{"id":36939,"date":"2020-04-02T11:00:00","date_gmt":"2020-04-02T11:00:00","guid":{"rendered":""},"modified":"2020-06-20T17:28:16","modified_gmt":"2020-06-20T17:28:16","slug":"11939-why-are-experts-calling-for-a-green-stimulus","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/","title":{"rendered":"Why are experts calling for a green stimulus?"},"content":{"rendered":"

The extraordinary spending figures announced by governments in recent weeks are one signal of the scale and breadth of Covid-19\u2019s impact: a $2.2 trillion US rescue package; multibillion-dollar welfare interventions in the UK, France and elsewhere; and\u00a0<\/span>a \u201cneo-infrastructure push\u201d\u00a0on the horizon for China.<\/p>\n

But as states scramble to deal with the public health emergency and its immediate economic fallout, a growing number of experts and campaigners are turning attention to what happens after the pandemic. And they are making the case for economic recovery policies that also confront climate change and social injustice.<\/p>\n

\u201cWe have converging crises \u2013 the Covid crisis, record levels of inequality and the climate crisis,\u201d said Mijin Cha, senior fellow at US think-tank Data for Progress and co-author of an open letter<\/a> to US Congress calling for a menu of green stimulus measures to be made \u201cshovel ready\u201d for when the disease is brought under control.<\/p>\n

The authors propose an American recovery package of at least $2 trillion to create green jobs, transition away from fossil fuels and raise living standards, to be renewed annually at 4% of GDP until the economy is fully decarbonised and the unemployment rate below 3.5%. Suggested policies include everything from electrification of ports to grants for farmers transitioning to regenerative agricultural practices.<\/span><\/p>\n

\u201cI hate to say \u2018use this moment\u2019 because the moment is so dire,\u201d said Cha. \u201cBut we know there will be a stimulus, so it\u2019s up to us to make sure it\u2019s one that invests in a low-carbon and more just future.\u201d<\/p>\n

Cha is not alone. Over 1,000 academics, campaigners and citizens have signed the letter. And prominent figures around the world have made similar pleas. International Energy Agency chief Fatih Birol, for example, has urged policymakers<\/a> to \u201cput clean energy at the heart of stimulus plans\u201d.<\/p>\n

Their calls come at a pivotal moment for the planet. The year 2020 was meant to be a turning point for climate and biodiversity, with a <\/span>packed line-up of negotiations<\/a> intended to ramp up action to stave off dangerous warming and species extinctions<\/a>. The push for green deal policies promoting environmental and social justice had also been gaining momentum, with US presidential contenders debating them and the EU announcing in December a $1 trillion plan for a \u201cjust and inclusive\u201d economic transition.<\/p>\n

The question now is whether policymakers can be persuaded not to turn their backs on these processes, but to accelerate the move to cleaner, greener economies.<\/span><\/p>\n

Planning for a stimulus<\/h2>\n

Michael Jacobs is professor of political economy at the University of Sheffield, and was once a special adviser to then UK prime minister Gordon Brown. He argues that, when the time is right, a sweeping range of stimulus and policy measures \u2013 from investing in smart grids, home insulation and conservation schemes to adjusting taxation regimes to boost renewables \u2013 could help drive a \u201cgreen, equitable and resilient recovery\u201d.<\/p>\n

Stimulus planning is complicated by the fact we don\u2019t know quite what society will look like coming out of the pandemic, said Jacobs. For example, will a level of social distancing\u00a0be required for some time, keeping certain economic activities off limits? But one advantage is that there are already many well-developed ideas and proposals around for helping the transition to low-carbon societies: \u201cIt\u2019s not as if nobody has thought about this before,\u201d he said.<\/p>\n

Some things are easier to forecast than others \u2013 corporate bailouts will likely be the first thing needed, said Jacobs, and should come with conditions. Aviation companies, for example, could be given funds on the basis that they start paying fuel tax, or become broader transport companies and invest in railways.\u00a0The public sector could also take equity in companies and direct change from within.<\/p>\n

Perhaps most important of all, said Jacobs, is that governments avoid doing things that may seem easy but would be devastating for the planet, like massive investment in road building or oil extraction, which would lock in years of avoidable emissions. \u201cThe core of the message is we cannot afford to exacerbate our climate problem as we come out of this. So let\u2019s not do the things we shouldn\u2019t,\u201d he said.<\/p>\n

Proponents of green recovery measures also argue that they can provide crucial employment in a time of historic joblessness. Helen Mountford, vice president for climate and economics at the World Resources Institute, said a US tree planting programme, for example, could put 150,000 Americans to work while sequestering 540 million tons of CO2 per year by 2040.<\/p>\n

We believe an economic revival package should focus on people. The most vulnerable communities hit by this crisis deserve help<\/p><\/blockquote>\n

When it comes to infrastructure investment, greener choices \u2013 like public transport and EV charging infrastructure \u2013 can be more effective at generating jobs than their dirtier counterparts, said Mountford. She pointed to research<\/a> showing that, after the 2008 financial crisis, one billion dollars spent on public transit projects in the US created almost double the number of job hours as the same money spent on highways.<\/p>\n

