: Commission on the Protection of the Black Sea Against Sea.” The CMA facilitates cooperation and the advancement of political commitments among the Black Sea countries and underscores the current Pollution, 2008). barriers to addressing pollution issues at the regional level, namely, the triple gaps of knowledge, policy, and finance. 12 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 13 xix. MSP stimulates intersectoral and cross-border cooperation, fosters environmental protection, xxiii. Established blue economy sectors could do better if specific challenges from competing uses and enables private sector investment. MSP is promoted by the MSFD and BEDF as an effective blue were addressed. This could unlock the potential of traditional blue economy sectors and create more jobs, economy tool. MSP initially identifies the impacts of and opportunities for the multiple use of space and but it will require the better management, planning, and enhanced protection of coastal and near-shore includes the participatory determination of synergies and the planning of sector priorities. For example, if resources. Raising the efficacy of investment initiatives could improve the livelihoods of local communities. the priority is to support the shipping sector, MSP could set aside the free space needed for shipping rather These considerations have to trickle down in the sectors’ strategies to shape the policies for a blue economy than limiting shipping activities to designated areas. MSP should also ensure that safety zones to activities transition. A future blue economy strategy will have to promote actions to help monitor the established sec- incompatible with shipping are sufficient. Once approved, MSP reduces the risks to private sector invest- tors to ensure that they embrace circularity and resource-efficient practices to reduce marine pollution. ment. As such, MSP could be a vehicle to advance wider stakeholder and institutional engagement, both at the country and regional levels. ■ Adopt a vision, strategy, and roadmap for the blue economy. xx. The MSP process includes the identification of synergies and conflicts between maritime sec- xxiv. A national vision and strategy accompanied by a blue economy roadmap will help accelerate tors to provide important information for decision making in support of economic development and job the transition to a holistic approach and the consolidation of governance structures under strong growth.17 Traditional fishing communities are attractive destinations for tourists and support local growth national leadership and clearly defined institutional mandates. The roadmap will identify common pri- by: i) increasing the demand for local fish consumption, ii) participating in events promoting local tradi- orities and actions to be implemented in the coming years to steer up the transition to a blue economy tions,18 and iii) taking part in activities, such as recreational fishing, that can be further developed in Bulgaria. in an integrated, consistent, and comprehensive way, with a multisectoral approach and the continuous Capture fisheries frequently benefit from positive spillover effects generated by the marine protected areas engagement of all stakeholders. (MPAs) where fisheries resources are safeguarded effectively.19 Aquaculture, coastal tourism, ports, shipping, offshore oil and gas, marine mineral extraction, and fishing are all competing for access to marine space. xxv. Bulgaria’s blue economy strategy could create multiple opportunities for addressing the For example, the localization of offshore wind turbines needs to account for possible interference with radar post-pandemic financial shortfall to build forward a better and “greener” coastal and marine econo- operations20 and the safety concerns of smaller boats whose sight is impaired by the infrastructure. Similarly, my. Taking a holistic approach to sustainable blue economy development and applying integrated coastal fishing, aquaculture, and coastal tourism that are dependent upon healthy resources and ecosystems can be and marine planning will facilitate the more efficient programming of public financial resources, open up impacted by the pollution generated by offshore oil and gas, marine mining, and poor waste management. opportunities for private businesses and stakeholders to access funding, and help to shape coherent na- tional responses to transboundary and regional challenges. xxi. The valuation of natural capital and ecosystem services is a central policy instrument to the blue economy that is also promoted by the BEDF. By utilizing the ecosystem valuation approach, Bul- garia could complement public policies and regulations, help improve marine resource governance, and  trengthen blue economy governance, institutional collaboration, and stakeholder participation in ■ S enhance the effectiveness of public investments in the marine space. Natural capital valuation can also policy making. inform policy decisions toward the sustainable growth of marine-based industries by considering all costs xxvi. Setting a clear direction for the blue economy path will provide a platform for improved gov- and benefits, both internal and external. Using these tools will help address the current plethora of chal- ernance and coordination among all institutions and stakeholders in the blue economy sectors. Such lenges and risks to coastal and marine resources. coordination will ensure a consistency of sector development plans, facilitate synergies, help reduce com- petition over marine resources, and enable the formulation of priority investments. How can the blue economy sectors move forward? xxvii. The consolidation of existing governance structures will bring together institutions and spe- cialized government agencies with a mandate to regulate the use of marine resources. This includes xxii. The post-pandemic recovery of the economy, the ambitious targets of the EGD, and the new the harmonization of legislative frameworks for a “green transition” and the application of instruments EU multiannual financial planning for 2021–27 all pose challenges and opportunities for the Bulgarian that promote an ecosystem approach to sustainable blue economy development. In addition, to ensure authorities in their effort to restore growth and jobs. Given the economic value of Bulgaria’s maritime that MSP is implemented in a transparent manner, Bulgaria needs to introduce tools to quantify and evalu- economy, which is significant by EU standards, the blue economy sectors could provide a sizable con- ate trade-offs among competing uses, users, and finite resources and to accurately determine the positive tribution to the country’s post-pandemic economic recovery. Stimulating investments in bluer tourism, and negative consequences of the different options. reducing carbon emissions from shipping through “green” shipping and ports initiatives, harnessing the potential of blue value chains, restoring coastal ecosystems, and promoting emerging maritime sectors could help maximize the long-term benefits while supporting a short-term recovery. Setting in motion the ■ Protect natural assets and address marine pollution. necessary structural reforms, optimizing inter-institutional coordination, diversifying supply chains, and xxviii. An essential element of the sustainable blue economy is safeguarding blue natural capital. A better integrating circular economy principles in the blue economy additionally offer a path to economic dedicated effort in this respect is the development of a National Action Plan for marine litter as part of the revival. This course of action will also help Bulgaria to assume an exemplary role in tackling common chal- implementation of the Black Sea Marine Litter Regional Action Plan adopted by the Commission on the lenges in the Black Sea regional basin and strengthen its leadership position for CMA implementation. Protection of the Black Sea Against Pollution in 2018.21 This plan will include: a) the adoption of specific __________________________ policies, legal instruments, and institutional arrangements, including management plans for solid waste,  CF Consulting, “Study on the Economic Benefits of Marine Protected Areas,” Task 4 Stakeholder Consultation, Final Report (Brussels: European 17 I Commission, 2017), http://publications.europa.eu/resource/cellar/bbee9116-b0c5-11e8-99ee-01aa75ed71a1.0001.01/DOC_1. 18 F  or example, the mussel festival in in the town of Kavarna on the North Bulgarian coast. __________________________  C, The EU Blue Economy Report 2019 (Brussels: European Commission, 2019). 19 E  he overall objective of the Plan is to consolidate, harmonize, and implement the necessary environmental policies, strategies, and measures for 21 T 20 See EC, “Shipping and Ports,” Sector Fiche, https://www.msp-platform.eu/sites/default/files/sector/pdf/mspforbluegrowth_sectorfiche_shipping- the sustainable integrated management of marine litter issues in the Black Sea region. See http://blacksea-commission.org/Downloads/BS_Ma- ports.pdf. rine_Litter_RAP_adopted.pdf. 14 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 15 that incorporate prevention and cleanup programs for the removal and disposal of marine litter; (b) a mon- xxxiii. There is a need to strengthen institutional and stakeholder capacity for better economic plan- itoring program to assess the current status of the marine environment with respect to marine litter; and ning and investment decisions. The blue economy could open a space for collaboration among stake- (c) awareness raising and education programs and campaigns. holders and opportunities for enhanced knowledge exchange and partnerships among various agencies using blue economy tools. This could unlock more opportunities for innovation, private investments, and xxix. Furthering a national vision and strategy on mainstreaming government policies for the uptake local growth. of the circular economy by all economic sectors will provide a springboard from which to ascertain the effectiveness and efficacy of marine protection policies. It will allow a shift away from “take-make- dispose” linear models in the value chains to restorative and regenerative ones. Bulgaria can use the blue ■ Invest in innovation and human capital. economy policies to overcome the strict delineation of marine sector value chains and to design and roll xxxiv. Emerging blue economy sectors could turn into growth centers if the policies to promote in- out circularity in the business models of these sectors for the optimal sustainability performance of Black novation and private sector uptake are in place. Of the new emerging and innovative sectors, offshore Sea resources. wind energy stands out as having the highest potential. This needs to be studied further. Prospects for a blue bio-economy and biotechnology, along with coastal protection through nature-based solutions, are ■ Leverage financing for the blue economy transition. growing and also need further assessment. The outlook for environmental monitoring and technology development through research and innovation is also improving and could be an area to stimulate, given xxx. The blue economy can play an important role in the transition to carbon neutrality, as implied the strong technical and scientific potential of the Bulgarian academic and research community. by the EGD, making it an important area for investment. Ahead of the new EU programming period, Bulgaria has a real chance to shape an effective COVID-19 recovery plan for its coastal communities, and xxxv. Support to scientific and research capacity in blue economy sectors will be key to the imple- the ecosystems these communities are dependent upon, and to support the business operators and stake- mentation of MSP and coordination on priority investments. Sensitizing the decision makers in Bulgaria holders active in the different sectors of the blue economy. Considering the growing number of financing to opt for nature-based solutions in the prospective blue sectors and in job creation could help expand the avenues for innovative blue business solutions, notably by EU institutions and development banks, a pro- benefits of transitioning to blue development. Science could help reduce the policy uncertainties affecting gram of measures at the national level could consider targeted assistance to small and medium-sized en- the stocks of natural capital and also promote the kind of investment that reverses the existing pressure on terprises (SMEs), start-ups, and entrepreneurs to help them prepare better project proposals and working natural resources. patterns and also to promote sustainability principles in the real economy. xxxvi. Calibrating existing and new sectoral funding programs for skills development could (i) take xxxi. It will be crucial to plan measures in support of key blue economy sectors (e.g., fisheries, aqua- advantage of the available EU-funded networks and schemes,23 and (b) help to attract young talent to culture, maritime transport, and tourism) in the national recovery and resilience plan to unlock the the blue economy, stimulate productivity, and increase the competitiveness of Bulgaria’s blue economy funds under the €750 billion EU recovery package. Against the strong conditionalities for accessing development. these funds, highlighting the blue economy’s potential to contribute to the EU green and digital transi- tions could be beneficial. The recovery funds can be instrumental in helping to scale up innovative activ- ities, such as sustainable offshore food and biomass production and renewable energy, in a way that it is environmentally sound and preserves ecosystems. xxxii. Catalyzing investments could be hindered only by a weak capacity to identify bankable sectoral in- vestments that mutually reinforce the economic, environmental, and coastal community benefits. Sourc- es and diverse funding avenues that could be potentially tapped include government budgets, EU public funding, commercial loans, lending from international financial institutions, and financing from capital markets. Marine and maritime-related investments can get support through a variety of EU funding instru- ments. For instance, the European Maritime and Fisheries Fund (EMFF) supports the implementation of the common fisheries policy and investments to advance maritime policy at the national level. Reducing pollution in the marine environment and the adverse effects of climate change can be funded through the next generation of interregional and cross-border cooperation programs (e.g., the Interreg NEXT Black Sea Basin program). To help the economy navigate through the “green” and “blue” transitions, Bulgaria can access additional EU-powered investments for specific areas, such as the EU BlueInvest platform22 and the future InvestEU program. The EU Recovery Fund, through a dedicated allocation for Bulgaria, will be in- strumental in the short and medium term in scaling up investments in innovation in sustainable food and biomass offshore production and renewable energy in ways that preserve ecosystems. The World Bank, under its regional BBSEA program, is looking at avenues to support projects that address marine pollution and marine litter in the Black Sea countries. St Ivan island (view from Sozopol) __________________________ __________________________  lueInvest aims to boost innovation and investment in sustainable technologies for the blue economy by supporting readiness and access to 22 B finance for start-up businesses, SMEs, and scale-ups. It is enabled by the European Maritime and Fisheries Fund and open for stakeholders in The Blueprint for Sectoral Cooperation on Skills was one of the key initiatives of the Skills Agenda for Europe 2016. Within the Pact for Skills of the 23  Bulgaria. See https://webgate.ec.europa.eu/maritimeforum/en/frontpage/1451. Updated Skills Agenda 2020, it will be expanded and opened to more sectors. 16 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development Introduction 17 T he concept of the blue economy is progres- A large part of the Bulgarian coastal economy relies sively gaining an important status in the eco- on traditional sectors, such as beach tourism, fish- nomic development of European Union (EU) eries, maritime transport, and mineral extraction. member states. The term “blue economy” refers to However, recent years have witnessed an increas- the sustainable use of ocean and maritime resourc- ing fragmentation in the management of the es for economic growth, improved livelihoods and coastal environmental and marine natural resourc- jobs, and the lasting health of ocean and maritime es, inconsistent sector development policies, and ecosystems. Global advancement of the blue econ- untapped markets and labor force opportunities at omy paradigm has spurred a new momentum for the regional and national levels. EU policy makers to rethink the development path EU blue economy policies are the cornerstone of of coastal and marine spaces and put in place pol- the transformational actions of national and local icies and investments that support sustainable de- stakeholders and societal organizations to reduce velopment across all member states. In the case of the impacts of production and consumption on the Bulgaria, the country’s coastal and marine areas will coastal and marine environment. As an EU member face unique challenges and opportunities related state, Bulgaria adheres to the acquis communau- to the transition to a blue economy.24 taire that shape the context in which management The Black Sea coastline of Bulgaria is a mosaic of gaps of marine ecosystems and economies are to be marine and terrestrial systems of great natural addressed. Bulgaria has set in motion the Maritime value and socioeconomic benefit. The coastline Spatial Planning (MSP) procedures to bring togeth- stretches over 432 kilometers and borders Romania er blue economy stakeholders and beneficiaries for on the north of Cape Sivriburun, and the Republic the sustainable management of coastal and marine of Turkey on the south of the Cape of Rezovo resources. Yet, the lagging horizontal integration (Stanchev, Young, and Stancheva 2013). In the across sectors and a lack of inclusive planning – cen- north, the Black Sea marine shelf is 120 kilometers tral to the integration of policy and decision making wide, dropping down to 30 kilometers southeast – could undermine Bulgaria’s opportunities for po- of Cape Kaliakra. The maximum depth of the tential gains from the transition to a blue economy. Bulgarian part of the Black Sea is 2,150 meters. Most The EU will remain an important stakeholder of the rivers that flow from the coast to the Black in this process by defining many aspects of the Sea are small, with the exception of the Kamchia national blue economy policy development. River. The coast supports important Ramsar sites Among other guidelines, this includes the policies that were included in the EU’s Natura 2000. Coastal on fisheries and aquaculture and integrated lakes, lagoons, and marshes sustain habitats of coastal zone management (ICZM), the Marine high ecological and conservation value. Marine Strategy Framework Directive (MSFD), the Water areas under Natura 2000 protection regimes cover Introduction Framework Directive (WFD), the Habitat and Birds roughly 2,827 square kilometers, which is 8 percent Directive, the Environmental Impact Assessment/ of the total marine area of Bulgaria.25 Strategic Environmental Assessment, access to Urbanization, pollution, climate change, coastal environmental information, and the Maritime erosion, and cliff retreat – all natural and human- Spatial Planning Directive. The EU’s MSFD has been induced impacts – are putting pressure on Bulgaria’s in force since 2008 and requires member states coast. The estimated average rate of sea level rise to set up national marine strategies to “achieve, along the Bulgarian Black Sea coast varies from 1.5 or maintain where it exists, ‘good environmental to 3 millimeters per year (Pashova and Yovev 2010). status’ by 2020.”27 The Black Sea Marine Strategy There are 11 stretches along the coast, with a total for Bulgaria up to 2021, developed to support length of approximately 267 kilometers, that are MSFD implementation, concludes that, due to the under a heightened risk of sea floods.26 significant pressure from human activities in the __________________________  y “transitioning to the blue economy” this report refers to the transitioning to a more comprehensive and holistic approach to the management of blue 24 B economy assets across marine-based sectors in Bulgaria and in the context of the EU Blue Economy and Blue Economy Development Framework (BEDF). Natura 2000 terrestrial and marine areas in Bulgaria cover 41,560 square kilometers. 25   lood Risk Management Plan of the Black Sea region (2016–2022). 26 F  he full definition is: “the environmental status of marine waters where these provide ecologically diverse and dynamic oceans and seas which are 27 T clean, healthy and productive within their intrinsic conditions, and the use of the marine environment is at a level that is sustainable, thus safeguard- ing the potential for uses and activities by current and future generations.” See EC (2020). Yaylata Reserve 18 Bulgaria: Towards Blue Economy Development Introduction Bulgaria: Toward Blue Economy Development Introduction 19 Black Sea countries, conditions for marine habitats cilitate a Black Sea development shift with a focus nificantly contribute to the economy but where ment, and DG for Regional and Urban Policy), the and ecosystems have worsened, particularly in the on the environmental and social dimensions. challenges and unsustainable patterns could under- Black Sea Economic Cooperation (BSEC), and the coastal marine waters. mine future growth. In doing so, policy recommen- Commission on the Protection of the Black Sea Many of the worrisome signs of economic decline dations concentrate on interconnected areas of criti- against Pollution (the Black Sea Commission, or The World Bank and European Commission (EC) due to the COVID 19 pandemic have manifested cal importance to protecting the coastal and marine BSC) are important stakeholders in the Black Sea launched the Blue Economy Development Frame- themselves in the national economy. National gross ecosystem to preserve the substantial economic CMA and will likewise find the information useful. work (BEDF) in 2019 to promote the holistic consider- value added (GVA) has decreased by 8 percent opportunities that could be derived from a healthi- ation of the ocean economy and ecological systems year over year (Bulgaria 2020).28 The biggest drops The note is organized into six chapters. Following the er coastal and marine space. Importantly, the policy in policy design and investments. The ensuing dis- were recorded in the entertainment and recreation Introduction, Chapter 1 introduces the macroeco- recommendations also factor in actions to align with cussion of Bulgaria’s framework for the transition to industry, trade and transport, accommodations, nomic context of the coastal and marine economy in the EU’s blue economy framework where enhanc- a blue economy points to the complementarity and and manufacturing (Bulgaria 2020). In the second Bulgaria. Chapter 2 presents the blue economy con- ing the potential complementarity with the BEDF utility of the BEDF, in addition to other EU blue econo- quarter of 2020, the revenue from tourism, a ma- cept – its known definitions and the holistic think- toolkit could stimulate sustainable blue economy my policies and directives, in addressing higher-level jor contributor to the economy, posted a slump ing that underpins it – by introducing the BEDF and investments. policy issues through the integrated and coordinated of 31 percent.29 To build forward better, the recov- its use in strengthening the governance of the blue management of all marine-related activities at the ery models need to clearly articulate how they will The objective of this Policy Note is to inform Bul- economy in Bulgaria, as inspired by the momentum country level. BEDF tools, such as MSP, the valuation fundamentally redefine the relations between eco- garia’s vision and strategy for transitioning to a created at the regional forefront with the adoption of natural capital, and an ecosystem approach, offer nomic growth and sustainability. The blue econo- blue economy by identifying the challenges and of the CMA for the Black Sea. Chapter 3 presents a another unique point of entry for Bulgaria to step up my is an opportunity to define new poles of growth opportunities in shaping a development