COVID-19 does not mean climate action is on hold

If the world has seen a scary future with the emergence of COVID-19, the future of our planet in a 3-4° C scenario takes us to an entirely different level of uncertainty, including in terms of health.

Fundamental to a transformational and green recovery will be early action on a longer-term agenda to address climate change, avoid habitat loss and fragmentation, reverse the loss of biodiversity, reduce pollution and improve waste management and infrastructure.

Confronted with a health crisis that has caused a global social and economic shock, the European Union and countries around the world are adopting major economic support programmes.

Beyond direct health responses, fiscal stimulus packages provide an opportunity for initiating a transformational and green recovery with the creation of green jobs.

A new report by the Paris-based think tank I4CE Institute for Climate Economics, titled Investing in climate can help France drive its economic recovery, calls for a public finance package of 7 billion euros which it believes could trigger 19 billion euros of additional public and private investment. Such a stimulus package would contribute to the economic recovery post-crisis and make France more resilient to future shocks, without reducing its contribution to international climate goals, it says.

“I4CE is convinced that climate action is not an obstacle to crisis recovery, but an effective response to the demand for resilience that is likely to emerge across Europe,” says Ian Cochran, I4CE Program Director for Financial Institutions.

I4CE believes a recovery package must prioritize outcomes relating to:

• The environment: by maintaining the credibility of the European Green Deal, by preserving the industrial capital of low-carbon sectors, by adapting the economy to climate change.
• The economy: by contributing to the revival of businesses in the short term while simultaneously reducing exposure to future crises such as oil price shocks, or the collapse of food and industrial supply chains.
• Health: by reducing the vulnerability of society to health threats, particularly by improving air quality and reducing fuel poverty.

The French State should increase the existing level of support for climate investment by an additional 4.3 billion euros per year (1.3 billion euros for off taking guarantees for renewable electricity producers and 3 billion euros for the co-financing of households, companies and local governments that undertake new investments).

The researchers believe local governments will need to increase current levels of investment and co-financing by 2.1 billion euros per year, supported by the central government. State-owned banks should increase their new commitments to businesses, local governments and project companies by 2.3 billion euros per year.

Original source: UN Environment
Published on 24 April 2020