Fossil-Free Recovery
These resources provide policy-makers with tools and recommendations for how best to use public funding in a way that will trigger vital and urgent changes in our energy systems.
As the COVID-19 pandemic continues, governments around the world are injecting trillions of dollars of public money into their economies in an effort to counteract the socio-economic effects of the crisis. While spending has ballooned, government revenues have contracted due to reduced economic activity and tax cuts, resulting in previously unimaginable levels of debt and deficit. Governments now face the critical challenge of solving the most pressing health issue of our times, as they fight to keep their economies running and minimize the impact on people and business. This will necessitate raising and spending scarce public resources more carefully than ever.
Despite the many challenges, however, it is possible to address critical health and economic priorities in a way that allows us to “build back better.” As hundreds of billions of public dollars flow into the energy sector, governments have a particular opportunity to support the clean energy transition. In order to mitigate and adapt to the climate crisis, governments must ensure that recovery funds support this necessary paradigm shift. This includes increasing support for renewable energy and energy access in ways that create new jobs and leave no one behind. However, so far, of quantified funds committed to energy-intensive sectors, G20 governments have allocated more than half to fossil fuels while pledging just over one third to renewables.
The Fossil-Free Recovery project looks at:
- How governments can raise money from fossil fuel subsidy reform and taxation
- Practical solutions to spend it efficiently to create a more resilient and sustainable society.
Research
Achieving a Fossil-Free Recovery
This report lays out concrete options for governments to achieve net-zero and sustainable development goals by using recovery spending to support the transition to clean energy and a resilient, fossil-free economy.
Nordic Environmental Fiscal Reform
Nordic countries have successfully used environmental fiscal reform (subsidies, taxation and spending) as an economic recovery tool to boost revenues, economic growth and employment while reducing greenhouse gas emissions and air pollution.
Achieving a Fossil-Free Recovery: Infographic
Governments must take action now to avoid catastrophic climate change. The International Institute for Sustainable Development has developed a blueprint of five steps for governments to achieve a fossil-free recovery.
Financing Green Recovery From Fossil Fuel Taxation and Subsidy Reform
This brief reviews how the Government of Indonesia (GoI) can finance its COVID-19 recovery budget at the same time as the energy transition by raising funds from fossil fuel taxation and subsidy reform. It also provides recommendations on future expenditures.
How Indonesia Can Achieve Both a COVID-19 Recovery and Its Climate Targets
This brief reviews how the Government of Indonesia (GoI) has spent its COVID-19 recovery budget and provides recommendations on its future expenditure.
Articles
Responding to the Health Crisis and the Climate Crisis in Tandem
As we look to chart a path to a post-COVID future, young private sector leaders say we have an invaluable opportunity to avoid past mistakes.
How Can Renewables Help Us Through the COVID-19 Pandemic?
Richard Bridle, co-author of Achieving A Fossil-Free Recovery, explains why governments should put renewable energy at the heart of their recovery.
Fossil Fuel Subsidy Reform and Taxation: Tools for a green recovery
Joachim Roth suggests two key ways to fund energy transitions during the COVID-19 recovery: fossil fuel subsidy reform and green taxation.
The Disparity Between Climate Commitments and Spending
Are governments missing a historic opportunity to fund green transitions? How has the pandemic affected the energy system? Tom Moerenhout explains.
Five Key Principles for a Fossil-Free Recovery
Lourdes Sanchez, lead author of Achieving a Fossil-Free Recovery, explains how the COVID-19 pandemic has created a window of opportunity to fund a green recovery, along with five principles to do so.
Green Recovery Know-How From the Nordics
Nordic countries are known for combining healthy economic growth with solid social and environmental policies. What's their secret to green recovery?
Videos & Podcasts
How to Achieve a Fossil-Free Recovery
This episode is about one of today's biggest challenges: recovering from the COVID-19 pandemic in a way that helps build a resilient and fossil-free economy.
Solutions in 60 Seconds: 5 steps for a fossil-free recovery
IISD's Lourdes Sanchez, lead author of the report “Achieving a Fossil-Free Recovery,” explains in just 60 seconds how governments can use their energy systems to boost their economies while meeting climate goals.
Solutions in 60 Seconds: Greening the stimulus for a fossil-free recovery
IISD's Tom Moerenhout explains in 60 seconds why governments must stop using COVID-19 recovery spending to fund fossil fuel production if they are going to make progress toward reaching net-zero emissions.
Solutions in 60 Seconds: Tax and reform for a fossil-free recovery
IISD's Tara Laan takes just 60 seconds to explain the benefits of using fossil fuel subsidy reform and green taxation to fund a green recovery.
Solutions in 60 Seconds: Clean energy projects for a fossil-free recovery
IISD's Richard Bridle takes just 60 seconds to explain why our post-pandemic recovery should include investment in clean energy growth.
Solutions in 60 Seconds: Just Transition and a fossil-free recovery
In 60 seconds, IISD's Philip Gass explains why the COVID-19 recovery is a perfect opportunity to use just transition measures to build a resilient economic future where no one is left behind.
Project team
Christopher Beaton
Director, Energy Program, Public Financial Flows
Richard Bridle
Senior Policy Advisor
Philip Gass
Director, Energy Program, Just Transitions and Canada
Anna Geddes
Associate
Ivetta Gerasimchuk
Director, Energy Program, International Strategy
Jonas Kuehl
Policy Advisor
Tara Laan
Lead, Incentivizing Renewables
Tom Moerenhout
Associate
Shruti Sharma
Lead, Affordable Energy
Paulina Resich
Senior Communications Manager
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