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G7 recognizes need for deep emissions cuts. Now for action

Rachel Kyte's picture
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G7 meeting in Germany. Bundesregierung/Gottschalk

This weekend, the leaders of the G7 committed to a series of actions that mark their first serious recognition of the economic transformation that is ahead of us.
Collectively, they recognized the need to decarbonize the global economy, enshrining in economic cooperation what the scientists in the IPCC told us last year in their Fifth Assessment Report. They called for ambition at the Paris climate talks this year – not new, but they recognized that they, individually and collectively, need to be in the upper part of the ambition bracket and that that means at least a “transformation of the energy sector by 2050.”
They talked about the mobilization of capital for this transformation, as well as ending the increasingly profligate use of harmful fossil fuel subsidies. Recognizing the need for an orderly transition to low-carbon growth as quickly and as smoothly as possible, they took on some degree of leadership around the pledge to provide $100 billion in climate finance for developing countries from public and private sources before 2020. More on that in a moment.

Rachel Kyte: Takeaways from the Spring 2015 Climate Ministerial

Rachel Kyte's picture
Spring Meetings 2015

At this year's climate ministerial of the World Bank Group/IMF Spring Meetings, 42 finance and development ministers discussed phasing out fossil fuel subsidies, putting a price on carbon and mobilizing the trillions of dollars in finance needed for a smooth, orderly transition to a low-carbon economy. World Bank Group Vice President and Special Envoy for Climate Change Rachel Kyte describes the conversations in the room and the key takeaways.  

Ebola: $1 billion so far for a recovery plan for Guinea, Liberia, and Sierra Leone

Donna Barne's picture

With the Ebola outbreak waning but not yet over, the three most affected countries must now find ways to rebuild their economies and strengthen their health systems to try to prevent another health crisis in the future.

To that end, the presidents of Guinea, Liberia, and Sierra Leone came to the World Bank on April 17 to ask for help funding an $8 billion, 10-year recovery plan for the three countries, with $4 billion needed over the next four years to accelerate recovery. More than $1 billion was pledged by the end of a high-level meeting at the start of the World Bank Group -IMF Spring Meetings – including $650 million from the World Bank Group.

Future Development Forecasts 2015

Shanta Devarajan's picture

Despite their mixed record last year, Future Development's bloggers once again offer their predictions for 2015.  Eight themes emerge.
1. Global growth and trade. The US economy will strengthen far above predictions. Together with lower oil prices and a better business climate in emerging markets, this will create substantial positive spill-overs, including to the smaller export-oriented Asian economies, boosting the growth of their manufactured exports well above recent trends. The US will look to open new free trade agreements in Asia—India may try to join—and seek opportunities to do the same in Africa. Meanwhile, Germany will face increasing resistance to the free-trade agreement with America (TTIP), just as Angela Merkel celebrates her 10th year in office.

How Well did We Forecast 2014?

Shanta Devarajan's picture

A year ago, we polled Future Development bloggers for predictions on the coming year (2014).  Looking back, we find that many unforeseen (and possibly unforeseeable) events had major economic impact. 

We missed the developments in Ukraine and Russia, the spread of the Islamic State in Iraq, the outbreak of Ebola in West Africa, the collapse in oil prices and their attendant effects on economic growth.  At the same time, we picked the winner of the soccer World Cup, and got many of the technology trends right. Perhaps economists are better at predicting non-economic events.

Here’s the scorecard on the seven predictions made:

Creating and Sustaining an Essential Partnership for Food Safety

Juergen Voegele's picture
Photo by John Hogg / World BankThis week, the Global Food Safety Partnership will hold its third annual meeting in Cape Town, just ahead of the holiday season when food safety issues are not on everyone’s minds. They should be. Unsafe food exacts a heavy toll on people and whole economies, and is cited as a leading cause of more than 200 illnesses. However, safe food does not need to be a luxury—which is something that motivates and animates our work at the World Bank Group. Food availability alone does not guarantee food safety. Increasingly, we are learning how food safety affects people, and disproportionately impacts the lives and livelihoods of poor people.This growing awareness about food safety is partly because of the food scares that have shaken many countries in recent years. Food safety incidents occur anywhere in the world—both in industrialized and developing countries alike and in countries large and small...

Quote of the Week: Angela Merkel

Sina Odugbemi's picture

"I am regarded as a permanent delayer sometimes, but I think it is essential and extremely important to take people along and really listen to them in political talks.”

Angela Merkel, the Chancellor of Germany since 2005 and the leader of the Christian Democratic Union(CDU), a German political party, since 2000. She is the first woman to hold either office. Merkel entered politics in the wake of the Revolutions of 1989 and was formerly a physical chemist in the German Democratic Republic (East Germany).

The Best School for Entrepreneurship is on the Job, Not in the Classroom

Wolfgang Fengler's picture

This has been a very engaging debate and I want to thank Omar as well as the organizers and contributors. In this concluding statement, I’d like to highlight both those areas where we agree and those where we still end up with different perspectives.

We can agree on the following:

Why Jobs Need to Come Before Skills

Wolfgang Fengler's picture

The Western Balkans Case

When I travel to the Balkans for work, the journey typically begins with a cab ride to the airport from my home in Vienna. The taxi company I use is run and operated by Serbs living in Austria. It’s a great company: very reliable, clean cars and friendly drivers who are always keen to discuss the politics and economics of the Balkans. When I arrive in Belgrade, I’m picked up by drivers who have very similar skills to those of their compatriots in Vienna. However, the former have better salaries and opportunities simply because the company they work for operates in an environment that is much more conducive to nurturing and growing a business. In Austria, unlike in Serbia, a company can operate efficiently, is subject to a relatively fair tax treatment and knows the industry standards it needs to comply with. In turn, this explains to a large extent why workers, at any given levels of skills, are more productive in Austria – a basic intuition which William Lewis develops in his book The Power of Productivity, projecting the gains that Mexican construction workers make when moving to the USA.

Business Leaders & Finance Ministers Changing the Conversation to Drive Clean Investment

Rachel Kyte's picture

Executives from Alstom, the Swedish pension fund AP4, Deutsche Bank, and the French pension fund ERAFP joined finance ministers for an informal climate ministerial discussion about carbon pricing during this year's World Bank Group/IMF Annual Meetings. After the meeting, Rachel Kyte, the World Bank Group's vice president & special envoy for climate change, described the conversation and some of the takeaways.