as the Beings Came After Him Again

Abstract

For the economic recovery from the COVID-nineteen crisis to be durable and resilient, a return to 'business as usual' and environmentally subversive investment patterns and activities must be avoided. Unchecked, global ecology emergencies such equally climate change and biodiversity loss could crusade social and economic damages far larger than those acquired past COVID-19. To avert this, economical recovery packages should exist designed to "build back better". This ways doing more than getting economies and livelihoods quickly back on their feet. Recovery policies likewise need to trigger investment and behavioural changes that will reduce the likelihood of future shocks and increment society'due south resilience to them when they do occur. Central to this approach is a focus on well-being and inclusiveness. Other key dimensions for assessing whether recovery packages tin "build back better" include alignment with long-term emission reduction goals, factoring in resilience to climate impacts, slowing biodiversity loss and increasing circularity of supply chains. In exercise, well-designed recovery policies can cover several of these dimensions at once, such as catalysing the shift towards accessibility-based mobility systems, and investing in low-carbon and decentralised electricity systems.

1. Governments' first priorities in tackling the COVID-19 pandemic have been to overcome the health emergency and to implement rapid economic rescue measures, the latter mostly aimed at providing essential liquidity and protecting livelihoods in the face of abrupt losses of income. As the health crisis gradually abates in some countries, attention is at present turning to preparing stimulus measures for triggering economic recovery. This policy brief examines how these stimulus packages tin create a recovery that "builds back better", i.e. non only getting economies and livelihoods back on their feet chop-chop, only besides safeguarding prosperity for the longer term. This means triggering investments and societal changes that volition both reduce the likelihood of future shocks and improve our resilience to those shocks when they do occur, whether from disease or environmental deposition. At the heart of this approach is the transition to more inclusive, more resilient societies with net-zippo GHG emissions and much reduced impacts on nature. Other OECD policy briefs examine the role of environmental wellness in strengthening resilience to pandemics (OECD, 2020[1]) and COVID-19 and the low-carbon transition (OECD, forthcoming).

A more resilient economic system depends on a shift to sustainable practices

two. In improver to the immediate human suffering caused past the disease itself and the loss of livelihoods for millions, the COVID-nineteen pandemic has also highlighted several fundamental vulnerabilities of our societies and economical organisation. Global interconnectedness has helped to create huge economic and social benefits for decades, albeit unequally, but also facilitated the rapid spread of the pandemic. More broadly, the speed and depth of the economic crunch have shown that a cadre principle of the global economy – prioritising short-term economic growth and efficiency over long-term resilience – tin accept huge societal costs. The precariousness of long and complex global value chains has been revealed, with many countries struggling to acquire medical and other strategic supplies. Social inequalities have been exposed and rapidly exacerbated past the massive only uneven loss of employment, with the equivalent of more than 300 million jobs potentially at risk (ILO, 2020[ii]). Although this is not the first economic crisis to betrayal these frailties, the depth and breadth of the current circumstances have brought the upshot of resilience and preparedness loftier in the public consciousness.

three. The exposed vulnerabilities are particularly sobering when seen in the calorie-free of an even bigger future threat to the global economy: environmental degradation driven by our current economic arrangement. The world's environmental emergencies are equally pressing as ever, fifty-fifty if they may seem afar during such a very man crisis. The impacts of climate alter, air pollution, biodiversity loss and poor ocean health already cause immense suffering globally and harbour further systemic vulnerabilities for the global economy that could ultimately eclipse the current crisis. Physical and economic impacts from climate change are already being felt, and some regions have experienced farthermost weather events at the aforementioned time as tackling COVID-nineteen, such as super-cyclone Amphan in Bangladesh and Draft Vongfong in the Philippines (United nations, 2020[3]). Without structural changes to our economies, continued accumulation of greenhouse gases (GHGs) in the temper will lead to potentially catastrophic farther impacts. While the economic shut-downwardly has led to some widely-reported environmental improvements, such as reduced emissions of GHGs and air pollutants and less water pollution, these in themselves will have nigh no long-term bear on (Le Quéré et al., 2020[four]). If economical activity resumes as before, they are likely to be temporary and apace erased. Indeed, GHG emissions rebounded and resumed growth in the backwash of the recent economic crises (OECD, 2020 forthcoming).

four. These interlinked environmental crises may also heighten the likelihood and likely impact of future infectious diseases. The economic pressures driving biodiversity loss and the destruction of ocean health can accept cascading impacts on societies, and may increase the risk of future zoonotic viruses (those which jump from animals to humans) due to the expansion of human activities leading to deforestation, combined with the increased demand for and trafficking of wild fauna (Jones et al., 2013[v]). Declines in local environmental quality, including air and water pollution, can influence the vulnerability of societies both to disease and to the effects of a less stable climate, with impacts likely to affect poorer communities more (OECD, 2020[1]).

