Geography: Europe
North America
Sector: All Sectors / General Economy
Banking & Finance
Website: Fiscal Response Tracker
Subject: Summary and comparison of discretionary fiscal responses
Host: Bruegel
Coverage: European Union, United Kingdom and United States
Stimulus and Response Measures:
Commentary
As EU leaders continue to thrash out the details of the bloc’s recovery measures, there is growing evidence a green recovery is the best way of tackling the mounting economic and jobs crisis—both in the short and long terms. COVID-19 is going to result in a substantial economic cost, both in gross domestic product (GDP)...Read more »
Commentary
In Argentina, green debt relief has supported forest conservation, an approach that can and should be scaled up as coronavirus stretches budgets. At last month’s meetings of the International Monetary Fund (IMF), three topics dominated the conversation: the coronavirus pandemic, greening the recovery, and climate change. For many developing countries, especially the poorest, the overwhelming...Read more »
Commentary
Investments into Canada’s social, human, and natural capital are needed to ensure growth is sustained, equitable and opportunity-generating. Canada’s economy has been repeatedly hit by the COVID-19 pandemic and its economic fall-out. The combination of economic shutdowns, social distancing requirements, low oil prices and historic declines in export volumes have extended the downturn. As both...Read more »
Commentary
Canadians want a green and inclusive recovery. Here’s how to advance both. The damage that COVID-19’s dual economic and health crises have brought on Canada have been well-documented. Although the economy has started to recover, Canadians continue to face a lengthy period of economic turbulence ahead. The federal government has indicated that spending on an...Read more »
Commentary
In response to the COVID-19 crisis, several Nordic countries are continuing their trend of investing in a green economy. Finland’s recovery plan includes approximately EUR 500 million for green investments, including public transportation, recapitalizing its climate fund, and phasing out oil heating. Denmark has adopted 13 climate partnerships with the business sector to build a green economy....Read more »
Commentary
On 21 July, EU leaders agreed on a €1.8 trillion package that should boost the recovery after the COVID-19 crisis, but also contribute to the advancement of key EU societal objectives, starting with the climate transition. In this blog post we assess the green ambitions of the package and evaluate its consistency with the European...Read more »
Simulations
This SAVi what-if simulation forecasts the economic and environmental benefits of investing in energy efficiency and flood resilience within Canada's building sector. The forecasts point to substantial net benefits, demonstrating this to be a sustainable recovery strategy.
Commentary
In the early morning of July 21, 2020, the European Council (EC) agreed on the new long-term European Union (EU) budget and recovery fund. After a 4-day marathon meeting, the leaders of EU member states found a political compromise on the Multiannual Financial Framework (MFF) budget of EUR 1,074 billion and a specific Next Generation...Read more »
Commentary
The coronavirus crisis is a crisis like no other, and for emerging market and developing economies (EMDE), it has triggered a policy response like no other, both in scope and magnitude. Despite their diversity, and in some cases, strained resources, this large group of countries—consisting of emerging markets and low-income countries—have bolstered the provision of...Read more »
Commentary
Public procurement is more crucial than ever, as most of the COVID-19 recovery spending will be channelled through this process—so how can we ensure it drives innovation, inclusivity, and sustainability? And can we take this opportunity to rebrand it as a strategic (not just administrative) government function? As soon as the COVID-19 pandemic began, we saw an...Read more »
Webinars
16. November 2020, 3 P.M. Central European Time As part of the London Climate Action Week, the International Institute for Sustainable Development (IISD) and partners organize an interactive session about green recovery efforts in the energy sector. The event is related to the EnergyPolicyTracker.Org, a project by over 20 independent research organizations tracking public money...Read more »
Commentary
There is uncertainty in the world, more now than ever. The VUCA concept, which was used to characterize the Volatility, Uncertainty, Complexity, and Ambiguity felt in the United States following the Cold War, is now applicable on a global scale today. In fact, the COVID-19 pandemic is one clear example of the VUCA concept’s manifestation...Read more »
Simulations
This What-if simulation forecasts the economic, social and environmental outcomes of recovery spending on a road infrastructure project in Malaysia: the Pan Borneo Highway. The implementation of this large-scale highway project has commenced and is set for completion in 2023.
Webinars
In this final session Oshani Perera, the former Director of IISD`s Infrastructure Program, spoke to a very distinguished guest: Dr. Joseph Mariathasan. Their conversation focused on quantitative impact measurement and ESG reporting of companies.
