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Explainer: The Coronavirus Global Response

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What is the Joint Call for Action?

The coronavirus pandemic affects practically every country in the world. Past experiences have shown that even with the availability of effective tools at the world’s disposal, some are protected, while others are not. This inequity is unacceptable – all tools to address the pandemic must be available to all.

With this in mind, the World Health Organization (WHO) and an initial group of global health actors have launched a landmark, global collaboration for the accelerated development, production and equitable global access to new COVID-19 essential health technologies. The partner organisations include: the Bill and Melinda Gates Foundation (BMGF), the Coalition for Epidemic Preparedness Innovations (CEPI), the Global Alliance for Vaccines and Immunisations (GAVI), the Global Fund, UNITAID, the Wellcome Trust and the World Bank.

What is the Coronavirus Global Response?

To respond to the joint call for action from health actors, the EU is joining forces with France, Germany, the United Kingdom, Norway and Saudi Arabia to host a pledging event.

Researchers and innovators around the world are working very hard to find solutions to save lives and protect our health. But they need more funding. World-leading scientists and health experts say €7.5 billion ($8 billion) is now needed to develop solutions to test, treat and protect people, and to prevent the disease from spreading.

With the Coronavirus Global Response, the EU and its partners are taking the lead in the global effort to close this funding gap.

The initiative has two main aims:

  • To rally support for global efforts and attract sizeable financial contributions from the public, private and philanthropic sectors, to bridge the funding gap estimated at €7.5 billion for the development and deployment of diagnostics, treatments and vaccines;
  • To secure a high-level political commitment to ensuring equitable access to therapeutics and vaccines, leaving no-one behind.

How was the €7.5 billion fundraising target set?  

The €7.5 billion ($8 billion) figure is based on an assessment, done in March 2020, by the Global Preparedness Monitoring Board (GPMB), an independent monitoring and accountability body to ensure preparedness for global health crises. 

GPMB identified a shortfall of funding for major needs to fight this pandemic in key areas:

  • $1.25bn for the World Health Organization (WHO) to support the most vulnerable countries;
  • $3bn for research and development (R&D) of vaccines for COVID-19 ($2bn), plus seed funding for manufacturing and deployment ($1bn);
  • $2.25bn for R&D on therapeutics for COVID-19, plus seed funding for manufacturing and deployment;
  • $0.75bn for R&D on diagnostics for COVID-19, plus seed funding for manufacturing and deployment, and
  • $0.75bn to stockpile essential Personal Protective Equipment (PPE) and vaccines.

GPMG has indicated that the full scale up of manufacturing and delivery will cost well above the current target, which is covers only the most urgently needed initial amounts.

Where are the main needs in the areas of vaccines, therapeutics and diagnostics?

In these three areas, underfinancing exists mainly on manufacturing, procurement and deployment rather than research and development, even if this is the most urgent area to cover. The current situation in the three selected areas is as follows:

Vaccines are difficult to develop and the outcome of research is uncertain. Currently, there are more than 70 vaccines in development, and at least 3 have entered into clinical trials. Once a vaccine is available, the challenge will be to produce it in the extremely high quantities needed and required, as well as to ensure that it is available and accessible for all countries, including low and medium-income countries.

Therapeutics: So far more than 40 developers of potential treatments for COVID19 have contacted the European Medicines Agency (EMA) and the Member States for scientific advice. Most of the treatments proposed are medicines currently authorised for other diseases. Clinical trials are currently ongoing to determine their efficacy for the treatment of COVID-19 patients. Once new therapies are identified, the challenge will be their production and manufacturing capacity and the need for large-scale procurement. Procurement at a global level will be costly and funding is therefore needed.

Diagnostics (Tests): At the moment, several types of tests, for different purposes, are in use. Some are used to detect the active disease and others to detect if the person passed on the disease. The latter still have be validated in terms of performance and produced on a large scale. The challenge is procurement and deployment, including equipment to analyse the results when applicable, as well as the link with effective and well-resourced testing strategies.

