Ref. Ares(2021)5254529 - 24/08/2021
February 2021
Greenness
of Stimulus
Index
An assessment of COVID-19 stimulus by
G20 countries and other major economies in relation
to climate action and biodiversity goals
Greenness
• Addition of the Nordic countries Denmark,
Finland, Iceland, Norway and Sweden to the index.
of Stimulus
• An increase in the total quantity of measured
stimulus to US$14.9 trillion, from US$13.0 trillion.
Index
This increase is driven by the United States’ US$900
billion bipartisan stimulus bill signed into law in
December, Japan’s December US$606 billion
stimulus, and the United Kingdom’s US$71 billion
The Greenness of Stimulus Index (GSI) assesses
new stimulus package. There were also increases
the effectiveness of the COVID-19 stimulus efforts
in stimulus packages in France (US$587 billion to
by G20 countries and ten other nations in ensuring
US$612 billion), Australia (US$176 billion to US$188
an economic recovery that takes advantage of
billion), Russia (US$117 billion to USS$129 billion),
sustainable growth opportunities, and builds
Italy (US$564 billion to US$574 billion), Canada
resilience through the protection of the climate
(from US$391 billion to US$400 billion), Germany
and biodiversity.
(by US$5 billion), India (by US$2 billion), and Turkey
(by US$1 billion), plus the addition of the five new
It provides a method to gauge the current impact
Nordic countries (US$176 billion total).
of the COVID-19 responses, to track countries’
progress over time, and to identify and recom-
• Improvements to some index scores. Notably, the
mend measures for improving the effectiveness
United States and Canada have dramatically improved,
of those responses.
with China and India also leveraging new packages
and policies into increased scores. Overall, 17 countries
This assessment is updated regularly – please use
improved their GSI scores in this edition, while only
the latest version. The policies in this release are
four countries’ scores decreased. This reflects momen-
current as of 1 February 2021. The previous release
tum towards greener stimulus as countries move from
was published in December 2020.
rescue to recovery, but it is also a function of the more
positive underlying baselines of countries that
This note is part of a series looking at economic
released new stimulus since the December edition.
responses to COVID-19. Other notes relate to
corporate bailouts, international assistance flows
• Major new analysis of the United States.
into developing countries and job-creating fiscal
The country passed a US$900 billion stimulus
stimulus. This work was undertaken by Vivid
package in December and a sweeping set of
Economics as part of the Finance for Biodiversity
Executive Orders since President Biden’s inaugura-
(F4B) initiative.
tion. Currently, a US$1.9 trillion package is making
its way through Congress. Biden has also pledged
If you have any questions or comments, please
to implement a US$1.7 trillion Climate Plan. This
contact us at xxxxxxxx@xxxxxxxxxxxxxx.xxx
report considers all of these developments. The
legislation and directives already passed raise the
GSI score from -53 to -17. Should the $1.9 trillion
Biden American Rescue Plan be signed into law in
its form as of 8 February 2021, the GSI score would
improve slightly to -15. Implementing the Biden
New to
Climate Plan would vault the United States’ score
to +58, launching the country from 15th to 2nd in
this release
our ranking (behind only Denmark and ahead of
This update of the index incorporates significant
the EU) and serving as a model for how invest-
new information that has become available since
ment-driven growth and regulatory change can
the previous release in December 2020, including
create jobs, improve productivity, reduce emissions
the latest announcements on stimulus flows,
and protect nature.
deregulation and environmental policies. It also
contains two features that spotlight the United
• Investigation of the United States Federal Reserve’s
States, including an analysis of the potential impact
corporate asset purchase programme reveals over
of President Joe Biden’s proposed $1.7 trillion
US$587 million being directed towards companies
Climate Plan, and a review of the effect on nature
at high risk of adversely affecting nature and climate,
and climate of the US Federal Reserve’s activities
including through greenhouse gas (GHG) emissions,
to stablise the economy. Altogether, this release
deforestation and plastic pollution – nearly 10% of
includes the following highlights:
its overall corporate bond purchases to date.
This GSI includes three special features on the
United States, including an analysis of bond-buy-
ing actions taken by the US Federal Reserve, the
potential impact of the Biden Climate Plan and
the impact of the Biden American Rescue Plan,
which is making its way through Congress at the
time of publication. December’s stimulus and
January’s Executive Orders raise the United States’
GSI score significantly. Biden’s $1.9 trillion Ameri-
can Rescue Plan would only slightly improve
further the score, as tackling climate change is not
its focus. However, analysis of Biden’s $1.7 trillion
Climate Plan would substantially strengthen the
country’s score. On the other hand, the United
States Federal Reserve’s corporate bond purchase
programme has allocated significant capital to
companies with high risk of contributing to
climate change, deforestation and plastic pollu-
tion. New analysis shows that the Fed has
acquired more than US$587 million in corporate
bonds from such companies, compared to overall
corporate bond purchases of approximately US$6
billion to date. Though less visible than govern-
ment fiscal stimulus, central bank actions like
these have meaningful capacity to reinforce
negative trends – or pave the way for greener
recoveries.
Emerging economies most dependent on envi-
Regardless of economic structure or past envi-
ronmentally-intensive sectors and without strong
ronmental performance, each country has the
regulatory oversight have the biggest task to
opportunity to steer its stimulus package to
turn their stimulus green, and have so far failed
support nature and the climate. Across
to step up. China, India and Mexico have
announcements to date, a clear set of tools is
announced stimulus measures that will damage
emerging to boost the economy in the short- and
the environment, while stimulus funding
long-term, while also accelerating the transition to
announced by South Africa and Russia largely
a more sustainable future. These tools fall into the
Executive reinforces the existing damaging impacts of their
following broad categories:
environmentally-intensive sectors. Indonesia and
Brazil are pushing environmentally damaging
• Corporate bailouts with green strings attached
summary outcomes, by supporting high-carbon industry
and energy, and unsustainable agriculture that
• Investment in nature-based solutions, such as
destroys biodiverse habitats. To manage the
tropical rainforest conservation and sustainable
COVID-19 crisis while protecting and rebuilding
agriculture
nature at the same time, these countries must
instead hardwire environmental actions into their
• Loans and grants for green investments
stimulus measures.
The world’s leading economies have announced
• Subsidies or tax reductions for green products,
economic stimulus packages that will pump
Argentina, Saudi Arabia and Turkey have made
and the removal of subsidies for polluters
approximately US$4.6 trillion directly into sectors
little attempt to divert stimulus towards green
that have a large and lasting impact on carbon
initiatives. Generally, their stimulus packages have
• Green R&D subsidies
emissions and nature, namely agriculture, indus-
underpinned existing poor environmental perfor-
try, waste, energy and transport, but less than
mance. Targeted measures have supported pollut-
• Reinforcing environmental regulation,
US$1.8 trillion has been green. These flows com-
ers in the Turkish transport sector, and non-renew-
and avoiding deregulation
pare with a total stimulus to date of US$14.9 trillion,
able energy in both Argentina and Saudi Arabia.
and present an opportunity to support these
sectors through the COVID-19 crisis, while also
The most recently added countries to the GSI –
boosting global resilience to mounting climate and
the five Nordic countries – have contrasting
biodiversity risks.
The Greenness of Stimulus Index
outcomes. Denmark leads the global league table
(GSI) shows that governments to date have
with a score of 78 and Sweden ranks 7th with a
largely failed to harness this opportunity, though
score of 21. These scores are largely due to their
a select few are rising to meet the challenge.
strong underlying baselines, as well as stimulus
measures that commit money to energy efficiency,
Announced stimulus to date will have a net nega-
green research and development (R&D), and a
tive environmental impact in 15 of the G20 coun-
dedicated nature and biodiversity allocation.
tries and economies, and in five of the ten other
Finland performs well with a GSI score of 18,
analysed countries. Despite achieving the largest
despite its underlying negative baseline, due in
increase in its score in this edition of the GSI, the
part to public transit measures, climate R&D
United States continues to lag behind other wealthy
investment and nature conservation. On the flip
nations. Australia, Italy and Japan join them on the
side, Iceland’s score is -33, driven by a poor
net negative side, owing largely to the support they
baseline and measures that prioritise unconditional
provide to existing environmentally-intensive sectors industry support over environmental protection.
with negative environmental impact, even though
Norway’s position is 25th, with a score of -67. While
their scores also improved in this edition due to
Norway introduced a Green Transition plan and
actions to restore nature and mitigate climate
accompanying measures, these were outweighed
change. The economies analysed comprised the
by its unconditional airline bailouts, support for the
G20 plus Colombia, Denmark, Finland, Iceland,
fossil fuel industry without any green strings
Norway, the Philippines, Singapore, Spain,
attached, and economic stimulus that perpetuated
Sweden and Switzerland.
its negative underlying baseline score.
Greenness
of Stimulus
3
Index
stimulus went to the business-as-usual economy.
In the green stimulus to date, nature and biodiversi-
New announcements from the United Kingdom
ty have been particularly neglected. Where large
include an end to fossil fuel support overseas,
green stimulus measures have been introduced, these strengthened emission reduction targets for
have largely focused on reducing carbon emissions,
2030 and accelerated net-zero pledges to 2045
with only occasional attention to preserving and
by regions representing about 30% of the
enhancing nature and natural capital. Of the total
country’s population.
quantified green stimulus to date, worth US$667
billion, only US$141 billion was related to improving
The world’s three most populous countries –
biodiversity or preserving ecosystems. Such
China, India and US – improved their GSI scores
nature-positive funding was less than the US$262
considerably, but still remain in the negative.
billion of stimulus associated with pollution or direct
China’s higher score is driven by a dramatic
habitat destruction that is likely to have a negative
planned increase in solar and wind capacity to
impact on biodiversity.1 Given the risks associated
1,200 GW (roughly equivalent to Europe’s entire
with degraded natural capital – including the virus
electricity system), and major forest restoration
spillover risk driving the current pandemic – it is hard
plans as part of its strengthened pledge to reduce
to justify this scant attention paid to nature protec-
its emissions intensity by 65% over 2005 levels
tion. Fewer than ten of the economies analysed have
by 2030. India announced battery production,
invested in so-called nature-based solutions (NBS),
renewable energy and energy efficiency schemes,
such as tree planting, forest protection and regenera-
though it continues to support coal and gas
tive agriculture. As shown in December’s edition of
initiatives. The United States’ US$900 billion
the GSI, this means that most countries are missing
stimulus that was passed in December 2020
out on stimulus opportunities that have outsized
strengthened its GSI score, but the majority
impacts in terms of job creation and fiscal multipliers.
of the spending was still dedicated to the
business-as-usual economy. It is President Biden’s
To date, the economic response to the COVID-19
signature on the Executive Order for Tackling the
crisis will reinforce negative environmental trends.
Climate Crisis at Home and Abroad that super-
In other words, it will fail to build back better:
charged the country’s score. It signalled strong
most governments have chosen not to use
action on nearly all environmentally relevant
economic stimulus to enhance nature or tackle
sectors and shows the power that even unquanti-
climate change. However, there is an opportunity
fied regulatory measures can have on the GSI.
to learn from countries that have taken the lead,
The United States’ score remains negative,
and act decisively now to prevent irreversible
however, which shows that further, greener
damage to nature and to lower dramatically the
legislation and ambitious regulatory action needs
cost of protecting the planet. In solving one crisis,
to be coupled with an even bigger low carbon
we should not ignore another.
investment package to move to a positive score.
The stimulus and policy announcements in
The ‘Next Generation EU’ recovery package is the
Canada, Western Europe and some Nordic
most environmentally friendly stimulus package.
countries offer promise, with at least a portion of
Of the €750 billion (US$830 billion) package, 37%
spending likely to be nature-friendly, coupled
will be directed towards green initiatives, including
with green infrastructure investments in energy
targeted measures to reduce dependence on fossil
and transport. Canada’s Healthy Environment and
fuels, enhance energy efficiency, and invest in
Healthy Economy Plan includes 64 new measures
preserving and restoring natural capital. Further-
that redraw its stimulus efforts and boost its GSI
more, all recovery loans and grants to member
score by 20 points. This increase is second only to
states will have attached ‘do no harm’ environ-
the United States and vaults Canada to third place
mental safeguards. The new French and Spanish
in the Index, just behind the European Union.
recovery plans both partly draw from this funding
Japan’s December package funded clean tech
pool, and as a result are among the most environ-
innovation, solar PV deployment, digitalisation and mentally friendly yet.
zero-emissions vehicle subsidies, though most
This GSI includes three special features on the
United States, including an analysis of bond-buy-
ing actions taken by the US Federal Reserve, the
potential impact of the Biden Climate Plan and
the impact of the Biden American Rescue Plan,
which is making its way through Congress at the
time of publication. December’s stimulus and
January’s Executive Orders raise the United States’
GSI score significantly. Biden’s $1.9 trillion Ameri-
can Rescue Plan would only slightly improve
further the score, as tackling climate change is not
its focus. However, analysis of Biden’s $1.7 trillion
Climate Plan would substantially strengthen the
country’s score. On the other hand, the United
States Federal Reserve’s corporate bond purchase
programme has allocated significant capital to
companies with high risk of contributing to
climate change, deforestation and plastic pollu-
tion. New analysis shows that the Fed has
acquired more than US$587 million in corporate
bonds from such companies, compared to overall
corporate bond purchases of approximately US$6
billion to date. Though less visible than govern-
ment fiscal stimulus, central bank actions like
these have meaningful capacity to reinforce
negative trends – or pave the way for greener
recoveries.
Emerging economies most dependent on envi-
Regardless of economic structure or past envi-
ronmentally-intensive sectors and without strong
ronmental performance, each country has the
regulatory oversight have the biggest task to
opportunity to steer its stimulus package to
turn their stimulus green, and have so far failed
support nature and the climate. Across
to step up. China, India and Mexico have
announcements to date, a clear set of tools is
announced stimulus measures that will damage
emerging to boost the economy in the short- and
the environment, while stimulus funding
long-term, while also accelerating the transition to
announced by South Africa and Russia largely
a more sustainable future. These tools fall into the
reinforces the existing damaging impacts of their
following broad categories:
environmentally-intensive sectors. Indonesia and
Brazil are pushing environmentally damaging
• Corporate bailouts with green strings attached
outcomes, by supporting high-carbon industry
and energy, and unsustainable agriculture that
• Investment in nature-based solutions, such as
destroys biodiverse habitats. To manage the
tropical rainforest conservation and sustainable
COVID-19 crisis while protecting and rebuilding
agriculture
nature at the same time, these countries must
instead hardwire environmental actions into their
• Loans and grants for green investments
stimulus measures.
The world’s leading economies have announced
• Subsidies or tax reductions for green products,
economic stimulus packages that will pump
Argentina, Saudi Arabia and Turkey have made
and the removal of subsidies for polluters
approximately US$4.6 trillion directly into sectors
little attempt to divert stimulus towards green
that have a large and lasting impact on carbon
initiatives. Generally, their stimulus packages have
• Green R&D subsidies
emissions and nature, namely agriculture, indus-
underpinned existing poor environmental perfor-
try, waste, energy and transport, but less than
mance. Targeted measures have supported pollut-
• Reinforcing environmental regulation,
US$1.8 trillion has been green. These flows com-
ers in the Turkish transport sector, and non-renew-
and avoiding deregulation
pare with a total stimulus to date of US$14.9 trillion,
able energy in both Argentina and Saudi Arabia.
and present an opportunity to support these
sectors through the COVID-19 crisis, while also
The most recently added countries to the GSI –
boosting global resilience to mounting climate and
the five Nordic countries – have contrasting
biodiversity risks.
The Greenness of Stimulus Index
outcomes. Denmark leads the global league table
(GSI) shows that governments to date have
with a score of 78 and Sweden ranks 7th with a
largely failed to harness this opportunity, though
score of 21. These scores are largely due to their
a select few are rising to meet the challenge.
strong underlying baselines, as well as stimulus
measures that commit money to energy efficiency,
Announced stimulus to date will have a net nega-
green research and development (R&D), and a
tive environmental impact in 15 of the G20 coun-
dedicated nature and biodiversity allocation.
tries and economies, and in five of the ten other
Finland performs well with a GSI score of 18,
analysed countries. Despite achieving the largest
despite its underlying negative baseline, due in
increase in its score in this edition of the GSI, the
part to public transit measures, climate R&D
United States continues to lag behind other wealthy
investment and nature conservation. On the flip
nations. Australia, Italy and Japan join them on the
side, Iceland’s score is -33, driven by a poor
net negative side, owing largely to the support they
baseline and measures that prioritise unconditional
provide to existing environmentally-intensive sectors industry support over environmental protection.
with negative environmental impact, even though
Norway’s position is 25th, with a score of -67. While
their scores also improved in this edition due to
Norway introduced a Green Transition plan and
actions to restore nature and mitigate climate
accompanying measures, these were outweighed
change. The economies analysed comprised the
by its unconditional airline bailouts, support for the
G20 plus Colombia, Denmark, Finland, Iceland,
fossil fuel industry without any green strings
Norway, the Philippines, Singapore, Spain,
attached, and economic stimulus that perpetuated
Sweden and Switzerland.
its negative underlying baseline score.
stimulus went to the business-as-usual economy.
In the green stimulus to date, nature and biodiversi-
New announcements from the United Kingdom
ty have been particularly neglected. Where large
include an end to fossil fuel support overseas,
green stimulus measures have been introduced, these strengthened emission reduction targets for
have largely focused on reducing carbon emissions,
2030 and accelerated net-zero pledges to 2045
with only occasional attention to preserving and
by regions representing about 30% of the
enhancing nature and natural capital. Of the total
country’s population.
quantified green stimulus to date, worth US$667
billion, only US$141 billion was related to improving
The world’s three most populous countries –
biodiversity or preserving ecosystems. Such
China, India and US – improved their GSI scores
nature-positive funding was less than the US$262
considerably, but still remain in the negative.
billion of stimulus associated with pollution or direct
China’s higher score is driven by a dramatic
habitat destruction that is likely to have a negative
planned increase in solar and wind capacity to
impact on biodiversity.1 Given the risks associated
1,200 GW (roughly equivalent to Europe’s entire
with degraded natural capital – including the virus
electricity system), and major forest restoration
spillover risk driving the current pandemic – it is hard
plans as part of its strengthened pledge to reduce
to justify this scant attention paid to nature protec-
its emissions intensity by 65% over 2005 levels
tion. Fewer than ten of the economies analysed have
by 2030. India announced battery production,
invested in so-called nature-based solutions (NBS),
renewable energy and energy efficiency schemes,
such as tree planting, forest protection and regenera-
though it continues to support coal and gas
tive agriculture. As shown in December’s edition of
initiatives. The United States’ US$900 billion
the GSI, this means that most countries are missing
stimulus that was passed in December 2020
out on stimulus opportunities that have outsized
strengthened its GSI score, but the majority
impacts in terms of job creation and fiscal multipliers.
of the spending was still dedicated to the
business-as-usual economy. It is President Biden’s
To date, the economic response to the COVID-19
signature on the Executive Order for Tackling the
crisis will reinforce negative environmental trends.
Climate Crisis at Home and Abroad that super-
In other words, it will fail to build back better:
charged the country’s score. It signalled strong
most governments have chosen not to use
action on nearly all environmentally relevant
economic stimulus to enhance nature or tackle
sectors and shows the power that even unquanti-
climate change. However, there is an opportunity
fied regulatory measures can have on the GSI.
to learn from countries that have taken the lead,
The United States’ score remains negative,
and act decisively now to prevent irreversible
however, which shows that further, greener
damage to nature and to lower dramatically the
legislation and ambitious regulatory action needs
cost of protecting the planet. In solving one crisis,
to be coupled with an even bigger low carbon
we should not ignore another.
investment package to move to a positive score.
