Green economists like Nobel Laureate Joseph Stiglitz, have joined forces with an Oxford University paper to identify environmentally friendly public investments with quick positive economic effects. As per the report, only 5 of 25 categories of stimulus spending had a positive climate impact, meaning most of the recent stimulus hurt the climate.
When done right, the authors said green projects would create more jobs, lead to increased long-term cost savings. Some of the prominent examples are digital infrastructure, clean energy, among others.
Sustainable Investing could be the main driver of the economy and make one more resilient, said Julie Gorte, senior vice president of Sustainable Investing for Pax World Funds.
John Hoeppner, who heads sustainable investing for Legal & General, said that broader preparation has been a critical factor in businesses coping with Coronavirus, as they avoided serious practical issues and respond to all the stakeholders.
Due to strict protocols such as countrywide lockdowns, emissions in 2020 are set to drop by at least 5 per cent, however, to get to zero we would have to keep dropping at the same rate and to do so must adopt to sustainable means, Gorte said. However, as it is not due to any effective ongoing policy, maintaining it could be difficult, if not impossible.
It is owing to such factors that renewable energy seems like a hot investment prospect. They can help meet stricter climate targets, and they are also a cost-effective choice in two-thirds of the plane- a viable long-term energy investment option.
The high-tech today is in batteries, carbon capture, and hydrogen power. This coupled with new gas plant costs which are around $2 billion- an ineffective investment has led to increased investment in the renewable.
Furthermore, the other high-tech energy source- nuclear power- is no longer economically viable in many situations. There is no subsidy, you need clean water and it can’t be too warm, Gorte said.