The 50th World Economic Forum Annual Meeting closed today, a historic meeting bringing all stakeholders together to shape a cohesive and sustainable world.
World Economic Forum President Børge Brende said “Our 50th Annual Meeting has been truly remarkable, due to the real progress that we created on a spectrum of issues where public-private collaboration is crucial. We laid the basis for a decade of delivery.”
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), told participants that we are in a better place in January 2020 than we were in October 2019. There are several drivers for this positive momentum: trade tensions are receding; central banks have loosened monetary policy; and global industrial production is bottoming out.
The IMF’s economic forecast is for 3.3% growth this year and 3.4% next year. This level of growth was characterised as “sluggish”, and governments were called on to enact structural reforms and boost spending.
In 2019, 29 central banks globally reduced rates 71 times and it is now time to pass the baton on to fiscal policy. “We need to go beyond monetary stimulus – fiscal policy needs to become more aggressive,” Georgieva added.
Christine Lagarde, President of the European Central Bank, shared this relatively sanguine outlook. Uncertainties have abated on issues like trade and Brexit, she said, and it is likely that income growth and low unemployment will eventually be reflected in prices.
“The European Central Bank has launched a broad strategic review, the first since 2003, to revisit the bank’s processes and policies and to recommend structural changes,” she said, committing to delivering the outcomes of this review at the next Annual Meeting.
Steven Mnuchin, Secretary of the Treasury of the United States, said: “The US economy continues to be the bright spot in the world.” The economic outlook for 2020 is very robust, he added. Inflation remains muted, incomes are rising and unemployment is near historic lows.
“Trade negotiations have started with both the EU and the UK and we look forward to completing both of those deals this year,” he said.
Haruhiko Kuroda, Governor of the Bank of Japan, said: “We expect Japan’s economy to grow by 1% to 1.5% this year.” Nevertheless, inflation in Japan is stubbornly low. Continued accommodative monetary policy will be required for some time to achieve the 2% inflation objective, he added.
Climate risk is quite real for Japan, he said. In the fourth quarter of last year, the Japanese economy experienced negative growth largely because of two large typhoons. These types of natural disasters are intensifying and Japan stands ready to do more to reduce greenhouse gas emissions and combat global climate change.
Germany has embarked on an expansionary fiscal policy programme, said Olaf Scholz, Vice-Chancellor and Federal Minister of Finance of Germany. Taxes have been reduced by about $25 billion a year, investment in infrastructure is at record levels and R&D spending is targeted to reach 3.5% of GDP.
“Germany’s economy remains strong and we expect these investment measures to have a material impact on demand,” he added.
However, we must act urgently on sustainability issues, he said. Europe will continue to lead on climate change, with a target to be carbon neutral by 2050 backed by investments in the green economy and renewable energy.
Outcomes of the Annual Meeting 2020
In a letter sent to participants in advance of the Annual Meeting, Klaus Schwab, the Forum’s Founder and Executive Chairman, and the heads of Bank of America and Royal DSM, asked all members and partners to commit to achieving net zero carbon emissions by 2050 or earlier. In part inspired by this, the World Economic Forum Annual Meeting 2020 saw a number of outcomes that made progress towards a more cohesive and sustainable world:
Skills and Work
· The Reskilling Revolution was launched to provide better education, skills and jobs to 1 billion people by 2030, with the initial backing of the governments of Bahrain, Brazil, Denmark, France, India, Oman, Pakistan, Singapore, United Arab Emirates and the United States as well as business partners, including PwC, Salesforce, ManpowerGroup, Infosys, LinkedIn, Coursera Inc. and The Adecco Group. Commitments to provide better education, skills and work for 250 million people have already been made. The Forum’s Global Shaper community further pledged to provide skills to 100,000 people in vulnerable communities.
· Six leading platform companies – Cabify, Deliveroo, Grab, MBO Partners, Postmates and Uber – became founding signatories of the Forum’s Charter of Principles for Good Platform Work.
· The Valuable 500 initiative of companies committed to placing disability inclusion on their leadership agendas that was launched last year in Davos, announced that 241 companies from 24 countries have pledged their support.
· Ingka Group (IKEA) and Royal DSM became founding members of the Forum’s Hardwiring Gender Parity in the Future of Work initiative. McKinsey joined as knowledge partner.
· The Partnership for Global LGBTI Equality, which was launched in Davos last year to accelerate inclusion for lesbian, gay, bisexual, transgender and intersex (LGBTI) people, announced that it has grown its membership to 17 international businesses.