frame- snapshot of the established sectors of the Bulgarian the “blue” transformation of established industries by and job-creating opportunities that will accelerate work based on a holistic ecosystem approach to blue economy (coastal and marine tourism, fisheries strengthening the linkages between productive and the transition to a new, sustainable, and more inclu- the management of coastal and marine resourc- and aquaculture, marine non-living resources, mar- healthy ecosystems and the local economy and to sive coastal and marine economy. At the same time, es. It aims to engage the primary audience from itime transport, and ship building and repair), and generate spin-off benefits from sector synergies and avenues to establish the right balance between the government of Bulgaria, including the coordi- also reveals some of the potential in the emerging new investment opportunities. economic pursuits and the protection of natural nator of the CMA for the Black Sea, the Ministry of sectors, such as blue energy, coastal protection, and resources and natural assets (a “sustainable blue Transport, Information Technology and Communi- environmental monitoring. Chapter 4 elaborates on Bulgaria has endorsed the “Common Maritime economy”) are highlighted. cations (MoTITC), other government stakeholders the current and potential options and opportunities Agenda for the Black Sea” (CMA), supported by in the blue economy sectors, and local authorities for financing the blue economy in Bulgaria, while the EU, which aims to expand the scope of coop- This policy note analyzes the challenges and op- of coastal municipalities. The broader stakeholder Chapter 5 reviews the institutions and other stake- eration in the Black Sea basin on key sectors and to portunities central to Bulgaria’s transition to a blue community involved in the blue economy sectors, holders that are directly involved in its advancement. advance the commitments of the 2018 Burgas Min- economy in the key economic sectors that depend such as industrial associations, scientific organiza- Chapter 6 summarizes the recommendations on isterial Declaration “Towards a Common Maritime on coastal and marine resources. It highlights the tions, civil society, and local communities, will also priority measures and investments in selected ma- Agenda for the Black Sea.” The Strategic Research drivers for growth that could support the develop- benefit. The EC (the Directorate-General [DG] for rine-based sectors that are key to the transition to and Innovation Agenda for the Black Sea (SRIA) will ment of evidence-based policy reforms and invest- Maritime Affairs and Fisheries, DG for the Environ- blue economic development. support research in key sectors, including biodiver- ment plans for the sustainable economic develop- sity, cultural heritage, and local, national, and trans- ment of coastal and marine areas. The method used boundary policy measures. Although the CMA has for the analysis is a baseline review of the established facilitated and advanced the political commitment blue economy sectors and an assessment of the syn- of the Black Sea countries to cooperate, it has also ergies and potential user conflicts over coastal and underscored the current barriers to addressing pol- marine resources. The analysis uses predominantly lution issues at the regional level, which include a secondary data sources. An essential component of lack of knowledge, policy, and financing. Both the the analysis is a review of the underpinning policy CMA and SRIA set a new dynamic for better gov- and institutional context for the transition to blue ernance of the sea based on enhanced political economic development. Economic indicators used and operational coordination, while recognizing in Chapter 1 for the overview of Bulgaria’s maritime the added value of joint projects to implement economy are based on the EU Blue Economy Re- the shared objectives. Bulgaria’s evolution to bet- port from 2019 (EC 2019a). The note then undertakes ter stewardship of marine resources could provide a deeper analysis of key established and emerging a valuable example in the Black Sea region, where maritime sectors. For the sector analyses, the note environmental challenges remain a substantial de- uses data from EU sources and national agencies, terrent to development. The BEDF toolkit could fa- and the recommendations focus on areas that sig- __________________________ 28 Based on statistical data up to September 17, 2020. North of Durankulak beach 29 Based on data from Bulgaria’s National Statistical Institute (NSI) for the second quarter of 2020 on total expenditure on tourist trips. 20 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development Chapter 1 21 S ituated in one of the most attractive regions the past couple of decades. Moreover, the existence of Europe, Bulgaria’s Black Sea coast is en- of numerous marinas and other relevant port infra- dowed with abundant natural resources and structure supports the development of cruise tour- a deep cultural heritage. The western shore of the ism, boating, and other forms of marine-based rec- Black Sea features a diverse coastline of wide sandy reational tourism, though these developments are beaches and dunes and magnificent cliffs. It offers still on a lower scale. a temperate climate, favorable for seaside holiday Bulgaria’s Black Sea coast offers an attractive living tourism. There are more than 70 significant sand environment. It is home to 726,923 people, which beaches along the coast, covering an area of approx- is 9.87 percent of the nation’s population.30 Pop- imately 7 million square meters. The Black Sea is ulation density in the coastal municipalities is 126 tideless and its waters have a low salinity (16–18 per- persons per square kilometer, much higher than cent), which, together with its moderate tempera- the 63 persons in the rest of Bulgaria’s cities. The ture during the summer (22–25°С), makes it suitable coast offers job opportunities and has traditionally for swimming and bathing and other marine-based well-established blue economy sectors that include activities. Through interregional transport and con- the following: nections to the Black Sea region and the rest of the world, two areas bordering the Black Sea, the North  oastal and maritime tourism, including subsec- ■ c East and South East regions, make essential contri- tors or diverse forms of tourism, such as beach butions to Bulgaria’s economy. In addition, there are tourism; cultural and underwater cultural her- advantages to the country’s location on important itage (UCH)/adventure tourism; historical, well- gas transmission corridors, including the prospec- ness, and spa tourism; eco- and nature-based tive exploration in new gas fields. tourism; cruise and yachting tourism; and recre- ational boating Bulgaria supports important maritime infrastruc- extraction and commercialization of marine liv- ■  ture that services passengers, cargo, and fishing ing resources (fishery, aquaculture, and process- activities. The two largest sea harbors are in the ing and distribution) district centers of Burgas and Varna. Both ports op- erate as multi-modal terminals with the technical ■  maritime transport, ports, shipbuilding, and ship capacity to support maritime industry and trans- repair, including smart/green shipping and the port. Port locations benefit from new offshore uses maritime industry and offer a wide range of industrial production fa- marine extraction of minerals, oil, and gas (ma- ■  cilities. Coastal aquaculture has grown rapidly over rine non-living resources) Chapter 1. Table 1. Bulgaria’s Maritime Economy at a Glance (2018) Established Sectors Persons Employed (2018) GVA (2018) Snapshot of Thousand % of national % of blue EUR % of % of blue (‘000) employment economy million national economy employment GVA GVA Bulgaria’s Coastal Coastal tourism 82.5 2.6 79 692 1.40 69.9 Marine living resources 9.25 0.3 9 85 0.2 9.0 Marine non-living resources 0.09 0.2 0.9 11 0.02 1.1 and Marine Economy Port activities 4.39 0.1 4.3 78 0.16 8.0 Shipbuilding and repair 4.95 0.2 4.9 91 0.18 9.0 Maritime transport 1.83 0.05 1.9 37 0.07 4.0 Blue economy employment/GVA 102.96 3.4 100.00 995 2.0 100.00 National employment/GVA 3,069 NA 48,634 NA Source: EC (2020). __________________________ 30 Last census (2011) data from the National Statistical Institute of Bulgaria Burgas harbor 22 Bulgaria: Towards Blue Economy Development Chapter 1 Bulgaria: Toward Blue Economy Development Chapter 1 23 The key marine-based sectors of Bulgaria – coast- of the national GVA in 2018; it also employed 9,250 al and maritime tourism, fishery and aquaculture, people, generating 9 percent of the blue economy shipping, ports, ship building and repair, and oil jobs. Noting increasing seafood consumption glob- and gas exploitation – employed 102,962 people ally, this sector offers significant economic poten- and generated roughly €995 million in GVA in 2018 tial. Given the relatively smaller coastal and mar- (EC 2020). This is 2 percent of the national GVA of all itime space of Bulgaria, these results illustrate the economic sectors and 3.4 percent of all jobs, placing strategic importance of Bulgaria’s maritime econ- Bulgaria above EU averages31 and above Italy and omy (see table 1 and figures 1 and 2). Taking a clos- France. Coastal tourism alone generated 80 per- er and more holistic look at the opportunities that cent of all blue economy jobs and contributed 69 each sector brings to the blue economy as a mix percent to the blue economy GVA in 2018 (EC 2020). of interconnected economic activities would make Bulgaria’s fisheries sector, which includes capture it possible to better understand the development fisheries, aquaculture, and fish processing, con- risks and chart a way forward that factors in the fu- tributed €85 million to the economy, or 1.7 percent ture challenges. Figure 1. Blue Economy Employment Figure 2. Blue Economy Contribution in Established Sectors to GVA of Established Sectors Sozopol marina 79% 70% Blue Economy Blue Economy GVA jobs by sectors by sectors The outbreak of the coronavirus pandemic has for the future. Leveraging the crisis to promote re- 2% (%, 2018) 4% (%, 2018) placed substantial pressure on the Bulgarian eco- forms with lasting benefits on coastal and marine 5% nomy. Bulgaria’s GDP contracted by 10 percent in natural capital could turn the tide of the recovery 4% 9% the second quarter of 2020, more than the prelimi- effort. One way will be by reducing policy uncer- 1% nary estimates of 9.8 percent. This was the deepest tainties affecting the stocks of natural capital and 9% 8% quarterly GDP slump on record amid efforts to con- promoting high-quality public and private invest- 1% tain the rapid spread of COVID-19 (IMF 2020). ments that reverse the pressures on coastal and 9% marine resources. Coastal tourism Blue economy sectors have been affected by the Coastal tourism Maritime transport COVID-19 pandemic in many ways. The crisis has Designing a COVID-19 economic recovery program Maritime transport Shipbuilding and repair taken its toll on the fisheries and aquaculture sec- with a view to catalyzing sustainable and equita- Shipbuilding and repair Post activities tors, where many fishermen, producers, and pro- ble blue economic growth has the potential “to de- Post activities Marine non-living resources cessors have been forced to suspend or severely liver short-term economic, social, health and envi- Marine non-living resources Marine living resources reduce their activities. The closure of sales venues, ronmental benefits for affected communities and Marine living resources markets, outlets, and distribution channels has sectors, while building longer-term social, eco- Source: EC (2020). Source: EC (2020). caused a substantial drop in prices and volumes. nomic and ecological resilience” (Northrop et al. Tourism was among the sectors hardest hit. In July 2020). This potential could be realized by balancing 2020, the total number of visitors to Bulgaria from short- and long-term objectives in a national plan A new challenge will be to find the metrics to gauge will create new opportunities for high-quality jobs abroad declined 66 percent from a year earlier, with for recovery and sustainability, using the financial the extent to which Bulgaria’s blue economy transi- beyond the traditional sectors. Therefore, any fu- the highest decline in holiday travel and recreation resources to spur innovation and progress. For in- tion could foster growth and accelerate the pace of ture blue economy strategy should highlight that (-85.6 percent). Maritime transport has suffered a stance, investments in the restoration of the coast- job and income creation in the hinterland beyond the distributional economic effects of the tradition- similar setback in recent months. Despite the rapid al and marine ecosystem, newly emerging sectors the coast. An upsurge in blue economy innovation al and emerging sectors on onshore communities deployment of compensation measures for these and the decarbonization of the marine economy, and technology development will drive maritime could well expand to those communities that may sectors, the path to recovery might be longer than traditional and green infrastructure for protecting economic expansion, and emerging new industries not be considered strictly coastal. anticipated. Bulgaria critically needs a proactive coastal and marine ecosystems, and diversified job strategy and good data to accurately assess the opportunities in traditional sectors would all be in- __________________________ pandemic’s impacts on the blue sectors and to strumental in advancing Bulgaria’s transition to a  he contribution of the established blue economy sectors to the EU-28 economy in 2018 was 1.5 percent in terms of GVA and 2.2 percent in terms 31 T of employment (EC 2020). grasp the opportunity to build a blue economy fit blue economy. 24 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development Chapter 2 25 T he “blue economy” has emerged as an um- dermining natural systems. brella term related to the development of In December 2019, the EC adopted a new growth oceanic and maritime economic activities strategy based on the notion of decarbonization in an integrated and sustainable way. According to and sustainability by announcing the European the World Bank, “the Blue Economy concept seeks Green Deal (EGD) for the EU and its citizens (EC to promote economic growth, social inclusion, and 2019b). The EGD package of measures suggests the preservation or improvement of livelihoods a successful “transition towards digital, knowl- while at the same time ensuring environmen- edge-based, decarbonized and more circular in- tal sustainability of the oceans and coastal areas” dustry in Europe,”32 thus aiming to make Europe (World Bank and United Nations 2017). It empha- the first climate-neutral continent by 2050 to im- sizes that “blue” economic development depends prove the health of the planet, economy, and peo- not only on governments but also on the active and ple. This means, for instance, that fossil-intensive sustained engagement of all stakeholders, includ- maritime industries must decarbonize to keep their ing national, regional, multilateral, and internation- license to grow. Conversely, the blue economy is al organizations, the public and private sectors, civil seen as a critical enabling vector to reach the EGD society, and other relevant participants, as well as objectives, including in mitigating and adapting to the effective management of knowledge. climate change. For example, the growing potential The EU has been particularly active in promoting of offshore renewable energy and more sustainably economic growth based on the sustainable use of managed maritime space is considered an import- oceans and seas (blue growth). The EU Integrated ant contributor to the EU’s “green” transition. Maritime Policy (EC 2007) builds on the notion of the interconnectedness of industries and human activities centered on the sea. It promotes a holis- 2.1. Blue Economy Development tic approach to all sea-related policies with a view Framework to supporting sustainable sea and ocean develop- ment and establishing coordinated and transpar- In 2019, the World Bank and the EC launched the ent decision-making processes in the EU’s sectoral BEDF to promote the holistic consideration of the policies on seas and marine activities, including via ocean economy and ecological systems in policy its sea-basin and macro-regional strategies. Con- design (see figure 3). The entry point of the frame- sequently, the EU’s blue growth strategy (EC 2012) work is economic development that is attuned to has identified five innovative, high-potential mari- the changes in the flow of blue natural capital as time sectors – blue energy, aquaculture, coastal and inputs to the economy over time and also aims maritime tourism, blue biotechnology, and sea-bed to reduce the negative outputs, such as pollution mining – where great opportunities exist for ex- and marine litter, that undermine the quality of the Chapter 2. ploitation by expanding industries in a sustainable way. ocean’s natural capital. The BEDF promotes a mul- tisectoral, integrated, and participatory approach to coastal and marine development at multiple The Blue Economy’s EU legislation on the marine environment and on levels. Central to the framework are (a) knowledge MSP is particularly forward looking. It aims to strike management; (b) governance, fiscal reforms, and a balance between the protection of marine biolog- public investments that help create an enabling ical and natural systems and rule-based economic Development environment for sustainable private sector growth development at sea. Although key blue economy (de-risking growth); and (c) the promotion of pri- sectors, such as coastal and maritime tourism, fish- vate investment, all underpinned by a number of eries, and aquaculture, are severely affected by the key cross-cutting considerations. Context coronavirus pandemic, the EU blue economy as a whole is projected to grow in the future and has the The BEDF factors in environmental degradation potential to significantly contribute to a recovery and the impacts of climate change into marine re- without lowering environmental standards and un- source governance strategies. It supports the tran- __________________________ European Parliament, “Industrial Policy,” Briefing (Brussels: European Union, 2019), 32  https://www.europarl.europa.eu/RegData/etudes/BRIE/2018/630309/EPRS_BRI(2018)630309_EN.pdf. Burgas central beach, view from the Sea garden 26 Bulgaria: Towards Blue Economy Development Chapter 2 Bulgaria: Toward Blue Economy Development Chapter 2 27 sition to more diverse and sustainable blue econ- space. Development of this kind of framework at the The blue economy approach is opportunistic yet Box 1. BEDF Toolkit Elements Enabling omies, while building resilience to climate change. country level is an iterative process that builds on highly strategic in initiating and tapping into sec- Adaptation to Country-Specific It is also a new tool in developing a systematic and active stakeholder participation and collaboration; Conditions tor synergies, as it can be tailored to the country’s scalable approach to defining a country’s blue sectoral coordination on a variety of approaches, specifics. Thus, the BEDF offers complementary Building a detailed picture of a country’s current ma- applications that could be chosen concurrently, de- economy opportunities, constraints, and priority in- such as mapping, delineation, and the demarcation rine natural capital and its productivity, including vestments. pending on each country’s development stage and of blue economy activities specific to the country; through blue Public Expenditure and Institutional Re- views objectives. International examples of specific appli- Contrary to the single-sector approach that leads and the determination of synergies for coordinated cations of BEDF tools are in boxes 2 and 3. management and investments in common priority ■  Identifying constraints to developing a more pro- to disconnected decisions, inefficient resource use, ductive blue economy in a country and missed opportunities, the BEDF promotes an areas. The BEDF offers a toolkit to enable countries ■  Assessing the potential for generating greater value integrated and coordinated application of different to adapt a blue economy development paradigm to and creating more and better jobs Box 2. Integrated Management Plans sectoral policies in the coastal zone and maritime country-specific conditions (see box 1). for Norway’s Marine Areas Understanding and managing synergies and trade- ■  offs across sectors With the aim of providing a multisector basis for de- Figure 3. Blue Economy Development Framework ■  Improving climate resilience cision making, the Barents Sea plan was developed jointly by four of Norway’s ministries: the Ministries of Integrated Spatial and Participatory Approach to Territorial Development These tools include but are not limited to: the Environment, Foreign Affairs, Fisheries and Coastal ■ i ntegrated marine spatial planning and coastal zone Affairs, and Petroleum and Energy, with the Ministry  efine priorities with stakeholders ■ D management of the Environment acting as the Secretariat. The plan  gree trade-offs ■ A was presented to parliament as a government white ■ D  evelop future ‘Vision‘ for ocean space blue public expenditure review ■  paper in March 2005 and ratified by parliament in June value chain assessment ■  2006. This national plan covers the Norwegian Eco- ■  natural capital nomic Zone and the Fisheries Protection Zone around Svalbard and provides a framework for the sustainable use of natural resources and goods derived from the BEDF tools could be used to effectively strengthen Barents Sea-Lofoten area and the continued health institutional and stakeholder capacity. It is a space for and safety of the entire marine ecosystem, as well as collaboration, enhanced learning, and partnerships the human communities that depend on it. among various agencies, using the toolkit to unlock The Norwegian marine management plans were de- veloped to provide a foundation for the coexistence more options for innovation and investments. Impor- of all the industries within the planning area, as well tantly, the BEDF could serve as a platform for engag- as a decision-making framework based on a broad KNOWLEDGE GOVERNANCE, FOSTERING PRIVATE ing the private sector in new investment opportu- knowledge of the environmental and economic con- MANAGEMENT FISCAL REFORMS INVESTMENT nities and accessing public initiatives and resources sequences of current and future activities in the desig- FOR DE-RISKING ■ Identify potential that promote an integrated approach to the sustain- nated areas. The management plans also ensure that  ses and activities ■ U able development of coastal and marine areas. Norway fulfills its international obligations (e.g., the ■ D  istribution and ■ I  dentify pathways investor opportunities Law of the Sea Convention, the Convention on Biolog-  ank sectors based ■R status of marine to prosperity in MSP as an essential BEDF tool helps national au- ical Diversity, the Johannesburg Declaration, the Ma- on their potential resources seascape investability Adopt Blue thorities to accommodate the blue economy tran- lawi-Protocol, the UN Agreement on Management of ■ V  alue of ecosystem ■ A  ssess and reform sition by creating a framework for evidence-based Straddling Fish Stocks, the Stockholm Convention, the finance principles Convention for the Protection of the Marine Environ- goods and services economic/fiscal policy ■I  dentify new sources of and inclusive maritime spatial plans. It can also help ment of the North-East Atlantic [the OSPAR Conven- ■ E  xisting governance (Blue PEIR) private capital assess the future spatial needs of maritime sectors, tion], the Convention for the Safety of Life at Sea, and arrangements  dentify public ■ I including emerging blue economy sectors. Other the Convention for the Prevention of Pollution from  hreats, gaps, ■ T investments and BEDF tools supporting equally important actions Ships), although these also put constraints on the synergies spending to sustain a to address the current challenges facing the coast- design of the management plans. Furthermore, an blue economy. al and marine economy – and that are attuned to ecosystem approach to management is an important theme for Norway in international cooperation with- the CMA and SRIA – include fostering knowledge in a range of forums (e.g., the International Council Gender transfer from research to business and accelerat- for the Exploration of the Sea, the North-East Atlantic Climate ing technology innovations; promoting the needed Fisheries Commission, the Arctic Council, the EU, the maritime skills development in the labor force to Nordic Council, Norwegian-Russian cooperation [envi- Change apply the new technologies; producing better and ronment and fisheries], and the UN International Mar- more relevant data and information; and develop- itime Organization). Diagnostic Strategic ing initiatives that facilitate and streamline invest- Source: UNEP, Blue Economy: Sharing Success Stories to In- spire Change (Nairobi: United Nations Environmental Pro- Analysis Blue Economy Roadmap ments, including risk funding for innovative mari- gramme, 2015). time technologies. 