the_bridge_tank, auteur sur The Bridge Tank

G20/Business 20: Second meeting of the B20 India Task Force on Energy, Climate Change & Resource Efficiency

Posted on 15 March 202321 March 2023 by the_bridge_tank

The Bridge Tank’s presence in New Delhi, India, for the CII Partnership Summit 2023 from 13-15 March saw Joel Ruet, President, The Bridge Tank, take part in the second meeting of the B20 India Task Force Energy, Climate Change & Resource Efficiency. As a member of the task force, The Bridge Tank had participated in its first meeting during the Inception Meeting of the Business 20 (B20) Engagement Group of the G20, on January 24th, 2023, in Gandhinagar, India.

The task force’s second meeting, on March 15^th, raised three central topics: (1) accelerating net zero transitions, (2) a greater overall contribution of green energy, including green hydrogen and ammonia, and (3) an improved access to finance for these transitions. In keeping with one of the objectives of India’s G20 presidency, the task force has stressed the importance of including developing countries in these developments.

Notably, the stress was put on the fact that, while global ESR and non-financial standards as well as technology push through state support is needed, there is a capital cost advanatge for some countries which others do not have. Therefore, even more than human resources support or technology transfer assistance, to include developing countries, there is rather a need for a financial level-playing field, some argued, among which The Bridge Tank. While recommandations that Multilateral Developement Banks and private funds address this seriously were made, part of the debate revolved around the idea of focusing public money onto de-risking, and, The Bridge Tank argues, at involving local, national, and regional financial ecosystems into then de-risked project pipelines.

Besides, if one ventures out of the solutions only fitted for G20 countries – as India’s G20 presidency wishes to have G20 adhere to Africa’s issues for instance – then there is an debate opening up on the unequal data capacity across the world, which may add-up to capital cost inequality. This is a line of contribution we will keep feeding into the task force until its third meeting in April and final meeting in June.

Discussions and feedback between the task force’s first and second meeting raised numerous additional issues; these include establishing global standards for hydrogen, assessing the life cycle and scope for recyclables, setting provisions for domestic and international transactions on carbon and facilitating access to finance and technology. Furthermore, it is crucial to include and recognize the role mico, small, and medium entreprises have to play. As noted by some members of the task force, clear results and actions are required, as the cost of inaction on adaption to climate change would be dire, notably for coastal regions.

The meeting was convened by some of India’s leading industry captains:

Mr Sajjan Jindal, Chairman & Managing Director, JSW Group, chair of the task force
Mr Vineet Mittal, Chairman, Avaada Group, vice chair of the task force
Mr T V Narendran, Managing Director, Tata Steel, vice chair of the task force
Mr Chrstian Cahn von Seelen, Executive Committe memebrr Volskwagen, vice chair of the task force
Mr Jean-Pierre Clamadieu, Chairman of the Board, ENGIE, vice chair of the task force (represented by his head of staff)

G20-Business20-CII Partnership Summit 2023: The Bridge Tank discusses resilient green supply chains

Posted on 15 March 202316 March 2023 by the_bridge_tank

On the last day of this year’s CII Partnership Summit 2023 in New Delhi, India, Joel Ruet, President, The Bridge Tank, took part in a session on ‘Building Resource Efficient & Resilient Green Supply Chains.’

The 28^th edition of the summit organised by the Confederation of Indian Industry (CII) from 13-15 March 2023 dedicated to questions of global trade, economy, competitiveness, sustainability and technology was convened with the theme “Partnerships for Responsible, Accelerated, Innovative, Sustainable, and Equitable Businesses.” This comes as the CII is serving as secretariat of the B20 (Business 20) during India’s 2023 G20 presidency. The Bridge Tank, represented by its president Joel Ruet, was invited by the CII to join in the high level discussions in New Delhi.

On March 15^th, Joel Ruet sat down with Dr Martin Keller, Lab Director & Alliance President, National Renewable Energy Laboratory (NREL), and Mr Ashwani Kumar, CEO, Suzlon Group, in a panel discussion moderated by Mr Christian Cahn von Seelen, Member of the Board and Executive Director, Volkswagen Group Sales India on ‘Building Resource Efficient & Resilient Green Supply Chains.’

During the discussions, Dr Joel Ruet noted that supply chains in a “stabilized world” needed optimization. However, in current times of uncertainty and instability, there is a real need to diversify supply chains and bring in options across countries, industries, and technologies.

This idea was echoed by Dr Martin Keller, who emphasized the need for global synergies on diversifying supply chains with regard to raw material availability, manufacturing capabilities, adoption of clean energy, circular economy & green skilling.

Mr Cahn von Seelen and Mr Kumar highlighted the role of green energy in these resilient supply chains. Mr Cahn von Seelen stressed how important it now was for the world to focus on sustainable energy supply chains to replace petrol. The example Europe has set by entirely changing its energy mix in the span of one year, following Russia’s attack on Ukraine, has shown that drastic changes are possible.

Mr Kumar went a step further, adding that we needed to look not only at how much of our energy consumption was green but how green the generated kilowatt-hour actually was. Such a process must start at R&D stage, enabling greater efficiency and providing a key contribution to green supply chains.

Hydro-diplomacy : Detailed report of The Bridge Tank’s High Level Panel on hydro-diplomacy

Posted on 22 February 202322 February 2023 by the_bridge_tank

Two months after holding its high-level panel on hydro-diplomacy in Paris, on December 6th, 2022, The Bridge Tank looks back on the discussions and captivating ideas brought to the table by the conference’s participants. These are the ideas and contributions that we shall bring to the fore during the UN Water Conference in New York from March 22nd to 24th, 2023, where The Bridge Tank’s side event proposal on hydrodiplomacy just got labelled into the officlal program.

Expanding on the main conclusions of the day’s discussions and following the launch of the World Water for Peace Conference, The Bridge Tank is happy to release the conference proceedings with a verbatim report of each one of the sessions of the conference.

Words of Introduction

This opening session set the stage for the day, giving the floor to the High Patrons and conveners of the conference.

This introduction provided an assessment of the existing international & United Nations system on questions of water. It also introduced existing hydro-diplomacy initiatives and experiences from non-conflictual and integrated water co-management efforts, which have contributed to a renewed and enlarged practice of hydrodiplomacy.

