Bangladesh's Finance Ministry is tackling what it identifies as one of its most formidable challenges: significantly amplifying public expenditure to catalyse sustained growth within the private sector.  An official document from the ministry underscores that, in comparison to other economies, Bangladesh's government spending as a percentage of GDP markedly trails, thereby emphasising the urgency to augment investment. Data from the World Economic Forum and the IMF (as of April 2023), reveal Bangladesh's public expenditure at 13.1% of its GDP, a figure that stands in stark contrast to countries like France at 58.5%, Sweden at 46.8%, and even neighbouring India at 28.8%. This discrepancy highlights the room for growth in Bangladesh's fiscal strategy. The government, aiming to elevate GDP growth and living standards, views the expansion of its expenditure as crucial. This ambition is supported by the progressive implementation of reforms in Public Financial Management. Historically, the government has gradually increased its spending relative to GDP, signaling a positive trajectory. Interest rate for April set at 13.55%, for consumer loans add 1%   Outlined in the 'Medium Term Macroeconomic Policy Statement (2023-24 to 2025-26)' from the Finance Division, the government's medium-term strategy is geared towards securing inclusive and high growth. This strategy is aligned with Bangladesh's Vision 2041, the 8th Five Year Plan, and the Sustainable Development Goals (SDGs), focusing on priority sectors including infrastructure, industrial production, food security, job creation, healthcare, and education among others. In anticipation of the demands of the Fourth Industrial Revolution (4IR), significant allocations have been dedicated to human resource development, particularly in education and skills training. The fiscal projections set public expenditure targets at 15.2% for the 2023-24 fiscal year, 15.4% for 2024-25, and 16.2% for 2025-26. The document further highlights Bangladesh's progression to a lower-middle-income country, with aspirations to attain upper-middle-income status by 2031. This ambition aligns with the developmental targets set within the 8th Five Year Plan and reflects the government's commitment to resuming the rapid economic growth witnessed pre-COVID-19 and pre-Russia-Ukraine war. Banks to remain open on April 5, 6, and 7 for payment of garment workers’ salary, bonus In response to the COVID-19 pandemic, the government prioritised life and livelihood protection, adopting an expansionary fiscal policy and channeling additional funds into critical sectors.  Despite the global political and economic instability, these measures have begun to show promise, with expectations of returning to pre-pandemic growth levels and policies aimed at promoting pro-poor and inclusive growth. As Bangladesh looks forward, the Finance Ministry is set on formulating strategies to enhance pro-poor growth, stimulate both domestic and international private investment, bolster public investment, curb inflation, generate employment, and alleviate the balance of payment pressures. These objectives underscore a holistic approach to not only recovering from recent global challenges but also setting a solid foundation for long-term, sustainable development.

The International Monetary Fund (IMF) has sounded an alarm, indicating that nearly 40% of global employment could be endangered by the burgeoning influence of artificial intelligence (AI). This stark warning, reported by CNN, underscores the seismic shifts anticipated in the global job market. IMF Chief Kristalina Georgieva, in a recent blog post, stressed the critical necessity for governments worldwide to fortify social safety nets and roll out comprehensive retraining programmes. This proactive approach aims to mitigate AI's potentially dramatic effects on employment. Davos 2024: Can AI provide solutions, as Global leaders confront $88.1 trillion debt crisis? Highlighting a key concern, Georgieva pointed out the potential for AI adoption to aggravate existing inequalities, a trend that requires immediate policy intervention to avert escalating social tensions. This issue is set to be a central theme at the upcoming annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, where AI's role in the economy will be a focal point. According to the IMF's analysis, advanced economies might witness the most significant impact, with up to 60% of jobs at risk. Although AI promises to enhance productivity in about half of these roles, the remainder faces a stark reality of diminishing demand, lowered wages, and potential unemployment as AI assumes roles traditionally held by humans. UN chief warns of risks of artificial intelligence Emerging markets and lower-income countries are not immune to these challenges. Here, 40% and 26% of jobs, respectively, may feel the impact. Georgieva raised concerns about these regions' lack of infrastructure and skilled workforces, factors that intensify the risk of AI deepening existing economic divides. Georgieva also warned of an escalating risk of social unrest, especially if younger, tech-savvy workers leverage AI for productivity gains, leaving their older counterparts struggling to adapt. China warns of artificial intelligence risks, calls for beefed-up national security measures At Davos, the implications of AI on employment are a key discussion topic. Prominent figures, including Sam Altman, CEO of ChatGPT-maker OpenAI, and Microsoft's Satya Nadella, are slated to address the impact of generative AI technologies. Despite these challenges, Georgieva did not overlook AI's positive potentials, noting its capacity to significantly boost global output and incomes. She argued that with thoughtful planning, AI could be a transformative force for the global economy, stressing the importance of channeling its benefits for the collective good. Amidst concerns over job displacement, some economists are optimistic, suggesting that AI's widespread adoption may ultimately enhance labor productivity. This could potentially lead to a 7% annual increase in global GDP over the next decade.