There are signs such arguments are finding traction. A <\/span>joint statement<\/a> from the European Council last week called for \u201cthe green transition and the digital transformation\u201d to be integrated into recovery measures. And in South Korea, the ruling Democratic Party launched a climate manifesto<\/a> on 16 March stating an ambition for a zero-carbon society by 2050 and promising an end to coal project financing and a carbon tax.<\/p>\n

\u201c<\/span>This is so meaningful because Korea is heavily dependent on the fossil fuel industry like its neighbouring countries,\u201d said Justin Jeong, a Greenpeace campaigner in Seoul, calling it a \u201cgreat message to all Asian countries\u201d.<\/p>\n

Chang Hoon Lee, vice president of the Korea Environment Institute, called for more detailed proposals for achieving these goals, but said the announcement came at the right moment: \u201cKorea is now preparing a vast economic stimulus package, and the investment in greening of industry and in green industries is not only environmentally but also economically rational.\u201d<\/span><\/p>\n

China plans more infrastructure spending<\/h2>\n

China, where Covid-19 has been brought under control at least for now,\u00a0is one of the countries furthest along the road in stimulus planning<\/a>. But while support for \u201cnew infrastructure projects\u201d could see huge sums directed into areas like electric vehicle charging, the inclusion of coal projects on a list of provincial spending plans has prompted head-scratching. \u201cChina has managed to build more coal plants than it needs. Adding more of them will not burn coal, but money,\u201d said Li Shuo, senior global policy advisor at Greenpeace East Asia.<\/p>\n

Li notes that China had new coal projects in the pipeline even before the pandemic. He thinks the bigger problem with the mooted stimulus is the emphasis on infrastructure spending to make up for the decline of consumption, an approach he argues \u201cwill inevitably increase emissions, however you design it\u201d. Instead, he calls for money to be spent on strengthening the social safety net, public healthcare and the service sector.<\/span><\/p>\n

\u201cWe believe an economic revival package should focus on people and sustainable consumption. The most vulnerable communities hit by this crisis deserve help,\u201d Li said.<\/p>\n

These arguments resonate across the Pacific, where a growing number of US academics and activists are joining the call for a People\u2019s Bailout<\/a>, with a focus on using public funds to improve ordinary lives rather than simply prop up companies. Thea Riofrancos, assistant professor of political science at Providence College and another co-author of the open letter to Congress, is already worried the US emergency measures have set the wrong tone, describing last week\u2019s bill as a \u201c$4.5 trillion corporate bailout with very few strings attached\u201d.<\/p>\n

But she said there was still a long fight ahead \u201cfor the economy we want\u201d, and that she was encouraged by engagement with their ideas from officials both in Congress and state legislatures. At least four stimulus packages are expected in the US in the coming months, but Riofrancos said the response would inevitably go beyond these.<\/span><\/p>\n

\u201cThis is going to be a crisis rivalling the Great Depression and more global in scope,\u201d she said. \u201cSo I think there will be untold numbers of stimulus measures in the future.\u201d<\/p>\n

\u201cThis is the moment to make bold demands.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Fixing the economic crisis requires stimulus plans that address climate change and social injustice too, reports Olivia Boyd<\/p>\n","protected":false},"author":603,"featured_media":60799,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[20000838,20000325,585],"hashtags":[],"country":[20000110],"class_list":["post-36939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-covid-19","tag-industry","tag-renewables","country-china"],"acf":[],"yoast_head":"\nWhy are experts calling for a green stimulus? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Fixing the economic crisis requires stimulus plans that address climate change and social injustice too, reports Olivia Boyd\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why are experts calling for a green stimulus?\" \/>\n<meta property=\"og:description\" content=\"Fixing the economic crisis requires stimulus plans that address climate change and social injustice too, reports Olivia Boyd\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\" \/>\n<meta property=\"og:site_name\" content=\"Dialogue Earth\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-02T11:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-20T17:28:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dialogue.earth\/content\/uploads\/2020\/05\/2AETD43.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1285\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Olivia Boyd\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\"},\"author\":{\"name\":\"Olivia Boyd\",\"@id\":\"https:\/\/dialogue.earth\/en\/#\/schema\/person\/73d5514bc82e9db156b8eca6bfbbfe9f\"},\"headline\":\"Why are experts calling for a green stimulus?\",\"datePublished\":\"2020-04-02T11:00:00+00:00\",\"dateModified\":\"2020-06-20T17:28:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\"},\"wordCount\":1365,\"publisher\":{\"@id\":\"https:\/\/dialogue.earth\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dialogue.earth\/content\/uploads\/2020\/05\/2AETD43.jpg\",\"keywords\":[\"Covid-19\",\"Industry\",\"Renewables\"],\"articleSection\":[\"Business\"],\"inLanguage\":\"en\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\",\"url\":\"https:\/\/dialogue.earth\/en\/business\/11939-why-are-experts-calling-for-a-green-stimulus\/\",\"name\":\"Why are experts calling for a green stimulus? 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