Moderator: Joël RUET, Chairman, The Bridge Tank, Interdisciplinary Institute for Innovation, Ecole Polytechnique

Irina BOKOVA, Co-chair of the Global Commission on Science Missions for Sustainability, International Science Council (ISC), Former Director General, UNESCO and Board Member of The Bridge Tank
Erik ORSENNA, Chairman, Initiative for the Future of Great Rivers (IAGF Initiative pour l’Avenir des Grands Fleuves), Academician at Académie Française
Hamed SEMEGA, Board Member, The Bridge Tank, Former High Commissioner, Senegal River Basin Organisation (OMVS)

For the session’s full verbatim report:

Session 1: Testimonies of progressive water politics

The first thematic session of the day gave the floor to political decision makers from around the globe, allowing them to share and discuss their experiences with water and its management. This provided an insight into existing practices and offered new ideas towards more progressive water politics and a renewed approach to hydro-diplomacy.

Moderator: Stéphane GOMPERTZ, Board Member, The Bridge Tank, former Ambassador for COP21 French Presidency

Hakima EL HAITE, Board Member, The Bridge Tank, former UNFCCC Champion for climate, Minister of Environment, Morocco & Host of COP22 (on Zoom)
Runa KHAN, Founder & Executive Director, Friendship NGO, Bangladesh (on Zoom)
Brice LALONDE, Former UN Under Secretary, Former Minister of Environment, France
Sidi TOURE, Minister, Ministry of Animal Resources and Fisheries, Côte d’Ivoire (pre-recorded address)
Diaka SIDIBE, Minister, Ministry of Higher Education, Scientific Research and Innovation, Guinea (pre-recorded address)

For the session’s full verbatim report:

Session 2: Water & Development

This second session on water and development turned to international aid and development actors. Their concrete experiences and field knowledge allowed for a dynamic dialogue around existing development initiatives and the challenges faced as part of their activities on water-related topics.

Moderator: Marie-Laure VERCAMBRE, General Director, French Water Partnership

Annukka LIPPONEN, Chief Specialist on Water Resources Management, Ministry of Agriculture and Forestry, Finland
Claus SORENSEN, Former Director General, European Commission’s Humanitarian Aid and Civil Protection Department (ECHO) (on Zoom)
Mats KARLSSON, Former World Bank Vice President & Former State Secretary for development, Ministry for Foreign Affairs, Sweden
Lars Andreas LUNDE, Head of Norad’s Section for Nature and Climate, The Norwegian Agency for Development Cooperation (NORAD) (on Zoom)
Pascal DELISLE, Head, Economic, Development, Environment and Digital Issues, European External Action Service (EAES), Geneva (on Zoom)
Lionel GOUJON, Head of division, Water and Sanitation Division, French Development Agency (AFD)
Eric KUINDERSMA, Senior Policy Advisor Water Governance, Waterschap Rivierenland, The Netherlands

For the session’s full verbatim report:

Session 3: Innovative tools for a revisited hydro-diplomacy

This last panel discussed the diversity of tools at the service of hydro-diplomacy, be they economic, technological, social, legal or political ones. Discussing definitions of hydro-diplomacy and what to include in it to enlarge its practice, the session addressed innovative ways to involve the variety of sectors, actors, resources, and territories needed for a sustainable development and co-management of water.

Moderator: Christian BRETHAUT, Scientific Director, Geneva Water Hub (GWH), Global Observatory for Water and Peace (GOWP)

Zulfiqar BHUTTA, Founding Director, Institute for Global Health and Development and the Centre of Excellence in Women and Child Health, Aga Khan University, Karachi (on Zoom)
Susanne SCHMEIER, Associate Professor, Water Law and Diplomacy, Institute for Water Education (IHE), Delft
Eric TARDIEU, Director General, International Office for Water (OIEau)
Suriya TURAYEVA, leading lecturer for “Environmental Protection and Rational Use of Natural Resources”, The University of World Economy and Diplomacy of Uzbekistan (on Zoom)
Arnab DAS, Director and Founder, Maritime Research Center (MRC), Pune
Mara TIGNINO, Lead Legal Specialist, Geneva Water Hub (on Zoom)

For the session’s full verbatim report:

G20/Business 20 : The Bridge Tank takes part in the B20 India Inception Meeting

Posted on 17 February 202320 February 2023 by the_bridge_tank

After Indonesia’s tenure in 2022, the turn of the year saw India assume the presidency of the G20 for 2023.

From 22 to 24 January 2023, the city of Gandhinagar in Gujarat, India, hosted the Inception Meeting of the Business 20 (B20) Engagement Group of the G20 to discuss the global economy and some of the most pressing issues facing our world with the business community. The meeting gathered Indian Ministers and delegates, as well as influential international business leaders and policy makers.

As a member to the B20, The Bridge Tank attended the summit in Gandhinagar, represented by its chairman Joel Ruet. Besides the public sessions at the Mahatma Mandir, the Inception Meeting notably marked the launch of the B20 Task Forces and Action Groups, to which The Bridge Tank will be an active contributor in the year to come.

Focussing its participation on three great themes: sustainability, research & innovation, and bridging the gap between Africa and the G20, at the invitation of the Indian Presidency of the G20, The Bridge Tank is now member to both the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, and the B20 India Action Council on African Economic Integration.

Setting the tone for India’s 2023 G20 presidency

Organised by the Confederation of Indian Industry (CII), which has taken up the B20 India Secretariat, the Plenary Sessions of the B20 Inception Meeting, held at the Mahatma Mandir on January 23^rd, set the tone for the summit and for India’s year presiding over the G20.

The inaugural session highlighted the vision, thematic priorities, and values which will drive the B20 India. Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), reminded participants of the acronym R.A.I.S.E – Responsible, Accelerated, Innovative, Sustainable and Equitable business – which will serve as the cornerstone of B20 India.

“The theme of the B20, which has been formed under the umbrella of G20 Presidency of India, is R.A.I.S.E. – Responsible, Accelerated, Innovative, Sustainable and Equitable business.”

Mr Chandrajit Banerjee

Director General, Confederation of Indian Industry (CII)

During his opening address on the requirements to deliver a successful B20 India, Mr N Chandrasekaran, Chair, B20 India, and Chairman, Tata Sons, stressed the role of reducing inequality thanks to digital transformation. He went on to underline some of the main priorities identified for B20 India, including sustainability, energy transition, mobility, biodiversity, water management and the UN SDGs.

"B20 presidency is an opportunity for India to showcase and share best practices as well as work towards developing specific recommendations on bringing equality using digital transformation.”

Mr N Chandrasekaran

Chair, B20 India & Chairman, Tata Sons

Sustainability and energy transitions: B20 India Taskforce on Energy, Climate Change and Resource Efficiency

The centrality of the fight against climate change and the place of energy transitions and sustainable development in the B20 India priorities were introduced during the plenary session by Mr Som Parkash, Hon’ble Minister of State for Commerce & Industry.

Minister Parkash said that “India, under G20 Presidency, needs to work towards prioritizing fight against climate change and environment degradation through efforts to reduce greenhouse gas emissions and promote clean energy.”