This week, the picturesque Swiss town of Davos becomes the epicenter of global policy discussions as world leaders convene to address a plethora of critical issues. High on their agenda are two ongoing major wars, a burgeoning shipping crisis, and the ever-increasing threat of cyber-attacks. Complicating these discussions, however, is the staggering $88.1 trillion global debt burden, a figure reported by CNN. This unprecedented surge, predominantly fueled by public borrowing during the pandemic, now significantly undermines governments’ capabilities to tackle existing and emerging global crises effectively. The soaring debt servicing costs not only strain public services, already reeling from successive budget cuts, but also limit efforts to combat climate change and provide adequate care for aging populations. UN council to hold first meeting on potential threats of artificial intelligence to global peace The risk looms larger as governments might find themselves unable to borrow more to fulfill existing obligations and fund essential services, says the report. Former Bank of England’s monetary policy committee member, Michael Saunders, warned that a government unable to finance its debt could face abrupt and painful spending cuts or tax hikes, hampering its response to future shocks, it also said. As the world faces a risky year of elections with half the global population heading to the polls, there is little incentive for belt-tightening among incumbent administrations. The prospect of new leaders implementing ambitious tax and spending plans raises concerns about the sustainability of already soaring levels of public debt, the report said. In the United States, record levels of public borrowing have become a major point of contention between Republicans and Democrats, affecting national budget negotiations and jeopardizing the functioning of federal agencies, it said. China warns of artificial intelligence risks, calls for beefed-up national security measures The implications of mounting debt are not limited to economic challenges. Political polarization has already impacted the credit rating of the United States, with agencies like Fitch downgrading its rating. Moody’s has also warned about the potential removal of the country’s last remaining perfect rating. Amidst these challenges, the increased cost of servicing debt, driven by rising interest rates, is diverting significant funds away from essential public services. In the UK, the Labour Party has scaled back green spending plans due to concerns about adding to the country's debt burden, the report further stated. As the global economy grapples with these debt challenges and slowing economic growth, some experts, including Raghuram Rajan, former governor of the Reserve Bank of India, suggest that artificial intelligence (AI) could hold the key to a relatively painless recovery. They hope for discussions at Davos to shed light on potential solutions, emphasizing the transformative power of an AI-driven productivity boom to reshape the world’s economic fortunes. UN chief warns of risks of artificial intelligence

Congratulating Prime Minister Sheikh, founder and Executive Chairman of the World Economic Forum, Professor Klaus Schwab, has said he is confident that under her leadership, Bangladesh will be able to fully realize its economic potential and become a developed country by 2041. “The bold reforms taken forward under your leadership have helped raise Bangladesh’s economic and social standing,” Schwab said in a message to PM Hasina. Canada disappointed that Bangladesh’s electoral process has ‘fallen short of’ democratic principles “The World Economic Forum looks forward to working closely with you and your government to support in achieving its full growth potential,” he said. He also invited PM Hasina to the 54th World Economic Forum annual meeting, which will take place in Davos-Klisters, Switzerland, from January 15 to 19, 2024 under the theme, “Rebuilding Trust.” Will continue to work with government of Bangladesh on priorities that characterise longstanding relations: EU As usual, over 100 governments, all major international organizations, the 1000 most important global companies, relevant civil society and academic institutions, as well as the global media will interact at the highest level. “I truly look forward to engaging you in this effort and, hopefully, to welcoming you in Davos,” he said, wishing her every success in her new leadership role. New Bangladesh Ambassador Rezina Ahmed presents credentials to Portuguese president “On behalf of the World Economic Forum, please accept my congratulations on leading your party to a historic win in the 12th National Elections. I wish you and your colleagues every success for the new tenure,” Schwab said.

