Sustainable fisheries partnership agreements sfpa

EUROPEAN COMMISSION

COM(2021) 72 final

on the conclusion of a Sustainable Fisheries Partnership Agreement between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand and the Implementation Protocol thereto

1. CONTEXT OF THE PROPOSAL

• Reasons for and objectives of the proposal

The Council, on the basis of the recommendation from the European Commission,authorised the European Commission to negotiate, on behalf of the European Union, a new Agreement between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand, and a Protocol setting out the fishing opportunities and financial contribution. At the end of the negotiations an Agreement and Protocol were initialled by the negotiators on 11 January 2021. The new Agreement repeals and replaces the existing Agreement which entered into force on 28 June 2007 ; 1 it covers a period of six years (2021-2026) from the date of its provisional application, renewable by tacit agreement. The new Protocol covers a period of four years (2021-2024) from the date of provisional application laid down in Article 15, that being the date on which it is signed by the parties, and may be extended by two years if the parties so agree.

The purpose of this proposal is for the Council to authorise the signing and provisional application of the Sustainable Fisheries Partnership Agreement and the Implementation Protocol thereto

• Consistency with existing policy provisions in the policy area

The current Fisheries Partnership Agreement (FPA) between the European Union and the Governments of Denmark and Greenland 2 was signed on 28 June 2007 and entered into force on 2 November 2007 for a duration of six years. The agreement is tacitly renewed every 6 years, with the last prolongation having occurred on 1 January 2019. On this basis, the current 5-year Protocol 3 to the FPA entered into application on 1 January 2016 4 (expired on 31 December 2020) and it establishes fishing opportunities for the Union fleet and the corresponding financial contribution to be paid by the Union and EU ship-owners.

The new SFPA and its Implementing Protocol pursue the priorities of the reformed Common Fisheries Policy 5 and its external dimension, 6 with a view of continuing and reinforcing the strategic partnership between the European Union and the Governments of Greenland and Denmark in the field of fisheries.

The aim of the Protocol is to grant fishing opportunities to Union vessels in the Greenland waters, on the basis of the best available scientific advice and respecting the recommendations of the International Council for the Exploration of the Sea (ICES), the Northwest Atlantic Fisheries Organization's (NAFO) and of the North East Atlantic Fisheries Commission (NEAFC). The Commission based its position in part on the results of an evaluation of the previous Agreement and Protocol and of a forward-looking assessment of whether a new Agreement and Protocol should be concluded. The Protocol also enables the European Union and Greenland to work more closely together on promoting sound exploitation of fishery resources in Greenlandic waters and to support efforts by the Government of Greenland to develop its fisheries sector, in the interests of both parties.

The species covered by the new Protocol are Cod, Pelagic Redfish, Demersal Redfish, Greenland Halibut, Northern Prawn, Grenadier, Capelin and Mackerel. The new Protocol provides fishing opportunities for 12 vessels. Six EU Member States have a direct fishing interest in the new Protocol, namely Denmark, France, Germany, Poland, Lithuania and Sweden and, to a lesser degree, Spain and Portugal.

In return, the EU budget will provide an annual financial compensation to Greenland of € 16 521 754 out of which € 2 931 0000 earmarked to support the fisheries policy of Greenland

• Consistency with other Union policies

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

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

The legal basis is Article 43(2) of the Treaty on the Functioning of the European Union, which establishes the Common Fisheries Policy and Article 218(6)(a)(v) and (7) TEFU on the conclusion of agreements between the Union and third countries and the possibility to authorise the negotiator to approve on behalf of the Union modifications to the agreement that have been adopted by a simplified procedure or by a body set up by the agreement.

• Subsidiarity (for non-exclusive competence)

The proposal falls under the exclusive competence of the European Union.

The proposal is proportionate to the objective of establishing a legal, environmental, economic and social governance framework for fishing activities carried out by EU vessels in third-country waters, as set out in Article 31 of the Regulation establishing the Common Fisheries Policy. It complies with those provisions as well as with those on financial assistance to third countries laid down in Article 32 of that Regulation.

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

• Ex-post evaluations/fitness checks of existing legislation

The ex-post evaluation was conducted over the period April to August 2019.Stakeholders were consulted during the ex-post evaluation of the Protocol for the period 2016-20. Experts from the Member States were also consulted in technical meetings. These consultations led to the conclusion that it would be beneficial to renew the Protocol with the governments of Greenland and Denmark. The main reasons why it was considered beneficial to renew the protocol are, on the one hand, because the FPA and the protocol are very relevant to the needs of the EU in terms of providing access to the EU fleet and supporting scientific collaboration and sustainable exploitation and, on the other hand, because the agreement is relevant to the Greenland government in terms of cooperation with the EU.

Member States, industry representatives, international civil society organisations and the fisheries administration and civil society representatives of Greenland were consulted as part of the evaluation. Consultations also took place in the framework of the Long Distance Advisory Council.

• Collection and use of expertise

The Commission used an independent consultant for the ex-post and ex-ante evaluations, in accordance with Article 31(10) of the Regulation establishing the Common Fisheries Policy.

4. BUDGETARY IMPLICATIONS

The annual financial contribution from the European Union is EUR 16 521 754, based on:

a) an annual amount for access to fishery resources for the categories provided for in the Protocol, set at EUR 13 590 754 for the duration of the Protocol;

b) support for the development of Greenland’s sectoral fisheries policy amounting to EUR 2 931 000 for the duration of the Protocol. This support meets the objectives of Greenland’s national policy on the sustainable management of their maritime fishery resources for the entire duration of the Protocol.

The annual amount for commitment and payment appropriations is established during the annual budgetary procedure, including for the reserve line for protocols not yet having entered into force at the beginning of the year 7 .

5. OTHER ELEMENTS

• Implementation plans and monitoring, evaluation and reporting arrangements

The monitoring arrangements are provided for in the Protocol implementing the new Partnership Agreement.

on the conclusion of a Sustainable Fisheries Partnership Agreement between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand and the Implementation Protocol thereto

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) in conjunction with Article 218(6)(a)(v) and (7) thereof,

Having regard to the proposal from the European Commission,

Having regard to the consent of the European Parliament 8 ,

(1) The Commision negotiated on behalf of the European Union a new Sustainable Fisheries Partnership Agreement between the European Union Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand ("Partnership Agreement") as well as a new Implementation Protocol to the Partnership Agreement.

(2) The Partnership Agreement and the Implementation Protocol were initialled at the end of those negotiations on 11 January 2021.

(3) The Partnership Agreement repeals the previous Agreement that was concluded between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand and that entered into force on 28 June 2007.

(4) (4) In accordance with Council Decision 2021/…/EU 9 , the new Partnership Agreement and the Implementaiton Protocol were signed on… [ insert the date of signature ].

(5) The Partnership Agreement and Implementation Protocol have been applied on a provisional basis from the date of their signature.

(6) The Partnership Agreement and the Implementation Protocol should be approved on behalf of the European Union.

(7) Article 12 of the Agreement establishes the Joint Committee responsible for monitoring its implementation. Furthermore, in accordance with Article 4 and Article 7 of the Protocol, the Joint Committee may approve certain amendments to the Protocol. In order to facilitate the approval of such amendments, the Commission should be empowered, subject to specific conditions, to approve them under a simplified procedure,

HAS ADOPTED THIS DECISION:

The Sustainable Fisheries Partnership Agreement between the European Union on the one hand and the Government of Greenland and the Government of Denmark, on the other hand (hereinafter referred to as ‘the Agreement’) and the Implementation Protocol thereto (hereinafter referred to as ‘the Protocol’) are hereby approved on behalf of the Union.

The text of the Agreement and Protocol is attached to this Decision as Annex I.