This priority, in line with B20’s R.A.I.S.E motto, was echoed one day later, on January 24^th, during the first meeting of the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, which The Bridge Tank attended as a member of the Task Force.

The meeting, chaired by Mr T V Narendran, B20 India Co-Chair of Taskforce on Energy, Climate Change and Resource Efficiency and CEO & MD Tata Steel Ltd, presented the task force’s priorities and expected outcomes.

Hoping to accelerate energy transitions, resource efficiency, and adaptation measures in G20 economies, the task force’s priorities were pointed out to be in broad alignment with G20 priorities on climate change.

The goal is thus to address the following key issues :

global net zero transitions;
energy security and energy access;
just transitions;
circular economy and resource efficiency;
climate finance and technology innovation;
adaptation and resilience.

“India, under G20 Presidency, needs to work towards prioritizing fight against climate change and environment degradation through efforts to reduce greenhouse gas emissions and promote clean energy.”

Mr Som Parkash

Hon’ble Minister of State for Commerce & Industry

The Task Force’s Priorities cover a variety of themes including:

Enhancing global cooperation in accelerating net-zero transition through global industry-specific coalitions, and channelling investments and financing towards global priorities and pathways;
Improving investments, development and commercialisation of green-energy technologies;
Improving climate finance through new financing pathways for energy transition, setting clear energy mandates for multilateral development banks, and harmonizing the development of national carbon markets;
Improving resource efficiency through regulatory frameworks, policies, business and financing models which encourage circular economy;
Implementing adaptation policies taking ecosystem-based approaches to provide resilient infrastructure, ensuring gender-inclusive adaptation, and mobilising finance for the implementation.

The expertise The Bridge Tank has accumulated over the years in energy trajectories and energy transitions, in addition to its various research and consulting projects centred on climate finance and blended finance but also contributing to the development of circular economy and sustainable development models will serve as valuable building blocks of The Bridge Tank’s contribution to the B20 Task Force, which will meet again on 14-15 March 2023.

Connecting Africa and G20: B20 India Action Council on African Economic Integration

Addressing B20 India’s efforts to represent the issues relevant to the global economy, Mr Sanjiv Bajaj, President of CII & Chairman & Managing Director, Bajaj Finserv Ltd, introduced the audience of the Plenary Session to the focused agenda and Action Council on the Economic Integration of Africa, which hopes to strengthen ties between African economies and the G20.

As a long-time advocate for a greater integration of the African continent in G20 actions and now a contributing member of the B20 India Action Council on African Economic Integration, The Bridge Tank salutes this initiative.

On January 24^th, the last day of the Inception Meeting, The Bridge Tank thus also took part in the introductory session of the B20 India Action Council on African Economic Integration, which discussed the objectives and priorities of the council.

The meeting raised three main expected outcomes to bolster the economic integration of the African continent:

The formulation of a Technical Assistance Facilities (TAFs) Programme by G20 members, in order to accelerate the AfCFTA implementation through technical and financial assistance to the 54 African nations
Commitments by G20 states to each enter into customized Preferential Trade Agreements with at least 20 African nations (with a minimum of 100 tariff lines on products or services being liberalized in each of these agreements)
Commitments by G20 states to each launch a minimum of 3 development finance programmes benefiting at least 5 African nations (either bilaterally or through multilateral institutions), covering themes like: industrial park programmes, energy or transport infrastructure projects, health, education and skilling initiatives, or micro, small, and medium enterprises funding programmes.

Expanding on these expected outcomes, Joel Ruet, Chairman, The Bridge Tank, put forward the idea of an origination fund for climate resilience & adaptation projects originating from and funded by the G20. In addition to that, the G20 could help derisk projects originated from African countries and companies.

The Bridge Tank will continue its efforts within both the the B20 India Taskforce on Energy, Climate Change and Resource Efficiency, and the B20 India Action Council on African Economic Integration in the coming months.

The Bridge Tank’s Davos Innovation Lunch 2023 : Fostering cooperation on biosecurity during the World Economic Forum

Posted on 9 February 202310 February 2023 by the_bridge_tank

On the last day of this year’s World Economic Forum in Davos and for the third edition in a row, The Bridge Tank held its now traditional “Innovation Lunch” on Davos’ Promenade, partnering with our board member Judit Arenas, APCO Worldwide, and the San Diego-based biotechnology company Illumina to discuss biosecurity and the prevention of bioterrorism.

Participants to this roundtable discussion included renowned specialists, researchers, and C-suite executives, including:

John Frank, Chief Public Affairs Officer, Illumina
Richard Hatchett, CEO, Coalition for Epidemic Preparedness Innovations (CEPI)
Matthew McKnight, General Manager, Biosecurity, Gingko Bioworks
Frank-Jürgen Richter, Chairman, Horasis
Megan Palmer, Executive Director of Bio Policy & Leadership Initiatives, Stanford University
Eric Christopher Cioe-Pena, Founding Director of the Center for Global Health of Northwell Health
Margery Kraus, Founder and Executive Chairman, APCO Worldwide
Raphael Schoentgen, Board Member, The Bridge Tank, and CEO, Hydrogen Advisors

The session’s moderation was carried out by none other than John Defterios, former CNN economic analyst and anchor, and senior advisor, APCO Worldwide, and Joel Ruet, Chairman, The Bridge Tank.

The COVID-19 pandemic revealed the real-life risk of bioterror and the disruption biological agents can cause to our societies. The participants to this luncheon discussion highlighted the fragility – if not the absence – of appropriate national and international biosecurity frameworks and the lack of necessary biosecurity infrastructure.

With the acceleration of technological innovation and the proliferation of unregulated laboratories for biological experimentation, the risks of bioterror or biowarfare must be taken up by the international community. To quote one of the speakers, “every war starts with one technology and ends with a different one.”

Parallels were notably drawn between biosecurity and national security & cyber-security, as efforts must start at the national level. Cooperation between public health and national security organisations will have to be strengthened, as both are directly affected by the disruptions caused by new pathogens or biological agents. To expand the range of actions and biosecurity safeguards, public sector efforts need to increasingly mobilise and support private sector solutions.

Due to health’s nature as a public good, communication, multilateralism, and coalitions will however also have to be bolstered. The sharing of data could be an entry point to international cooperation and the building of trust to prove that non-cooperation will have more dire consequences than the cost of cooperation.

The quality of the discussions and the ever-growing importance of biosecurity in the shaping of our world revealed the necessity to push these issues to the fore but also for The Bridge Tank to keep them on the agenda of the 2024 edition of the Innovation Lunch in Davos.