Commentary
As 2020 began, the question of whether and how countries would strengthen their commitments under the Paris Agreement loomed large, driven by a global youth climate movement and a growing recognition of the urgency to keep temperature change below 1.5 degrees C. The sudden arrival of the COVID-19 pandemic greatly complicated this task, consuming the...Read more »
Commentary
Cities are on the frontlines of COVID-19, with urban residents facing devastating health and economic impacts. Many city leaders are responding with creative solutions, recognizing that actions in response to the pandemic can also make cities greener and more climate resilient. Addis Ababa, Bogota, Kampala, Berlin and Brussels created new bike lanes to reduce risk...Read more »
Commentary
The International Institute for Sustainable Development (IISD) and the Council on Energy, Environment and Water (CEEW) published the second part of a commentary series about the recovery of India’s energy sector. The series takes a detailed look at how India’s energy sector is coping with the impacts of COVID-19 and what this means for the...Read more »
Commentary
The evidence is crystal clear that fossil fuel subsidies are environmentally harmful and undermine efforts to tackle climate change. In the aftermath of COVID-19, governments have an opportunity to use subsidy reform and fuel taxation as tools for a green recovery. (…) Today’s low global oil prices provide a chance for countries to reform their fossil fuel subsidies without...Read more »
Commentary
Around the world, the number of people walking and cycling has risen to unprecedented levels during the COVID-19 pandemic. For example, the number of kilometres travelled by bike in Switzerland doubled during the country’s partial lockdown, while counting stations in Philadelphia saw the number of cyclists increase by an average of 150%. Government leaders are...Read more »
Commentary
Sustainability-linked bonds can play an important role in allocating capital toward COVID-19-related relief or recovery measures. With infection rates still stubbornly high in many countries, it has become clear that mitigating the economic impact of COVID-19 will require ambitious stimulus measures and spending. This is where COVID-19 bonds have a vital role to play, given their ability...Read more »
Commentary
The global health crisis has left us no choice but to demand a transformative future where more adaptable, flexible, multi-purpose and inclusive infrastructure can help society stay resilient in the face of looming threats. As we emerge from this coronavirus pandemic, what future should we anticipate? Listening to some politicians and pundits, we are led...Read more »
Webinars
30. July 2020. 2 p.m. Central European Summer Time/ 8 a.m. Eastern Standard Time What is impeding the deployment of sustainable infrastructure? Despite all the rhetoric on sustainability and sustainable recovery from politicians, commentators, investors, project developers and citizens, sustainable infrastructure has yet to happen. Howard Mann, Senior Law Adviser with IISD, shared observations on...Read more »
Commentary
Joseph Mariathasan Corporate Purpose: Shareholders or society? This timely and thoughtful commentary in Investment and Pensions Europe makes a very strong case for the valuation of externalities. Mariathasan argues that unless externalities are valued in dollar terms, investors will continue to finance assets and services that bring no social or environmental value. Public goods are...Read more »
Webinars
A conversation with Leonardo Garrido, Lead Economist, New Climate Economy, and Andrea Bassi, CEO, KnowlEdge, and Senior Associate, IISD. 15 July 2020, at 4:00 PM Central European Summer Time Watch the webinar’s full recording: Planning a low-carbon recovery requires that we look ahead to determine how public spending today can trigger economic growth tomorrow. But growth...Read more »
Webinars
A conversation with Prof. Gail Whiteman, Founder, Arctic Basecamp Monday, July 6, 2020, 6:00 PM Central European Summer Time (CEST). Are we indeed seeing a low-carbon recovery? What are the early signs and who are the front runners? And should we be doing more to reward them? Post-pandemic greenhouse gas emissions are rising, and, as we...Read more »
Commentary
As the Task Force for a Resilient Recovery begins work on low-carbon, resilient pathways for post-COVID-19 recovery, it’s worth taking a step back to examine how stimulus spending is actually financed and what patterns are emerging from the design and implementation of such packages in Europe, Japan, South Korea, and Australia. The majority of COVID-related stimulus financing...Read more »
Commentary
On April 13, 2020, the International Monetary Fund (IMF) approved immediate debt relief to 25 of its member countries under the adapted Catastrophe Containment and Relief Trust (CCRT). The debt relief is one of several measures to alleviate the impacts of the COVID-19 pandemic and supports, especially vulnerable and indebted countries for an initial phase...Read more »
Commentary
Examples of economic stimulus packages announced in March 2020 Can these economic stimulus packages be accompanied by targets on environmental performance, social cohesion, and economic governance? The humanitarian crisis caused by the COVID-19 pandemic continues to be devastating, and targeting stimulus spending on emergency responses, healthcare, food security, and keeping jobs and small businesses alive...Read more »
Webinars
A conversation with Joseph Intsiful, a Senior Specialist at the Green Climate Fund who focuses on climate information and early warning systems, and Andrea Bassi, Senior Associate, IISD and CEO KnowlEdge. Webinar 2: July 10, 2020, at 10:00 AM Central European Summer Time (CEST) Watch the webinar’s full recording below: Joseph and Andrea explored why...Read more »
The Italian government unveiled the outline of the national COVID-19 recovery plan, which will allocate a total of EUR 196 billion to six key areas. The plan includes the following investments: EUR 74.3 billion is earmarked for a green revolution and ecologic transition.EUR 48.7 billion will go toward digitalization and innovation.EUR 27.7 billion will be...Read more »
The Government of Finland intends to invest European Union (EU) stimulus funds in reducing carbon emissions and fostering ecological sustainability. Finland will receive about EUR 2.3 billion from the EU’s Recovery and Resilience Facility during 2021–2023. These funds form part of the EUR 750 billion recovery fund that the EU is planning to provide to...Read more »
On November 25, the Government of the United Kingdom presented its spending review and the first National Infrastructure Strategy. Chancellor Rishi Sunak announced an investment of GBP 100 billion in infrastructure in 2021/2022. Despite recent political commitments, the National Infrastructure Strategy includes little new spending for green projects. For instance, GBP 27 billion is earmarked...Read more »
The Mayor of London, Sadiq Khan, launched the first part of London’s Green New Deal fund. The investments of GBP 10 million aim to boost green jobs, tackle climate change, and address inequalities. This first phase of the package is expected to secure around 1,000 green jobs—for instance, related to solar panel installation and energy...Read more »