· The International Business Council, incorporating 140 of the world’s largest companies, agreed to support efforts to develop a core set of common metrics and disclosures that could be used to measure private sector progress against key environmental, social and governance (ESG) goals.
· The Forum also became a founding partner this week, alongside Refinitiv, United Nations and others in the Future of Sustainable Data Alliance. The alliance focuses on improving the quality of ESG data available to governments and investors to inform decision-making.
· The Davos Friends of Africa Growth Platform launched with the support of the Presidents of Botswana and Ghana to promote entrepreneurism in Africa. The platform’s initial target is to reach 1 million entrepreneurs by the end of 2020.
· A strategic partnership was signed between the World Economic Forum and the Organisation for Economic Co-operation and Development (OECD) to accelerate progress towards inclusive and sustainable growth globally.
· Some 42 organizations, including businesses from mining, automotive, chemical and energy that have a combined revenue of $1 trillion dollars agreed on 10 guiding principles for a sustainable battery value chain, enabled by a traceability platform called Battery Passport.
· The Australian state of Queensland announced it will join the Forum’s Global Lighthouse Network in a bid to help small and medium-sized enterprises adopt advanced manufacturing technologies.
· CEPI, the Coalition for Epidemic Preparedness Innovations that was launched in Davos in 2017, today announced the initiation of three programmes to develop vaccines against the novel coronavirus, nCoV-2019, in partnership with Moderna and the Wellcome Trust. The swift action was made possible by the fact that the leaders of the partner organizations were all in Davos.
· GAVI, the Vaccine Alliance, celebrated its 20th anniversary. GAVI was launched at the Annual Meeting 2000 with the backing of the Gates Foundation, World Health Organization, pharmaceutical companies and governments to bring vaccines to children who lacked access. Since then, GAVI has reached 760 million children.
· The World Economic Forum announced a partnership with the Global CEO Initiative (CEOi) to form a coalition to accelerate diagnostics and treatments for Alzheimer’s disease.
· The Forum initiated Ending Workplace Tuberculosis, a multi-sector initiative aimed at tapping into the business community to help stop TB in countries affected disproportionately by the disease.
· Ministers at Davos announced negotiations between 99 economies on a new international agreement on investment facilitation at the WTO. The agreement is aimed at making it easier for investment to flow between economies while increasing its development impact.
· As theUS and France agreed a detente on digital tax during the Annual Meeting, the Forum received a mandate from multistakeholder partners to further build multistakeholder understanding of and input to international tax reforms and assist the search for broadly supported solutions.
· The Forum partnered with the Japanese government on a multistakeholder effort to find practical mechanisms to enable free “Data Free Flow with Trust” in support of the Osaka Track process that was initiated at the G20 in 2019.
· The Schwab Foundation for Social Entrepreneurship announced that its community has improved the lives and livelihoods of more than 622 million people in 190 countries since 2000. Impacts include distributing $6.7 billion in loans or value of products and services; mitigating more than 192 million tonnes of CO2; improving education for more than 226 million children and youth; improving energy access for more than 100 million people and driving social inclusion for over 25 million people.
· 11 NGO executives united to stop sale of .org domain to a private equity firm. Executive directors of Greenpeace International, Access Now, Human Rights Watch, ACLU, International Trade Union Confederation, Sierra Club, Amnesty International, Consumer Reports, 350.org, Color of Change and Transparency International released an open letter on 21 January 2020 “calling on the leaders of Internet Society (ISOC) and Internet Corporation for Assigned Names and Numbers (ICANN) to stop the sale of the .org top-level domain to private equity firm Ethos Capital”.
Combating climate change
· 1t.org, a new multistakeholder initiative aimed at supporting efforts to grow, conserve and restore 1 trillion trees by the end of the decade was announced. Within the first days of its launch, the US and China announced support. Salesforce announced a new commitment to plant 100 million trees; Colombia confirmed its existing commitment to plant 180 million trees by 2022; Pakistan reaffirmed its 10 billion trees campaign; and the Global Shapers also committed to planting 1 million trees by 2021 across its 400 hubs worldwide.
· New members signed up to the Forum’s community of CEO Climate Leaders. The community are committed to helping their respective companies meet the Paris Climate Goals. New members include: AstraZeneca; Bayer AG; BBVA, Dalmia Cement; Jacobs Engineering Group; JLL; Newmont Corporation; OVG Real Estate, and Zurich Insurance Group.
· The Sustainable Markets Initiative, backed by a Sustainable Markets Council, was launched by HRH The Prince of Wales in collaboration with the World Economic Forum with the goal of bringing about a transition to sustainable markets and rapid industry-wide decarbonization.
