EVOLVING EUROPEAN SECURITY ENVIRONMENT IMPACTS ON NATIONAL SECURITY OF SUPPLY

Transcription

1 EVOLVING EUROPEAN SECURITY ENVIRONMENT IMPACTS ON NATIONAL SECURITY OF SUPPLY THE 3RD EUROPEAN CONFERENCE OF DEFENCE AND THE ENVIROMENT (ECDE) 28 MAY 31, 2017 Raimo Luoma, NESA

2 NESA S MISSION & TASKS NESA s mission is to secure the economic functions and technical systems necessary for the population s wellbeing, the country s economy and national defence in the event of serious disruptions and emergencies. To fulfil the mission, NESA s tasks are to 1. Promote public-private cooperation 2. Secure the functioning of critical technical systems 3. Secure the production of critical goods and services, including production that supports national defence 4. Manage the mandatory stockpiles and security stockpiles 5. Maintain reserve stocks critical for fulfilling both the NESA mission and Finland s international commitments 6. Take up additional responsibilities as set by the Government

3 INTERNATIONAL PARAMETERS 1. Finland is a Member of the European Union, including the euro zone 2. Finland is not a member of the North Atlantic Treaty Organization (NATO) 3. Around 90 % of goods imported to Finland or exported from Finland are shipped

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5 INTERNATIONAL COOPERATION FOR SECURITY OF SUPPLY 1. Bilateral agreements Security-of-supply agreement with Sweden in 1992 Security-of-supply agreement with Norway in 2005 Bilateral agreements on the emergency stockpiling of oil (Sweden, Estonia, Denmark and Latvia) 2. Multilateral agreements International oil crisis response system (IEA), 1992 Nordic treaty on cooperation in the defence equipment industry and securing military security of supply (NORDEFCO), 2001 Nordic countries' framework agreement on health care sector emergency planning for NBC threats, Cooperation with NATO NATO PfP Agreement 1994 (EAPC, CEP), civil emergency planning 4. Cooperation pertaining to the European Union EPCIP, EEI Directive 12/2008 (the EU's vital infrastructure) Oil Stock Directive 9/2009 Government Decree on Security of Supply of Natural Gas, 2 December 2010 European Defence Agency (EDA) and European Union Agency for Network and Information Security (ENISA) Other international cooperation Acomes 1999, operators stockpiling OECD countries oil European Energy Infrastructure Security Network (EEISN) 2007 Nordic Contingency Planning and Crisis Management Forum (NordBER) 2005

6 DEVELOPMENT OF SECURITY OF SUPPLY GOALS The world of uncertainty and conflicts 2013 Globalisation and the network economy 2008 Importation temporarily disrupted, serious disruptions to normal circumstances The premise comprises international markets and national measures Securing infrastructure is highlighted, international cooperation is more active 9/11/2002 A crisis lasting 12 months, including national military defence and the threat of terrorism Importation opportunities temporarily impeded The focus is on the functioning of society, especially data and communications technology EU circumstances 1995 A crisis lasting 12 months that may include national military defence National measures are supplemented by the EU, the IEA and bilateral arrangements Prioritising basic maintenance Cold war threats 1988 Blockage of foreign trade for one year Broad concept of basic maintenance

7 GOVERNMENT DECISION ON THE SECURITY OF SUPPLY GOALS (857/ ) Safeguarding the critical infrastructure of society Energy transmission and distribution networks Electronic information and communication systems Financial services Transport logistics systems Water supply Construction and maintenance of the infrastructure Waste management Safeguarding the critical production of society Food supply Health care and social services Industry Production that supports national defence Business continuity in organisations and networks Local and regional preparedness International cooperation

8 SECURITY OF SUPPLY, TOTAL DEFENCE Well-being of the population Securing the vital needs of the population. Functioning Economy Securing the economy s ability to produce vital products and services. Secure Infrastructure Securing critical infrastructure to ensure the ability to deliver vital services National Defence Securing critical resources and infrastructure for national defence

9 FINNISH STRENGTHS (IN SECURITY OF SUPPLY) Ample natural resources water resources potential for bioenergy strategic metals undeveloped land (space) Good capacity and safety in food production Advanced welfare system Education system and high level of competence, work culture Efficient physical and electronic infrastructure Benefits of small size, flexible administration, no corruption in public government Good tradition of cooperation between the public and private sectors (social capital) High GNP per capita as a buffer Small risk for extensive natural disasters Stability and security in politics and legislation

10 NATIONAL EMERGENCY SUPPLY ORGANISATION Public-privatepartnership and expert network (c. 1,000 members) The National Emergency Supply Council National Emergency Supply Agency Board Food Supply Sector Energy Sector Transport and Logistics Sector Health Sector Finance and Insurance Sector Industry Sector Other Pools Primary Production Pool Food Industry Pool Retail and Distribution Pool Household Preparedness Commission Power and District Heating Pool - Regional Commissions - District Heating Section - Domestic Fuels Section Oil Pool - Natural Gas Section Air Transport Pool Surface Transport Pool Maritime Transport Pool Public Health Pool Water Pool Waste Management Commission Finance Pool Insurance Pool Chemical Industry Pool Forest Industry Pool Military Industry Pool Construction Industry Pool - Regional Commissions Plastic and Rubber Industry Pool Technology Industry Pool DIGI Pool Media Pool Regional Enterprise Commissions Prioritised Enterprises (about 1.500)

