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.
The Energy and Resources Institute (TERI) released a discussion paper on ‘A Fiscally Responsible Green Stimulus‘ to revive Indian economy by creating demand and jobs
The coronavirus crisis is a window of opportunity to transform the economy and especially, to make it “green.” Previous economic crises such as the financial crisis