The stimulus and policy announcements in
The ‘Next Generation EU’ recovery package is the
Canada, Western Europe and some Nordic
most environmentally friendly stimulus package.
countries offer promise, with at least a portion of
Of the €750 billion (US$830 billion) package, 37%
spending likely to be nature-friendly, coupled
will be directed towards green initiatives, including
with green infrastructure investments in energy
targeted measures to reduce dependence on fossil
and transport. Canada’s Healthy Environment and
fuels, enhance energy efficiency, and invest in
Healthy Economy Plan includes 64 new measures
preserving and restoring natural capital. Further-
that redraw its stimulus efforts and boost its GSI
more, all recovery loans and grants to member
score by 20 points. This increase is second only to
states will have attached ‘do no harm’ environ-
the United States and vaults Canada to third place
mental safeguards. The new French and Spanish
in the Index, just behind the European Union.
recovery plans both partly draw from this funding
Japan’s December package funded clean tech
pool, and as a result are among the most environ-
innovation, solar PV deployment, digitalisation and mentally friendly yet.
zero-emissions vehicle subsidies, though most
1 The $667 billion quantified green stimulus to date appears is bigger than the $262 billion quantified negative stimulus associated with pollution or direct
habitat destruction. But this is partly because the negative measures are coming in the form of deregulation or other unquantified measures, which have large
impacts but do not have a $ value attached to them.
Greenness
of Stimulus
4
Index
This GSI includes three special features on the
United States, including an analysis of bond-buy-
ing actions taken by the US Federal Reserve, the
potential impact of the Biden Climate Plan and
the impact of the Biden American Rescue Plan,
which is making its way through Congress at the
time of publication. December’s stimulus and
January’s Executive Orders raise the United States’
GSI score significantly. Biden’s $1.9 trillion Ameri-
can Rescue Plan would only slightly improve
further the score, as tackling climate change is not
its focus. However, analysis of Biden’s $1.7 trillion
Climate Plan would substantially strengthen the
country’s score. On the other hand, the United
States Federal Reserve’s corporate bond purchase
programme has allocated significant capital to
companies with high risk of contributing to
climate change, deforestation and plastic pollu-
tion. New analysis shows that the Fed has
acquired more than US$587 million in corporate
bonds from such companies, compared to overall
corporate bond purchases of approximately US$6
billion to date. Though less visible than govern-
ment fiscal stimulus, central bank actions like
these have meaningful capacity to reinforce
negative trends – or pave the way for greener
recoveries.
Emerging economies most dependent on envi-
Regardless of economic structure or past envi-
ronmentally-intensive sectors and without strong
ronmental performance, each country has the
regulatory oversight have the biggest task to
opportunity to steer its stimulus package to
turn their stimulus green, and have so far failed
support nature and the climate. Across
to step up. China, India and Mexico have
announcements to date, a clear set of tools is
announced stimulus measures that will damage
emerging to boost the economy in the short- and
the environment, while stimulus funding
long-term, while also accelerating the transition to
announced by South Africa and Russia largely
a more sustainable future. These tools fall into the
reinforces the existing damaging impacts of their
following broad categories:
environmentally-intensive sectors. Indonesia and
Brazil are pushing environmentally damaging
• Corporate bailouts with green strings attached
outcomes, by supporting high-carbon industry
and energy, and unsustainable agriculture that
• Investment in nature-based solutions, such as
destroys biodiverse habitats. To manage the
tropical rainforest conservation and sustainable
COVID-19 crisis while protecting and rebuilding
agriculture
nature at the same time, these countries must
instead hardwire environmental actions into their
• Loans and grants for green investments
stimulus measures.
The world’s leading economies have announced
• Subsidies or tax reductions for green products,
economic stimulus packages that will pump
Argentina, Saudi Arabia and Turkey have made
and the removal of subsidies for polluters
approximately US$4.6 trillion directly into sectors
little attempt to divert stimulus towards green
that have a large and lasting impact on carbon
initiatives. Generally, their stimulus packages have
• Green R&D subsidies
emissions and nature, namely agriculture, indus-
underpinned existing poor environmental perfor-
try, waste, energy and transport, but less than
mance. Targeted measures have supported pollut-
• Reinforcing environmental regulation,
US$1.8 trillion has been green. These flows com-
ers in the Turkish transport sector, and non-renew-
and avoiding deregulation
pare with a total stimulus to date of US$14.9 trillion,
able energy in both Argentina and Saudi Arabia.
and present an opportunity to support these
sectors through the COVID-19 crisis, while also
The most recently added countries to the GSI –
boosting global resilience to mounting climate and
the five Nordic countries – have contrasting
biodiversity risks.
The Greenness of Stimulus Index
outcomes. Denmark leads the global league table
(GSI) shows that governments to date have
with a score of 78 and Sweden ranks 7th with a
largely failed to harness this opportunity, though
score of 21. These scores are largely due to their
Greenness
a select few are rising to meet the challenge.
strong underlying baselines, as well as stimulus
of Stimulus
5
measures that commit money to energy efficiency,
Index
Announced stimulus to date will have a net nega-
green research and development (R&D), and a
tive environmental impact in 15 of the G20 coun-
dedicated nature and biodiversity allocation.
tries and economies, and in five of the ten other
Finland performs well with a GSI score of 18,
analysed countries. Despite achieving the largest
despite its underlying negative baseline, due in
increase in its score in this edition of the GSI, the
part to public transit measures, climate R&D
United States continues to lag behind other wealthy
investment and nature conservation. On the flip
nations. Australia, Italy and Japan join them on the
side, Iceland’s score is -33, driven by a poor
net negative side, owing largely to the support they
baseline and measures that prioritise unconditional
provide to existing environmentally-intensive sectors industry support over environmental protection.
with negative environmental impact, even though
Norway’s position is 25th, with a score of -67. While
their scores also improved in this edition due to
Norway introduced a Green Transition plan and
actions to restore nature and mitigate climate
accompanying measures, these were outweighed
change. The economies analysed comprised the
by its unconditional airline bailouts, support for the
G20 plus Colombia, Denmark, Finland, Iceland,
fossil fuel industry without any green strings
Norway, the Philippines, Singapore, Spain,
attached, and economic stimulus that perpetuated
Sweden and Switzerland.
its negative underlying baseline score.
stimulus went to the business-as-usual economy.
In the green stimulus to date, nature and biodiversi-
New announcements from the United Kingdom
ty have been particularly neglected. Where large
include an end to fossil fuel support overseas,
green stimulus measures have been introduced, these strengthened emission reduction targets for
have largely focused on reducing carbon emissions,
2030 and accelerated net-zero pledges to 2045
with only occasional attention to preserving and
by regions representing about 30% of the
enhancing nature and natural capital. Of the total
country’s population.
quantified green stimulus to date, worth US$667
billion, only US$141 billion was related to improving
The world’s three most populous countries –
biodiversity or preserving ecosystems. Such
China, India and US – improved their GSI scores
nature-positive funding was less than the US$262
considerably, but still remain in the negative.
billion of stimulus associated with pollution or direct
China’s higher score is driven by a dramatic
habitat destruction that is likely to have a negative
planned increase in solar and wind capacity to
impact on biodiversity.1 Given the risks associated
1,200 GW (roughly equivalent to Europe’s entire
with degraded natural capital – including the virus
electricity system), and major forest restoration
spillover risk driving the current pandemic – it is hard
plans as part of its strengthened pledge to reduce
to justify this scant attention paid to nature protec-
its emissions intensity by 65% over 2005 levels
tion. Fewer than ten of the economies analysed have
by 2030. India announced battery production,
invested in so-called nature-based solutions (NBS),
renewable energy and energy efficiency schemes,
such as tree planting, forest protection and regenera-
though it continues to support coal and gas
tive agriculture. As shown in December’s edition of
initiatives. The United States’ US$900 billion
the GSI, this means that most countries are missing
stimulus that was passed in December 2020
out on stimulus opportunities that have outsized
strengthened its GSI score, but the majority
impacts in terms of job creation and fiscal multipliers.
of the spending was still dedicated to the
business-as-usual economy. It is President Biden’s
To date, the economic response to the COVID-19
signature on the Executive Order for Tackling the
crisis will reinforce negative environmental trends.
Climate Crisis at Home and Abroad that super-
In other words, it will fail to build back better:
charged the country’s score. It signalled strong
most governments have chosen not to use
action on nearly all environmentally relevant
economic stimulus to enhance nature or tackle
sectors and shows the power that even unquanti-
climate change. However, there is an opportunity
fied regulatory measures can have on the GSI.
to learn from countries that have taken the lead,
The United States’ score remains negative,
and act decisively now to prevent irreversible
however, which shows that further, greener
damage to nature and to lower dramatically the
legislation and ambitious regulatory action needs
cost of protecting the planet. In solving one crisis,
to be coupled with an even bigger low carbon
we should not ignore another.
investment package to move to a positive score.
The stimulus and policy announcements in
The ‘Next Generation EU’ recovery package is the
Canada, Western Europe and some Nordic
most environmentally friendly stimulus package.
countries offer promise, with at least a portion of
Of the €750 billion (US$830 billion) package, 37%
spending likely to be nature-friendly, coupled
will be directed towards green initiatives, including
with green infrastructure investments in energy
targeted measures to reduce dependence on fossil
and transport. Canada’s Healthy Environment and
fuels, enhance energy efficiency, and invest in
Healthy Economy Plan includes 64 new measures
preserving and restoring natural capital. Further-
that redraw its stimulus efforts and boost its GSI
more, all recovery loans and grants to member
score by 20 points. This increase is second only to
states will have attached ‘do no harm’ environ-
the United States and vaults Canada to third place
mental safeguards. The new French and Spanish
in the Index, just behind the European Union.
recovery plans both partly draw from this funding
Japan’s December package funded clean tech
pool, and as a result are among the most environ-
innovation, solar PV deployment, digitalisation and mentally friendly yet.
zero-emissions vehicle subsidies, though most
This GSI includes three special features on the
United States, including an analysis of bond-buy-
ing actions taken by the US Federal Reserve, the
potential impact of the Biden Climate Plan and
the impact of the Biden American Rescue Plan,
which is making its way through Congress at the
time of publication. December’s stimulus and
January’s Executive Orders raise the United States’
GSI score significantly. Biden’s $1.9 trillion Ameri-
can Rescue Plan would only slightly improve
further the score, as tackling climate change is not
its focus. However, analysis of Biden’s $1.7 trillion
Climate Plan would substantially strengthen the
country’s score. On the other hand, the United
States Federal Reserve’s corporate bond purchase
programme has allocated significant capital to
companies with high risk of contributing to
climate change, deforestation and plastic pollu-
tion. New analysis shows that the Fed has
acquired more than US$587 million in corporate
bonds from such companies, compared to overall
corporate bond purchases of approximately US$6
billion to date. Though less visible than govern-
ment fiscal stimulus, central bank actions like
these have meaningful capacity to reinforce
negative trends – or pave the way for greener
recoveries.
Emerging economies most dependent on envi-
Regardless of economic structure or past envi-
ronmentally-intensive sectors and without strong
ronmental performance, each country has the
regulatory oversight have the biggest task to
opportunity to steer its stimulus package to
turn their stimulus green, and have so far failed
support nature and the climate. Across
to step up. China, India and Mexico have
announcements to date, a clear set of tools is
announced stimulus measures that will damage
emerging to boost the economy in the short- and
the environment, while stimulus funding
long-term, while also accelerating the transition to
announced by South Africa and Russia largely
a more sustainable future. These tools fall into the
reinforces the existing damaging impacts of their
following broad categories:
environmentally-intensive sectors. Indonesia and
Brazil are pushing environmentally damaging
• Corporate bailouts with green strings attached
outcomes, by supporting high-carbon industry
and energy, and unsustainable agriculture that
• Investment in nature-based solutions, such as
destroys biodiverse habitats. To manage the
tropical rainforest conservation and sustainable
COVID-19 crisis while protecting and rebuilding
agriculture
nature at the same time, these countries must
instead hardwire environmental actions into their
• Loans and grants for green investments
stimulus measures.
The world’s leading economies have announced
• Subsidies or tax reductions for green products,
economic stimulus packages that will pump
Argentina, Saudi Arabia and Turkey have made
and the removal of subsidies for polluters
approximately US$4.6 trillion directly into sectors
little attempt to divert stimulus towards green
that have a large and lasting impact on carbon
initiatives. Generally, their stimulus packages have
• Green R&D subsidies
emissions and nature, namely agriculture, indus-
underpinned existing poor environmental perfor-
try, waste, energy and transport, but less than
mance. Targeted measures have supported pollut-
• Reinforcing environmental regulation,
US$1.8 trillion has been green. These flows com-
ers in the Turkish transport sector, and non-renew-
and avoiding deregulation
pare with a total stimulus to date of US$14.9 trillion,
able energy in both Argentina and Saudi Arabia.
and present an opportunity to support these
sectors through the COVID-19 crisis, while also
The most recently added countries to the GSI –
boosting global resilience to mounting climate and
the five Nordic countries – have contrasting
biodiversity risks.
The Greenness of Stimulus Index
outcomes. Denmark leads the global league table
(GSI) shows that governments to date have
with a score of 78 and Sweden ranks 7th with a
largely failed to harness this opportunity, though
score of 21. These scores are largely due to their
a select few are rising to meet the challenge.
strong underlying baselines, as well as stimulus
measures that commit money to energy efficiency,
Announced stimulus to date will have a net nega-
green research and development (R&D), and a
tive environmental impact in 15 of the G20 coun-
dedicated nature and biodiversity allocation.
tries and economies, and in five of the ten other
Finland performs well with a GSI score of 18,
analysed countries. Despite achieving the largest
despite its underlying negative baseline, due in
increase in its score in this edition of the GSI, the
part to public transit measures, climate R&D
United States continues to lag behind other wealthy
investment and nature conservation. On the flip
nations. Australia, Italy and Japan join them on the
side, Iceland’s score is -33, driven by a poor
net negative side, owing largely to the support they
baseline and measures that prioritise unconditional
provide to existing environmentally-intensive sectors industry support over environmental protection.
with negative environmental impact, even though
Norway’s position is 25th, with a score of -67. While
their scores also improved in this edition due to
Norway introduced a Green Transition plan and
actions to restore nature and mitigate climate
accompanying measures, these were outweighed
change. The economies analysed comprised the
by its unconditional airline bailouts, support for the
G20 plus Colombia, Denmark, Finland, Iceland,
fossil fuel industry without any green strings
Norway, the Philippines, Singapore, Spain,
attached, and economic stimulus that perpetuated
Sweden and Switzerland.
its negative underlying baseline score.
Figure 1 Greenness of Stimulus Index
100
80
60
40
20
0
y
e
UK
-20
erland
anc
eden
Fr
witz
Spain
opean
Italy
German
S
w
Union
Japan
S
Eur
Denmark
-40
stimulus went to the business-as-usual economy.
alia
tr
Finland
In the green stimulus to date, nature and biodiversi-
New announcements from the United Kingdom
azil
ea
us
A
or
ty have been particularly neglected. Where large
include an end to fossil fuel support overseas,
-60
Br
South
K
green stimulus measures have been introduced, these strengthened emission reduction targets for
frica
SA
South
A
U
have largely focused on reducing carbon emissions,
2030 and accelerated net-zero pledges to 2045
o
olombia
Canada
-80
e
C
eland
y
with only occasional attention to preserving and
by regions representing about 30% of the
xic
a
gentina
Ic
Me
India
enhancing nature and natural capital. Of the total
country’s population.
rkey
abia
Ar
u
Saudi
Ar
China
Norw
quantified green stimulus to date, worth US$667
-100
T
Indonesia
Singapor
sia
billion, only US$141 billion was related to improving
The world’s three most populous countries –
Philippines
Rus
biodiversity or preserving ecosystems. Such
China, India and US – improved their GSI scores
nature-positive funding was less than the US$262
considerably, but still remain in the negative.
Positive Contribution
Negative Contribution
Index
billion of stimulus associated with pollution or direct
China’s higher score is driven by a dramatic
habitat destruction that is likely to have a negative
planned increase in solar and wind capacity to
impact on biodiversity.1 Given the risks associated
1,200 GW (roughly equivalent to Europe’s entire
Source: Vivid Economics using a variety of sources, consult Annex II for the entire list of sources
with degraded natural capital – including the virus
electricity system), and major forest restoration
Note: Updated on 1 February 2021
spillover risk driving the current pandemic – it is hard
plans as part of its strengthened pledge to reduce
to justify this scant attention paid to nature protec-
its emissions intensity by 65% over 2005 levels
Greenness
tion. Fewer than ten of the economies analysed have
by 2030. India announced battery production,
of Stimulus
6
invested in so-called nature-based solutions (NBS),
renewable energy and energy efficiency schemes,
Index
such as tree planting, forest protection and regenera-
though it continues to support coal and gas
tive agriculture. As shown in December’s edition of
initiatives. The United States’ US$900 billion
the GSI, this means that most countries are missing
stimulus that was passed in December 2020
out on stimulus opportunities that have outsized
strengthened its GSI score, but the majority
impacts in terms of job creation and fiscal multipliers.
of the spending was still dedicated to the
business-as-usual economy. It is President Biden’s
To date, the economic response to the COVID-19
signature on the Executive Order for Tackling the
crisis will reinforce negative environmental trends.
Climate Crisis at Home and Abroad that super-
In other words, it will fail to build back better:
charged the country’s score. It signalled strong
most governments have chosen not to use
action on nearly all environmentally relevant
economic stimulus to enhance nature or tackle
sectors and shows the power that even unquanti-
climate change. However, there is an opportunity
fied regulatory measures can have on the GSI.
to learn from countries that have taken the lead,
The United States’ score remains negative,
and act decisively now to prevent irreversible
however, which shows that further, greener
damage to nature and to lower dramatically the
legislation and ambitious regulatory action needs
cost of protecting the planet. In solving one crisis,
to be coupled with an even bigger low carbon
we should not ignore another.
investment package to move to a positive score.
The stimulus and policy announcements in
The ‘Next Generation EU’ recovery package is the
Canada, Western Europe and some Nordic
most environmentally friendly stimulus package.
countries offer promise, with at least a portion of
Of the €750 billion (US$830 billion) package, 37%
spending likely to be nature-friendly, coupled
will be directed towards green initiatives, including
with green infrastructure investments in energy
targeted measures to reduce dependence on fossil
and transport. Canada’s Healthy Environment and
fuels, enhance energy efficiency, and invest in
Healthy Economy Plan includes 64 new measures
preserving and restoring natural capital. Further-
that redraw its stimulus efforts and boost its GSI
more, all recovery loans and grants to member
score by 20 points. This increase is second only to
states will have attached ‘do no harm’ environ-
the United States and vaults Canada to third place
mental safeguards. The new French and Spanish
in the Index, just behind the European Union.
recovery plans both partly draw from this funding
Japan’s December package funded clean tech
pool, and as a result are among the most environ-
innovation, solar PV deployment, digitalisation and mentally friendly yet.
zero-emissions vehicle subsidies, though most
Announced
Stimulus Packages
The world has witnessed unprecedented government financial interventions in response to COVID-19.
Stimulus packages announced to date include a range of fiscal mechanisms such as bailouts and loans.
For the countries that we have analysed, current stimulus packages vary from US$8 billion (Colombia)
to US$3.9 trillion (the United States).
Figure 2 Announced COVID-19 response
fiscal stimulus package
)
4500
4000
3500
3000
2.500
2.000
timulus (US$ Billions
1.500
1.000
500
Total Fiscal S
0
y
e
ea
sia
e
ay
o
USA
UK
or
azil
alia
eden
frica
abia
xic
Japan
China
anc
Italy
India
tr
Fr
Spain
Br
eland
us
Rus
Turkey
erland
Sw
Finland gentina
Me
German
Canada
A
Norw
Singapor Indonesia
Denmark
Ar
PhilippinesColombia
Ic
opean Union
South K
Switz
South A Saudi Ar
Eur
Source: Vivid Economics using IMF COVID-19 response tracker and other sources.
Note: Dark blue represents G20 countries and light blue represents countries outside of the G20. Updated on 1 February 2021.