5. Returning to "business as usual" will not deliver a sustained long-term economic recovery that likewise improves well-beingness and reduces inequality. With massive stimulus packages starting to be unveiled around the globe, governments, businesses and societies as a whole accept both a responsibility and self-interest to not only look for near-term measures to shore-up livelihoods and employment, simply also to take a pace back and reflect on the political and economical driving forces leading to the electric current crisis.

half dozen. Despite encouraging signs from governments, businesses and citizens, recovery plans have then far more often than not fallen short. Many governments have recognised the demand and opportunity of a sustainable recovery. For example, in April 2020, the G20 Finance Ministers agreed to "commit to support an environmentally sustainable and inclusive recovery" (G20, 2020[half dozen]). Encouragingly, an international poll covering adult and developing countries also suggests that a bulk of citizens come across a focus on ecology problems every bit a continued priority as we emerge from the COVID-19 crunch (IPSOS MORI, 2020[vii]). The fragilities exposed by the pandemic may human activity to underline the reasons that environmental problems were becoming top political priorities effectually the world before COVID-19 struck. In 2019, millions of people, spearheaded past youth, protested in the streets for climate action, leading to several governments officially declaring a "climate emergency". Biodiversity loss and the ongoing mass species extinction were also gaining headlines around the world, and the visible crisis engulfing the earth'south oceans had become a forepart-line political result in several countries. As recently as Jan 2020, climate change and biodiversity loss topped the Globe Economic Forum's list of global risks (World Economical Forum, 2020[8]). The social and economic case for a sustainable, resilient recovery is very clear. Despite this, economical recovery measures proposed so far have mostly scored poorly on environmental metrics, with unsustainable support outstripping sustainable measures in many countries (Vivid Economics, 2020[9]). While there is significant support for "green" technologies and industries, in particular in European countries, in many cases this is outweighed by ongoing support for "brown" activities that may lock-in emissions intensive pathways.

"Building Back Improve": key dimensions for a resilient economic recovery

7. The term "Building Back Ameliorate" has been increasingly and widely used in the context of the economic recovery from COVID-19 (WRI, 2020[10]) (We Hateful Business organization Coalition, 2020[11]). The notion originated in the context of recovery and reconstruction from concrete disasters1, with an emphasis on making preventative investments that improve resilience to, and so reduce the costs of, hereafter disasters. The claiming of re-igniting the global economy in the aftermath of the economic crisis triggered past COVID-nineteen is of course different. There has been no concrete disaster, and the focus is global. Yet the economical crunch is so astringent, the risks from returning to previous patterns and so high, and the opportunity to embrace a more sustainable recovery so clear, that the term is relevant in this context. Even at the global level, there is still an emphasis on prevention, as the investments and behavioural changes made will pay dividends in the future through reduced exposure and increased resilience to plush future disruptions – whether due to climate change, affliction, or a confluence of these or other factors.

eight. To "build back meliorate", recovery measures tin can be assessed across a number of key dimensions (Figure ane). Common to all these dimensions is the need for urgent decisions taken today to incorporate a longer-term perspective. For instance, assessing measures against these dimensions tin can betrayal where competing potential targets for stimulus spending may offer like near-term benefits in terms of chore creation, but very different long-term outcomes for sustainability and resilience (for example, whether or not the stimulus leads to investment in long-lived loftier-emitting infrastructure that may lock-in GHG emissions far into the future).

Figure 1. Key dimensions for Building Back Better

9. A fundamental dimension of edifice back amend is the demand for a people-centred recovery that focuses on well-being, improves inclusiveness and reduces inequality. To improve public back up, recovery policies need to be measured on more than than just economical growth and total job cosmos. Emphasising other elements that improve well-beingness, such as income, job quality, housing and health is important to achieve this (OECD, 2020[12]). More specifically, where stimulus packages target environmental objectives, a focus on people'southward well-being is also crucial to cement the social and political acceptance of environmental measures (OECD, 2019[thirteen]). Even before the crisis, the impact of environmental policies on inequalities among and within countries, and betwixt genders, was a mounting key concern in several regions, and this is fifty-fifty more disquisitional in the current context. Means for ensuring that ecology measures are socially inclusive include making taxes and subsidies progressive (supporting the near vulnerable) and preparing the workforce for the green transition, for instance by adapting and adopting "Just Transition" principles refocused for an era of economic crisis and recovery (OECD, 2017[14]).