All new vaccines, diagnostics and treatments developed for COVID-19 will need to be made available globally for an affordable price, regardless of where they were developed or how they were funded. That is the reason why funds from this pledging initiative will go to organisations that are coordinating the global response to this crisis.

What is the GPMB?

Launched in 2018, the Global Preparedness Monitoring Board (GPMB) is an accountability and advisory body composed by 15 members to better respond to global health emergencies. It was created following the recommendations formulated by the UN Secretary General’s Global Health Crises Task Force in 2017.

The goals of the Board are to 1) assess the world’s ability to protect itself from health emergencies, 2) identify critical gaps to preparedness across multiple perspectives and 3) advocate for preparedness activities with national and international leaders and decision-makers and mobilise its influence with other leaders and policy makers at global, national and community levels.

The EU as such is not represented in the Board.

Who is in charge of the funds raised?

The European Union will coordinate the collection of the funds, which will be directed towards the needs identified by the GPMB in three strands: diagnostics, treatments and vaccines.

What is the breakdown of funds allocated to the three strands of work?

The 4 May will mark the beginning of the rolling out of the initiative aimed at developing three strands of work: diagnostics, treatments and vaccines. The breakdown of the funds will be further refined based on the initial indication of the needs identified by GPMB.

Pledges may be general or they may be earmarked for a specific strand.

Who will be developing the diagnostics, treatments and vaccines?

As of 20 April, the WHO had already identified 76 vaccine candidates supported by public, private and public-private consortia. There are many researchers and developers worldwide currently working on innovative solutions, including vaccines, treatments and diagnostics. The pressing needs and the special nature of research and development requires strong global collaboration.

Who will have ownership of the products produced with funding from the initiative?

Funding will benefit organisations that strive to ensure that the products will be available, accessible and affordable across the world, especially in the most vulnerable countries. Pledges will notably target CEPI and GAVI.

Funding pledged will also be accompanied by high-level commitments from donors in support of global access and fair deployment of new diagnostics, treatment and vaccines against COVID-19.

Who can donate? 

All countries, international organisations or financial institutions may contribute, but also the private sector, or foundations.

Why can’t private individuals make a donation?

The EU is not legally able to ask for citizens’ donations. Nonetheless, we are calling on individuals to d show their support by interacting on-line, spreading awareness about the initiative and encouraging the private sector to pitch in. In addition, individuals may make contributions to partner funds, such as the WHO COVID-19 solidarity response fund: https://covid19responsefund.org.

Until when can donations be made? 

Donations can be made as of 4 May 2020. On that day, the Commission will also announce the next milestones of a global campaign, which is to kick off an ongoing rolling replenishment.

What will you do if you exceed the fundraising target?

We aim is to reach €7.5 billion as we believe it is a realistic target for the current needs. More funding will be needed to sustain the actions in the coming months, which could benefit from donations beyond the targets. 

What is the estimated timeline for delivery on the three strands?

Given the current crisis, there is no time to lose. Funds will be allocated as quickly as possible. While a number of solutions are already being investigated, R&D, manufacturing and deployment are all time-consuming, resource-intensive steps. This is why it is crucial to coordinate efforts at international level, to identify as quickly as possible the most promising approaches while accelerating their development.

What are the links with the funds already raised for the WHO?

The WHO is currently helping to coordinate the worldwide response to COVID-19, which it declared to be public health emergency of international concern (PHEIC) on January 30, and a global pandemic on March 11, 2020. The WHO Strategic Preparedness and Response Plan outlines the public health measures that the international community stands ready to provide to support all countries to prepare for and respond to COVID-19.

The funds raised by the Coronavirus Global Response would be complementary to the WHO’s work and their appeal. The first iteration of the WHO Strategic Preparedness and Response Plan (SPRP) called for a total resource requirement of $675 million, of which $61.5 million were for WHO’s urgent preparedness and response activities for the period of February to April 2020. An updated plan will be launched in April and will identify significantly larger resource needs for country response, research and development and WHO itself.

