An October report, Assessment of Green Recovery Plans after Covid-19 , modelled Green Recovery plans globally and for the EU, Germany, Poland, Spain, the UK, USA, Japan and India. In all cases, the Green Recovery Plan produced the best results measured for GDP growth, employment impacts and emission reductions . The report assessed two paths to recovery, both of which have equal cost to government: 1. a ‘return to normal’ approach by reducing VAT rates and encouraging households to resume spending; and 2. a ‘Green’ Recovery Plan that included a smaller reduction in VAT, but included public investment in energy efficiency and in upgrading electricity grids; subsidies for wind and solar power; a car scrappage program with subsidies for electric vehicles; and a tree planting program. The report was commissioned by the We Mean Business coalition and conducted by Cambridge Econometrics in the U.K.
Another report was announced in an October 28 press release: Technical Report: The Case for a Green and Just Recovery, commissioned by the C40 Global Mayors COVID-19 Recovery Task Force. This report (with details of methodology here), estimates that investing COVID stimulus funds in green solutions would create 50 million jobs, prevent 270,000 premature deaths, and deliver $280bn in economic benefits globally. Expressing concern that, “to date, only 3 – 5% of an estimated US$12 – $15 trillion in international COVID stimulus funding is committed to green initiatives”, the C40 Task Force issued a Call to Action for national governments, international institutions, businesses and world leaders. Noting that timing is consequential, the Task Force calls for “decisive climate action before COP26” , to embrace the principles of the Global Green New Deal coalition – turning away from “business as usual”, ending all public investments in fossil fuels, and pledging to reach carbon neutrality by 2050.
The C40 Mayors’ Agenda for a Green and Just Recovery was launched in July, with support from civic society, labour unions and youth activists. A detailed Implementation Guide was released in June with specific strategies.
An optimistic view: Green Stimulus Funds can take us to 1.5C
Finally, “How the coronavirus stimulus could put the Paris Agreement on track” appeared in Carbon Brief , summarizing “Covid-19 recovery funds dwarf clean energy investment needs” , an academic article published in the journal Science – (restricted access). The authors of the article argue that if just a fraction of Covid-19 fiscal stimulus – around 10% – was invested every year, it would be sufficient to fund the clean energy transition. “Together with the $300bn annual increase into low-carbon energy, investments into fossil fuels need to be reduced by $280bn per year for a Paris compliant pathway”. The optimistic conclusion: “In very concrete terms, our analysis shows that the more ambitious goal under the Paris Agreement of limiting global warming to 1.5C is still within reach. Decisive leadership, swift action and sound use of scientific advice seems to be a good recipe for coping with both the Covid-19 crisis and our warming climate.”