x. The relative importance of the other dimensions volition likely vary across unlike land contexts, according to their development priorities, infrastructure needs and social circumstances, in particular for developing countries. These dimensions include:

• Adjustment recovery measures with long-term objectives for reducing GHG emissions. Avoiding the worst impacts of climate alter is key to time to come resilience and stability. A conscientious assessment of the influence of stimulus packages on future GHG emissions trajectories is crucial, including in the context of moving towards net-zero emissions. This relates both to almost-term emissions of economic activities receiving liquidity support, besides as long-term structural implications of potential lock-in through infrastructure investment decisions facilitated by recovery packages. The long-lived nature of infrastructure investments likely to exist made through stimulus packages means that decisions made now will take implications for decades to come, and could determine whether the world can reach its goals of averting the worst impacts of climatic change.

• Strengthening resilience to the impacts of climatic change. Resilience to climate change is one specific aspect of improving the overall resilience of economies and societies. In detail, infrastructure networks will face up increasing pressures from the impacts of climatic change, just as well play an important role in building social club's resilience to those impacts. Infrastructure investment is likely to be a key component of recovery measures in many countries – in office because of job creation potential – and it is of import to ensure that infrastructure investments are climate resilient and do not increase exposure and vulnerability. This will reduce direct economic damages from climate related disasters and minimise the indirect costs created by the cascading impacts caused by the disruption of both critical services and economic activities. New infrastructure investments, including in low-carbon developments, need to build in resilience against time to come climate impacts, past assessing climate risks across the lifetime of the project. Retrofitting existing infrastructure is more than costly, both organisationally and in terms of concrete investment (OECD, 2018[15]).

• Integrating more aggressive policies to halt and reverse biodiversity loss and restore ecosystem services, including through nature-based solutions. Biodiversity and ecosystem services are key to economic activities and human health; deforestation and other state use change have been linked to the spread of diseases. Investment in natural infrastructure such as reforestation and wetland and mangrove restoration are not only a price effective and sustainable way to improving resilience to climate impacts, but offer employment opportunities similar to homo-made infrastructure investments. Investments targeted through stimulus packages demand to better assess and value biodiversity and ecosystem services, and integrate these values into decision-making. In add-on, regime support that is potentially harmful to biodiversity must be identified and reformed. Additionally, valuing natural capital is integral to improving a range of environmental health dimensions that are important for societal resilience to pandemics and other shocks (such as cleaner air and water (these issues are covered in detail in another policy brief (OECD, 2020[1]))

• Fostering innovation that builds on enduring behaviour changes. Continued technological and process innovation will exist critical to achieving climate and other sustainability goals. Governments play a key role in fostering an innovation ecosystem, well beyond funding basic research and evolution (OECD/The World Banking company/UN Environment, 2018[16]). Even so, the COVID-nineteen pandemic volition touch cultural norms and behaviour in ways that are non however known. To be effective at creating jobs and improving resilience, stimulus packages need to take into account potential behaviour changes that could affect the saliency of different policy measures, including for innovation. For example, tackling reluctance to have public ship past encouraging measures to reduce crowding, better hygiene and to encourage "active" transport modes; introducing measures that better support remote working (including well-beingness aspects) in order to reduce demand for send such equally encouraging remote working and events.

• Improving resilience of supply chains, including through increased adherence to circular economic system principles: the COVID-19 pandemic and containment measures have raised new questions about the systemic resilience of complex global production methods and value bondage, triggering renewed interest in more diversified and more localised production and shorter supply chains in certain sectors. The environmental implications of such a shift are far from clear, but there is a role for policy, including through stimulus packages to ensure that local supply chains practise genuinely meliorate resilience and reduce environmental impacts, including by improving resource efficiency and increasing circularity of supply chains.

eleven. Fortunately, designing stimulus measures in this mode does not hateful starting with a blank slate. International agreements already exist across many of these dimensions, such as the Paris Agreement on climate modify, the Aichi Biodiversity Targets, and the Sendai Framework for disaster risk reduction. The UN Sustainable Evolution Goals as well provide an overarching compass for ensuring that social development and well-existence is fully integrated with environmental objectives. In terms of policy measures, many of the needed actions to build dorsum improve and improve resilience through stimulus packages tin build on existing cognition of policy pattern implementation. For instance, although GHG emissions were growing until 2019, the experience from more two decades of designing and implementing climate responses and assessing their effectiveness remains relevant. Like policy knowledge exists for halting and reversing biodiversity loss, and improving circularity of material use, among others. Additionally, there are some primal lessons from environmental measures integrated into stimulus measures following the global fiscal crisis in 2008-09 (Agrawala, Dussaux and Monti, 2020[17]).ii

"Building Back Better" in practice

12. This department provides some key examples of opportunities for "building back improve" across sectors, highlighting where public stimulus spending could be oriented to align across several of the higher up dimensions simultaneously. These examples are clearly non exhaustive, just are highlighted hither because of their relevance for where stimulus investments tin can catalyse important systemic alter in economic sectors while also meeting the urgent demand for creating employment, or otherwise trigger changes necessary to support longer-term resilience outcomes. While these examples comprehend a wide range of specific policy areas, some overarching policy guidance is provided in Box 1.

