As the COVID-19 pandemic continues, governments around the world are injecting trillions of dollars of public money into their economies in an effort to counteract the socio-economic effects of the crisis. While spending has ballooned, government revenues have contracted due to reduced economic activity and tax cuts, resulting in previously unimaginable levels of debt and deficit. Governments now face the critical challenge of solving the most pressing health issue of our times, as they fight to keep their economies running and minimize the impact on people and business. This will necessitate raising and spending scarce public resources more carefully than ever.
Despite the many challenges, however, it is possible to address critical health and economic priorities in a way that allows us to “build back better.” As hundreds of billions of public dollars flow into the energy sector, governments have a particular opportunity to support the clean energy transition. In order to mitigate and adapt to the climate crisis, governments must ensure that recovery funds support this necessary paradigm shift. This includes increasing support for renewable energy and energy access in ways that create new jobs and leave no one behind. However, so far, of quantified funds committed to energy-intensive sectors, G20 governments have allocated more than half to fossil fuels while pledging just over one third to renewables.
The Fossil-Free Recovery project looks at:
- How governments can raise money from fossil fuel subsidy reform and taxation
- Practical solutions to spend it efficiently to create a more resilient and sustainable society.
Fossil-Free Recovery Video
2020 was a difficult year to say the least, but not everything that happened was bad. Let's remember some of the positives that we can look to for inspiration in 2021.
Green Recovery Know-How From the Nordics
Nordic countries are known for combining healthy economic growth with solid social and environmental policies. What's their secret to green recovery?
How to raise an easy $1 billion per day for the Covid-19 recovery
A temporary tax hike on gasoline and diesel is one of the fairest, greenest ways to fund post-pandemic economic stimulus packages.
Lead, Sustainable Energy Consumption
Senior Policy Advisor
Associate, Energy Program
Director, Sustainable Energy
Senior Policy Advisor and Lead, Indonesia
Associate and Energy Specialist
Senior Director, Energy
Junior Policy Analyst, Energy
Policy Analyst, Energy Program
Communications Assistant, Energy
Senior Communications Officer
Nordic Environmental Fiscal Reform
Nordic countries have successfully used environmental fiscal reform (subsidies, taxation and spending) as an economic recovery tool to boost revenues, economic growth and employment while reducing greenhouse gas emissions and air pollution.
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