28 Bulgaria: Towards Blue Economy Development Chapter 2 Bulgaria: Toward Blue Economy Development Chapter 2 29 “Blue governance” is a recently emerging concept The transition to a blue economy in Bulgaria, with Figure 4. The Blue Economy and Natural Capital defined as the formal and informal processes of an emphasis on strengthened governance, has the collective decision making, planning, deliberating, potential to bring an array of benefits related to and capacity building by government, market, and the enhanced protection of coastal and nearshore civil society actors connected to marine and coast- resources and increased resource use efficiency. al environments. Blue governance integrates blue It could unlock multiple opportunities to plan and economy with governances principles and encom- manage marine-related activities in a more coor- passes structures and processes that are designed dinated manner, raising the efficacy of investment to ensure accountability, transparency, responsive- initiatives and improving the livelihoods of local ness, rule of law, stability, equity and inclusiveness, communities. empowerment, and broad-based participation. Box 3. China’s Blue Economy Experience 2.2. The Value of Natural Capital is Central to the Blue Economy China formulated the Principles of Developing Ma- rine and Fishing Industries based on the blue econ- The blue economy concept is shifting the devel- omy concept as an input to national economic de- opment paradigm from a sole focus on economic velopment and environmental protection policies. growth to one that includes sustainability aspects The highlights of China’s blue economy include: and green economy principles. By doing so it could developing marine fisheries, marine transportation, potentially drive a transformative change and ad- tourism, energy, and material production industries; Source: P. Patil and others, “Toward a Blue Economy: a Promise for Sustainable Growth in the Caribbean; an Overview” (Washington, further improving and coordinating marine and land dress the underestimated value of natural capital.33 DC: World Bank, 2016). economy national policies; developing blue economy The traditional method of using GDP to measure demonstration zones; strengthening the connections outputs in the ocean economy does not account between trade and infrastructure; and promoting the for the changes to natural stocks and future ben- In the face of increasing competition for valuable 2.3. Blue Economy for the Black Sea: coastal and marine resources, the blue economy development of technology and human resources. efit streams that they provide (World Bank and The Common Maritime Agenda aims to overcome the challenge of using them as China has long followed the blue economy growth United Nations 2017). Conversely, economic valua- a “free good” and seas and oceans as a cost-free The CMA34 sets the main objectives for sustainable idea and has instituted a Five-Year Development tion methods that measure the value of blue assets Plan for National Marine Economy that monitors repository space. This in turn means (a) shifting blue economy development in the Black Sea. It re- overcome this limitation by measuring the contri- the progress of various marine sectors. China’s State current economic planning trends that negatively flects the priorities of the coastal countries (together butions of nonmarket goods and services provided Council has published a White Paper on the Chinese affect the quality of coastal and marine resources with the Republic of Moldova) in core areas aligned Maritime Economy. The country emphasizes the sci- by the natural systems (see figure 4). and livelihoods, (b) investing in the human capital with the blue economy, such as improved ecosys- entific innovation of the marine industry and has es- required to harness employment and development Valuation of natural capital and ecosystem services tem services and management, blue research and tablished six national marine economic innovation is a central policy instrument in the blue economy benefits, (c) investing in innovative blue economy innovation to increase resilience, investments to and demonstration development areas and seven industrial innovation bases for the rejuvenation of concept. The ecosystem approach communicates sectors, and (d) adequately valuing the marine re- foster decarbonization, capacity building, and job the marine industry, science and technology, and the importance of marine ecosystem values, re- sources and ecosystem services provided by the creation. The CMA and its scientific pillar, the SRIA, strategic cooperation among marine parks. Sever- duces the impacts on those values, and creates a oceans to break the silos of isolated sectoral man- support regional and national initiatives to enhance al successful blue economy projects have achieved agement and investments. the uptake of the blue economy and to stimulate context for promoting market-based instruments, noteworthy results: the Shandong Peninsula Blue such as taxes, fees, and subsidies. These could com- the development of new regional value chains and Economic Zone Development Plan, approved by the State Council, established the Shandong Blue plement public policies and regulations, help im- untapped investment opportunities. Economic Zone as a modern marine industrial clus- prove marine resource governance, and enhance The World Bank, in cooperation with the EC, has ter with strong international competitiveness and a the effectiveness of public investments in the ma- world-leading education center of marine science strived to develop regional programs in support of rine space. Natural capital valuation can also inform with a demonstration zone for marine ecology and the development of integrated, sustainable, and policy decisions toward the sustainable growth of the terrestrial environment. Scientific innovation and healthy marine and coastal resources. In response achievements in marine science research and edu- marine-based industries by considering all costs to the ambitious political commitments under the cation are incubated in the “China Qingdao Blue Sili- and benefits, both internal and external. CMA, the World Bank has launched the preparation con Valley,” which aims to improve China’s utilization of the Blueing the Black Sea Program (BBSEA). of marine resources and contribution to global ma- rine science and research. __________________________ Source: L. Wenhai and others, “Successful Blue Economy __________________________  onfinancial, nonproducing assets make up natural capital. It is the 33 N Examples with Emphasis on International Perspectives,” extension of the economic notion of (produced) capital to the natural  C, “Black Sea Ministers Endorse Common Maritime Agenda,” May 34 E Frontiers in Marine Science 6 (2019). environment, that is, the “stock” of natural (eco-)systems that yields a Dunes north of Krapets 21, 2019, https://ec.europa.eu/maritimeaffairs/press/black-sea-minis- flow of valuable (ecosystem) goods or services into the future. ters-endorse-common-maritime-agenda_en. 30 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 31 Figure 5. BBSEA Components INVESTMENT FINANCE ANALYTICAL PLATFORM (IBRD and Private sector) Dialogue, Pillar 2 Pillar 3 Pillar 1 Analytical Work TA& Convening Coordination Connect the Increase Save the Sea (ASA) Services & Regional region prosperity Planning PARTNERSHIPS CMA Spatial, Tourism, Countries Erosion, Circular Planning, Innovation, EU Economy, BSEC Energy, Health, Fisheries, Hazard, Transport, Culture, Nutrients Water, ITC Education UNDP & FAO BSC PROBLUE GEF Source: World Bank BBSEA team (2020). The BBSEA initiative is being developed as a pro- of Black Sea maritime resources by connecting key gram of activities to assist the Black Sea countries regional and national authorities and facilitating in building a knowledge platform for mobilizing in- knowledge sharing on common issues. The BBSEA vestments and technical assistance. The program is program could include an investment and an ana- being prepared to strengthen the analytical and in- lytical component (see figure 5 above). stitutional framework for environmental protection Chapter 3. Bulgaria’s Coastal and Marine Economy View from Kamen Briag 32 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 33 3.1. Economic Geography of gas are the third and fourth largest urban centers coastal strip of 4 km238. The marine space belonging contribute to “good environmental status” (GES) in in Bulgaria, with important robust industries and to Kaliakra, Emine and Ropotamo protected areas the EU (see below). The modalities of the Natura 2000 Coastal and Marine Space transport and tourism infrastructure. Both cities comprises 6.85 percent of the total area and is network should be duly taken into consideration The coastal territory of Bulgaria is a solid growth are established education and university centers. under the UN Habitats Directive protective regime. when marine spatial uses and designations of sea center with a growing population and a vibrant Administratively, there are three major districts – The Bulgarian Natura 2000 network, fully or partly areas are planned under the EU MSP Directive. economy. The coastline comprises 14 municipalities Dobrich, Varna, and Burgas – that border on the covering marine parts, consists of 31 zones. Some covering 5,770 square kilometers (5.2 percent of the east of the Black Sea, encompassing a total area of of these zones are primarily landwards, located country’s territory) and is home to 726,745 people35 16,888 square kilometers and accommodating a to- within a narrow strip, up to 1 nautical mile offshore 3.2. Threats to the Black Sea tal number of 1,055,414 residents in 2018.36 (see figure 7). Fourteen zones are protected under (10.4 percent of the population). Varna and Bur- Marine Environment the Birds Directive, seventeen zones – under the Figure 6. Bulgarian Black Sea Coastal and Maritime Area Habitats Directive [1] and two zones – under both Environmental threats and impacts that can alter Directives. natural marine conditions and cause systemic damage to the coastal economy, communities, and the natural capital on which they depend have Figure 7. Marine Parts of the Natura 2000 a variety of causes and originate from different Network in Bulgaria sectors of the economy. Marine resources in the Black Sea have declined due to overfishing, the unplanned development of coastal zones, and intense maritime traffic. The Black Sea is the largest anoxic water basin in the world, with unique hydrological characteristics. These distinctive natural conditions, with nearly 90 N percent of its deeper waters anoxic,39 determine the health of the sea and marine biodiversity. There is limited interaction between the oxygen-rich surface waters and the Black Sea’s deeper areas. Research on the Black Sea ecosystem40 indicates significant changes during the past 50 years and heightened Legend vulnerability to anthropogenic effects. Source: Center of Coastal and Marine Studies (2020) Natura 2000 Sites 3.2.1. Pollution SITE TYPES In accordance with the 1982 United Nations commercial and endangered species. The increasing NATURA 2000 Spa Convention on the Law of the Sea (UNCLOS),37 pressures and impacts of human activities on marine NATURA 2000 SCi Land-based pollution is a major threat that accounts Bulgaria established an exclusive economic zone ecosystems have caused habitat degradation NATURA 2000 Spa  for more than 70 percent of all marine pollution. and SCi (EEZ) extending 200 nautical miles (370 kilo- and biodiversity loss, seriously undermining their Untreated nutrients entering the sea through rivers meters) off its state shore with a sovereign right to capacity to provide ecological and economic is one of the worst pollutants and causes eutrophica- explore and exploit, conserve, and manage marine benefits. Nonetheless, the coastal region retains Source: Center of Coastal and Marine Studies (2020) tion. Nutrient inflow from the Danube River, mainly mineral and living resources. The Bulgarian Black significant economic potential compared to inland involving nitrates and phosphates, is significant but Sea EEZ covers 25,557 square kilometers (see areas that the blue economy could enhance. The current mapping and evaluation methodology has been stable in recent years (BSC 2008). To com- figure 6 above). used in Bulgaria does not include a full valuation bat the diffuse pollution, Bulgaria has established a There are multiple protected areas which border of and reporting cycle for ecosystem services. system of measures aiming at full implementation Coastal and marine natural capital is an essential the Black sea shore among which Kaliakra strict Expanding the methodological tools for marine of Directive 91/676/EEC concerning the protection economic factor. The coastal and shelf zones are nature reserve, Chengene skele and the Koketrays ecosystem valuation over the marine protected area of waters against pollution caused by nitrates from complex ecosystems of rich natural resources in stand out. By its origin Koketrays is a sand bank, (MPA) networks will enable decision makers to devise agricultural sources. Although significant surface constant interaction with human activities. Diverse located south of cape Emine covering an area of policies and spatial protection measures that will water pollution and substantial levels of eutrophi- marine ecosystems provide vital habitats for many 7,6 km2. Kaliakra Natural Reserve stretches on a __________________________ __________________________ http://eea.government.bg/zpo/bg/result1.js (last accessed 17/02/2021) 38   a depth greater than 150–200 meters, there is a permanent hydrogen sulfide zone devoid of life. 39 At  35 NSI 2018. The major causes of ecosystem change in the Black Sea were reviewed in 2008 for the General Fisheries Commission for the Mediterranean by 40   opulation data in 2018 from the NSI: https://www.nsi.bg/en/content/6704/population-districts-municipalities-place-residence-and-sex. 36 P Caddy, which drafted an internal document. A causal analysis of the factors and drivers causing the decline of fish commercial stocks was devel- United Nations, “United Nations Convention on the Law of the Sea,” with Index and Final Act of the Third United Nations Conference on the Law of 37  oped by the Black Sea Environmental Program – Transboundary Diagnostic Analysis (TDA) in 2007. Recently, a global review of regime shifts in the Sea (New York: United Nations, 1983), https://www.un.org/depts/los/convention_agreements/texts/unclos/unclos_e.pdf. the Black Sea was also provided by Daskalov (2012).A significant number of projects are currently underway. 34 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 35 ters, although elevated levels of these substances catch volume has recently increased. Other factors can be found around industrial centers, large cities, behind the decline of fish stocks are ecosystem and ports (BSC 2008). The worst ecological con- changes due to eutrophication, increasing pop- ditions are the sea waters in the Varna Bay, at the ulations of alien species, and illegal, unreported, mouth of the Kamchia River. A similar, though less and unregulated (IUU) fishing. Illegal fishing in the problematic, situation can be found at the Bay of Black Sea is increasing, affecting marine biodiversi- Burgas. Along the coast, there are 105 industrial ty and the fish industry alike in the entire Black Sea sites in the basin area, 77 of which have been identi- region.45 fied as significant sources of wastewater. The prospects of deep-sea exploration and the ex- Marine litter in the Black Sea originates primarily traction of hydrogen sulfide and gas/oil in the Black from solid waste pollution – various land- and sea- Sea could increase the economic significance of based sources – as a result of human activities. It the region. At the same time, full-scale extraction affects the health of coastal and marine ecosys- of some of these resources will necessitate the use tems, biota, and humans alike and incurs high eco- of complex and possibly environmentally damag- nomic costs (e.g., on tourism, fisheries, and marine ing technologies. Efforts should be made to ensure traffic) for coastal municipalities. A recent study on that the technologies used in large scale explora- beach litter in Bulgaria identified 10 beaches along tion and extraction are environmentally safe. Given the Bulgarian Black Sea coast that were highly pol- the high vulnerability of Black Sea ecosystems, it luted, with indications that plastic waste accounts is important to carefully assess the long-term im- for 84.3 percent of the items found on the beaches pacts of large-scale economic activities that could Marine litter at Nestinarka beach, Tsarevo (Simeonova, Chuturkova, and Yaneva 2017). Domi- potentially affect the marine ecosystem. The high nant in this category were cigarette butts and fil- dependence on primary blue economy sectors to cation have not been detected on the territory of economy sectors depend – from coastal and ma- ters (OSPAR43 code 64), plastic caps/lids of bever- enable their production calls for policies that miti- Bulgaria, the implementation of measures under rine tourism to fisheries and aquaculture. Threats ages (OSPAR code 15), and other plastic packaging gate user conflicts to ensure the protection of valu- the Directive41 provides for the prevention and re- to ecosystem health lead to a decreased quality of (OSPAR code 21). The seasonal fluctuations for most able habitats and landscapes. duction of surface water pollution from agricultur- ecosystem services and subsequently have a nega- marine litter showed the highest quantities during tive effect on blue economy sectors, such as fisher- the summer period (tourists pick) compared to 3.2.3. Climate change al sources. The Black Sea Coast Development Act42 ies, aquaculture, and recreational tourism. the rest of the year. The total number and weight establishes two kinds of protection zones: up to 2.1 The Black Sea area’s vulnerability will be exacerbat- of waste for 2019 were less compared to previous kilometers from the sea line and alongside the en- ed by the impacts of climate change. If the Black A significant part of Bulgaria’s population lives in years (2017 and 2018). This is the result of a number tire coastal stretch, where the use of unregistered Sea becomes more polluted, it will possibly be- areas without adequate wastewater treatment of public awareness-raising activities on the nega- mineral fertilizers and pesticides is banned. come more prone to an increase in water tempera- infrastructure. In recent years, there has been a tive effects of litter on the environment and human more positive trend, as the percentage of the pop- ture, thus multiplying certain developments, such The effects of eutrophication include changes to health through coordinated campaigns to clean up ulation connected to wastewater treatment plants as the alteration of fish habitats and algae bloom the structure and functioning of the entire marine the beaches and increase civil culture with regard (WWTPs) increased from 47.8 percent in 2010 to 63.9 outbreaks, and threatening the region’s health and ecosystem, resulting in instability and serious envi- to the protection of the marine environment. percent in 2018. At the beginning of 2017, almost all economy. It is estimated that the average rate of ronmental problems (EEA 2019b). Excess nutrients coastal settlements had WWTPs except the south- sea level rise along the Bulgarian Black Sea coast originate from fertilizers, fossil fuel burning, and 3.2.2. Depleting marine resources ernmost part of the Bulgarian coastal zone. None- would vary from 1.5 to 3 millimeters per year (Pash- wastewater from humans, livestock, aquaculture, ova and Yovev 2010). The frequency and intensity of theless, the pace of national investments in waste- Fish stock in the Black Sea has deteriorated dra- and industry, all of which lead to air, water, soil, and extreme weather events occurring along the coast, water treatment facilities is rather slow. matically over the past three decades. Fish types marine pollution. Nutrient enrichment by nitrogen, such as winter storms with severe north and north- of high commercial value declined from 26 to phosphorus, and sometimes organic matter can Oil pollution in the Black Sea along the main ship- east winds, could increase. Such storms could have six species. After a near collapse of fish stock in result in a series of undesirable effects. Wastewa- ping routes and in the coastal areas around river devastating effects on the natural environment and 1990 due to significant anchovy fishing by Turkey, ter is a major source of pollution that has a direct mouths, sewage outfalls, industrial installations, coastal infrastructure, both on and offshore, but accounting for almost 80 percent of the total impact on the biological diversity of aquatic ecosys- and ports is an ongoing concern. There is no evi- could be especially dramatic when combined with catch,44 the stock has partially recovered, and the tems, disrupting the fundamental integrity of the dence of significant heavy metals, pesticides, or life support systems on which a wide range of blue other persistent organic pollutants in surface wa- __________________________ __________________________  he Convention for the Protection of the Marine Environment of the North-East Atlantic (OSPAR). 43 T See https://www.moew.government.bg/static/media/ups/tiny/Vodi/Dokladi%20kam%20EK/UWWTD/report%202018/UWWTDArt17-2018-template- 41  G. Daskalov, C. Osio, and A. Charef, eds., “Assessment of Black Sea Stocks,” JRC Scientific and Policy Report STECF-12-15 (Ispra, Italy: Scientific, 44  f-rev2-fin-za%20website.xls (in Bulgarian). Technical and Economic Committee for Fisheries, 2012).  lack Sea Coast Development Act. 2008. Promulgated, State Gazette No. 48/15.06.2007. Last amended SG No 21/13.03.2020. 42 B  AO, “Black Sea Fish, Indications on IUU Fishing in the Black Sea” (Rome: Food and Agriculture Organization, 2013). 