Davos 2023: The Bridge Tank’s takeaways from the World Economic Forum

Posted on 3 February 20235 February 2023 by the_bridge_tank

The third week of 2023 saw the world gather once again for the World Economic Forum in Davos. From January 16^th to 20^th, political, economic, and civil society leaders from around the globe met in the Swiss Alps to discuss the economic future of our world.

This year’s focus on “Cooperation in a fragmented world” proved a theme of particular interest for The Bridge Tank to exchange views with participants from all over the world on the state of international cooperation, particularly with regard to South-South and South-North cooperation.

The Bridge Tank was in Davos during annual meeting of the WEF, represented by its chairman Joel Ruet and board members Judit Arenas, from Mexico, Raphael Schoentgen, from Belgium, and Pranjal Sharma, from India.

This active presence on the ground saw our board members discuss the place of the Global South in the digital revolution, explore new financial mechanisms of South-North cooperation, organise events on global public goods, and provide an overview of the diverse ambitions and paths of major emerging markets.

The digital revolution and the Global South

A regulard speaker at the WEF, our board member Pranjal Sharma highlighted the role of the Global South, acting as a structuring force to shape the future. Pranjal Sharma particularly pointed to India’s role in strengthening digital economies in the Global South and the country’s efforts in bringing the digital revolution to new communities and new languages.

Building on this question of digital revolution, Mr Sharma convened a WEF panel discussion on “Tackling Harm in the Digital Era,” in which he addressed user safety in online environments and how to build safer digital spaces.

The high-level panel gathered the European Commission’s Vice-President for Values and Transparency, the UK’s Office of Communications Chief Executive, and the Deputy Prime Minister of Belgium to discuss regulatory frameworks and technological innovations to tackle harmful content, violence, and abuse online.

The discussion highlighted the challenges facing lawmakers, as Mr Sharma asked them how to manage digital harm at scale and how to ensure protection for communities not only in developed countries but also in emerging economies, as billions of people and new communities are coming online.

Blue Finance: International rivers as a vector of South-North cooperation

The WEF also allowed discussing new forms of South-North cooperation. One such innovative mechanism on the blue finance front was discussed during an exclusive event on “Innovative Impact Investing through Blue Peace Bond,” organised by the United Nations Capital Development Fund (UNCDF) and the Swiss Agency for Development and Cooperation (SDC) at the House of Switzerland.

The event, which Joel Ruet and Raphael Schoentgen attended, presented the Blue Peace Financing Program and the creation of the Blue Peace Bonds, which aim to facilitate access to capital for river basin organisations and similar local and regional entities working toward multi-stakeholder transboundary cooperation around water. This innovative tool to finance infrastructure and social development hopes to work as a peace dividend, by making water an entry point for peace and cooperation.

As pointed out by the interventions of Mr Ruet and Mr Schoentgen, this South-North cooperation must not only involve the Global North’s financial institutions but needs to incorporate the Global South financial institutions and financial services providers to serve as an opportunity for the Global South to develop and leverage its own financial ecosystem.

This session and the financial tool built on cooperation around water it presented came as a welcome contribution to The Bridge Tank’s research for new tools to mobilise within an expanded practice of hydro-diplomacy, just a few weeks after the launch of the World Water for Peace Conference.

The Bridge Tank’s Innovation Lunch 2023: Strengthening biosecurity cooperation

Concluding the week on the theme of cooperation, Joel Ruet and Judit Arenas joined forces on the last day of the forum to co-organise a luncheon discussion on Davos’ Promenade on the issue of biosecurity and bioterrorism. The event was the result of a partnership between The Bridge Tank, APCO Worldwide, and the American biotechnology company Illumina.

The session moderated by Joel Ruet and John Defterios, former CNN economic analyst and anchor, and senior advisor, APCO Worldwide, highlighted the fragility of national and international biosecurity frameworks and the lack of necessary biosecurity infrastructure, and called for greater public-private cooperation on this matter.

The select group of participants consisted of around 25 renowned biosecurity and cybersecurity specialists, high-level academics, and C-suite executives, like John Frank, Chief Public Affairs Officer, Illumina, Richard Hatchett, CEO, Coalition for Epidemic Preparedness Innovations (CEPI), or Frank-Jürgen Richter, Chairman, Horasis.

Focus on the pavilions and thematic sessions in Davos

The vibrant activity of the different national and corporate pavilions made for vivid discussions and for events on themes of interest for The Bridge Tank, i.e. emerging economies, sustainable development, and structuring energy transitions.

The India Lounge was an important meeting point at this year’s WEF. Joel Ruet attended a panel discussion on India’s environmental, social, and governance (ESG) investments and a business-government debriefing on the world’s – and particularly the US’ – readiness to reengage with China. One of the conclusions stressed that whether investments will remain in China or be relocated is something India will have to follow closely.⁦

This presence at the India Lounge was also an opportunity to meet with Samir Saran, President of the T20 Secretariat, and discuss The Bridge Tank’s involvement in the T20 during India’s 2023 G20 presidency. With themes of cooperation and inclusive growth at the heart of India’s presidency, The Bridge Tank will provide an active contribution to the T20 on themes of blue and green finance and bridging the gap between the African continent and the G20.

Indonesia: Setting the course for a net zero future

Indonesia, which only recently handed over the presidency of the G20 to India, proved to be very active in Davos as well.

The Indonesian pavilion thus hosted a session on “Indonesia Net Zero Pathway: Opportunity & Challenges,” on January 17^th.

A presentation by Muhammad Yusrizki, Chair of KADIN Net Zero Hub, Indonesia Chamber of Commerce, introduced some of the objectives and challenges ahead for Indonesia’s green transition, including how to finance the energy transition and de-risk investments in renewable sources in Indonesia but also the need for policies and institutional frameworks to accelerate the country’s journey to net zero.

Mr Yusrizki particularly stressed the need to protect and regenerate mangroves, as these have huge potential for carbon storage in a country home to more than 20% of the world’s mangrove areas.

Indonesia’s Coordinating Minister for Maritime and Investment Affairs, Luhut Binsar Pandjaitan, introduced Indonesia’s pathway and sectoral priorities to achieve net zero by 2060. Such a pathway would be based on industrialisation and economic development, Mr Pandjaitan said, as he reminded attendees that Indonesia’s per capita CO2 emissions were lower than the global average.

Indonesia’s green economy will be built on five pillars:

a decarbonized power sector – helped by the Just Energy Transition Partnership (JETP), which hopes for renewable energy to comprise 34 percent of Indonesia’s power generation by 2030;
low-carbon transportation – through the development of electric vehicles;
alternative fuels, e.g. biofuel;
green industries, e.g. by developing an EV battery supply chain;
carbon sinks – involving carbon capture and carbon offset market.