On November 17, 2020, the United Kingdom government unveiled its 10-point green recovery plan. The GBP 12 billion stimulus package will benefit the green economy across the country, for instance going toward carbon capture, hydrogen, nuclear, electric vehicles, and renewable energy. Prime Minister Boris Johnson estimates that the green recovery plan will create 250,000 new...Read more »
In a policy briefing published on November 12, the think tank E3G discusses Europe’s economic recovery from the COVID-19 crisis and efforts to align the recovery with the European Green Deal. The paper called Drafting Recovery Plans for a Resilient and Green Economy emphasizes that national governments should carefully plan their recovery packages to make...Read more »
According to a new report by the Institute for Public Policy Research (IPPR), green upgrades to homes in the North of England could foster a sustainable recovery by creating hundreds of thousands of jobs and driving down emissions. The think tank analyzed the effects of retrofitting millions of homes with energy efficiency measures, such as...Read more »
On November 9, 2020, the British Chancellor Rishi Sunak unveiled green finance plans, proposing to issue the United Kingdom’s first sovereign green bond in 2021 and make climate risk disclosure mandatory for listed major companies from 2025. In a statement to parliament, Sunak said about the green bonds: “This will be the first in a...Read more »
On November 5, 2020, an England-wide nature restoration initiative was launched. It aims to tackle biodiversity loss and climate change, and to help people reconnect with the natural world. Led by Natural England, the Nature Recovery Network (NRN) Delivery Partnership brings together representatives from over 600 organizations, such as RSPB, Wildlife and Countryside Link, and...Read more »
The Government of the United Kingdom announced GBP 134 million in cleantech funding on November 4, 2020. The investments are part of the country’s green recovery efforts and aim to help clean growth projects develop new technologies, create new jobs, drive productivity, and tackle climate change. The GBP 134 million comes from the United Kingdom’s Sustainable...Read more »
On October 28, 2020, the Scottish government released its Offshore Wind Policy Statement. The statement indicates that, in a green recovery effort, Scotland plans to scale up its wind energy generation capacity. The government intends to install hundreds of wind turbines off its coast, which will generate clean energy for more than 8 million homes....Read more »
On October 28, Nordic Prime Ministers announced their intention to encourage institutional investors to scale up green finance and investments. In a joint declaration, the Prime Ministers underlined that Nordic countries could and should take the lead on green recovery, pointed to the urgency of mobilizing private green investments, and stressed the interdependency of the...Read more »
In early October, the Spanish President Pedro Sánchez presented plans to invest EUR 72 billion in European funds over the next three years, aiming to create 800,000 jobs. The Recovery, Transformation and Resilience Plan addresses four key areas for a COVID-19 recovery: ecological transition, digitalization, gender equality, and social cohesion. The Spanish government expects the...Read more »
On October 14, the European Commission (EC) published its new Renovation Wave Strategy to improve the energy performance of buildings. It aims to double renovation rates in the next 10 years while ensuring that renovations lead to higher energy and resource efficiency. According to the EC, 35 million buildings could be renovated and up to...Read more »
On October 1, 2020, Canadian Prime Minister Justin Trudeau announced a plan to position the Canada Infrastructure Bank (CIB) as an important vehicle for a sustainable recovery from the COVID-19 pandemic. The bank will allocate CAD 10 billion within three years to projects that create 60,000 jobs and contribute to a green, low-carbon economy. Priority...Read more »
In September 2020, The Guardian reported that a majority of people across Britain supports an ambitious transformation of the United Kingdom into a greener, fairer, and more equal society. The assessment is based on an extensive inquiries by a cross-party group of MPs, which involved over 55,000 people through representative polls, workshops, and telephone conversations....Read more »
The Task Force for a Resilient Recovery has released its final report, recommending CAD 55.4 billion in green recovery investments to support long-term jobs and economic growth in Canada. The Task Force encourages Canada’s leaders to learn from the missed opportunities after the 2008/09 financial crisis when countries invested in recovery measures that resulted in a historic...Read more »
On September 10, 2020, the Spanish authorities announced EUR 181 million in spending on renewable energy projects. The investments are meant to boost a clean economic recovery by creating employment and cutting carbon emissions. The financial support will benefit seven regions across the country; while a majority is earmarked for Andalucía, funding is also provided...Read more »
The British government has launched its GBP 40 million Green Recovery Challenge Fund, supporting up to 5,000 jobs in areas such as tree planting and nature conservation. Environmental groups can now apply for grants worth GBP 50,000 to GBP 5 million. The fund is aimed at labour-intensive projects that deliver nature-based solutions to climate change...Read more »
The Smart Prosperity Institute has published an article outlining opportunities for a green and inclusive COVID-19 recovery in Canada. The authors underline that some groups within society, especially women, younger workers, persons of colour, and persons with disabilities, have been hit disproportionately hard by the recession. The article, therefore, calls on the government to carefully...Read more »
On September 2, 2020, the Portuguese government launched a new energy-efficiency program. The Programa de Apoio Edifícios mais Sustentáveis includes various incentives to promote the energy efficiency of buildings and their decarbonization and has a total volume of EUR 4.5 million (EUR 1.75 million in 2020 and EUR 2.75 million in 2021). Several types of...Read more »
The governments of Canada and British Columbia unveiled details about their investments in green energy solutions across British Columbia. According to a press release from September 1, 2020, eleven projects will be funded to save energy and reduce pollution. The projects are jointly financed by the Government of Canada, local and Indigenous communities, and the...Read more »
On September 3, 2020, the French government unveiled details about the country’s new EUR 100 billion economic stimulus package. It is meant to increase the competitiveness of the French economy, boost jobs, and green the economy. One third of the stimulus package, which amounts to 4% of the GDP, is allocated to green measures. According...Read more »
On August 28, 2020, the Scottish Government proposed the key missions for the new Scottish National Investment Bank. The Bank is supposed to support Scotland’s economic recovery by creating inclusive, long-term economic growth based on three missions: Fostering a just transition to net-zero emissions by 2045 (primary mission).Creation of opportunities and reduction of inequalities.Usage of...Read more »
