tv Talking Business BBC News May 27, 2023 11:30am-12:00pm BST
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this is bbc news. ukraine's most senior security official tells the bbc the country is ready to launch its long—expected counter—offensive against russian forces. in a rare interview, oleksiy danilov describes the planned assault as an "historic opportunity". a nationwide issue with the uk border force system has led to problems with e—gate passport controls — and led to long delays at several of the country's biggest airports. one airport says the problems started on friday evening. it's the final day of campaigning in turkey ahead of one of the country's most divisive presidential elections where the economy and immigration are key voter concerns. a man arrested after a car crashed into the gates of downing street earlier this week,
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has been released while under investigation. he was detained on thursday on suspicion of criminal damage and dangerous driving. now on bbc news it's time for talking business. hello, everybody. a very warm welcome to talking business weekly with me, aaron heslehurst. let's go and take a look at what's on the show. eyeing up africa — as the west competes with china, when of an when of an african when of an african country when of an african country is when of an african country is leading the way in renewable energy but connection itself and i am fully dependent on fossil fuels to being able to export clean energy to
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europe as we tackle climate change because mac is an ambitious plan so i'm going to be discussing this with easily over there. big boss of web africa's largest renewable energy companies, energy et from the world bank and a leading moroccan environmental campaigner. also on the show, i'm going to sit down with a moroccan government minister tasked with the mighty challenge of making sure everything is in place for this country to use abundant wind and sun trying to transform its economy. if you are joining wind and sun trying to transform its economy. if you arejoining me wind and sun trying to transform its economy. if you are joining me from around the world once again a big hello and a warm welcome to the show and it is certainly one here in morocco�*s capital of rabat. in fact, this is a country trying to make the most of its natural resources including some trying to solve one of the biggest problems on the planet, energy. that is because everyone wants more of it and of course you want to play less for it. as you know, the war in ukraine has
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led to big increases in energy bills at home as well as the cost of running a business and politicians are trying to work out where it's all going to come from in the long term. did you know that making electricity is the single biggest contributor to global warming? but last year, 39% of the global supply claim from clean sources such as wind, solar and nuclear? that is the highest it's ever been. and that, combined 12% came from wind and solar and it is in wind and solar that morocco is betting the farm on and other countries in the region of watching very closely. this north african country has an ambitious target of generating 52% of its own electricity from renewables by 2030. it also wants to hugely expand its export and the lapland to a cable to send alexa uk and is that you invest billions to the rest of the world as well. here's the problem. at the
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moment, morocco depends on imports of the 90% of its energy needs. that includes electricity as well as other things such as fuel for vehicles. most of that is dirty fossil fuels. vehicles. most of that is dirty fossilfuels. morocco�*s energy transformation, it has to be said, has been happening at quite a pace of the last few years but it needs to get faster still if it's to meet its ambitious targets. so i pulled together some of the country's leading thinkers to find out what happens next. with me now is the big boss of gaya energy, the largest renewable company morocco but also a company that develops wind, solar and green hydrogen at div elements across africa. also joining and green hydrogen at div elements across africa. alsojoining us, the leader energy expert for the region of the world bank and last but certainly not least an activist with the mediterranean youth climate network and also board memberfor the moroccan alliance for climate and sustainable development. all three of you, an absolute pleasure
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having your may show. thanks for your time. having your may show. thanks for yourtime. let's having your may show. thanks for your time. let's start with you because morocco here we are in the heart of rabat. morocco is your home country. 0ver heart of rabat. morocco is your home country. over the last 15 years you've been spending a lot of money and investing a lot of money in renewable projects to let me ask you this. not only morocco but across africa but if we just look at morocco, amy a brief picture of some of the developments that you're involved in and, importantly, why morocco? why does this country seem to be one of the countries leading the charge in renewable energy? morocco has truly one of the best solar and wind resources in the world combined entity is very special. you know that we don't have oil or natural gas what we have potential that is just amazing. this is the first reason, just of a false region. this is the only resource morocco has so we need to embrace it and we have done and how announced a
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very ambitious programme to cut this energy but also this is a cultural bridge historically between the south countries and northern countries in europe of course. you know, it is a very special place and today i think morocco represents the best opportunity to get out european continuity from the dependency it has today from russian gas because the results we have here could be one of the big, big answers, part of the european demand. coming back to activities we are working on very large scale projects, wind and unsure and we have medium—sized infrastructure projects between 50 to 200 mw, photovoltaic and wind and then you have the smaller ones between one — three mw and it is more rooftop business. what mcqueen come to you and the world bank suggests that despite the bank and