A recent article published by The Guardian, framing the lives of female garment workers in Bangladesh between factory and brothel, is not only offensive but also a gross overgeneralization, BGMEA President Faruque Hassan has said. It risks overshadowing the remarkable transformation of women's empowerment propelled by the nation's RMG industry, he said in a statement, condemning the article that he said “defames women at work.” "It’s true that individual hardships exist, but framing women workers within a single struggle is potentially harming them by provoking radicalism, causing social stigma and mental illness," Faruque said. Such a narrative is a disservice to their lives and dreams they cherish, he said. “The report itself appears to be incorrect to us as it says that the mentioned female worker works for a large factory, it didn’t mention the name; and there is hardly any export-oriented garment factory located at the place as the report mentions, except for a few tailoring facilities catering to the local market only,” he said. “The report does not only perpetuate harmful stereotypes against women at work, but also defames an industry that employs millions of women and contributes significantly to national economy," said the BGMEA chief. Rest of the BGMEA chief's statement Consider this: in a moderate Muslim country, Bangladesh has emerged as a model in the region in women’s empowerment and gender parity, he said. “The World Economic Forum's recent Gender Gap Report places Bangladesh at the top in South Asia for gender equality for the 9th consecutive year, ranking the country 59th globally. “The labor force participation rate of women has soared from a mere 8% in 1983 to a remarkable 38% today. Read: Despite anticipated challenges in 2024, int’l market demand for RMG products could rise: BGMEA Director  “Women’s contribution to Bangladesh's GDP growth is estimated at a staggering 34% and it continues to rise. “For millions of less privileged women having less literacy and skills, the RMG industry is the first formal sector of employment. “Through this industry, women have emerged as the critical support for their families, achieving economic independence and social empowerment. “Early marriage and motherhood are declining, primarily education enrolment is on the rise and as per many experts, the industry has led to increase in girls’ schooling. “Maternal and child health, too, have gained momentum, nourished by improved nutrition and a heightened awareness of healthcare. “The ascent isn't confined to the shop floor. Women are scaling the ranks, their talents are gracing technical departments in the industry like industrial engineering, product designing and merchandising, as well as taking on leadership positions. “When they leave the factories, they leave footprints of entrepreneurial spirit, transforming into owners of their own businesses. Read: Sustainable fashion: Bangladesh's RMG sector leads with 24 new LEED green factories in 2023 “This industry has become a launchpad for leadership. “While writing a report remotely, without having proper understanding of the background and reality, to deliberately portray the bleak picture, one must acknowledge the broader narrative – millions of women rising from poverty, gaining skills, and forging a path towards brighter futures for themselves and their families. “Beyond all these, the industry has taken an unprecedented stance to support aspiring women workers to pursue their dream for higher education. “Currently around 90 young female RMG workers are pursuing higher studies in the Asian University for Women under the Pathways for Promise program. “While the girls pursue their bachelor studies with full scholarship from the university, the employer factories continue to pay the full wages to them throughout the entire tenure of their study. “The ‘promise’ is to make them fearless and think big. Not only that, through this industry women have got the opportunity to emerge as the critical support to the family. “There are numerous instances that the sons and daughters of workers are pursuing higher education in engineering, medical science and many more disciplines through the humble support of the factories. “This is our story, one of transformation, of empowerment, of women rising like threads on a loom, weaving a new Bangladesh. Let us move beyond sensationalized headlines and acknowledge the multifaceted reality of women at work. Read more: Milestone for RMG as Bangladesh becomes top source of Knitwear into EU market “Let us celebrate their achievements, address their challenges, and work towards a future where all Bangladeshi women can thrive, in factories and beyond. “Our garment workers are the heartbeat of our industry, and I, for one, find my strength in their courage, their resilience, and their unwavering spirit. They are the threads that bind our nation together, the driving force propelling us towards a future where gender is not a barrier, but a bridge – a future where Bangladeshi women stand tall, not just as workers, but as architects of their own destinies.”

