New York City, 24 September 2024
Ladies and gentlemen,
In recent years the world has faced multiple crises. The Covid-19 pandemic made us aware of our interconnectedness, claimed lives and wrecked economies. Recovery has been uneven. Then war returned to European soil when Russia attacked Ukraine. Meanwhile, the situation in the Middle East is escalating, the Taliban have returned to power in Afghanistan, and military coups have multiplied in Africa.
All these events have had broader regional, and often global implications. As it is often the case with crises, the most vulnerable have been hit the hardest. More than half of the Low-Income Countries are in debt distress or at high risk of it. The external shocks come on top of longer-term challenges and trends:
- Climate change and biodiversity loss.
- Shifting demographics.
- Digital transformation.
Tensions are high, and geopolitics and geoeconomics are more intertwined than ever. Today’s world is hyperconnected, with deeply integrated trade links and financial markets. Supply chains can be easily disrupted or even weaponised.
Dear colleagues,
What should we make out of this? In the European discourse, resilience has become the key word. Our analysis is three-folded.
First, we need to work on our preparedness and strategic autonomy on critical sectors. We cannot rely on one supplier. We need to diversify our supply chains, make them more resilient and forge new partnerships with resource rich countries. We need to help our partner countries to do the same to avoid future pandemics and situations where supply chain shocks put at risk global food security.
Second, we need to pay attention to longer-term resilience – meaning sustainability – of our supply chains. European consumers demand to know under which conditions the goods they consume were produced. One could argue that we have a moral duty to care. Moreover, if we are serious about solving global challenges – as we are – we cannot externalise our problems and our emissions. Fight against climate change is a case in point. We need to be ambitious in Europe. But if we don’t help the rest of the world to follow, the battle is lost. The EU has introduced new legal requirements, such as the Corporate Sustainability Due Diligence Directive. It requires companies to conduct appropriate human rights and environmental due diligence along their supply chains. The objective is not to impose, but to work together with partner countries and businesses for greater sustainability – which has the potential to boost productivity and trade. We have close dialogue with partner countries, and we have implemented measures to help companies to meet the standards. We have also launched a Team Europe Initiative on Sustainability in Global Value Chains, which includes an EU Helpdesk to guide stakeholders.
Third, we need to support local value creation in our partner countries in the Global South. It is the only way to bring about stability and development.
Dear Friends,
The three strands I described come together under the EU’s Global Gateway investment strategy. With Global Gateway, we aim to mobilise up to €300 billion in sustainable private and public investments by 2027. Our flagship projects support the green and digital twin transition. We have projects on digital, energy, transport, health, education, and research sectors.
Global Gateway focuses not only on investments in hard infrastructure, but also soft measures – like training, improving the regulatory environment, and capacity building to enhance the local ecosystem and generate local value. Global Gateway is about resilience. We want to build mutually beneficial partnerships that advance the Sustainable Development Goals.
Our flagships follow the highest social and environmental standards. Let me give you an example of Global Gateway in action. Namibia has world class solar and wind resources and holds 30% of the minerals necessary for the green transition.
Meanwhile, the EU seeks to make Europe the first climate neutral continent by 2050 and needs alternative energy resources and critical raw materials to support its green transition.
Last year, The EU and Namibia signed a partnership agreement which is underpinned by EUR 1 billion investment. We are offering skills training, so that Namibians can benefit from the job opportunities created by green industrialisation.
The regional dimension has also been taken into consideration. In the past 7 years, we have allocated more than EUR 400 million to help the African Continental Free Trade Area take shape. By developing Regional Value Chains, we aim to foster a transition to a resilient, competitive, and economically integrated Africa. Our goal is to diminish the continent’s reliance on unprocessed goods and enhance its resilience against external shocks.
Dear Friends,
Thank you for your attention. I would like to leave you with this message: There is a temptation to focus on challenges. But sustainable development is not only about overcoming challenges. It’s also about seizing opportunities. Opportunities to build a more resilient, fair and prosperous world.
Source – EU Commission