45 F 36 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 37 additional events like surge waves or heavy rainfalls. Management Plan for the Black Sea basin47 prepared  lue energy: offshore wind energy potential ■ B subsector and is still the fastest growing part of the There are already examples of such events along in 2018 and address all aspects of flood risk manage- local economy. It contributed 66 percent to blue  lue bio-economy and biotechnology: algae, ■ B the Bulgarian coast: the storm in February 1979 that ment, taking into account the basin’s specific char- economy jobs (48,300 persons employed) and 55 harvesting and new uses of aquatic biomass, was accompanied by an extreme sea level rise and acteristics. There are a total of 11 areas with signifi- percent of the GVA (or €399 million) in 2017 (EC blue biomass production the storm in June 2006 that brought heavy rains. cant potential risk of sea floods, which include high 2019a). According to the National Statistical Institute and medium risk locations within the Black Sea Ba-  oastal protection: traditional, hard, and soft ap- ■ C (NSI)49 in 2018, more than 12 million international The value of coastal natural assets can be under- proaches applied in Bulgaria and perspectives sin Directorate, with a total length of approximately visitors visited Bulgaria, of which 6 million came mined by coastal erosion that is exacerbated by for nature-based solutions 267 kilometers. In the different flood scenarios, the for holiday stays and recreational tourism. In 2018, weather-related hazards. Large beach segments on most at risk would be the critical infrastructure of  nvironmental monitoring and technology, in- ■ E international tourist receipts reached more than €4 the Bulgarian coast have experienced a continuous the Burgas district, and the municipalities of Nesse- cluding research and innovation billion. During 2012–18 there was a steady increase reduction in area (Dachev, Trifonova, and Stanche- bar and Burgas are the most vulnerable in terms of in the number of tourists, with over 1 million in 2018, va 2005; Stancheva 2013). Based on data from more Advancing data development beyond established the potential number of people affected. more than half of them from EU member states. than 30 years of investigations on beach dynamics, sectors in Bulgaria would make it possible to as- it was found that roughly 48 percent of sand beach- sess the market opportunities and niches for more The tourism industry in Bulgaria is heavily concen- emerging and innovative blue sectors, such as ma- es in Bulgaria are affected by erosion. The highest 3.3. Pillars of the Blue Economy trated in the Black Sea coast. Almost two-thirds of cliff erosion rates were observed in the north, where rine renewable energy (i.e., floating offshore wind, tourist accommodation infrastructure and tourists the coast is formed of loess sedimentary deposits The EU determines the established blue economy wave and tidal energy, floating solar energy, off- are in the coastal areas (Stanchev, Stancheva, and between Capes Sivriburun and Shabla at a rate of sectors listed below that depend on coastal and shore hydrogen, desalination, and submarine ca- Young 2015). Compared to other segments of the 0.30 meters per year, and the areas of clay forma- marine resources (EC 2019a). They are considered bles), that are not discussed in this note. Identifying sector, coastal tourism posted the highest growth tions on the south coast between the town of Po- in this Policy Note to be relevant for the Bulgarian opportunities for accessing carbon-neutral solu- during 2012–18 (see figure 8). The coastal regions of morie and Cape Lahna at 0.22 meters per year. In maritime economy and include: coastal and marine tions based on marine resources will be important Dobrich, Varna, and Burgas posted faster tourism the south, the rates are much lower, at around 0.01 tourism, marine living resources, maritime transport, for all sectors of the Bulgarian economy. growth relative to inland regions. In 2018, the rev- meters per year, where volcanic rocks are less prone port activities, shipbuilding and repair, and marine enue from accommodations in the three coastal to erosion (Peychev and Stancheva 2009). non-living resources. These sectors are the backbone 3.3.1. Coastal and marine tourism regions increased by 79 percent compared to 2012, of the blue economy of Bulgaria, and they depend Assessing weather and flood hazards in coastal areas Tourism is a central pillar of the Bulgarian eco- while the non-coastal regions posed only a 65 per- on the quality of the natural ecosystems. and introducing disaster preparedness measures is a nomy. In 2018, it formed 10.4 percent of GDP cent increase. Much of the revenue is from accom- key factor in protecting economic assets and human  oastal and maritime tourism, including sub- ■ C (€6.46 billion) and provided a total of 346,800 modations in large resorts with national importance, lives in the sustainable blue economy and should be sectors or diverse forms of tourism, such as jobs.48 Coastal tourism is the most significant such as Albena, Golden Sands, and Sunny Beach. part of Bulgaria’s blue economy vison and strategy. beach/bathing tourism; cultural and underwater Bulgaria uses modern geospatial data to construct a cultural heritage (UCH)/adventure tourism; his- Figure 8. Growth of Coastal and Non-Coastal Tourism in Bulgaria (2012–18) sensitivity map of its coastline, which is now showing torical, wellness, and spa tourism; eco- and na- ture-based tourism; cruise and yachting tourism; Evolution of coastal and non-coastal tourism sector in Bulgaria (2012 – 2018), Index: 2012 = 100 vulnerability to coastal erosion/cliff retreat (Stanchev, Young, and Stancheva 2013). Using predictive mod- recreational boating, and so forth eling of coastline sensitivity to coastal erosion, the Accommodation places in coastal regions  xtraction and commercialization of marine ■ E Geological Institute at the Bulgarian Academy of Accommodation places in non-coastal regions living resources: fisheries, aquaculture, and pro- Sciences has mapped coastal erosion and geological Tourists beds in accommodation in coastal regions cessing and distribution risks along the entire coastline. Tourists beds in accommodation in non-coastal regions  aritime transport, ports, shipbuilding, and ■ M Accommodation revenues in coastal regions The National Climate Change Adaptation Strategy46 ship repair, including smart/green shipping and Accommodation revenues in non-coastal regions and Action Plan for the Republic of Bulgaria was ap- the maritime industry proved by the Council of Ministers in 2019. The Strat-  arine extraction of minerals, oil, and gas: ma- ■ M egy will serve as a reference document of adapta- rine non-living resources tion actions and priorities until 2030. In accordance with the requirements of Article 6 of Flood Directive Several emerging and innovative sectors discussed 2007/60/EC and Article 146d of the Water Act of Bul- here bring new opportunities for investment and garia, flood risk maps of risk prone areas have been hold huge potential for the future development of produced. They are included in the first Flood Risk coastal communities. These include: Source: National Statistical Institute of Bulgaria __________________________ __________________________  ocuments are available at: https://www.moew.government.bg/en/climate/international-negotiations-and-adaptation/adaptation/. 46 D World Travel and Tourism Council (WTTC), “Data Gateway, Bulgaria,” 2018. 48  47 Flood Risk Management Plan of the Black Sea Region (2016–2021). National Statistical Institute of Bulgaria, 2018: https://infostat.nsi.bg/. 49  38 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 39 The distribution of tourists is uneven, with large Cultural heritage is part of Bulgarian’s daily life, crowds flocking to the main resorts in the peak sea- culture, and tourism industry. Cultural tourism ac- son. In summer, the coastal population typically in- counts for 11 percent of all tourist products in the creases by 20 percent, and in some coastal munic- country (Bulgaria 2017). Bulgaria ranks third in Eu- ipalities by 320 percent (Stanchev, Stancheva, and rope after Italy and Greece in the number of sig- Young 2015). In 2018, the three sea resorts account- nificant archaeological and cultural sites. Eleven ed for 8.8 percent of all accommodation places in Bulgarian sites are included on the list of UNESCO’s Bulgaria, and the number of tourist beds is much tangible and intangible world cultural and natural larger: 37 percent. The revenues from these three heritage. This ranks Bulgaria 21st in the world in resorts alone accounted for almost 43 percent of terms of cultural resources. The Black Sea coast is all tourist revenues in Bulgaria for 2018. The exist- rich with underwater and coastal archaeological ing facilities and infrastructure in the coastal mu- sites from different historical periods: prehistory, nicipalities have limited treatment capacity, raising antiquity (ancient Greek, Hellenistic, Roman), and concerns of the potential impacts on coastal eco- mediaeval (early Byzantium, Bulgarian). For exam- systems and natural resources. ple, the HERAS project52 promoted underwater her- itage diving adventure tourism in the West Black Coastal beach tourism is driving the vast majority Sea cross-border area of Bulgaria and Romania. The of visits. However, it remains limited to the summer project produced an Underwater Heritage Tourism season. Traditional coastal tourism activities are Management Plan, aiming to support the develop- taking more diverse forms, including nature-based ment and promotion of integrated tourism prod- and eco-tourism, cultural tourism, health and well- ucts between borders while supporting the preser- ness, and wildlife viewing in some areas, aiming to vation of coastal and MPAs. extend the tourist season. With its great diversity the coastal and underwater Obzor South beach The Bulgarian coast is endowed with pristine natu- cultural wealth will remain an indispensable part ral landscapes. Coastal wetlands and lagoons, sand of the economic potential of Bulgaria’s blue space. dunes and rocky cliffs, and underwater caves attract affecting the maritime industry and yachting; defi- accommodate large cruise ships, but voyages Valuation of coastal and marine natural capital link- a special segment of visitors for scuba diving, bird ciencies in tourist security and safety due to a lack are infrequent even during the summer season ing it with cultural heritage and the potential of cre- watching, cycling, running, or just walking. Even of modern satellite service units in ports; the ab- (EUNETMAR 2014). Expansion of this segment of ative industries will add cumulative economic value though the last three decades witnessed a major sence of an advertising strategy and national adver- blue tourism comes with serious challenges. Ports through jobs, innovation, and more value of blue urbanization of a significant part of the Bulgari- tising for yacht tourism; and insufficiently qualified in Bulgaria cannot receive large cruise ships, and tourism. Cultural heritage has also an important role an coast, there are still large areas that retain their marina staff, among other concerns (Bulgaria 2017). deepening the receiving facilities requires signif- in the national maritime planning process. ‘Good natural value. Bulgaria has a network of coastal and In recent years, investments in the yachting sector icant investment. At the same time, cruise ships practice’ MSP identifies cohesive zones of archae- MPAs comprising 31 Natura 2000 zones covering have increased due to the construction of marinas are a large source of pollution both for the coast ological repositories and spaces for archaeological 41,6 km2.50 Most of the coastal areas are under pro- for small and medium-sized yachts. The number and the waters. park(s) in areas of more intense development to pro- tected regimes pursuant to the Protected Areas Act51 of yachts and motorboats in Bulgaria, however, tect the existing cultural heritage objects. There are favorable conditions for wellness and (1998) of Bulgaria. Nature parks and reserves play an remains low (around 1,000), and only 14 marinas spa tourism along the coast. Mild summers and important role in local economies by creating eco- Yachting and boating tourism are developing at a are licensed. Despite the increase in investment, rich natural coastal resources offer a competitive nomic development and employment opportuni- slower pace, with peaks in the summer. Compared this “niche” segment is growing only modestly, as advantage that could extend the active summer ties. The prospects for expanding coastal nature and to yachting tourism in the Baltic and Mediterranean the number of end users is limited. Total employ- beach season. In recent years, health tourism in eco-tourism would grow, since further urbanization Seas, Bulgaria’s yachting segment is underdevel- ment in this activity is estimated at 800 people Bulgaria has combined traditional spa therapeu- around the world will increase the demand for these oped. Despite the fact that the basic prerequisites (EUNETMAR 2014). tic activities, such as balneotherapy, rehabilitation, activities. Blue economy tools could be employed to for development are available – port infrastruc- Cruise tourism is less developed and of lower so- and prevention, with modern wellness and oth- assess the natural capital assets and their capacity ture, piers, marinas, and hydrotechnical facilities – cioeconomic value to the Bulgarian economy. Its er spa programs. Bulgaria is second in Europe af- for service provision as drivers of local development boating and yachting encounter many problems, contribution to the tourism sector’s GVA was 0.23 ter Iceland and ahead of many other countries where nature-based tourism businesses operate. including shortcomings in the legal framework percent (2014) and it was only 2.2 percent of the in its proven traditions in balneology in terms of sector’s employment (EUNETMAR 2014). Varna existing, developed, and registered (certified) miner- __________________________ and Burgas are the main centers of cruise tourism, al water springs. However, less than 0.4 percent of 50 https://www.moew.government.bg/bg/priroda/natura-2000/registri-za-zastiteni-zoni/prieti-s-reshenie-na-ministerski-suvet/ Protected Areas Act. 1998. Promulgated in State Gazette No 133/11.11.1998. Last amended by State Gazette No. 1/03.01.2019. 51  although infrastructure is insufficiently developed. mineral water deposits are currently used for balneo- 52  GeoEcoMar, “HERAS: Submarine Archaeological Heritage of the Western Black Sea Shelf,” Romania-Bulgaria Cross Border Cooperation Pro- The port of Nessebar has the facilities needed to therapy, indicating a significant untapped potential. gramme (Bucharest: National Institute of Marine Geology and Geo-ecology, 2015. 40 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 41 Coastal and maritime tourism in Bulgaria has sectors are using common resources, the potential been severely affected by the impacts of COVID-19. of one sector could be impacted by the synergies Although the full-scale impacts of the pandem- and conflicts with other sectors. The blue econo- ic are still to be assessed and quantified, it is clear my potential is based not only on economic capital that Bulgaria is facing the same consequences as (finance and investments) but also on social capi- other EU countries. The Organization for Econom- tal (expertise, cooperation, networks, trust, institu- ic Co-operation and Development (OECD}53 points tions) and natural capital (sustainably managed to an estimated decline of 60 percent in interna- ecosystem services), all of which have to be factored tional tourists in 2020. This number could rise to into development planning. 80 percent if recovery is delayed until December. According to Bulgaria’s NSI, in the second quarter Sector synergies and resource of 2020 the revenue from tourism posted a slump user competition of 31 percent.54 International tourism in the EU in specific regions is expected to rebound, but pub- Blue economy sectors are traditionally strong lic health concerns will remain paramount in the where challenges from competing uses are being recovery from the economic downturn caused by addressed through sector synergies. The natural the pandemic. Therefore, the full-scale re-opening environment plays a major role in tourism. Un- of the tourism economy in Bulgaria will be a com- derstanding the value of natural coastal and ma- plex and challenging task. The Ministry of Tourism rine systems can enable smarter investments in has implemented mitigation measures to support management and conservation that both support tourism businesses during the crisis, including tour tourism businesses and help sustain coastal econ- operator vouchers to customers for canceled trips; omies. Nevertheless, transition to a blue econo- extended deadlines for tourism businesses on tax my could lead to conflicts over the use of coastal obligations; and guidelines and recommendations and marine space. For instance, conflicts between for pandemic-safe tourism packages. Yet, planning recreational boating and other uses are linked for future coastal and marine sector growth needs to overcrowding, space restrictions, and safety to consider the ongoing uncertainties, which will hazards. Boating may compete with other recre- mean balancing short- and long-term concerns ational activities (e.g., swimming) or with different and leveraging policies to achieve a resilient and types of boating (e.g., sailboats, motorized vessels, sustainable recovery. personal watercrafts, etc.). However, codes of con- ducts, proper planning, and good communication Coastal and maritime tourism heavily depends on between users can minimize these conflicts. Other the quality of the environment as well as on miti- potential conflicts are related to areas where boat- Byala marina gating the potential conflicts of competing uses of ing may not occur due to the presence of other the maritime space. Any maritime or land-based blue sector infrastructure (e.g., aquaculture farms, activity that damages the environment can nega- oil and gas platforms). Synergies between these 3.3.2. Fisheries and aquaculture Due to many years of unsustainable fishing practic- tively affect tourism. Coastal areas may also be di- various uses may emerge through alternative ac- es in the Black Sea, commercial fish stock and other rectly or indirectly affected by climate change–re- Bulgaria’s fisheries sector consists of capture tivities, including eco-tourism and MPAs. Syner- marine living resources have declined and reached lated impacts, such as flooding, erosion, saltwater fisheries, aquaculture, and fish processing. The gies between coastal and marine tourism and oth- biologically unsustainable levels. Over 99 percent of intrusion, increases in air and seawater tempera- total sector value contribution to the economy is er blue economy sectors, such as the extraction the capture fishery production in Bulgaria comes tures, and droughts. €75 million, or 0.17 percent of the national GVA. of living and non-living marine resources, could from the Black Sea.55 The majority of capture fish- The fisheries sector employed 8,500 people, or The economic potential of Bulgaria’s blue sectors be reinforced by a multisector approach to spatial eries are carried out in territorial waters (within the 0.28 percent of the total national workforce in 2017 could be assessed further in relation to their socie- planning based on an assessment of the compet- 12 nautical mile area). Consequently, catch from (see figure 9). The biggest share is that of the fish tal and environmental impacts, and in comparison itiveness of traditional sectors or the discovery of commercial fisheries in marine waters has declined processing and distribution industry, which directly to other blue and non-blue sectors. Where these new niche markets. significantly (see figure 10). Capture fisheries as an employs 5,900 people and contributes around €61 established subsector contributed about €3 mil- million to the economy (EC 2019a). lion to the national GVA in 2017 and employed 1,500 __________________________ people (EC 2019a).  ECD, “Tourism Policy Responses to Coronavirus (Covid-19)” (PARIS: OECD, 2020), 53 O __________________________ https://read.oecd-ilibrary.org/view/?ref=124_124984-7uf8nm95se&title=Covid-19_Tourism_Policy_Responses.  ata from Bulgaria’s NSI for the second quarter of 2020 on total expenditure on tourist trips. 54 D See https://ec.europa.eu/eurostat/databrowser/view/tag00116/default/table?lang=en. 55  42 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 43 Figure 9. Economic Contribution of the Fisheries Sector The aquaculture sector in Bulgaria developed len 2018). In 2019, the total volume of aquaculture steadily during the 2008–12 period followed by a production (see figure 11) was 16,502 tons, with 18 Contribution of marine living resources to Bulgarian Economy rapid increase in the volume of marine aquaculture percent of the total volume (2,928 tons) black mus- (GVA & Persons employed) sales. In 2016, total sales by weight and value dou- sels.58 Recent outcomes highlight the positive gains 75 75 67 bled compared to 2008 (Nielsen, Carvalho, and Guil- that could be made from aquaculture. 61 62 60 54 47 49 Figure 11. Main Aquaculture Species in Bulgaria (2019) by volume 7,7 8 7,8 7,7 7,9 7,8 8,1 8,6 8,5 18% 2009 2010 2011 2012 2013 2014 2015 2016 2017 29% Name Total weight (tons) Carp Carp 4 848 t GVA (EUR million) Persons employed (thousand) 13% Rainbow trout Source: EC (2019a). 2019 Rainbow trout 4 156 t Colorful silver carp Colorful silver carp 2 488 t Other Freshwater The main commercial species harvested in the Black The majority of the Bulgarian fishing fleet is made Other Freshwater 2 080 t Black mussel Sea are: (i) pelagic species: European sprat, Mediter- up of small fishing vessels with lengths of up to 12 15% Black mussel 2 929 t 25% ranean horse mackerel, flathead grey mullet, bonito, meters. In 2019, the total number of registered fish- and bluefish; and (ii) demersal species: red mullet, ing vessels was 1,843.56 The number of fishing ves- piked dogfish, thornback ray, turbot, gobies, rapana sels that are larger than 12 meters in 2019 was 101, Source: Executive Agency of Fishery and Aquaculture of Republic of Bulgaria snail, and white sand clam. Bulgaria has applied total or less than 5.5 percent. There are 74 landing sites allowable catch (TAC) and quota regimes since 2007 along the coast for commercial fisheries, the most Aquaculture, as one of the pillars of the EU’s blue tion of consumers to eat healthy food. The strategy only for turbot and European sprat. In recent years, important of which are Varna, Kavarna, Balchik, economy strategy, has been witnessing growing could thus be to expand the aquaculture industry to catch of rapana snail have overtaken those for sprat, Byala, Burgas, Nesebar, Sozopol, Tsarevo, Pomorie, meet future demand for fish produce and to contrib- interest in the Bulgarian marine space. The Nation- due to high export demands. and Shabla. al Strategic Plan for Aquaculture (2014–2020) is in ute to blue economy diversification. Understanding line with the provisions of Article 34 of Regulation the needs of the different fish and seafood market Figure 10. Fish Production by Inland and Marine Waters and Aquaculture (tones) (EU) № 1380/2013 on the Common Fisheries Policy targets in synergy with other blue economy sector Capture production by inland and marine waters Aquaculture production by culture environment and Regulation (EU) № 508/2014 of May 15, 2014, of markets would help rationalize the planning of sec- for the Republic of Bulgaria (tonnes) the Republic of Bulgaria (tonnes) the European Parliament and of the Council for the tor growth and identify potential new opportunities. Source: FAO FishStat Source: FAO FishStat European Maritime and Fisheries Fund. It covers all activities related to the production of fish and oth- Sector synergies and resource user er marine living organisms and is complemented competition by measures to diversify the activities of producers There are important synergies between coastal tour- and opportunities for sales. Future authorization of ism and fisheries (ICF Consulting 2017). MPA man- aquaculture farms needs to pay attention to spe- agers, conservation researchers, and fishermen cies used, to prevent entry of invasive alien species. acknowledge the benefits of recreational fisheries in professionally managed MPAs. Capture fisheries Across global and European markets, consumption may benefit from positive spillover effects generated Marine Inland Freshwater Marine of fish and seafood is on the rise. In 2016, it was al- by the MPAs where fisheries resources are protected most 13 million tons in Europe.59 Bulgaria’s seafood Source: FAO Yearbook. Fishery and Aquaculture Statistics 2018/FAO annuaire 2018. Rome https://doi.org/10.4060/cb1213t effectively (EC 2019a). Outside MPAs, local communi- consumption of 7.3 kilograms per person per year60 ties may also benefit from spillover effects that could is rather low compared to the EU average of 24.4 ki- translate into opportunities for artisanal fishing. Aquaculture farms make up 13 percent of sector registered in Bulgarian Black Sea waters, most of lograms (2019). Fisheries and aquaculture products production with a total value contribution of €13 which are small and medium-sized enterprises provide important sources of protein and are crucial The synergies between fishing and aquaculture million to the GVA (EC 2019a). Some 1,100 people (SMEs) or micro-enterprises. There are 24 farms for components of a healthy diet. In the long run, fish are well recognized. For example, shellfish farms are employed in the aquaculture subsector.57 As of black mussels, one fish cage farm, and one farm for consumption is likely to increase, given the motiva- provide habitats and feed for fish. Mussel farms March 2020, a total of 26 aquaculture farms were rainbow trout. __________________________ __________________________ See http://iara.government.bg/download.php?id=369 (in Bulgarian). 