 Welcome to building up Europe's green deal for sustainable recovery here at the World Economic Forum Sustainable Development Impact Summit. My name is Sarah Kelly. I'm a TV news anchor and a journalist. I host the main international news and the top political interview program conflict zone on Deutsche Bella TV in Berlin and I'm really thrilled to be your moderator. The central question that we are looking at today is how can business and government use the European green deal to make the region greener, more competitive, more inclusive. To that end, we will hear about the ongoing work of the CEO action group for the green deal and the regional action group for Europe and Eurasia to accelerate implementation of the green transition. But first, we have the great honor and the great pleasure of being welcome to this session by the executive chairman of the World Economic Forum, Professor Klaus Schwab. Thank you. It's a great meeting in the context of our social development impact summit, which actually we will conclude later today. And this meeting brings together two of essential communities working together with the forum. The first one is the CEO action group on the green deal. And I want to welcome all the distinguished members joining us today, but particularly Fike, Zivesma and Thomas Puebel as the two members of the Board of Trustees of the World Economic Forum. And of course, we are also joined by the members of the regional action group for Europe of the World Economic Forum. This is a group which was set up when the pandemic broke out in order to define together in a public private effort recovery strategies and also to design the great reset for the post Corona era. The forum, as you know, is the International Organization for Public Private Corporation. So I'm very pleased to see the public dimension very well represented by Minister Gonzalez as the Minister of Foreign Affairs European Union and the European Commission of Spain. She's also a member of the regional group action group, and his Excellency Minister found felt often from the lesser ones. The President of the European Commission, of course, has shown a strong commitment and has outlined in her speech how to implement the Paris climate agreement. Let me just say and conclude with one word. It's now mobilizing all its stakeholder groups. It's a big effort to be behind the great reset. And all our work will be devoted to the great reset. But what I hope is that Europe acts really as a pioneer and as a big mover in this effort to some would say to build back better. We would say to really have a great reset and to define more resilient, more inclusive and more sustainable strategies back to you. Thank you so much Professor Klaus Schwab for that really inspiring opening for our conversation Europe as a pioneer. We're going to talk about how that can be brought to fruition. Let's begin with our conversation building up Europe's green deal for sustainable recovery. You're going to see a screen appear on your screen right now because we're using the tool Slido so that you can submit your questions and take the poll that we are putting forward, which is how optimistic are you that Europe's recovery will be green. You go to Slido.com, you enter SDIS, or you can click on the QR code on your screen. I would also like to invite all of you to please put your videos on and your mics on mute during our conversation unless you have been called on. Without any further ado, please allow me to introduce our distinguished panel, Minister Arancia Gonzalez-Laya is Minister of Foreign Affairs, European Union and International Cooperation of Spain. Minister Sienta Van Belthofen is Minister for the Environment of the Netherlands. Fika Sivasma is the honorary chairman of Royal DSM and the co-chair of the CEO Action Group. And Thomas Robel is CEO of AXA and a co-chair of the CEO Action Group. And Fika I'd like to begin with you just to set the stage for us as we head into this conversation over the next hour and a half and also the breakout sessions that we will have thereafter. You mentioned the CEO Action Group. We heard Professor Klaus Schwab mentioned it. You are the co-chair. You're also engaged in a number of groups at the forum which focus on implementing the green transition. As executives in the private sector, the message is that you're up to the challenge, you're willing to cooperate with the public sector on Europe's Green Deal. You came out with an action plan this week. What can it achieve? Thanks Sarah and indeed co-chair together with Thomas and with great staff of the web of course. Well, we all know like Professor Schwab was saying we are dealing with COVID and we need to get out of the COVID crisis at a certain moment. My biggest concern if the impact of COVID would be the inequality in countries and between countries. We need really to use this as a new way of looking to capitalism, more stakeholder balance, more long term balance and an X pandemic climate change. We can never say that we did not see that one coming. So therefore we need to address climate change right now and not to park it in this COVID period but to address it even stronger. This was already there before COVID but I think it should be stronger and not less in this COVID period. What did the companies who united 30 companies in this group led to guide it or help by Thomas and myself. Those companies want to support the European Commission with the Green Deal. They believe that the technologies and that their actions can help to make us to a net zero emitter. We believe that the technologies can help to have economic growth and to create jobs. And of course the companies are concerned about their own activities as well. About disruptions on the supply chains or their physical locations or their employees really wanted or