On August 31, 2020, Forbes published an article outlining several policy recommendations to support the U.S. offshore wind sector. It is based on a recent policy brief by climate policy think tank Energy Innovation. In the Forbes article, author Amanda Myers first presents the main benefits and opportunities of offshore wind in the U.S., highlighting...Read more »
On August 27, 2020, partners of the U.K. Ignition project launched the report Nature-Based Solutions to the Climate Emergency: The Benefits to Business and Society. The project’s aim is to develop innovative financing solutions for investments in Greater Manchester’s natural environment, helping the city to adapt to the impacts of climate change. The report presents...Read more »
On August 25, 2020, U.S. Senate Democrats published a comprehensive plan calling for the government to step up climate action and stimulate the creation of green jobs. The new report demands public spending of more than USD 400 billion a year to achieve net-zero emissions by 2050. The spending would equal about 2% of the...Read more »
On August 21, 2020, the Scottish government announced the fast-tracking of a GBP 20 million low-carbon heat fund for social housing. Scotland’s energy minister, Paul Wheelhouse, said: “This £20 million Social Housing Net Zero Heat fund will deliver rapid investment to support both our energy and construction sectors whilst reducing bills for those who in...Read more »
On August 24, 2020, the German Government announced the launch of its first Green German Federal Securities in the second half of 2020. Up to EUR 11 billion is expected to be issued through these financing instruments in the coming months. Dr. Jörg Kukies, State Secretary at the Federal Ministry of Finance, explained: “From now...Read more »
In August, the Canadian government announced improved funding opportunities for infrastructure projects in the country. Provinces and territories can redirect up to 10% of the funds they originally received under the Investing in Canada Infrastructure Program to the new COVID-19 Resilience funding stream. The maximum total volume to be reallocated amounts to CAD 3.3 billion....Read more »
On August 12, 2020, the National Observer published an article analyzing Canada’s stimulus spending for the energy sector. Based on data compiled by the Energy Policy Tracker, which is co-hosted by IISD, the authors highlight the huge sums supporting the production and consumption of fossil fuels. Canada, in particular, has committed a total of USD...Read more »
The Department for Transport in England announced a second recovery package for bus and light rail operators on August 8, 2020. The GBP 256 million package supports public transport operators as they continue to cope with reduced passenger numbers and hence lower revenues compared to pre COVID-19 levels while being asked to increase service frequency...Read more »
In August, the UK Government released more details about the new £2 billion Green Homes Grant which will be launched at the end of September. Through the fund, about 600,000 homeowners in England can receive up to £10,000 to install insulation, heat pumps and draft proofing in their homes. By covering up to two-thirds of...Read more »
On August 3, 2020, the European Investment Bank (EIB) announced the financing of nearly 40 projects in Barcelona that serve multiple objectives for the city. On the one hand, the projects contribute to the climate change mitigation and adaptation efforts of the city; on the other hand, they create jobs and enhance social inclusion. Therefore,...Read more »
London Mayor Sadiq Khan and the London Recovery Board announced a GBP 1.5 billion Infrastructure Investment Package on July 29, 2020, that aims to recover the local economy, creating jobs and reducing London’s carbon and water footprints. The specific projects and corresponding budget allocations are yet to be defined. Projects will be implemented together with...Read more »
The Autonomous Province of Trento has signed an agreement for EUR 300 million in financing from the European Investment Bank to distribute loans to municipalities and public entities in need of funding for a sustainable recovery from the pandemic. The agreement was signed on July 21, 2020, and an initial tranche of EUR 160 million...Read more »
On July 22, 2020, the British government announced a GBP 350 million budget to fund the decarbonization of heavy industry and the construction, transportation, and aviation sectors. This green recovery spending is earmarked to support the U.K.’s target to reach the net-zero target by 2050 and advance green innovation. The press release provides details about...Read more »
In this article, Mukhisa Kituyi, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), and Dona Bertarelli, UNCTAD’s new Special Adviser for the Blue Economy, call for a sustainable blue economic recovery and describe what that could look like. The health of the oceans is in steep decline. A natural resource so crucial...Read more »
On July 21, the heads of state or government of the 27 European Union (EU) member states, together with the European Council President and the President of the European Commission, reached an agreement on a EUR 1.074 billion long-term budget and a EUR 750 billion COVID-19 recovery fund after a marathon summit. This was the...Read more »
On July 17, 2020, West Berkshire Council issued the U.K.’s first local government green bond using the crowd investment platform Abundance. This innovative financing solution is called Community Municipal Investment and targets local citizens to become investors for green projects in their own municipalities. Within a week, GBP 300,000 of the GBP 1 million target...Read more »
The UN Environment Programme (UNEP), alongside several partners in the Sustainable Infrastructure Partnership (SIP), developed a set of ten principles for post-COVID-19 recovery focusing on investing in sustainable and resilient infrastructure. The ‘Principles for Recovery’ provide a framework for decision making on infrastructure spending for post-COVID-19 recovery and stimulus packages. The Principles call for decisions...Read more »
On 15. July 2020 the European Investment Bank (EIB) approved EUR 16.6 billion of new financing, of which EUR 10.2 billion will be invested for COVID-19 related recovery projects. Investments are earmarked for improving public health services and adapting other public services institutions across several European countries to respond better to the pandemic. Credit lines...Read more »
On July 15, the World Economic Forum released a new report on the need to address the future of nature, in addition to climate change, in a post-COVID-19 recovery. The report highlights that a business-as-usual approach has no future. In addition to fighting climate change, three systems need to undergo a fundamental transformation to address...Read more »
On June 26, 2020, the European Investment Bank (EIB), the long-term lending institution of the European Union owned by its member states, announced to invest EUR 43.5 million to finance four 50-megawatt peak (MWp) solar photovoltaic (PV) plants in Andalusia, Spain. These plants are also called the Cabrera Solar Project. Emma Navarro, EIB Vice President responsible...Read more »
