00:00 Good morning,
00:01 afternoon,
00:01 or evening,
00:02 wherever you are in the world.
00:04 I would like to thank the organizers of
00:06 the Delphi Economic Forum for inviting me today,
00:09 and I'm thrilled that this excellent and prestigious annual event
00:13 can take place under such trying circumstances in 2021.
00:17 I am delighted to speak on the important topic of leveraging green opportunities
00:22 of the post-pandemic recovery in Europe.
00:25 The COVID-19 crisis continues to cause enormous loss of life worldwide,
00:31 with over 3 million dead to date
00:33 as infections still rise at an alarming rate in many countries.
00:37 Since the pandemic began,
00:39 34% of all cases globally have been in the Europe and Central Asia region.
00:44 10 of the 12 countries with the highest case count worldwide are in the region.
00:50 The pandemic has not
00:51 been the only shock to countries in Europe and Central Asia.
00:55 The region has also been impacted recently by natural disasters,
00:59 political upheaval,
01:00 and conflict.
01:01 In Greece's neighborhood,
01:03 Albania,
01:04 Croatia,
01:04 Turkey,
01:05 and Greece
01:06 have all experienced major earthquakes in the past 18 months.
01:11 In addition to the health crisis,
01:13 the pandemic has triggered a worldwide economic crisis.
01:18 Although global economic activity has picked up this year,
01:22 GDP is not likely to recover for some time,
01:25 and it is likely to be uneven across the world.
01:29 The World Bank estimates
01:31 that economic activity contracted by 2% in the
01:35 Europe and Central Asia region in 2020.
01:38 Economies with strong trade or financial linkages to the euro area
01:43 and those heavily dependent on services
01:45 and tourism were the hardest hit.
01:49 Last year's economic contraction could push
01:52 an additional 6 million people into poverty
01:55 based on
01:56 the $5.50 a day poverty line
01:59 commonly used in upper middle income countries.
02:03 We are also seeing signs
02:05 that children and women are being disproportionately affected by the crisis.
02:10 Across Europe and Central Asia,
02:12 the learning losses resulting from the COVID-19
02:15 pandemic is estimated to be as much as
02:18 30 PISA points.
02:19 This is equivalent
02:21 of losing a whole year of schooling.
02:23 A likely outcome for many young people is reduced access to higher education,
02:29 lower labor market participation,
02:31 and consequently lower future earnings.
02:35 A World Bank survey on COVID-19 has revealed that 76%
02:39 of women were mostly or solely responsible for household chores
02:44 and home schooling
02:45 during the pandemic.
02:47 Women with less education were disproportionately hit by
02:50 the unequal division of chores within families,
02:54 and a larger proportion of women work in sectors that were forced to close.
02:59 Billions of dollars have been spent on
03:01 recovery programs to protect the global economy.
03:05 At the World Bank,
03:06 our COVID-19 emergency response has been fast and decisive
03:11 in delivering support to developing countries
03:14 with a focus on helping the poorest
03:16 and the most vulnerable.
03:19 World Bank programs,
03:20 normally around $42 billion per year,
03:23 grew last calendar year to over $70 billion to meet intensified client demand.
03:29 Over 60% of our new operations are directly in response to the COVID crisis,
03:34 but our work is far from finished.
03:36 Our ongoing support to clients must also focus on green,
03:40 resilient,
03:41 and inclusive transformations
03:43 that will help economies capitalize
03:45 on future opportunities while protecting against future potential shocks.
03:51 Home to 10 of the world's 20 most carbon intensive economies,
03:56 the Europe and Central Asia region has entrenched climate
03:59 and environmental challenges.
04:02 Natural resources,
04:04 air,
04:04 water,
04:05 and forests
04:06 are being depleted at unsustainable rates.
04:10 In fact,
04:10 1 in 8 deaths in Europe are attributable to air pollution.
04:15 In the Western Balkans,
04:16 it is 1 in 4 deaths.
04:19 As countries strive for a post pandemic recovery,
04:21 we have an opportunity to build back our socioeconomic fabric in
04:25 a way that ensures sustainable growth for generations to come.
04:30 And at the heart of this opportunity is a green transition.
04:34 Between 1990 and 2020,
04:36 greenhouse gas emissions in the EU
04:39 fell by roughly 23% even as the economy grew by approximately 61%.
04:46 EU countries effectively succeeded at decoupling growth and emissions.
04:52 Today,
04:53 Europe continues to be at the forefront of the green
04:55 transition and has demonstrated that
04:57 it is possible to simultaneously decarbonize
05:01 and maintain economic growth.