Governments have rightly put people first in
projects such as tree planting are shovel-ready,
the immediate aftermath of the crisis – putting
easily scaled, and provide overwhelmingly local,
money directly into people’s pockets, and
socially distanced jobs at various skill levels.
helping those on the frontline. Specifically,
they have sought to secure employment; provide
Some US$4.6 trillion of the announced stimulus
cash benefits to workers, households and the
to date, or 31% of the total, will flow into
unemployed; and supply liquidity to businesses
environmentally-intensive sectors that impact
across economies.
climate change, biodiversity or local air quality.2 This proportion will likely increase as stimulus
At the same time, governments have the oppor-
efforts shift towards targets for long-term recov-
tunity to use this massive stimulus to shift course
ery. This massive funding can both address the
towards a cleaner, greener, safer and fairer
COVID-19 crisis, by improving public health, job
economy, to create jobs and start to reverse
security and fiscal stability, and boost environmen-
climate change and restore nature.
tal sustainability. Transport and industry are two
For example, investment in clean energy and
sectors that have been hit hard by the crisis, are
transport is preferable to supporting fossil fuel
receiving substantial government support, and
assets that are likely to be stranded in the near
also have a large environmental impact, where
term as a result of climate action including rising
economic stimulus can be directed towards
carbon prices. Meanwhile, green infrastructure
clean energy and low carbon development.
2 In defining the amount of stimulus flowing through to sectors with a high environmental impact,
Greenness
the index has removed any measures which are purely devised to provide income support to workers
(e.g. furlough or paycheck protection programmes). In some cases, insufficient information was available.
7
of Stimulus
Index
Figure 3
Sum of global fiscal stimulus policies
of countries considered in our analysis
US$4.6
trillion
Environmentally
relevant stimulus
Non-environmentally
relevant stimulus
US$10.3
trillion
Agriculture, industry, waste,
energy and transport are the
sectors considered to have
most environmental relevance.
This categorisation is based
on environmental outcomes
including carbon emissions.
Source: Vivid Economics using a variety of sources
Note: Environmentally relevant total in dark blue. Agriculture includes forestry and fisheries.
Industry includes manufacturing. Updated on 1 February 2021.
Greenness
8
of Stimulus
Index
The sectoral breakdown of environmentally relevant stimulus shows that industry gets the most
support from governments, among these five sectors, followed by transport and energy.
This breakdown has remained relatively constant over time, and reflects the relative sizes of the sectors
and the COVID-19 crisis impact.
Figure 4
Breakdown of environmentally relevant stimulus
of the 30 countries tracked (EU not included)
Source: Vivid Economics
Note: For developing countries, support for energy and waste is included within industry. The European Union is
excluded from this chart. Singapore and the Philippines are omitted due to sizing constraints. Updated 1 February 2021.
Greenness
9
of Stimulus
Index
Green Stimulus Toolkit:
Archetypal Green Measures
Hundreds of policies have been announced worldwide, but only some deliver both environmental and
economic benefits. Below is a toolkit of measures that governments can use to shape the future environ-
mental impact of their economic stimulus for the better, based on analysis of actual measures announced
to date (more details are provided in Annex I).
• Corporate bailouts with green strings attached:
the cost of adoption upfront by expanding
Some governments view bailouts as public invest-
cash-for-clunker programmes, and ratcheting
ments that deliver public benefits. While these
up or extending the period of funds available for
bailouts must clearly deliver immediate benefits
rebates on EVs. Other transport sector subsidies
in terms of stability of public services, employment
could cover electric bicycles, regular bicycles and
and supply chains, they can also secure a transition
public mass transit passes. In the energy sector,
to sustainable and resilient growth. Bailouts can
rebates or subsidies can be made available to
achieve this by making public support contingent
households that install solar panels or choose
upon implementing specific environmental improve-
to purchase electricity from a renewable energy
ments to operations and procurement, such as
provider, including tariff adjustments, coverage
reducing their carbon and biodiversity footprint, or
of capital cost, or income-qualifying eligibility for
by committing to high-integrity environmental
residential solar. In the industry sector, products
offsets, enhanced nature-related financial disclo-
which meet voluntary performance standards
sures, and increased supply chain transparency.
could be made eligible for tax rebates, including
The agreements with Austrian Airlines and Air
home appliances and lighting.
France demonstrate how governments and corpo-
• Green R&D subsidies: Government green R&D
rations can meet on common ground.
subsidies are most prevalent in the transport and
• Investment in nature-based solutions and
energy sectors, to boost innovation in electric
sustainable agriculture: Land use investments –
vehicle development and deployment, electric
such as afforestation of degraded land, sustaina-
batteries, hydrogen vehicles, and low-carbon fuel
ble agricultural practices, wildfire prevention
alternatives. Government grants to research
infrastructure, urban greening infrastructure like
institutions or private R&D firms in the energy
parks, and efficient water irrigation systems – are
sector include investments in solar, wind, battery
ideally suited to tackle the ongoing crisis because
storage, and hydrogen technologies. R&D subsi-
they can be shovel-ready, are transitional, provide
dies to industry and agriculture include grant
stimulus to particularly vulnerable and local
funding for the development of low-water use and
populations, and are resilient to future lockdowns,
drought resistance crops, as well as carbon
i.e. can be socially distanced.
capture and storage (CCS) and energy efficiency
• Loans and grants for green investments:
technologies in chemicals, cement, and steel.
Direct investment, in the form of loans or grants,
• Reinforcing environmental regulation and
can be made to improve sustainable agriculture;
avoiding deregulation: Although not a traditional
build low-carbon energy including solar, wind,
stimulus measure, regulation and deregulation
biofuels and hydrogen; in energy efficient retrofits
have been a focus area for the COVID-19 response.
in the construction sector; and in active transport
Environmental deregulation has been used as a
infrastructure or electric vehicle infrastructure in
stimulus measure in some countries, on the basis
the transport sector.
that this relieves regulatory burdens for business-
• Subsidies or tax reductions for green products:
es. However, others have reinforced environmental
Tax reductions or rebates are available most
regulation, for example introducing wildlife trading
broadly across countries in the transport sector,
bans, and proposing to expand the coverage of
for example to boost electric vehicle (EV) adop-
the EU Emissions Trading Scheme (EU ETS) to
tion by offering consumer refunds, or subsidising
other sectors.
The country notes in Annex II include a tracker of the positive and negative archetype policies that
each country has implemented so far. These both highlight the key drivers of a country’s index score,
and identify gaps in current measures that can be used to pave the way for future stimulus measures.
Greenness
10
of Stimulus
Index
The Greenness
of Stimulus
Index
The Greenness of Stimulus Index examines 30 economies to assess the environmental orientation of
their stimulus funding based on:
the total stimulus
the existing green orienta-
the green
funds flowing into
tion of those sectors, such
orientation of
environmentally-in-
as the share of renewables
new stimulus
tensive sectors;
in the energy sector; and
measures.
To date, much of this stimulus funding is set to
Fewer efforts have been made to improve environ-
flow into existing sectors with no attempt to look mental sustainability, particularly in the initial
forward and support their medium- and
COVID-19 rescue response. Where governments
long-term sustainability and resilience. There is
have looked to support green initiatives, they have
therefore significant scope for governments to
tended to do so through infrastructure invest-
pivot towards a green recovery.
ments, particularly in the energy and transport
sectors. We find that three of the G20 economies
In countries with inadequate existing climate and have no green aspect to their stimulus at all,
biodiversity policies, stimulus flows are likely to
namely Saudi Arabia, Russia and South Africa.
reinforce unsustainable trajectories of high
emissions and loss of nature. All countries have
Overall, we note that the greenness of stimulus
entered this crisis with large sectors of their
is improving slightly over time, especially in
economies still producing significant greenhouse
developed countries. The United States, Canada,
gas emissions and air and water pollution, and
China and India achieved substantial improve-
causing loss of biodiversity. Many countries also
ments in their index scores, with the United
lack concrete policies to facilitate a green transi-
Kingdom, Australia, Brazil, Italy and Japan achiev-
tion in those sectors. As a result, current stimulus
ing modest improvements (see Figure 8). While
into those sectors risks reinforcing a status quo
most countries are yet to take the opportunity
that is significantly tilted toward negative environ-
to use their stimulus packages to kick-start green
mental outcomes, amplifying risks to people and
recoveries, some countries made significant green
planet in the near- and long-term.
announcements since the last GSI edition, result-
ing in substantial changes in index scores.
Where targeted efforts have attempted to steer
funding, these have more often tilted towards
environmentally damaging outcomes, although
a few have added green incentives.
The most notable examples of COVID-19
response measures that target environmental-
ly-intensive sectors include significant dereg-
ulation, subsidies or tax cuts to activities
likely to worsen environmental outcomes,
including large bailouts for the aviation sector.
Greenness
11
of Stimulus
Index
Greenness of Stimulus Index:
Figure 5
G20 economies plus the Nordic countries,
Colombia, Switzerland, Spain, Singapore and the Philippines
100
80
60
40
20
0
y
e
UK
-20
erland
anc
eden
Fr
witz
Spain
opean
Italy
German
S
w
Union
Japan
S
Eur
Denmark
-40
alia
tr
Finland
azil
ea
us
A
or
-60
Br
South
K
frica
SA
South
A
U
o
olombia
Canada
-80
e
C
eland
y
xic
a
gentina
Ic
Me
India
rkey
abia
Ar
u
Saudi
Ar
China
Norw
-100
T
Indonesia
Singapor
sia
Philippines
Rus
Positive Contribution
Negative Contribution
Index
CHN
IDN
USA
RUS
IND
MEX
ZAF
BRA
AUS
CAN
ITA
JAP
SPA
KOR
GER
GBR
FRA
EU
SGP
PHL
ARG
CHE
COL
FIN
NOR
DEN
ISL
SWE
Agriculture
Energy
Industry
Transport
Waste
Agriculture
Energy
Industry
Transport
Waste
Source: Vivid Economics using a variety of sources. Consult Annex II for the entire list of sources.
Note: Updated on 1 February 2021.
The historic election of President Joe Biden signals major change in the geopolitics of climate change
and the likely orientation of the United States’ future stimulus. This edition of the GSI integrates the
latest changes in the country’s spending and policy, including the US$900 billion spending bill signed
by former President Donald Trump in December 2020, and the impact of the sweeping Executive Orders
passed in January 2021 by the new President Joe Biden. It also features an analysis of transformative
potential impact of Biden’s US$1.7 trillion Climate Plan (see Box 1 below), Biden’s US$1.9 trillion American
Rescue Plan (see Box 2 below), as well as the negative impacts of measures being taken by the United
States Federal Reserve (see Box 3).
Greenness
12
of Stimulus
Index
Box 1
Biden’s $1.7 trillion Climate Plan would supercharge
the United States’ already strengthened position
Joe Biden was inaugurated in January 2021 as the 46th President of the United States following a
pivotal election that included a promise to invest $1.7 trillion in a Climate Plan for Clean Energy and
Environmental Justice. The Democrats now control both Houses of Congress following their successful
Senate runoff races in Georgia, meaning that the Climate Plan is guaranteed to get legislative attention
and has a better chance of mustering enough support to be passed into law.
This signals a major change from the previous administration as the United States renews its interna-
tional engagement through the Paris Accord and brings more muscular spending power. The change
of administration represents a monumental shift in the geopolitics of climate change and potentially
challenges the European Union’s diplomatic dominance. It also strengthens the United States’ competi-
tive position in clean tech innovation and could reshape the international league table, which has been
led by China and the European Union for the past four years. John Kerry, the new United States envoy
on climate change and a leading architect of the Paris Accord under President Obama, described
climate action as an “unprecedented wealth creation opportunity.”
Biden’s proposed US$1.7 trillion Climate Plan would build on the sweeping Executive Order signed on 27th
January. The Executive Order
Tackling the Climate Crisis at Home and Abroad sets the policy and institutional
frameworks for future action. It puts the climate crisis at the heart of the United States’ foreign policy and
national security, creating a Special Presidential Envoy for Climate and pledging to integrate climate considera-
tions into all leading international fora, including the G7, G20, and bodies for energy, aviation, shipping and
sustainable development. Domestically, it implements global best practice by establishing an intra-governmental
National Climate Task Force to coordinate a government-wide response to the climate crisis. The Order leverages
the power of public procurement to facilitate a carbon-free electricity sector by 2035 and zero-emissions
vehicles. It includes action on climate-smart agriculture, fisheries, and reforestation to protect biodiversity, and
aims to conserve 30% of the country’s land and water by 2030. It removes federal subsidies for fossil fuels and
directs agencies to identify opportunities to spur innovation, commercialisation, and deployment of clean energy
technologies and infrastructure. The Executive Order underpins all action with a focus on well-paying jobs, and
commits to a just transition that supports economic opportunity for disadvantaged communities.
Biden’s Climate Plan would see America’s GSI score leap from -17 to +58. Its GSI score was already
strengthened following the passage of the US$900 billion bipartisan stimulus bill in late December 2020. That stimulus included US$35 billion in clean energy, building energy efficiency measures, investments in
electric vehicle infrastructure and support for carbon capture and storage technologies. The score was
further strengthened by the Executive Order outlined above. But the huge proposed green stimulus invest-
ment would push the GSI score to +58, ahead of the European Union and behind only the small country of
Denmark. These investments would be directed into renewable energy, public transit, electric vehicles and
reforestation, upgrading and increasing climate resiliency for millions of homes over four years, investing in
clean tech innovation, public transit, electric vehicle infrastructure, agriculture and conservation. The change
in score from full implementation of the Climate Plan is shown below.
Figure 6 Change in United States score associated with the Climate Plan
150
100
50
0
- 50
- 100
Brown contribution
Green contribution
Index
Note: Updated on 8 February 2021.
Source: Vivid Economics using a variety of sources. Consult Annex II for the entire list of sources.
The Biden Plan proposes to invest US$1.7 trillion over ten years. The GSI focuses on near-term stimulus
measures, so the expenditure has been scaled to thirty percent of its original value, reflecting three years of
investment to remain consistent with the timelines of other included stimulus measures. As the Plan is
translated into quantified policies, the index will be updated accordingly.
The plan is bold and well-funded. It serves as a model for how COVID-19 stimulus can be used to radically
improve a country’s environmental trajectory.
Box 2
Biden’s $1.9 trillion American Rescue Plan does not target climate
changeand biodiversity issues, but would still slightly improve the US score
The US$1.9 trillion American Rescue Plan is targeted towards general economic recovery.
The stimulus package focuses on mounting a national vaccination programme, containing COVID-19, safely
reopen schools, supporting struggling communities and delivering immediate relief to working families.
However, some funding within the plan is found to be environmentally beneficial.
For example, it includes a $20 billion investment in public transport and the creation of a set-aside
fund for states to invest in projects to improve energy efficiency.
If fully implemented in its form as of 8 February 2021, the plan would slightly improve the United
States GSI score from -17 to -15.
Nature has been particularly neglected in stimulus funding. Of the 31% of all stimulus that we consider
to be environmentally relevant, more than US$262 billion of specific (quantified) stimulus measures will
likely have an adverse effect on nature, compared with only US$141 billion that will likely have a directly
positive effect (see Figure 6). This is before taking into account non-quantified stimulus measures, of
which the vast majority are negative, such as environmental deregulation and reduced fees for polluters.
Examples of nature-positive stimulus measures include India’s afforestation programme, the conservation
component of South Korea’s New Deal, China’s wildlife trade ban, and the announced Great American
Outdoors Act. These are outweighed by policies such as Brazil’s decreased oversight of Amazon
deforestation, Canada’s rollback of environmental protection regulations for oil and gas exploration,
and China’s approval of new coal mine projects.
Figure 6 Allocation of stimulus to nature
300
250
)
200
150
timulus (US$ Billions
100
50
Quantity of S
0
Stimulus with a beneficial effect on nature
Stimulus with a harmful effect on nature
Source: Vivid Economics
Note: Updated 1 February 2021
Greenness
14
of Stimulus
Index
Drilling down into individual countries, while the
China has a relatively poor environmental perfor-
United States’ score significantly improved
mance baseline, which means its stimulus efforts will
following the US$900 billion December 2020
largely reinforce a negative trajectory unless concert-
stimulus package and Biden’s Executive Order, its
ed effort is made to avoid this. In response to COV-
score remains negative, meaning that its stimulus
ID-19, the government relaxed environmental report-
continues to do more harm than good. Decem-
ing in key sectors such as transport and industry,
ber’s green stimulus measures included US$14
streamlined permits for coal mining, and extended
billion for public transit, over US$10 billion in
subsidies for fossil fuel vehicles. The government has,
nuclear power, US$7 billion in clean energy and
however, introduced a number of positive measures,
solar solutions, US$6.7 billion in carbon capture
including substantial support for electric vehicles and
technologies and US$1.7 billion in building efficien-
EV infrastructure, a decision to ban trading of specific
cy improvements. But US$17 billion in unconditional
wildlife species, and support for China’s Green
support for airlines and airports, plus environmental Development Fund. China has also supported build-
deregulation and unconditional support payments
ing renovation, and announced substantial support
to the private sector interacted with the country’s
for railway infrastructure investment. While these
negative baseline and weakened the bill’s impact.
investments are a promising attempt by the Chinese
government to divert stimulus towards green invest-
China’s score improved due to stricter emission
ments, much further action is required to overcome
reduction targets and ambitions for massive
the negative impact of unconditional stimulus support
renewable energy deployment, but its overall
to China’s existing, environmentally-intensive indus-
negative score means that its stimulus does more
tries. Additionally, future plans to build new fossil fuel
harm than good, and sends negative signals across infrastructure as part of China’s upcoming ‘five-year
developing countries in Asia and further afield, not plan’ will not help China raise its score nor achieve its
least through its ‘Belt and Road Initiative’.
recent pledge of carbon neutrality by 2060.
Figure 8
GSI score and total size of fiscal stimulus:
G20 economies plus Spain, Philippines and Singapore
100
80
Denmark
60
x
Canada
European Comission
40
France
Sweden
UK
Spain
20
Finland
Germany
timulus Inde
Switerland
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Italy
s of S
South Korea
Japan
-20
USA
India
Brazil
Iceland
eennes
-40
Gr
China
Argentina
-60
Indonesia
Norway
Turkey
-80
Russia
-100
Quantity of Stimulus (US$ Billions)
Source: Vivid Economics using IMF Policy Tracker and other sources
Note: Updated 1 February 2021
Greenness
15
of Stimulus
Index
India’s overall stimulus mainly supports environmental-
earlier measures, but has also made pledges to
ly-intensive industry and energy activities, but its most
develop renewable energy, a strategic move in a
recent stimulus measures were two-thirds green,
country that has faced frequent energy shortages.
pushing up its GSI score. India announced roughly
US$3 billion in battery development and solar PV.