58   Fishing Fleet, Number of Vessels,” https://ec.europa.eu/eurostat/databrowser/view/tag00116/default/table?lang=en. 56 “ CBI, “What is the Demand for Fish and Seafood on the European Market?” (The Hague: Centre for the Promotion of Imports from Developing 59  57  “Consumption,” https://ec.europa.eu/fisheries/6-consumption_en; Countries), https://www.cbi.eu/market-information/fish-seafood/what-demand. and https://www.nsi.bg/sites/default/files/files/data/timeseries/HH_3.1.3.xls (in Bulgarian). “Consumption,” https://ec.europa.eu/fisheries/6-consumption_en; and https://www.nsi.bg/sites/default/files/files/data/timeseries/HH_3.1.3.xls (in Bulgarian). 60  44 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 45 help to decrease and mitigate nutrient pollution, ration in 2005, are estimated at approximately 200 Figure 12. Offshore Blocks for Exploration and Extraction of Oil and Gas reduce local climate change impacts (e.g., carbon million barrels (EUNETMAR 2014). Currently, there is sequestration61), support fish stocks, and so on. Al- only one company that extracts offshore gas, Mel- though not popular in Bulgaria, recreational fishing rose Resources Plc, but more players are expected N tourism is another example of a potential synergy in the coming years. to explore between fishing and tourism. The extraction of non-living resources contributed Synergies with other uses may also be developed roughly €83 million to the GVA in 2017, which is 11.3 for shared infrastructure between recreational fish- percent of the national GVA. The sector employed eries and UCH. Synergies also exist between coast- some 4,200 persons, or 5.8 percent of the total al tourism and offshore windfarms (e.g., multi-use blue economy workforce (EUNETMAR 2014). Four platforms). Fisheries are part of the history of many offshore natural gas fields are under exploitation coastal towns in Bulgaria and have contributed to in the Bulgarian shelf of the Black Sea. The Galata the development of local identities and culture. Tra- Platform, located on the continental shelf approx- ditional fishing communities represent attractive imately 25 kilometers southeast of Varna, and its destinations for tourism that may support the local associated infrastructure (pipelines) is the only pro- community by: i) increasing the demand for local duction facility located in the Bulgarian part of the fish consumption; ii) participating in events pro- Black Sea. This field production capacity meets 16 moting local traditions (e.g., the mussel festival in percent of domestic gas demand. Offshore oil and the town of Kavarna on the North Bulgarian coast); gas exploration in the deep Black Sea continues. A Source: Ministry of Energy of Republic of Bulgaria and iii) taking part in activities such as recreational “do-no-harm” sector growth could be introduced fishing. through the installation of new offshore infrastruc- ture using high-efficiency technologies. Prospec- Traditional sea salt production in the coastal la- tential conflict with or impact on other maritime Commercial fishing is a classic example of compe- goons and lakes is based on solar evaporation of sectors. Namely, conflicts could arise with coastal/ tive offshore deep sea exploration has been imple- tition over marine resources with other maritime seawater. The lagoons of Pomoriysko and Atanaso- maritime tourism, fishing, conservation of natural mented at different locations (see figure 12). activities. This is particularly true with respect to vsko Lake are in the Burgas area on the south coast habitats, and concerns about environmental qual- coastal tourism, shipping, offshore oil and gas, of Bulgaria where production facilities are located. ity. Therefore, ecosystem risks, user conflict chal- marine mining (aggregates), and offshore wind- The region has the necessary resources to produce lenges, and other spatial aspects of the extraction farms. Aquaculture also may compete for access sea salt, with running capacity currently underuti- of marine minerals will be significant determinants to space with coastal tourism, ports, shipping, lized. There are opportunities in the alternative uses in future considerations for granting extraction offshore oil and gas, marine mining (aggregates), of salt lye for therapeutic, medicinal, and pharma- concessions. and fishing. ceutical purposes. There are functioning health and spa facilities in the area that use salt lye and its de- A holistic approach to priority sector developments rivatives, which indicates untapped opportunities applied in the blue economy could mitigate the 3.3.3. Marine non-living resources: in spa tourism. However, the expansion of salt oper- conflicts over resource use and offer balanced al- extraction of minerals, oil, and gas ations may lead to the seizure of additional coastal ternatives based on the economic, ecosystem, and Bulgaria’s geographical location coincides with societal benefits. MSP could be used as a tool to land. important transport corridors of gas resources re- highlight the intersectoral synergies and evaluate cently discovered in the Black Sea. This is perceived Sector synergies the economic feasibility of the blue sectors. MSP as an advantage for bluing the coastal economy. and resource user competition will determine the risks, impact areas, and miti- Bulgaria’s strategic location in the Black Sea ba- Marine extraction of minerals, oil, and gas often gation measures, the technical safety parameters sin is also a favorable factor for transiting oil from competes for access to marine space with fishing, and exclusion zones, and the infrastructure needs/ the Caspian Sea oil deposits to European refineries. aquaculture, and shipping. In addition, there are supply vessel activity. For example, extraction of oil Although most of Bulgaria’s oil imports go through specific ecological risks from marine extraction ac- and gas may compete for access to space with fish- the Burgas port terminal, in-country oil and gas ex- tivities. Oil spills, although of increasingly low risk, ing, aquaculture and shipping, and pipelines and ploration is mostly in the northern shelf of the Black could have dire ecological consequences on marine cables, as well as environmental protection goals. Sea. Potential reserves of the Shabla block in the Galata gas extraction site and coastal ecosystems, depending on the location At the same time, with the depletion of exploited northern part of the sea, recommended for explo- and intensity of the incident. Particularly sensitive fields and the dismantling of infrastructure, new are the coastal areas and habitats of conservation offshore activities could be developed, for example, __________________________ importance, such as coastal lagoons and wetlands. floating offshore windfarms or geothermal power  ne method for achieving the removal of carbon from the ocean would be through the ancient practice of shellfish farming. The shell of a shellfish 61 O absorbs carbon as it grows. Moreover, the shellfish secretes calcium carbonate (CaCO3) to form its shell. Another challenge to marine extraction is the po- and structures such as multi-use platforms. 46 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 47 3.3.4. Maritime transport, ports, shipbuilding and ship repair generated 3,073 jobs Liquid bulk was the dominant type of cargo in sea transport of regional importance.63 In 2017, the shipbuilding, and ship repair in 2017, of which 1,700 were in maritime transport shipping. Liquid bulk accounted for 39.3 percent of ports employed 4,700 people, which is 35 percent alone. The sector gradually recovered from the eco- the total sea shipping of goods in 2018 (see figure 14). less than in 2009. Ports contributed €68 million to Maritime transport, ports, and shipping are part of a well-established industry in Bulgaria. Altogether, nomic recession in 2009, and in 2017 contributed the national GVA in 2017. Compared to the contri- Bulgaria is part of the European maritime trans- maritime transport/shipping, port activities, and €44.8 million to the national GVA. port infrastructure and international cooperation. bution of €120 million in 2009, the latter indicates National maritime port infrastructure consists of a sizable decline in value added (EC 2019a). Almost 14,628 meters of quay fronts, 69 cargo units, and two-thirds of the 61 functioning seaports are in the Table 2. Evolution of Maritime Transport, Port Activities, and Shipbuilding and Repair (GVA) eight passenger and 11 ship service stations. Ful- municipality of Burgas and one-third in the mu- GVA (EUR million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 ly 1,748 meters of the quay fronts service public nicipalities of Varna and Dobrich. Maritime transport 34 33 35 36 36 25 28 32 32 Figure 14. Gross Weight of Goods Handled in Seaports in Bulgaria, by type of cargo Port activities 120 109 81 72 67 86 102 68 68 Gross weight of goods handled in main ports in Bulgaria, by type of cargo (thousand tonnes) Shipbuilding and repair 63 46 38 48 62 66 52 76 75 16 000 National GVA (EUR billion) 32.400 33.200 36.100 36.300 36.000 37.200 39.100 41.500 44.800 14 000 12 000 Source: EC (2019a). 10 000 8000 The Bulgarian commercial fleet consists of 81 ships in 2017 compared to €34 million in 2009, which is 6000 with a total deadweight (DWT) tonnage of 1,279,000 4.4 percent of the GVA and 2.3 percent of jobs (see 4000 in 2014. About 80 percent (1,026,000) of the DWT is table 2). In 2018, the total amount of goods trans- 2000 registered under foreign flags, and only 20 percent ported through the seaports of Bulgaria was 27.9 (254,000) is under the national flag.62 Maritime’s million tons, an increase of 27 percent compared to 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 transport contribution was €32 million to the GVA 2009 (see figure 13). Liquid bulk goods Large containers Ro-Ro – mobile non-self-propelled units Dry bulk goods Ro-Ro – mobile self-propelled units Other cargo not elsewhere specified Figure 13. Volume of Goods Transported via Bulgarian Ports 2009–18 Source: Eurostat Sea shipping in Bulgaria - gross weight of goods transported to/from main ports (thousand tonnes) 35 000 Table 3. Maritime Ports Infrastructure 30 000 Port type Regional maritime administration Total 25 000 Burgas Varna 20 000 Ports for public transport with national importance 9 4 13 15 000 Ports for public transport with regional importance 7 3 10 10 000 Fishing ports 9 4 13 5000 Yacht ports 7 7 14 0 Ports of special purpose 3 8 11 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Short Sea Shipping Deep Sea Shipping Unknown Total 35 26 61 Source: Eurostat Source: EAMA (Executive Agency for Maritime Administration) __________________________ __________________________ Information found at UNCTADstat, https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx. 62   oTITC, “Integrated Transport Strategy for the Period to 2030” (Sofia: Ministry of Transport, Information Technology and Communications, 2017), 63 M https://www.mtitc.government.bg/sites/default/files/integrated_transport_strategy_2030_bg.pdf (in Bulgarian). https://www.mtitc.government.bg/sites/default/files/integrated_transport_strategy_2030_bg.pdf (in Bulgarian). 48 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 49 Bulgaria has well-developed seaport infrastructure in Varna and Burgas: Bulyard- Shipbuilding Indus- will require investments in advanced technologies The deepening of fairways poses a risk to pipelines for servicing passengers, cargo, and fishing activi- try Ltd, Burgas Shipyards Ltd, Dockyard Delfin Ltd, and skills that reduce energy costs. Other emerg- and cables, and anchoring vessels can also damage ties. Port infrastructure services all types of freight Dockyard Odessos Ltd, and Тerem – Dockyard Fleet ing global challenges that are affecting maritime pipelines. Fishing also entails navigation, though it operations. Seventy-two percent of all cargo loads is arsenal – Varna Ltd. The main activities are dock- transport are growing in importance, such as se- does not follow the navigational patterns of cargo hauled through the Black Sea seaports. Since 2012, yards and services for ship repair and equipment curity, energy sustainability, and affordability. The and passenger transportation.67 Offshore wind tur- cargo exports through the Black Sea ports have maintenance. Shipbuilding and repair have ex- maritime sector also needs to factor in the impact bines may interfere with radar operations. Offshore consistently exceeded imports (see figure 15). The panded since the slumps posted in 2013 and 2014. of the COVID-19 crisis and post-pandemic recovery wind parks may impair sight, especially on smaller largest maritime trade partner with Bulgaria is the In 2017, the shipbuilding and repair sector contrib- challenges to maritime transport in Bulgaria and boats. Shipping impacts air quality, and noise may Russian Federation, followed by Turkey, Romania, uted €75 million to the national GVA and directly the Black Sea region as a whole. have negative effects on marine biodiversity. More and Ukraine. employed roughly 5,400 persons. Overall, the ship- positively, the river-sea connections provide oppor- building and repair sector accounted for 7.4 percent Sector synergies and resource tunities for tourism growth and transport and foster The shipbuilding and repair industry is a dynamic of jobs and 10.2 percent of the GVA in the Bulgarian user competition synergies across sectors (coastal and land tourism, and competitive sector. It includes five shipyards blue economy in 2017 (EC 2019a). The maritime sectors may experience potential short sea shipping and shipbuilding), which allow conflicts and synergies with other users of the mar- for the greater generation of local added value. Figure 15. Loaded and Unloaded Goods in Bulgarian Black Sea Ports itime space. These could be related to environmen- Both the MSFD and BEDF promote MSP as an ef- Loaded and unloaded goods in Bulgarian Black Sea ports (thousand tonnes) tal pressures, as well as to constraints on the de- fective blue economy tool that can stimulate inter- velopment of other maritime sectors (e.g., tourism, sectoral and cross-border cooperation on shipping 35 000 fishing, aquaculture, etc.) due to existing territorial lanes and foster environmental protection. It starts 30 000 and structural limitations. Ports infrastructure has with early identification of the impact of and oppor- 25 000 close spillover effects on, and direct linkages with, tunities for the multiple use of space that precedes other sectors. On the one hand, shipbuilding pro- the participatory identification of synergies and 20 000 vides assets, capacity, technologies, and inputs to planning of sector priorities. To support the shipping 15 000 several blue economy activities, such as fishing, sector, MSP should keep the free space needed for 10 000 transport, marine extraction of minerals, oil, and shipping (rather than limiting shipping activities to gas, and tourism. On the other hand, tourism, for designated areas) now and in the future. Further- 5000 example, creates traffic (leisure boating and sailing), more, MSP should make sure that safety zones to 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 which is a safety issue for other types of navigation. incompatible with shipping activities are sufficient. Total Import Export Source: National Statistical Institute of Republic of Bulgaria Although the transition to a blue economy is a al obligations, and it also has an effect on non-EU window of opportunity for the maritime sector, the- ships calling at EU ports.66 Measures aligned with re are challenges to be addressed. A central one is the blue economy include “green shipping” and the development of “green shipping solutions” in “green ports” solutions that enable waste reduc- line with EU regulations. The EU has transposed tion measures, avoiding spillages and ensuring most International Maritime Organization (IMO) the quality of sea water, energy saving per unit of rules64 into its laws and added further rules to pro- freight transported; usage of gas-powered and ma- mote green shipping and connectivity, ensuring zut-powered vessels; and other “greening” mea- greater respect for international safety and security sures in the port sectors. “Greening” solutions are standards, including with regard to environmental particularly visible in the shipbuilding industry by protection.65 The implementation of certain obliga- introducing new technologies, diversifying prod- tions in the International Convention for the Pre- ucts, reducing resource consumption, and thus vention of Pollution from Ships (MARPOL) within bringing in environmental advantages (OECD Directive (EU) 2019/883 has a direct impact on how 2017). Another challenge is defining common stan- EU member states comply with their internation- dards for the digitalization of shipping. All of this Burgas Harbor __________________________  he global regulatory framework is set up by International Maritime Organization conventions to address technical matters, maritime safety and 64 T security, marine pollution, and liability and compensation issues. __________________________ EU member states are expected to implement Directive 2012/33/EU, which brings European national air pollution laws in line with MARPOL Annex VI. 65  G. Argüello, Marine Pollution, Shipping Waste and International Law (Abingdon, UK: Routledge, 2019). 66   hipping and Ports,” https://www.msp-platform.eu/sites/default/files/sector/pdf/mspforbluegrowth_sectorfiche_shippingports.pdf. 67 S 50 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 51 3.3.5. The potential of emerging potential, including for decarbonization of the Protection of economic assets and human lives in Box 5. Beneficial Impacts of a Multisector blue economy sectors economy, through the avenues offered by the EGD. the most flood- and hazard-prone zone of the coast Approach Lowering the existing barriers to steer up invest- was carried out in the northern part of the Bulgar- When assessing the new, emerging, and innova- The construction of wind power stations in Pomor- ments in offshore wind energy has multiple eco- ian coast between the town of Balchik and Cape tive sectors in the blue economy of Bulgaria, off- skie, Poland occurred alongside the need to monitor nomic benefits to local economies. Offshore wind Galata. This included 111 types of maritime struc- shore wind energy stands out as having the high- bird habitats that might be exposed to the power sta- energy is the most advanced of the emerging and tures within several stretches of a total length of 46 est potential. In view of the prospects for a blue tions’ negative effects. Advancements in technology innovative sectors of the blue economy at the EU have made it possible to collect information on bird kilometers. Another 186 protection measures have bio-economy and biotechnology, nature-based level (Scholaert 2020), and European offshore wind been implemented between the towns of Nessebar migration automatically, thus avoiding the need for solutions for coastal protection are growing in represents about 91 percent of the worldwide ca- workers to visit the power stations. Hence, the long- and Sozopol. However, despite the numerous hard prominence and need further assessment. Mari- pacity deployed. However, there are underlying term monitoring costs have been reduced as well as protection measures applied thus far, erosion and time defense, navy activities, and naval shipbuild- the carbon emissions footprint involved in the moni- landslide problems have not been solved (Stanchev, uncertainties in the Bulgarian regulatory frame- toring of wind farm operations. ing follow the national maritime security doctrine. work that hinder investments and technology re- Young, and Stancheva 2013, 30). Prospects for environmental monitoring and tech- search in offshore wind farms. These uncertainties Source: OECD (2017). Coastal engineering through soft protection and nology development through research and inno- also mean that existing wind farms are struggling nature-based measures is less intrusive and could vation are also improving, given the strong techni- financially, for example, by paying (retroactively Coastal protection provide multiple benefits to habitats and ecosys- cal and scientific potential of Bulgaria’s academic introduced) grid balancing charges of up to €24/ tem services. Coastal armoring often causes adverse and research community. MWh. Coastal protections to address coastal erosion and environmental impacts, including disturbance of landslides along the Bulgarian Black Sea coast The multisector approach promoted by the blue cross- and long-shore sediment transportation and Blue renewable energy sources have been widely used. Along the entire Bulgari- economy can reinforce the dynamics between the associated down drift beach reduction, accelerates an coast, port and coastal protection interventions In Bulgaria, the cumulative wind power capacity emerging sectors. Box 5 provides an example of a bottom erosion, restricts public access to the beach, in 402 segments with a total length of 69.89 kilo- in 2019 was 698.9 MW, covering 4 percent of elec- multisector approach to the construction of wind poses potential risks to bathers, and results in un- meters were mapped through orthophoto imag- tricity demand, though no offshore wind farm has power stations in Poland and the monitoring of en- aesthetic visual effects on coastal and seascapes. ing. Engineered port and protection infrastructure been installed as yet. This indicates an untapped vironmental habitats. Nature-based solutions are an attractive alternative covers 16.2 percent of the coastline. These include to traditional coastal protection in Bulgaria as they 178 different types of groins, 31 dikes, 26 seawalls, reduce wave intensity and protect coasts from ero- 73 embankments/rip-raps, 62 ports, marinas/quay Box 4. Wind Energy along the Bulgarian Coast sion, thereby stabilizing shorelines. In contrast to walls, and navigational channels, and 14 segments concrete-based solutions, nature-based solutions representing artificial beaches (Stanchev, Young, Wind power is not only abundant but also compet- can grow with sea level rise or, if necessary, can be and Stancheva 2013, 1). itive in Bulgaria today. Several onshore wind farms easily adapted (see figure 16). have been put in operation along the Bulgarian coast, mostly located in the district of Dobrich, such as in the area of Kavarna, totaling nearly 400 MW. Figure 16. Conventional versus Ecosystem-Based Coastal Protection They are in Dobrich and Shabla as well. The potential for development of offshore wind parks is the presence of a wide and shallow shelf in front of the Bulgarian Black Sea coast. Nevertheless, it is important that a balance be found between natural resources and the economic benefits of the construction of wind farms, as has occurred, for ex- ample, in the North and Baltic Seas. The wind po- tential is excellent but largely untapped (especially alongside the Bulgarian Black Sea coast), making the country one of the top potential candidates for investments in the sector. Source: MARSPLAN-BS project. Note: Blue arrows indicate the increase/decrease in the storm waves, storm surge, and sea level (as specified); red arrows indicate the need for maintenance and heightening of dikes/embankments/sea walls with sea level rise; and brown arrows indicate land subsidence. Source: S. Temmerman and others, “Ecosystem-Based Coastal Defense in the Face of Global Change,” Nature 504 (2013): 79–83. 