COVID-19 recovery funds dwarf clean energy investment needs

Governments around the globe are responding to the economic crisis brought about by the coronavirus pandemic with unprecedented economic recovery packages. This study shines a light on the opportunity for these investments to support a green recovery by inventorying and classifying the latest information on governments’ fiscal stimulus plans and comparing the size of these measures to estimates of low-carbon energy investment needs compatible with the Paris climate agreement.

Date Published
2020, October 16

Authors
Marina Andrijevic, Carl-Friedrich Schleussner, Matthew J. Gidden, David L. McCollum, Joeri Rogelj

Journal
Science
16 Oct 2020, Vol. 370, Issue 6514, pp. 298-300 , DOI: 10.1126/science.abc9697

A modest fraction of worldwide COVID-19 economic stimulus package funds—which have surpassed USD 12 trillion to date—could help put the world on track to Paris Agreement goals for the climate.

The figure below shows how Covid-19 stimulus packages (left-hand bars) compare to the annual investment needed for a Paris-compatible pathway (middle) and the shift required compared to existing policies (right-hand).