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the enormous costs that are involved in moving to a low carbon economy the world bank says this is actually going to help and grow the moroccan economy. just briefly explain that. the energy transition in morocco effectively involves a shift from heavy reliance on imported fossil fuels to renewable energy and therefore decoupling from this very heavy volatility of the prices of fossil fuels so this is the first benefit. secondly, the world bank we did a study of climate developed dell might develop we estimated energy transition would generate at least 28,000 newjobs on a net basis per year which is about per year
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which is about 90% of the job benefit hearing morocco. the third benefit hearing morocco. the third benefit in the most important is how morocco can position itself as an industrial hub for investment and exports of green industrial products. for example, fertilisers, the car industry. fabulous, some will say fabulous ambitions, right? how do you balance these incredible additions with the fact that still to this day you are in porting dirty fossilfuels. fact that still to this day you are in porting dirty fossil fuels. there is a ureat in porting dirty fossil fuels. there is a great ambition _ in porting dirty fossil fuels. there is a great ambition and _ in porting dirty fossil fuels. there is a great ambition and an - in porting dirty fossil fuels. ti” is a great ambition and an effective one starts in energy transition and there are concerns about the rhythm of the implementation of the strategies and i think we lost a few years to speed up this transition
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but we are seeing now some premises and some promises also from the government that this transition will be speeded up very quickly. my mate but there and contacts out there for offshore natural gas drilling and yet they've got this huge ambition to be a renewable energy nation. morocco set the target but didn't talk much about the rest of it. from my perspective it is very controversial as we cannot really mix the two kinds of energies going towards a clean pathway and at the same time a dirty one. yet the gas now is commercialised and presented, presented as cleaner, the most clean fossil comic fossil fuel so far but this is not true when we all know
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that. it is very dirty, dirty fossil fuels also and we intend to invest in heavy glass infrastructure and it is very expensive. 50% is the renewable mix but it is not the newer productions if we come to produce electricity we are more at 20% and we will take oil and let's be very clear that we cannot accuse morocco and it is a global addiction. absolutely, but morocco is putting... morocco sorting itself out in the global stage is a renewable nation... we cannot re - lace renewable nation... we cannot replace today _ renewable nation... we cannot replace today fossil _ renewable nation... we cannot replace today fossil fuels - renewable nation... we cannot replace today fossil fuels by i replace today fossil fuels by renewables. it is very clear it is impossible and if morocco find that it will be very happy to have natural gas because the objective of any country is to have energy sovereignty. and we see what is happening today with the war in
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ukraine. energy 70s in the middle of all the discussion america needs a mix. i all the discussion america needs a mix. . g: ii , all the discussion america needs a mix. . ;;:: , , all the discussion america needs a mix. . ;;::f , , , mix. i have 3096 reserve because gas is intended in — mix. i have 3096 reserve because gas is intended in washer _ mix. i have 3096 reserve because gas is intended in washer for _ mix. i have 3096 reserve because gas is intended in washer for phasing - is intended in washerfor phasing out coal. is intended in washer for phasing out coal. ,, , ., ., out coal. still in my view we have a lot of potential _ out coal. still in my view we have a lot of potential that _ out coal. still in my view we have a lot of potential that we _ out coal. still in my view we have a lot of potential that we can - out coal. still in my view we have a lot of potential that we can raise i lot of potential that we can raise the ambition of renewable energy in morocco more than what is actually done and to lessen this potential. 0pen like i'm happy because it is more business for us. he has a point. you are a climate activist but we can never get away probably from some form of fossil fuels to make up part of this mix. i believe that fossil fuels _ make up part of this mix. i believe that fossil fuels have _ make up part of this mix. i believe that fossil fuels have no _ make up part of this mix. i believe that fossil fuels have no bright - that fossilfuels have no bright future. we are still using it. and we ought to be phasing down and
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phasing out completely. idietitian we ought to be phasing down and phasing out completely. when you look at the numbers _ phasing out completely. when you look at the numbers in _ phasing out completely. when you look at the numbers in terms - phasing out completely. when you look at the numbers in terms of. phasing out completely. when you i look at the numbers in terms of c02 look at the numbers in terms of co2 emissions this wonderful country, the moroccans, they actually are responsible for significantly less and pretty much the whole world. we are below the global average and why with what is happening here is that so important?— so important? morocco is a relatively — so important? morocco is a relatively small _ so important? morocco is a relatively small country - so important? morocco is a relatively small country in i so important? morocco is a i relatively small country in the world stage and is relatively industrialised but not so industrialised but not so industrialised and i think that explains why the contribution to the global carbon emissions are not so high. i wanted to come back to the issue of the energy transition. i think precisely the term transition means that it's going to be a gradual process. i mean, we talk about our analysis of the world bank showing you can decarbonise the moroccan economy gradually by the 20 50s but this is a fairly long time,