Enhancing biodiversity while ensuring a resilient supply of food

thirteen. Biodiversity and natural infrastructure such as wood, wetland and mangrove ecosystems, are essential inputs for many economical activities, and are central to hundreds of millions of livelihoods. Natural ecosystems are too essential pillars of resilience. Yet most of this natural majuscule is undervalued in the economic system, or valued simply equally a harvestable commodity and not for the vital ecosystem services provided. The unpriced natural capital consumed past chief production (agriculture, forestry, fisheries and mining) and some primary processing sectors (including cement, steel, pulp and paper) was valued at USD seven.3 trillion in 2013 (Natural Capital Coalition, 2016[18]). However, despite the introduction of some policies to value biodiversity, in item through payments for ecosystem services, about existing approaches to mensurate and value natural upper-case letter loss remain limited (OECD, 2019[nineteen]). Through recovery packages, governments may have leverage to increase individual finance for nature-based solutions and to enlarge the commitment of businesses and investors to measure biodiversity impacts, dependencies, risks and opportunities, due east.g. through conditions for fiscal support in recovery packages to agronomics and other sectors with close links to biodiversity (OECD, 2019[19]).

What policy tin do

While the multiple dimensions of "building back amend" span many specific policy areas, some fundamental recommendations for governments to consider are:

• Screen all elements of stimulus packages for their longer terms implications beyond the key dimensions outlined above, prioritising actions that:

  • Combine benefits for jobs and reducing inequality with implications for longer-term resilience, including by avoiding locking-in emissions intensive infrastructure and systems.

  • Tin can be implemented chop-chop, including "shovel-gear up" targets for public investment and existing policy frameworks that can be rapidly scaled up

  • Favour cross-sectoral, cross-government approaches that take a long-term, systemic view rather than single technological outcomes

• Build pipelines of "shovel-ready" sustainable infrastructure projects: take co-ordinated cross-ministry activity to build pipelines of sustainable projects that tin be implemented quickly, while fugitive favouring established emissions-intensive activities simply considering they are fast

• Maintain (and increase) appetite of long-term environmental objectives (including cyberspace-aught GHG emissions) and ensure that policies and investments triggered through stimulus packages are aligned with those outcomes, for example:

  • Avoid relaxing existing environmental regulations to provide near-term relief, equally the costs of longer-term vulnerability will oft outweigh short-term economic relief

  • Brand subsidies and other government support for specific industries provisional on both environmental improvements (including GHG emissions) and better overall resilience (including for the workforce)

  • Brand energy pricing coherent as part of financial reorganisation post-crisis, including phasing out fossil-fuel subsidies and edifice carbon pricing that includes social protections (e.g. using carbon pricing acquirement to mitigate distributional implications for households, as well as to finance support for structural adjustment of workers and communities).

• Actively support development of light-green finance flows to ameliorate resilience, encouraging longer-term horizon for financial decisions:

  • Measure the consistency of investments and financing with climate change mitigation and resilience, building on existing private and public sector initiatives (Jachnik, Mirabile and Dobrinevski, 2019[twenty])

  • Promote robust and transparent definitions and standards for green finance in society to guide financial allocations and investment (including taxonomy approaches);

  • Increase potential for public finance to catalyse private investment past further empowering public finance institutions: e.g. by increasing lending authority and ability to co-invest.

  • Increment and improve capacities to assess, manage and publicly disclose climate change-related financial risks, edifice on existing frameworks and approaches (e.yard. TCFD, NGFS).

• Design public procurement processes that value both resilience and low-carbon equally well as promoting innovation: for case ranking bids based costs over the asset lifetime nether different climate impact scenarios, and bookkeeping for life-cycle GHG emissions.

• Provide specific support for reskilling and grooming for industries affected by the firsthand crisis and longer-term decarbonisation, along with supportive policies such as reforming housing policies to encourage mobility.