52 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 53 Environmental monitoring Furthering a national vision and strategy for main- ramics, and others, as well as the total weight and/or Under the provisions of the WFD (2000/60/EC), streaming the circular economy in government number of all waste collected from a specific place Bulgaria is divided into four river management Bulgaria’s Black Sea Monitoring Program, estab- programs and promoting uptake by economic of macro-waste and micro-waste on the beach/ basins. The Black Sea basin district covers: 1) riv- lished in 1991, aims to provide a time series of ma- sectors will provide a springboard from which to coastlines along the Bulgarian Black Sea coast, float- ers flowing into the Black Sea, including adjacent rine observation data for the western part of the ascertain the effectiveness and efficacy of marine ing on the sea surface, deposited on the seabed, lakes; 2) coastal waters and territorial sea; and 3) Black Sea.68 Monitoring includes key marine phys- protection policies. It will also allow a shift away and in the biota (gastric contents of fish, food tract ground waters. A water quality monitoring system ical, chemical, and biological parameters and is im- from “take-make-dispose” linear models in the val- of marine mammals and birds). The monitoring pro- of the Executive Environment Agency (EEA) in Bul- plemented by the Institute of Oceanology-Bulgar- ue chains to restorative and regenerative ones. Bul- gram will provide information on the driving forces garia supports the Black Sea Basin Directorate by ian Academy of Sciences (IO-BAS). The program is garia can use blue economy policies to overcome of (including tourism, urbanization, ports, shipping, providing the necessary data on the status of wa- part of the Global Ocean Observing System. Since the strict delineation of marine sector value chains commercial and recreational fishing) and quantita- ter bodies, including discharges of wastewater, the 2012, IO-BAS has performed environmental mon- itoring for the implementation of the WFD (Di- and to design and roll out circularity in these sec- tive data on the pressures of waste in the marine en- timely identification of negative trends, forecasts rective 2000/60/EC) and since 2015, for the imple- tors’ business models for the optimal sustainability vironment. It will also examine the impacts of waste of their advancement, prevention and limitation of mentation of the MSFD (Directive 2008/56/EC). The of Black Sea resources. This is an opportunity for (a) accumulation on beaches and on the sea surface harmful effects, and a determination of the exist- operational monitoring covers the coastal waters at aligning national goals on the improved efficiency and bottom, which results in habitat loss, declines in ing measures’ efficiency in achieving environmen- 37 stations in a 1 nautical mile zone, in accordance and environmental performance of raw materials biodiversity, and injured and/or dead marine mam- tal objectives in accordance with the current Black with the Black Sea River Basin Management Plan. with the EU’s Circular Economy Package; (b) iden- mals and birds due to entanglement in nets and in- Sea River Basin Management Plan in Bulgaria The monitoring information is used to assess the tifying measures for “greening” the blue economy gestion of nano plastics. (2016–2022). ecological status of the sea waters under the WFD value chains, and (c) expanding the resource effi- on the basis of physico-chemical quality elements, ciency benefits of the circular economy beyond the boundaries of the blue economy sectors. Box 7. Implementation of the MSFD: Status of the Marine Strategy priority substances and specific pollutants, chlo- rophyll, and phytoplankton. Oceanographic data Implementation of the MSFD is coordinated by the Ministry of Environment and Water and notably by the Black Bulgaria has a strategic framework for achieving Sea Basin Directorate. Development of the Marine Strategy was a two-phase process. The first part was developed (sea water temperature, salinity, oxygen, and fluo- resource-efficient and sustainable waste manage- in 201270 and the second in 2014.71 Based on an Initial Assessment of the state of the marine environment, the rescence) were collected during scientific expedi- ment within the National Waste Management Plan Marine Strategy (https://www.bsbd.org/uk/MarineStrategy.html) defines GES and the environmental targets and tions with RV “Academik.” The monitoring program indicators. The first part, together with the monitoring programs under Article 11, comprise the second part of (NWMP) 2014–2020. However, a national Strategy in Bulgaria covers only five of the 11 descriptors in the Marine Strategy. The Program of Measures (PoMs) under Article 13 of the MSFD is the third part. The develop- and Action Plan for the Circular Economy for the accordance with the requirements of the MSFD, ment of the PoMs in Bulgaria started at the beginning of 2015. Current PoMs are intended to provide a reduction period 2021–2030 has yet to be developed. which is the first EU legal instrument to explicitly of anthropogenic pressures for which no measures are planned under the updated second Black Sea River Basin address marine litter.69 Management Plan under WFD 2000/60/EC72 or when existing measures are considered insufficient to achieve GES. “Good environmental status” (GES) is defined through 11 qualitative descriptors, with a set of spe- PoM proposals have been developed on a wide national scale, with input from experts and policy makers and cific criteria and methodological standards. The in cooperation with Romania. Several EU-funded projects coordinate the monitoring programs between Bulgar- Box 6. MSFD (Directive 2008/56/EC) Black Sea Marine Strategy for Bulgaria up to 2021 ia and Romania and help to update the definitions for GES and the indicators aligned with the objectives of the Objective monitoring programs reported to the EU. The Bulgarian Program of Measures in the Black Sea Strategy combines that was developed to support MSFD implementa- The Marine Strategy Framework Directive has three procedures aimed at various topics, such as encouraging biodiversity conservation, reducing the impact of human tion concludes that, due to the significant pressure activities on the seabed, promoting sustainable use and management of marine resources (linked to the stocks of main goals: from human activities in the Black Sea countries, Black Sea fish species/shellfish), preventing the spread of invasive species and eutrophication, reducing the amount  o ensure the protection and the conservation of 1. T conditions for marine habitats and ecosystems of pollutants, reducing the amount of waste on beaches and in the marine environment, and preventing and limit- marine ecosystems and prevent their deteriora- ing possible noise pollution affecting Black Sea mammals and fish. have worsened, particularly in the coastal marine tion. In areas of high deterioration, ecosystem func- tioning must be restored. waters. At the same time, natural water circulation The majority of the measures planned in the Marine Strategy of Bulgaria are of an institutional nature, in response in the Black Sea and the relative proximity of the to the need to i) develop effective regulatory mechanisms for the activities and uses affecting the marine environ- 2.  To prevent and progressively eliminate pollution. rivers that contribute to its water balance, together ment and ii) ensure efficient coordination between the competent authorities for implementation of the Marine To contain the pressure of human activities (fishing, with marine pollution, add to the significant vulner- Strategy aligned with MSFD requirements and its ultimate goal – achieving and maintaining a good state of the use of diverse services, etc.) on the marine environ- marine environment. ability of the marine ecosystems. ment within levels compatible with the achievement of good environmental status. Ecosystems must have Source: Black Sea Basin Directorate, “Marine Strategy,” https://www.bsbd.org/uk/MarineStrategy.html. To comply with GES, Bulgaria has committed to the capacity to react to various natural and human-in- monitoring the quantity and quality of different cat- duced changes while enabling the sustainable use of the marine environment for future generations (e.g., egories of recyclable waste. These include artificial Common Fisheries Policy). polymer waste, rubber, clothing and textiles, paper __________________________ and cardboard, treated wood, metal, glass and ce- 70 S ee EIONET, “Marine Strategy Framework Directive: Articles 8, 9 and 10 and Geographic Areas and Regional Cooperation Reporting,” http://cdr.eionet. __________________________ europa.eu/bg/eu/msfd8910/.  alazov, H. Stanchev, and N. Valcheva, “Bulgarian Black Sea Monitoring Programme 2015. Coastal Dune Changes under Natural/Human Hazards,” in 68 P  IONET, “Marine Strategy Framework Directive: Monitoring Programmes,” http://cdr.eionet.europa.eu/bg/eu/msfd_mp//. 71 E Proceedings of the Twelfth Conference on the Mediterranean Coastal Environment, ed. E. Ozhan, 921–33, Varna, Bulgaria, October 6–10, 2015. 72 “Directive 2000/60/EC of the European Parliament and of the Council of 23 October Establishing a Framework for Community Action in the Field of  C, “Our Oceans, Seas and Coasts,” https://ec.europa.eu/environment/marine/good-environmental-status/descriptor-10/index_en.htm. 69 E Water Policy,” https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32000L0060. 54 Bulgaria: Towards Blue Economy Development Chapter 3 Bulgaria: Toward Blue Economy Development Chapter 3 55 The EC’s main findings and conclusions, based on fronts, environmental monitoring and accurate and an evaluation of updates of the initial assessment systemic data will prevent the country from dealing under Article 12 of the MSFD, are:73 “Bulgaria has not with pollution and climate uncertainties and will defined the good status of the marine environment help devising policy responses to support the tran- for all descriptors, due to the lack of data or the nec- sition to more sustainable blue economy develop- essary level of knowledge about some of the charac- ment. Timely actions to prevent pollution and adapt teristics. The distinction between definitions of good to climate risks would help to ensure future benefits. status and environmental objectives is not always Regional cooperation is key to achieving GES for clear.” Recently, the Commission required Bulgar- coastal and marine waters, and Bulgaria is actively ia74 to comply with an overdue reporting obligation involved in cross-border cooperation in the region under the MSFD, namely, to review, in a coordinated in line with the MSFD and MSP Directives. Under manner, the initial assessment, the determination of the MARSPLAN-BS II project, an Advisory Board was GES, and the environmental targets as elements of established involving leading MSP experts from its marine strategies every six years after the targets all over the world and representatives from other have initially been established. Given that the non- Black Sea countries, including Turkey, Georgia, and compliance persists, the Commission has decided to Ukraine, as well as the BSEC and BSC. The Advisory refer the case to the Court of Justice of the EU. Board has strengthened cooperation between Bul- The MSFD, in connection with the WFD, provides a garia and Romania and improved the consistency framework for the management of marine pollution. and coordination of the two national maritime spa- Although Bulgaria has made progress on several tial plans on all issues in the cross-border context. Box 8. Multi-Use Concept Supports a Circular Economy, Industrial Symbiosis Models, and a Blue Economy The multi-use (MU) concept is still novel for the Black Sea and has recently been piloted under the MAR- SPLAN-BS II Project (2019–2021) (funded by the European Maritime and Fisheries Fund [EMFF], DG MARE, and the EC) through a dedicated MU case study for the cross-border area of Bulgaria and Romania. The case study is investigating an MU combination between the tourism, UCH, and environmental protection sectors and identifying the main drivers and barriers for this MU potential and development. The MSP Directive is still the only document that supports MU development, as it requires that EU member states seek opportunities for the co-location of mar- itime activities when developing their maritime spatial plans. The study explores the real opportunities and barriers for this MU in Bulgaria, including also the scope for innovation, blue growth potential, and support for the maritime blue economy. Therefore, MU is explicitly encouraged in the national maritime spatial plan, supporting a shift from a sectoral approach to an MU opportunity planning approach. MARSPLAN-BS II Project: A Platform for Blue Economy Cooperation in Bulgaria The main best practice examples and lessons learned from the project are:  reating stronger links between competent authorities, as well as institutional and organizational learning at the ■C national and transboundary levels ■B  ringing together key institutions in Bulgaria and Romania with the aim of identifying cross-border issues and solutions to collaborate toward transboundary Black Sea MSP Chapter 4. ncreasing the knowledge and understanding of national and cross-border interests and approaches to MSP ■I Financing dentifying knowledge gaps and needs for the harmonization of data collection ■I  nhancing transboundary stakeholder involvement ■E dentifying local and transboundary interests in sectors and key issues ■I the Blue Economy  inding common solutions to shared problems: a common vision and common goals to boost blue economy ■F growth in the Black Sea Source: https://www.marsplan.ro/en. __________________________ Ibid., 63. 73  EC, “Marine Environment: Commission Decides to Refer Bulgaria to the Court of Justice,” https://ec.europa.eu/commission/presscorner/detail/en/ 74  IP_20_1234. Rusalka resort 56 Bulgaria: Towards Blue Economy Development Chapter 4 Bulgaria: Toward Blue Economy Development Chapter 4 57 T here are multiple sources and diverse fund- der the previous funding platform. The successor ed to renewable energy and shipping), and various Managing a diverse pool of funding opportuni- ing avenues that could be tapped to finance to the EMFF76 – a major source for advancing the programs launched by the European Investment ties can create blue economic opportunities in a blue economy investments, including gov- blue economy agenda in member states – will offer Bank (e.g., the Green Shipping Guarantee Program post-pandemic financial shortfall to build a better ernment budgets, EU funds, commercial loans, more opportunities to bring in external investors. and the Green Shipping Program Loan) provide and greener coastal and marine economy. Taking international financial institutions, and financing The range of measures that can be supported by fi- funds for eligible investment projects. The EU Re- a holistic approach to sustainable blue economy from capital markets. The ability of Bulgaria to raise nancial instruments that are managed by member covery Fund can, through dedicated cross-country development through the integrated planning of resources to finance blue economy investments states will be increased. allocations to Bulgaria, be instrumental in the short marine and coastal resources will facilitate the pro- could be hindered only by a weak capacity to iden- to medium term in helping to scale up innovative gramming of financial resources, open up oppor- tify bankable sectoral investments that mutually The EU, through the European Investment Bank, activities, such as offshore food and biomass pro- tunities for private businesses and stakeholders to reinforce the economic, environmental, and coastal launched the Green Shipping Guarantee Program duction and renewable energy, in a way that pre- access funding, and help shape coherent national community benefits. Further, there is need for bet- and the Green Shipping Lending Program in 2016. serves ecosystems and is sustainable. The World responses to transboundary and regional challeng- ter alignment among national and regional author- Both programs promote the construction or retro- Bank, under the future BBSEA program, will look at es. Such an approach will also strengthen Bulgaria’s ities that manage a number of EU programs and fitting of vessels to accelerate investment in green- possible avenues to support projects that address leadership position in a regional sea basin context more coordination with other international donors er ones, for instance, those that use alternative pro- marine pollution and litter in the Black Sea coun- and contribute to the implementation of the CMA. and potential private sector investments. pulsion systems. tries, including Bulgaria. Interregional blue economy value chains are pro- Marine and maritime-related investments can get moted by the new EU policy and the financial in- support through a variety of EU funding instru- strument Interregional Innovation Investment ments. These include the future “Horizon Europe” initiative (I3) under the DG REGIO, with financing program and its specific Mission on Healthy Oceans, of €500 million. The initiative aims to strengthen Seas, Coastal, and Inland Waters and the new LIFE interregional industrial cooperation via bottom-up program. If calibrated carefully (and based on smart mechanisms and to unlock the innovation poten- specialization), these funds can help Bulgaria to tial with a priority on a green and digital transition. devise effective ways to reduce marine pollution, This is an interesting opportunity for the blue econ- including plastics; adapt to climate change; sus- omy sectors. tainably use and manage ocean resources; develop new materials, including biodegradable plastic sub- The European Maritime and Fisheries Fund (EMFF) stitutes and new feed and food systems; and pro- supports the implementation of a common fish- mote better coastal and maritime spatial planning eries policy and investments to advance maritime and ocean governance. To address the common policy at the national level. The EMFF has the ulti- Black Sea regional challenges, such as pollution, in mate objective of enabling the community to deliv- the marine environment and the adverse effects of er on the EU’s marine and ocean conservation tar- climate change, collaborative projects can be fund- gets under the UN sustainable development goals ed through the next generation of interregional (notably the SDG14). The new, simplified design of and cross-border cooperation programs (e.g., the the EMFF (2021–27) provides for using the nation- Interreg NEXT Black Sea Basin program). Helping al operational program as a prime vehicle to sup- the economy to navigate through the “green and port the integration and holistic governance of the blue” and digital transitions, additional EU-pow- Bulgarian blue economy, while establishing logical ered investment avenues for specific themes can synergies with the other national programs under be found under the EU BlueInvest platform77 and the new cohesion policy, such as “Horizon Europe,” the future InvestEU program (under the infrastruc- I3, DIGITAL Europe, and the Connecting Europe Fa- ture and research windows). The CEF2 (related to cility II (CEF2). upgrading port infrastructure, lowering the carbon The EC’s proposals for the Multiannual Financial footprint, and ensuring compliance with air quality Framework (MFF) 2021–2027 will build on the ex- legislation), the new Innovation Fund (for demon- Durankulak fisherman harbor perience gained in setting up and operating un- strating innovative low-carbon technologies relat- __________________________ 75 See https://ec.europa.eu/fisheries/cfp/emff_en. BlueInvest aims to boost innovation and investment in sustainable technologies for the blue economy by supporting readiness and access to 76  finance for start-up businesses, SMEs, and scale-ups. It is enabled by the European Maritime and Fisheries Fund and open for stakeholders in Bulgaria. See https://webgate.ec.europa.eu/maritimeforum/en/frontpage/1451. 58 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development Chapter 5 59 5.1. Strategies and Legislation es, Inland Waterways and Ports of the Republic of Bulgaria Act (State Gazette No 28/29.03.2018).79 Bulgaria has made good progress in aligning its The final version of the national MSP is in the plan- sector policies with the EU blue economy frame- ning stage and is expected to be adopted by the work to integrate legal, regulatory, and institution- National Expert Council on Territorial Development al provisions for actions and coordination among and Regional Policy, and thereafter by the Council established blue economy sectors. The national of Ministers of Bulgaria. The Designated National strategies related to the blue economy agenda in- Competent Authority for MSP is the Ministry of Re- clude: the Concept for Tourist Zoning in the Repub- gional Development and Public Works (MoRDPW) lic of Bulgaria; the Updated National Strategy for in Bulgaria. The Advisory Council on MSP80 chaired Sustainable Tourism Development 2014–2030; the by the Minister of MRDPW supports the coopera- Multiannual National Strategic Plan for Aquacul- tion and coordination between relevant stakehold- ture; the Energy Strategy until 2020; the Integrated ers during the MSP process. Transport Strategy until 2030; the Marine Strategy; and the National Climate Change Adaptation Strat- There are several other legal acts and strategies egy and Action Plan. These strategies and plans that could support blue economy development in could be reviewed to identify the synergies among Bulgaria. These include: the Maritime Spaces, In- them with regard to their contribution to the blue land Waterways and Ports of the Republic of Bul- economy in the country. garia Act; the Tourism Act; the Fisheries and Aqua- culture Act; the Energy Act; the Concessions Act; The MSFD was transposed into national legislation the Mineral Resources Act; the Waste Management by the Regulation for the Protection of the Environ- Act; the Biological Diversity Act; the Protected Areas ment and Marine Space, adopted in 2010.77 The Ma- Act; the Water Act; and the Environment Protection rine Strategy was developed during 2012–2014. The Act. Although all of these could advance the blue Program of Measures (PoMs) under Article 13 of the economy agenda, matching the regulatory and in- MSFD started in 2015 and will provide actions for stitutional mandates with the appropriate budget reducing anthropogenic pressures to fill the gaps mechanisms and promoting the intersectoral co- of the second Black Sea River Basin Management ordination of investment priorities will be essential. Plan under the WFD 2000/60/EC where there are no measures or where existing measures are not sufficient to achieve GES. In Bulgaria, the actions related to the MSFD are coordinated by the Ministry 5.2. Institutions and Stakeholders Chapter 5. of Environment and Water (MoEW) and notably by The main institutions with competences related the Ministry’s Black Sea Basin Directorate. to the development of the blue economy sectors Policies and The legal frameworks and instruments for pursuing at the national and local levels are various govern- integrated coastal zone management were estab- ment agencies (see box 9), regional and local au- lished by the Black Sea Coastal Development Act, thorities, regional councils, district governors, coast- Institutions for which came into force in 2008 (SG 48/15.06.2007)78 al city mayors, and local communities. Institutional and was most recently amended in 2019. The EU collaboration and stakeholder cooperation on the MSP Directive was transposed into national leg- blue economy will also have to include academia, Advancing the Blue islation by an Amendment to the Maritime Spac- businesses, citizens, and civil society groups. Economy __________________________  egulation for the Protection of the Environment in the Seawaters. 2010. Adopted by Decree No. 273 of 23.11.2010. Promulgated State Gazette No 77 R 94/30.11.2010. Last amended State Gazette No 14/18.02.2020. Text is available at https://www.lex.bg/bg/laws/ldoc/2135707230. Black Sea Coast Development Act, 2008. Promulgated, State Gazette No. 48/15.06.2007, effective 1.01.2008, last amended by State Gazette No. 78  60/30.07.2019. Maritime spaces, Inland Waterways and Ports of the Republic of Bulgaria Act. Promulgated State Gazette No. 12, 11.02.2000. Last amended State 79  Gazette No. 28/29.03.2018.  