In accordance with the provisions and conditions laid down in Annex II to this Decision, the Commission is authorised to approve, on behalf of the Union, the amendments to the Protocol adopted by the Joint Committee established under Article 12 of the Agreement.

The President of the Council shall, on behalf of the Union, give the notification provided for in Article 20 of the Fisheries Agreement and Article 14 of the Implementation Protocol thereto.

This Decision shall enter into force on the day following that of its publication in the Official Journal of the European Union .

This Decision is addressed to the Member States.

Done at Brussels,

For the Council

LEGISLATIVE FINANCIAL STATEMENT

1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1. Title of the proposal/initiative

Proposal for a Council Decision on the signing, on behalf of the European Union, and provisional application of the Sustainable Fisheries Partnership Agreement and its Implementing Protocol between the European Union on the one hand, and the Government of Greenland and the Government of Denmark.

1.2. Policy area(s) concerned in the ABM/ABB structure 10

11 – Maritime affairs and fisheries

11.03 – Compulsory contributions to regional fisheries management organisations (RFMOs) and other international organisations and sustainable fisheries agreements (SFAs)

11.03.01 – Establishing a governance framework for fishing activities carried out by Union fishing vessels in third-country waters

1.3. Nature of the proposal/initiative

X The proposal/initiative relates to a new action

◻ The proposal/initiative relates to a new action following a pilot project/preparatory action 11

◻ The proposal/initiative relates to the extension of an existing action

◻ The proposal/initiative relates to an action redirected towards a new action

1.4.1. The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

The negotiation and conclusion of Sustainable Fisheries Partnership Agreements (SFPAs) with third countries meet the general objective of giving EU fishing vessels access to the fishing zones of third countries and developing a partnership with those countries with a view to strengthening the sustainable exploitation of fishery resources outside EU waters.

SFPAs also ensure consistency between the principles governing the common fisheries policy and commitments made under other European policies (sustainable use of third-country resources, combating illegal, unreported and unregulated (IUU) fishing, integration of partner countries into the global economy and better political and financial governance of fisheries).

1.4.2. Specific objective(s) and ABM/ABB activity(ies) concerned

Specific objective No 1

To contribute to sustainable fishing in non-EU waters, maintain a European presence in distant-water fisheries and protect the interests of the European fisheries sector and consumers by negotiating and concluding SFPAs with coastal states, consistent with other European policies.

1.4.3. Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

The conclusion of the Agreement and its Implementing Protocol enables to continue and reinforce the strategic fisheries partnership between the European Union and Greenland. The conclusion of the Protocol will create fishing opportunities for Union vessels in the Grenlandic fishing zone.

The Agreement and the Protocol will also contribute to better management and conservation of fishery resources, through financial support (sectoral support) for the implementation of programmes adopted at national level by the partner country, in particular to reinforce monitoring, control and surveillance.

Lastly, the Agreement and the Protocol will contribute to Greenland’s sustainable exploitation of its marine resources and to Greenland’s fishing economy by promoting growth associated with fishing-related economic activities.

1.4.4. Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

Fishing opportunity utilisation rates (annual uptake of fishing authorisations as a percentage of availability under the Protocol).

Catch data (gathering and analysis) and the commercial value of the Agreement.

Contribution to employment and to added value in the Union and to stabilising the Union market (in aggregate with other SFPAs).

Contribution to improving research, surveillance and control of fishing activity by the partner country and the development of its fisheries sector.

1.5. Grounds for the proposal/initiative

1.5.1. Requirement(s) to be met in the short or long term

It is intended that the new Agreement and Implementing Protocol will apply provisionally from the date of its signature, so as to minimise any interruption of fishing operations which are ongoing under the current Protocol.

The new Agreement and Protocol will provide a framework for the fishing activities of the Union fleet in Greenland fishing zone and will authorise EU vessel owners to apply for fishing authorisations to fish in that zone. In addition, the new Agreement and Protocol will enhance cooperation between the EU and Greenland with a view to promoting the development of a sustainable fisheries policy. It provides, in particular, for vessels to be monitored via VMS and for the electronic transmission of catch data. The sectoral support available under the Protocol will help Greenland with its national fisheries strategy.

1.5.2. Added value of EU involvement

Failure by the Union to agree on a new Agreement and Protocol would impede the fishing activity of Union vessels as the current Agreement contains a clause excluding fishing activities not taking place in the framework defined by a Protocol to the Agreement. Consequently, the added value for the EU’s long-distance fleet is very clear. The Protocol also offers a framework for enhanced cooperation between the Union and Greenland.

1.5.3. Lessons learned from similar experiences in the past

Funds provided as financial compensation for access under the SFPA constitute fungible revenue in the national budget of Greenland. However, funds intended for sectoral support are allocated (generally by introduction in the annual budget law) to the Ministry responsible for fisheries, as a condition for the conclusion and monitoring of SFPAs. These financial resources are compatible with other sources of funding from other providers of international funding for carrying out projects and/or programmes at national level in the fisheries sector.

1.5.4. Compatibility and possible synergy with other appropriate instruments

1.6. Duration and financial impact

Proposal of limited duration

– X Proposal/initiative in effect from 2021 to 2026

– X Financial impact from 2021 to 2025

◻ Proposal/initiative of unlimited duration

– Implementation with a start-up period from YYYY to YYYY,

– followed by full-scale operation.

1.7. Management mode(s) planned 12

X Direct management by the Commission

– X by its departments, including by its staff in the Union delegations;

– ◻ by the executive agencies

◻ Shared management with the Member States

◻ Indirect management by entrusting budget implementation tasks to:

– ◻ third countries or the bodies they have designated;

– ◻ international organisations and their agencies (to be specified);

– ◻ the EIB and the European Investment Fund;

– ◻ bodies referred to in Articles 208 and 209 of the Financial Regulation;

– ◻ public law bodies;

– ◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

– ◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

– ◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

– If more than one management mode is indicated, please provide details in the ‘Comments’ section.

2. MANAGEMENT MEASURES

2.1. Monitoring and reporting rules

Specify frequency and conditions.

The Commission (DG MARE) will ensure regular monitoring of the implementation of the Protocol as regards the use of fishing opportunities by operators, catch data and compliance with conditions for sectoral support.

Furthermore, the SFPA provides for at least one annual meeting of the Joint Committee, at which the Commission and Greenland will review the implementation of the Agreement and Protocol and, if necessary, adjust the programming and the financial contribution.

2.2. Management and control system

2.2.1. Risk(s) identified

Payments will be implemented in a decoupled manner as regards the contribution for access and the contribution for sectoral support.

The payments for access will be made annually on the anniversary date of the Protocol, except in the first year, when the payment will be made in the three months after the start of provisional application. Vessel access will be controlled by the issuing of fishing authorisations.

The support will be paid for the first time within three months after the start of the provisional application, subject to the agreement on an annual and multiannual implementation programme; for the following years, it will be conditional to the results achieved. The results achieved and the implementation rate will be monitored in accordance with the Guidelines on the Implementation of Sectoral Support for Greenland Fisheries policy to be agreed by the Parties, on the basis of reports or documentary evidence provided by the partner country.

2.2.2. Information concerning the internal control system set up

The identified risk is the under-use of fishing opportunities by EU vessel owners and the under-use or delayed use by Greenland of funds intended to finance the sectoral fisheries policy. Extensive dialogue is planned on the programming and implementation of the sectoral policy laid down in the Agreement and the Protocol. Joint analysis of results, as referred to in Article 4 of the Protocol, also forms part of these control methods. In addition, the Agreement and the Protocol contain specific clauses for their suspension, under certain conditions and in given circumstances.

