Governments have ignored green initiatives as they rally to recover from the pandemic, spending only “miniscule” amounts of stimulus packages on a sustainable future, a Kames Capital investment manager has warned.
In response to the Covid-19 pandemic there has been an $11 trillion (€9.3 trillion) global fiscal stimulus, according to the Institute of International Finance. Less than 1% of this has gone towards projects classed as ‘green’.
In Germany, €50 billion is being directed to electric and hybrid vehicles, renewable energy, public transport and to reducing green surcharges on consumers’ power bills – only a portion of the German government’s recovery package.
“While €50 billion is sizable enough to grab headlines, it represents a small fraction of Germany’s overall stimulus package,” said Kames Capital’s Colin Dryburgh.
The situation in the UK is even worse, the investment manager added. “The UK’s £3 billion green jobs recovery package is miniscule in comparison. Significantly higher levels of green-related spending would make good economic sense – as well as have a positive environmental impact,” he said.
“The economic consequences of Covid-19 will see government spending surge to unprecedented levels. There’s no shortage of suggested feasible sustainable initiatives, therefore no excuse to target anything but a more ‘sustainable’ recovery.”
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