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All Aircraft Could Fly on Sustainable Fuel by 2030- Report

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The Sustainable Aviation Fuels as a Pathway to Net-Zero Aviation Report shows that a transition to carbon-neutral flying is possible, with SAF the most promising decarbonization option in the near term.

There are enough sustainable, renewable feedstocks to fuel all aviation using SAF by 2030. Scaling up SAF production to meet the net-zero ambition, however, depends on several new technology routes and significant multistakeholder collaboration. The main challenge will be developing appropriate commercial, financing, incentives and regulatory mechanisms.

SAF as a feasible route to net-zero aviation

In 2019, aviation accounted for 3% of human-made carbon emissions. Hybrid-electric and hydrogen-powered aircraft could help the industry reach the next efficiency target, but development and deployment at scale could take 10 to 20 years and the technology will initially be limited to smaller, shorter-range aircraft.

Furthermore, in 2019, fewer than 200,000 metric tons of SAF were produced globally, a tiny fraction of the roughly 300 million tons of jet fuel used by commercial airlines.

More positively, SAF has already fuelled more than one-quarter of a million commercial flights and is compatible with existing aircraft and fuelling infrastructure.

Even following the challenge to aviation during the COVID-19 pandemic, members of the CST coalition are continuing their commitment to drive energy transition in aviation towards the goal of net-zero aviation.

An economic opportunity for developing markets

Aviation delivers significant benefits globally, not least to developing markets, from where a sizeable portion of global aviation demand is expected to come. The current crisis may also present an opportunity for countries with low renewable power prices and ready access to feedstock. If these countries act now, they can benefit from energy transition in aviation and become global SAF production hubs.

“The structural changes happening in the industry are an opportunity to rebuild and transition towards a low-carbon future and meet the sustainability demands of its consumers,” said Christoph Wolff, Head of Mobility Industries at the World Economic Forum.

To this end, the CST initiative is working on a pilot project to create a SAF sector in India and plans to replicate this process in other markets that have the necessary conditions to foster a valuable SAF industry.

Building scale is key to improving cost

This report, written in collaboration with McKinsey & Company, shows that despite feedstock availability and even if all currently announced SAF projects are completed, capacity will only increase to approximately 4 million tons annually, which equates to approximately 1% of global jet fuel demand in 2030.

Currently, SAF is more than double the cost of conventional fuel. As further innovations and efficiencies of scale in production are achieved, prices will drop.

“We see the classic Catch-22 problem as in other energy transition discussions. Insufficient scale drives per unit costs high and high costs keep demand low. Some structural solutions could break this impasse – B2B contracts, prioritized aviation and airport fee structures etc. that will give fuel producers the required support to invest in production capacity,” said Daniel Riefer, Associate Partner, McKinsey & Company.

Investments can accelerate promising new technologies

Fuels produced from used cooking oil and other lipids will contribute most to developing capacity in the short term. New technologies take time to mature and develop, but investment decisions, including building larger demonstration plants, are needed now.

Power-to-liquid fuels can contribute the most to SAF capacity, but will only prove effective after 2030 under current development plans. Fuels made from CO2 and green electricity will require financial support for their technology to mature and will need access to renewable electricity.

There is no silver bullet for net-zero aviation. No single feedstock will be practical in every geography or yield enough SAF to meet all demand. Even as costs fall, SAF will have higher production costs than fossil fuels, though a rising carbon price may enable parity in the 2030s.

While the report demonstrates that enough feedstocks are available globally to make SAF economically viable and scalable, several factors are required. These include supportive regulatory frameworks, measures to stimulate demand from corporate and private customers, and innovative ways to finance the transition. The CST coalition is debating how to meet these challenges and help aviation earn its right to keep growing.

Clean Skies for Tomorrow

The World Economic Forum’s CST initiative, established in 2019, is a mechanism for leaders throughout aviation’s value chain to facilitate the transition to net-zero aviation by mid-century. In partnership with ambitious senior leadership throughout industry, government and civil society, this public-private partnership is driving a shift to zero-emissions aviation through SAF and other clean propulsion technologies.

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New Skills Development Key to Further Improving Students’ Learning Outcomes

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Learning outcomes in Russia would benefit significantly from a focus on teaching new skills that are tailored to the modern labor market, says a new World Bank report, New Skills for a New Century: Informing Regional Policy.

Russia’s education system has traditionally been well-performing and efficient, with Russian students appearing among the top performers globally. However, today’s labor market requires “21st century skills” – a combination of skills, knowledge, and expertise that students need to succeed in the modern world.

“Russia’s education system could achieve better teaching and learning outcomes if it focused more on developing 21st-century skills,” says Tigran Shmis, World Bank Senior Education Specialist. “There is a strong relationship between the quality of the school environment, innovative teaching practices, students’ perception of school, and students’ learning outcomes.”

According to the report, 38 percent of Russian schools today are not equipped with workshops and 46 percent do not have scientific laboratories. And, 77 percent of educational institutions do not have dedicated places for integrated lessons that stimulate the development of new skills and team interaction.

The way teaching is delivered, the physical characteristics of the learning environment, and the school’s psychological climate all affect students’ learning results. The study provides an insight into how these factors impact the development of students’ skills, including 21st century and digital skills. Along with data analytics, the study includes a qualitative perspective of modern teaching and learning in Russia, as well as the impacts of the COVID-19 pandemic on teaching and learning.

“Developing the ability of students to master 21st century skills is critical to ensuring their future employment and career success,” says Renaud Seligmann, World Bank Country Director for Russia. “Studies in Russia have shown that businesses having access to workers with these skills will also be critical for growth and productivity. In turn, high-quality human capital is a cornerstone of the resilience and sustainability of the national economy.”