The EU’s partnership with the WHO to respond to the COVID-19 is not new and will be reinforced via our current initiative. For example, the EU is already working with the WHO to supply medical devices and personal equipment such as ventilators, laboratory kits, masks, goggles, gowns, and safety suits.

Which countries were invited to take part in the initiative?

All countries, international organisations and foundations who have shown interest in fighting the COVID-19 have been invited to participate.

Will the fruits of the initiative only benefit countries that participate?

No, the objective of this pledging event is to speed up innovations and ensure access for all, irrespective of the geographical origin of funds. Pandemics can only be effectively controlled when solutions are deployed globally. The initiative aims to rally significant financial contributions to develop diagnostics, treatments and vaccines and secure a high-level political commitment to ensure equitable access to diagnostics, treatments and vaccines to make sure no-one is left behind.

How does this pledging event compare to and complement other international initiatives?

This is an integral part of the multilateral response to the COVID-19 emergency and is aligned with the logic of on-going UN appeals. It stems directly from G20 Leaders’ commitment, and the G20 Action Plan to provide immediate resources to key entities in the global health response.

The conference will focus on the quest for solutions that currently do not exist, first through R&D, then deployment (access to new solutions), whereas the UN system is primarily tackling other needs such as humanitarian assistance, mitigation of the socio-economic impacts and preparedness of health systems for future outbreaks.

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Energy News

Securing Africa’s Energy Future in the Wake of Covid-19

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African ministers from countries making up 70% of Africa’s total primary energy supply, nearly 70% of its GDP and more than half of the continent’s entire population met with global energy leaders via videoconference on 24 November 2020.

A revitalised energy sector is key to Africa’s economic transformation. Participants agreed on the urgent need to enhance actions to ensure sustainable economic recovery and significantly scale up energy investments in Africa over the next three years in the wake of Covid-19.

Discussions highlighted implementation priorities and innovations key to enabling Africa’s energy sector to power regional economic growth over the three-year period (2020-2023) that coincides with end of the first 10-year Action Plan of the AU Agenda 2063. Africa’s pace of progress towards the realisation of the transformative Agenda 2063 continental vision will be determined by the degree to which it successfully recovers from the evolving impacts of the 2020 global health and socioeconomic crisis. African countries must engage in robust, innovative actions to strengthen energy security, scale up infrastructure investment, and promote the growth of the green economy, making use of all available opportunities to continually accelerate Africa’s clean energy transitions. These interventions can be bolstered by enhanced rates of internal trade in Africa, including in the energy sector, through a speedy implementation of the African Continental Free Trade Area.

Ensuring Sustainable Recovery – Participants noted that achievement of full access to modern energy by 2030 is achievable but will require stable, consistent policies and strong political will. They stressed the need for all global stakeholders to maintain focus on collective action, and also update plans to step up the pace of universal access to electricity and modern cooking in Africa. African governments and other partners must continue to work together to ensure progress towards achievement of SDG7. It was acknowledged that the momentum behind existing policy and investment plans was insufficient to meet the modern energy needs of Africa’s population. It was noted with concern that the initial Covid-19 crisis impact in 2020 had already severely affected recent progress on universal energy access.

Financing and Investment – Participants underscored that Africa is facing major challenges in obtaining the required finance and new investments to meet its immense structural transformation needs. Challenges include reduced financing flows, a lack of fiscal space, a slowdown in new investments in the energy sector and significant increases in the cost of borrowing. Oil and gas producers in Africa have been hit very hard throughout 2020, and many new ones have seen their hope for energy sector transformation dashed by the global economic slowdown this year. Local currencies have weakened against hard currencies and this is translating to higher debt burden. The already weak financial position of many African power utilities has been worsened by declining demand due to the pandemic and a high default rate. This situation is further exacerbated by weakened currencies.

