On March 22, Nordic Investment Bank (NIB) held the annual meeting of the Board of Governors in Tallinn followed by a briefing on impact and value-add in the Nordic-Baltic region in the current circumstances. Among other prominent members, Karen Ellemann, Secretary General of the Nordic Council of Ministers, was one of the keynote speakers at the seminar “Stronger together – the new geopolitical reality and its impact on the Nordic–Baltic region”.
The meeting in Tallinn was the first in person since Vilnius 2013. NIB Governors use the occasion to discuss how the bank can best assist them in the current context where the regional cooperation by the Nordic-Baltic owner countries is gaining momentum. The Governors also decide on the dividend payment to the owner countries based on the Bank’s 2023 results. The Governors approved the Bank’s annual accounts for 2023 and a payment of EUR 63 million as dividends to the Nordic and Baltic owner countries and offered guidance for NIB’s priorities towards a sustainable, innovative and resilient Nordic-Baltic region.
In the annual meeting the Board of Governors focused on 3 key topics: climate and nature, productivity and innovation, security and resilience and the need to foster joint approach for reaching shared goals. It was agreed to take additional effort to accelerate successful green transition and improved productivity to ensure resilience and competitiveness.
Karen Elleman: ”The discussions today show a huge need for further co-operation, but also huge support to making sure that we also have investments ready for for the companies that really deliver on the green transition. That really deliver on making sure that we are the most integrated and sustainable region in the world.”
The Nordic and Baltic countries condemn in the strongest terms possible Russia’s unprovoked and unjustified war of aggression against the independent and sovereign country Ukraine, which has altered the geopolitical situation, created new uncertainties, and brought the Nordic and Baltic countries closer together. It has increased the focus on security in the region, while the long-term challenges of battling climate change and making our economies more competitive remain.
NIB has acted as an efficient financing vehicle, aligning its activities with the policy priorities of its owner countries for almost 50 years since its foundation. Its financing can further improve prosperity and cooperation within the region. Therefore, at the meeting the bank was asked to focus on mobilising finance for climate and nature, productivity and innovation, as well as consider ways to support resilience, all while ensuring its added value to the region.
Climate and nature
The Nordic-Baltic countries have set clear objectives to reach climate targets and address nature loss. With 2023 being the hottest year on record, the impacts of both climate change and nature loss are a source of growing uncertainty in our economies. However, the transformation towards a climate and nature resilient economy also brings opportunities in our region. We have world-leading companies in transformative industries that include renewable energy, battery value-chains, the hydrogen economy, carbon capture and storage, as well as carbon-neutral steel and cement production. Building on these successes, we recognise that climate change and nature loss need to be addressed jointly, for instance, by investing in circular economy solutions that support both efficient use of natural resources and climate mitigation objectives.
To steer this transition towards net zero targets, significant additional investments will be needed. As an international financial institution, NIB’s ability to mobilise and crowd-in private investment can contribute to bridging this financing gap.
Productivity and innovation
Productivity and innovation play a pivotal role in driving economic growth and competitiveness. The Nordic-Baltic region hosts various innovation clusters, connecting industry and academia to advance sectors such as renewable energy, life sciences, IT, digitalisation, e-government, fintech, autonomous and electric transport, or green shipping.
While our countries have consistently ranked among the most competitive globally, this leadership should not be taken for granted. As technological frontiers expand and societies age, we must rejuvenate our economies by investing in research and development, as well as human capital.
Security and resilience
Russia’s war in Ukraine and the conflicts in the Middle East are examples of increasing geopolitical tensions and risks, highlighting the significance of security preparedness. These conflicts have also triggered a surge in energy prices as well as disrupted trade and supply chains, while hybrid threats – cyberattacks, forced migration, threats to critical infrastructure – have increased.
Beyond these developments, a broader agenda is evolving, encompassing access to key materials, the security of supply chains, data and information infrastructure, a stronger defence as well as developing the related infrastructure. NIB stands ready to respond to the priorities of its owners.
The themes of green transition, innovation and security are mutually and virtuously reinforced. Renewable technology companies accelerate the climate transition, which in turn promotes energy security. Investments in near-shoring supply chains build resilience against geopolitical shocks and allow us to maintain high levels of expenditure in research and development. By focusing on these priorities, we can make the Nordic-Baltic economies more resilient.
Stronger together
Fostering our joint approach to climate and nature, productivity and innovation, and security and resilience, requires collaboration in long-term strategy and short-term action. The Nordic and Baltic countries have demonstrated the success of this formula in the past, and it will serve us well in the future. NIB actively seeks cooperation with public and private partners, as well as utilising the opportunities of InvestEU. The Nordic and Baltic companies are invited to use NIB’s long-term financing in transforming today’s challenges into tomorrow’s growth and resilience.
Through shared efforts, we can navigate the complexities of our time, creating a shared prosperous and sustainable future. Our ability to succeed is greatly enhanced by our cooperation and integration. The Nordic-Baltic region is stronger together.