2.2.3. Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

Payments relating to access costs under Sustainable Fisheries Partnership Agreements (SFPAs) are subject to checks aimed at ensuring their compliance with the provisions of international agreements. Checks relating to sectoral support are aimed at monitoring the implementation of the support. Monitoring is carried out by Commission staff in EU Delegations and during Joint Committees meetings. A multiannual programming matrix is used to evaluate progress. If progress is insufficient, the payment of the next tranche is suspended or possibly reduced. The overall cost of the checks on all SFPAs is estimated to be around 1.8% (of the contributions in 2018). The procedures for checks on SFPAs are based largely on essential regulatory requirements. If no shortcomings that could have a significant impact on the legality and regularity of the financial transactions are detected, the checks are considered effective. The average error rate is estimated at 0.0%.

2.3. Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

The Commission undertakes to establish political dialogue and regular coordination with Greenland with a view to improving the management of the Agreement and the Protocol, and strengthening the Union’s contribution to sustainable resources management. Any payment which the Commission makes under an SFPA is subject to the Commission’s standard rules and budgetary and financial procedures. In particular, the bank accounts of the third countries into which the financial contribution is paid are fully identified. Article 3(6) of the Protocol provides that the financial contribution for access and that intended for development of the sector are to be paid into a Public Treasury account.

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework

Type of
expenditure

from EFTA countries 14

from candidate countries 15

from third countries

within the meaning of Article 21(2)(b) of the Financial Regulation

Establishing a governance framework for fishing activities carried out by European Union fishing vessels in third-country waters (SFAs)

· New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework

Type of
expenditure

from EFTA countries

from candidate countries

from third countries

within the meaning of Article 21(2)(b) of the Financial Regulation

3.2. Estimated impact on expenditure

3.2.1. Summary of estimated impact on expenditure

EUR million (to three decimal places)

Heading of multiannual financial
framework

Sustainable growth: natural resources

Budget line 16 11.03.01

Appropriations of an administrative nature financed from the envelope of specific programmes 17

TOTAL appropriations
for DG MARE

• TOTAL appropriations of an administrative nature financed from the envelope for specific programmes

TOTAL appropriations
under HEADING 2
of the multiannual financial framework

If more than one heading is affected by the proposal / initiative:

• TOTAL operational appropriations

• TOTAL appropriations of an administrative nature financed from the envelope for specific programmes

TOTAL appropriations
under HEADINGS 1 to 4
of the multiannual financial framework
(Reference amount)


Heading of multiannual financial
framework

EUR million (to three decimal places)

• Other administrative expenditure

TOTAL appropriations
under HEADING 5
of the multiannual financial framework

(Total commitments = Total payments)

EUR million (to three decimal places)

TOTAL appropriations
under HEADINGS 1 to 5
of the multiannual financial framework

3.2.2. Estimated impact on operational appropriations

– ◻ The proposal/initiative does not require the use of operational appropriations

– ◻ The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal places)

Indicate objectives and outputs

SPECIFIC OBJECTIVE No 1 20 .

Subtotal for specific objective No 1

3.2.3. Estimated impact on appropriations of an administrative nature

– ◻ The proposal/initiative does not require the use of appropriations of an administrative nature

– ◻ The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

Enter as many years as necessary to show the duration of the impact (see point 1.6)

HEADING 5
of the multiannual financial framework

Other administrative expenditure

Subtotal HEADING 5
of the multiannual financial framework

Outside HEADING 5 22
of the multiannual financial framework

Other expenditure
of an administrative nature

Subtotal
outside HEADING 5
of the multiannual financial framework

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.3.2. Estimated requirements of human resources

– X The proposal/initiative does not require the use of human resources.

– ◻ The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

Enter as many years as necessary to show the duration of the impact (see point 1.6)

• Establishment plan posts (officials and temporary staff)

XX 01 01 01 (Headquarters and Commission’s Representation Offices)

XX 01 01 02 (Delegations)

XX 01 05 01 (Indirect research)

10 01 05 01 (Direct research)

• External staff (in Full Time Equivalent unit: FTE) 23

XX 01 02 01 (AC, END, INT from the ‘global envelope’)

XX 01 02 02 (AC, AL, END, INT and JED in the delegations)

XX 01 05 02 (AC, END, INT - Indirect research)

10 01 05 02 (AC, END, INT - Direct research)

Other budget lines (specify)

XX is the policy area or budget title concerned.

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff

3.2.4. Compatibility with the current multiannual financial framework

– X The proposal/initiative is compatible the current multiannual financial framework.

– ◻ The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

This concerns the use of the reserve line (Chapter 40).

– ◻ The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.

3.2.5. Third-party contributions

– X The proposal/initiative does not provide for co-financing by third parties.

– ◻ The proposal/initiative provides for the co-financing estimated below:

Appropriations in EUR million (to three decimal places)

Enter as many years as necessary to show the duration of the impact (see point 1.6)

Specify the co-financing body

TOTAL appropriations co-financed

3.3. Estimated impact on revenue

– ◻ The proposal/initiative has no financial impact on revenue.

– ◻ The proposal/initiative has the following financial impact:

– ◻ on own resources

– ◻ on miscellaneous revenue

EUR million (to three decimal places)

Budget revenue line:

Appropriations available for the current financial year

Impact of the proposal/initiative 25

Enter as many years as necessary to show the duration of the impact (see point 1.6)

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the method for calculating the impact on revenue.

(1) https://www.consilium.europa.eu/en/documents-publications/treaties-agreements/agreement/?id=2007046&DocLanguage=en (2) OJ L 172, 30.6.2007 (3) OJ L 305, 21.11.2015, p. 1 (4) https://www.consilium.europa.eu/en/documents-publications/treaties-agreements/agreement/?id=2015055&DocLanguage=en (5) OJ L 354, 28.12.2013, p. 22. (6) 19 March 2012 Council conclusions on the Commission’s Communication on the External dimension of the common fisheries policy (7) In accordance with the Interinstitutional Agreement on cooperation in budgetary matters (2013/C 373/01). (8) OJ L . . p. . (9) ABM: activity-based management; ABB: activity-based budgeting. (10) As referred to in Article 54(2)(a) or (b) of the Financial Regulation. (11) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html (12) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. (13) EFTA: European Free Trade Association. (14) Candidate countries and, where applicable, potential candidate countries from the Western Balkans. (15) According to the official budget nomenclature. (16) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. (17) Year N is the year in which implementation of the proposal/initiative starts. (18) Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built). (19) As described in point 1.4.2. ‘Specific objective(s)…’ (20) Year N is the year in which implementation of the proposal/initiative starts. (21) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. (22) AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JED= Junior Experts in Delegations. (23) Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). (24) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.

EUROPEAN COMMISSION

COM(2021) 72 final

Proposal for a Council Decision

on the conclusion of a Sustainable Fisheries Partnership Agreement between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand and the Implementation Protocol thereto

SUSTAINABLE FISHERIES PARTNERSHIP AGREEMENT

between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand

THE EUROPEAN UNION,

(hereinafter referred to as ‘the Union’)

THE GOVERNMENT OF GREENLAND and GOVERNMENT OF DENMARK ,

hereinafter referred to as ‘Greenland’,

both hereinafter referred to as the ‘Parties’,

HAVING REGARD to the Protocol on the special arrangement applicable to Greenland,

RECOGNISING that the European Union and Greenland wish to strengthen the links between them and to establish a partnership and a cooperation which would support, complement and extend the relations and cooperation established between them in the past,

TAKING ACCOUNT of the recognition by the Council in February 2003 of the need to broaden and strengthen the future relations between the European Union and Greenland, taking into account the importance of fisheries and the need for structural and sector oriented reforms in Greenland based on a comprehensive partnership for sustainable development,

RECALLING the Council Decision of 25 November 2013 on the association of the overseas countries and territories with the European Union,

RECALLING the Council Decision of 14 March 2014 on relations between the European Union on the one hand and the Government of Greenland and the Kingdom of Denmark on the other hand,

TAKING ACCOUNT of the Joint Declaration of 19 March 2015 by the European Union on one hand and the Government of Greenland and the Government of Denmark on the other on relations between the European Union and Greenland,

STRESSING the importance of international cooperation in the Arctic to keep the Arctic a safe, secure, sustainable and prosperous region, building on the Ilulissat Declaration of 2008, reconfirmed in 2018,

WELCOMING the signing of the Agreement to prevent unregulated high seas fisheries in the Central Arctic Ocean on 3 October 2018 in Ilulissat, Greenland,

CONSIDERING the overall relationship between the Union and Greenland, and their mutual desire to continue that relationship,

NOTING that the Act on Greenland Self-Government entered into force on 21 June 2009 replacing the Act on Greenland Home Rule, changing the status of Greenland within the Kingdom of Denmark vesting the Government of Greenland with the authority to assume new fields of legislative and executive responsibilities;

NOTING that Greenland under the Self Government Arrangement exercises its jurisdiction in the Greenlandic Exclusive Economic Zone​.

