Did COVID-19 accelerate the green transition?
An international assessment of fiscal spending measures to support low-carbon technologies
Fiscal spending policies adopted in the wake of the COVID-19 pandemic have been presented
as a unique opportunity to “build back better” and re-ignite the economy while accelerating
the transition to a low-carbon economy. This paper analyses 1 166 funding measures
announced by 51 countries and the European Union in 2020-21 to support development
and diffusion of low-carbon technologies. These measures – amounting to USD 1.29 trillion
– can make an important contribution to filling the climate investment gap, particularly
in emerging technologies such as carbon capture, usage and storage and green hydrogen.
A modelling analysis suggests that they could have large impacts on greenhouse gas
emissions and bring about significant co-benefits in terms of clean sectors’ output
growth and reductions in fossil fuel imports.
Published on June 27, 2023
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