Key conclusions – Participants stressed the following top recommendations going forward:

Partnership for a green and just transition is an essential priority to boost sustainable economic recovery in Africa and ensure progress towards universal access to clean energy, whilst ensuring that no one is left behind. In that context, the need to involve more women and youth throughout the value chain of energy projects was also emphasised.

Support for energy sector institutions and particularly power utilities, which are the fulcrum of the sector, is critical against the financial shocks imposed by the Covid-19 pandemic. Predictable policy environments with innovative market regulations help to attract new investment.

An integrated approach embracing grid, mini-grid and off-grid solutions is required to sustain the momentum for increasing access. In light of the Covid-19 crisis, supportive policies to ensure the sustainability of mini-grid providers need to be replicated across the continent.

Despite the challenges imposed by Covid-19, governments must avoid the temptation to slow down the pace of energy access and provide the right incentives for the private sector to play a part in the recovery process, leveraging on the productive sector and innovative business models and digitalisation.

Enhanced multilateral, regional and international cooperation can play an important role in addressing financing and investmentchallenges in the post Covid-19 era.

Stronger regional integration of electricity markets and infrastructure is a crucial factor in achieving a just energy transition as well as building secure, flexible and reliable power supply in Africa.

The African Continental Free Trade Area (AfCFTA) opens the door to a new era of increased interconnectedness. Continental energy infrastructure programs like PIDA should play significant role to support AfCFTA.

A strong focus on improving power infrastructure, within and across borders, building up regulation and capacity to support Africa’s power pools and further enable regional electricity markets could all play an instrumental role in improving the financing and investment climate on the continent.

AUC, IEA and partners should consider forming a Taskforce on climate financing solutions for the African energy community that could present its recommendations at the COP 26 in 2021.

The outcomes of this Ministerial Forum will be shared with African Union and IEA member state leaders, as well as the leaders of international financial institutions and other global decision-makers, business leaders and key stakeholders. In addition, these outcomes will help guide future activities linked to enhancing the strong AUC-IEA partnership and inform the IEA’s continued deepening of its engagement with key decision-makers from governments, the private sector, investors and other leading regional institutions across the continent. 

As the co-chairs of this event, we would like to thank all participants for their active engagement and constructive contributions.

Signed,

  • Amani Abou-Zeid, Commissioner for Infrastructure and Energy, African Union
  • Fatih Birol, Executive Director, IEA
  • Gwede Mantashe, Minister of Mineral Resources and Energy, South Africa 

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Human Rights

UN: Renew commitment to Palestinian people

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Al-Walaja, a Palestinian village in the West Bank. Photo: UNRWA/Marwan Baghdadi

Commemorating the International Day of Solidarity with the Palestinian People, UN Secretary-General António Guterres urged Israeli and Palestinian leaders to explore every opening to “restore hope” for a two-State solution. 

In a message, the UN chief cautioned that prospects for a viable two-State solution are becoming “more distant”. 

“A host of factors continue to cause great misery, including: the expansion of illegal settlements, a significant spike in the demolition of Palestinian homes and structures, violence and continued militant activity,” said Mr. Guterres. 

“Israeli and Palestinian leaders have a responsibility to explore every opening to restore hope and achieve a two-State solution.” 

The International Day of Solidarity with the Palestinian People is observed each year on 29 November. Established in 1977, it marks the day in 1947 when the UN General Assembly adopted a resolution partitioning Palestine into an Arab State and a Jewish State. 

Committed to supporting Palestinians and Israelis 

The Secretary-General said that he remains committed to supporting Palestinians and Israelis to resolve the conflict and end the occupation in line with relevant UN resolutions, international law and bilateral agreements in pursuit of the vision of two States – Israel and an independent, democratic, contiguous and sovereign Palestine – living side by side in peace and security, within secure and recognized borders, on the basis of the pre-1967 borders, with Jerusalem as the capital of both States. 

“I hope that recent developments will encourage Palestinian and Israeli leaders to re-engage in meaningful negotiations, with the support of the international community, and will create opportunities for regional cooperation,” he said. 