14. The nutrient sector is fundamentally of import for the conservation and sustainable use of natural capital, and ultimately dependent on it. Secure nutrient supply is essential for well-being and economical stability – indeed even to sustain life – meaning that the availability and affordability of nutrient are likely to be key authorities priorities coming out of the crunch (OECD, 2020[21]).

15. The agriculture sector faces growing threats including from climate alter and infectious diseases of plants and livestock. Information technology is also a major driver of environmental degradation. Land-use change, including for agriculture, is responsible for a large function of deforestation. Furthermore, excessive fertilizer utilise has important implications for freshwater and body of water ecosystems due to nutrient run-off. Increased ecosystem pressures due to agronomics could also take implications for potential creation of new human diseases. Agricultural expansion into zones shut to wilderness areas increases pressures on biodiversity, and agricultural intensification, for example with denser livestock populations, tin can increase the chance of zoonotic transfer of viruses across species (Jones et al., 2013[v]).

16. Agriculture already receives substantial regime support globally. In 53 countries analysed by the OECD, farmers received effectually USD 528 one thousand thousand in support in 2019 (OECD, 2019[22]). In addition to securing jobs and preventing near-term supply disruption, recovery measures should aim to reshape policies in the sector to promote ecology sustainability and resilience, and innovation for improved productivity. In the context of the COVID crisis, at that place is potential to focus on reform of the almost harmful and distortive measures, including but non limited to the reinforcement of coupled supports (i.e. those proportional to production or livestock), equally well as the relaxation of environmental regulation. Such measures could otherwise contribute to locking-in unsustainable practices and delay the transition of nutrient systems towards sustainable practices. Investments and training aimed at triggering farmers' transition to more sustainable agronomical practices would benefit the environment, climate, as well equally farmers' livelihoods.

17. More than generally, patterns of consumer food choices can be important levers for ambitious climate mitigation as well equally for improving health and well-being through balanced diets. Where access to sufficient protein is not an issue, policies to promote lower-emission food choices may too assist, such every bit encouraging more than constitute-based food choices or shifting to sourcing from lower-emission livestock systems. Measures that could contribute to such objectives include public communication campaigns or educational activity. It is also crucial that, governments address the issue of food security for vulnerable populations. Food stamps and increased subsidies may as well be an option to help vulnerable populations, as long as concrete access to healthy food and diets is ensured.

Investing for low-carbon, resilient electricity systems

eighteen. Economic stimulus packages tin aid accelerate the shift towards a zero-carbon, climate-resilient electricity system while creating jobs. While large-calibration renewables remain important in this regard, distributed renewables, demand-side energy efficiency and improving the flexibility of the power system are besides important opportunities.

19. Energy-related stimulus measures need to consider the changed context of the global energy system, with a historic reduction in energy need expected in 2020, contributing to extremely low and volatile fossil fuel prices (IEA, 2020[23]). Enduring low oil and gas prices reduce incentives for energy efficiency and renewables, as well as leading to reduced investment in fossil fuel industries. Free energy investment is expected to decline sharply in 2020, even for renewables (IEA, 2020[24]). In this context, using stimulus spending to invest in and mobilise finance for 'shovel-set up' utility-scale renewables (e.k. air current and solar photovoltaic) remain key levers for a sustainable economic recovery. Merely this is but part of the story. Stimulus packages can additionally seek to bulldoze investment in other measures that accelerate decarbonisation while too improving resilience of the electricity organization, both to climate impacts and demand shocks such as that triggered by the current crunch. Examples include energy efficiency, distributed energy resources and improving the flexibility of the power system. In developing countries, measures that increase electricity access, including through off-grid or mini-filigree renewable systems, tin have many benefits for employment, well-being, health and societal resilience ( (IEA, 2017[25]).

20. Energy efficiency is a clear candidate for a greenish recovery package simply it is essential to achieve climate goals and is ofttimes generally labour-intensive. More than 3.three one thousand thousand people are employed in free energy efficiency in the US and Eu alone, nearly of them in pocket-sized and medium sized enterprises (IEA, 2020[26]). Prioritising energy conservation and distributed free energy resources too improves the resilience of the power organisation while delivering on a number of well-being benefits (enhanced affordability, lower environmental footprint, lower investment needs in network infrastructure). Beyond ability, an of import target for energy efficiency is the building sector (covered below). Energy efficiency beyond the economic system can also mean a switch to electricity for energy uses previously directly using fossil fuels, such as electrification in industry, roll-out of electric vehicles and electric heat pumps every bit part of building energy efficiency measures (IEA, 2018[27]). While this electrification trend can accept substantial benefits for reduced air pollution at the point of apply, the implications for GHG emissions depend on the decarbonisation of the underlying electricity system, likewise as its power to handle the increased demand pattern.