The world is in a “sorry state" because of myriad “interlinked” challenges including climate change and Russia's war in Ukraine that are “piling up like cars in a chain reaction crash,” the U.N. chief said at the World Economic Forum's meeting Wednesday. U.N. Secretary-General Antonio Guterres delivered his gloomy message on the second day of the elite gathering of world leaders and corporate executives in the Swiss ski resort of Davos. Sessions took a grim turn when news broke of a helicopter crash in Ukraine that killed 16 people, including Ukraine’s interior minister and other officials. Forum President Borge Brende requested 15 seconds of silence and Ukrainian first lady Olena Zelenska dabbed teary eyes, calling it “another very sad day,” then telling attendees that “we can also change this negative situation for the better." Ukrainian President Volodymyr Zelenskyy was scheduled to address the conclave by video link as the Ukrainian delegation that includes his wife pushes for more aid, including weapons, from international allies to fight Russia. Speaking shortly before Zelenskyy is German Chancellor Olaf Scholz, who is facing pressure to send tanks to help Ukraine and is the only leader to attend Davos from the Group of 7 biggest economies. Guterres said the “gravest levels of geopolitical division and mistrust in generations” are undermining efforts to tackle global problems, which also include widening inequality, a cost-of-living crisis sparked by soaring inflation and an energy crunch, lingering effects of the COVID-19 pandemic, supply-chain disruptions and more. He singled out climate change as an “existential challenge,” and said a global commitment to limit the Earth's temperature rise to 1.5 degrees Celsius “is nearly going up in smoke.” Guterres, who has been one of the most outspoken world figures on climate change, referenced a recent study that found scientists at Exxon Mobil made remarkably accurate predictions about the effects of climate change as far back as the 1970s, even as the company publicly doubted that warming was real. Read more: Economic woes, war, climate change on tap for Davos meeting “We learned last week that certain fossil fuel producers were fully aware in the 1970s that their core product was baking our planet," he said in his speech. “Some in Big Oil peddled the big lie.” Critics have questioned the impact of the four-day meeting where politicians, CEOs and other leaders discuss the world’s problems — and make deals on the sidelines — but where concrete action is harder to measure. Environmentalists, for example, slam the carbon-spewing private jets that ferry in bigwigs to an event that prioritizes the battle against climate change. On the second day, government officials, corporate titans, academics and activists were attending dozens of panel sessions on topics covering the metaverse, environmental greenwashing and artificial intelligence. Ukraine has taken center stage as the anniversary of the war nears, with Zelenska pressing attendees to do more to help her country at a time when Russia’s invasion is leaving children dying and the world struggling with food insecurity. The crash added more tragedy after a Russian missile strike hit an apartment building over the weekend in the southeastern Ukrainian city of Dnipro, killing dozens of people in one of the deadliest single attacks in months. But Ukraine is gaining additional international support: Dutch Prime Minister Mark Rutte said Tuesday that the Netherlands plans to “join” the U.S. and Germany’s efforts to train and arm Ukraine with advanced Patriot defense systems. The German government has faced mounting pressure to make another significant step forward in military aid to Ukraine by agreeing to deliver Leopard 2 battle tanks. U.S. Defense Secretary Lloyd Austin is scheduled to visit Berlin this week and then host a meeting of allies at Ramstein Air Base in western Germany. Guterres was not optimistic that the conflict, being waged less than 1,000 kilometers (620 miles) from Davos, could end soon. “There will be an end of this war. There is the end of everything. But I do not see the end of the war in the immediate future,” he said. Deep historical differences between Russia and Ukraine make it more difficult to find a solution based on international law and that respects territorial integrity, he added. Read more: Global economic growth will slow down in 2023, but will pick up in 2024: IMF chief "For the moment, I don’t think that we have a chance to promote or to mediate a serious negotiation to achieve peace in the short term," Guterres said.