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right? so right now morocco is reliant more than 90% on fossil fuels so it will be a gradual process. there may be a role, transition role for natural gas in that process and the new build up your renewable energy and then because of the intermittency, i mean, the sun is not always shining, the wind is not always blowing, seeming to firm it up, you need to invest in storage technology, which is expensive. so this is why it is going to be a gradual process that will happen over two, three, decades and also green hydrogen will play an important role. lode and also green hydrogen will play an important role-— and also green hydrogen will play an important role. we know the moroccan government is — important role. we know the moroccan government is undertaking _ important role. we know the moroccan government is undertaking a _ important role. we know the moroccan government is undertaking a set - important role. we know the moroccan government is undertaking a set of - government is undertaking a set of reforms just to make business and investment in this country easier. that they go far enough? to make business and investment in this
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country easier. they go far enough? at helping the country? i5 country easier. they go far enough? at helping the country?— at helping the country? is evolving slowl for at helping the country? is evolving slowly for us- _ at helping the country? is evolving slowly for us. we _ at helping the country? is evolving slowly for us. we wish _ at helping the country? is evolving slowly for us. we wish it _ at helping the country? is evolving slowly for us. we wish it would - at helping the country? is evolving slowly for us. we wish it would go | slowly for us. we wish it would go faster but when you compare morocco to the rest of the continent, morocco is doing very good. in the world itank _ morocco is doing very good. in the world bank perspective, _ morocco is doing very good. in the world bank perspective, again, i morocco is doing very good. in the world bank perspective, again, these reforms, do they go far enough to attract foreign investment into morocco? and should other countries to be watching morocco closely? morocco was an early mover in the renewable energy scene but we believe it can go further, definitely. as we were saying, the investments that you will need in renewable energy, in storage, in green hydrogen etc are quite massive and the bulk can indeed come from the fibre sector. but in order to attract that private sector on such attract that private sector on such a massive scale i think the government can and should undertake
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some reforms for example further reforms in the electricity sector and really make sure that the electricity grid is fully open and well regulated for private sector producers to be will to wheel their power through the grid at a different voltage levels. some efforts can be made at making the cost and the tariffs of electricity, you know, transparent and fully cost reflective and also the need to develop wholesale markets so in terms of lessons learned for other developing countries i would say definitely the need strong political will and direction at the very
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highest level of the straight and this has been a key strength in morocco and secondly i would say the government has to put in place at the right targets for decarbonisation, the right objectives, unlike policy, you know, to have a good investment environment. but then let the private sector come, take risks and make technology choices. what private sector come, take risks and make technology choices.— make technology choices. what is really missing _ make technology choices. what is really missing is _ make technology choices. what is really missing is the _ make technology choices. what is really missing is the liberalisation j really missing is the liberalisation of the _ really missing is the liberalisation of the market and i think it is a wiii-win— of the market and i think it is a win-win for— of the market and i think it is a win—win for everybody and we would have access — win—win for everybody and we would have access to the cheapest possible green _ have access to the cheapest possible green not _ have access to the cheapest possible green not to that in the world and we deliver— green not to that in the world and we deliver initiatives —— it is not just— we deliver initiatives —— it is not just for— we deliver initiatives —— it is not just for morocco. will be a net exporter— just for morocco. will be a net exporter of green electrons, greenfield, green hydrogen to europe and the _ greenfield, green hydrogen to europe and the rest of the world and it is and the rest of the world and it is a shift _ and the rest of the world and it is a shift and — and the rest of the world and it is a shift and i— and the rest of the world and it is a shift and i wish we there and if we get _ a shift and i wish we there and if we get there you would see that morocco — we get there you would see that morocco will become one of the
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leaders — morocco will become one of the leaders in — morocco will become one of the leaders in the world. let morocco will become one of the leaders in the world.— morocco will become one of the leaders in the world. let me restate this targets- — leaders in the world. let me restate this targets. moroccan _ leaders in the world. let me restate this targets. moroccan governments has targets of 53% as as a tea coming from renewables years away and there is a need to speed things up. that target achievable? it is more than _ up. that target achievable? it 3 more than achievable. i will give you a must for the audience to understand. when we speak about green hydrogen, the calculation the eu has released a very clear road map that in his 20 million tonnes of green hydrogen from 2030. there's 10 million tonnes of green hydrogen would represent 20 times the installed capacity of electricity in morocco and i will tell you about the projects we are developing green
