UN Environment Programme studies $14.6tn of covid-induced spending in 50 nations.
While much of the world has emphasised the need to build back greener after the damage done by the Covid pandemic, a new study from the UN Environment Programme (UNEP) has found that so far spending has not backed this up.
The UNEP report, Are We Building Back Better?, reveals that of $14.6tn spent on both the response to the pandemic and economic recovery efforts, just 2.5% ($368bn) can be considered sustainable or ‘green’ according to the study of major economies. The figures improve when the report looks exclusively at money dedicated to recovery spending, though still only to 18%.
One of the biggest problems identified by the report is that the countries spending the largest sums on economic recovery are often spending the lowest proportion on green recovery. This sees the UK, China and Japan – three of the largest spenders on total recovery efforts – allocating as little as 10% to green growth efforts.
Despite the headline limitations, however, there are some success stories that the report highlights. They include Germany, France and Finland among ‘current leaders’, all of which have allocated 40% or more of their recovery funding to building back greener. There are also positive stories from countries that have only just started their recovery programmes.
The report suggests that Ireland, Switzerland and Canada are among those showing promising proportions of green stimulus as they get their recovery efforts underway. Turkey, meanwhile, is the only country so far with 100% green recovery stimulus. This reflects its strategic ambition to achieve energy security through sustainability.
In total the report identifies several categories of green recovery investment. There has been $86.1bn announced or spent on green transport in the form of electric vehicle transfers and subsidies, investments in public transport, cycling and walking infrastructure. There has also been $35.2bn for green building upgrades to increase energy efficiency, mostly through retrofits.
$66.1bn has gone to low carbon energy, largely in Spain and Germany, as a result of large subsidies for renewable energy projects and infrastructure investments. Meanwhile the USA and China were responsible for much of the $56.3bn dedicated to natural capital or nature- based solutions. Two-fifths of this was directed towards public parks and counter-pollution measures.
$28.9bn has also been announced for green R&D across the 50 countries studied.
Click here to download the Are We Building Back Better? report.