HAVING REGARD TO the United Nations Convention on the Law of the Sea and the Agreement for implementation of the provisions of the United Nations Convention on the Law of the Sea relating to the conservation and management of straddling fish stocks and highly migratory fish stocks,

AWARE of the importance of the principles established by the Code of conduct for responsible fisheries adopted, at the Food and Agriculture Organisation (FAO) Conference in 1995 and of the FAO Port State Measures Agreement to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated (IUU) Fishing, and DETERMINED to take the necessary measures to implement them,

DETERMINED to cooperate, in their mutual interest, in securing continued sustainable fisheries to ensure the long-term conservation and sustainable exploitation of marine living resources,

CONVINCED that such cooperation must take the form of initiatives and measures which, whether taken jointly or separately, are complementary, consistent with policy and ensure synergy of effort,

INTENDING, to these ends, to continue a dialogue with a view to continue to improve the sectoral fisheries policy in Greenland and identifying the appropriate means of ensuring that this policy is effectively implemented,

DESIROUS of establishing terms and conditions governing the fishing activities of Union vessels in the Greenlandic Exclusive Economic Zone and Union support for securing continued sustainable fishing in those waters,

HEREBY AGREE AS FOLLOWS:

Article 1
Scope

This Agreement establishes the principles, rules and procedures governing:

– economic, financial, technical and scientific cooperation in the fisheries sector with the view to promote continued sustainable fishing in the Greenlandic Exclusive Economic Zone (hereinafter ‘the Greenlandic EEZ’), to achieve economic and social benefits, including the development of the Greenlandic fisheries sector,

– the conditions governing access by Union fishing vessels to the Greenlandic EEZ,

– the arrangements for regulating fisheries of Union vessels in the Greenlandic EEZ with a view to ensuring that the rules and conditions applicable to them are complied with, that the measures for the conservation and management of fish stocks are effective and that illegal, undeclared and unregulated fishing (hereinafter IUU) is prevented,

– partnerships between companies aimed at developing economic activities in the fisheries sector and related activities, in the common interest.

Article 2
Definitions

For the purposes of this Agreement, the Protocol and the Annex:

(a) ‘Greenland authorities’ means the Government of Greenland;

(b) ‘Union authorities’ means the European Commission;

(c) ‘Agreement’ means the Agreement, the Protocol and the Annex and Appendices thereto;

(d) ‘Union vessel’ means a fishing vessel flying the flag of a Member State of the Union and registered in the Union;

(e) ‘fishing vessel’ means any vessel equipped for commercial exploitation of marine living resources;

(f) ‘Fishing authorisation’ defined as ‘licence’ as per the Greenland legislation;

(g) ‘joint enterprise’ means any company regulated by Greenlandic law comprising one or more Union ship owners and one or more partners in Greenland, with the aim of fishing for and possibly exploiting Greenlandic fishing quotas in the Greenlandic EEZ by vessels flying the flag of Greenland with a view to the priority supply of the Union market;

(h) ‘temporary joint ventures’ means any association based on a contractual agreement of limited duration between Union ship owners and physical or legal persons in Greenland, with the aim of jointly fishing for and exploiting fishing quotas and sharing the cost, profits or losses of the economic activity jointly undertaken, with a view to the priority supply to the market of the European Union;

(i) ‘Joint Committee’ means a committee made up of representatives of the Union and Greenland whose functions are described in Article 12 of this Agreement;

(j) ‘sustainable fisheries’ means fishing in accordance with the objectives and principles enshrined in the Code of Conduct for Responsible Fisheries adopted at the 1995 Conference of the Food and Agriculture Organization of the United Nations (FAO).

Article 3
Principles and objectives underlying the implementation of this Agreement

1. The Parties hereby undertake to secure continued sustainable fishing in the Greenlandic EEZ in line with UNCLOS provisions based on the principle of non-discrimination between the different fleets fishing in the EEZ, and the principle of sustainable exploitation of the marine biological resources. Sustainable exploitation is based on the determination of the surplus by Greenland, taking into account the needs of the Greenland fishing industry, best available scientific advice and relevant information exchanged between the Parties concerning the total fishing effort and total catches on the relevant stocks by all fleets operating in the fishing area.

2. Greenland undertakes to offer preferential access to available surpluses to the Union’s fleet.

3. Greenlandic authorities undertake not to give more favourable conditions, than those accorded under this Agreement to other foreign fleets operating in the Greenlandic EEZ which have the same characteristics and target the same species as those covered by this Agreement and its implementing Protocol.

4. In the interest of transparency, both Parties agree to make public any agreement and the overall TAC as well as inform each other of fishing opportunities and their uptake, granted to foreign fleets.

5. The Parties shall take due account of the conservation and management measures adopted by relevant Regional Fisheries Management Organisations (RFMOs), also duly taking into account regional scientific assessments produced by relevant scientific bodies. To this end, both Parties cooperate notably in view of the sustainability of joint migratory stocks in the North Atlantic.

6. The Parties undertake to implement the Agreement in accordance with the European Convention for the Protection of Human Rights and Fundamental Freedoms, and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

7. In particular, the employment of seamen on board of Union vessels shall be governed by the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, which shall apply as of right to the corresponding contracts and general terms of employment, and relevant ILO Conventions and the laws of Greenland. This concerns in particular the freedom of association and the effective recognition of the right to collective bargaining, and the elimination of discrimination in respect of employment and occupation and living and working conditions on-board fishing vessels.

8. Greenland will continue the planning of a sectoral fisheries policy and manage its implementation through annual and multi annual programmes in the light of objectives identified by common accord between the Parties. The Parties shall to that end continue the policy dialogue on the planning of sectoral fisheries policy. The Parties hereby undertake to inform each other when further significant measures in this area are planned and adopted.

9. The Parties shall at the request of one of them cooperate also on carrying out evaluations, both jointly or unilaterally, of measures, programmes and actions implemented on the basis of this Agreement.

10. The Parties hereby undertake to ensure that this Agreement is implemented in accordance with the principles of transparency and good economic and social governance.

Article 4
Scientific cooperation

1. During the period covered by this Agreement, Greenland and the Union shall monitor the evolution of resources in the Greenlandic EEZ; an ad hoc joint scientific committee shall upon request from the Joint Committee make a report on the basis of any term of reference laid down by that Committee.

2. The Parties hereby undertake to consult each other, either directly or within the Regional Fisheries Management Organizations (RFMOs) and Regional Fisheries Organizations (RFOs) concerned, to ensure the management and conservation of living resources and to cooperate in the relevant scientific research.

Article 5
Exclusivity Clause and Access to the fisheries in the Greenlandic EEZ

1. Greenland hereby undertakes to authorise Union vessels to engage in fishing activities in its EEZ in accordance with this Agreement, including the Protocol and Annex thereto. The Greenland authorities shall grant to vessels designated by the Union licenses issued under the Protocol commensurate with the fishing opportunities granted in accordance with the Protocol.