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projects and we have a project that would provide a high percentage of all the energy needs of germany and another project will provide 4% of all italy's energy needs engine terms of green hydrogen we have six projects our company is developing that could answer to 25% of the needs of the eu. that could answer to 2596 of the needs of the eu.— that could answer to 2596 of the needs of the eu. ~ . ., , , needs of the eu. what really puzzled me as morocco _ needs of the eu. what really puzzled me as morocco was _ needs of the eu. what really puzzled me as morocco was my _ needs of the eu. what really puzzled me as morocco was my great - needs of the eu. what really puzzled i me as morocco was my great ambition to provide toxicity from europe and then start shipping to europe and you think why don't you have 100% at home first and then any surplus. what is the business sense behind that. ., , , , that. you will bring huge industry end investments _ that. you will bring huge industry end investments of _ that. you will bring huge industry end investments of the _ that. you will bring huge industry end investments of the country. | that. you will bring huge industry i end investments of the country. you create jobs. end investments of the country. you createjobs. if end investments of the country. you create jobs. if you end investments of the country. you createjobs. if you have end investments of the country. you create jobs. if you have a end investments of the country. you createjobs. if you have a large consumer in europe bankable in 25 years you can easily find a project and there may be a part you can shift tomorrow and even industries in morocco are not ready to consume
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green hydrogen so i don't think we should do both and it is to different markets. i should do both and it is to different markets. i believe we should fulfil— different markets. i believe we should fulfil the _ different markets. i believe we should fulfil the good - different markets. i believe we should fulfil the good needs i should fulfil the good needs domestically rather than exporting it. it domestically rather than exporting it. , ., ., ., it. it is not either - all. you can t to it. it is not either - all. you can try to do _ it. it is not either - all. you can try to do both- _ it. it is not either - all. you can try to do both. by _ it. it is not either - all. you can try to do both. by exporting i it. it is not either - all. you can try to do both. by exporting on | it. it is not either - all. you can i try to do both. by exporting on as you can say, you can reach a larger scale and reduce the costs so ideally you should do both but morocco has a big young population and he needs to create jobs and value locally and it would be lost if morocco was to use most of its renewable energy and export it rather than develop industry locally i think there would be lost. fin rather than develop industry locally i think there would be lost.- i think there would be lost. on that note, a i think there would be lost. on that note. a real — i think there would be lost. on that note, a real pleasure. _ i think there would be lost. on that note, a real pleasure. thank- i think there would be lost. on that note, a real pleasure. thank you i
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i think there would be lost. on thatj note, a real pleasure. thank you so much for coming on and good luck with everything and we will check in with you soon. morocco's energy transformation plans were first played out by king mohammed the sixth back in 2009 and while the huge well of those solar power plants have been up and running since 2016 this government is acutely aware it has its work cut out if it wants to meet its commitment and that commitment the majority of its own electricity coming from renewable sources by 2030 and i have come here to catch it the minister in of making all of that happened. morocco's minister of energy transformation and sustainable development, absolute pleasure having on the show. just briefly outline if you will the government's plan when it comes to this energy transition generating
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renewable sources and also exporting it because that is a big part of the plan, right? it because that is a big part of the plan. right?— plan, right? energy strategy is really based — plan, right? energy strategy is really based on _ plan, right? energy strategy is really based on particulars i plan, right? energy strategy is really based on particulars and plan, right? energy strategy is i really based on particulars and we need to ensure the triangle of the main staple in time. indeed the first pillar of our energy strategy is really ramping up renewables so we can see their target of 22% by 2030. pillar number two is energy efficiency and we have tried to be very efficient in the way we produce, transport and consume energy in the third pillar is regional and international integration in international markets. ,, integration in international markets-— integration in international markets. ,, , ., , ., ., markets. seven years from now morocco is _ markets. seven years from now morocco is aiming _ markets. seven years from now morocco is aiming to _ markets. seven years from now morocco is aiming to have i markets. seven years from now morocco is aiming to have its i markets. seven years from now l morocco is aiming to have its own electricity, 52% of electricity from
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renewable sources and that of the tight time and correct me if i'm wrong but earlier this year you told a session in parliament that there was a need to speed up this transition. what you need to speed up transition. what you need to speed up and how you're going to do that. speeding up as a challenge several countries are facing especially countries are facing especially countries like morocco who have really progressive and green in their energy strategy so speeding up is related to fur some of the challenges that we are facing internationally. remember, we cannot do this out of a vacuum in the world isjust coming out do this out of a vacuum in the world is just coming out from not only a couple of years at the historic pandemic but a total dislocation of supply change in value chains affecting also renewable energy as well and the way we trade solar panels and windmills and under
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speeding up democracy and many many countries you notice because you need to have access to land permits a relatively fast to ensure that investors get access to the opportunities they want. you also need to ensure _ opportunities they want. you also need to ensure you _ opportunities they want. you also need to ensure you put _ opportunities they want. you also need to ensure you put the i need to ensure you put the investment you need on the grid. let me ask you this about something i'm not struggling with but i want your answer. because before you even reach providing your people with 100% renewable electricity before you do that you want to start exporting some of your valuable extra electricity and why do that before providing moroccans with would renewable electricity? fiur would renewable electricity? our osition would renewable electricity? our position as _ would renewable electricity? oi" position as today is make would renewable electricity?
