In the wake of COVID-19, some economic recovery policies will help green the economy – for example, energy renovation of buildings. But there are limits to the share of stimulus that can be explicitly green. The European Union should therefore also green the fiscal consolidation by setting out the path to much higher carbon prices than today. This would guide investment and provide revenues to help the fiscal consolidation.
In Nigeria, Africa’s largest economy, expanding access to electricity has contributed to increasing labour market participation and transforming the economy away from agricultural activities.
The European Parliament and the Council still have an opportunity to improve the Just Transition Fund by refocusing it on social support and basing fund allocations on more granular information that takes into account not only countries’ needs but also their green ambitions.
On 14 January 2020, the European Commission published its proposal for a Just Transition Mechanism, intended to provide support to territories facing serious socioeconomic challenges related to the transition towards climate neutrality. This report provides a comprehensive analysis of how the EU can best ensure a ‘just transition’ in all its territories and for all its citizens with the tools at its disposal. It provides an overview and a critical assessment of the Commission's proposal, and suggests possible amendments based on best practices from other just-transition initiatives.
Four guiding principles can help ensure a well designed EU equity fund.
COVID-19 has triggered a severe recession and policymakers in European Union countries are providing generous, largely indiscriminate, support to companies. As the recession gets deeper, a more comprehensive strategy is needed. This should be based on four principles: viability of supported entities, fairness, achieving societal goals, and giving society a share in future profits. The effort should be structured around equity and recovery funds with borrowing at EU level.
This oil crisis will be solved only by a pick-up in global oil demand, once lockdowns are lifted and the economy is restarted.
Policymakers need to think long-term and start planning a broad investment scheme to reboot the European economy.
The paper evaluates the effects on energy consumption of digitalization in transport. Digitalization needs a tailored policy support to avoid higher energy consumption.
'Whatever it takes' needs to be the motto to preserve lives and reduce the impact on the economy of the epidemic.