The World Economic Forum is back with its first winter meetup since 2020 in the Swiss Alpine town of Davos, where leaders are seeking to bridge political divisions in a polarized world, buttress a hobbling economy and address concerns about a climate change — among many other things. Sessions will take up issues as diverse as the future of fertilizers, the role of sports in society, the state of the COVID-19 pandemic and much more. Nearly 600 CEOs and more than 50 heads of state or government are expected, but it's never clear how much concrete action emerges from the elite event. Here’s what to watch as the four-day talkfest and related deal-making get underway in earnest Tuesday: WHO’S COMING? Back in the snows for the first time since the pandemic and just eight months after a springtime 2022 session, the event will host notables like European Union Commission President Ursula von der Leyen, U.S. climate envoy John Kerry, and the new presidents of South Korea, Colombia and the Philippines. Chinese Vice Premier Liu He addresses the gathering Tuesday, a day before his first meeting with his U.S. counterpart, Treasury Secretary Janet Yellen, in Zurich. Yellen will skip Davos. Who else is missing? U.S. President Joe Biden, Chinese President Xi Jinping, British Prime Minister Rishi Sunak, Indian Prime Minister Narendra Modi and French President Emmanuel Macron. Russian President Vladimir Putin, of course: Envoys from his country has been shunned because of his war in Ukraine. Ukrainian first lady Olena Zelenska was on her way to Davos and will speak Tuesday, while her husband, President Volodymyr Zelenskyy, will give a remote address Wednesday and other officials from Ukraine are appearing on panels. Read more: Business trusted most in a more polarized world, report says Outside the main convention center, a themed venue known as Ukraine House is hosting a concert, photo exhibits, seminars, cocktail events and other meetings this week to drum up support for Ukraine’s efforts to drive out Russian forces. ECONOMIC FOCUS The slowdown in the global economy will be a major theme at Davos, with officials ranging from International Monetary Fund Managing Director Kristalina Georgieva and European Central Bank President Christine Lagarde speaking in sessions. Inflation soared as the world reopened from the pandemic and Russia invaded Ukraine, driving up food and energy prices, and though it has started to slow in major economies like the U.S. and those in Europe, inflation is still painfully high. Georgieva said in an IMF blog post Monday that divides between nations — the theme at Davos this year is “Cooperation in a Fragmented World” — are putting the global economy at risk by leaving “everyone poorer and less secure.” Georgieva urged strengthening trade, helping vulnerable countries deal with debt and ramping up climate action. PRIORITIZING CLIMATE A major climate theme emerging from the forum’s panel sessions is the energy transition from fossil fuels to clean energy. Former U.S. Vice President Al Gore will be talking about decarbonization, efforts to build clean energy infrastructure and ensure an equitable transition. It follows a strong year for the energy transition: Many countries passed incentives for renewable energy in 2022. One hot topic on the agenda — harnessing nuclear fusion — focuses on science that offers immense potential but is many decades away from a commercial rollout that could feed the world’s skyrocketing thirst for energy. Sessions on issues like adaptation to climate change and panels on deforestation, biodiversity and the future of environmental protection will give a greener hue to the gathering. CRITICAL VOICES The elite gathering is regularly skewered by critics who argue that attendees are too out-of-touch or profit- or power-minded to address the needs of common people and the planet. Throughout the week, critics and activists will be waiting outside the Davos conference center to try to hold decision-makers and business leaders to account. Read more: Robust leadership, political trust fortified Dhaka-Ankara economic, defence ties: Turan It started Sunday, when dozens of climate activists — some with clown makeup — braved snowfall to wave banners and chant slogans at the end of the Davos Promenade, a thoroughfare now lined with storefront logos of corporate titans like Accenture, Microsoft, Salesforce, Meta, as well as country “houses” that promote national interests. Greenpeace International also blasted use of corporate jets that ferry in bigwigs, saying such carbon-spewing transportation smacks of hypocrisy for an event touting its push for a greener world. It said over 1,000 private-jet flights arrived and departed airports serving Davos in May. Forum President Borge Brende acknowledged Sunday that some government leaders and CEOs fly in that way. "I think what is more important than that is to make sure we have agreements on how we, overall, move and push the envelope when it comes to the green agenda,” he said.