their customers or the markets in which they operate. And for sure increasingly also the investors. So what did we did we took transport and mobility we took the food and agri sector we took the energy sector and say hey how can we support that with concrete actions in those areas. And then you can think about how do we reduce our emissions how do we can implement a price on carbon. How we can create more transparency DCFT based how we can even rescale people into green jobs who might lose the jobs in the current period. Those kinds of things to really use the Green Deal to create a better world and to continue to create prosperity and that's what we are trying to do with this group now 30 companies. I hope on the tune. And you have a number of like house initiatives, perhaps a little further in the conversation you can tell us a little bit more about that because I mean this is, this is not just about talk. This is very much about action, this particular initiative. But first, I'd like to turn to the Foreign Minister of Spain, Minister Gonzalez, and ask you about the fact that you know Professor Schwab has emphasized the need to work together as communities toward common goals, the need to mobilize stakeholders at this point in order to achieve this pioneering moment for the European Union. We also know that the CEO action group is coming together with a regional action group for Europe and Eurasia where there are high level leaders from politics such as yourself, academia, business, etc. Through that lens and as Foreign Minister of Spain. How do you see the momentum right now to reset your economy and put it on a greener path and how encouraged are you perhaps by what you are seeing. Well, I'm seeing an incredible moment right now to do three things and to use this terrible pandemic to accelerate the transformational moment in our economies towards decarbonization to do this in a partnership with the private sector. And to do this with a truly European dimension in Europe, the political support the legitimacy for climate change is there it was vastly demonstrated in the last European Parliament elections in the rise of the Green Party is all across Europe. And therefore what we now need is to accelerate this movement that was already there in the form of a European Union Green Deal use the recovery post COVID to accelerate the change this is certainly what Spain is advancing both in the European Union as well as in our own country. For us it's a very simple matter we first have to make sure this is part of our legislative work. We have to have a plan and this is where we've put in place. Plans for energy and climate change plan on the circular economy strategy for an economy that is competitive but it's also decarbonized. And helps us reach this goal of net zero by 2050. So first this planning second is setting very clear goals and indicators that will help us measure how fast we are approaching this target. Number three is giving ourselves the means. Number four is working with the private sector in a big public private partnership. In a private sector will be essentially in achieving this goal. And the last element in our own strategy towards this decarbonized Spain in a decarbonized Europe that is doing this in an inclusive manner we should never forget that behind this effort. We should make sure we leave no one behind we leave no small business behind we leave no citizen worker behind so inclusiveness would be a big component of how we move towards this green Europe but with full political support in Spain in a European Union that has big legitimacy to move in this direction. There was a lot in there and I'd like to pick apart some of what you said and perhaps get Thomas to respond to it. You talked about accelerating change. You talked about having that change being inclusive you talked about goals indicators about having a plan. Thomas, what do you see as the role of the private sector in those those those public private partnerships because you're also co chair of the CEO action group that we mentioned. Talk with us about the financial tools and the policies required to drive the green recovery because the Commission is currently estimating that the Green Deal objective they need about 260 billion euros of additional investment. There's a sustainable finance strategy being developed. How do you see the role of the private sector in filling perhaps some of those gaps. So thank you Sarah and good morning to all of you. I think the basis of this next generation plan is now a very important one because contrary to previous efforts which were mainly focused on the question of tax and production subsidiary subsidies. This new plan is very much focused on investments and in a way to say look we combine economic growth and decarbonisation through investments. So that is I think a very important basis. We are also companies and certainly large investors such as AXA for example can really participate and the second element that is very important that Fiker mentioned is that we want to be extremely concrete. So concrete actions concrete commitments of the companies and I give you an example. When we look at a large insurer we need to invest a lot of money and we've been from the very beginning very active when it came to the climate transition. So we were the first ones to get out of call. This topic is more or less sorted out. We are now very active in the area of green bonds. And if you look at the next generation plan 30% of the investment is in green is in green bonds, which is a great way to bridge the gap between the sustainable transition and the projects. And for AXA for example we said that we want to increase our green investments in green bonds up to 24 billion by 2023, which was very difficult in the beginning because obviously you have to