2. The fishing opportunities granted to the Union by Greenland under the present Agreement may be taken by vessels flying the flag of and registered in Norway, Iceland and the Faroe Islands to the extent to which this is necessary for the proper functioning of the fisheries agreements concluded by the Union with those Parties. To this end, Greenland undertakes to authorise vessels flying the flag of, and registered in, Norway, Iceland and the Faroe Islands to engage in fishing activities in its EEZ.

3. Union vessels may engage in fishing activities in the EEZ covered by this Agreement only if they hold a fishing authorisation issued under this Agreement. All fishing activities not covered by this Agreement are prohibited. The authorities of Greenland shall issue fishing authorisations to Union vessels exclusively under this Agreement.

Article 6
Applicable law

1. The fishing activities governed by this Agreement shall be subject to the laws and regulations in force in Greenland. The authorities shall notify in advance and in due time of any amendments to that legislation.

2. Without prejudice to the responsibilities of Union vessels with regards to Union legislation , Greenland shall assume responsibility for the effective application of the fisheries monitoring, control and surveillance provisions in the Protocol. Union vessels shall cooperate with the competent authorities responsible for carrying out such monitoring, control and surveillance.

3. The Union hereby undertakes to ensure that all the appropriate steps are taken so that its vessels comply with this Agreement and the Greenlandic legislation governing fisheries in the Greenland EEZ.

Article 7
Fishing authorisations

1. Union vessels shall fish in the Greenlandic EEZ only if they are in possession of a valid fishing authorisation issued by Greenland under this Agreement.

2. The procedure for obtaining a fishing authorisation for a vessel, the fees applicable and the method of payment to be used by ship owners shall be as set out in the Annex to the Protocol.

3. The contracting parties shall ensure the proper implementation of these procedures and conditions by appropriate administrative cooperation between their competent authorities.

Article 8
Financial contribution

1. A financial contribution shall be made to Greenland in accordance with the terms and conditions laid down in the Protocol and Annex

2. This contribution shall be composed of three related elements, namely:

(a) a financial contribution from the Union for access by Union vessels to the Greenland fisheries;

(b) financial support from the Union for securing continued responsible fishing and the sustainable exploitation of fisheries resources in the Greenlandic EEZ and the development and implementation of Greenlandic sectoral fisheries policy;

(c) authorisation fees for access borne by the vessel ship-owners fishing on EU quotas.

3. The component of the financial contribution referred to in point (b) of paragraph 2 shall be independent of the payments regarding access costs and shall be managed by the Greenland authorities in the light of objectives identified by mutual consent between the Parties in accordance with the Protocol, to be achieved in the context of the Greenland Fisheries Policy and an annual and multiannual programme for its implementation.

4. The financial contribution granted by the Union shall be paid annually in accordance with the Protocol and subject to this Agreement. The financial contribution may be revised, by the Joint Committee, subject to this Agreement and the Protocol - as a result of:

(a) exceptional circumstances, other than natural phenomena, preventing fishing activities in the Greenlandic EEZ;

(b) a reduction in the fishing opportunities granted to Union vessels following mutual agreement between the Parties within the Joint Committee for the purposes of sustainable management of the stocks concerned, where this is considered necessary for the conservation and sustainable exploitation of resources on the basis of the best available scientific advice;

(c) where, as a result of this Agreement, the Union has preferential access to additional fishing opportunities beyond those set out in the Protocol to the present Agreement, following the mutual agreement between the Parties within the Joint Committee where the best available scientific advice indicates that the state of resources so permits;

(d) a reassessment of the terms of Union financial support for implementing the Greenland Fisheries Policy, where this is warranted by the reported results of the annual and multiannual programming observed by both Parties;

(e) suspension of the application of this Agreement under Article 16.

Article 9
Promoting cooperation

1. The Parties shall encourage economic, commercial, scientific, control and enforcement, training and technical cooperation in the fisheries sector and related sectors. They shall consult one another with a view to coordinating the different measures that might be taken to this end.

2. The Parties shall encourage exchanges of information on fishing techniques and gear, preservation methods and the industrial processing of fisheries products.

3. The Parties shall encourage, in particular, the setting-up of temporary joint ventures and joint enterprises in their mutual interest and in accordance with their legislation.

Article 10
Cooperation in the area of monitoring, control and surveillance and in the fight against illegal, unreported and unregulated (IUU) fishing

1. The Parties undertake to cooperate in the fight against IUU fishing activities with a view to the implementation of responsible and sustainable fishing.

2. Based on consultation within the Joint Committee, the Parties may agree to cooperate and carry out risk-based joint inspection programmes on Union vessels, as to strengthen the application of the fisheries monitoring, control and surveillance provisions in the Protocol and related corrective measures.

Article 11
Experimental fisheries

The Parties shall promote the conduct of experimental fisheries in the Greenlandic EEZ. The Parties shall implement together the experimental fishery in accordance with the procedures set out in the Protocol and its Annex.

Article 12
Joint Committee

1. A Joint Committee shall be set up to serve as a forum for the Parties for the monitoring of the application of this Agreement and ensuring its implementation.

2. The Joint Committee shall perform the following functions:

(f) monitoring and reporting on the performance, interpretation and application of the Agreement and, in particular, the definition of the annual and multiannual programming referred to in Article 8(3) and evaluation of its implementation;

(g) providing the necessary liaison for matters of mutual interest relating to fisheries;

(h) acting as a forum for reconciliation and the amicable settlement of any disputes regarding the interpretation or application of the Agreement;

(i) reviewing and negotiating, where necessary, the level of existing and new fishing opportunities for relevant stocks in the Greenlandic EEZ based on the best available scientific advice, the precautionary approach and the needs of the Greenlandic fishing industry and, consequently the fishing opportunities available to the Union and where appropriate of the financial contribution referred to in the Protocol;

(j) monitoring the applications to establish temporary joint ventures and joint enterprises under the terms of this Agreement and in particular assessing the projects presented by the Parties for the establishment of temporary joint ventures and joint enterprises in accordance with the criteria set out in the Annex to the protocol of this Agreement and reviewing the activities of vessels belonging to temporary joint ventures and joint enterprises;

(k) determining, on a case-by-case basis, relevant species, conditions and other parameters relating to experimental fishery;

(l) agreeing on administrative measures concerning access of Union fishing vessels to the Greenlandic EEZ and resources including licenses, movement of Union fishing vessels and catch reporting;

(m) agreeing on the modalities for the implementation of the Union's financial support for securing continued responsible fishing and the sustainable exploitation of fisheries resources in the Greenlandic EEZ;

(n) assessing the terms of Union financial support for implementing a Greenland Fisheries Policy, where this is warranted by the results of the annual and multiannual programming observed by both Parties, and revising the contribution according to 8.4.;

(o) any other function which the Parties decide on by mutual agreement.

3. The Joint Committee shall meet at least once a year, alternately in the Union and in Greenland, and shall be chaired by the Party hosting the meeting. It shall hold an extraordinary meeting at the request of either of the Parties.

4. The Joint Committee shall adopt its own rules of procedure.

5. The Joint Committee shall exercise its functions in accordance with the objectives of this Agreement.

6. The Joint Committee shall call for an ad-hoc joint scientific committee if necessary, on the basis of the term of reference laid down by the Committee.

7. The conclusions of the meeting of the Joint Committee shall be recorded and co-signed by both Parties.

8. The Joint Committee may take decisions by written proceedings as required.

Article 13
Geographical area to which the Agreement applies

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Union applies, under the conditions laid down in that Treaty and, on the other, to the territory of Greenland and to the Greenlandic EEZ.

