The ease of doing business varies substantially among cities within Croatia and the Czech Republic, while the implementation of business regulations is more consistent across cities in Portugal and Slovakia, finds a new World Bank report.
Released today, Doing Business in the European Union 2018: Croatia, the Czech Republic, Portugal and Slovakia covers 25 cities in the four countries.
It finds that Prague is the only capital city which out-performs other cities in the Czech Republic. Bratislava, Lisbon and Zagreb, on the other hand, lag behind most of the smaller cities within their own country.
The report analyzes business regulations affecting domestic small and medium sized firms in five Doing Business areas: Starting a Business, Dealing with Construction Permits, Getting Electricity, Registering Property, and Enforcing Contracts.
The 25 cities covered are: Osijek, Rijeka, Split, Varazdin, and Zagreb in Croatia; Brno, Liberec, Olomouc, Ostrava, Plzen, Prague, and Usti nad Labem in the Czech Republic; Braga, Coimbra, Evora, Faro, Funchal, Lisbon, Ponta Delgada, and Porto in Portugal; and Bratislava, Kosice, Presov, Trnava, and Zilina in Slovakia.
“The unevenness in performance among cities in each country shows that the regulatory reform agenda remains incomplete and suggests opportunity for improvement,” saidRita Ramalho, Senior Manager of the Global Indicators Group at the World Bank. “We hope this report will draw the attention of policy makers in the four countries and serve as a roadmap for reform at the subnational level.”
Key findings include:
In Croatia, entrepreneurs in the smaller cities of Varazdin and Osijek face less hurdles than their counterparts in the three larger cities covered by the report. And, regulatory reforms to improve the ease of doing business over the years have led to inconsistencies in how regulation is implemented at the local level. As a result, Starting a Business is easier in Split; Dealing with Construction Permits and Getting Electricity in Varazdin; while Osijek stands out for its performance in the areas of Registering Property and Enforcing Contracts.
Among the seven cities benchmarked in the Czech Republic, it is the country’s three largest—Prague, Brno and Ostrava—where doing business is easier across the five areas measured. Prague ranks first in two areas (Getting Electricity and Enforcing Contracts), while Brno ranks first in Dealing with Construction Permits and Ostrava in Registering Property—demonstrating the potential for large cities to achieve regulatory efficiency and quality by capitalizing on economies of scale and investing in administrative modernization.
In Portugal, the eight cities benchmarked show the most homogeneous performance, suggesting relatively consistent implementation of regulations across the country. Nevertheless, Porto ranks first in Dealing with Construction Permits but close to the bottom in Registering Property and Enforcing Contracts. Coimbra leads in Getting Electricity and Enforcing Contracts, but lags behind in Dealing with Construction Permits. Faro, along with Funchal and Ponta Delgada, tops the ranking in Registering Property, but ranks last in Getting Electricity.
Smaller cities in Slovakia are more business-friendly as they vie to compete with the capital. Except for Bratislava, each of the five cities benchmarked in Slovakia ranks at the top in at least one area: Starting a Business is easier in Presov and Zilina, construction permitting is more efficient in Presov and Getting Electricity in Zilina. Trnava stands out for its performance in Registering Property and Kosice outperforms its peers in Enforcing Contracts.
Overall, the report finds that the most marked differences in performance within each country are in areas where local authorities have the most autonomy in developing and implementing regulations, such as construction permitting, getting electricity and contract enforcement.
In the areas of Starting a Business and Dealing with Construction Permits, most cities benchmarked have processes that are more complex than the average amongst European Union member states.
Reform-minded officials can make tangible improvements by replicating good practices in other cities in their country. If the capital cities adopted all the good practices found at the subnational level, all four countries would move substantially closer to the global frontier of regulatory best practices. For Croatia, this could mean an improvement of 11 places in the Doing Business global ranking, while Slovakia could improve its rank by nine places.