Indonesia hopes to make transportation an important pillar of this green economy. As the ASEAN’s largest automotive market, Indonesia represents 30% of the ASEAN 4-wheeler market and 50% of its 2-wheeler market. While the country still relies on imports, Indonesia hopes to become a production hub in the region, particularly for EVs, for which Indonesia is working to develop its own value chain.

Indonesia also aims to become a global leader in climate mitigation and in the carbon offset market. Replanting mangroves and restoring degraded ecosystems and lands are expected to be some of the key action areas, as panellists noted.

Africa House : Discussing AfCFTA & unlocking the continent’s future potential

The African continent provided its own contribution to this year’s WEF’s pursuit of cooperation in a fragmented world. Davos’ Africa House hosted a trade panel, titled “Deep-dive into the AfCFTA, exploring how far it has come and unlocking the continent’s future potential,” on January 18^th.

Participants to the panel included:

Wamkele Mene, Secretary-General, AfCFTA Secretariat
Samaila Zubairu, President & CEO, Africa Finance Corporation
H.E. Princess Alanoud Bint Hamad Al Thani, Chief Business Officer, Qatar Financial Centre

The African Continental Free Trade Area (AfCFTA) encompasses 54 countries across the continent, with 44 state parties having already ratified the agreement. This free trade area however constitutes only 2.1% of global trade and 3% of the world’s GDP.

In his opening address to the panel, Wamkele Mene therefore noted that individual African countries will not be globally competitive on their own. Mr Mene went on to stress the African continent’s need for greater integration in order to develop economies of scale and overcome its reliance on the export of commodities of primary necessity.

The panel encouraged an accelerated implementation of the AfCFTA, as it provides a blueprint for Africa’s collective development and industrialisation. The COVID-pandemic played an important role in revealing Africa’s need to establish alternative supply chains. With Africa at the back of the queue for masks and vaccines, the need for the continent to become self-sufficient has arguably become more pressing.

Samaila Zubairu, President & CEO, Africa Finance Corporation, highlighted the fact that the value chains of products like cocoa, cashew nuts, and cotton are not in Africa; the processing of this production is carried out abroad before being re-imported. The same applies to EV vehicles, despite Africa being an important source of strategic materials with huge solar energy potential, Mr. Zubairu noted, before concluding that Africa suffered from a 100 billion infrastructure deficit, weakening its ability to grow.

While panelists commended AfCFTA’s efforts in interconnecting supply chains and regulations and appeared optimistic about the agreement’s success – finding inspiration in the process of European integration started at the end of WW2 which resulted in today’s European Union – considerable challenges remain to reach such a level of integration. A notable limitation is the absence of a protocol on freedom of movement between parties, as pointed out by a question from the attendance.

The Future of Supply Chains and Investments in Emerging Markets

A session organised at the DP World pavilion on “Unlocking Investments in Emerging Economies” addressed the significance of supply chains in today’s world, particularly in the aftermath of the COVID-19 pandemic. Panellists noted that the lack of investments in the less developed parts of the world created disruptions in supply chains. A greater integration of supply chains and investments in infrastructure would however allow the transmission of benefits to emerging countries.

The diversification of supply chains post-COVID, therefore, has the potential of benefiting countries like the Philippines or India, panellists noted, as they could take over parts of China’s role in supply chains. These changing dynamics have begun redistributing roles in international supply chains. The wish of countries like the US and Canada to bring supply chains nearer to home would for example benefit a country like Mexico.

The session’s moderator Frederic Sicre, Managing Partner, Tardis Advisors, therefore shed light on this evolving understanding of emerging markets, mentioning the acronym BIMCHIP (i.e. Brazil, India, Mexico, Chile, Indonesia and Peru) as a possible replacement for the BRICS label.

Participants however also pointed to the challenges resulting from current financial uncertainty, which has made access to capital more difficult. This financial uncertainty will dampen the investment potential in emerging markets, as investors will prioritize less risky investments in developed markets, panellists noted.

Issue Brief – Safeguarding West Africa’s Fouta Djallon Highlands

Posted on 25 January 202330 May 2023 by the_bridge_tank

As a Champion of the Great Green Wall, let me tell you how convinced I am that the Fouta Djallon in Guinea, but also the inland delta of the Niger River in Mali, the Liptako-Gourma in Burkina Faso and in Niger, collectively constitute its roots and “strategic depth”. As Erik Orsenna rightly said, “water guarantees the unity of life”; I will add that water must guarantee the unity of our territories, the unity of our societies, of our ecosystems, and the prospects for our homes.

Mahamadou Issoufou

Former President of the Republic of Niger, Champion of the Great Green Wall for the African Union;

“The COP15 of the UN Convention to combat Desertification is hosted by Africa, with a presidency held by Cote d’Ivoire in West Africa. While Africa is serving the world through COP15, notably in an effort to unite the conventions on desertification, biodiversity and climate, the world should reciprocate by not forgetting Africa’s most salient ecosystems.

In one of the most landlocked and difficult to reach parts of Africa, the Fouta Djallon highlands of Guinea are dying. Often called “the water tower of West Africa” as they water a region of nearly 300 million people, these highlands and the headsprings of seven of the region’s largest rivers which are found there are drying up.

The combined effects of climate change and the impact of mis-development on local populations and livestock have put severe pressure on this vibrant but fragile ecosystem. As deforestation, desertification, and the erosion of soil increase, the future stability and development of an entire region find themselves threatened. The very survival of West Africa’s rivers depends on successfully safeguarding the Fouta Djallon.

The challenges facing the Fouta Djallon:

Climate change, e.g. reduced rainfall, cyclical droughts, and desertification;
Unsuitable traditional agricultural methods, e.g. shifting cultivation and slash-and-burn agriculture leaving land overexploited;
Decreasing vegetation cover, e.g. expansion of farmlands, and abusive logging for firewood;
Declining soil quality, due to overgrazing leading to accelerated erosion and desertification;
Depletion of water resources, due to increased siltation and sedimentation of headwaters, decreasing vegetation cover and soil quality.

A roadmap for ecological restauration & development:

Supporting & mobilizing local communities, e.g. disseminate catalogues of best practices of traditional and modern agro-forestry, ecosystem restauration, awareness-raising and training of local populations;
Fostering research and innovation, e.g. increase knowledge & data on resources-ecosystems, incubation of local technological startups, support research on nature-based solutions, local environmental engineering;
Political will & regional cooperation, e.g. assemblies of river basin organisations, regional cooperation frameworks around a common resource to ensure social & environmental sustainability;
A green-blue bond for the Fouta Djallon supported internationally to mobilise finance for the restauration of resources and the social development of the highlands.”