Article 14
Duration

This Agreement shall apply for six years from the date of its provisional application; it shall be tacitly renewed for additional periods of six years, unless a written notice of termination is given at least six months before the date of expiry.

Article 15
Provisional Application

The Agreement shall apply provisionally as from the date of its signature by the Parties.

Article 16
Suspension

1. Application of this Agreement may be suspended at the initiative of either of the Parties under one or more of the following circumstances:

(p) (a) where situations, other than natural phenomena, arise which are beyond the reasonable control of the Parties and are such as to prevent fishing activities in Greenlandic EEZ; or

(q) (b) where, as result of significant changes in the policy guidelines which led to the conclusion of this Agreement are enacted, either one of the Parties requests a review of the provisions with a view to a possible amendment thereof; or

(r) (c) where an unresolved serious dispute has arisen within the fisheries sector between the Parties and /or relating to the interpretation or application of the agreement; or

(s) (d) where either one of the Parties ascertains a breach of fundamental rights as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

This subparagraph shall not apply if the breach occurs in any area of responsibility or field of competence in which the Government of Greenland, as a result of the status of Greenland as a self-governing part of the Kingdom of Denmark, does not hold formal responsibilities or does not have formal competences.

2. Suspension of the application of the Agreement shall be notified by either Party to the other Party in writing and, except in cases of special urgency, shall take effect three months after receipt of such notification, unless the Parties agree to another explicitly mentioned time frame. The receipt of this notification shall open consultations between the Parties in the Joint Committee with a view to finding an amicable solution to the dispute within three months.

3. Once such settlement is reached, the application of the Agreement shall resume and the amount of the financial contribution referred to in Article 8 shall, unless otherwise agreed, be reduced proportionately and pro rata temporis according to the period during which the application of the Agreement was suspended.

Article 17
Termination

1. This Agreement may be terminated by either Party in the event of:

(t) where situations, other than natural phenomena, arise which are beyond the reasonable control of the Parties and are such as to prevent fishing in the EEZ;

(u) a depletion or degradation of the stocks concerned on the basis of best available scientific advice;

(v) a significant reduction in the level of exploitation of the fishing opportunities granted to Union vessels;

(w) a serious violation of the commitments made by the Parties with regard to combating IUU fishing;

(x) any other circumstances which amounts to violation of the Agreement by one of Parties.

2. Termination of the Agreement shall be notified in writing by either Party to the other Party and shall take effect six months after receipt of notification, unless the Parties decide by mutual consent to extend this period. The Parties shall through the Joint Committee enter into consultations after such notification of termination with a view to finding an amicable settlement, with regards to the reason for ending the agreement.

In the event of termination, payment of the amount of the financial contribution referred to in Article 8 for the year in which the termination takes effect shall be reduced proportionately and pro rata temporis .

Article 18
Protocol and Annex

The Protocol and the Annex and the appendices thereto shall form an integral part of this Agreement.

Article 19
Repeal

The Fisheries Partnership Agreement of 30 June 2007 between the European Community on the one hand, and the Government of Denmark and the Home Rule Government of Greenland, on the other hand is hereby repealed.

Article 20
Entry into force

This Agreement shall enter into force when the Parties have notified each other of the completion of the necessary procedures for that purpose.

Article 21
Authentic text

This Agreement is drawn up in duplicate in the Bulgarian, Czech, Croatian, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish languages, each of these texts being equally authentic.

Implementing the Sustainable Fisheries Partnership Agreement between the European Union on the one hand, and the Government of Greenland and the Government of Denmark, on the other hand

The objective of this Protocol is to implement the provisions of the Sustainable Fisheries Partnership Agreement between the European Union (the Union) and the Government of Greenland (Greenland) and the Government of Denmark (Denmark). This Protocol includes an Annex and Appendices.

Indicative fishing opportunities and process to fix their annual level

1. The Greenlandic competent authorities authorise Union fishing vessels to engage in fishing activities for the species and respective management areas listed below according to the following annual indicative level (in tonnes):

Species and respective management areas in the Greenlandic EEZ outside 12 nautical miles from the baseline

Cod in ICES Subareas II, V, XII, XIV and in NAFO 1F

Pelagic redfish (REB) in ICES Subareas XII, XIV and in NAFO 1F, unless fished under the pelagic redfish flexibility scheme Appendix 5 to the Annex

Demersal redfish (RED) 2 in ICES Subareas II, V, XII, XIV

Greenland Halibut in NAFO Subarea 1 — South of 68° North

Greenland Halibut in ICES Subareas II, V, XII & XIV 3

Northern Prawn in NAFO Subarea 1

Northern Prawn in ICES Subareas II, V, XII, XIV

Capelin in ICES Subareas II, V, XII, XIV 4

Mackerel in ICES Subareas II, V, XII, XIV 5

Grenadier spp. in ICES Subareas II, V, XII, XIV 6

Grenadier spp. in NAFO Subarea 1

2. For each year of the duration of the Protocol and no later than 1 December of the previous year, the Joint Committee shall adopt the actual level of the fishing opportunities for the species listed above, based on the indicative level set out in paragraph 1 and taking into account available scientific advice, relevant management plans adopted by the Government of Greenland or Regional Fisheries Management Organisations, the precautionary approach and the needs of the Greenlandic fishing industry.

(a) If the actual fishing opportunities for some species are lower than those indicated in paragraph 1, the Joint Committee may compensate with other fishing opportunities in the same year. If no compensation is agreed, the Joint Committee shall adjust the financial contribution referred to in point (a) of Article 3(2) proportionately with the fishing opportunities relative to the indicative fishing opportunities in Article 2(1).

(b) If the actual fishing opportunities are higher than those indicated in paragraph 1, the Joint Committee shall adjust the financial contribution referred to in point (a) of Article 3(2) proportionately.

3. Beyond the annual process as described in paragraph 2, in accordance with Article 2(2), additional fishing opportunities for the species listed in paragraph 1 may be offered by Greenland and accepted in whole or in part by the Union. In such circumstances, the Joint Committee shall review the additional fishing opportunities and adjust the financial contribution referred to in point (a) of Article 3(2) proportionately. The Union competent authorities shall provide Greenland with a response no later than six weeks after receipt of the offer.

4. Management of the by-catch

Union fishing vessels operating in the Greenlandic EEZ shall abide by the applicable rules on by-catch, both for regulated and non-regulated species and on a discard ban.

By-catches are defined as catches of all marine living organisms where these are not mentioned as target species on the fishing authorisation of the vessel or do not meet the minimum size requirements.

By-catch is limited to a rate of 5 % in the Northern prawn fisheries and 10 % in other fisheries.

No specific fishing authorisation is granted for by-catches.

All catches, including by-catches and discards must be recorded and reported by species according to applicable Greenlandic Legislation.

No specific fishing authorisation fee shall be paid for by-catches, considering that fees laid down in the Annex to the Protocol for target species have been fixed taking into account rules on authorised by-catches.

(d) In addition and without prejudice to the by-catch rates and rules mentioned under points (a) to (c) above, Union vessels shall implement fishing strategies to ensure by-catches of redfish and cod in Greenland halibut directed fisheries, by-catches of redfish and Greenland halibut in cod directed fisheries and by-catches of cod and Greenland halibut in redfish directed fisheries do not exceed 5 % of the authorised catches for the targeted species by trip. A trip is the period between an entry into and an exit from the Greenlandic EEZ. In case a vessel is fully unloaded in a Greenlandic port, subsequent catches are treated as a new trip.

Financial contribution — Methods of payment

1. For the period referred to in Article 13 of this Protocol, the financial contribution of the Union referred to in Article 8 of the Agreement shall be EUR 16 521 754 per year.