Similarly, Argentina, Saudi Arabia and Turkey are
Previous announcements included funding for afforesta-
directing a significant proportion of their stimulus
tion and some support for solar power. But India contin-
packages towards polluting industries. All three have
ues to be hostage to coal, with fresh loans to a number
a poor baseline environmental performance, and have
of thermal power producers and a large proportion of
made little attempt to steer new funding towards
total stimulus directed at environmentally-intensive
‘green’ initiatives, preferring more polluting energy
industries. A reduction in the stringency of environmental
companies, and failing to apply environmental condi-
monitoring and the approval of environmentally harmful
tions to such support.
projects further undermines a green recovery. Some
hope for a greener recovery has come, however, in the
Italy, Australia, and Japan have slightly negative GSI
form of rail initiatives and investments into solar energy.
scores, although recent activities have improved the
scores of all three countries. Australia announced a
Indonesia and Brazil are major agricultural commodity
broad suite of relatively small policies around electric
producers with a track record of lax environmental
vehicles, renewable energy, energy efficiency and
policies causing significant forest degradation, and
hydrogen production. Italy is supporting public transit
negative biodiversity and ecosystem impacts. Their
and subsidies for efficient vehicles. Japan’s package in
agriculture sectors remain on a trajectory of high emis-
December 2020 funded clean tech innovation, solar PV
sions intensity, and significant habitat and biodiversity
deployment, digitalisation and zero-emissions vehicle
destruction. Since the last update, Brazil announced a
subsidies, though directed significant funding to the
major green bond issuance and financing for wind
business-as-usual economy. These three countries
projects and wind blade manufacturing sites, boosting
benefit from a better historical (pre-COVID-19)
its score. But it remains negative, in part because Brazil
environmental performance than some G20 econo-
has historically struggled to enforce forest and land use
mies, but are still channelling funds into polluting
policies, a situation worsened under its COVID-19
activities. They are yet to take robust measures to
response as a result of a Presidential decree relaxing
ensure that their stimulus will boost the long-term
land use permits and enforcement. Indonesia too initially
sustainability and resilience of their economies.
loosened its permitting restrictions for timber producers,
but has since reversed this measure. Most recently,
Canada, France and the United Kingdom have consist-
Indonesia passed an omnibus bill that critics warn caters
ently introduced green packages and attached ‘green’
to industrial and resource development at the expense of
conditions to bailouts of environmentally intensive
the environment, including recentralising permitting,
industries, steadily raising their scores and landing
limiting public participation in environmental assess-
them in third, fourth and fifth position respectively.
ments, and scrapping some environmental permitting
Canada’s score improved dramatically, second only to
altogether. These changes decreased Indonesia’s GSI
the United States, and following another major improve-
score. This adds to previous laws deregulating the mining
ment in the December edition of the GSI. Canada
industry, and subsidising state-owned oil and gas and
announced a wide-ranging Healthy Environment and
electricity companies and airlines. While Indonesia’s
Healthy Economy Plan that covered energy efficiency
recent 2021 infrastructure budget says it will support
investments in homes and large buildings, incentives for
sustainable, labour-intensive infrastructure develop-
zero-emissions vehicles, investments in electric vehicle
ments, the overall impact on the environment is unclear.
charging infrastructure and public transit, and invest-
ments in smart grids and clean energy. It commits to
Russia, Mexico and South Africa are major fossil fuel
raising the price of carbon, investing in net zero innova-
energy producers, and their response to COVID-19
tion, zero-emissions fuels, and commits to reducing
has reinforced their historical negative environmen-
methane emissions from the oil and gas sector. It seeks
tal performance. Russia relies heavily on its oil and gas emissions reductions from agriculture and fertilisers, and
sector for exports and overall economic output, and its announces a major tree planting investments and nature
response to COVID-19 has supported the sector
restoration initiatives. Together with the Fall Economic
further. Removing tax relief on fossil fuel extraction
Statement, Canada has gone from a negative GSI score
and refining pushed its score up slightly, though this
in October 2020 to third place, ranking just behind the
measure is intended to raise revenues rather than
European Union. This demonstrates that strong environ-
reduce emissions. Russia continues to subsidise energy mental stimulus measures can overcome even poor
and industry without green conditions or targeted low
underlying baseline performance. The United Kingdom
carbon investments, resulting in a very low GSI rank-
strengthened domestic GHG reduction targets and
ing. Mexico has previously announced energy sector
withdrew financial support for overseas fossil fuel
funding with unconditional support for the refining
sectors, boosting its score. France introduced new
industry and various polluting energy and transport
regulation banning gas heating in new homes, and
infrastructure projects. South Africa deferred carbon
previously introduced measures directly supporting
tax payments and relaxed environmental regulations in a green transition through its new recovery act.
Figure 9
Current and first release (24th April 2020) GSI scores
100
80
60
x
40
20
timulus Inde
R
P
S
PA
S
EU
KO
JA
AU
ITA
s of S
0
I
L
E
AU
SA
FIN
UK
RUS
TUR
S
SGP
ICE
NOR
MEX
PHL
IDN
ARG
CHN
CO
ZAF
IND
BRA
U
SW
GER
SW
FRA
CAN
DEN
-20
eennes
Gr
-40
-60
-80
Current GSI score
April GSI score
-100
Source: Vivid Economics
Note: Since the GSI’s first release in April 2020, the methodology for calculating a country’s underlying environmental impact
has been refined. This chart applies this updated methodology to calculate the current and initial GSI scores. 1 February 2021.
Greenness
of Stimulus
17
Index
Germany, South Korea and Spain have also
Spain and France have already taken advantage of
implemented specific green projects, but have
this package, allocating their shares of it towards
not moved much recently. Germany announced
recovery acts with significantly positive environ-
a tax on fuels for heating and gas, which built on
mental targets. Although approved support for
its earlier stimulus package worth around US$45
the EU’s Just Transition Fund, Rural Development
billion for a variety of measures to support the
and Sustainable Infrastructure Fund (InvestEU)
green transition, particularly in the energy and
was smaller than initially proposed, targeted
transport sectors. South Korea’s score is stable
environmental support is much larger than that
following the announcement of the ‘New Deal’ in
announced by individual governments. As a result,
the summer of 2020, which included substantial
the European Union achieves the highest index
funding for electric and hydrogen vehicles,
score. It is critical that EU member states fulfil the
renewable energy and energy efficiency over the
aims of the stimulus, by using these grants and
next five years. The US$63 billion in green
loans to achieve the dual purpose of economic
funding was equivalent to 19% of the country’s
recovery and environmental sustainability.
total stimulus. Spain announced a pair of Royal
decrees to guarantee the viability of public
Finally, the role of central banks in COVID-19
transport and ease access to grid connection
recovery, and the (potential) impact of their
permits for renewables.
operations on a green recovery has been largely
neglected, but could be substantial.
The European Union’s stimulus package has the
most promising prospective environmental impact,
and is already leading to member state improve-
ments. The US$830 billion (€750 billion) ‘Next
Generation EU’ recovery package includes a variety
of green measures aimed at supporting the ‘Europe-
an Green Deal’. Specific measures include steps to
improve the sustainability of agriculture, funding for
renewable energy, and support for electric vehicle
sales and infrastructure. Financial support to
member states is also expected to be accompanied
by ‘do no harm’ environmental conditions.
Greenness
18
of Stimulus
Index
Box 3
Fed purchases revealed to have adverse environmental impact
Though the fiscal response to COVID-19 has
financing those activities and lowering the cost of
consumed the lion’s share of attention and
capital for the companies that undertake them. In
scrutiny, central banks have also played a signifi-
this fresh analysis, we examine the environmental
cant role in response to the crisis. Following their
impact of the response by the United States
core mandates of maintaining monetary and
Federal Reserve through its Secondary Market
financial stability, central banks have propped up
Corporate Credit Facility (SMCCF).
faltering investment and demand through a
variety of tools. They have lowered interest rates,
Through the SMCCF, the Fed purchased corpo-
extended credit to commercial banks and
rate bonds for the first time, 10% of which were
businesses, and in many cases established new
issued by companies at high risk of adversely
corporate asset purchase programmes. The latter,
affecting nature and climate. We cross-reference
as a form of quantitative easing, purchases
the corporate asset purchases reported by the
corporate bonds to improve liquidity in the market
Fed with databases identifying the worst corpo-
and lower the cost of borrowing. Much like fiscal
rate offenders in terms of GHG emissions, risk of
stimulus programmes, central bank asset purchas-
tropical deforestation, and plastic pollution. To the
es are likely to have sizeable indirect impacts on
end of 2020, roughly US$587 million in corporate
climate and nature. By purchasing corporate
bonds have been purchased from these high-risk
bonds from companies that have an adverse effect companies, or around 10% of all transactions made
on climate and nature, central banks are indirectly
through the SMCCF.
Figure 10 Secondary Market Corporate Credit Facility Purchases
350000000
300000000
250000000
200000000
chase $USD
150000000
ur
Bond P
100000000
50000000
Carbon-Intensive
High Deforestation Risk
Plastic-Intensive
Note: Updated on 8 February 2021.
Note: Vivid Economics using a variety of sources. Consult Annex II for the entire list of sources.
Greenness
19
of Stimulus
Index
10 of the world’s 100 largest emitters have
Overall, much more is required to kick-start a
received US$154 million in funding through the
truly green recovery. Progress has been made
SMCCF, or about 3% of all purchases. The 10
through the United States’ stimulus and policy
companies - Apache, Chevron, ConocoPhilips,
ambition, Canada’s detailed and wide-ranging
EOG Resources, ExxonMobil, Glencore, Hess,
investments and policies, China’s significant
Marathon Petroleum, Noble Energy and British
policy announcements, India’s green-tinted
Petroleum - emitted roughly 60,000 MtCO e from
stimulus spending, Japan’s support for clean
2
1988 to 2015, or 6.7% of global industrial GHG for
energy and digitalisation, and the European
that time period.
Union’s strong stimulus package. Nevertheless,
specific green measures comprise only a small
The companies and their emissions were identified
proportion of stimulus to date in the countries
through CDP’s Carbon Majors report, which details
analysed. Even Germany’s US$45 billion ‘Package
the cumulative Scope 1 and Scope 3 emissions of
for the Future’ only accounts for around 3% of its
the world’s 100 biggest emitters from 1988 to
total fiscal stimulus. Governments are expected
2015.3 Even beyond the top 100, numerous oil and
to continue to announce substantial recovery
gas companies not in the CDP majors list received
packages in the coming months, which will
funding from the Fed, indicating that our reported
present ongoing and critical opportunities to
figure is an underestimate of the total carbon-inten-
support a ‘green’ recovery.
sive purchases made by the Fed.
23 companies at high risk of contributing to
tropical deforestation received a total of US$306
3 CDP (2017). https://www.cdp.net/en/articles/media/new-re-
port-shows-just-100-companies-are-source-of-over-70-of-emissions
million from the SMCCF, roughly 5% of total
4 Forest 500 (2020). https://forest500.org/about/how-do-we-rank-500
5 Break Free From Plastic (2019). https://www.breakfreefromplas-
purchases. These include well-known brands such
tic.org/wp-content/uploads/2020/07/branded-2019.pdf
as Home Depot, Hershey and Walmart.
The companies were identified through the Forest
500, which “identifies and ranks the most influen-
tial companies and financial institutions in forest
risk commodity supply chains.” Companies are
selected for inclusion in the list based on two
criteria: risk of being linked to tropical deforesta-
tion, and influence within the political economy of
tropical deforestation. After inclusion, companies
are scored out of 100, based on “overarching
cross-commodity zero deforestation commit-
ments, commodity-specific policies, as well as the
scope of commitments and whether progress is
reported transparently.” For this analysis, we
designated companies with scores below 50 as
having high deforestation risk (lower scores
represent higher risk).4
11 of the 200 largest plastic polluters received
a total of US$241 million from the Fed, which
is just shy of 5% of all SMCCF purchases.
This includes brands like Starbucks, Coca Cola,
Philip Morris and PepsiCo.
The companies were identified based on waste
data from Break Free From Plastic’s Brand Audit.
The Audit took a global sample of plastic waste in
over 50 countries and analysed which companies
were responsible for the largest shares of waste.5
The 11 companies identified in the Fed’s asset
purchases accounted for more than 10% of the
total plastic collected that could be attributed to a
brand. This suggests this group is likely to be
responsible for a significant portion of the world’s
plastic waste.
Greenness
20
of Stimulus
Index
Annex I
Methodology
The index is constructed by combining the flow
• B is a scaled indicator from -1 to 1 which rates
of stimulus into five key sectors with an indicator
sectors by level of overall greenness from most
of each sector’s environmental impact, the latter
pro-environmental at 1 to least environmental at
accounting for both historical trends and specific
-1. The B value differentiates between underly-
measures taken under the country’s stimulus.
ing sector context (b ) and specific environmen-
1
The impact indicator assigns a greenness value
tal measures (b ). b refers to our baseline
2
1
(positive or negative) to each sector for every
evaluation of each country using ‘off the shelf’
country based on the methodology discussed
environmental indicators.7 This captures the
below. The overall GSI is an indicator of the total
country’s underlying environmental performance.
fiscal spending in response to COVID-19 catego-
This includes an evaluation of its rating on
rised as either a positive or negative impact on
multiple environmental performance indicators,
the environment. The final index for each country
and the overall country’s climate target progres-
is an average of sectoral impact, normalised to a
sion. b is a consideration of any COVID-19
2
scale of -1 to 1. The five sectors are chosen for their response-specific data we have found that either
historical impact on climate and environment:
supports or undermines the baseline value.
agriculture, energy, industry, waste and transport.
It takes a negative value if stimulus support
boosts harmful activities without regard to
An estimated 30% of overall total G20 stimulus
environmental targets or deregulates to roll back
funding will flow through these sectors.6 Despite
environmental conditions. It takes a positive value
some targeted stimulus measures to support
if stimulus support advances pro-environmental
environmental improvements, overall flows into
programmes or includes conditions on environ-
these sectors of interest remain harmful because
mental performance (for more information on
of their historical performance. To date, a relatively composition of b , see further on in this Annex).
2
small magnitude of stimulus measures contain
Both quantified stimulus measures (e.g. an
clear pro-environmental conditions. A majority
amount of funding designated for a certain
of fiscal stimulus measures currently passed and
project) and unquantified stimulus measures
likely to flow to environmentally-intensive sectors
(e.g. rollbacks of environmental regulations that
do not have an explicit focus on climate change
would theoretically reduce compliance costs for
and environmental goals.
firms) can contribute to b values (see specific
2
b section below for more detail).
2
Two components of the stimulus were analysed:
the size of the fiscal flow (F value) to each
• Each environment-specific stimulus measure
environmentally-intensive sector, and the overall
is categorised against positive and negative
impact of that stimulus on climate and environ-
archetype interventions. Table 1 and Table 2
ment (B value).
describe these policy archetypes respectively.
6 This figure comes from totalling all fiscal spending by countries in our analysis and categorising the flows by sector. This value is the percentage of
estimated and actual flows going into the above environmentally-relevant sectors across all countries in our analysis. Our estimate is above recently
published work, including Hepburn et. al’s estimate of 8% of total funding having either a positive or negative environmental impact. [Hepburn, C.
O’Callaghan, B., Stern, N., Stiglitz, J., Zenghelis, D. (2020). Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change? Oxford
Smith School of Enterprise and the Environment, Working Paper No. 20-02 ISSN 2732-4214]. We believe our figure is larger given our analysis is only of
recovery stimulus and not long-term fiscal measures that may be introduced in the medium- and long- term.
7 Key indicators used for the construction of baseline performance are the Climate Action Tracker (https://climateactiontracker.org/countries/), Environmen-
tal Performance Index (https://epi.yale.edu/), and Germanwatch Climate Change Performance Index (https://germanwatch.org/en/CCPI).
Greenness
21
of Stimulus
Index
Table 1
Summary of positive policy archetypes
Sector
Archetype
Description
Bailouts with green strings
Requiring limits to emissions or waste in return for
attached
direct funding.
Nature-based solutions
Afforestation and reforestation programmes, restora-
Agriculture
tion of wetlands, or forest management investments.
Loan and grants for green
Direct loans or tax rebates and subsidies, e.g. for
investments
high-efficiency water irrigation systems.
Conservation and wildlife
Making the sale of endangered animals illegal.
protection programmes
Bailouts with green strings
Direct loans and guarantees for oil, gas and coal with
attached
commitments for improvement on emissions or
energy efficiency.
Energy
Loan and grants for green
Direct investment in the form of loans or grants
investments
towards renewable energy including solar, wind,
biofuels and hydrogen.
Green R&D subsidies
Grants for research institutes, academic institutes,
and private firms to develop new renewable energy
technologies and systems.
Subsidies or tax reductions
Extending tax rebates to households for rooftop solar,
for green products
or making green energy products including utility tariffs
with renewable targets available at a subsidised cost.
Bailouts with green strings
Conditions on firms relating to emissions, pollution,
attached
supply chain requirements, or compliance with
voluntary agreements or reporting standards.
Loan and grants for green
Low carbon or low emissions public infrastructure
investments
including CCS projects for industry, energy efficiency
programmes for existing buildings, investment in the
hydrogen economy and electrification of industry.
Industry
Green R&D subsidies
Direct grants or loans available to research institu-
tions, academic institutions, and private firms to
develop low-carbon industrial technologies such as
CCS, hydrogen, and electrification.
Subsidies or tax reductions
Taxes for the use of primary materials in supply
for green products
chain, subsidies offered to firms that ensure compli-
ance in their supply chains.
Greenness
22
of Stimulus
Index
Table 1
Summary of positive policy archetypes (cont.)
Sector
Archetype
Description
Bailouts with green strings
Conditional bailouts to air carriers, car manufactur-
attached
ers, or shipping for emissions reduction pledges or
commitment to use biofuel or renewable fuel stand-
ards in exchange for loans.
Loan and grants for green
Building public infrastructure projects including
investments
cycleways, low-carbon rail or other mass transit,
public walkways, and railroads with consideration
Transport
towards climate mitigation and adaptation.
Green R&D subsidies
Loans or research grants available to academic
institutions, research centres, think tanks and private
firms to develop electric vehicles, hydrogen vehicles,
and low-carbon fuel alternatives for shipping,
aviation and vehicle transport.
Subsidies or tax reductions
Tax rebates available to consumers for EVs, subsidies
for green products
for low carbon transportation including light rail,
developing HOV lanes or low-emission zones fees.
Bailouts with green strings
Tying bailouts to commitments to shift from waste
attached
incineration to more sustainable waste management
strategies.
Loan and grants for green
Direct investment in recycling, Municipal Solid Waste,
investments
waste-to-energy, or methane recapture on existing
facilities or new waste management facilities.
Green R&D subsidies
Loans or grants for academic institutions, research
centres, think tanks, or private firms for the develop-
Waste
ment of advanced waste management include
waste-to-energy and methane recapture technologies.
Subsidies or tax reductions
Tax reductions or rebates for recycling, composting
for green products
including buy-back programmes or subsidisation of
environmental producer responsibility (EPR)
programmes.
Source: Vivid Economics
Note: Definition includes examples but may include additional and alternative programmes.
Greenness
23
of Stimulus
Index
Table 2
Summary of negative policy archetypes
Sector
Archetype
Description
Subsidies or waived fees for
Waiving, reducing, or directly subsidizing fees for
environmentally harmful
point and non-point source pollution in agriculture,
activities
logging, and timber. Removal of conservation or
preservation laws around forest management and
access.
Deregulation of environmen-
Removing, repealing, increasing the quantity of
tal standards
pollutants allowed or extending the compliance
Agriculture
period for pollution, emissions, or land use change in
agriculture and forestry sectors.
Environmentally related
Removing, repealing, increasing the quantity of pollutants
bailout without green strings
allowed or extending the compliance period for pollution,
emissions, or land use change in agriculture and forestry sectors.
Subsidies or tax reductions
Introducing subsidies for high emissions agricultural
for environmentally harmful
products including cattle and sheep, reducing existing
products
carbon taxes or environmental taxes on high-impact
agriculture and harvested wood products.
Subsidies or waived fees for
Subsidising utilities, producers, or developers of oil
environmentally harmful
and gas or coal production plants, covering the cost
activities
of pollution taxes including carbon taxes, delaying
the development or deployment of emissions taxes
for energy producers.
Environmentally harmful
Direct investment in coal or oil and gas sector, or
infrastructure investments
loans, grants and guarantees made available to
private firms exclusively to build oil and gas or coal
Energy
production plants.
Deregulation of environmen-
Removal or elimination of carbon trading schemes,
tal standards
increasing the cap on emissions or pollution trading
schemes, decreasing the number of firms required to
participate in emissions trading schemes, removing
mandates for environmental reporting or disclosure,
suspending enforcement of environmental regulation.
Environmentally related
Extending loans, grants, guarantees, or other financ-
bailout without green strings
ing to oil and gas or coal producers without condi-
tions on emissions intensity, emissions output, or
energy mix.
Subsidies or tax reductions
Subsidies for consumers or producers of oil and gas
for environmentally harmful
and coal including diesel, home electricity, and utilities
products
and reducing existing fuel taxes or carbon taxes.
Subsidies or waived fees for
Waiving permitting and environmentally-related fees for
environmentally harmful activities
mining, construction or other heavy industrial sectors.