About the authors:

Joël Ruet

Economist of natural resources, President, The Bridge Tank

Hamed Semega

Founding Board Member of The Bridge Tank, former High Commissioner of the Senegal River Basin Development Organisation (OMVS), 2017-22

“The Bridge Tank Breakfast Series” with Bernard Cazeneuve

Posted on 24 January 202325 January 2023 by the_bridge_tank

On 12 January 2023, The Bridge Tank had the pleasure of hosting a new edition of “The Bridge Tank Breakfast Series” around Mr Bernard Cazeneuve, former French Prime Minister.

This closed-door meeting brought together some twenty eminent French and international economic and political decision-makers to discuss subjects relating to the structuring of French political life and the major European and international issues.

Held at the Cercle France-Amériques, the session moderated by our board member Jean Bizet, former chairman of the European Affairs Committee in the French Senate, and Joël Ruet, President, The Bridge Tank and economist at the Ecole Polytechnique, addressed topics ranging from the changing French political landscape, the conflict between Ukraine and Russia, the security situation in the Sahel and the French position in the region.

Through exchanges with the participants, Mr Cazeneuve was also able to share his expertise and analyses on topics such as :

The French-German relationship in terms of defence strategies and industries;
The need to strengthen European cooperation on energy transition issues;
The relationship between companies and citizens;
The migration crisis and European policies on the issue;
The importance of Africa in the French energy transition.

Numerous board members of The Bridge Tank joined in this exchange session, including

Irina Bokova, Former Director General of UNESCO
Mohamed Chaïbi, Chairman of the Board of Directors of Ciments du Maroc
Christian Connan, Former Ambassador
Hakima El Haite, President of Liberal International, Former Minister-Delegate for the Environment of Morocco
Stéphane Gompertz, Former Ambassador and Director at the French Ministry of Foreign Affairs
Guillaume Henry, President of the Association for the Ecological Study of Law
William Nkontchou, CEO of AFIIP – African Financial Institutions Investment Platform
Jean Pasternak, CEO Green Tie

This edition of the “Bridge Tank Breakfasts” also had the privilege of welcoming participants such as :

Pierre Ducret, Former President, I4CE – Institute for Climate Economics – Caisse des Dépôts et Consignations
Jean-Dominique Giuliani, President, Robert Schuman Foundation
Sabine Lochmann, President ASCEND and member of the Strategic Committee of the Blue Like an Orange Investment Fund
Sylvia Pariente, Director of the Energy Transition and Sustainable Development Department, DS & Associés
François Quentin, Former DGA of Thalès, Former Chairman of the Board of Directors of Huawei France
Claus Sorensen, Former Director General, Directorate General for Civil Protection and European Humanitarian Aid Operations of the European Commission (ECHO)
Mehdy Taleb, Deputy Director General, APCO France
Sylvianne Villaudière, Vice-President, Société d’Encouragement pour l’Industrie Nationale
Marie-Laure Vercambre, Director General, French Water Partnership
Teuta Vodo, Former Deputy Minister of Justice, Albania, Member of the Socialist International.

Inspired by the depth and quality of this dialogue session, The Bridge Tank intends to deepen and contribute concretely to some of the themes discussed, in particular the French-German relationship on defence strategies and industries, and the improvement of relations between France and Africa, in particular in relation to the challenges of energy transition and climate finance.

Hydro-diplomacy: The Bridge Tank launches the World Water for Peace Conference

Posted on 19 December 202216 May 2023 by the_bridge_tank

Since the year 2000, the share of conflicts over transboundary freshwater resources has been on the rise. Simultaneously, the rate of institutionalising cooperation, i.e. treaties and river basin organisations, has been declining, which the UN processes exemplify.

Fortunately, ideas, tools, and initiatives developed by practitioners and thinkers from the field are plentiful; exchange networks of water practitioners are deepening. As a result, the potential to expand and disseminate current innovative approaches is considerable, as The Bridge Tank

– researched and documented during field visits over the last two years, followed by

– an engagement tour across Europe in June 2022 to promote a renewed practice of hydro-diplomacy.

Indeed, despite alarming trends and media fixation on notorious cases, less documented but lasting success stories do exist, with resilient institutional innovations and good practices in co-management of transboundary waters sustained across the globe, as inspiring cases from Africa, Central Asia, or Europe show. They all have innovative structures to display, either in management, scale, coordinated care of cross-sectoral objectives, tools in common, or cooperative approaches to natural resources. Backed with high local willingness among water practitioners, these innovative features have in return fostered political will.

We argue that this wealth of experiences allows for new pathways to be conceived on the front of hydro-diplomacy itself. Rethinking hydro-diplomacy and its practice assumes multi-stakeholder approaches involving a wider range of actors and the creation, development, and enhancement of tools and practices, e.g. river basin organisations, shared infrastructures, or shared data, research and incubation programmes.

Recognising both the existing gaps in the present understanding and practice of hydro-diplomacy and its considerable potential, The Bridge Tank:

– framed a policy brief, which called for a renewed and enlarged practice of hydro-diplomacy;

– convened a closed-door high-level panel on hydro-diplomacy in Paris, on December 6^th, 2022, to put these ideas and hypotheses to the test. This event gathered field experts and development actors familiar with the challenges on the ground, academics and legal experts thinking out institutional tools and legal frameworks, and political decision makers which have worked to ensure a sustainable management of water resources.

These exchanges across practices and geographies created a de facto platform of dialogue on a broadened hydro-diplomacy transcending borders, backed by the range, replicability, and limitations of existing tools and practices. These discussions confirmed the necessity to root these existing tools and practices in this renewed understanding of hydro-diplomacy and work towards an appeased management of water resources, serving as a base for “river basins peace”.

In order to build on the momentum created during this first dialogue, The Bridge Tank is proud to announce the launch of the World Water for Peace Conference.

The World Water for Peace Conference aims to question and enrich the premises of hydro-diplomacy and of the management of transnational rivers,

1) away from a defensive hydro-diplomacy assuming rivalry over access to water resources between users, to a positive hydro-diplomacy, based on shared tools and forums;

2) away from a hydro-diplomacy practised mostly by diplomats toward a holistic one encompassing the plurality of actors.

We believe this paradigm shift through tools and practices will allow to move away from water wars to river basin peace, in short to move away from water wars to water for peace.

The World Water for Peace Conference’s ambition is to seek out innovative ideas and concrete solutions on three great questions:

The politics and practices of transboundary water peace
Innovative legal and institutional tools of inclusive cooperation for hydro-diplomacy
River science, technical innovation and entrepreneurship incubation

The World Water for Peace Conference shall provide a valuable contribution to the practice of hydro-diplomacy by mobilising all stakeholders involved in or impacted by water and its management, from spring heads to deltas, across borders and social and economic sectors:

Political decision makers
Hydro-diplomacy thinkers and system developers
Water practitioners and water users across economic sectors
Scientists and incubators

The Bridge Tank commits to serving as a secretariat to the World Water for Peace Conference. Benefiting from active members from diverse skills, geographies and experiences, we shall make use of the ties we have built over the years across sectors, communities, and countries and build on our position at the crossroads between the political sphere and the scientific community to host this platform of constructive exchanges and gap-bridging.