2. This financial contribution shall comprise:

an annual amount for the access to the Greenlandic EEZ of EUR 13 590 754 subject to Article 2(2) and (3), and Article 7;

a specific amount of EUR 2 931 000 per year for the support and implementation of Greenlandic sectoral fisheries policy.

3. The total amount of the financial contribution paid by the Union shall not be more than twice the amount indicated in point (a) of Article 3(2).

4. The Union shall pay the amount as set out in point (a) of paragraph 2 no later than 30 June in the first year and no later than 1 March in the following years. The Union shall pay the specific amount as set out in point (b) of paragraph 2 no later than 30 June in the first year and no later than 1 June in the following years.

5. The Greenlandic authorities shall have full discretion regarding the use of the financial contribution as specified in point (a) of paragraph 2.

6. The financial contribution shall be paid into a Public Treasury account opened with a financial institution specified by the Greenlandic authorities.

1. The financial contribution for sectoral support as set out in point (b) of Article 3(2) shall be separate from the payments for access costs. It shall be determined by and conditional on the achievements of Greenlandic sectoral fisheries policy objectives, identified by the Joint Committee, and in the light of the annual and multiannual programming to attain them.

2. As soon as this Protocol starts to apply and no later than three months after that date, the Joint Committee shall agree on a multiannual sectoral programme and detailed implementing rules covering, in particular:

annual and multiannual guidelines for using the part of the financial contribution referred to in point (b) of Article 3(2) for the initiatives to be carried out each year;

the objectives, both annual and multiannual, to be achieved with a view to securing a continuation, over time, of responsible fishing and sustainable fisheries, based on the priorities of Greenland’s national fisheries policy and other policies relating to or having an impact on the continuation of responsible fishing and sustainable fisheries;

criteria and procedures for evaluating the results obtained each year.

3. Any proposed amendments to the multiannual sectoral programme must be agreed to by the Joint Committee.

4. The financial contribution for sectoral support shall be paid based on a detailed analysis of the outcomes of the sectoral support and of the needs identified during the programming. The Union may suspend, partially or totally, payment of this specific financial contribution:

if the results obtained are inconsistent with the programming, following an evaluation carried out by the Joint Committee;

in the event of failure to implement this financial contribution in line with the agreed programming.

Suspension of the payment shall require the Union to notify its intention in writing at least three months before the date on which suspension is due to take effect.

Payment of the financial contribution shall resume after consultation and agreement by the Parties, and/or if the results of the financial implementation referred to in paragraph 5 so warrant.

(c) in the case where the protocol is suspended according to Article 8 the amount of the financial contribution shall be reduced proportionately and pro rata temporis according to the period during which the application of the Protocol was suspended.

5. The Joint Committee is responsible for the follow up of the implementation of the multiannual sectoral support programme. If necessary, both Parties shall continue this follow up through the Joint Committee, after the expiry of the Protocol until the specific financial counterpart related to sectoral support foreseen in point (b) of Article 3(2) has been fully utilised.

Both Parties undertake to promote cooperation as regards responsible fishing, including at a regional level, in particular within NEAFC and NAFO and any other sub-regional or international body concerned. The Joint Committee may consider how to ensure the sustainable exploitation of the fishery resources, in compliance with relevant conservation and management measures.

Parties will cooperate including in the framework of Article 4 to implement sustainable experimental fisheries for species and stocks not included in Article 2(1) through the process outlined in Chapter VI of the Annex and without consequence for the Union's financial contribution as set out in point (a) of Article 3(2).

New fishing opportunities

1. New fishing opportunities are fishing opportunities for species and respective management areas to be included in Article 2(1), subject to a proportional increase in the part of the financial contribution referred to in point (a) of Article 3(2).

2. When an interest is expressed by either Party in including a new fishing opportunity in Article 2(1), it shall be considered by the Joint Committee based on Greenlandic Laws and Regulations, the best available scientific advice, the need of the Greenland fishing industry, and the precautionary approach. New fishing opportunities will thereafter be subject to the process in Article 2(2) and (3). The Joint Committee shall also fix the reference price for the new species and the authorisation fees to apply until this Protocol expires.

Suspension of the Protocol and review of the financial contribution

1. The application of this Protocol, including payment of the financial contribution, may be suspended, or reviewed as for the financial contribution, at the initiative of either of the Parties under one or more of the following circumstances:

where situations, other than natural phenomena, arise which are beyond the reasonable control of the Parties and are such as to prevent fishing activities in Greenlandic EEZ; or

where, as result of significant changes in the policy guidelines which led to the conclusion of this Protocol are enacted, either one of the Parties requests a review of the provisions with a view to a possible amendment thereof; or

where an unresolved serious dispute has arisen within the fisheries sector between the Parties and/or relating to the interpretation or application of the agreement; or

where either one of the Parties ascertains a breach of fundamental rights as guaranteed by the European Convention for the Protection of Human Rights and Fundamental Freedoms and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

This subparagraph shall not apply if the breach occurs in any area of responsibility or field of competence in which the Government of Greenland, as a result of the status of Greenland as a self-governing part of the Kingdom of Denmark, does not hold formal responsibilities or does not have formal competences.

2. The Union may suspend the payment of the financial contribution for sectoral support provided for in point (b) of Article 3(2) in accordance with Article 4(4) thereof.

3. Suspension of the application of this Protocol, including payment of the financial contribution, shall require the Party concerned to notify its intention in writing, except in cases of special urgency, at least three months before the date on which suspension is due to take effect.

4. Application of this Protocol, including payment of the financial contribution, shall resume once the situation has been remedied following actions to mitigate the above-mentioned circumstances and following consultation and agreement between the Parties. The amount of the financial contribution shall be reduced proportionately and pro rata temporis according to the period during which the application of the Protocol was suspended.

Following termination under the conditions laid out in Article 17(1) and (2) of the Agreement, payment of the financial contribution referred to in Article 3(2) of this Protocol for the year in which the termination takes effect shall be reduced proportionately and pro rata temporis .

National Laws and Regulations

1. The activities of Union fishing vessels when operating in Greenlandic EEZ shall be governed by the applicable Laws and Regulations in Greenland and the Kingdom of Denmark without prejudice to the responsibilities of EU fishing vessels with regards to EU legislation, unless otherwise provided for under the Agreement, Protocol, and the Annex hereto.

2. Greenland shall inform the Union of any changes or new legislation which is relevant to foreign vessels fishing in the Greenlandic EEZ in due time before the entry into force of such changes or new legislation. Greenland will endeavor, whenever possible, to give notice of changes in legislation at least 3 months prior to implementation.

1. Greenland and the Union undertake to ensure that all personal data related to Union fishing vessels and their fishing activities obtained in the framework of the Agreement, the Protocol and the Annex thereto shall be treated at all times in accordance with the confidentiality and data protection principles, including those provided by this Article.

2. Personal data or data, which may be considered as otherwise confidential shall be used exclusively for the implementation of the Agreement and the Protocol. The Parties may use VMS data in emergency situations for search and rescue or for the purpose of maritime safety. Personal data will not be kept longer than necessary for the purpose of which it has been transferred.

3. Personal data relating to Union fishing vessels will not be made public. Personal data will be processed in an appropriate manner to ensure its security, including protection against unauthorised or unlawful processing.

This Protocol shall be applied provisionally as from the date of its signature by the Parties.

This Protocol and the Annex thereto shall apply for a period of four years from the date of the start of its provisional application. However, if agreed by both Parties the Protocol shall be extended for an additional period of two years.

Entry into force

This Protocol and the Annex thereto shall enter into force on the date on which the Parties notify each other of the completion of the procedures necessary for that purpose.