“The European Commission has been working closely with national and regional authorities, in the context of Cohesion Policy, to set the right conditions for growth and job creation. This report shows how to make the life of businesses and entrepreneurs easier. The future Cohesion Policy for 2021-2027 will continue supporting those reforms that make our regions attractive places to work and invest in,” said Corina Crețu, European Union Commissioner for Regional Policy.
Doing Business in the European Union is a series of subnational reports being produced by the World Bank Group at the request of and funded by the European Commission. A first edition, covering 22 cities in Bulgaria, Hungary and Romania, was released in 2017.
The work on Croatia, the Czech Republic, Portugal and Slovakia is based on the same methodology as the global Doing Business report published annually by the World Bank Group.
Financing Options Key to Africa’s Transition to Sustainable Energy
A new whitepaper outlining the key considerations in setting the course for Africa’s energy future was released today at the 2021 Sustainable Development Impact Summit. The report, “Financing the Future of Energy,” outlines Africa’s electricity landscape and financing options in context with the global drive to reduce carbon emissions.
Africa’s power sector will play a central role in the transition from fossil fuel-driven power generation to a renewable-strong energy mix. According to the whitepaper written in collaboration with Deloitte, the migration to a multi-stakeholder-oriented net-zero power grid is being driven by “the 3Ds:”
- Decarbonization: moving from fossil fuel sources to renewables
- Decentralization: Shifting from centrally managed generation, transmission, and distribution to decentralized systems
- Digitalization: Leveraging digital technology to advance the transition
The report contends that new coalitions and investments with developed nations and NGOs including the World Economic Forum must coordinate and enable countries to leapfrog existing technologies and infrastructure.
“The need for digitally smarter utility platforms and sustainable development programs will guide global leaders in helping to shape equitable and inclusive recovery programs,” said Chido Munyati, Head of Africa at the World Economic Forum. “The entire continent remains vulnerable, but this whitepaper offers a view on what are viable financing options that exist today for clean energy sustainability and equitable recovery for all of Africa.
Funding will be the biggest hurdle to ensuring Africa’s sustainable transition to Renewables at scale; there are many financing solutions available,” said Mario Fernandes, Director, Africa Power Utilities and Renewables, Deloitte. “Africa’s winners will be the ones that are able to leverage what exists while creating an enabling environment for the private sector through a Renewables Energy Investment facility.”
Case studies in China and India showed that financing solutions for a clean energy transition often involve long cycles. Economic booms in these countries resulted in a significant shift in carbon emissions. Since similar economic booms are expected across Africa, the report highlights how crucial it is to anchor growth in technologies that can enable lower emissions.
While Africa’s contribution to greenhouse gas emissions from fossil fuel significantly lags behind those of other continents, it still carries a huge potential to accelerate the transition to a net-zero future. Currently, half of the continent lives without adequate access to electricity. As energy demands increase, the energy gap could be bridged through clean energy alternatives, if the financing solutions are employed now.
Action on Trade is Necessary for Businesses to Unlock Net Zero Targets
For businesses to reach their emission targets, the global trading system needs to adapt, and businesses are calling for the change.
These are the main findings of the Delivering a Climate Trade Agenda: Industry Insights Report released today by the World Economic Forum, in collaboration with Clifford Chance.
The six-month study is based on research and interviews with global companies, across sectors including transport, energy, manufacturing, and consumer goods. The objective of the research process was to identify necessary changes to the current global trade system and how to better incentivize and accelerate decarbonization. The resulting study outlines eight key actions that, if taken by governments and businesses, could make global trade a better enabler of climate action.
Sean Doherty, Head of International Trade and Investment said: “Traditionally, trade and climate policy-making has happened in separate silos. The urgency of the climate crisis calls for us to break down these silos through public-private cooperation in order to accelerate emissions reductions while achieving prosperity for all. The good news for policy makers is businesses are ready and willing to support this change.”
Jessica Gladstone, Partner at Clifford Chance said: “International trade will play a key role in achieving a just transition to a low-carbon sustainable global economy. Businesses stand ready to lead in this transition, but governments can support by ensuring the right legislative and regulatory structures are in place. Our report explores global and domestic policy actions that can create climate-friendly trade that is fair, transparent, and has technology and innovation at its core.”