convince the investment teams that this is as sustainable as other investments that they used to do. But I see this as a very pragmatic way of doing it. What is important though and coming back also to the question around how can public and private work together. It's very important to have the right framework. So when we talk about green, the definition of green the criteria for what is green what is not green needs to be rock solid needs to be well defined. But I think there is still some work to be done. And certainly when it comes to policy items such as financial disclosures around energy transition financial disclosures around stranded technologies. This needs to be more enforced. I think the basis of all of this is there today. The public domain should really push more in enforcing it. But I feel today, and certainly FICA mirror this as well in our joint groups with a group with a certain companies, there's a lot of desire a lot of willingness to contribute with very concrete actions and by creating the right framework in the governmental and political arena and by enticing the companies to really invest and make the energy transition a core part of their strategy and not anymore a checkbook part of a corporate social responsibility. I think those are two elements with which we can really concretely move on and make the two pieces work even better together. And you've called for other CEOs other business leaders also to join you in that initiative so it's very much an open invitation. I'd like to turn right now to the minister from the Netherlands, Minister van Veldhoven, and I mean perhaps our audience here would have noticed that we have two representatives from the Netherlands on this kickoff session. And that really tells us, first of all something about how pressing the climate emergency is for your country. And also, you know the track record that you have in dealing with it the track record that you have in action including a historic agreement bringing public and private closer together. Perhaps you'd just like to kick us off to tell us what lessons have been learned. And also, maybe people might be interested to know you're going somewhere as well and it has to do a little with this conversation also. This is a new facility with His Majesty the King. It's a new company that is going to ensure that certain metals that had to be land-filled are now completely regenerated and can be used again, creating jobs for about 40 people and avoiding a waste stream. So, excuse me therefore for being on the way, our son is not too reluctant, but let me pick a really little stretch. First of all, the point that I can make is that we need to learn and understand the need to avoid such disruptive periods for our economies and our societies. We should really learn from this COVID crisis to increase the urgency that we never wanted to have this kind of an impact again and that we should avoid climate change to have this kind of an impact. It needs to be inclusive and indeed we need investments. And if we need a reset, then there's one big point that I'd really like to stress and that is that we need to look beyond the energy if we want to attain the Paris Agreement goals. A recent study by Alan MacArthur raised the fact that 45% of all our CO2 emissions are related to the production of goods and food. So, if AXA is investing in coal that is fantastic, but we need to look beyond the energy side to the circular economy side. There are lots of low-hanging fruits, there's lots of waste to be avoided, costs to be avoided and this is a great agenda to work on with industry. We really need indeed in the Green Deal to make this link between the contribution the economy can make to achieving our Paris Agreement goals. So, what do we need in the Green Deal? I think like some of the private sector partners have said, increased ambition. Of course, we're very happy with the Commission of Presidents to raise the ambition to at least 55%. We need to set targets to give business a very clear reason to innovate and we need to put our money where our mouth is and support those targets and support that innovation with money and the Green Deal, with the resilience and recovery funds, etc. And we also need to start rewarding cutting CO2 through the circular economy. I think for too long we have seen, let's say, the climate change and the CO2 reduction as something separate from the circular economy, but that's all kind of links. And basically I'd like to say it's the sea stupid, need carbon, we need the right combination of dollars. Our question should be to better you to ensure that we are in a CO2 neutral way and this will generate a whole lot of new investments in all kind of sectors. In the Netherlands, we set up a government-wide program addressing all sectors but not top-down. We're doing this with the business sector and we ask them to identify where the barriers are, where the opportunities are and what we can do to help them. And so far we are, well, it turns out that we turn out to be a leading country in achieving some of those goals, but we still have a long, long way to go. And we can only do that if we work together, at least on a European scale, because the Netherlands wants to be 100% circular, but it's an illusion that we could ever do that alone. We need European cooperation and we need worldwide cooperation on all of those important and long international trade routes. That's what I'd like to say as a starter of this discussion. Fantastic, thank you. So a lot of progress, but still a lot of work to be done. Minister Gonzalez, I'd like to turn to you again. And perhaps to just also put this in the broader perspective, perhaps we can just reflect for a moment before we continue the conversation. Because we have heard the Commission President Ursula von der