· The Forum’s Advanced Manufacturing and Production community launched the Carbon Reduction in Manufacturing Initiative with Johnson & Johnson, Schneider Electric and Unilever, with support from Al Gore’s Generation Investment Management to achieve a goal of cutting carbon emissions in manufacturing by 50% by 2030.
· The Net Zero Asset Owner Alliance of 16 pension funds and insurers committed to helping achieve the Paris Climate Goals added the Church of England and Generali as new members. The alliance’s portfolio now stands at $4.3 trillion.
· The Champions for Nature, a high-level group calling for raised ambition on nature, was launched. It is chaired by the Executive Director of UN Environment Programme, the CEO of Unilever, and the President of Costa Rica. The launch followed a new report Nature Risk Rising which found that over half the world’s total GDP – is moderately or highly dependent on nature.
Sustainable Development Goals
· Frontier 2030 was launched as a platform to leverage the technologies of the Fourth Industrial Revolution to accelerate the Sustainable Development Goals. The platform is chaired by UNDP in partnership with the governments of Botswana, South Korea and Norway, as well as private sector commitment from Microsoft, Google, Cisco, Arm, Planet Labs, X, Amazon Web Services and Chipsafer. It is hosted by the World Economic Forum.
· The Food Action Alliance was launched by over 25 partners of the World Economic Forum, UN agencies, companies, farmer organizations, civil society, and finance institutions to scale collective action and transform foods systems to be sustainable, nutritious and healthy, efficient and inclusive.
· A new multistakeholder partnership, SDG500, was launched to mobilize $500 million towards achieving the Sustainable Development Goals in emerging markets through a series of six blended finance funds. SDG500 is a partnership between the International Fund for Agricultural Development, the United Nations Capital Development Fund, Smart Africa, Stop TB Partnership, the IDB Lab of the Inter-American Development Bank, the International Trade Centre, CARE USA, and Bamboo Capital Partners.
A Cohesive and Sustainable Fourth Industrial Revolution
· The Forum partnered with a community of 40 central banks, international organizations, academic researchers and financial institutions to create a framework to help central banks evaluate, design and potentially deploy Central Bank Digital Currency (CBDC).
· The World Economic Forum, in collaboration with 100 stakeholders, produced theEmpowering AI Toolkit to help board members better understand the positive and negative implications of deploying artificial intelligence.
· The Government of Brazil, together with the World Economic Forum and key business stakeholders, rolled out a set of new scalable policy interventions to increase successful adoption of industrial internet of things technologies by small and medium-sized enterprises in manufacturing.
· Partners of the Centre for the Fourth Industrial Revolution Global Network, including Brazil, Colombia, Japan and Saudi Arabia, expanded their commitment to ensuring responsible and ethical governance of smart city technologies through the G20 Global Smart Cities Alliance on Technology Governance, led by the World Economic Forum.
· The World Economic Forum’s Global AI Council, launched in 2019, collaborated with UNICEF to create guidelines for AI-supported toys for under seven-year-olds, as well as identifying young people under the age of 18 to sit on a Global AI Youth Council.
· A group of private-sector leaders from cybersecurity companies, services providers and global corporations along with law enforcement agencies, Interpol and Europol, agreed to work together with the World Economic Forum through 2020 to foster a global public-private alliance against cybercrime.
· A group of telecommunications stakeholders, including BT, Deutsche Telekom, Du Telecom, Europol, Global Cyber Alliance, Internet Society, Korea Telecom, Proximus, Saudi Telcom, Singtel, Telstra and ITU, endorsed new principles combating high-volume cyberattacks that could protect up to 1 billion consumers in 180 countries.
· Navdeep Bains, Canadian Minister of Innovation, Science and Industry, and Ajay Banga, CEO of Mastercard, announced a $510 million investment by Mastercard to establish a new global Intelligence and Cyber Centre in Vancouver, British Columbia.
The race to zero emissions, and why the world depends on it
A host of countries have recently announced major commitments to significantly cut their carbon emissions, promising to reach “net zero” in the coming years. The term is becoming a global rallying cry, frequently cited as a necessary step to successfully beat back climate change, and the devastation it is causing.
What is net zero and why is it important?
Put simply, net zero means we are not adding new emissions to the atmosphere. Emissions will continue, but will be balanced by absorbing an equivalent amount from the atmosphere.
Practically every country has joined the Paris Agreement on climate change, which calls for keeping the global temperature to 1.5°C above pre-industrial era levels. If we continue to pump out the emissions that cause climate change, however, temperatures will continue to rise well beyond 1.5, to levels that threaten the lives and livelihoods of people everywhere.
