Covid-19 has delivered one of the biggest shocks in modern history and has impacted the way we live our lives, from how we shop, to how we work, including how we get there.
One silver lining to the economic slowdown has been the fast and unprecedented reduction of CO2 emissions. As we start to emerge from Covid-19 and reboot our economies, pressure to prioritize rapid regrowth will be high. Can we achieve a green recovery?
Cleaner air quality, healthier water, effective waste management, and enhanced biodiversity protection not only reduce the vulnerability of communities to pandemics and improve resilience, but have the potential to boost economic activity, generate income, create jobs, and reduce inequalities.
Green recovery is a win-win strategy and governments have a once-in-a-lifetime opportunity to ensure a sustainable recovery if they:
Leveraging investment for infrastructure is a critical pillar of the low-carbon transition. Around GBP 4.8 trillion of annual investment is needed until 2030 in energy, transport, water and telecommunications infrastructure, to sustain growth and increase well-being.
The COVID-19 pandemic highlights the urgent need to consider resilience in finance – not just in the financial system itself, but the role of capital and investors in making economic and social systems more dynamic and able to withstand external shocks. These include risks associated with climate change which, beyond the pandemic, are perhaps the most pressing challenges to financial stability and resilience.
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