Environmentally harmful
Direct government investment in high emissions
Industry
infrastructure investments
public infrastructure including factories, data
centres, and non-energy efficient building stock or
heating systems
Deregulation of environmen-
Removal of reporting or mandatory disclosure of
tal standards
environmental impacts by industrial firms, suspen-
sion of enforcement of environmental laws and
regulations, removal of permit or use requirements
for industry, fast-tracking of environmentally inten-
sive industrial project development by removing
environmental assessments.
Table 2
Summary of negative policy archetypes (cont.)
Sector
Archetype
Description
Environmentally related
Direct unconditional support through grants, loans,
bailout without green strings
guarantees, or other financial mechanisms to
high-emissions industrial sectors without require-
Industry
ments for efficiency, energy use, or reporting
improvements.
Subsidies or tax reductions
Reducing taxes on environmentally intensive prod-
for environmentally harmful
ucts including manufactured goods and chemicals
products
which have a high environmental impact.
Subsidies or waived fees for
Direct subsidisation of combustion engines made
environmentally harmful
available to consumers or producers, removal or
activities
reduction of the fees related to tailpipe emissions or
fuel taxes.
Environmentally harmful
Direct government investment into infrastructure
infrastructure investments
supporting polluting transport, such as airports
or roads.
Transport
Deregulation of environmen-
Removal of regulations governing the transport
tal standards
sector, such as for ships and aviation and largely
relating to emissions.
Environmentally related
Direct unconditional support through grants, loans,
bailout without green strings
guarantees, or other financial mechanisms to high
emissions transport providers, such as airlines.
Subsidies or tax reductions
Reducing taxes on the sale of high-polluting prod-
for environmentally harmful
ucts such as automobiles, with no preferential
products
treatment of ‘green’ alternatives such as electric
vehicles.
Subsidies or waived fees for
The removal of fees relating to the environmentally
environmentally harmful
harmful disposal or treatment of waste.
activities
Waste
Environmentally harmful
Investments into waste infrastructure that does not
infrastructure investments
improve the environmental impact of waste disposal
or treatment.
Deregulation of environmen-
Removal of regulations governing the disposal
tal standards
and/or treatment of waste.
Environmentally related
Extending bailouts to waste industries which openly
bailout without green strings
incinerate or do not use methane recapture, or other
advanced waste management systems without
requirements for meeting environmental reporting
standards.
Source: Vivid Economics
Note: Definition includes examples but may include additional and alternative programmes.
Greenness
25
of Stimulus
Index
The b score is calculated based on the environmental impact of the policy archetype
2
and a specific assessment of the stimulus measure, based on its intensity and coverage:
Instensity
Each measure is rated on intensity from 1 to 5, with one as the least intense and five as the most intense.
The impacts on the environment may be intense in either positive or negative trajectories. Intensity
depends on three components: the irreversibility of environmental damage or gain, the concentration or
diffusion of impact on environmental and natural systems, and the level of lock-in to either positive or
negative development resulting from the policy.
An example of an intense negative policy (5)
An example of a somewhat intense green policy
is direct investment in new coal or oil/gas
(3) is a subsidy for electric vehicles. The avoided
technologies. These projects directly emit
emissions by using EV reduce the amount of
carbon into the atmosphere, causing irreversi-
irreversible emissions in the atmosphere. Using
ble damage. Pollution from these projects
electricity instead of oil avoids direct air pollution.
disperses into the air becoming a global
EV uptake encourages increased adoption
externality. Coal and oil and gas assets lock in
through positive externalities associated with a
countries to environmentally harmful trajecto-
network of ownership, encouraging more uptake
ries and risk becoming stranded assets.
and subsequently a green lock-in effect.
An example of a less intense negative policy (1) is a temporary fee suspension
for environmentally harmful activities, but subsequently resuming fee collection.
Coverage
The coverage of a quantified stimulus measure is determined by the monetary size of the policy, on a
scale from 1 to 5, with 1 as the least amount of coverage and 5 the highest. For instance, if a country
passed two policies with the same intensity score (for example one policy allocating funds to solar
energy, and another to wind energy), then the policy with a larger budget would have a larger impact on
the sector score and thus on the final index score. The coverage of an unquantified measure is rated by
level of directness, the number of subsectors or individual firms in a sector that will be impacted, and the
temporal coverage (how far into the future will this positive or negative policy exist).
An example of a high coverage
An example of a moderate coverage
negative policy (5) is the suspen-
green policy (3) is a ban on wildlife trade.
sion of all environmental regulations
A ban on wildlife trade is a permanent
on industry. Removing the monitor-
change in policy and is likely to have
ing, enforcement and compliance of
positive impacts on the specific species
environmental standards would
no longer traded, and indirectly on other
extend coverage to all firms in the
species that share that habitat. The wildlife
sector, having both direct effects and
ban will not affect parts of the agriculture
indirect effects.
and forestry sector.
An example of a low coverage green policy (1) is a climate-related financial disclosure
requirement for firms generating a certain quantity of revenue. Requiring firms that have
revenue over US$100 million or another equivalent excludes many small- and medium-sized
firms, resulting in a policy with incomplete sectoral coverage.
Greenness
26
of Stimulus
Index
Annex II
Country notes
These notes describe the underlying numbers that are driving the index score for each country.
The notes and the index are updated regularly as more information on the recovery packages becomes available.
1.1 Argentina
Argentina has passed US$32 billion in fiscal stimulus measures.8
Composition of stimulus: Argentina’s stimulus package, equivalent to about 6% of the country’s GDP, includes:
increased health spending specifically to combat the virus; support for workers and vulnerable groups through
cash transfers to poor families and minimum wage workers; unemployment and social security benefits;
support for certain hard-hit sectors; government spending on public works; continued utility services to homes
unable to pay for services; and various credit guarantees.
Argentina’s index score is driven by poor underlying environmental performance, exacerbated by some
environmentally damaging stimulus measures.
Table 3 Archetype policies announced in Argentina
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature-Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
Note: Green = positive archetype announced in sector, red = negative measure announced in sector, grey =
archetype not applicable for sector.
8 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
Greenness
27
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• Decree 488 provided support for oil
producers by fixing the price of a barrel of
oil, freezing internal taxes, cutting export
taxes and prohibiting the import of foreign
fossil fuels.9
• The government also made a small
(US$540,000) commitment to promote the
use of solar energy technologies within
agro-fishery activities.10
• The National Supplier Development
Program provides a line of credit with non-re-
imbursable contributions for up to 70% of the
project for suppliers in strategic energy and
mining sectors.11 While this programme will
provide some funding for renewable energy
projects, it has an negative impact overall due
to the majority of the funds being made
available for oil and gas, non-renewable
energy and mining projects.12
9 Official Bulletin of Argentina (2020). https://www.boletinoficial.gob.ar/detalleAviso/primera/229470/20200519. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/argentina/
10 Argentinian Ministry of Agriculture, Livestock and Fisheries (2020). https://www.magyp.gob.ar/fondosambientales/. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/argentina/
11 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/argentina/
12 Boletín Oficial de la República Argentina (2020). https://www.boletinoficial.gob.ar/detalleAviso/primera/234817/20200910
Greenness
28
of Stimulus
Index
1.2 Australia
Australia to date has passed US$188 billion in total fiscal support.13
Composition of stimulus: Australia’s fiscal package includes specific health spending, support for house-
holds and workers, and specific measures for businesses. A large proportion of the Australian stimulus
package is directed at the ‘JobKeeper’ programme, which has been extended until March 2021. The Austral-
ian government has announced specific support for Australian airlines and airports. Other measures to
protect businesses have been applied in the industry, transport, energy and agriculture sectors. Territorial
governments have announced a number of measures that could have environmental impacts, particularly
in the energy sector, although these tend to be relatively small compared with total fiscal spending.
Australia has announced a mix of policies, which, combined with its insufficient underlying environmen-
tal progress, results in a negative index score. However, continued investment in the clean energy sector
by territorial governments has increased Australia’s score in this update as well as the previous one.
Table 4 Archetype policies announced in Australia
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
13 IMF Policy Tracker (20210). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19, Australian Treasury (2020).
https://treasury.gov.au/sites/default/files/2020-05/Overview-Economic_Response_to_the_Coronavirus_3.pdf
Greenness
29
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• A partial suspension of permitting and
• However, some specific green support has
licensing fees was applied in the oil, gas and
been announced, particularly in the energy
mining sectors in South Australia.14 The govern-
sector. Hydrogen has received funding
ment announced in April 2020 that licensing
through three channels. The Advanced
fees and annual petroleum fees will not be due
Hydrogen Fund has committed US$189
until December 2020.15 This is a harmful policy
million,24 the Australian Renewable Energy
given it explicitly extends relief to fossil fuel
Agency is providing US$44 million,25 and the
firms without conditions for environmental
Tasmanian renewable hydrogen action plan
performance. Given that this is only a regional
commits to further support.26 The Northern
measure, the policy rollback does not impose
Territory government has announced the
as large a negative weight as a national-level
procurement of a large-scale battery energy
rollback. The subnational endorsement of these
storage system for the Darwin-Katherine
sectors without green conditions is in contradic-
power network.27 In Queensland, more than
tion to Australia’s pledge to reduce emissions.
US$400 million has been invested into
renewable energy zones28, while around
• The Australian government is supporting
US$70 million has been directed at renewable
the airline industry by extending US$437
energy zones in New South Wales. In Western
million in loans and tax deferrals without
Australia, the ‘Wheatbelt Recovery Plan’
green conditions.16 Because airlines are a high
provides support for the Clean Energy Future
emissions subsector in transport, this policy
Fund and the Native Vegetation Rehabilita-
imposes a negative weight on the sector.
tion Scheme, while the Esperance recovery
plan includes around US$12 million for renew-
• The suspension of conservation laws in the
able technologies.29
logging industry for the next decade by the
State of Victoria is a direct deregulatory
• Territorial governments have continued to
measure in agriculture and forestry.17 While it
lead the way on a green recovery, particularly
is not a law imposed across the entire coun-
in the energy sector. The government of
try, the repeal of this legislation places natural
Victoria has made a US$523 million invest-
forests at risk of logging.18 This suspension is
ment in energy efficiency measures for
a part of the Regional Forestry Agreement
homes30, and US$371 million to develop six
that was reaffirmed during the COVID-19
renewable energy zones31. South Australia
crisis, which exempts loggers from compli-
invested US$60 million into energy efficiency
ance with certain federal conservation laws,
for government buildings,32 and perhaps most
including the Environmental Protection
impressively, New South Wales unveiled an
Biodiversity Conservation Act.19
‘Electricity Infrastructure Roadmap’ that could
attract up to US$24 billion in private invest-
• Other damaging measures include the open-
ment to replace ageing fossil infrastructure
ing up of 7,000 square km of land for coal and
with a cleaner, more efficient system.33 South
gas exploration,20 and the introduction of
Australia has invested in a green transporta-
exploration grants,21 both in Queensland, as well
tion sector, allocating US$12 million to an
as the development of the onshore gas industry
electric vehicle action plan.34
in the Northern Territory.22 In New South Wales,
funding of an undisclosed amount has also been
committed to provide a coal-fired power plant23.
14 Climate Change News (2020). https://www.climatechangenews.com/2020/04/20/coronavirus-governments-bail-airlines-oil-gas/
15 APPEA (2020). https://www.appea.com.au/media_release/sa-supports-exploration-amid-covid-19-challenges/
16 Australian Treasury (2020). https://treasury.gov.au/sites/default/files/2020-05/Overview-Economic_Response_to_the_Coronavirus_3.pdf
17 Drilled News (2020). https://www.drillednews.com/post/the-climate-covid-19-policy-tracker
18 Monga Bay (2020). https://news.mongabay.com/2020/05/australias-logging-madness-fuels-more-fires-hastens-ecosystem-collapse/
19 The Guardian (2020). https://www.theguardian.com/environment/2020/apr/17/polluter-bailouts-and-lobbying-during-covid-19-pandemic
20 ABC (2020). https://www.abc.net.au/news/2020-05-07/queensland-coal-and-gas-exploration-coronavirus/12220636
21 Queensland Government (2020).
https://www.business.qld.gov.au/industries/mining-energy-water/resources/geoscience-information/exploration-incentives/exploration-grants
22 Northern Territory Government (2020). http://newsroom.nt.gov.au/mediaRelease/33259
23 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/australia
24 Thomson Reuters Foundation (2020). https://news.trust.org/item/20200504013347-5ffvz/
25 Renew Economy (2020). https://reneweconomy.com.au/arena-opens-70-million-funding-round-to-fast-track-renewables-for-hydrogen-58600/
26 Tasmanian Government (2020). http://www.premier.tas.gov.au/releases/re-issued_becoming_the_nations_renewable_hydrogen_industry_epicentre
27 Northern Territory Government (2020). http://newsroom.nt.gov.au/mediaRelease/33392
28 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/australia , Queensland Government (2020).
https://www.covid19.qld.gov.au/__data/assets/pdf_file/0025/128194/economic-recovery-plan.pdf
29 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/australia , Western Australia Government (2020).
https://www.wa.gov.au/sites/default/files/2020-08/Wheatbelt%20Recovery%20Plan.pdf
30 Government of Victoria (2020). https://www.premier.vic.gov.au/helping-victorians-pay-their-power-bills
31 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/australia ,
32 Energy Magazine (2020). https://www.energymagazine.com.au/south-australia-invests-60-million-in-energy-efficient-government-buildings/
33 Renew Economy (2020). https://reneweconomy.com.au/nsw-targets-12gw-of-renewables-and-storage-under-new-roadmap-that-includes-auctions-27022/
34 The Driven (2020). https://thedriven.io/2020/11/06/south-australia-to-transition-car-fleet-and-boost-charging-network-in-big-ev-push/
1.3 Brazil
Brazil has passed a total of US$224 billion in fiscal stimulus spending.35
Composition of stimulus: The Brazilian government has introduced a number of measures to support
businesses. A large proportion of the stimulus is directed at the industry and transport sectors, while some
specific support has also been announced for agricultural producers. Other stimulus measures include
health and medical equipment spending, income and employment support. Since the previous release,
Brazil has not implemented any new stimulus measures.
Brazil’s negative score is driven by a combination of poor underlying performance, plus some
environmentally harmful measures, particularly in the agriculture and transport sectors. Recent policies
have both environmentally harmful and beneficial effects but contributed on balance to an increase in
Brazil’s score.
Table 5 Archetype policies announced in Brazil
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
35 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
Greenness
31
of Stimulus
Index
• Specific environmental measures (b )
2
• Brazil has approved measures that support
• Brazil followed the lead of many other
carbon-intensive activities, such as instituting
countries and extended unconditional finan-
a committee for the revitalisation of explora-
cial support to the airline industry.44 This
tion and production activities for oil, natural
includes direct supports to airlines and
gas and other hydrocarbon fluid. Further,
aviation, as well as extending the deadline for
Brazil also approved the potential extension
repayment of airport concession contracts
of concession period for offshore oilfields36.
until December 2020.
• On the other hand, the Brazilian government
• Since the start of the stimulus, Brazil has
has announced some promising measures, for
taken significant steps to deregulate land use
example through the country’s creation of new
in the Amazon, to stimulate economic activity
financial mechanisms to issue green bonds for
in the region. This deregulation includes
sustainable infrastructure. The National Bank for
relaxation of restrictions on logging, mining
Economic and Social Development issued
and other development permits to boost
US$203 million in green bonds in October 202037.
growth in the agriculture, forestry and indus-
These are expected to attract up to US$34 billion
trial sectors.45
by 2029.38 Brazil has also announced the exten-
sion of a green credit line to support biofuel
• One example is a recent bill introduced by
producers39 and authorised the import of raw
President Bolsonaro allowing illegal occu-
materials for the manufacture of biofuels, to
pants of land who have made it agriculturally
respond to the country high soy exports due to
productive to make a claim for legal title to
the COVID-19 pandemic, which created a drop in
the land.46 Relaxing the enforcement of
its availability in the domestic market40.
property rights for land use in the Amazon
and creating a process for poachers to qualify
• The new National Energy Plan was approved
for land deeds is predicted to increase illegal
in December 202041. The Brazilian govern-
land poaching, directly harming indigenous
ment has set a renewable energy target of
communities and damaging biodiversity.47
around 45% by 2030 under the new strate-
The bill is explicitly designed to allow for over
gy42. Support for renewable energy has also
9.8 million hectares of land that is currently
been provided through BNDES. This includes
under unrecognised indigenous use to be
funding for wind energy infrastructure. The
opened up for economic activity, effectively
BNDES has approved funding for national
serving as a deregulatory measure for the
wind blades manufacturers, as well as the
mining and timber industries.48
expansion of wind complexes. Brazil has also
provided support for energy efficiency
• Another environmentally damaging measure
improvements. Those policies contribute
supporting the agriculture sector is reduced
positively towards Brazil’s index score.
oversight of environmental monitoring in the
Amazon. Because of the COVID-19 crisis, one
• On the other hand, Brazil has delayed
third of enforcement agents were asked to
electricity auctions which were expected in
stay home and isolate, reducing their availa-
the spring of 2020.43 The delay is likely to give
bility to combat illegal deforestation and land
gas producers more time to improve their
poaching.49 While this is not an explicit
relative market share and attract additional
stimulus measure, this recommendation,
private investment, harming the renewables
coupled with the firing of two government
sector. The postponement of energy auctions
supervisors in deforestation, and a decrease
may impose additional barriers to the devel-
in funding for relevant equipment and labour
opment of renewable energy in the country.
has strained the ability to protect land.50
By giving natural gas a competitive edge, the
country is delaying the development of green
energy projects.
36 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/
37 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/ ,
38 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/ ,
39 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/ , https://epbr.com.br/linha-de-r-3-bi-do-bndes-para-o-etanol-es-
tara-disponivel-nesta-quarta/
40 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/
41 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/brazil/ ,
42 PV Magazine (2020). https://www.pv-magazine.com/2020/12/23/bra-
zil-hits-7-gw-mark-targets-45-renewables-by-2050/#:~:text=The%20Ministry%20of%20Mines%20and,2030%20under%20the%20new%20strategy.
43 BN Americas (2020). https://www.bnamericas.com/en/analysis/spotlight-the-impacts-of-brazils-decision-to-postpone-all-electricity-auctions
PV Magazine (2020). https://www.pv-magazine.com/2020/04/01/brazil-postpones-energy-auctions/
44 KPMG Insights (2020). https://home.kpmg/xx/en/home/insights/2020/04/brazil-government-and-institution-measures-in-response-to-covid.html
Business Wire (2020). https://www.businesswire.com/news/home/20200521005773/en/Corporaci%C3%B3n-Am%C3%A9rica-Airports-Announces-1Q20-Results
45 Brazil government (2020). http://www.planalto.gov.br/ccivil_03/_ato2019-2022/2019/Mpv/mpv910.htm
46 The Guardian (2020). https://www.theguardian.com/environment/2020/may/28/studies-add-to-alarm-over-deforestation-in-brazil-under-bolsonaro-covid-19
47 Financial Times (2020). https://www.ft.com/content/ca84017c-94c5-48ca-80c6-2ac31ea20cd9
48 Monga Bay (2020). https://news.mongabay.com/2020/05/brazil-opens-38000-square-miles-of-indigenous-lands-to-outsiders/
49 Politico EU (2020). https://www.politico.eu/article/climate-battle-shifts-to-once-in-a-generation-national-budgets/
50 The Rising (2020). https://therising.co/2020/05/21/amazon-fires-may-be-worse-2020/
1.4 Canada
Canada has passed US$400 billion in fiscal stimulus measures.51
Composition of stimulus: Alongside measures to fund the healthcare system and support households,
Canada is providing a variety of measures to support businesses, such as wage subsidies, direct payments
and tax deferments. This has included some specific environment-related measures that provide support
both to green and high-emitting industries. Green stimulus measures in Canada’s agriculture, energy and
transport sectors improve Canada’s GSI, alongside a condition to report climate risk according to TCFD
guidelines to qualify for financial support. Canada provided funding for several new green transportation
and nature-based solution initiatives in November’s Fall Economic Statement 2020. Canada’s 2020 Throne
Speech reinforced a commitment to a green and sustainable recovery. As a commitment to the Throne
Speech, Canada released in December 2020 ‘A Healthy Environment and a Healthy Economy’, its plan to
build a better future. With this plan, Canada’s index score has improved considerably since the last release
due to increased national and provincial level funding for emissions reduction investments and numerous
unquantified policies, resulting in a second, higher, overall positive index score.
