solar power africa

Coronavirus relief funds could easily pay to stop the worst of climate change while rebooting economies

Are governments and companies willing and able to turn toward a cleaner, more prosperous future to the benefit of all?

As of late summer, governments around the world had pledged US$12.2 trillion of relief in response to the coronavirus pandemic.


That's around 15 percent of global GDP, three times larger than government spending put forward during and after the 2008-2009 global financial crisis and enough for every adult in the world to receive a $2,000 check.

A good chunk of initial COVID-19 aid funding is being used – quite rightly – to support health care systems, preserve people's livelihoods and stabilize employment. But much is slated for investment into infrastructure and economies. Whether those are climate-friendly investments or not still remains to be seen.

While the world's bout with the virus is far from over, there is already talk amongst leaders like Joe Biden and Boris Johnson about rebuilding toward a more sustainable, more resilient future.

The global economic rebuild could include efforts to avoid the worst impacts of one of today's looming mega-threats: climate change.

Money needed to achieve climate goals

Moving toward a cleaner energy world is cheaper than many people perceive.

My work at the Electric Power Research Institute, University of Tennessee and with the Intergovernmental Panel on Climate Change focuses on the costs and benefits of energy and climate decisions made by governments and companies.

According to research done by me and my colleagues, we estimate it would cost around $1.4 trillion per year over the next five years in clean-energy investment to meet the goals of the Paris climate agreement. This amount – if invested around the globe in things like solar and wind power, advanced power grids, carbon capture and storage, biofuels, electric vehicles, better insulated homes and other carbon-saving efforts – would start to bend the emissions curve, putting the world on a path to net-zero emissions by midcentury.

In other words, it is by no means impossible to hold global temperature rise to +1.5 C (2.7 F).

A lot is already being spent on climate initiatives

While $1.4 trillion per year sounds like a lot of money, it's actually not so much greater than what is already being spent on clean energy worldwide.

Countries are projected to invest an estimated $1.1 trillion per year over the next five years into low-carbon energy strategies. This pathway would take the world toward 3 degrees Celsius of warming, a level that could be quite harmful for the planet.

Much of this funding comes in response to national, state and local policy mandates and incentives. But a lot is happening thanks to pure economics as well: companies aiming to profit from new clean energy installations, which are becoming increasingly more affordable in many places.

Thus, taking into account the $1.1 trillion per year baked into the system already, the additional amount of clean energy investment needed to get on a 1.5 C track comes to just $0.3 trillion – or $300 billion – per year over the next five years.

For the entire globe, $300 billion per year over five years – or $1.5 trillion cumulative – is not an outrageous sum of money. It represents just one-eighth of the $12.2 trillion governments around the world have announced for COVID-19 relief to date.

Thus, a fraction of current bailout funding could provide the extra near-term boost the world needs to get on track to meet +2 or 1.5 C (+3.6 or 2.7 F) of warming, the levels countries committed to in the 2015 Paris climate agreement.

Change course, then move forward

President-elect Joe Biden is calling for some $1.7 trillion investment in clean energy and energy efficiency over the next 10 years. This level of investment, if also realized in other countries, could put the world on a path to meeting the goals of the Paris Agreement.

The U.S. has already committed trillions of dollars for COVID-19 relief, much of which is going toward important needs like patient care, vaccine research and direct economic bailouts. But economic recovery plans contain money for long-term economic growth, too. And that's the money I am suggesting could be directed toward climate-friendly investments.

Meeting the Paris goals will ultimately demand continued and increasing investments going forward, climbing above the $300 billion per year over the next five years that would get the world on track to 1.5 C (2.7 F). Nevertheless, an initial injection of funds into clean energy could achieve two goals: boost the global economy through large infrastructure spending and accelerate the deployment of clean energy production and energy efficiency measures.

Like with so many things, the question seems to be one of political will – are governments and companies willing and able to turn toward a cleaner, more prosperous future to the benefit of all?

Public funding appears to be available – for now – and given how massive this funding is, it provides a unique opportunity to catalyze the development, deployment and dissemination of clean technologies during the next decade, an absolutely critical period in the fight against climate change.The Conversation

David L. McCollum, is a Senior Research Scientist at the University of Tennessee

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Banner photo: The United Nations Mission in South Sudan (UNMISS) inaugurating a new solar farm in February 2020. (Credit: UNMISS/flickr)

republican climate change denial
Speaker of the House Mike Johnson. (Credit: Gage Skidmore)

Opinion: House Speaker Mike Johnson’s climate change playbook — deny the science, take the funding

The two-faced charade of climate denial while diving into the pot of federal renewable incentives and tax breaks.

It took no time for Mike Johnson to establish a hefty carbon footprint as new Speaker of the House.

Keep reading...Show less
Senator Whitehouse & climate change

Senator Whitehouse puts climate change on budget committee’s agenda

For more than a decade, Senator Sheldon Whitehouse gave daily warnings about the mounting threat of climate change. Now he has a powerful new perch.
us capitol night lights
Photo by Heidi Kaden on Unsplash

'Time to roll up our sleeves': Congress' long to-do list

Congress has just a few weeks to address a host of priorities with implications for energy, environmental and climate issues.

Toxic air killed more than 500,000 people in EU in 2021, data shows

European Environment Agency says half of deaths could have been avoided by cutting pollution to recommended limits.

dubai skyline
Photo by David Rodrigo on Unsplash

Biden to skip world leaders’ summit at COP28 climate talks in Dubai

President Biden will not attend the world leaders’ summit at the outset of the U.N. Climate Change Conference in Dubai.
portugal
Photo by Liam McKay on Unsplash

Portugal just ran on 100% renewables for six days in a row

For nearly a week, the country of 10 million met customer needs with wind, hydro and solar — a test run for operating the grid without fossil fuels.
airport check-in
Photo by Phil Mosley on Unsplash

The pandemic could have changed flying. Three years on, things are back to normal

Three and a half years after COVID-19 upended air travel, passengers are back in force. Here's why that's a problem.

coal power plant
Photo by Sam LaRussa on Unsplash

Deaths from coal pollution have dropped, but emissions may be twice as deadly

Deaths linked to coal exhaust have dropped but coal exhaust is twice is likely to contribute to deaths as other air pollution, a new study found.
From our Newsroom
childrens health climate change

Delays in joining the RGGI regional climate program means excess ER visits and child illness in Pennsylvania

Up to 128 premature deaths from air pollution could have been prevented if the state had entered the program in 2022 as planned.

environmental justice

LISTEN: Carlos Gould on wildfire smoke and our health

“Information matters a lot — trying to explain not just that there’s a problem, but how to do something about it.”

fracking PFAS

“Forever chemicals” in Pennsylvania fracking wells could impact health of surrounding communities: Report

More than 5,000 wells in the state were injected with 160 million pounds of undisclosed, “trade-secret” chemicals, which potentially include PFAS.

800,000 tons of radioactive waste from Pennsylvania’s oil and gas industry has gone “missing”

800,000 tons of radioactive waste from Pennsylvania’s oil and gas industry has gone “missing”

Poor recordkeeping on hazardous waste disposal points to potential for bigger problems, according to a new study.

drought climate farming

Opinion: Climate change and soil loss — the new Dust Bowl?

How we can save our soil, stabilize the climate, and prevent a new Dust Bowl.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.