This is why a growing number of countries are making commitments to achieve carbon neutrality, or “net zero” emissions within the next few decades. It’s a big task, requiring ambitious actions starting right now.
Net zero by 2050 is the goal. But countries also need to demonstrate how they will get there. Efforts to reach net-zero must be complemented with adaptation and resilience measures, and the mobilization of climate financing for developing countries.
So how can the world move toward net zero?
The good news is that the technology exists to reach net zero – and it is affordable.
A key element is powering economies with clean energy, replacing polluting coal – and gas and oil-fired power stations – with renewable energy sources, such as wind or solar farms. This would dramatically reduce carbon emissions. Plus, renewable energy is now not only cleaner, but often cheaper than fossil fuels.
A wholesale switch to electric transport, powered by renewable energy, would also play a huge role in lowering emissions, with the added bonus of slashing air pollution in the world’s major cities. Electric vehicles are rapidly becoming cheaper and more efficient, and many countries, including those committed to net zero, have proposed plans to phase out the sale of fossil-fuel powered cars.
Other harmful emissions come from agriculture (livestock produce significant levels of methane, a greenhouse gas). These could be reduced drastically if we eat less meat and more plant-based foods. Here again, the signs are promising, such as the rising popularity of “plant-based meats” now being sold in major international fast-food chains.
What will happen to remaining emissions?
Reducing emissions is extremely important. To get to net zero, we also need to find ways to remove carbon from the atmosphere. Here again, solutions are at hand. The most important have existed in nature for thousands of years.
These “nature-based solutions” include forests, peatbogs, mangroves, soil and even underground seaweed forests, which are all highly efficient at absorbing carbon. This is why huge efforts are being made around the world to save forests, plant trees, and rehabilitate peat and mangrove areas, as well as to improve farming techniques.
Who is responsible for getting to net zero?
We are all responsible as individuals, in terms of changing our habits and living in a way which is more sustainable, and which does less harm to the planet, making the kind of lifestyle changes which are highlighted in the UN’s Act Now campaign.
The private sector also needs to get in on the act and it is doing so through the UN Global Compact, which helps businesses to align with the UN’s environmental and societal goals.
It’s clear, however, that the main driving force for change will be made at a national government level, such as through legislation and regulations to reduce emissions.
Many governments are now moving in the right direction. By early 2021, countries representing more than 65 per cent of global carbon dioxide emissions and more than 70 per cent of the world economy, will have made ambitious commitments to carbon neutrality.
The European Union, Japan and the Republic of Korea, together with more than 110 other countries, have pledged carbon neutrality by 2050; China says it will do so before 2060.
Are these commitments any more than just political statements?
These commitments are important signals of good intentions to reach the goal, but must be backed by rapid and ambitious action. One important step is to provide detailed plans for action in nationally determined contributions or NDCs. These define targets and actions to reduce emissions within the next 5 to 10 years. They are critical to guide the right investments and attract enough finance.
So far, 186 parties to the Paris Agreement have developed NDCs. This year, they are expected to submit new or updated plans demonstrating higher ambition and action. Click here to see the NDC registry.
Is net zero realistic?
Yes! Especially if every country, city, financial institution and company adopts realistic plans for transitioning to net zero emissions by 2050.
The COVID-19 pandemic recovery could be an important and positive turning point. When economic stimulus packages kick in, there will be a genuine opportunity to promote renewable energy investments, smart buildings, green and public transport, and a whole range of other interventions that will help to slow climate change.
But not all countries are in the same position to affect change, are they?
That’s absolutely true. Major emitters, such as the G20 countries, which generate 80 per cent of carbon emissions, in particular, need to significantly increase their present levels of ambition and action.
Also, keep in mind that far greater efforts are needed to build resilience in vulnerable countries and for the most vulnerable people; they do the least to cause
climate change but bear the worst impacts. Resilience and adaptation action do not get the funding they need, however.
Even as they pursue net zero, developed countries must deliver on their commitment to provide $100 billion dollars a year for mitigation, adaptation and resilience in developing countries.
EU greenhouse gas emissions fell in 2019 to the lowest level in three decades
The Commission today adopted its annual EU Climate Action Progress Report, covering the EU’s progress in cutting greenhouse gas emissions in 2019. Greenhouse gas emissions in the EU-27 decreased by 3.7 % year-on-year, while GDP grew by 1.5%. Emissions have now been reduced by 24% compared to 1990 levels.
