How green are Asia’s post-Covid economic recovery plans?
(Eco Business, 29 Jun 2020) Stimulus packages to kickstart pandemic-hit economies can either shape a low-carbon future or lock the world into a fossil fuel system. Which countries in Asia are leading the green transition?
More than a global health emergency, Covid-19 has also brought about an economic crisis that will leave long-lasting scars for years to come. The full extent of the economic impacts of the pandemic are still playing out, but forecasts provide an increasingly downbeat outlook for the economy.
In May, the International Monetary Fund projected the global economy would shrink by 3 per cent this year. But the latest prediction from the World Bank is a 5.2 per cent contraction. Worse still, the Organisation for Economic Co-operation and Development (OECD) is expecting a 7.5 per cent downturn.
In the region, Asia’s economic growth is projected to come to a standstill in 2020, the worst performance in almost 60 years.
Across the globe, governments have rolled out US$9 trillion in economic recovery measures to rebuild their economies. While most packages have focused on addressing the hand-to-mouth immediate issues, the unprecedented amount of stimulus that is being pumped into the economy is a pivotal moment for climate action.