The next milestones in The Bridge Tank’s efforts in favour of promoting the World Water for Peace Conference will be in Davos, at to the World Economic Forum in January 2023, and at the landmark UN 2023 Water Conference in New York, in March – the first such conference since 1977.

The voices of transboundary water peace

We now stand at a crossroads where “water will either be a vector of peace and prosperity for all or a weapon like energy is now becoming.” This important choice ahead was described by Hakima El Haite, Board Member of The Bridge Tank and former UNFCCC Champion for climate, during the high-level panel discussion on December 6^th. “Water and development are two sides of the same coin, which is the coin of peace,” Ms El Haite went on to say.

“Water will either become a vector of peace and prosperity for all or a weapon like energy is now becoming.”

Hakima El Haite, Board Member of The Bridge Tank and former UNFCCC Champion for climate

The urgency of the situation was also underlined by Erik Orsenna, Chairman of the Initiative for the Future of Great Rivers (IAGF) and Member of the Académie Française, in his opening remarks to the panel. “If we do not change the mechanisms of war into tools of peace, we are doomed,” Mr Orsenna said, calling for water to be turned into a tool for peace, despite, or precisely because of its close proximity to future threats.

“If we do not change the mechanisms of war into tools of peace, we are doomed.”

Erik Orsenna, Chairman of the Initiative for the Future of Great Rivers (IAGF) and Member of the Académie Française

This paradigm shift is arguably no easy feat. Hamed Semega, Board Member of The Bridge Tank and former High-Commissioner of the Senegal River Basin Development Authority (OMVS), turned to the UNESCO preamble for guidance: “since wars begin in the minds of men, it is in the minds of men that the defences of peace must be constructed.”

Hydro-diplomacy should thus be seen as a source of hope, for which “political will combined with necessity can really transform what is a conflictual issue into building stability and peace,” Mr Semega stressed during the conference in Paris. The basic foundation for water cooperation is knowledge; common knowledge of the river, shared information, and science are key, so Mr Semega.

“Political will combined with necessity can really transform what is a conflictual issue into building stability and peace.”

Hamed Semega, Board Member of The Bridge Tank and former High-Commissioner of the Senegal River Basin Development Authority (OMVS)

However, “we cannot achieve one goal without looking at the others.” This acknowledgement of water as an important component of the UN Sustainable Development Goals and the assessment of its interconnectedness with other issues was provided to the panel by Irina Bokova, Co-chair of the Global Commission on Science Missions for Sustainability of the International Science Council (ISC) and former Director General of UNESCO.

Ms Bokova underlined the importance of approaching water from a wider point of view, as a human right and a societal question. This wider view, outside of the water silo, requires shared approaches due to water’s huge impact on food security, energy security, gender equality, social inclusion, on the climate, and on the economy.

Ms Bokova pointed to the need to mobilize all different sectors, to involve scientists, innovation, and technology, and to create platforms and institutions in order to establish concrete solutions.

“Agenda 2030 is universal and interdependent, we cannot achieve one goal without looking at the others.”

Irina Bokova, Co-chair of the Global Commission on Science Missions for Sustainability of the International Science Council (ISC) and former Director General of UNESCO.

How to best approach water and the management of the resource was also addressed by Claus Sorensen, Former Director General of the European Commission’s Humanitarian Aid and Civil Protection Department (ECHO).

Mr Sorensen highlighted that both community action, at the bottom, and support from those who set the framework, at the top, were needed. “If we can link the bottom with the top, then I think we are unto something very important,” he added.

“We need community action from the bottom and support from those that set the framework. If we can link the bottom with the top, then I think we are unto something very important.”

Claus Sorensen, Former Director General, European Commission’s Humanitarian Aid and Civil Protection Department (ECHO)

The existing disconnect between the different stakeholders was pointed out by Runa Khan, Founder & Executive Director, Friendship NGO, Bangladesh, who noted that while solidarity of thought existed, there was still a considerable lack of “solidarity of action between between the different stakeholders, from scientists to activists, to people on the ground, to decision makers.”

“We still do not have enough solidarity of action between between the different stakeholders, from scientists to activists, to people on the ground, to decision makers.”

Runa Khan, Founder & Executive Director, Friendship NGO, Bangladesh

In an address to the December 6th panel, Minister Sidi Toure, Minister of Animal Resources and Fisheries, Côte d’Ivoire, presented possible actions from a policy makers’ perspective, recognising the need to adopt innovative policies, strategies and programs for better protection, safeguarding and management of water resources.

According to Minister Toure, the optimal use of water resources in Africa must be based on 2 essential levers:

The development of infrastructures, in particular hydraulic infrastructures to combat food insecurity (livestock, agricultural resources, and people)
The establishment of appropriate institutional arrangements, which is decisive in the effectiveness of resource protection and equity in its allocation to the various actors.

“Taking into account the plurality of actors and their visions gives an original tone to policies. On the international level, dynamics are already at work. At the local level, the adaptation of techniques and resources are the preferred avenues, particularly in the case of community groups and associations,” Minister Toure noted.

“Africa is very rich in water. The optimal use of this resource must be based on 2 essential levers:

1. The development of infrastructures, in particular hydraulic infrastructures to combat food insecurity

2. The establishment of appropriate institutional arrangements, which is decisive in the effectiveness of resource protection and equity in its allocation to the various actors.”

Sidi Toure, Minister, Ministry of Animal Resources and Fisheries, Côte d’Ivoire

Minister Diaka Sidibe, Minister of Higher Education, Scientific Research and Innovation, Guinea, used her contribution to the panel to highlight existing areas of action and share her testimony on progressive water policies in Guinea.

In order to preserve Guinea’s water sources, in particular the Fouta Djallon, which is commonly referred to as the “Water Tower of West Africa,” Minister Sidibe stressed what she considered to be crucial points of action:

the need for more qualitative and quantitative data on water resources, in order to appropriately adapt the planning and sustainable management of these resources
develop technologies to process this data, supercomputers for forecasting and optimisation and spatio-temporal knowledge
develop territorial diagnoses with universities and research centers.

“Failure to act today to safeguard the Fouta Djallon Highlands threatens water security for our children and future generations,” Minister Sidibe concluded.

“To preserve sources of water, it is crucial to have more qualitative and quantitative data on water resources, in order to appropriately adapt the planning and sustainable management of these resources.”