Interviews revealed the following ways for trade to support businesses to decarbonize and grow sustainably:
- Tariff reductions on key goods
- Addressing non-tariff distortions in parallel
- Phasing out fossil fuel subsidies
- Building coherence around carbon-based trade policies
- Supporting trade in digital and climate-related services
- Encouraging climate-smart agriculture
- Aligning trade agreements with climate commitments
- Facilitating green investment
The chart below provides examples of how the global trading system can through continued dialogue between governments and the private sector put trade to the service of climate action.
The report includes a jointly-authored foreword by the World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala and the United Nations Framework Convention on Climate Change (UNFCCC) Executive Secretary welcoming the insights from business. Major intergovernmental meetings will be held under both organisations in the last quarter of this year.
Business can take steps to encourage alignment of trade rules with climate action. The Forum is today launching a two-year work programme – titled Climate Trade Zero – to support public and private exchange on these issues as part of building a more sustainable trading system.
Many companies also recognized that the transition is taking place at different speeds and levels of intensity across countries and sectors. Interviewees highlighted the importance of providing support and incentives to developing countries, and to supply chain partners in developing countries, to undertake the investments necessary to reduce their emissions.
Appliance standards and labelling is highly effective at reducing energy use
Policies that introduce minimum efficiency performance standards and energy-consumption labelling on appliances and equipment have led to reduced power consumption, lower carbon emissions, and cost savings for consumers, according to analysis published today by the IEA and the 4E Technology Collaboration Programme (4E TCP).
The report’s findings are drawn from nearly 400 evaluation studies covering 100 countries, including those with the longest running and strongest appliance policies, such as China, European Union, Japan and the United States.
“The findings from the study are important as they provide evidence that standards and labelling are highly effective policy instruments that bring benefits to consumers as well as lower emissions and lower energy demand,” said Brian Motherway, the Head of Energy Efficiency at the IEA.
The study shows the policies have had significant positive impacts:
- In countries with long-running policies, appliances are now typically consuming 30% less energy than they would have done otherwise.
- In the nine countries/regions for which data were available, such programmes reduced annual electricity consumption by a total of around 1 580 terawatt-hours in 2018 – similar to the total electricity generation of wind and solar energy in those countries.
- The programmes that have been operating the longest, such as those in the United States and the European Union, are estimated to deliver annual reductions of around 15% of their current total national electricity consumption. This percentage increases each year as more of the older, less-efficient stock is replaced with equipment that meets new higher efficiency standards.
- These energy savings represent a significant financial boon for businesses and householders. In the United States alone, utility customers are now economising USD 60 billion each year, or USD 320 per customer.
- Also, the United States, European Union and China together are avoiding annual CO2 emissions of more than 700 million tonnes, equivalent to the total energy-related emissions of Germany.
- Well-designed policies encourage product innovation and lead to economies of scale, which reduces the cost of appliances even without accounting for the efficiency gains. For example, in Australia the sticker price of appliances has typically fallen 40% over the last 20 years, while average energy consumption has fallen by a third.
“The message is simple: expanding standards and energy efficiency labelling programmes makes the energy transition challenge easier, more affordable and become a reality,” said Jamie Hulan, the Chair of the 4E TCP.
The IEA will continue to collaborate with 4E TCP to enhance and promote the use of such policies. 4E TCP is an international platform for fourteen countries and the European Union to exchange technical and policy information focused on increasing the production and trade in efficient end-use equipment.
Ahead of this November’s COP26 Climate Change Conference, the IEA is working with the UK Government via the Super-Efficient Equipment and Appliance Deployment (SEAD) initiative to coordinate and improve international action on product energy efficiency. The United Kingdom is leading the COP26 Product Efficiency Call to Action, which aims to double the efficiency of key global products by 2030, initially focusing on four key energy-consuming products: air conditioners, refrigerators, lighting and industrial motors systems. The IEA is supporting the implementation of this work and helping expand the number of countries ready to make this commitment.
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