05:03 Through the European Green Deal,
05:05 the EU has made clear and bold
05:07 policy and financial commitments to decarbonisation,
05:11 climate resilience,
05:12 natural capital,
05:13 and social inclusion.
05:15 Many countries in the region are using recovery programs
05:18 to initiate and accelerate programs to promote energy efficient housing
05:23 and sustainable transport.
05:25 These can deliver jobs in the short term
05:28 and support inclusion while addressing two
05:31 of the biggest sources of carbon emissions.
05:34 Governments are stepping up investments in renewables
05:38 to support increasingly ambitious climate actions
05:41 under the 2015 Paris Agreement.
05:43 This includes programs to explore
05:46 advanced technologies such as
05:48 energy storage and hydrogen.
05:51 A green transition brings multiple opportunities
05:55 improved environmental quality,
05:58 health and well-being,
05:59 and transformed and modernized industry and infrastructure,
06:04 but also accelerated economic diversification
06:07 and competitiveness,
06:09 new jobs and strength and resilience.
06:12 But reaping these gains will require substantial investment.
06:16 Some countries are already taking action.
06:19 Take Greece for example.
06:21 The country's new economic plan for a post-COVID recovery,
06:25 Greece 2.0,
06:27 includes green and digital investments to support climate action,
06:31 energy transition,
06:32 and digital transformation.
06:35 The plan also focuses on the tourism,
06:37 agriculture,
06:38 and renewable energy sectors,
06:41 which can contribute substantially to the country's move towards
06:45 climate neutrality.
06:48 For developing countries,
06:49 COVID-19 is compounding the risks posed by climate change.
06:54 That's why at the World Bank
06:56 we are redoubling efforts to marshal our resources to help client countries,
07:02 including through a new climate change action plan.
07:06 We are already the largest provider of climate finance
07:10 to the developing world
07:11 with 83 billion committed over the last 5 years,
07:15 and over the next 5 years,
07:17 35% of the financing within our investments will
07:21 go towards supporting developing country climate benefits.
07:25 Over the same period,
07:26 half of our financing will be dedicated to adaptation measures
07:31 to help countries get ahead of the challenges.
07:35 We have made bold commitments
07:37 under the new climate change action plan.
07:41 We recently announced it and we are
07:43 matching those commitments with bold solutions.
07:47 Here is how we are doing so in Europe and Central Asia.
07:51 One moving away from coal,
07:54 we are ramping up our support to help countries and regions shift away from coal.
07:59 This means managing the social and economic
08:02 consequences by working with communities and local authorities
08:06 in partnership with national governments
08:09 to ensure that the transition is just and inclusive.
08:13 For example,
08:14 the World Bank is supporting the European Commission's.
08:18 €18 billion just transition fund to help member states,
08:23 particularly in Central,
08:24 Eastern and Southern Europe,
08:26 meet the EU's climate neutrality goal by 2050.
08:29 Our 2nd measure is measuring progress.
08:32 We are launching new intelligence products to
08:35 monitor progress and identify areas for improvement.
08:38 A key new product,
08:40 the Country Climate and Development Reports,
08:43 will support preparation and implementation
08:47 of countries'
08:48 nationally determined contributions,
08:50 or NDCs,
08:52 and the third measure
08:53 is getting innovative.
08:55 We are supporting countries
08:57 through results-based lending for those undertaking key policy
09:00 and institutional reforms to accelerate climate action.
09:04 As such,
09:05 the bank is leading the way for other institutions
09:07 to also come in and stepping up climate related investments.
09:13 Translating bold climate objectives into policies and investments
09:17 will require close attention to individual country circumstances
09:22 and also strong cooperation between national governments
09:26 and international institutions.
09:29 It will require urgent investments at scale in all forms of capital,
09:33 be it human,
09:34 physical,
09:35 natural,
09:36 and social,
09:37 to address structural weaknesses and promote growth.
09:40 This will include significant reforms of fiscal systems
09:44 which will be needed to mobilize domestic resources
09:47 in a way that promotes inclusiveness and helps finance the transition.
09:52 In addition to strong private sector involvement.
09:56 The international community
09:58 faces daunting challenges with COVID-19 and climate change,
10:03 both imposing crisis of global proportions.
10:06 A strong and coordinated response is therefore required.
10:11 I'm optimistic
10:12 in times of crisis opportunity also presents itself.
10:17 We as a global community must take this unprecedented opportunity
10:21 to protect the world's human and natural capital
10:24 while also reducing poverty and inequality in our societies
10:29 and delivering prosperity for all.
10:32 Thank you.
- add-style
- lp-body-content