Diaka Sidibe, Minister of Higher Education, Scientific Research and Innovation, Guinea

The importance of addressing questions of transboundary water, however contentious they might be, was also underlined by Pascal Delisle, Head, Economic, Development, Environment and Digital Issues, European External Action Service (EAES), Geneva.

The European External Action Service has thus made this one of its priorities in preparation of the 2023 UN Water Conference.

“It has been important for the European External Action Service to be pushing politically for transboundary water to be a priority topic at the 2023 UN Water Conference.”

Pascal Delisle, Head, Economic, Development, Environment and Digital Issues, European External Action Service (EAES), Geneva

But what actually determines the effectiveness of the existing tools and mechanisms of hydro-diplomacy and water management? How can these be best applied?

These were some of the key questions addressed during the conference by Susanne Schmeier, Associate Professor, Water Law and Diplomacy, Institute for Water Education (IHE), Delft. Sharing her expertise in the field, Susanne Schmeier pointed to the importance of questioning the effectiveness of these mechanisms and tools, something she described as “sharpening the tools.”

This is all the more important to precisely assess what is functioning and what is not in terms of hydro-diplomacy, tools, and notification processes.

“We need to sharpen the tools that we have in water diplomacy, moving beyond the mere assumption that having a treaty, a river basin organisation or a notification process is enough, in order to really enable these mechanisms to deal with all the changes ahead.”

Susanne Schmeier, Associate Professor, Water Law and Diplomacy, Institute for Water Education (IHE), Delft

Mara Tignino, Lead Legal Specialist, Geneva Water Hub, and Christian Brethaut, Scientific Director, Geneva Water Hub (GWH), Global Observatory for Water and Peace (GOWP), shared their knowledge and the expertise of the Geneva Water Hub with the other panelists.

Summarising some of the important conclusions of the thematic session he moderated on “Innovative tools for a revisited hydro-diplomacy,” Mr Brethaut noted that when “talking about the tools themselves, the simple process of implementing the tools can already lead to trust building. It is then also a lot about focussing on the process, rather than seeing the tools as a means for itself.”

Ms Tignino introduced one of those possible innovative ideas and tools for hydro-diplomacy with the perspective of the rights of nature and the process of attributing a legal personality to a river, presenting both national and international trends. Ms Tignino particularly stressed the importance of involving local communities in this process of attribution.

“It is very important that the process of attribution of the legal personality goes through a community level process. It is very important to involve the local community.”

Mara Tignino, Lead Legal Specialist, Geneva Water Hub

The stakes are high to take action to ensure the preservation and sustainability of water resources. Mats Karlsson, Former World Bank Vice President & Former State Secretary for development, Ministry for Foreign Affairs, Sweden, reminded the panel of the centrality of water in the development of future generations, saying that:

“There is no more important element in early childhood development than clean water. And there is no investment that has greater long term impact than investment in early childhood development.”

“There is no more important element in early childhood development than clean water. And there is no investment that has greater long term impact than investment in early childhood development.”

Mats Karlsson, Former World Bank Vice President & Former State Secretary for development, Ministry for Foreign Affairs, Sweden

The Case for Increased Financial Cooperation in Europe – The EU and the Micro-States

Posted on 15 December 202225 January 2023 by the_bridge_tank

By Gérard Vespierre, Le Monde Décrypté – Rule of Law in the heart of Europe: the microstates of Andorra, Liechtenstein and Monaco and EU values.

15 December 2022 – Gérard Vespierre, editor of geopolitics journal Le Monde Décrypté, published a new report, identifying serious threats to the rule of law in Europe from three microstates: Andorra, Liechtenstein and Monaco, the conclusions of which he had presented on 30th November at the Brussels Press Club in a Euractiv panel discussion that gathered Vespierre, Niels Fuglsang -Danish member of parliament-, and Dick Roche -former Irish Minister for European Affairs and member of parliament.

Gérard Vespierre, author of the report said: “In the difficult economic and geopolitical times we are in, where the rule of law, the very heart of our democracies, is at stake in our rivalry with aggressive authoritarian states, we must take all measures to protect this core value. A failure to do so in any respect, be it constitutional, human rights, or financial, will negatively impact and weaken our democracies. The financial failures stressed in this report must be addressed to protect our core value, the rule of law, for all European citizens. EU institutions and member states must have an absolute stand on this.”

No pariahs, but working together at bringing transparency into proximity

In an OpEd in La Tribune, the author recalls Micro-States in Europe should therefore “by no means be considered pariahs. They carry with them a common characteristic, their size. This structural aspect is far from trivial, because it “systemically” carries with it a consequence: the natural proximity (or even the juxtaposition of roles) of those responsible for the three political, judicial and economic pillars. If you know the phrase “small is beautiful”, you should add “smaller is closer”. The very reduced size creates a structural and permanent proximity.”

Systemic conclusions of this panel and report are that:

– whilst not being EU members, these low-tax and lightly regulated microstates have had an outsized influence on the EU’s financial markets. These three countries have also served as the setting for some of Europe’s most damaging banking and political scandals,

– the size effect, intrinsic to their existence, reduces both the possibilities of competition, and increases the probabilities of consanguinity, between the institutions of political power, justice, and the economy. Vespierre approaches here the notion of secrecy, more easily cultivated and kept within the framework of closed institutions,

– there is therefore a dual need to have rules and practices adopted that constitute systemic counter-fires to situations of proximity and juxtaposition of functions.

The report argues that the EU should take an active role in supporting these nations, including:

Encouraging them to sign the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions,
Extending the Supervisory Integration/Cooperation with EU member states; and
Promoting and protecting whistleblowers.

Strenghthening current progresses

Monaco and Andorra have been in discussions with the European Union since 2015 regarding further integration. There is an opportunity here for Spain, which will take over the Presidency of the Council of the EU from next July, to formalize substantial progress, or even new formal agreements for rapprochement or harmonization with these 2 principalities, in the financial, fiscal and judicial fields.

Apart from this existing framework, France has proposed a “European political community” which can also be a framework for reflection vis-à-vis these three European Principalities.

Still in the European context, it is also necessary to mention the strengthening of cross-agreements between each Principality and the closest European countries, France and Austria in this case.

Avoiding breaches authoritarians regimes might use

The generic relevance of this study lies with the current context of collectively preventing breaches in Europe by aggressive authoritarian non-European states that, using these breaches, may as well destabilise the Micro-States and the EU.

European Micro-States and the EU have a joint interest in together finding ways to keep a balance between financial specialisation with financial stability, of getting this balance aligned with values, and of .

Read in French the full original report published on Le Monde Décrypté on 13th December and the English version now available.