Frans Timmermans, Executive Vice-President for the European Green Deal, said: “The European Union is proving it is possible to reduce emissions and grow your economy. However, today’s report again confirms we need to step up our efforts across all sectors of the economy to reach our common goal of climate neutrality by 2050. The transition is feasible if we stick to our commitment and seize the opportunities of the recovery to reboot our economy in a greener, more resilient way and create a healthy, sustainable future for all.”
Emissions covered by the Emissions Trading System (EU ETS) saw the greatest reduction in 2019, dropping by 9.1%, or about 152 million tonnes carbon dioxide equivalent (Mt CO2eq), compared to 2018. This drop was driven mainly by the power sector, where emissions fell by almost 15%, primarily due to coal-fired electricity production being replaced by electricity production from renewables and gas. Emissions from industry decreased by close to 2%. Verified emissions from aviation, which currently only cover flights within the European Economic Area, continued to grow modestly, increasing by 1%, or about 0.7 Mt CO2eq, compared to 2018. Emissions that are not covered by the EU ETS, such as those from non-ETS industry, transport, buildings, agriculture and waste, saw no significant change compared to 2018 levels.
EU expenditure on climate action, financing of green technologies, deployment of new solutions and international cooperation increased in 2019, and will see a further increase in the context of Europe’s recovery from COVID-19.
EU ETS auction revenue is an increasingly important source of climate financing. The total revenue received by Member States, the UK and EEA countries from the auctions between 2012 (the start of auctioning under the EU ETS) and mid-2020 was over €57 billion, with more than half generated in 2018 and 2019 alone. In 2019, total auction revenue exceeded €14.1 billion. Of this total, 77% will be used for climate and energy purposes, 7 percentage points higher than the 70% share reported in 2018. In addition, a growing number of EU-funded climate projects are financed through the monetisation of emission allowances via the NER 300 programme, the Innovation Fund and the Modernisation Fund.
The Climate Action Progress Report “Kick-Starting the Journey Towards A Climate Neutral Europe” describes progress made by the EU and its Member States in reducing greenhouse gas emissions, as well as reporting on recent developments in EU climate policy. The report is produced by the Commission’s Directorate-General for Climate Action based on data submitted by Member States under the Climate Monitoring Mechanism Regulation (MMR, Regulation No 525/2013).
Global Experts To Convene Online To Discuss Values In A Post-Covid World
Leading Islamic scholars and experts from around the world, representing government and civil society will convene online to attend the seventh assembly of the Forum for Promoting Peace in Muslim Societies being held between the dates of December 7-9.
The Forum for Promoting Peace in Muslim Societies is led by Shaykh Abdullah bin Bayyah, President of the Higher Academic Council at the new Mohammed bin Zayed University for Humanities in Abu Dhabi, under the patronage of His Highness Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister for Foreign Affairs and International Cooperation.
The Forum draws upon religious leadership and expertise to enter into productive conversations with academics, politicians, economists, and scientists about futures that are more peaceful, more secure, and more inter-connected for all humankind.
The title of this years Forum is “Human Values After Corona: Reviving Virtue in Times of Crisis.” It will examine how cooperation between nations, their people, and followers of the world religions can promote global peace and the welfare of all. The conference will emphasize the commonality or shared nature of humankind’s destiny at this crucial time. The conference will be unparalleled in its breadth this year hosting the most diverse panel of speakers spanning cultural, academic, governmental, and civic society fields in open conversation and with a shared commitment to positively influence the crisis’ present unfolding and alleviation.
The Forum will also discuss the healthcare dimensions of this pandemic and its effects upon mental health, especially given that the preservation of the human intellect is one of the overarching concerns of Islamic sacred law. Moreover, the guests will discuss how humanity may join hands across cultures and religions to create a new world that is human-centric and which prioritizes humanity’s wellbeing over other interests. Participants will also discuss the present economic crisis and the ethics of solidarity, as well as prospects for how the New Alliance of Virtue – signed by representatives of the world’s religions in Abu Dhabi last year – may be utilized in the process of our world’s upcoming ‘rebirth’.
Notable attendees will include: the Archbishop of Canterbury Justin Welby, Ambassador Sam Brownback, US Ambassador for International Religious Freedom, Rabbi Ephraim Mirvis Chief Rabbi of the UK, Professor Azza Karam,, Mr. Robert Wexler, Shaykh Mustafa Ceric, HE Noor-Ul-Haq Qadri, From Michael Sandel, Prof Sir Michael Marmot, Dr William Vendley, and Professor Melissa Rogers, Rehman Chishti MP, and Shaykh Hamza Yusuf of Zaytuna College.
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