The UK Treasury has now published the foundations of Chancellor Rishi Sunak’s Summer Economic Update for a green recovery. Of the GBP 3 billion “green” package that was announced on July 6, 2020, GBP 1 billion will be made to retrofit public sector buildings such as schools and social housing, making them less carbon intensive....Read more »
While the European Commission’s latest forecast expects Ireland’s economy to shrink by 8.5% this year, the Irish economy is reopening faster than planned. On July 2, 2020 the Bank of Ireland outlined its plan to support the country’s economic recovery after COVID-19, which focuses on homebuilding, green investment, and local businesses. The Bank aims to...Read more »
After rail companies have already received bailouts worth £ 3.5 billion over the past few months of the COVID-19 recovery phase, signals increase that the railway system in Britain will be nationalised as reported on 09th July, 2020. The Office for National Statistics published a review that suggests counting the debt of railway operators on...Read more »
The report Green Strings: Principles and conditions for a green recovery from COVID-19 in Canada was released on July 07, 2020 and provides policy-makers concrete steps for meeting Canada’s 2050 climate commitments while spurring economic resiliency and creating good jobs. The authors of the report advocate for attaching the following seven “green strings” to COVID-19 recovery...Read more »
The FT reports on 8 July 2020 that Christine Lagarde, President of the ECB, signaled in a recent interview that the ECB’s EUR 2.8 trillion asset purchase scheme could be deployed following green policy objectives: “I want to explore every avenue available in order to combat climate change”. This would make the ECB the first...Read more »
On June 30th 2020, the European Union (EU) and the European Bank for Reconstruction and Development (EBRD) announced a total grant package of EUR 61.3 million to be provided for green and climate resilient investments in Egypt, Morocco and the countries of the Eastern Partnership. By allocating grants to energy efficiency, renewable energy and climate...Read more »
On 30th June 2020, the UK parliament passed new road transport legislation that will allow rentable e-scooters on streets from July 4th onwards. The use of privately owned e-scooters remains however illegal on public roads. The new rules will allow local authorities and administrations in the UK to deploy and promote e-scooter sharing schemes. A...Read more »
Austrian Airlines received a substantial bailout package of EUR 600 million, comprised of EUR 150 million state aid, EUR 300 bank loans to be repaid by 2026 and EUR 150 million equity capital provided by Lufthansa. This bailout package is tied to several carbon performance targets, which the airline agreed to on June 8th, 2020....Read more »
The FT reports on 29 June 2020 that Angela Merkel expressed her optimism on reaching an agreement on the EU’s EUR 750 billion post-coronavirus recovery fund. They have been disagreements over the size of the fund, the proportion of loans vs grants provided by the fund, when repayments should start for the loan portion and...Read more »
In a paper published on June 29th, 2020 the Scottish Government proposed and outlined ten guiding principles to the UK Government on how to steer an economic recovery from the COVID-19 pandemic in the region. The principles lay a strong emphasis on a sustainable economic recovery. The proposed stimulus and policy measures aim at reducing...Read more »
Reuters reports on 10 June 2020 that the European Central Bank is looking into setting up a “bad bank” for the billions of unpaid loans caused by the COVID-19 pandemic. One structure under consideration would involve the European Stability Mechanism providing guarantees to the bad bank, which would issue bonds to commercial banks in exchange...Read more »
Will we have a much quicker recovery than economists expect? The FT reports on 05 June 2020 that the US added 2.5 million jobs in May when analysts expected a decline of 7.5 million. This could signal that the US economy might have a V-shaped recovery instead of the dreaded U-shaped one, which would imply...Read more »
Germany has recently announced ambitious stimulus measures to support its economy. The FT reports on 4 June 2020 that the announced measures include EUR 353 billion emergency aid, EUR 820 billion loan guarantees and EUR 130 billion worth of tax cuts. They are expected to be funded through increased government bond issues. After years of...Read more »
As a response to the economic difficulties caused by the COVID-19 pandemic, the European Central Bank (ECB) decided to increase its Pandemic Emergency Purchase Programme (PEPP) by EUR 600 billion to EUR 1.35 trillion, reports the FT on 4 June 2020. The ECB also extended the life of PEPP from the end of 2020 to...Read more »
Zak Bentley from Infrastructure Investor emphasizes the importance of the EU’s Green Deal to be a facilitator of private investment into infrastructure. Investors are worried how the European Investment Bank will deploy this significant amount of stimulus funds, both on the debt and equity side, without effectively crowding them out.
The FT reports on 16 June 2020 that the Federal Reserve (Fed) in the US announced that it would also be buying corporate bonds to support post-COVID economic recovery. This is in addition to its existing securities purchases, including US treasuries and ETFs. With these new measures, the Fed’s aim is to reassure investors and...Read more »
On June 15, 2020, the Spanish Government announced a EUR 3.75 billion recovery package for the domestic automotive industry, of which 70% will be used to bailout companies in the automotive value chain. The remaining 30% includes measures for accelerating a sustainable transport sector in Spain, including the electrification of public transport, adjustment of rail...Read more »
Several of the 126 countries participating in the Belt and Road Initiative (BRI) are calling for debt relief, including for infrastructure projects that have been hit by negative economic effects of the COVID-19 pandemic. A range of BRI projects, such as coal-fired power plants, hydropower plants, and oil palm plantations, has been criticized for their...Read more »
The German Government announced a new EUR 130 billion economic stimulus package on June 03, 2020. It includes several strong measures for stimulating a green recovery and fostering a low-carbon economy in Germany. While some critics emphasize that the new package still misses consistent incorporation of ambitious climate targets that would ensure a full alignment...Read more »
The Finnish Government announced a EUR 5.5 billion supplementary budget on June 02, 2020 to support the economic recovery in light of the COVID-19 pandemic. About a fourth of the recovery package is dedicated for developing the country’s railway and tramway infrastructure as well as to support public transport operators. Moreover, plans have been announced...Read more »
