COVID-19 has plunged the global economy into crisis. Green fiscal policies (GFP) can play a key role in shaping the recovery. As governments are devising green fiscal stimulus policies, they must look to maximize short-term growth and employment effects, but they have also a lever in hand to steer economies to a green and fair transition. The collapse of the oil price has created a window of opportunity for carbon taxes and fossil fuel subsidy reform to mobilise revenue and drive low-carbon development. Green budgeting can rationalise inefficient expenditures and align spending with sustainability. In developing countries with limited fiscal space, GFP can be part of a sustainable solution.
A report by Finnish company Wärtsilä has estimated the potential impact if every dollar committed to a non-renewables energy sector recovery was instead funneled to
Role of fiscal policies in a green COVID-19 recovery: Experience, Best Practice And Next Steps In the LAC region
S A V E. T H E. D A T E. With UN ECLAC, we are organising a virtual event on the – Role of
U.N. Secretary-General Antonio Guterres called Thursday on governments not to “throw away” economic stimulus funds by supporting fossil fuel industries that contribute to global warming.