Table 6 Archetype policies announced in Canada
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
51 Conversion from the Canadian dollar to US dollar are taken using the weekly average exchange using Morning Star
Greenness
33
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• In December 2020, Canada published ‘A
• Additional funding to the energy sector
Healthy Environment and a Healthy Econo-
amounting to US$530 million was made
my’, a plan which will be a cornerstone of the
available through the Emissions Reductions
commitments made in the 2020 Speech from
Fund to cover the cost of labour necessary to
the Throne to create over one million jobs,
install upgraded methane monitoring and
restoring employment to pre-pandemic levels.
reduction technologies, in line with recently
The plan includes 64 new measures and
updated methane emissions standards.53 This
CAD$15 billion (US$11.7 billion) in investments,
funding is a green infrastructure investment
in addition to the Canada Infrastructure
made to ensure long-term emissions reduc-
Bank’s CAD$6 billion (US$4.7 billion) for
tions in the oil and gas sector in Canada.
clean infrastructure announced last year as
part of its growth plan. The December 2020
• Despite the green measures passed in
plan includes numerous environmentally
Canada’s economic stimulus package, the
beneficial policies such as: promoting the
extension of tax relief to the oil and gas
production and use of low-carbon and
sector provided to the Province of Alberta is a
zero-emissions fuels, zero-emission vehicles
direct subsidy for polluting energy infrastruc-
incentives, funding for smart renewable
ture.54 In addition to the tax relief, the expand-
energy and grid modernisation projects, and
ed export credit capacity in the Export
investments for green and inclusive communi-
Development Canada and Business Develop-
ties. The funding for emissions reduction
ment Bank will benefit the oil and gas sector,
investments as well as numerous unquantified
without green conditions for better environ-
policies from the plan contributed to improv-
mental performance.55
ing Canada’s score in this edition.
• In the transport sector, Canada has
• Canada has committed US$1.22 billion to
suspended airline docking fees temporarily,
cleaning up abandoned and unused well sites
waiving this tax on a high-emissions industry.56
as a part of the stimulus funding targeted at
Suspension of temporary ground lease rents
the provinces of British Columba, Alberta, and
are being expanded to large port cities across
Saskatchewan.52 This funding is categorised
Canada. Providing economic relief to aviation
as green infrastructure investment because it
and shipping without any conditions is
works to reduce the environmental impact of
categorised as a negative environmental
the oil and gas sector on the natural environ-
measure, given zero conditionality on
ment. Uncertainty concerning funding respon-
environmental requirements.
sibilies has a raised a question mark over
whether the project is truly green, but we
consider it will reduce the environmental
impact of the energy sector.
52 Canadian Government (2020). https://pm.gc.ca/en/news/news-releases/2020/04/17/prime-minister-announces-new-support-protect-canadian-jobs
53 Canadian Broadcast Corporation (2020). https://www.cbc.ca/news/politics/financial-aid-covid19-trudeau-1.5535629
54 Climate Change News (2020). https://www.climatechangenews.com/2020/04/20/coronavirus-governments-bail-airlines-oil-gas/
55 EDC (2020) https://www.edc.ca/en/about-us/newsroom/covid-19-oil-gas-support.html
56 Government of Canada (2020). https://www.canada.ca/en/department-finance/economic-response-plan.html
Greenness
34
of Stimulus
Index
• Loans provided to the fishing and agricul-
• The rollback of some environmental regula-
tural industry in Canada have been enacted
tions in Alberta is a potentially harmful policy
without conditions for improvement in
that contributes towards Canada’s overall
environmental performance.57 Given cattle are
negative index score. However, these are
a high emissions agricultural product and
much less widespread and severe than the
fisheries require sustainable management
large-scale environmental deregulation that is
practices to avoid ecosystem collapse or
occurring in the United States.59 Environmen-
other environmental damage, providing
tal regulations have also been rolled back in
unconditional support is categorised as a
Saskatchewan,60 Quebec,61 British Columbia
negative policy in our analysis.
and Nova Scotia,62 largely in the form of
deferred carbon tax payments and reduced
• The Canadian government announced that
enforcement of environmental rules.
recipients of support from the Large Employ-
er Emergency Financing Facility (LEEFF)
• Canada’s fossil fuel industries have also
must commit to disclosing annual climate-re-
received a stimulus bump. Both Alberta63 and
lated reports, including an assessment of the
Quebec64 have made investments into their
impact of their future operations on sustaina-
natural gas industries, with each province
bility and climate goals.58 This counts as
investing more than US$50 million. This has
attaching green strings to bailout covering
been coupled with specific rollbacks in fossil
the energy, industry, agriculture, transport
fuel regulation, such as the loosening of oil
and waste sectors in Canada. Given the
exploration rules in Newfoundland and
requirement to disclose climate-related risks,
Labrador,65 and coal pit protections in Alber-
firms which are eligible for the funding will
ta.66 Countering this carbon-intensive invest-
have to make permanent adjustments to
ment, more than US$260 million has been
financial reporting procedures.
invested in smart grids, energy efficiency,
wind energy and other renewable energy
infrastructure, with the bulk of that package
going into improving energy performance of
homes and commercial buildings.67
57 Government of Canada (2020). https://www.canada.ca/en/department-finance/economic-response-plan.html
Prime Minister of Canada (2020). https://pm.gc.ca/en/news/news-releases/2020/05/11/prime-minister-announces-additional-support-businesses-help-save
58 Open Alberta (2020).
https://open.alberta.ca/dataset/2deef631-4dad-4b47-a20f-d31dd2cbe343/resource/366a722d-630c-4ce8-9ea5-3a22f3696bfb/download/aep-ministerial-order-15-20
20.pdf , Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/canada
59 Province of Saskatchewan (2020). https://www.saskatchewan.ca/government/news-and-media/2020/april/14/oil-industry-support. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/canada
60 Province of Quebec (2020).
https://www.quebec.ca/en/environment-and-natural-resources/covid-19-environnement/prioritization-environmental-monitoring-covid-19/ Energy Policy Tracker
(2020). https://www.energypolicytracker.org/country/canada
61 Province of British Columbia (2020). https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/notice-2020-002-covid-19-sales-tax-changes.pdf, Energy
Policy Tracker (2020). https://www.energypolicytracker.org/country/canada
62 Province of Nova Scotia (2020) https://novascotia.ca/coronavirus/fees, Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
63 Province of Alberta (2020). https://www.alberta.ca/release.cfm?xID=728627405CE2F-953D-C71A-39908B074E8213CE , Energy Policy Tracker (2020)
https://www.energypolicytracker.org/country/canada
64 Province of Quebec (2020). https://mern.gouv.qc.ca/gouvernement-quebec-attribue-70-m-soutenir-gaz-naturel-renouvelable-2020-07-07, Energy Policy Tracker
(2020) https://www.energypolicytracker.org/country/canada
65 Ministry of Natural Resources (2020)
https://www.canada.ca/en/natural-resources-canada/news/2020/06/statement-by-the-minister-of-natural-resources-on-the-coming-into-force-of-a-regulation-to-im
prove-the-review-process-for-exploratory-drilling-in-t.html , Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
66 Province of Alberta (2020). https://www.alberta.ca/coal-policy-guidelines.aspx , Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
67 Government of Canada (2020).
https://www.canada.ca/en/office-infrastructure/news/2020/06/new-initiative-to-help-homeowners-cut-their-energy-bills-and-emissions-and-keep-the-local-econom
y-moving.html , Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
Greenness
35
of Stimulus
Index
• Investment made into transportation has
• In further green stimulus, Natural Resources
affected Canada’s index score both positively
Canada will be allocated US$2 billion over
and negatively. While significant investment
the next seven years to provide 700,000
(more than US$2 billion) has been committed
grants of up to US$5,000 for energy efficient
to public transit both at the federal and state
home improvements. A further US$113 million
levels,68 even more has been set aside for the
will be provided over the next three years to
construction of automobile-centric highways
build more electric fuel stations; however,
and bridges.69
US$750 million in unconditional support for
the airline sector was also provided in the Fall
• Canada’s 2020 Throne Speech looks
Economic Statement.74
towards a green recovery with investments
in green energy and transportation infrastruc-
• Quebec, Ontario and Alberta also imple-
ture, and nature and ocean protection
mented green stimulus and environmental
through the Clean Power Fund, the Atlantic
regulations. Quebec allocated US$2.7 billion
Loop project, and the creation of the new
of its provincial budget for green transporta-
Canada Water Agency.70 The Throne Speech
tion investments in public transit, electric
Infrastructure Package includes an investment
vehicles and the electrification of heavy duty
of US$1.76 billion for clean power and renewa-
vehicles.75 Ontario became the first Canadian
ble energy generation and storage, and
province to pass a regulation requiring that all
US$2.5 billion for large-scale energy efficient
regular-grade gasoline contain a minimum of
building retrofits, zero-emission buses, and
15% renewable content.76 In Alberta, the
charging infrastructure.71
US$112 million Shovel-Ready Challenge will
support industrial emissions reduction tech-
• Canada has committed to supporting
nologies, and the Low Carbon Economy
Newfoundland and Labrador’s off-shore oil
Leadership Fund will provide US$75 million in
industry with an investment of US$238.6
support for green initiatives including energy
million.72 This investment will help fund
efficiency retrofits, green technology innova-
maintenance projects as well as protect jobs
tion, and industrial transformation.77
amidst falling oil prices.
• An updated Greening Government Strate-
• Canada’s Fall Economic Statement provides
gy was also published, wherein the Govern-
concrete funding for the nature-based
ment of Canada committed to reducing its
commitments made in the Throne Speech.
operational GHG emissions to net zero by
A total of US$2.9 billion will be allocated over
2050. This strategy will include the adoption
the next ten years to support the planting of
of low-carbon solutions for government
two billion trees, and to enhance the carbon
buildings and fleets, the increased purchas-
sequestration potential of Canada’s wetland,
ing of green power, and the reduction of
peatland, grassland and agricultural areas.73
single-use plastics.78
68 Prime Minister of Canada (2020). https://pm.gc.ca/en/news/news-releases/2020/05/11/prime-minister-announces-additional-support-businesses-help-save
69 Open Alberta (2020).
https://open.alberta.ca/dataset/2deef631-4dad-4b47-a20f-d31dd2cbe343/resource/366a722d-630c-4ce8-9ea5-3a22f3696bfb/download/aep-ministerial-order-15-
2020.pdf , Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/canada
70 Province of Saskatchewan (2020). https://www.saskatchewan.ca/government/news-and-media/2020/april/14/oil-industry-support. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/canada
71 Province of Quebec (2020).
https://www.quebec.ca/en/environment-and-natural-resources/covid-19-environnement/prioritization-environmental-monitoring-covid-19/ Energy Policy Tracker
(2020). https://www.energypolicytracker.org/country/canada
72 Province of British Columbia (2020). https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/notice-2020-002-covid-19-sales-tax-changes.pdf, Energy
Policy Tracker (2020). https://www.energypolicytracker.org/country/canada
73 Province of Nova Scotia (2020) https://novascotia.ca/coronavirus/fees, Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
74 Province of Alberta (2020). https://www.alberta.ca/release.cfm?xID=728627405CE2F-953D-C71A-39908B074E8213CE , Energy Policy Tracker (2020)
https://www.energypolicytracker.org/country/canada
75 Province of Quebec (2020). https://mern.gouv.qc.ca/gouvernement-quebec-attribue-70-m-soutenir-gaz-naturel-renouvelable-2020-07-07, Energy Policy Tracker
(2020) https://www.energypolicytracker.org/country/canada
76 Ministry of Natural Resources (2020)
https://www.canada.ca/en/natural-resources-canada/news/2020/06/statement-by-the-minister-of-natural-resources-on-the-coming-into-force-of-a-regulation-to-i
mprove-the-review-process-for-exploratory-drilling-in-t.html , Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
77 Province of Alberta (2020). https://www.alberta.ca/coal-policy-guidelines.aspx , Energy Policy Tracker (2020)
https://www.energypolicytracker.org/country/canada
78 Government of Canada (2020).
https://www.canada.ca/en/office-infrastructure/news/2020/06/new-initiative-to-help-homeowners-cut-their-energy-bills-and-emissions-and-keep-the-local-econo
my-moving.html , Energy Policy Tracker (2020) https://www.energypolicytracker.org/country/canada
Greenness
36
of Stimulus
Index
1.5 China
China has passed a total of US$729 billion in fiscal stimulus.79
Composition of stimulus: Alongside healthcare and welfare measures, the stimulus package includes
substantial support for China’s large and environmentally-intensive industrial sector. Stimulus has been
channelled through special purpose bonds for regions, special treasury bonds, and an increase in the
budget deficit. Lines of credit have been extended to state-owned enterprises80 and therefore are not
publicly disclosed. The headline figure is based on estimates by the IMF, which should be treated as
conservative. Infrastructure projects will receive a large proportion of Chinese stimulus. Future stimulus
under China’s 14th ‘five-year plan’ is also likely to be carbon-intensive.81
China scores poorly on key indicators, and despite some positive policies, has a very low index score.
China’s new ambition for 2030 climate targets, as well as few associated policies, have, however,
contributed to improving the country’s score in this edition.
Table 7 Archetype policies announced in China
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
China’s performance against key environmental indicators is critically insufficient to achieve environmental
targets. Significant extra action is required to achieve Paris Agreement targets and environment-related
sustainable development goals.
79 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
80 The Economist (2020). https://www.economist.com/finance-and-economics/2020/04/16/why-has-chinas-stimulus-been-so-stingy
81 Carbon Brief (2020). https://www.carbonbrief.org/analysis-chinas-covid-stimulus-plans-for-fossil-fuels-three-times-larger-than-low-carbon
Greenness
37
of Stimulus
Index
• Specific environmental measures (b )
2
• Part of the fiscal stimulus plan includes
• In contrast, while local governments are
faster coal permit approvals, in contrast to the
extending subsidies for any vehicle, the
government’s commitment to restrict coal to
Chinese government has extended its national
58% of the national energy consumption by
EV subsidy programme through 2022.88 This
2020.82 In February and March 2020, China
extension of an existing subsidy, coupled with
loosened labelling of provinces as over-ca-
the government’s recent announcement to
pacity for coal power generation, making
reduce permitting requirements on new
them available for new coal power plants and
electric vehicles provides a green boost to the
more permit approvals than in the same
transport sector in China.89 This extension will
period in 2019.83 During the post-2008 crisis
occur through 2022,90 but decreased by 10%
China funded much of the coal capacity it has
in December 2020 and excluded vehicles
today, and a similar investment now could
priced over US$42,357.91
further lock the country in to high carbon
infrastructure.84
• One specific measure that supports green
infrastructure investment is the US$379
• As an initial response to COVID-19, the
million funding for EV charging infrastructure
Chinese government dropped its commitment
across China.92 In tandem with the extension
to key emissions intensity and energy targets
of the EV subsidy in March 2020, these
for post-2020.85 While China had already
projects aid the uptake of EVs. This type of
failed to achieve its targets for energy
explicit green infrastructure supported the
efficiency in 2019, the lack of a 2020 target
transport sector’s GSI score.
indicated a delayed trajectory towards its
climate change commitments.
• An unconditional US$3.5 billion bailout of
airline Cathay Pacific has been announced.86
• Chinese provinces have rolled out car
subsidies to support the general industry,
encouraging uptake in traditional combustion
engines in the transport sector.87 Only the
province of Guangzhou has made explicit
support available for EVs, but it is comparable
to the subsidies offered for petrol vehicles.
These subsidies are mostly in the form of cash
transfers to buyers of vehicles, and certain
regions are promoting higher subsidies for car
manufacturers located in the province.
Without specific stipulations on EVs, this
should be considered as a negative environ-
mental measure.
82 Climate Action Tracker (2019); https://climateactiontracker.org/countries/
83 Global Energy Monitor (2020). https://endcoal.org/wp-content/uploads/2020/03/BoomAndBust_2020_English.pdf
84 Wong, Christine (2011), “The Fiscal Stimulus Programme and Public Governance Issues in China”, OECD Journal on Budgeting, Vol. 11/3.
http://dx.doi.org/10.1787/budget-11-5kg3nhljqrjl
85 Bloomberg (2020).
https://www.bloomberg.com/news/articles/2020-05-22/china-drops-key-environmental-target-as-coronavirus-hits-growth?cmpid=BBD052220_GREENDAILY&ut
m_medium=email&utm_source=url_link&utm_term=200522&utm_campaign=greendaily
86 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china/ , SCMP (2020).
https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3088130/trading-cathay-pacific-halted-hong-kong-stock
87 Financial Times (2020). https://www.ft.com/content/12cc8c6a-5f7a-11ea-b0ab-339c2307bcd4
88 PR Newswire (2020).
https://www.prnewswire.com/news-releases/china-extends-new-energy-vehicle-purchase-subsidies-and-purchase-tax-exemption-policy-for-two-years-301032549.
html
89 IHS Market (2020). https://ihsmarkit.com/research-analysis/china-steps-up-efforts-to-boost-auto-industry.html
90 Bloomberg (2020). https://www.bloomberg.com/news/articles/2020-04-01/china-mulling-cutting-electric-car-subsidies-it-just-extended
91 The Driven (2020). https://thedriven.io/2020/04/02/tesla-confusion-as-china-extends-electric-vehicle-subsidies-to-meet-covid-19-challenge/
Reuters (2020). https://uk.reuters.com/article/uk-china-autos-electric-subsidies/china-to-cut-new-energy-vehicle-subsidies-by-10-this-year-idUKKCN2251DT
92 China post-COVID Recovery Factsheet (2020).
Greenness
38
of Stimulus
Index
• The Chinese Ministry of Finance has provid-
• In December 2020, however, China filled in
ed US$4 billion towards a Green Development
one piece of its ‘carbon neutrality by 2060’
Fund (which totals around US$12 billion,
puzzle by increasing significantly the ambi-
including contributions from the private
tion of its 2030 climate targets. The country
sector) that will make green investments
vowed to lower emissions per unit of GDP by
along the Yangtze River economic belt.
over 65% from the 2005 level, increase the
The fund is expected to support a range of
share of non-fossil fuels in primary energy
investments, including environmental protec-
consumption to around 25%, increase forest
tion, pollution control, ecological restoration,
stock volume by 6bn cubic metres from the
land and space greening, energy conserva-
2005 level, and bring its total installed
tion, green transportation, clean energy and
capacity of wind and solar power to over
other fields.93 However, this fund makes up
1.2bn kilowatts 99 Analysis by Carbon Brief has
only a tiny proportion of total Chinese stimu-
highlighted the significance of those targets
lus, and so does not dramatically improve the
for clean electricity generation100. This
country’s index score.
contributed to improving China’s GSI score.
• The Chinese government has invested in
• China has also unveiled plans for a biomass
building renovation for older people within
power plant,101 and the city of Beijing has
cities and towns, which includes energy
implemented an incentive system for
efficiency improvements.94
businesses to replace their light trucks with
electric vehicles.102 Even more encouragingly,
• Another measure that helps to improve
the national government has recently
China’s index score is investment in railway
announced that by 2035, all vehicles sold in
infrastructure. The 100-billion-yuan invest-
China must be powered by ‘new energy’,
ment (around US$14 billion) forms part of a
defined as electric, fuel cell, or hybrid.103
large infrastructure package announced by
the Chinese government.95
• In a move that made international news,
China pledged to become carbon neutral by
2060.96 This commitment to long-term green
action, however, is juxtaposed against a
carbon-intensive, short-term agenda. Provin-
cial plans analysed by Carbon Brief revealed
intent to invest more than US$300 billion in
fossil fuel infrastructure, but less than US$80
billion into nuclear and renewable energy
infrastructure.97 This is in addition to recent
announcements that include allocating $587
million for new coal plants.98
93 Line Today (2020). https://today.line.me/hk/article/National+green+development+fund+company+established+in+Shanghai-5eYWgx
94 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , China Government Network (2020).
http://www.gov.cn/xinwen/2020-07/21/content_5528678.htm.