ttps://www.msp-platform.eu/sites/default/files/download/bulgaria_-_v2_-_april_2020.pdf 80 h Rusalka resort 60 Bulgaria: Towards Blue Economy Development Chapter 5 Bulgaria: Toward Blue Economy Development Chapter 5 61 Box 9. Blue Economy Government Stakeholders The institutional options for the harmonization of opment of the Bulgarian Black Sea coast to pro- maritime sector policies and environmental pro- vide a better legislative environment for local au- Ministry of Transport, Information Technology and Communications (MoTITC)81 is responsible for the implemen- tation of the CMA provided through ad hoc ministerial meetings. Within the MoTITC are also the Executive Agency tection can make use of an existing governance thorities. Coastal communities are revitalizing and Maritime Administration 82 and the Bulgarian Ports Infrastructure Company (BPI Co.).83 framework for sectoral coordination. These options developing the local economy and infrastructure include: the CMA Steering Group for Implementa- through local development plans and funding for Ministry of Tourism (MoT)84 is responsible for implementation of tourism policy in cooperation with institutions, mu- nicipal administrations, nongovernmental organizations, businesses, and the media. The MoT includes the Tourism tion of the CMA; the National Advisory and Coordi- municipalities, businesses, and the nongovern- Policy Directorate,85 Tourism Programs and Projects Directorate, Beach Management Directorate,86 and Depart- nation Council for Environmental Protection in the mental sector through the Structural and Rural ment of Strategic Planning and Product Policy in Tourism. Black Sea Marine Waters,102 established as a subsid- Development Funds, which is an effective and ef- Ministry of Energy (MoEn)87 is responsible for the energy sector and for guaranteeing the country’s energy indepen- iary body to the MoRDPW to support cooperation ficient tool for implementing local development dence. The Ministry administers directorates with various functions, including the Natural Resources, Concessions and coordination among the relevant stakehold- policies. and Control Directorate88 and the Energy Strategies and Sustainable Energy Development Directorate.89 ers during the MSP process; the Water Coordina- Ministry of Economy (MoEc)90 is responsible for developing and implementing a low-carbon economy and for pro- tion Council103 on activities for the development moting investments, innovations, and competitiveness. The Consultative Council for Industrial Stability supports the and implementation of river basin management MoEc on such topics as new industrial policy, sustainable development of the energy infrastructure, incentives to 5.3. Research and Innovation plans (RBMPs) and flood risk management plans promote energy efficiency, and increases in energy competitiveness. (FRMPs); the National Council on Biological Diver- The CMA promotes research and innovation across Ministry of Agriculture, Food and Forestry (MoAFF)91 is in charge of fishery and aquaculture sector policy. The MAFA sity104 for Implementation of the National Biodi- the blue sectors as key to unlocking the growth po- oversees the Executive Agency of Fisheries and Aquaculture (EAFA)92 and the Agricultural Academy.93 The Direc- versity Strategy and Policy and Natura 2000 and tential of the Black Sea region and to stimulating torate for Maritime Affairs and Fisheries 94 and Common Fisheries Policy Directorate95 are also part of the MoAFF. its respective 5-years Action plans actions plans/ knowledge transfer “from labs to the market” and Ministry of Regional Development and Public Works (MoRDPW)96 is responsible for territorial and regional develop- land and species management; control on invasive investments in human capital. This is all the more ment policy and European territorial cooperation, and the water supply and sewerage sector. The Ministry has spe- alien species (IAS), sustainable use of biological re- important given the vital role of science-based deci- cific competences under the Territorial Development Act, the Black Sea Coast Development Act, and the Maritime Spaces, Inland Waterways and Ports of the Republic of Bulgaria Act. The MoRDPW is designated as a Competent sources; the National Tourism Council105 on issues sion making for the benefit of coastal communities Authority for the implementation of MSP in Bulgaria in compliance with MSP Directive 2014/89/EU. The National related to tourism, including coastal and maritime and sustainable economic growth in the region. In Centre for Regional Development97 is a research and development (R&D) institute on regional and spatial planning, tourism; the High Level Water Advisory Board106 for order to unlock the blue economy potential, high- urban design, and many related issues supporting the MoRDPW. decisions related to the development of RBMPs in ly qualified and skilled professionals and scientists Ministry of Environment and Waters (MoEW)98 has a mandate to develop and implement the national environmen- compliance with the WFD and the national water will be needed. tal policies with regard to management, control and protection of the components of the environment. The spe- monitoring system; and the Black Sea Basin Di- cialized agency within the MoEW is the Executive Environment Agency. Regional Inspectorates of the Environment Bulgaria has long scientific traditions and holds a rectorate overseeing the implementation of water and Water99 are administrative structures within the MoEW responsible for implementation of state environmental leading position in Black Sea marine science. With management policy, the protection of the public policy at the regional level. The four Basin Directorates within MoEW are the responsible bodies for integrated water interest and public health, and sustainable devel- the SRIA and the recently launched Black Sea Con- management and protection at river basin level. opment of the basin area. nect H2020 project, the coastal and marine science Ministry of Education and Science100 is responsible for primary, secondary, vocational, and higher education, as community in Bulgaria has recognized the need well as science. The National Council for Science and Innovation101 is chaired by the Minister of Education and Sci- The Union of Bulgarian Black Sea Local Author- to work together and to collaborate in providing ence. The Council oversees the development of the National Research Strategy. The Roadmap introduces the main ities (UBBSLA) is a nongovernmental, voluntary, scientific and research support for scaling up blue research priorities at the EU and national levels in accordance with the National Research Strategy, the Innovation Strategy for Smart Specialization, and the agenda of the European Strategy Forum on Research Infrastructures. and nonprofit organization.107 UBBSLA unites 20 economy initiatives. municipalities bordering the Bulgarian Black Sea __________________________ Coast – Аvren, Аksakovo, Balchik, Beloslav, Burgas, The largest academic center in Bulgaria, focused 81 https://www.mtitc.government.bg/en. Byala, Varna, Valchiol, Dalgopol, Devnya, Dobrich, entirely on maritime education, is the “Nikola 82 https://www.marad.bg/en. 83 http://www.bgports.bg/en. Dolni Chiflik, Каvarna, Мalko Tarnovo, Nesebar, Po- Vaptsarov” Naval Academy108 in Varna. It is the old- 84 http://www.tourism.government.bg/en. morie, Primorsko, Suvorovo, Shabla, and Tsarevo – est higher education school in Bulgaria, established 85 http://www.tourism.government.bg/en/kategorii/struktura/directorate-general-tourism-policy. located in three administrative regions: Burgas, in 1882. The Naval Academy has faculties related to 86 http://www.tourism.government.bg/en/kategorii/struktura/directorate-management-sea-beaches. 87 https://me.government.bg/en/pages/about-us-1.html. Varna, and Dobrich. UBBSLA provides expertise the blue economy sectors, including navigation, 88 https://me.government.bg/en/departments/prirodni-resursi-koncesii-i-kontrol-36-1.html. water transport management, logistics, port man- and technical assistance to municipalities in de- 89 https://me.government.bg/en/departments/energy-strategies-and-policies-for-sustainable-energy-development-6-1.html. 90 https://www.mi.government.bg/en. veloping plans and strategic documents, as well as agement, mechanical ship engineering, ship elec- 91 https://www.mzh.government.bg/bg/ministerstvo/. expert opinions on the laws concerning the devel- trical equipment, information and communica- 92 http://iara.government.bg/?lang=en. 93 https://www.agriacad.bg/en. __________________________ 94 https://www.mzh.government.bg/bg/ministerstvo/struktura/direkciya-morsko-delo-i-ribarstvo/. 95 https://www.mzh.government.bg/bg/ministerstvo/struktura/direkciya-obsha-politika-v-oblastta-na-ribarstvoto/. 102 https://saveti.government.bg/web/cc_501/1. 96 https://www.mrrb.bg/en/. 103 https://saveti.government.bg/web/cc_1701/1. 97 http://www.ncrdhp.bg/en/. 104 https://saveti.government.bg/web/cc_35/1. 98 https://www.moew.government.bg/en/ministry/. 105 https://saveti.government.bg/web/cc_47/1. 99 https://www.moew.government.bg/bg/kontakti/regionalni-inspekcii-po-okolna-sreda/. 106 https://saveti.government.bg/web/cc_37/1. 100 https://www.mon.bg/en/. 107 http://www.ubbsla.org/en/x². 101 https://saveti.government.bg/web/cc_54/1. 108 http://www.naval-acad.bg/en. 62 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development 63 Tyulenovo Sinemorets – Veleka river tions technologies (ICTs), cybersecurity, ship repair environment in the country’s territorial waters and The Institute’s activities include fish stock assess- Bulgaria has the potential to enhance its marine technology, and ocean engineering and manage- in the Bulgarian EEZ. In support of MSFD imple- ments in the Black Sea and the monitoring of fish science and research capacity and to take the lead ment, all of which have well-established academic mentation, the Institute monitors the ecological population dynamics and structure and the nutri- in common regional marine research in line with potential. The Technical University of Varna109 has a status of Black Sea coastal and sea waters coordi- ent base of commercial marine fish species. Re- the SRIA and the Maritime Research Strategy for long tradition in educating engineers in shipbuild- nated by the MoEW. The Institute for Biodiversity search topics include Black Sea marine ecosystem Europe.115 Support to the scientific community ing, ship repair, and ship mechanics; it also provides and Ecosystem Research of the Bulgarian Acade- changes under the influence of various anthropo- in the coming years should aim to create a wid- degrees in marine electrical and naval engineering, my of Sciences112 carries out scientific research on genic and climatic factors, fishery stock and non- er regional network within marine and maritime and more recently in marine navigation. The Prof. theoretical and applied ecology, biodiversity, envi- fish marine resources, and marine aquaculture. research organizations and to develop actions to Dr. Assen Zlatarov University110 in Burgas has strong ronmental protection, and sustainable use of bio- address the scientific challenges in the imple- The Centre for Coastal and Marine Studies (CCMS)114 faculties in organic and inorganic chemical tech- logical resources. It uses a modern methodology mentation of the Marine Directive. By attaining is a non-profit research foundation established to nologies (oil, gas, water, etc.), biotechnology, and the necessary scientific knowledge in support of of environmental classification and assessment of conduct coastal and marine research (studies and renewable energy. policy making and investment decisions, Bulgaria anthropogenic pressure on surface water ecosys- surveys of coastal and marine processes) and to pro- could be more successful in achieving a good state The Institute of Oceanology (Varna) to the Bul- tems and carries out ecological impact studies and vide scientific support to the implementation of EU of the marine environment. garian Academy of Sciences111 conducts multidis- research on marine biodiversity and conservation of coastal and maritime strategies (IMP, blue growth ciplinary research in the fields of marine physics aquatic species and habitats and integrated water strategy, circular economy), project development, and chemistry, geology, archaeology, biology, and management. The Institute of Fishery Resources in knowledge transfer, networking, and consultancies. ecology of the sea, hydrodynamics and lithody- Varna113 is an independent unit of the Agricultural namics of coastal zones, and ocean technologies. Academy to the Ministry of Agriculture, Food and It also performs complex monitoring of the marine Forestry. __________________________ 109 http://fs.tu-varna.bg/. 110 https://www.btu.bg/index.php/en/. __________________________ 111 https://www.io-bas.bg/. 114 http://www.ccms.bg/en/. 112 http://www.iber.bas.bg/. A European strategy for marine and maritime research: a coherent European research area framework in support of a sustainable use of oceans 115  113 http://www.ifrvarna.com/. and seas /* COM/2008/0534 final * 64 Bulgaria: Towards Blue Economy Development Bulgaria: Toward Blue Economy Development Chapter 6 65 T he potential of traditional and newly emerg- Figure 17. Transitioning to Blue Economy as an Chapter 6. ing blue economy sectors in Bulgaria to drive transformational changes and increase their Opportunity Enabling Framework contribution to the economy is strong. However, a number of obstacles related to the policy frame- work, decision-making processes, competing in- post-Covid terests over the use of space, the lack of financing economic for a Blue Economy opportunities, and the skills shortage need to be recovery addressed. The recommendations that follow are on selected blue economy sectors and on the im- in Bulgaria: Policy portant theme of preventing marine pollution. If implemented, these recommendations will have MFF + RRF European direct as well as indirect economic impacts, in- 2021-2027 Green Deal cluding from intangible contributions or from ac- Recommendations celerating the transition to a blue economy. Recovering from the impacts of the COVID-19 pan- demic on the maritime sectors will require a re- definition of the maritime economy’s relationship with nature. Many of the policy recommendations point to the potential of blue approaches to accel- 6.1. Blue Economy Policy erate a way out of the pandemic crisis and build Framework forward better in established sectors, such as tour- Bulgaria has already taken steps at the sectoral lev- ism, fisheries, and aquaculture. The pandemic of- el to strengthen the policy basis of the blue econo- fers an opportunity to reinforce the effort to build a my through the transposition of EU legislation. This sustainable blue economy fit for the future: a blue includes, among other actions, policies and legisla- economy that derives value from the sea and coast- tion on environmental protection and water qual- al areas while protecting the health of the coastal ity, transport and connectivity, safety and security, and marine ecosystem and enabling its sustainable waste management, energy, and fisheries, as well use. Most importantly, recovery measures need to articulate a way forward and to inform a recovery as the adoption of sectoral action plans. Although plan that integrates considerations of blue natural undoubtedly the transposition and enforcement of capital. EU law and important national legislation could be more consistent and better exploit obvious syner- Post-pandemic recovery of the economy, the am- gies among sectoral activities, Bulgaria is working bitious targets of the EGD, and new EU multiannu- on its first comprehensive national maritime spatial al financial planning for 2021–27 all pose multiple plan116 that will serve as the basis for a more holis- challenges and opportunities for the Bulgarian au- tic approach to blue economy development at the thorities in their efforts to restore growth and jobs. national level. Nonetheless, the alignment of issues At the same time, there are opportunities to set in relating to institutional power and responsibility, as motion the necessary structural reforms, optimize well as effective coordination in policy and decision inter-institutional coordination, diversify supply making among sectors and competent institutions, chains, and better integrate circular economy prin- lags behind. ciples in the blue economy. Taking such a course will help Bulgaria to assume an exemplary role in Setting a clear direction for the blue economy path tackling common challenges at the Black Sea re- will provide a platform for improved governance and gional and sea-basin levels. coordination among all institutions and stakehold- __________________________ The national maritime spatial plan is currently under preparation and in due course will be subject to wider stakeholder consultation. 116  Sozopol harbor, old town 66 Bulgaria: Towards Blue Economy Development Chapter 6 Bulgaria: Toward Blue Economy Development Chapter 6 67 ers in the blue economic sectors. Such coordination regulate the use of marine resources. This will en- ensures the consistency of sector development able a comprehensive approach to sustainable blue plans, facilitates synergies, reduces competition economy development, the harmonization of legis- over marine resources, and promotes cooperation lative frameworks to facilitate a “green transition,” on priority investments. Although there have been the effective programming of financial resources, multiple steps taken in this direction, both MSFD and the better formulation of coherent national re- and BEDF tools could prove useful in informing fu- sponses to transboundary and regional challenges. ture efforts to finalize a national maritime spatial (iii) Carry out an analysis and mapping of the plan that could reduce potential conflicts between institutions and legal requirements involved to sectors and create a sustainable blue development identify the regulatory gaps and inconsistencies in space. the blue economy policy framework and pinpoint Stakeholder engagement is a key element for ev- areas for regulatory improvements. Where appro- idence-based and transparent policy making. A priate, consider introducing administrative and holistic approach to the blue economy policy pro- regulatory incentives. cess relies on strong collaboration among public administrations, business operators, research and (iv) Use different tools and change-behavior scientific communities, and the different interest formats to promote individual, corporate, and so- groups associated with the Black Sea. Public con- cietal responsibility for sustainable development. Burgas gulf sultation alone is no longer sufficient. For example, Despite the economic and cultural importance of implementing effective MSP entails the adoption the Black Sea to the Bulgarian people, environmen- tal awareness can be improved in many levels of nities, and safeguard natural capital. The pipeline activities, such as sustainable offshore food and bio- of inclusive participatory planning procedures that Bulgarian society through a variety of approaches, could be part of a National Blue Economy Roadmap mass production, as well as renewable energy in a move beyond traditional top-down approaches. including ocean literacy, environmental education, investment plan to take maximum benefits from way that it is sustainable and preserves ecosystems. The following highlights the good practices and and awareness building in schools and among the EU funds (e.g., the EMFF). Public investments Consider the mobilization of public funding to sup- tools used to identify priorities and contextualize individuals and SMEs that are active in the differ- leveraging private capital could enhance the effect port marine cluster incubation and start-ups for interlinkages for the more efficient policy integra- ent sectors of the blue economy, such as fisheries, of EU (COVID) recovery fund resources to support established sectors (e.g., blue tourism, fisheries and tion of strategic, regulatory, and institutional frame- coastal tourism, and short-sea shipping. the growth of SMEs in the blue economy. aquaculture, and maritime transport/ship building) works. These are possible takeaways that Bulgaria and emerging sectors (e.g., blue renewable energy, (v) Expand the policy and regulatory frame- (ii) Prioritize public financing for a sustainable could use to address the various challenges and offshore wind energy, biotechnology, coastal pro- work for the use of MSP in Bulgaria as a partici- blue economy in coastal communities under the strengthen its blue economy sectors: tection, etc.). patory spatial development tool. Several elements national EMFF program (2021–27). This approach may find their place in spatial planning regulation. will effectively provide a long-term financial instru- (iv) Empower local and regional authorities in Policy development and planning ment for the transition to the blue economy and the coastal areas to play a greater role in decision MSP is a tool used to enhance the integration of for a blue transition implementation of priorities. It will also encourage making and the implementation of the 2021–27 cross-sectoral planning and governance and stake- further integration among maritime sectors and in- Cohesion Funds. The use of integrated territorial holder engagement. It uses an ecosystem approach (i) Adopt a national blue economy vision and crease synergies between the respective strategic investment and community-led local development to plan for the efficient use of marine resources and strategy, accompanied by a blue economy road- objectives and planning tools under the common tools offers avenues for targeted and cohesive solu- is an instrument to reduce conflicts and increase map to accelerate the transition. The strategy fisheries policy, the maritime spatial planning direc- tions to challenges related to the blue economy. synergies between sectors. MSP encourages invest- would facilitate a holistic approach and the con- tive, the (marine) environment policy, and other rele- The definition and implementation of “joined-up” ments and opens an avenue to test and deploy nov- solidation of governance structures under strong vant EU/regional and national policies/strategies. growth strategies between the territorial units (mu- el marine technologies (e.g., offshore wind energy). national-level leadership. The roadmap will identify nicipalities, districts) in the coastal region will help MSP also helps to identify areas suitable for com- (iii) Plan measures in support of key blue econ- common priorities and actions to be implemented improve the administrative capacity of each respec- binations of multi-uses of marine resources and to omy sectors (e.g., fisheries, aquaculture, maritime in the coming years to steer up the transition to a tive administration. solve spatial conflicts. transport, and tourism) in the national recovery and blue economy in an integrated, consistent, and resilience strategy to unlock funds under the €750 (v) Prioritize the sustainable blue economy comprehensive way with a multisectoral approach billion EU recovery package. Against the strong con- in local development plans to foster prosperous and the continuous engagement of all stakehold- Financing blue economy priorities ditionalities for accessing these funds, highlighting coastal communities and to facilitate access to the ers. (i) Use the MSP process to identify a pipeline the potential of the blue economy to contribute national EMFF program (2021–27). This kind of bot- (ii) Consolidate existing governance structures of investments to “blue” the maritime economy to Bulgaria’s EU-directed green and digital transi- tom-up approach will ensure long-term financing that bring together relevant institutions and spe- sectors that promote business development and tions could be beneficial. The recovery funds could for coastal communities and the sharing of the blue cialized government agencies with mandates to innovation, generate benefits to coastal commu- be instrumental in helping to scale up innovative economy’s economic benefits. The Black Sea Virtu- 68 Bulgaria: Towards Blue Economy Development Chapter 6 Bulgaria: Toward Blue Economy Development Chapter 6 69 al Knowledge Centre and the Black Sea Assistance Protecting coastal Mechanism, both financed under the EMFF, could and marine natural capital serve as virtual stakeholder consultation and co- (i) Prevent the accelerated degradation of the operation platforms that could help in sensitizing coastal and marine environment. Consider the stakeholders on the blue economy in the Black Sea strict enforcement of the Black Sea Coastal Devel- and support them in identifying synergetic projects opment Act and ensure compliance with protected in the region. areas’ acts and EU directives and with the Nation- al Prioritized Action Framework for Natura 2000 in Knowledge and innovation Bulgaria regarding priorities identified for marine areas and relevant international treaties. (i) Establish a Maritime Technology Exchange Platform to strengthen the collaboration among (ii) Address marine litter pollution and poor SMEs, maritime clusters, business labs, public au- waste management practices in coastal and ma- thorities, and research communities. Use this as a rine areas to prevent the further degradation of knowledge platform to promote the coordination valuable landscapes and marine habitats. Imple- of needs among sectors and to identify and under- ment measures to adhere to bathing water quality stand the relevant markets for marine technology in compliance with the WFD and MSFD to achieve and data and information innovation services. GES including in the water bodies directly connect- ed to the Black Sea. (ii) Strengthen the science-based policy-mak- ing process by enhanced collaboration with aca- (iii) Bring in circularity in the blue economy Sozopol old town demia and the research community. This will con- and in sector plans as an important policy direc- tribute to a better investment climate, including tion to protect coastal and marine ecosystems from the capacity for an assessment of natural capital industrial pollution. 