On May 27, 2020, the European Commission (EC) announced its long-term recovery strategy, which will guide and support EU member states as they recover from the impacts of the pandemic. The EC proposes a new recovery instrument, Next Generation EU, of EUR 750 billion, which will be added to the multiannual (2021–2027) EU budget. The...Read more »
On December 8, 2020, Japanese Prime Minister Yoshihide Suga announced a new USD 708 billion economic stimulus package. The package will comprise about USD 384.5 billion in direct fiscal spending and initiatives aiming at reducing carbon emissions and fostering digital innovation. For example, USD 19.2 billion is earmarked for a fund to promote carbon neutrality...Read more »
United Nations Secretary-General Antonio Guterres highlighted the urgency of a green recovery in a speech on December 2, 2020. In his address at Columbia University in New York, he painted a bleak picture of the state of the planet, pointing to the concerning results of the provisional State of the Global Climate report by the...Read more »
The Government of New Zealand has launched a NZD 70 million fund to accelerate the decarbonization of industrial process heat and foster a clean COVID-19 recovery. The fund will offer financial support to businesses and industries to switch from boilers run on coal and gas to cleaner electricity and biomass options. Announced on November 11,...Read more »
On November 17, the government of Victoria unveiled a new AUD800 million energy saving package for homes in the Australian state. The package aims to incentivize more energy efficient appliances and heating systems, increase the energy efficiency standards of new and existing homes, and expand a solar and battery rebate scheme. The new scheme is...Read more »
The European Bank for Reconstruction and Development (EBRD), the European Union (EU), and the Green Climate Fund (GCF) launched two programs to boost green finance and improve value chains, aiming to foster a green recovery of the Egyptian economy. Working with the EBRD’s local partner banks, the programs cumulatively worth EUR 220 million will offer...Read more »
On November 10, 2020, members of the High Ambition Coalition underlined commitments for a green recovery, aiming for 60% of recovery spending to be climate-friendly; a phase-out of fossil fuel subsidies; and debt relief to give developing states the capacity for a green recovery. The coalition calls for an ambitious recovery from COVID-19 that sets...Read more »
A new report by the International Institute for Sustainable Development (IISD) tracks G20 countries’ progress in ending government support to fossil fuels and reveals large public money commitments for fossil fuel-intensive sectors in response to the COVID-19 crisis. The report Doubling Back and Doubling Down: G20 Scorecard on Fossil Fuel Funding was developed together with...Read more »
Iberdrola launched a new investment plan worth EUR 75 billion for the period 2020 to 2025. The Spanish multinational electric utility company aims to take advantage of the opportunities created by the clean energy transition and support global efforts for a green recovery from the COVID-19 pandemic. Major parts of the investments will go toward...Read more »
The Organisation of Eastern Caribbean States (OECS) and the United Nations Environment Programme (UNEP) launched a new project that aims to foster sustainable public procurement processes in the region. The project will support the development of sustainable public procurement frameworks and tools, while also building capacity in this field. A focus will be on the...Read more »
On October 30, 2020, the South Africa National Department for Cooperative Governance, World Resources Institute (WRI) Ross Center for Sustainable Cities, and the Coalition for Urban Transitions announced a new partnership. It will support a green, resilient, and equitable COVID-19 recovery for cities in South Africa while focusing on implementing the country’s Integrated Urban Development...Read more »
South Korean President Moon Jae-in has announced the country will commit to achieving carbon neutrality by 2050. During a speech to parliament on October 28, he reaffirmed plans for a Green New Deal and pledged to replace coal power generation with renewable energy. As part of the USD 37 billion Green New Deal, South Korea...Read more »
New research commissioned by the C40 Global Mayors COVID-19 Recovery Task Force illustrates the benefits of green and just recovery for employment, emissions, and health across the world’s 100 leading cities. The new technical report, published in October 2020, compares how urban greenhouse gas emissions, health, and jobs could develop under a green recovery compared...Read more »
On Monday October 27, 2020 experts met at the Organization for Economic Co-operation and Development (OECD) meeting. Expert consensus was that the estimated EUR 312 billion to be invested by OECD countries in green technologies for COVID recovery is not enough. Moreover, experts asserted that there has not been enough information on how countries plan...Read more »
From October 26th to October 28th, the thirty eighth session of the UN Economic Commission for Latin America and the Caribbean (ECLAC) is being held. The session hopes to discuss how to recover from the COVID pandemic sustainably. The session also hopes to promote a shift toward cultural equality in the region. On the first...Read more »
On October 22, 2020, a Memorandum of Understanding (MoU) was signed by the UN Environment Programme’s (UNEP) Regional Office for West Asia and the UN Development Programme (UNDP) in Iraq. The goal of the MoU is to spur progress toward the 2030 Sustainable Development Agenda, while focusing efforts on achieving environmental SDGs. One specific goal...Read more »
On October 19, the We Mean Business Coalition published a report illustrating that green recovery plans boost income, employment and GDP better than traditional stimulus measures. It therefore recommends governments to reject return-to-normal stimulus packages, e.g. with a focus on VAT reductions and increasing household spending, in favour of targeted support for green technologies and...Read more »
The German Environment Agency (Umweltbundesamt) published a paper analyzing 130 studies on green recovery programs. It finds a broad consensus on the need to use COVID-19 recovery packages to address the climate and biodiversity crises. The authors of the paper also discover a consensus on the huge benefits of green recovery programs, the eligibility criteria...Read more »
Experts from Boston Consulting Group (BCG), in cooperation with the World Economic Forum, have published a framework for designing effective infrastructure stimulus plans. In an article published on September 25, 2020, they present lessons and recommendations to help governments develop infrastructure packages that support economic recovery and provide relief from the COVID-19 crisis while also...Read more »
In September 2020, the World Bank published a new paper about private finance for nature. The detailed piece, which is available on the Green Finance Platform, argues that private finance can and must be harnessed to better protect and manage biodiversity and ecosystem services around the world. The authors underline that governments and regulators, supported...Read more »
