New Zealand has a long history of supporting its close neighbors in the Pacific, both in times of disaster and emergencies, and to help improve the lives of many thousands across the region.
On Waitangi Day, the national day of New Zealand, we take a look at three key World Bank projects in the Pacific, and how New Zealand’s support has been integral to making them happen.
– making aviation the world’s seventh largest emitter - a number anticipated to rise exponentially in the coming decades as more and more people choose to fly to their destinations. Today, an aircraft with 300 passengers traveling from Paris to New York emits approximately 100 tons of carbon dioxide, or as much as emissions from 22 cars in a year. And because the emissions happen higher up in the atmosphere, the impact on global warming is greater than emissions on the ground.
Earlier this month, 191 countries belonging to the International Civil Aviation Organization (ICAO) adopted an agreement to stop future emissions from rising above 2020 levels. This is the latest measure by the industry aimed at curbing emissions, a step in the right direction given that air traffic is expected to double by 2030.
We in the transport sector have an important role to play in helping ensure inclusive development and mobility by removing access barriers. Recent work done in the Pacific Islands provides us with a relevant set of tools which we can be readily applied on our projects to achieve this inclusiveness.
The idea that there are untapped opportunities for improving the energy efficiency of individuals and homes is common. Energy efficient windows, lightbulbs, and appliances are sold worldwide. People are advised to “turn off the lights when you leave a room,” and schemes have been introduced to reduce energy consumption by tapping into social psychology. But what about large firms? Or entire industries? Companies, after all, want to minimize costs to save money, don’t they? How about airlines, whose bottom lines are subject to the international price of fuel?
It seems rational, but the International Energy Agency does not mention the aviation sector in its Energy Efficiency Market Report, nor does Kinsey in their comprehensive catalog of potential energy efficiency measures. Most reports (that I could find) focus on regulation of commercial enterprises. This is a shame. The environmental impact of aviation is clear: aircraft engines emit heat, noise, particulates, CO2, and other harmful gases that contribute to climate change. Despite more fuel-efficient and less polluting turbofan and turboprop engines for airplanes as well as innovations in air frames, engines, aerodynamics, and flight operations, the rapid growth of air travel in recent years has contributed to an increase in total aviation pollution. In part, this is because aviation emissions are not subject international regulation thus far and because the lack of global taxes on aviation fuel results in lower fares than one would see otherwise.
Interestingly, although perhaps not surprisingly, the National Bureau of Economic Research just released a working paper that suggests airlines’ fuel consumption can be reduced if they “nudge” the pilots to use less fuel, using behavioral interventions.
Air transport is an increasingly critical area for trade and trade facilitation. As such, our World Bank trade teams are always searching for global good practice and promising policy results.
This search recently brought us to Armenia, where an “Open Skies” policy has been in place since late 2013. For a country with a long legacy of tight regulations in its commercial aviation market, this new policy signaled a sharp break from tradition.
Although there are no single accepted definitions of Open Skies, it refers to a set of provisions typically agreed on a bilateral basis, that enable each party to set freely the number of flights, carriers, types of aircraft and destinations; but also pricing freedom, as well as establishing the conditions for fair competition and provisions for carriers to engage in commercial cooperation.
Armenia’ Open Skies policy is particularity important when considering the country’s historically limited connectivity with international markets – partly determined by geography, and partly determined by geopolitical considerations. Besides being landlocked, the country has open land borders with only two of its four neighboring countries.
The World Bank employs a variety of specialists in different disciplines, often with abstract and hard to understand titles. Not me. When people ask what I do for the Bank I say “I build roads”. This often brings laughs from other Bank staff, but it’s true.