21. Challenges to scaling upwardly free energy conservation and distributed energy resources during the recovery include the relatively pocket-sized scale of these projects and potential liquidity constraints for both households and firms. Governments could leverage on existing programmes, create 'project pipelines' of shovel-gear up projects, and place partners (e.grand. utilities, municipalities, housing associations) and channels (e.1000. energy efficiency obligations, on-bill financing) that assistance scale up the programmes in the short-term without creating a boom and bosom cycle (IEA, 2020[26]). These measures can exist accompanied by investments in training to reduce skill shortages in the power and energy sector, including for free energy system engineers and edifice retrofit specialists.

22. Some other important target for stimulus packages is public investment in flexibility of power systems. This can include electricity storage (notably lithium ion batteries, as well essential for electric transport), smart grids (e.yard. rollout of smart meters) that are crucial for demand response, facilitating the integration of variable renewable energy sources and improving interconnection of grids. The lock-downwardly measures imposed during the COVID-19 crisis accept shone a spotlight on the importance of grid system flexibility, because falling need has raised the share of renewables due to their priority dispatch and low-running costs. Finally, innovation in the energy sector is essential for technologies that will exist essential for reaching cyberspace-zero emissions over the longer-term, including carbon capture and storage.

Energy efficient housing as part of compact, resilient and sustainable cities:

23. The confinement of hundreds of millions of people to their homes due to COVID-xix has highlighted major failures in the housing sector and illuminating social inequalities related to the quality and comfort of dwellings and building services such as sanitation. Situations where poor quality housing increases inequality by posing major threats for security and health take become ever more than visible, including through indoor air-pollution, besides through increased living costs due to poor energy efficiency.

24. Cities, and the building sector more broadly, are key targets for energy efficiency improvements. Buildings account for nearly 30% of global CO₂ emissions, both through direct burning of fossil fuels for heating and indirectly through their electricity consumption (IEA, 2019[28]). To achieve the goals of the Paris Agreement, there is a strong need both for retrofit of existing building stock and for new builds to meet stringent energy-efficiency standards. Despite the clear benefits of investing in building efficiency, the barriers are well-known, including the need for upfront capital letter, behavioural inertia and dissever incentives betwixt landlords and tenants. In emerging economies, the investment gap for green buildings is estimated at USD 1 trillion annually according to the IFC. While country contexts vary for both types of investments, policy gaps (eastward.g. the need for building standards and incentives for energy efficiency), and the need for robust and scalable business and financing models, are typically key factors standing in the mode of accelerated investment. Stimulus packages could therefore be disquisitional to invest in the massive retrofits needed to reduce GHG emissions from the building stock at the same fourth dimension as improving living conditions and creating jobs. Measures include straight grants, tax breaks for efficiency investments and potentially scrappage schemes for inefficient household appliances. Good experience with such measures was gained from stimulus measures following the 2008 financial crisis (Agrawala, Dussaux and Monti, 2020[17]). Policy incentives for residential free energy efficiency also present clear opportunities for attracting individual sector investment ( (I4CE, 2020[29]).

25. More broadly, economic recovery measures need to consider amend coordination betwixt housing policies and wider urban planning. In many countries urban planning has led to sprawling cities, with structurally higher GHG emissions and air pollution than dense cities, for several reasons including increased reliance on private cars. The COVID-xix pandemic could exacerbate this trend through an increase in demand for less dense neighbourhoods. For example, city dwellers may seek single-family homes in less dumbo neighbourhoods, due to a perception of higher infection risk in more dumbo housing. This could run counter to efforts to curb GHG emissions and could create a tension between balancing future resilience with mitigation. Transforming cities into liveable places where people want to live and stay can help offset this tendency and contribute to both decarbonisation, resilience and lower inequality. Measures could include integrating programmes to retrofit buildings as part of wider sustainable development plans for neighbourhoods. In addition, creating the weather for the uptake of eco-districts, both as part of urban revitalization and new developments, can help to make cities attractive places to live, as well as improving resilience to climate change impacts such as more than intense heatwaves. Finally, promoting mixed land-uses and enhancing walking and cycling accessibility are key, providing redundancy in transport options that is a pillar of improved resilience, discussed further beneath.

