As states consider how the global economy will restart following the pandemic, it is important to note that we were here earlier. But it did force governments around the world into intervening on the grounds of economic impact and the consequences. The 2008 global financial crisis has not caused as much social and economic damage as COVID-19 claims.
Although such measures are important, states must consider the consequences of a post-pandemic economy. When handled correctly, a program that is inherently fairer and sustainable could be a unique opportunity once in a lifetime.
This will mean that climate initiatives would be baked into opportunities and rescue packages. Numerous proposals arose in the aftermath of the 2008 recession but were only around 16 percent of overall spending on renewable energy and infrastructure.
Given the growing urgency of the climate crisis, a post-pandemic recovery program, ensuring a projected withdrawal from fossil fuels to create safe and socially useful jobs, while making global economies and supply chains more resilient to unforeseen potential shocks, would have to be much more aggressive.
A post-COVID green new deal
Prior to COVID-19, the “climate new deal” – an investment plan that would quickly reduce pollution and economic disparity through the construction of green infrastructure and jobs – was developed across the globe.
In the midst of recent uncertainty, investors try secure assets. Governments could fund a green economy revision by encouraging them to invest in “climate” bonds in low-carbon infrastructure.
This investment will help change the electricity system to incorporate the production of renewable energy and create electricity charging points and cycle networks and low-carbon housing.
While Britain is approaching its record for days without the production of coal energy, it is time for national power grids to be restructured from a central energy model with fossil fuelling power plants radiating outside, into a model in which the production of energy is distributed amongst a variety of solar and wind sources like photovoltaic rooftop panels and wind farms in the community.