Chinese President Xi Jinping said Monday that different countries and civilizations may prosper together on the basis of respect for each other, and seek common ground and win-win outcomes by setting aside differences. Xi made the remarks while delivering a special address at the 2022 World Economic Forum virtual session. The right way forward for humanity is peaceful development and win-win cooperation, said the Chinese President. He called for following the trend of history, working for a stable international order, advocating common values of humanity, and building a community with a shared future for mankind. "We should choose dialogue over confrontation, inclusiveness over exclusion, and stand against all forms of unilateralism, protectionism, hegemony or power politics," Xi said. READ: Chinese President Xi Jinping's remarks at conference marking 50th anniversary of restoration of PRC's lawful seat in UN Cooperation Amid Global Crisis He called for solidarity and cooperation of the international community amid a global crisis, saying that "small boats may not survive a storm, but a giant ship is strong enough to brave a storm." "Facts have shown once again that amidst the raging torrents of a global crisis, countries are not riding separately in some 190 small boats, but are rather all in a giant ship on which our shared destiny hinges," Xi said.  Sunshine of Hope The Chinese President Xi Jinping called on the world to do everything necessary to clear the shadow of the pandemic and boost economic and social recovery and development, so that the sunshine of hope may light up the future of humanity. READ: Will strengthen development strategies with Bangladesh: Chinese President In two weeks' time, China will celebrate the advent of spring in the lunar new year, the Year of the Tiger, Xi said, noting that in Chinese culture, tiger symbolizes bravery and strength, as the Chinese people often refer to spirited dragon and dynamic tiger, or soaring dragon and leaping tiger. "To meet the severe challenges facing humanity, we must 'add wings to the tiger' and act with the courage and strength of the tiger to overcome all obstacles on our way forward," Xi said.  Ecological Conservation & Economic Growth China should never grow the economy at the cost of resource depletion and environmental degradation, nor should the country sacrifice growth to protect the environment, said the Chinese President. Xi described economic development at the cost of environment as "draining a pond to get fish," and sacrificing growth to protect the environment as "climbing a tree to catch fish." "Guided by our philosophy that clean waters and green mountains are just as valuable as gold and silver, China has carried out holistic conservation and systematic governance of its mountains, rivers, forests, farmlands, lakes, grasslands and deserts," Xi said. The country does everything it can to conserve the ecological system, intensify pollution prevention and control, and improve the living and working environment for its people, he said. Future of China's Economy "We have every confidence in the future of China's economy," Chinese President Xi Jinping said on Monday. The Chinese economy enjoys a good momentum overall, Xi said, citing that the country's gross domestic product grew by around 8 percent year on year in 2021, achieving the dual target of fairly high growth and relatively low inflation. Shifts in the domestic and international economic environment have brought tremendous pressure, but the fundamentals of the Chinese economy, characterized by strong resilience, enormous potential and long-term sustainability, remain unchanged, he said. More Substantially, Equitably China's development gains will benefit its entire people in a more substantial and equitable way, said the Chinese President. "The common prosperity we desire is not egalitarianism," Xi said. "To use an analogy, we will first make the pie bigger, and then divide it properly through reasonable institutional arrangements." "As a rising tide lifts all boats, everyone will get a fair share from development, and development gains will benefit all our people in a more substantial and equitable way," he said. Xi calls on world to follow logic of historical progress, ride tide of times President Xi called on the world to "move forward by following the logic of historical progress, and develop by riding the tide of development of our times." Citing a Chinese saying "the momentum of the world either flourishes or declines; the state of the world either progresses or regresses," Xi noted that the world is always developing through the movement of contradictions, and the history of humanity is a history of achieving growth by meeting various tests and of developing by overcoming various crises. He said the world should learn from comparing long history cycles, and see the change in things through the subtle and minute. "We need to foster new opportunities amidst crises, open up new horizons on a shifting landscape, and pool great strength to go through difficulties and challenges," he said. Economic Globalization President Xi said no "countercurrents" could stop the trend of economic globalization. "Economic globalization is the trend of the times. Though countercurrents are sure to exist in a river, none could stop it from flowing to the sea," Xi said. "Driving forces bolster the river's momentum, and resistance may yet enhance its flow. Despite the countercurrents and dangerous shoals along the way, economic globalization has never and will not veer off course," he said. "Countries around the world should uphold true multilateralism," Xi said. "We should remove barriers, not erect walls. We should open up, not close off. We should seek integration, not decoupling. This is the way to build an open world economy."

