COVID-19 has delivered the most significant economic shock since the Great Depression, so governments are stepping forward with stimulus packages designed to reboot their economies.
The good news is it has rarely been cheaper for governments to make these investments.
Around the world, interest rates are hovering around zero, or even negative. This creates an unprecedented opportunity to “build back better.”
The European Union and Joe Biden’s new administration in the US have promised trillions of dollars of green investments to get their economies going and kick-start the process of decarbonization.
Both hope other countries will join them – helping drive down the cost of renewables globally. But they are also warning that they plan to tax imports of countries that emit too much carbon.
The bad news is that, according to the UN, developed nations are spending 50% more on sectors linked to fossil fuels than on low-carbon energy.