“Let us together resolve to renew our commitment to the Palestinian people in their quest to achieve their inalienable rights and build a future of peace, dignity, justice and security,” added the Secretary-General.  

In the message, Mr. Guterres also extended his condolences on the passing, earlier this month, of Saeb Erakat, Palestine Liberation Organization (PLO) Secretary-General and Chief Negotiator for Palestinians in the Middle East Peace Process. 

Financial situation of UNRWA 

Mr. Guterres also voiced concerns over the financial situation facing the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), which provides direct and often life-saving assistance to millions of Palestine refugees. 

“I appeal to all Member States to urgently contribute to enable UNRWA to meet the critical humanitarian and development needs of Palestine refugees during the pandemic,” urged the Secretary-General. 

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EU Politics

Commission and EBRD promote innovative use of data in public procurement involving EU funds

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The European Commission, the European Bank for Reconstruction and Development (EBRD) and the Open Contracting Partnership are joining forces to improve the quality and transparency of public tenders co-funded by EU funds in Greece and Poland. Thanks to their support, two pilot projects will provide expertise and hands-on support to public authorities in both countries, with a focus on digital innovation.

By promoting the smart use of innovation and open data, the two pilots will help public administrations to better plan, implement and monitor the procurement of works, goods and services. This will improve the use of public resources and increase opportunities for businesses, especially for small and medium companies (SMEs). Moreover, thanks to a cooperation with local civil society organisations, this initiative will also favour transparency of public spending and stimulate citizens’ participation in the monitoring of investments with a direct impact on the community, such as investments in sustainability, local development and social inclusion. 

The two pilot projects

  • In Greece, the project will aim at consolidating and integrating all databases into a single smart public contract register. This will enable online access for bidders and citizens, improve quality of data and facilitate the use of data-driven analytical tools for monitoring the procurement process.
  • In Poland, the initiative will support Polish national and local authorities to introduce open data in public procurement and promote automated collection, standardisation, and consolidation of procurement data on all tenders.

The two pilots will run until the end of 2021 and their results will be disseminated in order to ensure a successful roll out in other Member States.

Commissioner for Cohesion and Reforms, Elisa Ferreira, said: “In the programming period 2021-2027, Cohesion policy will continue to support Member States and regions in their economic recovery following the coronavirus pandemic, as well as boosting competitiveness through new investments in research and innovation, digital transition and the implementation of the European Green Deal agenda. Through the use of new technologies, national and local public authorities managing EU funds will be able to spend public money more effectively ensuring the best possible results for citizens and businesses”.

Commissioner for Internal Market, Thierry Breton, added: “Transparency in public procurement is essential to ensure efficiency of public investments, in line with the EU strategic policy goals aiming at a greener, digital and more resilient Europe. Public authorities can rely on the EU’s public procurement framework, tools like the electronic procurement systems and open data for an efficient use of public funds.”

The EBRD Vice-President, Pierre Heilbronn commented: “The EBRD is committed to support legal and institutional reforms aimed at ensuring that procurement laws and practices are modern, in line with international standards and can swiftly respond to emerging challenges. Together with Open Contracting Partnership, we are sharing the experience of successful civil society procurement monitoring based on open data. Our joint efforts aim to create a framework for enlisting civil society organisations to support public procurement reforms and use open data to monitor procurement.”

Background

In the context of the next long-term EU budget, more than €370 billion from Cohesion policy funds will be invested to support the digital and green transitions of the Member States. Every year, public authorities in the EU spend around 14% of GDP on public procurement, amounting to more than €1.9 trillion. Almost half of Cohesion policy funding is channelled through public procurement. The Commission has promoted a series of initiatives aimed at helping Member States to improve the way administrations and beneficiaries use public procurement for EU investments. These include the Integrity Pacts to ensure more efficient and transparent tenders and safeguarding EU taxpayers’ money. The Commission also took action to facilitate citizen engagement for better governance and effective Cohesion policy investments.

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