Leyen saying that this is Europe's man on the moon moment. I mean, it is really this pioneering action also that Professor Schwab has referred to. But, you know, on the other hand, you have other international actors, for example, this past week, China also announcing that they would target net zero by 2060. You have the US withdrawing from the Paris Climate Accord. What is your impression right now when you look at the international power play? And how do you see the importance for the EU to lead when it comes to setting the pace of a green recovery? Well, so the European Union is leading with the example, not only is the EU advancing this as a strategic objective, but it's also showing that it can do it. That is committed to doing it, that we are advancing in decarbonizing our economy that we are advancing a more circular economy that and that in this process, we are making our economies more competitive. This is not about choosing between protecting climate or giving an impulse to our economies is not about choosing between the two is about ensuring our economies become more competitive in a more sustainable manner. This is a very important message that has been heard in some parts of the world. And this is why we are seeing countries come up with commitments to decarbonization. The last one we heard was from the Chinese president. I think it was an important moment in this week discussions in the UN General Assembly because it shows that China now has finally embraced this idea that it can decarbonize. While again, making its economy stronger. We still have a bit of work to do in other parts of the world, but at the heart of what we have to explain and understand is that in a more interdependent world. It's incumbent on upon all of us to make the efforts towards decarbonization that it will not work. It's a major economies simply do not do it and that it would help every major economy. If it did embark on this effort to boost the economy while protecting our planet. This is the message that Europe is giving this is the priority that Europe is has for itself and this is the ambition that Europe will advance internationally. Simply because in this more interdependent world, we all need to make our efforts towards this planet that our children and grandchildren will inherit so we owe it to them. It's important to remember that that broader context and what is really at stake here so thank you so much for that Minister Gonzalez and perhaps you might have seen if you've been looking at your screen in the past couple of minutes you keep getting this pop up which says the breakout sessions will start shortly. Indeed, there are three breakout sessions starting shortly and FICA I know you're going to observe one of those and provide the conclusions for that one that is the public private cooperation to accelerate the European Green Deal agenda. There's also one on financial tools and policies for green recovery and tech and innovation and R&D for a green Europe. This is really the action part of our session. This is also where we really drill down specifically into these public private partnerships and what is possible and what we might be able to come out of this conversation so therefore in that context I would like to ask each of you and I'll begin with FICA. What should people keep in mind when they're going into these sessions what is the top thing that you think participants should have top of mind and have as their goals. Well, thanks and thanks for moderating. Well, nobody can do this alone. I'm very pleased with Professor Swaad together with also of course President Von Neuer setting the scene of all of this. I'm very pleased with front runner ministers like Minister González and Minister von Feldhau so it's a fellow who's really setting the scene here from a country perspective. But we need the help of business as well because they have the innovation they have the tools to do that supported by investors like Thomas is doing shifting his investments can really have a big impact. I would say keep the following seven points in mind. Europe needs to be climate neutral by 2050. How can we do that. We need to put us on a path of sustainability and also becoming resilient towards next pandemics which we saw coming climate change. Certainly, make it fair and inclusive the ministers mentioned it also that means also rescaling of people moving them to another job using the power of innovation and technologies which can bring also prosperity to the future of the companies. Put a price of carbon, think about carbon offsetting which can stimulate like think you've already said circular economy redesigning our value chains could be very, very important. And last but not least transparency be open about your emissions your reductions your plans and the financial consequences. And if we were concrete in that domain. I think we can make a huge impact and huge change. Thank you. Thank you, and Thomas your thoughts please. I mean we are here today with you know members of the private public sector. Perhaps there's something that you might like to see more of from the public sector. I mean, as I said earlier I'm very focused on the fact that the investment really flows into the right direction. And the question around green bonds is something that is extremely important. We need to get this right. As I said earlier this is 30% of the investment volume that requires the alignment between public and private around a couple topics. So the question, what are the characteristics of these projects I mean we have international standards for normal investments should be not, you know, basically transfer them to the logic of green bonds or do we need to reinvent it that I think is something very important. The second topic is really the question around what is green what is