11 NESA S ORGANISATION Board CEO Administration department financial management personnel administration legal matters Planning and analysis international affairs research and development services National Emergency Supply Council Communications Basic Production department food supply health care water supply basic and defence industry municipalities Energy Supply department fuel stockpiling energy production energy transmission and distribution systems agreements in the energy field Infrastructure department ICT mass media transport logistics banking and insurance

12 WHAT DO WE PREPARE FOR? Key threats: Disruptions to data communication systems and networks, cyber threats Interruptions to energy supply Serious disruption to public health affecting people's ability to function Natural disasters and environmental accidents The likelihood of use of military force against Finland is small but it cannot be ruled out. The most serious external threat is a crisis situation temporarily impeding Finland's ability to produce or import critical products and services.

13 THE STOCKPILING SYSTEM Basis in law Purpose Products State owned reserve stockpiles Act on Safeguarding Security of Supply (1390/1992) Protecting the livelihood of the population and functions of the economy during a severe crisis Grains and seeds, imported fuels and crucial raw materials, hospital supplies, medicines, alloys, chemicals Compulsory stockpiles Act on Compulsory Stockpiles of Imported Fuels (1070/1994), Act on Compulsory Stockpiling of Medicinal Products (979/2008) Protecting the supply of fuels and pharmaceuticals during a severe interruption in import Crude oil, oil products, coal, (natural gas), medicines Security stockpiles Security Stockpiling Act (970/1982) agreement based Protecting the livelihood of the population and manufacturing during an interruption of supply of crucial raw materials Crucial products and materials (GA 552/2013)

14 SOURCES OF FINANCING Security of supply levy Electricity EUR /kWh Coal (in terms of heat) EUR 1.18/t Natural gas (in terms of heat) EUR 0.084/MWh Petrol EUR /l Diesel and light fuel oil EUR /l Heavy fuel oil EUR /kg Borrowings (up to EUR 200 million) Internal financing Holdings Revenue of the security of supply levy in million ( 42,8 million in 2015) 2015 balance sheet of the National Emergency Supply Agency 1.8 billion ( 1.6 billion in 2015) 2016 turnover 66 million ( 250 million in 2015)

15 TASKS OF THE POOL COMMITTEES Analyze and monitor the security of supply in the field Prepare general plans for serious disturbances and states of emergency Prioritize the enterprises and organizations in the field Plan the allocation of critical resources Instruct and educate the actors in the field in matters concerning BCM Study and report on the need for obligatory and security stockpiles Conduct preparedness exercises

16 ENERGY SUPPLY: A VITAL FUNCTION IN SOCIETY The reliable operation of energy supply and electricity supply, in particular, is a basic condition for all other vital functions in society. Increasing demands are placed on the supply reliability of energy networks that tie up large amounts of capital in a society that is electricity-intensive and ever more dependent on the reliable supply of electricity.

17 DEPENDENCY ON IMPORTED ENERGY The value of importation from Russia is 60 % of all energy imports 10,1 milj. t. Crude oil Russia 83 % Self-sufficiency 36 % 3,4 milj. t Oil products Russia 29 % 40% 35% 25,7 TWh (2,6 billion m 3 ) Natural gas Russia 100 % 30% 25% 20% 15% 10% 5% 0% 2,2 milj. t Coal Russia 83 % 21,5 TWh Electricity Sweden 81 % Russia 18 % 16,30 TWh Net imports 58 tu Nuclear fuel Russia 39 % Sweden 61 % Electricity imports from Russia about 5 % From total energy consumption Source: Statistics Finland Import data from the year 2015 Self-sufficiency from the year 2014

18 GROUNDS FOR SECURING ENERGY SUPPLY Energy is a strategic product and a tool for using political power Functioning of open energy markets Distributed, efficient production structure that is based on several energy and procurement sources Use of domestic fuels Advanced infrastructure and logistics Reserve supply stock of imported fuels (security of supply for five months) Preparation and technical reliability of supply of operators critical in terms of security of supply Replacement alternatives in different availability and usage situations Steering measures and rationing

19 ENERGY POLICY IN THE DECISION ON THE SECURITY OF SUPPLY GOALS Increasing self-sufficiency in energy Domestic electricity production capacity Reliable electricity transfer and distribution network Methods for steering and flexibility of consumption Reserve stocks of imported fuels Stocks of imported fuels corresponding to five months (5) of normal consumption (EU regulation 3 months) Production of renewable energy The increase will be taken into account in decisions on regulating power and electrical system solutions

20 THANK YOU! Contact information: National Emergency Supply Agency Aleksanterinkatu 48 A FI Helsinki, Finland Tel