Researchers from the Global Development Policy Center at Boston University have developed a way to measure the International Monetary Fund’s (IMF) response to the COVID-19 pandemic. The IMF COVID-19 Recovery Index aims to quantify the extent to which the organization recommends (or conditions) borrowing countries to increase their efforts to combat the pandemic, protect vulnerable...Read more »
The New Climate Institute has launched a new report about recently adopted climate policies and climate-relevant policy responses to COVID-19. The report is the latest in a series of publications analyzing global climate action. It includes three sections: An overview table of climate mitigation policies adopted or planned between July 2019 and August 2020, covering...Read more »
A new McKinsey report highlights the business case for stepping up global investments in natural capital. The authors illustrate the critical need for expanding nature conservation, analyzing global risks to natural capital, and the crucial value of nature for human activities. To reduce the loss of natural capital around the world, scientists and policy-makers demand...Read more »
On September 28, the Global Innovation Lab for Climate Finance (the Lab) launched eight innovative finance solutions designed to channel private resources to climate action in developing economies. The instruments pay attention to supporting the most vulnerable populations during and after the pandemic while building long-term resilience. The finance instruments will support nature-based solutions as well...Read more »
Political leaders from around the world have launched the Leaders’ Pledge for Nature, committing to reversing biodiversity loss by 2030. Supported by more than 70 countries and several non-state actors, the pledge is meant to send a united signal to step up global ambition for biodiversity, nature, climate, and people. The Leaders’ Pledge for Nature...Read more »
In an article published in September 2020, authors from the Boston Consulting Group (BCG) make the case for scaling up green recovery efforts worldwide. The article underlines that well-designed economic stimulus packages can create much-needed jobs and lower emissions while also transforming the countries for leadership in the green economy over the longer term. The...Read more »
The International Energy Agency (IEA) has published its new flagship report, Energy Technology Perspectives 2020. It analyses more than 800 different technology options to assess pathways to reaching net-zero emissions by 2070 while ensuring a resilient and secure energy system. According to the report, transitioning only the power sector to clean energy would get the...Read more »
The Organisation for Economic Co-operation and Development (OECD) published a new policy brief about opportunities for a green, inclusive COVID-19 recovery. The document, called Making the Green Recovery Work for Jobs, Income and Growth, includes a review of announced recovery and stimulus policies in OECD and Key Partner countries. On the one hand, OECD governments...Read more »
The International Institute for Environment and Development (IIED) published a paper about the use of debt swaps to address the debt, climate, and biodiversity crises. Published in September 2020, the paper illustrates how governments could address this triple crisis in their COVID-19 recovery packages using debt for climate and nature program swaps. According to the...Read more »
In August 2020, the Asian Development Bank (ADB) published a brochure informing countries about sustainable recovery opportunities. Apart from presenting the central reasons for a green recovery, the document, called A Pathway to a Low-Carbon and Resilient Future, also entails three items that could help decision-makers design such programs: It lists possible low-carbon and resilience-enhancing...Read more »
The Asian Development Bank (ADB) has restructured its financing plan for Bangladesh to help the country recover from the COVID-19 pandemic. The Country Operations Business Plan (COBP) for 2021 to 2023, which was published in August, includes USD 5.28 billion in loans. A major part of the funds (USD 2.39 billion) will be disbursed in...Read more »
The Australian Industry Group urges the government to significantly step up its investments in renewable energy and energy efficiency for a clean recovery. In its pre-budget submission, the Australian peak employer body suggests public spending of AUD 3.3 billion over 10 years on renewable energy and AUD 500 million over two years to enhance energy...Read more »
On August 26, 2020, The Guardian reported the creation of a new joint venture that seeks to invest billions in natural capital around the world. HSBC Global Asset Management and Pollination, a climate advisory and investment firm, are forming the world’s largest investment firm dedicated to environmentally friendly projects beyond renewable energy. The plan is...Read more »
Singapore President Halimah Yacob revealed plans for the country’s green recovery during the opening of the nation’s 14th Parliament on August 24, 2020. She announced major efforts to foster sustainable growth while improving social safety nets and education. The government plans to “push for green financing and sustainable infrastructure development across the region, to ride...Read more »
According to an article published by Jakarta Post on August 21, 2020, the Asian Development Bank (ADB) has pledged to double its loan commitments to Indonesia in order to support the country’s economic recovery. In previous years, Indonesia received between USD 1 billion and USD 2 billion annually, mainly for energy-related infrastructure projects. ADB Country...Read more »
In August 2020, the Biofuture Platform launched a set of voluntary principles designed to help economies create jobs in the bioenergy sector. The Biofuture Platform is a government-led, multi-stakeholder initiative supporting international coordination for a low-carbon bioeconomy. The bioenergy sector, currently employing around 3 million people worldwide, was severely hit by the COVID-19 pandemic. At...Read more »
On August 13, 2020, Climate Home News reported on an international study about green recovery opportunities in Brazil. The study by the New Climate Economy and World Resources Institute, in partnership with former finance ministers and World Bank executives, finds that the government could rebuild the economy faster after the pandemic by making low-carbon growth...Read more »
In August 2020, more than 100 economists called for an end to the carbon economy in a letter published by The Guardian. They argue that, while the current crisis drastically reveals the weaknesses of the current economic system, it also offers a window of opportunity to build back better and foster stability. The letter includes...Read more »
ING published a report on August 11, 2020, about national recovery and stimulus spending in the Asia-Pacific region. The analysis highlights that most countries in the region, with the exception of New Zealand and Singapore, have hardly included any green stimulus measures in their economic recovery packages. Notably, the report presents data that demonstrate that...Read more »
On August 6, 2020, the World Bank approved USD 250 million in International Development Association (IDA) credit and grants for Niger. The funds are supposed to help the West African country to develop its human capital and to address challenges caused by the COVID-19 pandemic. The new funding is part of a program series targeted...Read more »