Catalysing the shift towards accessibility-based mobility systems

26. For passenger ship, stimulus packages should aim to combine support for a transition to less polluting cars with investments that initiate a shift towards accessibility-based mobility. The automotive sector is a major global employer, accounting for effectually xiv million jobs globally, and has been severely affected by the COVID-19 crunch (ILO, 2020[30]). Equally governments consider longer-term support for ailing car manufacturers, they can ensure that such support is contingent on environmental improvements including accelerating the shift to electric cars equally well as more efficient, cleaner ICE vehicles. Withal, recovery measures should likewise comprehend a shift towards mobility systems designed effectually accessibility (the ease of reaching jobs, services, leisure activities, etc.), rather than merely emphasising an accelerated uptake of private electric vehicles. The latter would lock-in individual vehicle buying and depression-occupancy vehicle use. This would limit the overall emissions reduction potential of the transport sector, and also implies a less resilient system due to overreliance on one transport style. A mobility system based heavily on private vehicles is also desperately equipped to accomplish other social and economic goals (east.yard. reduced inequality, better health and less congestion).

27. Investing in public transport remains essential both for mobility and for jobs: almost as many people piece of work in public send equally in the motorcar manufacture (13 one thousand thousand) (UITP, 2017[31]). All the same, governments demand to recognise new challenges for public transport, such as people being reluctant to take mass transit for sanitary reasons (ITF, 2020[32]). Besides every bit urgent hygiene and social distancing measures, over the longer term fiscal support and infrastructure spending could be targeted to enhance capacity, reduce crowding and rebuild the appeal of public send, particularly as capacity is probable to be strained while social distancing measures remain in place (Liebreich, 2020[33]). Already some cities have benefited from traffic drops during the contingency phase to speed up public transport projects, such as the Bus Rapid Transit extension in Reno, and the metro structure in Los Angeles.iii

28. Governments could also envisage cooperation with both public transport providers and businesses in ii ways. Firstly, to back up the shift towards public transport pricing schemes that make more efficient employ of transport chapters (e.g. elevation/off-tiptop pricing) and secondly, to encourage more flexible working schedules and remote working where possible. In parallel, investment in electric vehicle charging infrastructure is a key opportunity for recovery packages, both for private vehicles and electrified public transport such every bit buses. Charging plans demand to take into business relationship the opportunity cost for other modes likewise equally public space used.

29. Equally economic activity resumes, there is an opportunity to reallocate route space and encourage agile send, equally a means to create jobs, reduce emissions, improve resilience and even boost public health. At least150 cities effectually the earth have already taken emergency action to create temporary cycle lanes and other space for active send that allows for social distancing rules (ITF, 2020). To make these temporary changes permanent, stimulus measures could support redesigning route infinite away from cars to more sustainable modes (with a holistic view to raise accessibility and promote safety) and adequately price it, edifice on testify from the air quality and road safety improvements due to COVID-19 lockdown measures. Active transport modes and micro-mobility (e.g. electric scooters, bike sharing schemes) volition exist primal to preclude a big shift from public ship to the car; supporting them with both investment and road reallocation is also important. R&D back up could focus therefore in innovations effectually electric micro-mobility rather than exclusively on electric cars. Reconfiguration of road-space should also consider the need to better accommodate freight movement (particularly of last-mile travel inside dense urban center areas) and ensure transition to cleaner fleets; specially as urban freight volumes could increase with higher demand of e-commerce mail service-COVID. Pursuing an accessibility-based model, encouraging agile and public ship modes, volition besides set a meliorate context for advancing and increasing effectiveness of phasing out fossil fuel subsidies (where these are all the same in place) and implementing ambitious carbon prices (OECD, 2019[13]).

Improving resilience of supply bondage while accelerating the shift towards circular economy principles

30. The COVID-xix crisis has shone a spotlight on the resilience of global value chains, which have become increasing circuitous and globalised in recent decades. If firms seek to ameliorate resilience past shortening supply chains or making them more local, it will be important to ensure that such changes practise not inadvertently increase emissions or other environmental impacts. Additionally, economical recovery policies may provide an opportunity to better resource efficiency overall, including through exploiting job creation possibilities related to the circular economy.

31. Producing and shipping raw materials and manufactured goods along global supply chains is a key pillar of global economic action merely also a major source of environmental pollution. Materials management already accounts for near two-thirds of global GHG emissions, and is projected to increase by two-thirds by 2060 nether current trends (OECD, 2019[34]). Despite widespread policy efforts to encourage greater recycling and circularity of both product and consumption, the rate of recycled materials globally remains low.