The report provides recommendations for how schools in Russia can better help students excel. For example, teachers who practice innovative teaching are more likely to drive higher achievement. Modern teaching practices can be supported by expanding the use of technology and enhancing the learning environment in classrooms. Technology should be made available in schools on an equitable basis to improve student learning and enhance teachers’ professional development. Education policymakers should prioritize the prevention of bullying and the development of supporting measures to ensure a positive school climate.

Despite the physical return of students to schools, the COVID-19 pandemic is causing continued learning losses. Therefore, new equipment, ICT, and innovative teaching methods are needed to enable teachers to improve their practices and compensate such learning losses.

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Post-COVID-19, regaining citizen’s trust should be a priority for governments

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The COVID-19 crisis has demonstrated governments’ ability to respond to a major global crisis with extraordinary flexibility, innovation and determination. However, emerging evidence suggests that much more could have been done in advance to bolster resilience and many actions may have undermined trust and transparency between governments and their citizens, according to a new OECD report.

Government at a Glance 2021 says that one of the biggest lessons of the pandemic is that governments will need to respond to future crises at speed and scale while safeguarding trust and transparency. “Looking forward, we must focus simultaneously on promoting the economic recovery and avoiding democratic decline” said OECD Director of Public Governance Elsa Pilichowski. “Reinforcing democracy should be one of our highest priorities.”

 Countries have introduced thousands of emergency regulations, often on a fast track. Some alleviation of standards is inevitable in an emergency, but must be limited in scope and time to avoid damaging citizen perceptions of the competence, openness, transparency, and fairness of government.

 Governments should step up their efforts in three areas to boost trust and transparency and reinforce democracy:

 Tackling misinformation is key. Even with a boost in trust in government sparked by the pandemic in 2020, on average only 51% of people in OECD countries for which data is available trusted their government. There is a risk that some people and groups may be dissociating themselves from traditional democratic processes.

 It is crucial to enhance representation and participation in a fair and transparent manner. Governments must seek to promote inclusion and diversity, support the representation of young people, women and other under-represented groups in public life and policy consultation. Fine-tuning consultation and engagement practices could improve transparency and trust in public institutions, says the report. Governments must also level the playing field in lobbying. Less than half of countries have transparency requirements covering most of the actors that regularly engage in lobbying.

 Strengthening governance must be prioritised to tackle global challenges while harnessing the potential of new technologies. In 2018, only half of OECD countries had a specific government institution tasked with identifying novel, unforeseen or complex crises. To be fit for the future, and secure the foundations of democracy, governments must be ready to act at speed and scale while safeguarding trust and transparency.

 Governments must also learn to spend better, according to Government at a Glance 2021. OECD countries are providing large amounts of support to citizens and businesses during this crisis: measures ongoing or announced as of March 2021 represented, roughly, 16.4% of GDP in additional spending or foregone revenues, and up to 10.5% of GDP via other means. Governments will need to review public spending to increase efficiency, ensure that spending priorities match people’s needs, and improve the quality of public services.

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Sweden: Invest in skills and the digital economy to bolster the recovery from COVID-19

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Sweden’s economy is on the road to recovery from the shock of the COVID-19 crisis, yet risks remain. Moving ahead with a labour reform to facilitate adaptation in a fast-changing economic environment, and investing in digital skills and infrastructure, will be crucial to revive employment and build a sustainable recovery, according to the latest OECD Economic Survey of Sweden.

The pandemic triggered a severe recession in Sweden, despite mild distancing measures and swift government action to protect people and businesses. GDP fell by less than in many other European economies in 2020, thanks to reinforced short-time work, compensation to firms for lost revenue and measures to prop up the financial system, but unemployment still rose sharply. Solid public finances provided room for further stimulus in 2021 to buttress the recovery.

 The Survey recommends maintaining targeted support to people and firms until the pandemic subsides, then focusing on strengthening vocational training and skills and increasing investment in areas like high-speed internet and low-carbon transport. Addressing regional inequality, which is low but rising, should also be a priority as the recovery takes hold.

 The Survey shows that Sweden has been among the most resilient OECD countries in the face of a historic shock. Yet, like other economies, it faces challenges from demographic changes and the shift to green, digital economies. Investments in education and training, and labour reforms along the lines negotiated by the social partners, will support job creation and strengthen economic resilience. Building on Sweden’s leadership in digital innovation and diffusion will also be key for driving productivity.

 After a 3% contraction in 2020, interrupting several years of growth, the Survey projects a rebound in activity with 3.9% growth in 2021 and 3.4% in 2022 as industrial production resumes and exports recover. The recovery in world trade is bolstering the Swedish economy, however the country remains vulnerable to potential disruptions in global value chains.  

The pandemic has aggravated a mismatch in Sweden’s job market, with unfilled vacancies for highly qualified workers coinciding with high unemployment for low-skilled workers and immigrants. The public employment service needs strengthening to provide better support to jobseekers, including immigrants and women, and labour policies should strike the right balance between supporting businesses and workers and supporting transitions away from declining businesses towards growing sectors.

A rising share of youths and older people in the population, especially in remote areas, is affecting the finances of local governments, which provide the bulk of welfare services. Strengthening local government budgets and ensuring equal welfare provision across the country will require providing tax income to poorer regions more efficiently and raising the economic growth potential across regions through investments in innovation. Improving coordination between government entities and reinforcing the role of universities in local economic networks would help achieve that aim.

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