The opportunity to align the goals of economic recovery to the COVID-19 crisis with the goals of the Paris Agreement is one that cannot be missed. Failure to do so may result in the world falling short on both goals. Decisions taken now will likely impact the state of climate mitigation and adaptation out to 2030, and possibly beyond. Conversely, an economic recovery cannot be sustained over the long-term if it reverts to reinforcing business-as-usual degradation of the environment, climate and society.
While realizing temperature goals and net-zero emissions under the Paris Agreement remain a longer-term effort, making investment and financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development can be fostered now through the economic recovery packages and reinforced by actions by the private sector banks and investors.
The private sector will be central to the recovery of employment and consumption and for investment and innovation to drive economies forward. Confidence in the strength of government policy, in the clarity of its direction, and in its steadiness over time will be crucial. The development banks ecosystem can play a vital role in helping to take programmes to scale and in catalysing private finance under uncertainty.
Adopting economic recovery measures that are consistent with low GHG emissions and climate-resilient development will not only help make the goals of the Paris Agreement a reality, it will also help build resilience to future shocks.
As part of the June Momentum, this special event will focus on actions government, public and private financial institutions may take to integrate climate considerations in responses to the crisis.