Artificial intelligence (AI) can be used to accelerate a more equitable energy transition and build trust for the technology throughout the industry, according to a new report of the World Economic Forum (WEF). As the impacts of climate change become more visible worldwide, governments and industries face the urgent challenge of transitioning to a low-carbon global energy system. Digital technologies – particularly AI – are key enablers for this transition and have the potential to deliver the energy sector's climate goals more rapidly and at a lower cost. Written in collaboration with BloombergNEF and Deutsche Energie-Agentur (dena) – the German Energy Agency – the new report "Harnessing Artificial Intelligence to Accelerate the Energy Transition" finds that AI has the potential to create substantial value for the global energy transition. Based on BNEF's net-zero scenario modelling, every 1% of additional efficiency in demand creates $1.3 trillion in value between 2020 and 2050 due to reduced investment needs. AI could achieve this by enabling greater energy efficiency and flexing demand. "AI is already making its mark on many parts of society and the economy. In energy, we are only seeing the beginning of what AI can do to speed up the transition to the low-emissions, ultra-efficient and interconnected energy systems we need tomorrow. This report shows the potential and what it will take to unlock it – guided by principles that span how to govern, design and enable responsible use of AI in energy. Governments and companies can collectively create a real tipping point in using AI for a faster energy transition," said Roberto Bocca, head of energy at the WEF. "As dena, we have been focusing on digital technologies for years. Especially with our 'Future Energy Lab' we are boosting AI projects. AI is an essential technology for the energy transition since it will provide the glue to connect the different sectors (power, heat, mobility and industry) and serve as digital technology to effectively monitor systems and processes. To efficiently control the energy system of the future, which will be very volatile due to renewable energies, such agent-based control will play an overarching role," said Andreas Kuhlmann, chief executive officer of dena. High priority applications for how AI can accelerate the transition to a low-carbon energy future include identifying patterns and insights in data to increase efficiency and savings. According to BNEF's net-zero scenarios, fully decarbonising the global energy system will require between $92 trillion and $173 trillion of investments in energy infrastructure between 2020 and 2050. Even single-digit percentage gains in flexibility, efficiency, or capacity in clean energy and low-carbon infrastructure systems can therefore lead to trillions of dollars in value and savings. Also, as electricity supplies more sectors and applications, the power sector is becoming the core pillar of the global energy supply. Ramping up renewable energy deployment to decarbonise the globally expanding power sector will mean more power is supplied by intermittent sources (such as solar and wind), creating a need for better forecasting, greater coordination, and more flexible consumption to ensure that power grids can be operated safely and reliably, according to the WEF. In addition, the transition to low-carbon energy systems is driving the rapid growth of distributed power generation, distributed storage, and advanced demand response capabilities, which will need to be orchestrated and integrated into much more networked, transactional power grids. Navigating these opportunities presents huge strategic and operational challenges for energy-intensive sectors and energy systems themselves, just as they are undergoing once-in-a-lifetime digital transformations. AI can act as an intelligent layer across many applications and can identify patterns and insights in data, "learn" lessons accurately and improve system performance over time, and predict and model possible outcomes for complex, multivariate situations, according to the WEF.

Top US immunologist said on Monday that in the US, one of the key lessons from the current COVID-19 outbreak is the challenges of the divisiveness and politicization of the health crisis.