CONDITIONS GOVERNING FISHING ACTIVITIES BY EU VESSELS UNDER THE PROTOCOL IMPLEMENTING THE SUSTAINABLE FISHERIES PARTNERSHIP AGREEMENT BETWEEN THE EUROPEAN UNION, ON THE ONE HAND, AND THE GOVERNMENT OF GREENLAND AND THE GOVERNMENT OF DENMARK, ON THE OTHER

1. Designation of competent authority

For the purposes of this Annex and unless otherwise specified, competent authority means:

for the Union: European Commission

for Greenland: Ministry of Fisheries, Hunting and Agriculture

2. Fishing authorisation means a license issued in respect of an EU fishing vessel entitling it to carry out specific fishing activities during a specific period, in the Greenland Exclusive Economic Zone as identified in paragraph 3.

3.1. The fishery shall take place within the EEZ as provided for in the Regulation No 1020 of 20 October 2004 in accordance with Royal Decree No 1005 of 15 October 2004 on the Entry Into Force of Act on Exclusive Economic Zones for Greenland entering into force Act No 411 of 22 May 1996 on Exclusive Economic Zones.

3.2. The fishery shall take place at least 12 nautical miles off the baseline according to § 7 Section 2 of Act No 18 of 31 October 1996 on Fisheries issued by the Landsting of Greenland as most recently amended by the Inatsisartut Act No 28 of 28. November 2016 unless specifically provided otherwise.

3.3. The baseline is defined in accordance with Royal Decree No 1004 of 15 October 2004 on Amendment of Royal Degree on Delimitation of the territorial Waters of Greenland.

APPLICATION FOR AND ISSUE OF FISHING AUTHORISATIONS

1. Conditions for obtaining fishing authorisations

1.1. A fishing authorisation referred to in Article 2 of the Agreement may only be granted to vessel(s) owners of Union fishing vessels that are on the EU register of fishing vessels. In order to fish under the pelagic redfish flexibility scheme, vessels must also be notified to NEAFC in accordance with its rules. Moreover, they shall not be on any Regional Fisheries Management Organisation (RFMO) IUU vessels list.

1.2. For a vessel to be eligible, neither the owner, the master nor the vessel itself shall be prohibited from fishing in the Greenlandic fishing zone. They shall have fulfilled prior obligations arising under the Agreement.

2. Application for fishing authorisations

2.1. Applications and fishing authorisations shall be communicated in the following manner until such time as an Electronic Licence System is jointly implemented by both Parties.

2.2. The EU competent authority shall submit by electronic means to the Greenlandic competent authority the (collective) application for (a) fishing authorisation(s) of (a) vessel(s) seeking to fish under the Agreement. Application shall be made on the form provided in Appendix 1. EU vessels of the same ship owner or agent may submit a collective application for a fishing authorisation provided that these vessels fly the flag of one and the same Member State.

2.3. Each fishing authorisation application shall be accompanied by proof of payment of the fee for the species and quantities requested in line with the provisions of paragraph 7 of this Chapter.

2.4. Should the Greenlandic competent authority consider an application incomplete or otherwise not satisfying the conditions under paragraphs 1, 2.2 and 2.3 the EU competent authority shall be notified of the reasons as soon as possible, and in any case within 7 working days of receipt of the application by Greenland.

3. Issuing of fishing authorisations

3.1. The Greenlandic competent authority shall transmit the fishing authorisation by electronic means to the EU competent authority within 10 working days of submission of the application. This electronically transmitted fishing authorisation shall have the same value as the original for the purposes of the Protocol and the Annex thereto.

3.2. Each fishing authorisation shall indicate the authorised quantity to be caught. A fishing authorisation issued under a collective application shall indicate the total quantity of the species for which the fishing authorisation fee has been paid

3.3. The fishing authorisation or a copy shall be held on board at all times and be presented on request of the competent Greenlandic authority.

3.4 A fishing authorisation shall be issued to one fishing vessel owner, and must indicate which fishing vessels are allowed to fish under that authorisation. Fishing authorisations shall not be transferable.

3.5. A vessel may only operate on the authorisation(s) of one fishing vessel owner on any fishing trip.

4. Amendment of fishing authorisations

4.1. An amendment of any of the authorised quantities indicated in the fishing authorisation(s) shall be subject to a new application.

4.2. Without prejudice to paragraph 4.3, in case the amendment of the fishing authorisation concerns quantities caught in excess of an already authorised quantity, the vessel owner shall pay a fee equivalent to three times the amount provided for in paragraph 7.1, for the quantity in excess of the authorised quantity. No new fishing authorisation shall be issued to that vessel as long as the fees corresponding to the exceeded quantities are not paid.

4.3. In exceptional cases where the EU fishing opportunities for the relevant species have not been used up, and for the sole purpose of avoiding interruption of fishing activities of an EU vessel fishing in the Greenlandic EEZ on a fishing authorisation under the Protocol, if the authorised quantity is likely to be exceeded by that vessel the flag State shall immediately notify the Greenlandic competent authority, with a copy to the EU competent authority, of the intention to submit a formal application for a new fishing authorisation for additional quantities of the same species. The vessel shall be allowed to continue fishing provided that a proof of payment of the relevant fees is made available by the shipowner to the Greenlandic competent authority within 24 hours of the notification by the flag State and provided that the corresponding application for a new fishing authorisation is forwarded to the Greenlandic competent authority within 5 working days of the flag State notification in accordance with the procedure under paragraph 2. Failure to comply with these provisions shall submit the vessel to the procedure under paragraph 4.2.

4.4. In a limited number of cases, at the request of the EU competent authority, a vessel's fishing authorisation(s) may be replaced by a new fishing authorisation(s) for another EU vessel. The replacement shall take place on the basis of an application submitted through the EU competent authority. The new fishing authorisation(s) shall indicate the authorised quantity to be caught corresponding to the quantity of the species for which fishing authorisation fees have already been paid less any catch already taken by the first vessel.

4.5. A replaced fishing authorisation shall cease to be in effect on the day on which the new authorisation is issued by the Greenlandic competent authority.

5. Period of validity of fishing authorisations

5.1. Fishing authorisations shall be valid from the date of issue to the end of the calendar year in which the fishing authorisation has been issued.

5.2. As far as the capelin fishery is concerned, fishing authorisations shall be issued according to the dates agreed by the Coastal States in their framework arrangements and in line with the provisions of Article 2(2) and 2(3).

5.3. In case EU legislation fixing the fishing opportunities for a given year for EU vessels, in waters where catch limitations are required, has not been adopted by the beginning of the fishing year EU fishing vessels authorised to fish on 31 December in the previous fishing year may receive authorisation in the year for which legislation has not been adopted provided that scientific advice allows for this. A provisional use of 1/12th of the quota indicated in the fishing authorisation of the previous year, per month, will be allowed provided that the applicable fishing authorisation fee is paid for the quota. The provisional quota may be adjusted in relation to the scientific advice and the conditions of the specific fishery.

5.4. The unused quantity of a fishing authorisation for Northern Prawn may be transferred, on request of the EU competent authority, at 31 December of a given year, to the following year to a maximum of 5 % of the total quantity allocated to the fishing authorisation for the given year, if scientific advice allows for that transfer. This amount does not include any transfers from the previous year. The quantity transferred shall be used by 30 April of the following year. Unused transferred quantities will be transferred back to the previous year as unutilised fishing quantity after 30 April.

6. Suspension and reinstatement of fishing authorisations

Greenland may suspend fishing authorisations provided for in the Annex where:

a) a specific vessel is in serious violation of Greenlandic Laws and Regulations; or

b) a court order issued in relation to a violation of a specific vessel has not been respected by the shipowner. Once the court order has been respected, the fishing authorisation for the vessel shall be reinstated for the remaining period of the fishing authorisation.

7. Fishing authorisation fee, payment and refund

7.1. The fishing authorisation fees to be paid by EU vessels are as follows:

EUR per tonne 2021/2022

EUR per tonne 2023/2024