not green. How do we get a clarification around the classification. And then the third element is for me very much a practical one. And do the forms that exist today. Are they sufficient for this dialogue between public and private or do we need to think about a different way of how we get public and private together, especially on this question around the green bond and the green bond financing to quickly get to a result which allows us then also to make the necessary investment because, as we said earlier, time is short and the pressure is high. What might that different way look like you think give us some food for thought. So today, for example, those we are we are working very much apart. If you take a very concrete example, the, the taxonomy. If you take the example of the TCFD so the task force for financial disclosure. These elements have mostly been created or in the process of being created, but it often happens too much in silos. And the question is, how can we come together how can we get to a better dialogue to develop them together because basically we always talk about customer orientation and the question is that the investor in this case who is the customer needs to also give his or her input very early on to make sure that those policy frameworks actually work going forward and come to the right. And this is for me the topic. How can we get together more? How can we speed up in a code development rather than in this traditional process of I suggest something I wait for feedback and it takes very long. Okay, we're going to get the minister to respond to that one. Very short edition. Some people said, is this now in the COVID period to focus? Let's have a look that are two airports, Skippal Airport, Heathrow Airport joining the group of Thomas and me. They are really under pressure in their business those airports, as you can imagine, and they joined this group because they see this as a way for their future. And that's interesting that those people join as well. Fantastic. Yes, absolutely. Minister van Veldhoof and your thoughts. What I'd really like you to consider in the in the working sessions is that we really need to link climate change and the circular economy, because we don't. We're not just neglecting half of the problem. We're also neglecting half of the solutions. There are many solutions for different growth in different ecosystems. And I think it's for every company to decide what kind of a company am I, where is my place in this ecosystem. But let's not ignore half of the solutions. It's a very optimistic agenda. And so as as all of this work is also very much about us being there as people. We need to urge for urgency and optimism, because a lot can be done and we can manage this. So I really hope that that will be the spirit also in very good sessions. Minister Gonzalez. Well, for me, there is a big theme in here, which is multilateral cooperation to build global resilience. So how do we, how do we get more countries to behave in a more cooperative manner to build more resilience at the end of the day? What we've learned with the pandemic is that the name of the game is building resilience for the future. So how do we do that in a more cooperative manner would be a theme that in my view would be worth looking into a bit more detail. Would you would you like to perhaps respond to anything that Thomas also proposed there? I think all the, I very much agree that involving the suspects that might be a bit unusual in this discussion, like airports who have understood that this is also, they can be also part of the solution is reaching out to those parts of the business that may not have understood that this is also about them and that they can also be part of this resilience building and find an opportunity to do business at the end of the day. Again, this theme that you don't have to, this is not about not giving an impulse to the economy but imposing the economy in a different way in a significantly transformed way that this may be also what I would say. I very much agree with what my colleagues in the panel have said. Fantastic, thank you so much for that. I believe Professor Schwab is actually still with us. I hope I might be so bold actually as to to ask him to weigh in and also to give us some some wise words before we head into the breakout session because we've been examining the central question throughout this kickoff conversation. As Europe moves from managing the COVID-19 pandemic, implementing the systemic changes needed to rebuild the economy, create jobs, restore trust. How can business and government use the European Green Deal to make the region greener, more competitive, more inclusive. We have our action oriented breakout sessions coming up now. Professor Schwab, what would you like to see? No, just to two comments. The first one is I think it's very important that everything we are doing as business leaders is not just seen as a reach out for social purposes, but it is integrated into the big ideological change which we have moving from shareholder capitalism to stakeholder capitalism. So we have to make sure that those efforts are understood as something which is natural. So second point, and here I take up what Thomas said, our concern, and we discussed in our Board of Trustees is a profileration of activities. I think we see a lot of goodwill of the business community. I'm grateful that we see Action Group for the Green Deal. We have some kind of a vehicle, but we have to make sure that we create really powerful, if we want to work together as business leaders with governments, so that we create powerful alliances and coalitions. So it's not departmentalized, but it's an integrated approach. Back to you, Sabra, and thank you, by the way, for guiding us so well through the first part of this discussion.