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Governments urged to support green energy post-COVID-19
GLOBAL
A group of leading global economists has called for renewables to play a prominent role in post-coronavirus (COVID-19) economic recovery.
They argue that government investment would be the most cost-effective way to stim- ulate virus-hit economies, while also pushing the energy transition forward and combating climate change.
A paper was published this week from the Smith School of Enterprise and the Environment at Oxford University, whose authors include Nobel laureate Joseph Stiglitz from Columbia University and prominent UK climate expert Nicholas Stern.
The report warns that the “COVID-19 crisis could mark a turning point in progress on cli- mate change.”
“There are reasons to fear that we will leap from the COVID frying pan into the climate fire,” the authors warned, stressing that “emis- sions will rebound once mobility restrictions are lifted and economies recover, unless govern- mentsintervene.”
The report warns that imminent fiscal recov- ery packages could entrench or partly displace the current fossil fuel-intensive economic system, and that much will depend on policy choices by governments.
The report is built on a survey of 231 central bank officials, finance ministry officials and other economic experts from G20 countries.
The study aims to assess various proposals to stimulate economies that have been put forward since the 2008 economic crisis.
The results suggested that green projects such as boosting renewable energy or energy efficiency create more jobs, deliver higher short- term returns and lead to increased long-term
cost savings relative to traditional stimulus meas- ures, Reuters reported.
“The COVID-19-initiated emissions reduc- tion could be short-lived,” said Cameron Hep- burn, lead author and director of the Smith School of Enterprise and Environment at the University of Oxford.
“But this report shows we can choose to build back better, keeping many of the recent improve- ments we’ve seen in cleaner air, returning nature and reduced greenhouse gas [GHG] emissions.”
The initial response to COVID-19 has resulted in 81% of the global workforce being affected by lockdown measures to various extents, while consumer spending is falling, avia- tion has collapsed and consumer confidence has been dragged down by job losses and furloughs.
Greenhouse emissions have also fallen, by as much as 25% in China in February for example, and forecasts for 2020 as a whole put the drop in emissions at 8%.
As governments move from “rescue” to “recovery” mode, the authors identified sectors thatcouldprovideparticularlystrongreturnsin terms of both rebooting economies, creating jobs and advancing climate goals.
Industrialised countries should focus on backing “clean physical infrastructure,” such as solar or wind farms, upgrading electric grids or boosting the use of hydrogen.
The study also recommended retrofits to improve building efficiency, education and train- ing, projects to restore or preserve ecosystems, and research into clean technologies.
In lower and middle-income countries, gov- ernment should support farmers to invest in cli- mate-friendly agriculture.
The study is due to be published in the Oxford Review of Economic Policy.™
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w w w . N E W S B A S E . c o m Week 18 05•May•2020