On August 5, 2020, the European Investment Bank (EIB) announced it was directing EUR 300 million toward the COVID-19 response and recovery in African nations. The funding is part of the EIB Team Europe Initiative, designed to help the most vulnerable and exposed countries respond to the immediate health crisis, mitigate social and economic impacts,...Read more »
The Green for Growth Fund, an impact investment fund targeted at mitigating climate change and promoting sustainable economic growth in various countries, has announced on 05. August to provide a top-up loan to Banque du Caire in Egypt. The additional USD 15 million will support financing energy efficiency and resource efficiency measures of small and...Read more »
The state government of Western Australia released a comprehensive recovery plan at the end of July 2020. The plan puts forward 21 priorities and includes investments of AUD 5.5 billion aimed at creating local jobs in various sectors such as construction, renewable energy, education, and agriculture. Some of the investment priorities will fund sustainable recovery...Read more »
On July 29, 2020, the Inter-American Development Bank (IADB) and the International Labour Organization (ILO) published the results of a study that highlights the enormous job creation potential associated with a transition to a net-zero carbon economy in Latin America and the Caribbean. Even though such a transition would terminate around 7.5 million jobs in...Read more »
On July 6, 2020, the United Nations Principles for Responsible Investment (UN PRI) released a framework to guide investors in engaging with policy-makers on a sustainable recovery. UN PRI writes that, as policy-makers are rolling out recovery strategies, investors should engage with them to provide technical expertise and to ensure that capital is steered toward...Read more »
On July 22, the Asian Development Bank (ADB) announced a partnership with the Green Climate Fund (GCF) to assist members hard hit by COVID-19. ADB President Masatsugu Asakawa and GCF Executive Director Yannick Glemarec met to identify opportunities to help ADB members confronting the pandemic crisis achieve low-carbon and climate-resilient recoveries. They agreed to build...Read more »
On July 15, the C40 Global Mayors COVID-19 Recovery Task Force published a new report, C40 Mayors Agenda for a Green and Just Recovery. C40 is a network of 96 cities across the globe committed to addressing climate change, and the Task Force was launched in April 2020 to rebuild post-pandemic cities and economies by...Read more »
The South Korean Government announced a Green New Deal on July 14, 2020, worth approximately KRW 114 trillion (USD 94.5 billion), which is meant to be invested over the course of the next years to help the country’s economy to recover from the COVID-19-related recession. The foreseen government spending is targeted at creating 1.9 million...Read more »
The Green Bond Bulletin of NN Investment Partners provides excellent insight into the Green and Social Bond markets. In their article from June 30, 2020, NN Investment Partners report on recent developments in the Social Bond and sovereign Green Bond markets in light of the COVID-19 pandemic. They highlight the surge of Social Bond issuances...Read more »
Bloomberg’s Supply Lines provides thought provoking perspectives Jim Thompson, founder and chairman of Crown Worldwide Group. Thomson draws from experience since 1965 in the logistics industry. He suggests that COVID 19’s supply chain disruptions will signify and bumpy ride rather and a dramatic fall in global trade. Thomson also remains skeptical that digital technologies and...Read more »
Evidence is emerging regarding the consequences of economic and income inequality. The UN High Commission for Human Rights reports on the disproportionately severe impact of COVID-19 on racial and ethic minorities. Likely causes for the higher death rates across minorities in all countries include poor health care, overcrowded housing, exposure to environmental risks, and broader...Read more »
Environmental Finance reports on 08 June 2020 that Ninety One, an asset manager, recently launched a COVID-19 recovery impact fund in South Africa. This is another example where private sources of financing are used for recovery measures. The fund will have a portfolio of senior debt, subordinated debt, preferred equity, listed equity and private equity....Read more »
Sustainable investing will play an important role in financing COVID-19 recovery measures alongside other pressing social and environmental objectives. Therefore, it is great to see that sustainable investing passed its first real test of how much investors really care about sustainability. The FT reports that the COVID-19 pandemic has not seemed to impact investor’s commitment...Read more »
COVID bonds will play an important role in financing COVID-19 stimulus measures. All issues to date have been either general purpose bonds or use of proceeds bonds. However, a third type, performance-based bonds, has a lot of potential to address the needs of issuers. In case of COVID related sustainability linked bonds, the coupon would...Read more »
In a sustainable recovery, social protection measures must reflect the current role of women in the care economy. UN Women also pleads for ensuring women have a seat at the table in the design of economic recovery packages, as there is plenty of evidence that more inclusive responses to crises are also better and more...Read more »
In May 2020, the International Monetary Fund and the World Bank Secretariat published a new report that analyzes the inequalities that arose from the COVID-19 pandemic and demonstrates how already disadvantaged groups have been disproportionately affected. The report illustrates why it is so important for a sustainable recovery to ensure access to opportunities on the...Read more »
On June 8, 2020, the World Trade Organization Secretariat published a report on trade-related developments in relation to the COVID-19 pandemic in least-developed countries (LDCs). The economies of LDCs have been hit extra hard during this pandemic, as many rely on export-sensitive sectors that came to a near standstill (tourism, textiles, etc.), as well as...Read more »
On June 5, 2020, the Organisation for Economic Co-operation and Development published a brief on how economic recovery measures can be designed to build back better. Governments must put well-being and inclusiveness at the centre of their approach to a resilient recovery, while at the same time staying on track to achieve the goals of...Read more »
While many calls to action for green or sustainable recovery have been made, The Guardian reported on June 6, 2020, that at least USD 500 billion will be benefiting fossil fuel industries, without green strings attached.
On May 28, 2020, the Organisation for Economic Co-operation and Development launched a new working paper that provides insights into lessons learned on green stimulus from the 2008–2009 global financial crisis (GFC). It emphasizes that “proper policy design is critical to prevent rebound effects, limit market distortion and ensuring additionality of public funding by improved...Read more »
