A net-zero emissions economic recovery from COVID-19
Allan, J., Donovan, C., Ekins, P., Gambhir, A., Hepburn, C., Robins, N., Reay, D., Shuckburgh E., and Zenghelis, D. (2020). A net-zero emissions economic recovery from COVID-19. Smith School Working Paper 20-01.
Keywords: carbon emissions / Climate Change / economic recovery / economy / emissions / net-zero
- Economic growth will be a high priority for all countries in the months and years following COVID-19. The transition to net zero emissions can significantly contribute to the recovery.
- There are lessons from recovery packages following the 2008 financial crisis, but the COVID-19 crisis has had a different structural impact on demand and supply (Section 2).
- In the lead up to COP26, the UK could provide guidance and methodologies to evaluate proposed recovery packages for consistency with Paris and net zero emissions (Section 3).
- The UK could lead by example with a recovery package including components on net zero buildings, energy storage, clean industry, transport and greenhouse gas removal (Section 4).
- Institutionally, this could be supported by establishing a Climate Change Emergency Committee and a Net Zero Delivery Body to implement a coherent response (Section 5).
- Financially, a new National Investment Bank and focus on green financial instruments could significantly scale-up private investment (Section 6).
- The UK could help other countries develop net zero recovery packages by instigating a new flexible intergovernmental Sustainable Recovery Alliance (Section 7).