95 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , Chinese Government (2020).
http://english.www.gov.cn/premier/news/202005/30/content_WS5ed197f3c6d0b3f0e94990da.html.
96 Climate Change News (2020). https://www.climatechangenews.com/2020/09/22/xi-jinping-china-will-achieve-carbon-neutrality-2060/
97 Carbon Brief (2020). https://www.carbonbrief.org/analysis-chinas-covid-stimulus-plans-for-fossil-fuels-three-times-larger-than-low-carbon
98 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , http://www.sxcoal.com/news/4615831/info/en
99 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china/
100 Carbon Brief (2020) https://www.carbonbrief.org/analysis-chinas-new-2030-targets-promise-more-low-carbon-power-than-meets-the-eye
101 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , https://www.ndrc.gov.cn/xxgk/zcfb/tz/202009/t20200916_1238868.html
102 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , http://jtw.beijing.gov.cn/xxgk/zcjd/202008/t20200831_1994317.html
103 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/china , http://www.gov.cn/zhengce/content/2020-11/02/content_5556716.htm
Greenness
39
of Stimulus
Index
1.6 Colombia
Colombia has passed a total of US$8 billion in COVID-19 fiscal stimulus.104
Composition of stimulus: Colombia’s main stimulus package ‘Fondo de mitigación de emergencias’ (Decree
444) provided US$8.06 billion in support for healthcare, business and employment, and featured credit lines
for SMEs, public transportation, education, tourism and the coffee sector.105 Colombia’s subsequent US$26
million stimulus package, ’Compromiso por el futuro de Colombia’, outlines further recovery initiatives with an
emphasis on sustainable growth, clean energy and the environment.106 The ’Compromiso’ features investments
in renewable energy, afforestation measures, and initiatives to strengthen environmental regulations and nature
conservation and protection. Colombia’s recovery is also guided by two CONPES (Consejo Nacional de Política
Económica y Social), which stress capacity building and development in households, industry and institutional
frameworks to restart the economy and move towards a green recovery.107
Colombia’s low index score is driven by its poor underlying performance across key indicators,
which was unable to be compensated for by its green initiatives.
Table 8 Archetype policies announced in Colombia
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
104 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
105 Government of Colombia (2020). http://www.urf.gov.co/webcenter/ShowProperty?nodeId=/ConexionContent/WCC_CLUSTER-127220 , World Bank (2020).
https://www.worldbank.org/en/country/colombia/overview , KPMG Insights (2020).
https://home.kpmg/xx/en/home/insights/2020/04/colombia-government-and-institution-measures-in-response-to-covid.html
106 Government of Colombia (2020).
https://idm.presidencia.gov.co/prensa/Paginas/Con-el-nuevo-Compromiso-por-el-Futuro-de-Colombia-el-pais-esta-haciendo-las-grandes-apuestas-Duque-200
820.aspx , https://id.presidencia.gov.co/Paginas/prensa/2020/Nace-el-nuevo-Compromiso-por-el-Futuro-de-Colombia-200807.aspx
107 Government of Colombia (2020). https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/3999.pdf
Greenness
40
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.108
• Specific environmental measures (b )
2
• The Ministry of Mines and Energy recently
• Colombia’s ‘Compromiso’ will prioritise
enabled economic aid to retail fuel distribu-
nature-based solutions, reforestation and
tors by providing nearly US$0.16 million to
nature conservation and protection. The plan
those service stations that need resources to
will accelerate the planting of 180 million
repair breakdowns as a result of the winter
trees and incentivise communities to engage
wave109. The policy is considered to be
in and contribute to silvopastoral production
environmentally harmful but its very limited
and agroforestry measures. In addition, the
size prevents it from significantly impacting
government will work towards eradicating the
Colombia’s score.
illegal exploitation of minerals and implement
initiatives to preserve ecosystems and protect
• The Government of Colombia will provide
water basins. These initiatives work towards
US$4 million to fund 27 accelerated renewa-
the government’s 2022 goal of increasing the
ble energy projects. Of the 27 projects, nine
transition and sustainability of the mining
are investments in wind, five in solar, three in
sector, and implementing circular economy
geothermal and one in hydrogeneration. The
principles.111
remaining nine projects will develop energy
transmission lines.110
• On one hand, the Government of Colombia’s
credit lines have provided green stimulus by
supporting the public transportation sector.
On the other hand, the majority of Colombia’s
credit lines provide unconditional support for
SMEs, the coffee sector and the tourism
industry, which results in an overall negative
impact on the country’s index score.112
108 The Climate Change Performance Index and Climate Action Tracker scores are not available for Colombia. Colombia’s baseline score is determined by its EPI score.
109 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/colombia
110 Government of Colombia (2020).
https://id.presidencia.gov.co/Paginas/prensa/2020/Nace-el-nuevo-Compromiso-por-el-Futuro-de-Colombia-200807.aspx#:~:text=Al%20instalar%20las%20sesio
nes%20ordinarias,e%20impulso%20al%20campo%20y
111 Government of Colombia (2020).
https://id.presidencia.gov.co/Paginas/prensa/2020/Nace-el-nuevo-Compromiso-por-el-Futuro-de-Colombia-200807.aspx#:~:text=Al%20instalar%20las%20sesio
nes%20ordinarias,e%20impulso%20al%20campo%20y
112 Government of Colombia (2020). http://www.urf.gov.co/webcenter/ShowProperty?nodeId=/ConexionContent/WCC_CLUSTER-127220
Greenness
41
of Stimulus
Index
1.7 Denmark
Denmark has passed a total of US$38 billion in fiscal measures.113
Composition of stimulus: The initial stimulus package released by the Danish government saw significant
healthcare sector expenditures, financial support of SMEs, larger firms, and the tourism sector,114 as well as an
immediate commitment to energy efficiency, green research investments, and a dedicated nature and biodiver-
sity allocation.115 Most recently, the 2021 Budget allocated significant funds as stimulus measures, aiding welfare
improvements for the vulnerable, supporting the arts and entertainment sectors, and extending funding to
SMEs where needed. The new budget also allocated US$480 million to the phasing out of gas boilers, US$101
million to pollution abatement and clean-up initiatives, and US$83 million to promoting green mobility through
a ’bicycle fund’.116
Green measures constitute a significant proportion of Denmark's overall spending throughout the pandemic,
building on a strong positive baseline, resulting in a high final index score.
Table 9 Archetype policies announced in Denmark
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
113 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
114 IMF Policy Tracker (2020). Policy Responses to COVID19 (imf.org)
115 The Carbon Brief (2020). Coronavirus: Tracking how the world’s ‘green recovery’ plans aim to cut emissions (carbonbrief.org)
116 Copenhagen Post Online (2020). Government lands 2021 budget agreement – The Post (cphpost.dk)
Greenness
42
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is sufficient to achieve environmental targets, better than most countries
included in the GSI.
• Specific environmental measures (b )
2
• The first Danish stimulus package saw an
• An expenditure targeting household energy
investment of US$247 million in green
consumption has dedicated US$480 million
research, typifying the nation’s commitment
to phasing out gas boilers, grants for green
to a successful environmentally friendly
housing improvements, developing electric
transition. Such funds were accompanied by a
infrastructure, and improving the energy
US$32 million allocation towards nature and
efficiency of public buildings.119
biodiversity initiatives, to be invested over
four years.117 Attention to green causes other
than climate concerns is vital for an effective
green recovery, leading such interventions to
positively impact Denmark’s final index score.
• More recently the Danish government has
contributed over US$100 million to national
pollution abatement and clean-up costs.
The investment is not only targeted at GHG
emissions, but water and land pollution
abatement as well, affirming the country’s
commitment to nature-focused environmen-
tal policy.118
117 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
118 Copenhagen Post Online (2020). Government lands 2021 budget agreement – The Post (cphpost.dk)
119 Copenhagen Post Online (2020). Government lands 2021 budget agreement – The Post (cphpost.dk)
Greenness
43
of Stimulus
Index
1.8 European Union
The European Union (EU) has announced its own stimulus measures, in addition to the recovery packages
of its member states. The EU stimulus package totals €1.33 trillion (US$1.46 trillion).120
Composition of stimulus: On top of an initial package of rescue measures, the European Union has announced
a large ‘Next Generation EU’ recovery stimulus package. The €750 billion (US$830 billion) recovery plan is
composed of €390 billion (US$430 billion) in grants and €360 billion (US$400 billion) in loans for member
states. The package will support the European Green Deal through a variety of measures to improve progress
towards environmental goals. The biodiversity and farm-to-fork strategies appear to be particularly relevant in
terms of land use policies that enhance nature conservation efforts. The European Union has also increased the
long-term EU budget from 2021-2027 by €1.1 trillion (US$1.2 trillion), which will also include substantial support
for green initiatives.121 In September 2020, the European Union adopted a revised set of EU Emission Trading
System State Aid Guidelines.122 In October, the EU’s new stimulus measures included nearly €1 billion in grants
for new energy infrastructure investments123 and the issuance of €17 billion (US$18.75 billion) in social bonds
under the EU SURE instrument.124
The EU has positive scores across the board, based on the expected positive environmental impact of its
‘Next Generation EU’ recovery plan.
Table 10 Archetype policies announced by the European Union
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
120 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#G , European Commission (2020).
https://ec.europa.eu/info/live-work-travel-eu/health/coronavirus-response/recovery-plan-europe_en
121 New York Times (2020). https://www.nytimes.com/reuters/2020/07/21/us/21reuters-eu-summit-climate-change-factbox.html
122 European Commission (2020). https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1712
123 European Commission (2020). https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1803
124 European Commission (2020). https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1954
Greenness
44
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets, but better than
most countries included in the GSI.125
• Specific environmental measures (b )
2
• Recovery loans and grants to member states
• The remaining earmarked green funding
have ‘do no harm’ environmental conditions
could support the following investments
attached. These loans are conditional on
that were previously proposed by the
pledges to align with EU goals for sustainable
European Commission:
investment and climate risk.126
- Support for home energy efficiency and
• 37% of the €750bn ‘Next Generation EU’
green heating.130
package will be directed at specific green
measures, which includes support for the
- Funding for natural capital and the circular
following investments:127
economy.131
- An addition of €10 billion (US$11 billion) to
- Support for electric vehicle sales and
the Just Transition Fund, to reduce reliance on
charging infrastructure.132
fossil fuels. The Just Transition Fund target
• €998 million in grants have been provided
regions which rely on fossil fuels, to reduce
for ten key European energy infrastructure
job and economic impacts resulting from a
projects. The Baltic Synchronisation Project
low-carbon transition. However, this figure is
will receive the majority of the funding
much smaller than the previously proposed
(€720 million) to improve the integration of
€40 billion ($44 billion), after negotiations
Estonia, Latvia, Lithuania and Poland’s
between member states.128
electricity markets. The other projects will
- Funding for sustainable infrastructure is also
focus on improving electricity transmission,
lower than proposed, with support for Invest-
funding smart electricity grids, improving
EU reduced to around €10 billion (US$11
the CO2 transport network, improving the
billion) from the originally proposed €20
security of supply and diversification of gas
billion (US$22 billion).129 The fund will include
imports, and a study to support the devel-
money for renewable energy and storage,
opment of offshore wind.133
clean hydrogen, batteries and carbon capture
• In October and November 2020, the EU
technologies.
invested into its own member states as well
- €7.5 billion (US$8.3 billion) for a fund for
as other countries. Internally, the European
rural development, which will support the
Investment Bank extended a €31 million loan
decarbonisation of agriculture.
to one of Spain’s largest real estate groups
to develop net-zero energy buildings in
Madrid.134 Outside of its borders, the EU has
invested in both energy and transport,
extending US$72 million to the Philippines
to increase access to sustainable energy
and US$9 million to Norway through the
Horizons 2020 programme for development
of the green hydrogen ship ‘Topeka.’135
125 The Climate Action Tracker provides a score for the EU. The EPI score is calculated by taking an average of scores of member countries.
126 KPMG Insights (2020). https://home.kpmg/xx/en/home/insights/2020/04/russia-government-and-institution-measures-in-response-to-covid.html
127 New York Times (2020). https://www.nytimes.com/reuters/2020/07/21/us/21reuters-eu-summit-climate-change-factbox.html
128 EURACTIV (2020). https://www.euractiv.com/section/energy/news/eu-boosts-just-transition-fund-pledging-e40-billion-to-exit-fossil-fuels/
129 S&P Global (2020).
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/all-the-green-elements-of-the-eu-s-8364-750b-recovery-proposal-58822603
130 Guardian (2020). https://www.theguardian.com/environment/2020/may/28/eu-green-recovery-package-sets-a-marker-for-the-world?CMP=share_btn_tw
131 S&P Global (2020).
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/all-the-green-elements-of-the-eu-s-8364-750b-recovery-proposal-58822603
Bloomberg (2020).
https://www.bloomberg.com/news/articles/2020-05-20/eu-to-unveil-world-s-greenest-virus-recovery-package?cmpid=BBD052120_GREENDAILY&utm_medium=em
ail&utm_source=newsletter&utm_term=200521&utm_campaign=greendaily
132 European Commission (2020). https://ec.europa.eu/commission/presscorner/detail/en/IP_20_1803
133 European Commission (2020). https://www.cnbc.com/2020/11/19/eu-gentiloni-worried-after-hungary-and-poland-veto-stimulus.html
134 Manila Bulletin (2020). https://mb.com.ph/2020/10/26/eu-allots-p3-76-b-for-ph-green-financing/
135 Euractiv (2020). https://www.euractiv.com/section/shipping/news/norways-green-hydrogen-ship-granted-e8m-in-eu-funding/
Greenness
45
of Stimulus
Index
1.9 Finland
Finland has passed a total of US$33 billion in fiscal measures.136
Composition of stimulus: The Finnish stimulus successfully addresses both pressing economic welfare issues
and longer-term climate and environmental concerns across a series of well-balanced investments. Initial
fiscal commitments supported public health, employment, and welfare,137 while subsequent supplementary
budgets have diversified the country’s spending throughout a range of environmental and climate conscious
initiatives. Public transport infrastructure has been secured through US$122 million of government funding,
alongside impressive commitments to climate change research (US$331 million) and nature conservation
efforts (US$16 million).138 The recapitalisation scheme of Finnair, early in the pandemic, works against the
country’s index score.139
Despite a negative baseline value, Finland’s commitment to ensure a sustainable and climate-friendly
response to the crisis results in a strong positive index score.
Table 11 Archetype policies announced in Finland
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
136 KPMG Covid-19 Policy Responses (2021). Finland - Measures in response to COVID-19 - KPMG Global (home.kpmg)
137 KPMG Covid-19 Response Measures (2020). Finland - Measures in response to COVID-19 - KPMG Global (home.kpmg)
138 Finnish Government (2020). Government reaches agreement on seventh supplementary budget proposal for 2020 (valtioneuvosto.fi)
139 KPMG Covid-19 Policy Responses (2020). Finland - Measures in response to COVID-19 - KPMG Global (home.kpmg)
Greenness
46
of Stimulus
Index
• Underlying sector context (b )
1
Performance across key indicators is mixed, resulting in a negative baseline score, close to zero.
• Specific environmental measures (b )
2
• The Finnish government has dedicated
• Fiscal expenditure on highway infrastruc-
US$331 million to the capitalisation of climate
ture development between some of the
change research funds.140 Such an investment
country’s largest cities serves to lower
is indicative of the country’s approach to the
Finland’s score, although the possibility of
crisis, committing to the development and
low emissions or electric vehicles using these
discovery of alternative energy sources,
roads in the future somewhat mitigates the
industrial processes, and consumer choices in
severity of this impact.142
light of environmental needs.
• A scrapping scheme for old cars has been
introduced recently to provide an incentive
for Finnish road users to abandon outdated,
climate damaging technology in favour of
modern, low emissions vehicles.141 This policy
is successfully complemented by government
investment to secure the viability of public
transport post-Covid, helping to shape a
smooth transition to low-carbon travel for
the entire country.
140 Finnish Government (2020). Government reaches agreement on seventh supplementary budget proposal for 2020 (valtioneuvosto.fi)
141 Finnish Government (2020). Government reaches agreement on seventh supplementary budget proposal for 2020 (valtioneuvosto.fi)
142 Finnish Government (2020). Government reaches agreement on seventh supplementary budget proposal for 2020 (valtioneuvosto.fi)
Greenness
47
of Stimulus
Index
1.10 France
France has passed a total of US$611 billion in fiscal measures.
143
Composition of stimulus: The French stimulus package includes €315 billion (US$347 billion) in loan
guarantees and credit reinsurance schemes for businesses, which will extend substantial support for
environmentally relevant sectors. France has also announced specific measures to support the transport
sector, including a €7 billion (US$7.7 billion) conditional bailout of airline Air France144 and €8 billion (US$8.8
billion) for the auto industry.145 A further stimulus package of €100 billion (US$110 billion) was confirmed at
the start of September 2020, which included €30 billion (US$33 billion) for an ‘Ecological Plan’ to support
environmental targets, including energy efficient building renovations, decarbonisation of industry, agricul-
tural transition, green energy and green transport.146 At the end of October, the country approved addition-
al stimulus worth US$24 billion to help SMEs and sectors disproportionately hit by the pandemic147.
France has been one of the most successful countries in attaching green conditions to bailouts and in
allocating stimulus funds directly to environmental improvement. Combined with other positive environ-
mental measures and a relatively good underlying environmental performance, France achieves one of
the highest scores on the index.
Table 12 Archetype policies introduced in France
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
143 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
144 New York Times (2020). https://www.nytimes.com/2020/04/25/business/air-france-klm-bailout.html
145 Government of France (2020). https://www.economie.gouv.fr/covid19-soutien-entreprises/mesures-plan-soutien-automobile
146 Government of France (2020). https://www.gouvernement.fr/france-relance
147 Politico (2020). https://www.politico.eu/article/france-plans-new-e20b-stimulus-package-ahead-of-second-lockdown/
Greenness
48
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is relatively good to achieve environmental targets, but much more action is
required to achieve environmental goals.
• Specific environmental measures (b )
2
• France has successfully attached conditions
• The French government has supported the
to bailouts in environmentally intensive sectors:
development of electric vehicles and EV
infrastructure in line with its target to ban the
- France has extended a US$7.7 billion deal to
sale of combustion engine vehicles by 2040.151
Air France, as part of an EU-approved deal
Key features of the US$8.9 billion stimulus to
between the Netherlands and France to bail
the transport sector include subsidies for
out the airline.147 The extension of the funding
electric vehicles, accelerating the deployment
includes US$4 billion in a loan and the remain-
of electric charging stations, and investing
ing amount available in guarantees. The
more than $390 million in green R&D across
French government has introduced two major
vehicle manufacturer supply chains.152 Efforts
environmental conditions: the reduction of
have also been made at the municipal level.
emissions by 50% by 2030, and a minimum
The Ile-de-France region, which includes Paris
standard of 2% renewable fuel by the same
and its extensive transit network, has allocated
time period.148 While the specifics of how this
more than US$1.5 billion to greening its bus
will be affirmed or enforced have still not been
network via biogas and electric models.153
released, this is a positive example of trans-
port funding being made conditional on future
• France has extended its rooftop solar PV
environmental performance, and is therefore
subsidy to households - originally expected
seen as a green response measure. Air France
to be phased out this spring.154 This extension,
has also announced it will reduce its domestic
coupled with a fast-tracking of requirements
flights as requested by the government to
for wind and solar projects in France, is
ease competition with train routes.149
providing a regulatory boost for green
energy projects during the crisis.