6.2. Coastal and Marine Tourism sure that they are linked to the delivery mechanism inputs to key blue economy sectors, such as coast- for integrated coastal and marine planning, biodi- al and maritime tourism, fishery and aquaculture, Coastal tourism will remain a pillar of all the Black versity conservation, and societal engagement. This Stakeholder inclusion and collaboration Sea national economies. The sector highly de- includes product development and investment shipping and ports, and protection of the environ- ment and ecosystems. pends on the quality and health of coastal and plans based on the sustainability of blue ecosys- (i) Map the blue economy stakeholders. Devel- maritime space and ecosystems. The tourism sec- tems’ associated services, coastal infrastructure, oping a comprehensive profile of stakeholder inter- (iii) Develop an online tool for information and tor could contribute and gain from maritime spa- and human capital. Strategies and sector plans ests and contacts (e.g., in the form of a database) at knowledge exchange on best practice and net- tial planning and use it as a lever for growth and should prevent the accelerated rate of coastal and the earliest possible stage is essential to identifying working on the sustainable blue economy. This sustainability by applying the multi-use concept marine environmental degradation through con- a wide pool of stakeholders before deciding which platform will serve as a “repository of indigenous and ecosystem-based approach. A good example sistent sector measures and strict enforcement. need to be considered in MSP and in economic and knowledge and best practice” for sharing best in this regard is the outcomes of the EC’s DG MARE Since the wild sand beaches and dunes are natural financial planning. practices, procedures, and guidelines, in line with MARSPLAN-BS II117 project supporting the ongo- landscapes used to “brand” Bulgaria’s beach tour- international, EU, regional, and national policies (ii) Establish or make greater use of existing in- ing MSP. Bulgaria may need to take actions to ism, proper mapping and preservation of natural and conventions. ter/multisectoral stakeholder groups in support overcome the current challenges related to the ecosystems and adequate conservation will be im- of the transition to a blue economy and consider seasonality of traditional tourism products and (iv) Promote innovation in emerging blue portant to maintaining the quality of the tourism utilizing them as discussion platforms. This should current business-as-usual models based on mass economy sectors through smart specialization offerings. ensure an integration among policy and decision tourism, including to protect the natural assets on and “matching neighboring regions”. Smart spe- which the tourism largely depends. (ii) Foster greater cooperation among sector makers, sectoral structures, and administrations cialization is backed by the European Regional De- stakeholders, (public and private) researchers, and also engage citizens in a transparent and open velopment Fund to strengthen the connection be- and local institutions and authorities. Use public decision-making process toward a blue economy. Sector strategy and blue economy policy tween science and research on the one hand and policies to leverage private participation in facilitat- industries on the other (e.g., food industry, health, (iii) Ensure the appropriate representation of implementation ing better access to the private investments of local advanced manufacturing, and the circular econo- all relevant stakeholders from different sectors. (i) Revisit tourism sector development strate- operators and other small-scale organizations in my), along with the development of new business Involve them early in the management process to gies in line with blue economy principles and en- the sector. models. Matching smart specialization between advise on business opportunities and local benefits. regions will unlock interregional innovative invest- One way to ensure early stakeholder involvement is __________________________ ments through the new cohesion policy (2021–27). through the MSP process. Information can be found at http://www.marsplan.ro/en. 117  70 Bulgaria: Towards Blue Economy Development Chapter 6 Bulgaria: Toward Blue Economy Development Chapter 6 71 Products and markets ence. This could include, for example, stimulating Sector competitiveness (iii) Modernize fish markets for direct sale by cultural heritage sites in a small area (town, region) and market development fishermen and companies. This could include elec- (i) Develop innovative marketing concepts to create a common cultural heritage narrative and tronic auctioning platforms for commercial fishing to ensure sustainable growth in the coastal (i) Diversify fishery and aquaculture pro- developing actions to promote this narrative to the for maximum no-waste catch. Access to the direct and maritime tourism sector. Based on the duction by tapping into the economic synergies outside world. Promoting Black Sea UCH itinerar- sale of fish on farms through separate stands, on- limits to expansion, these concepts should aim among tourism, catering, recreational fishing, and ies and developing the cultural dimension of tour- line stores, mobile shops, and farm markets would to promote qualitative rather than quantitative environmental services in MPAs. Scuba diving ism (in addition to adventure/scuba diving tourism, open new market opportunities. growth, balance geographic and seasonal foci, tourists can be attracted by aquaculture farms as and establish new niche products that have the small-scale cruising/yachting, pesca-tourism, and a place to visit and observe. Small local nearshore (iv) Promote good aquaculture practices and potential to address the seasonality constraints to eco-tourism) could extend the tourist season and restaurants that serve aquaculture products (for ex- market expansion. This includes the restructur- sector development. local community benefits. ample, black mussels) or fish catches by small-scale ing of existing farms by increasing the production (ii) Promote alternative forms of tourism that (ii) Open new market opportunities for tour- fishery are a good vehicle for promoting traditional capacity and diversification of fish types accor- help diversify product offerings. Diversification ism products through digitalization. Adopt ICT local cuisines, coastal tourism, and the sustainable ding to market needs, the innovation and optimi- of local tourism products in synergy with other innovations, social media, and other high-end tech- use of marine resources. zation of current production, and product value sector activities, such as agriculture, to create lo- nology innovation to boost new services, access addition. (ii) Enhance the innovation and competitive- cal tourist offerings may help to address the lim- global market niches, and better understand mar- (v) Increase fish food processing opportunities ness of the sector through collaborative knowl- itations associated with the current seasonality of ket trends and future potential to tailor prospec- edge exchange among private businesses, leaders by creating niche products that make Bulgarian tourist goods. tive marketing strategies. Big data and Tourism in science and education, civil society organizations, produce from catch and aquaculture more com- (iii) Create diverse, new products and ser- 4.0118 approaches would allow for a combination of governmental institutions, and policy makers. petitive. vices tailored to specific markets. Focusing on tourism mobility data with other available data (i.e., specific target groups (age range, nationality, accommodation capabilities, resources available, marital status, etc.) or types of service (adven- population density, traffic pollution, etc.). ture, nature-based, wellness, culture, etc.) could open more business and revenue opportunities. Sustainable and nature-based tourism products, 6.3. Fisheries and Aquaculture such as sea coast hikes, nature museums, bird watching, cycling, and so on, are relevant tourist The challenges in the fisheries and aquaculture sec- attractions for new types of local and internation- tor are not limited to outdated fishing vessels and al visitors. inefficient infrastructure or the lack of fisheries sta- tistics and fish stock assessments. Monitoring activ- (iv) Use technology and innovation to grow ities are still fragmented and irregular at the nation- “niche” markets. For example, the integration of al level. Marine aquaculture lacks diversification. As niche tourism offerings and use of mobile apps a measure to address the impacts of COVID-19 on (e.g., building an ICT platform to link a culinary the sector, the EC has launched a support scheme route, bird watching, and wellness/spa along the to protect fisheries and aquaculture by introducing coast) could help to develop year-round congress tourism. Applying a multitude of promotional tools specific measures, including amendments to the and making use of existing travel apps (e.g., Tri- EMFF. Consequently, Bulgaria has modified its Op- pAdvisor, Booking.com) by continuously placing erational Program and has reallocated €6.6 million information on nature tourism products for select- of public funds to compensate companies for fi- ed target groups will help overcome the effects of nancial losses caused by the coronavirus outbreak. the slump due to pandemic restrictions. Additional financial support is expected to lead to positive results by mitigating job losses across the sector and preventing bankruptcies, closures, and Technology and innovation downsizing. The possible takeaways that could help (i) Tap into growth opportunities to create an to address sector challenges and strengthen its Aquaculture platform, Sea shells, Dalboka authentic coastal and maritime heritage experi- transition to a blue economy include: __________________________ 118 https://www.tourism4-0.org. 72 Bulgaria: Towards Blue Economy Development Chapter 6 Bulgaria: Toward Blue Economy Development Chapter 6 73 Sector governance and management fisheries and aquaculture through collaboration (e.g., closed containment systems) have been tested with other sectors and stakeholders that are consid- and adapted, for example, to Baltic Sea conditions. (i) Enforce measures to combat IUU fishing ering cross-sectoral and environmental synergies. (e.g., illegal bottom trawling) and to protect ma- rine habitats. This will require additional inspections (vii) Offer a holistic and effective national re- Environmental monitoring and science and penalties implemented by the Executive Agen- sponse to regional challenges to the sustainable and technology development cy of Fishery and Aquacultures (EAFA). Increasing exploitation of marine biological and natural (i) Use environmental monitoring technolo- the awareness of stakeholders and the public, in- resources (e.g., fisheries, oil and gas exploration) gies and services to strengthen knowledge cluding businesses, consumer associations, and civil in line with overarching cooperation frameworks, exchange. For example, establishing a techno- society, regarding the protection of fishery resources such as the CMA and the Sofia Ministerial Declara- logy exchange platform between industries could against IUU fishing and environmental hazards will tion for Sustainable Fisheries.119 strengthen knowledge exchange and technologi- increase the impact of these measures. cal uptake. (ii) Promote measures to increase domestic fish consumption. This could involve encouraging 6.4. Emerging Blue Economy (ii) Foster effective monitoring technologies and services. The blue economy sectors that use fish consumption through public programs (for ex- Sectors ample, school feeding, seafood festivals along the marine resources will benefit from common stan- coast) or by advertising healthy seafood cuisine and The emerging sectors can act as catalysts to advan- dards and protocols, based on oceanic and marine dietary culture. These measures could also include ce the blue economy transition. Blue biotechnolo- science, to protect the natural capital, including a healthy protein diet campaigns, marketing, and gy120 has considerable prospects for development. system that complements existing monitoring and product development. The advancement of new marine-based industries testing facilities. For example, fisheries observation can help Bulgaria’s decarbonization. The potential programs could help the industry collect vital stock (iii) Deepen the cooperation among all stake- from hydrogen sulfur in the Black Sea’s deep wa- data to enhance catch, protect endangered spe- holders in the fisheries and aquaculture sector. ter could play an important role in meeting the re- Kaliakra wind farm cies, and reduce IUU fishing. Measures to facilitate cross-sectoral cluster collabo- gion’s future energy demands. The emerging blue ration between the private sector, experts, and policy (iii) Support scientific and research capacity in economy sectors are an area for development while makers (fisheries local initiative groups [FLAGs] could Use the MSP process to engage stakeholders in re- blue economy sectors. Support policy and deci- decision makers work to strike a balance between play the role of cross-sectoral clusters) could deliver solving potential user conflicts. sion making with adequate economic and financial conservation and the sustainable use of marine multiple economic gains. This includes establishing analysis that factors in the value of natural capital. resources. The following recommendations could beneficial partnerships between businesses, fisher- (ii) Develop a national strategy for the imple- For instance, apply a cost-benefit analysis (CBA) inform a forward-looking vision for the develop- ies and aquaculture, and scientific organizations to mentation of blue biotechnology. Bulgaria has the of investments in beach armoring through na- ment of the emerging blue economy sectors: protect and restore marine and coastal biodiversity potential, based on its abundant natural resources ture-based “green” infrastructure in recreational and and ecosystems, including MPAs and Natura 2000. and technology, to develop the sector. Blue bio- tourism-related sectors, other blue sectors (fishing, Sector development policies technology has applications in many sectors, such aquaculture, shipping), and ecosystem protection. (iv) Promote the selectivity of fishing gears with as food processing, medicine, cosmetics, and biore- a view to achieving sustainable and responsible (i) Promote the use of renewable energy re- mediation technologies. The first step will be to de- (iv) Build scientific capacity to support the fishing and to reducing the environmental impact sources through investments in offshore wind velop a specific marine biotechnology strategy and MSP process and prioritization of investments. of fisheries. energy. This will include adopting policy incentives supporting policies and regulations to avoid user Encourage decision makers in Bulgaria to opt for to deploy innovative renewable energy installations. conflicts and potential negative impacts. In parallel, nature-based solutions in the blue sectors where (v) Expand science and research inputs into the possible. Bulgaria’s FRMPs do not include an The Bulgarian coast has excellent wind potential, expand the scientific and laboratory capacity for re- industry to close the knowledge gap. This could estimation of the CBA of measures or references but the sector is largely untapped, making wind search in the biodiversity resources of the Black Sea. involve improving the monitoring of fish stocks and to specific sources of funding depending on the energy among the top prospective candidates for Bulgaria has a traditionally well-developed pharma- marine ecosystems to inform the development of nature of the expected benefits. investments. Undertake a mapping of possible ceutical industry that could be more fully utilized. science-based fisheries management plans for sites for marine renewable energy farms (including Engaging in a marketing and branding campaign strategic capture species. offshore wind) based on a thorough analysis of in- for Bulgarian blue bio-economy products and ser- (vi) Further the engagement of the sector in tersectoral synergies and potential cross-sectoral vices would help brand the bio-products. 6.5. Pollution-Free Marine ongoing MSP as an important tool for tapping impacts. Conduct technical and economic feasi- Environment into the development opportunities of capture bility studies of offshore technology in the country. (iii) Mobilize public funding to support marine __________________________ cluster incubation support for blue bio-economy The EU Waste Framework Directive121 provides im-  Sofia Ministerial Declaration,” High Level Conference on Black Sea Fisheries and Aquaculture, Sofia, June 7, 2018, https://ec.europa.eu/fisheries/sites/ 119 “ start-ups. Develop novel public-private partnership portant mechanisms for the removal of litter and fisheries/files/docs/2018-06-07-sofia-declaration_en.pdf. financing instruments with long-term commit- the improvement of water quality in line with the 120 OECD, Glossary of Terms (Paris: OECD, 2013). Biotechnology is defined as “the application of science and technology to living organisms as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services.” ments. Novel aquaculture cultivation techniques requirements of the MSFD. To achieve the objec- 74 Bulgaria: Towards Blue Economy Development Chapter 6 Bulgaria: Toward Blue Economy Development Chapter 6 75 tives of the Urban Wastewater Treatment Directive (v) Increase drastically the share of recycled waste. reductions in single-use plastics, and environmen- 91/271/EEC, Bulgaria has developed an Implementa- The recycling rate of recyclable waste compared to tal certification schemes. tion Program with a set of measures and deadlines. the total amount of waste is approximately 10–15 per- Nonetheless, there are serious challenges along the cent, while the recycling rate compared to the total Contribution to Black Sea Cooperation coast, where 77 out of 105 industrial sites are sig- amount of recyclable waste (i.e., recycling potential) is nificant sources of wastewater. The reuse and re- between 32 and 42 percent. Still, the share of recycled (i) Encourage a coordinated response to marine cycling of waste in the country is still significantly waste in Bulgaria is very low: only 3 percent in 2017 litter in coastal municipalities. Bulgarian coastal re- lower than the EU-28 average. Moreover, there is as compared to the EU average of 40 percent (reused, gions and citizens can develop a national response yet no circular economy policy program in Bulgaria, recycled, or composted and digested). to marine litter through a system of coordinated a gap that needs to be filled in line with the EGD. actions, adding to the ongoing initiatives under (vi) Step up efforts to address the compliance Unabated marine pollution can affect many sectors the Commission on the Protection of the Black Sea gap with the Urban Wastewater Treatment Di- and cost hundreds of millions of euros for industries Against Pollution (Bucharest Convention). rective and meet the targets for coverage of coastal that depend on the quality of marine resources. An communities with WWTPs. (ii) Launch an initiative for “litter-free” coastal important step will be inclusion of coastal commu- communities. Public authorities should incentivize nities and businesses in “zero waste” initiatives for (vii) Mobilize investments, including through EU the development of litter-free coastal communities reducing natural resource depletion and ecosys- funds, in waste prevention, separate collection and and zero-waste generation. These communities will tem destruction, conserving energy, reducing wa- recycling, and efforts to address air pollution, there- have access to funds for municipal schemes to pre- ter usage, preventing pollution and toxins creation, by enhancing biodiversity and green infrastructure. vent waste generation and reduce the leakage of lit- and strengthening the local economy. Taking for- (viii) Promote circular economy-based business ter into the sea by improving waste collection, man- ward this exciting paradigm will offer a way for the products. In the context of the programming of na- agement, and recycling, promoting circular business people to have a rich quality of life that can be sus- tional operational programs (2021–27) in Bulgaria, models, raising public awareness, and removing lit- tained over time. In addition to actions to help keep promote funding for incentives for innovative busi- ter from the environment (e.g., promoting fishing for the blue economy sectors in check and embrace ness models and actions that promote circularity, litter actions and beach clean-up activities). “greening,” the following policies could encourage sustainable practices to reduce marine pollution. Sinemorets south Policy implementation waste and waste from sewer systems, that incorpo- rate marine litter prevention and reduction mea- (i) In line with MSFD provisions, define GES sures; (b) a monitoring program to assess the cur- and targets where these do not exist and deter- rent status of the marine environment with respect mine timelines for achieving them. Define mea- to marine litter; (c) measures to prevent and reduce sures to achieve GES, determine those that have marine litter; (d) programs for the removal and envi- a direct impact on reducing existing stresses, and ronmentally sound disposal of existing marine litter quantify the expected reduction of pressure as a according to national legislation for management result. Ensure regional cooperation where practical of this kind of waste; and (e) awareness raising and and appropriate to address the predominant pres- education programs and campaigns. sures in the Black Sea region. Ensure that the differ- ent elements are reported under the MSFD by the (iii) Develop a vision and strategy for main- set deadline. streaming circular economy principles in govern- ment policies, including stimuli for up-taking ma- (ii) Support the implementation of the Black terial and resource efficiency by economic sectors. Sea Marine Litter Regional Action Plan adopted by the Commission on the Protection of the Black (iv) Enhance the enforcement of policies and Sea Against Pollution in 2018.122 This includes the regulations to prevent illegal dumping of waste, development of a National Action Plan for Marine including littering. Enforce and use economic in- Litter that will include: a) appropriate policies, le- struments, such as pay as-you-throw programs. In- Tyulenovo gal instruments, and institutional arrangements, troduce new instruments to raise the level of recy- including adequate management plans for solid cling from its current amount. __________________________ __________________________ The overall objective of the Plan is to consolidate, harmonize, and implement the necessary environmental policies, strategies, and measures for 122  121 D  irective (EU) 2018/851 of the European Parliament and of the Council of 30 May 2018 amending Directive 2008/98/EC on waste. the sustainable and integrated management of marine litter issues in the Black Sea region. See https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32018L0851. See http://blacksea-commission.org/Downloads/BS_Marine_Litter_RAP_adopted.pdf. 76 Bulgaria: Towards Blue Economy Development Conclusions Bulgaria: Toward Blue Economy Development References 77 Conclusions References T he Black Sea coast of Bulgaria has seen a The perceived shortcomings in Bulgaria’s blue BSC (Commission on the Protection of the Black ———. 2019a. The EU Blue Economy Report 2019. lot of development over the past 30 years. economy sectors can be addressed by adhering to Sea Against Pollution). 2008. “State of the Environ- European Commission: Brussels. 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