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that additional trade. as i said earlier, there is a lot of empowerment that comes with trained and it boils down to energy security and it boils down to energy security and energy access more than making sure that we want to expert forms of energy and that is why i take a complete example of how we are monetising some of our resources for example we want to enable investors buy particularly international and private investors to be able to militarise as much as possible was at the same time the priority is to ensure moroccans and people living in morocco and people working in morocco and economic to show us morocco and economic to show us morocco has access to low—cost economic green energy and the severity number one.— economic green energy and the severity number one. correct me if i
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am wron: severity number one. correct me if i am wrong here _ severity number one. correct me if i am wrong here but _ severity number one. correct me if i am wrong here but morocco - severity number one. correct me if i am wrong here but morocco at i severity number one. correct me if i am wrong here but morocco at the l am wrong here but morocco at the moment has tenders out there to bring natural gas offshore of your coast. that is a fossil fuel. how do you square that with this incredible ambition? for you square that with this incredible ambition? ., a, . ., you square that with this incredible ambition? ., . ., , ., you square that with this incredible ambition? ., , ., , ambition? for morocco it is a very easy question _ ambition? for morocco it is a very easy question to _ ambition? for morocco it is a very easy question to us _ ambition? for morocco it is a very easy question to us square - ambition? for morocco it is a very easy question to us square in i easy question to us square in morocco, there is no balance to find because morocco has 0s been a net importer. we are not your traditionalfossilfuel importer. we are not your traditional fossil fuel exporter he would need to balance that with renewable plans for the country. those two bases we are trying to develop, we are trying to push primarily for morocco's domestic meat because we have a power sector today which is gas anything today for energy security the world has realised we need to get away from coal and more polluting heavy fuel and other fossil fuels. coal and more polluting heavy fuel and otherfossilfuels. we need gas in the system and why do we need
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gas? because if we want to exceed 15% of all capacity and renewables need to handle the intensity of renewables in the system. world bank's renewables in the system. world itank's recent — renewables in the system. world bank's recent reporter— renewables in the system. world bank's recent reporter morocco l renewables in the system. world bank's recent reporter morocco says your government has limited amount of cash to play with and i am just wondering if you believe underfunding is going to be there to fulfil this ambition you have? i really don't think funding is the issue and first we have the other big commitment of the new development model is that government will not be the one investing primarily in infrastructure and energy project especially when those projects are bankable. but like you say it is private sector. primarily the private sector. 0ther
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say it is private sector. primarily the private sector. other than as government is to ensure we facilitate access of investors to investment opportunities and ensure we take the right time to ensure private sector takes the technology risks and the type of risk they are able to manage. fin risks and the type of risk they are able to manage.— risks and the type of risk they are able to manage. on that point, good luck with everything _ able to manage. on that point, good luck with everything and _ able to manage. on that point, good luck with everything and i'll- able to manage. on that point, good luck with everything and i'll check i luck with everything and i'll check in with the same. you search for the show and i will draw welcome to morocco. that is if the special edition of the show. we can keep the letters and be busy settle smartphone app and be busy settle smartphone app and also follows on twitter. tweet me and i will tweet back. you get me at... is watching. i will see seen. goodbye. —— thanks watching, able will see seen.
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focused live from london, this is bbc news. focused long delays for some passengers travelling to the uk. a nationwide issue with the border force system leads to problems with e—gate passport controls. we're live here at heathrow airport — one of the many airports across the uk experiencing disruption at the moment. it's the final day of campaigning in turkey, ahead of one of the country's most divisive presidential elections, where the economy and immigration are key voter concerns. i'm anna foster live in istanbul. recep tayyip erdogan, is appearing here soon with just hours to go until the polls open.
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