32. The pursuit of efficiency and minimised costs in recent decades has led to highly circuitous supply chains, oft with global accomplish and concentration in Asia (peculiarly in the People's Democracy of Communist china). This contributed to emissions reductions in developed countries, as some emissions were finer "off-shored" to countries higher up the value chains, considering emissions are ordinarily measured based on where goods are produced rather than where they are consumed. The resulting complex supply bondage may in some cases be more exposed to risk of disruption, in part due to an emphasis on leanness and efficiency at the expense of redundancy and resilience. Another gene is the geographic concentration of upstream actors, meaning for example that disruption of a unmarried supplier can ripple across multiple supply chains. The sheer complexity of supply chains also plays a office, equally companies lack awareness of all the suppliers and secondary suppliers in their supply chains, making proper evaluation of risk challenging (Choi, Rogers and Vakil, 2020[35]). However, if firms seek to improve resilience by shortening supply chains or edifice in back-up, it will nevertheless be important to ensure that these changes do not pb to increases in emissions or ecology impacts. For example, within the OECD area there is evidence that off-shoring led to overall reduction in emissions, due to relocation to regions with less GHG-intensive product (Garsous, 2019[36])

33. The recovery measures proposed by governments as well nowadays an opportunity to seek greater circularity in supply bondage, which can act both to improve resources efficiency and resilience for businesses (by building greater resilience to supplier risks) and guild (past reducing ecology risks). In round value chains, waste is minimised and end-of-life products are recovered for reuse, remanufacture, and recycling. This is accomplished through improved product design (e.g., for disassembly, remanufacturing and recycling) and increased efficiency in the employ of material resource, which generates a number of benefits. The availability of recycled materials and products for reuse and remanufacture leads to new sources of supply and supports the diversification of supply bondage. Circular value chains also help to advance climate mitigation via reduced primary material production and opportunities to shift consumption towards product-service and other circular business models). Governments can catalyse the uptake of circular value bondage via green public procurement (eastward.g., the Netherlands' Nearly Economically Advantageous Tender process), removing trade barriers on scrap, landfill fees, Extended Producer Responsibleness, and capacity building amongst firms (OECD, 2019[37]); (Yamaguchi, 2018[38]).

34. An increased utilize of digital technologies for supply chain management can likewise improve resilience and reduce the likelihood of disruptions, past providing data to identify and evaluate a number of resource efficiency risks and opportunities. On 1 mitt, digitalisation lays the foundation for disclosure of climate-related risks past companies for example through the recommendations of the Task Strength on Climate-related Financial Disclosure (TCFD). The recovery from COVID-nineteen opens an opportunity for governments to require both articulate actions towards alignment with environmental policy objectives, as well as disclosure of climate-related risks as weather condition for fiscal support through recovery policies. Nevertheless, this would need to exist practical cautiously in order to avoid hindering action through authoritative burdens, so may be best applied to larger firms. On the other hand, automation and digitalisation of industrial processes frequently enhances the efficiency of production – including by heavy industry – thereby reducing emissions. Governments can catalyse this shift by attaching conditions on stimulus packages to increase the uptake of these technologies, as well equally through targeted innovation policies. However, every bit job creation is often at the eye of stimulus measures, the implications of automation for the work force would need conscientious consideration and agile labour market management.

References

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Notes

← one. Coined in 2006 in the aftermath of the 2004 Asian tsunami, past 2015 the term "Edifice Dorsum Better" was in widespread use past the Disaster Adventure Reduction (DRR) community and was incorporated into the priorities of the Sendai Framework for Disaster Run a risk Reduction (United nations Office for Disaster Risk Reduction, 2015[twoscore]). It generally refers to the recovery, rehabilitation and reconstruction phase later on a disaster to increment the resilience of communities through the restoration of physical infrastructure and societal systems. In that context, there is evidence that disasters did pave the mode for regulatory and policy changes to enhance resilience and invest in prevention (OECD, 2014[39]). The emphasis is not only on preventative measures to reduce toll of recover, but as well on incorporating social and ecology improvements for increasing well-being of impacted societies.

← 2. The stimulus measures enacted following the global financial crisis of 2008-09 included many examples of governments seeking to integrate aspects of sustainability, with varying degrees of success both economically and environmentally (Agrawala, Dussaux and Monti, 2020[17]). The similarities between COVID-xix and that crisis are however limited. The nature of the economic and social crunch currently engulfing the world is fundamentally unlike, borne out of a deep and wide drib in need right beyond the existent economy, rather than emanating from the financial sector. Importantly, the environmental outlook is also different than it was in 2008. More than a decade later, the need to act on climatic change and biodiversity is much more urgent and more than broadly accepted by the public. In addition ten years of technological development have seen vast cost reductions in key technologies.

← iii. In Los Angeles, the COVID-xix crisis has helped L.A. Metro ( the send authority) to overcome original opposition from residents, equally speeding structure during this time volition minimise construction impacts for local business organization when activities are renewed (Bliss, 2020).

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