Few major economies investing in nature-friendly COVID-19 recovery, index finds

(Reuters, 17 Dec 2020) Only 7 of 25 major economies have stimulus packages that have a net-positive benefit for the climate and nature, researchers say.

overnments have made little progress on greening COVID-19 stimulus packages, with spending in only seven of 25 major economies estimated to have a net positive impact for the climate and nature, researchers said on Thursday.

An index, updated every few weeks by think-tanks Vivid Economics and Finance for Biodiversity, found far more recovery money has been earmarked for industries and activities that harm nature, compared with measures like planting trees or restoring wetlands.

Overall, governments are funnelling an estimated $13 trillion into the world's economies, to foster jobs and growth.

Nearly a third of that is going to sectors that affect carbon emissions and biodiversity - energy, industry, waste management, transport and farming - but the researchers identified only $567 billion as green spending.

"Our analysis of COVID-19 stimulus commitments to date suggests that investments are further entrenching unsustainable economic pathways, resulting in a high risk of stranded assets, accelerated climate change and continued depletion of natural capital," said co-author Jeffrey Beyer of Vivid Economics.

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Reuters, 17 Dec 2020: Few major economies investing in nature-friendly COVID-19 recovery, index finds