- Other examples of conditional bailouts
include US$5.4 billion for car manufacturer
• However, the French government has
Renault and aerospace manufacturer Airbus
announced some potentially harmful support
(US$8.9 billion).
for environmentally-intensive producers by
allowing the exemption of certain firms from
- Although these are all positive departures from
particular environmental regulations155, and
‘business-as-usual’, the stringency of French
extending tax breaks for off-road diesel use.156
conditional bailouts has been questioned, which
could threaten their effectiveness in promoting
• France’s new stimulus package ‘France
positive environmental outcomes.150
Relance’ includes several green stimulus
measures. They consist of US$7.4 billion for the
renovation of buildings for energy efficiency,
US$350 million for land use transition and
urban densification, US$1.4 billion for industry
decarbonization, US$264 million for circular
economy efforts, US$470 million for agricultural
transitions, US$9.6 billion for green transport
infrastructure, and US$6.1 billion for green
energy infrastructure. This new stimulus pack-
age boosts France’s index score significantly.157
147 New York Times (2020). https://www.nytimes.com/2020/04/25/business/air-france-klm-bailout.html
148 Routes Online (2020). https://www.routesonline.com/news/29/breaking-news/291047/air-france-told-by-government-to-drastically-cut-domestic-flying/
149 RFI (2020) http://www.rfi.fr/en/wires/20200527-air-france-cut-40-domestic-flights-after-bailout
150 Transport Environment (2020> https://www.transportenvironment.org/publications/air-frances-bailout-climate-conditions-explained
151 Europe Auto News (2020). https://europe.autonews.com/automakers/france-help-auto-sector-measures-worth-88b
152 French Economic Ministry (2020). https://www.economie.gouv.fr/covid19-soutien-entreprises/mesures-plan-soutien-automobile
153 Le Monde (2020).
https://www.lemonde.fr/planete/article/2020/10/21/l-ile-de-france-veut-se-debarrasser-de-tous-ses-bus-diesel-d-ici-a-dix-ans_6056867_3244.html
154 The Guardian (2020). https://www.theguardian.com/environment/2020/apr/17/polluter-bailouts-and-lobbying-during-covid-19-pandemic
155 Legifrance (2020).
https://www.legifrance.gouv.fr/affichTexte.do;jsessionid=80CDCAC7FA81B36CA4F682A1EC712CA9.tplgfr42s_1?cidTexte=JORFTEXT000041789766&dateTexte=&o
ldAction=rechJO&categorieLien=id&idJO=JORFCONT000041789298
156 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/france , Les Echos (2020).
https://www.lesechos.fr/industrie-services/immobilier-btp/taxation-du-gazole-nouveau-sursis-pour-les-travaux-publics-1216578
157 Government of France (2020). https://www.gouvernement.fr/france-relance
49
1.11 Germany
Germany has passed a total of US$1.4 trillion in fiscal stimulus.158
Composition of stimulus: Germany has announced a number of measures to support businesses, including
US$835 billion in loan guarantees from the Economic Stabilisation Fund (WSF) and the public sector devel-
opment bank KfW. Other measures, including healthcare equipment, hospital capacity and vaccine R&D
spending, as well as welfare measures, are excluded from our sectoral stimulus analysis. Substantial support
for businesses has also been granted by state governments. Additional stimulus includes the US$45 billion
‘Package for the Future’, which will provide substantial support for green initiatives. However, in relative
terms, this represents a small proportion of the total fiscal package. In contrast to other European govern-
ments, the German government has recently announced that furlough wage subsidies will be extended
until the end of 2021.159
Germany’s ‘Package for the Future’ counteracts large unconditional airline bailouts to result
in a positive index score.
Table 13 Archetype policies announced in Germany
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets, but better than most other
countries included in the GSI. Substantial improvements are required in order to achieve environmental targets.
158 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
159 Wall Street Journal (2020). https://www.wsj.com/articles/germany-boosts-already-hefty-coronavirus-stimulus-11598440184
Greenness
50
of Stimulus
Index
• Specific environmental measures (b )
2
Only the transport sector has received targeted funding under Germany’s broader economic stimulus.
• The German government has bailed out
• In July, Germany passed the ‘Coal Phase Out
three airlines, TUI Fly (US$1.98 billion),
Act’, which will provide funding for the phase
Lufthansa (US$9.9 billion) and Condor
out of coal-fired power plants in Germany
(US$600 million), without environmental
by 2038. The law allocates funding to coal
conditions.160 The Lufthansa bailout includes
workers and companies as well as to the
ceding a 20% equity stake to the German
regions where coal is relied upon for transfor-
government.161 While the equity stake could
mation of the economy. Although this act
yield green outcomes in the future through its
does allocate funds to fossil fuel producers,
membership of the board, at this time there
we have decided to label the act as a ‘bailout
are no explicit commitments to climate or
with green strings attached’, with the ‘strings’
environmental goals. For the purposes of
being the ultimate closure of coal plants.163
the GSI, Germany is still providing a bailout
without any green strings attached.
• In October, Germany announced that the
government would pay a subsidy to lower the
• At the start of June 2020, Germany
country’s ‘renewable supplement’, an addi-
announced an additional stimulus including
tional charge that consumers pay on their
a ‘Package for the Future’ which will provide
energy bills to finance renewable energy
support specifically to green initiatives
expansion, as a result of the COVID-19 crisis164.
totalling US$45 billion. A number of measures
Further, Germany’s lower house of parliament
have been announced to support the green
approved a tax on greenhouses gas emissions
transition in the energy and transport sectors,
which will raise retail prices of car fuels such
as well as some support for green agriculture
as gasoline and diesel, heating oil and natural
and industry. Specific measures include
gas. The move, which entails alterations to a
support for renewable electricity, funding for
law on fuel emissions trading, envisages a tax
hydrogen and investment in rail modernisa-
of 25 euros ($29.41) per tonne of carbon
tion, among other measures.162 Aside from the
dioxide equivalent in 2021, rising to 55 euros
EU’s proposed stimulus, this package is the
per tonne in 2025165.
first example of a large-scale green recovery
package. Nevertheless, green stimulus
• In November, Germany budgeted €3 billion
measures still represent a relatively small
to support the auto-sector in a green recovery.
proportion of Germany’s total fiscal stimulus.
€1 billion was earmarked for innovation and
industry transformation, €1 billion to extend
a customer rebate for EVs to 2025, and a final
€1 billion for a scrappage scheme for older
trucks to help private logistics companies
and municipalities modernise their fleets.166
160 Transport & Environnent (2020). https://www.transportenvironment.org/sites/te/files/Airline-bailout-tracker_8_May_2020.pdf
161 DW (2020). https://www.dw.com/en/lufthansa-accepts-terms-of-eu-germany-rescue-deal/a-53650294
Euractiv (2020) https://www.euractiv.com/section/aviation/news/lufthansa-board-gives-green-light-to-e9bn-bailout/
162 Carbon Brief (2020). https://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions
163 Energy Policy Tracker (2020). http://www.energypolicytracker.org/country/germany/, https://www.bundesrat.de/SharedDocs/beratungsvorgae-
nge/2020/0301-0400/0392-20.html
164 Recharge News (2020). https://www.rechargenews.com/transition/germany-lowers-renewa-
bles-surcharge-to-cushion-covid-impact-on-consumers/2-1-894231
165 Energy Policy Tracker (2020). http://www.energypolicytracker.org/country/germany/
166 Reuters (2020). https://de.reuters.com/article/us-germany-autos/germany-to-up-financial-aid-for-cars-sector-government-sources-idUSKBN27X1S7
Greenness
51
of Stimulus
Index
1.12 Iceland
Iceland has passed US$2 billion in total fiscal stimulus packages in response to COVID-19167.
Composition of stimulus: Iceland’s stimulus measures prioritise employment-focused initiatives, with the
government taking on up to 75% of salaries, investing heavily in the tourism sector, and deferring tax payments
in its first stimulus package.168 Subsequent investments maintained this theme, offering sizeable loans for SMEs,
supporting students, and abolishing hotel taxes.169 Most recently, an ‘8 Point Stability Package’ saw US$58
million invested in reimbursing VAT on labour, US$29 million in temporary payroll tax deduction, and a further
US$43 million offered to businesses to cover losses due to Covid-19.170 A rise in car tax of 2.5% that came into
force in January 2021 contributed positively to Iceland’s index score.171
Iceland’s negative index score is driven by prioritising employment and industry above environmental
and climate protection. The country’s negative baseline score is exacerbated by policies which encourage
‘business-as-usual’.
Table 14 Archetype policies announced in Iceland
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
167 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
168 Government of Iceland (2020). Government of Iceland | Icelandic Government announces 1.6bn USD response package to the COVID-19 crisis
169 Government of Iceland (2020).
https://www.government.is/news/article/2020/04/21/Government-of-Iceland-Announces-Second-Phase-of-Economic-Response-Package-to-the-COVID-19-Crisis/
170 Government of Iceland (2020), Government of Iceland | Eight stability measures
171 Reg Follower (2020). Iceland: Parliament approves a bill to implement tax measures under 2021 budget (regfollower.com)
Greenness
52
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• Financial support to the tourism sector is
• The increase in car tax by 2.5% from January
typified in its guaranteed credit facility for
2021174 is a successful green policy, as it aims to
IcelandAir Group, totalling US$117.86
reduce the attractiveness of unnecessary
million172. Such investments cause poor index
personal transit employing the use of fossil
performance by allowing the unconditional
fuels. Such a policy benefits Iceland’s index
continuation of climate damaging sectoral
score, but would be more successful if accom-
activities, such as the burning of non-renew-
panied by measures offering climate-friendly
able fuel sources.
alternatives, such as investment in low emis-
sions public transport.
• Funding has been dedicated to sustaining
innovation, companies investing in growth,
and research activities, which positively
influences Iceland’s index score173.
172 Government of Iceland (2020).
https://www.government.is/news/article/2020/08/18/Icelandair-Group-hf.-Government-Guaranteed-Credit-Facility-Approved-by-the-Icelandic-Government/
173 Government of Iceland (2020). Government of Iceland | Eight stability measures
174 Reg Follower (2020). Iceland: Parliament approves a bill to implement tax measures under 2021 budget (regfollower.com)
Greenness
53
of Stimulus
Index
1.13 India
India has passed US$325 billion in total fiscal stimulus packages in response to COVID-19.
175
Composition of stimulus: India’s initial package focused on support for healthcare and welfare, but further
measures have included substantial support for businesses, and targeted support for the agriculture sector.
Its most recent stimulus package, worth roughly US$10 billion, includes support for government workers
and for infrastructure investments.176 India’s November 2020 package features US$35 billion in stimulus to
increase production, attract investments in ten key sectors, fund the development of a COVID-19 vaccine,
and boost consumer demand and manufacturing.177
India’s negative index score is driven by poor underlying environmental performance, and specific harmful
stimulus measures including substantial support for coal. The government has announced some green
stimulus measures, which features a US$26.5 billion investment in biogas and cleaner fuels. The approval
of US$3.5 billion in production incentives for high efficiency solar PV and Advanced Chemistry Cell
battery along with different state announcements on renewable energy plans have led to an increase in
India’s score in this latest release.
Table 15 Archetype policies announced in India
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
175 https://www.ft.com/content/5734f333-e4d7-4ebf-9de2-220e537da3f0
176 CNBC (2020). https://www.cnbc.com/2020/10/13/india-economy-economists-not-impressed-by-latest-fiscal-stimulus.html
177 AP News (2020). https://apnews.com/article/india-coronavirus-pandemic-economic-stimulus-narendra-modi-economy-899af3f2eaf32e4f9deb7b535b1ee03c
Greenness
54
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• The coal plan in India is coupled with a
• India has also fast-tracked environmental
revenue share arrangement between the
impact assessments, to increase the speed of
government and private companies to
project development.187 This fast-tracking is a
promote the mining and gasification of coal.
driver of the negative score for India’s indus-
This reform and rebate in revenue share is a tax
trial sector.
incentive for polluting energy producers.
Further support for coal includes rebates on
• However, India has also channelled US$780
coal extraction,178 and the removal of coal
million towards an afforestation programme
washing regulations for supply to thermal
designed to stimulate the rural and semi-urban
power plants.179 At the end of November 2020,
economy while providing essential ecosystem
US$1.15 billion was secured as a loan for the
benefits.188 This funding is provided through the
development of a project of power generation
Compensatory Afforestation Management and
using coal in Bihar180. The government has also
Planning Authority (CAMPA) fund.189 The specific
sought to replace imported coal with Indian
jobs created through this fund include plantation
coal to boost the domestic sector.181
work, forest management and wildlife protec-
tion. These jobs will be available for tribal
• India has also allocated US$6.6 million for
communities.190 This programme both provides
transport infrastructure to help bring coal from
income to vulnerable members of society
India’s state-run mines to market.182 This direct
through a nature-based solution, and contributes
investment into infrastructure for a polluting
to the small green aspect of India’s stimulus.
energy source is in direct opposition to environ-
mental commitments, as mining has a large and
irreversible impact on the environment.
• Other potentially damaging measures in
the Indian energy sector include the use of a
domestic price regime to reduce the price of
natural gas183, and taking advantage of low oil
prices to secure a strategic reserve.184 While
this is not a directly damaging policy, this is
a lock-in for the energy and residential sector
as it ensures that it has enough oil when the
future US embargo on Iran is enacted.185 India
also approved US$620 million towards raising
ethanol production capacity to suck out
surplus sugar as well as cut oil imports186.
178 Indian Press Information Bureau (2020). https://pib.gov.in/PressReleasePage.aspx?PRID=1625305 , Energy Policy Tracker (2020). https://www.energypolicytrack-
er.org/country/india
179 The Wire (2020). https://thewire.in/environment/coal-washing-environment-ministry-changing-rules
180 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india ,
181 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , Coal India (2020). https://www.coalindia.in/ourbusiness/specialspote-auction-
scheme2020forimportsubstitution.aspx .
182 LiveMint (2020). https://www.livemint.com/news/india/fm-sitharaman-fast-tracks-industrial-reforms-to-aid-growth-recovery-11589639649764.html
183 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , Live Mint (2020). https://www.livemint.com/industry/energy/amid-coronavi-
rus-outbreak-india-reduces-natural-gas-price-to-record-low-11585673501734.html .
184 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , Bloomberg (2020). https://www.bloomberg.com/news/arti-
cles/2020-04-08/india-to-buy-up-middle-eastern-oil-for-its-strategic-reserves .
185 Livemint (2020). https://www.livemint.com/news/india/india-has-secured-additional-oil-supplies-to-tide-over-iran-sanctions-1556806947754.html Recovering
Better (2020) The Case for a Sustainable and Resilient Recovery in India
186 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india
187 QZ (2020) https://qz.com/india/1851634/india-fast-tracks-green-clearance-to-spur-coronavirus-hit-economy/
188 India TV (2020). https://www.indiatvnews.com/business/news-nirmala-sithara-
man-final-phase-of-announcement-economic-stimulus-package-11-am-live-updates-617884
189 Jagran (2020). https://english.jagran.com/business/economic-pack-
age-tranche-2-mnrega-support-free-foodgrains-for-migrants-rs-30000-crore-additional-credit-support-for-farmers-10011841
190 Economic Times (2020). https://bfsi.economictimes.indiatimes.com/news/policy/key-highlights-of-the-finance-ministers-whole-economic-package/75797903
Greenness
55
of Stimulus
Index
• The Indian government has introduced
• India’s manufacturing sector received
some measures to support renewable energy.
US$19.8 billion in new stimulus to boost
In particular, it has waived charges for interstate
production, attract foreign investments, and
transmission of wind and solar power until
increase exports and employment. The ten
December 2022191. Several states have also
sectors prioritised by the production linked
announced new renewable policies. The
incentive (PLI) schemes include electronics,
government of Andhra Pradesh has announced
pharma, textile, food products, telecom and
a Renewable Energy Export Policy, which
speciality steel. The automobile and auto
establishes renewable energy equipment
component sectors received the largest share
manufacturing facilities.192 Most recently,
of funding (US$7.7 billion) to increase produc-
the State of Maharashtra proposed to deploy
tion and promote exports.203 Incentives were
17,385MW of renewable power by 2025, and
also dedicated to the development of renewa-
the government of Gujarat announced a
ble energy. For example, incentives for the
new solar policy193. Those announcements
production of high efficiency solar PV totalled
contributed to the increase in India’s score.
roughly US$607 million204. The Cabinet also
approved US$2.4 billion in incentives for
• Other green stimulus measures include
manufacturers to produce Advanced Chemis-
support for electric vehicles in Delhi, where
try Cell batteries. Those incentives contribut-
the government is aiming to increase electric
ed to India’s improved score.
vehicles to 25% of all new vehicle registrations
by 2024.194
• India’s Sustainable Alternative Towards
Affordable Transportation (SATAT) initiative
• India’s significant (roughly US$800 million)
features US$26.5 billion to set up 5,000
investments into coal machinery195 are slightly
compressed biogas plants to boost the
offset by roughly US$100 million in financing
availability of affordable and cleaner transport
extended to Sri Lanka to build solar infrastruc-
fuels. Currently, 1,500 of these plants have
ture.196 India’s improving score has been
been approved and are at various stages of
powered by unquantified measures including
execution.205 India also committed to setting
a ‘Green Railway Initiative’ which will increase
up 1,000 liquefied natural gas stations in the
electrification of trains,197 minimum thresholds
next three years.206 While liquefied natural gas
for solar production from generators and bidders
generates less emissions than petroleum,
in the utility sector,198 loans to farmers to imple-
it is not a renewable fuel.
ment solar technologies on farms,199 incentives for
solar panel and LED light manufacturing200 and
the commissioning of new electric bus charging
stations.201 Most recently, the power ministry also
made it mandatory for all discoms to comply
with Energy Conservation Act to decrease
energy losses and increase profitability202.
191 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , The Economic Times (2020). https://energy.economictimes.india-
times.com/news/renewable/govt-grants-ists-waiver-extension-for-solar-wind-projects-until-june-2023/77390466.
192 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , The Economic Times (2020). https://energy.economictimes.india-
times.com/news/renewable/andhra-pradesh-govt-announces-renewable-energy-export-policy/77028959
193 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india
194 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india , The Hindu (2020). https://www.thehindu.com/news/cities/Delhi/kejriwal-an-
nounces-notification-of-delhi-electric-vehicle-policy/article32293392.ece
195 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://www.business-standard.com/article/companies/cil-fina-
lises-rs-5-900-cr-heavy-machinery-contracts-to-bolster-production-120092300988_1.html
196 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://energy.economictimes.indiatimes.com/news/renewable/in-
dia-offers-100-million-line-of-credit-to-lanka-for-solar-projects/78327563
197 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://www.pib.gov.in/PressReleseDetail.aspx?PRID=1638269
198 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://economictimes.indiatimes.com/industry/energy/pow-
er/round-the-clock-power-supply-discoms-can-now-bundle-thermal-solar-power-for-24x7-distribution/articleshow/77210961.cms?from=mdr
199 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=50310
200 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://mercomindia.com/tamil-nadu-new-electronics-hard-
ware-manufacturing-policy/
201 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india, https://energy.economictimes.indiatimes.com/news/pow-
er/govt-sanctions-670-electric-buses-241-charging-stations-under-fame-scheme/78312963
202 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india,
203 Business Insider (2020). https://www.businessinsider.in/policy/economy/news/indian-gov-
ernment-approves-the-pli-scheme-for-10-sectors/articleshow/79172901.cms
204 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/india
205 Government of India (2020). https://pib.gov.in/PressReleasePage.aspx?PRID=1674428
206 Government of India (2020). https://pib.gov.in/PressReleasePage.aspx?PRID=1673998
Greenness
56
of Stimulus
Index
1.14 Indonesia
Indonesia has passed US$75 billion in fiscal stimulus measures.207
Composition of stimulus: Indonesia’s initial stimulus package focused largely on support for healthcare and
welfare. More recent measures involve substantial support for businesses including tax incentives, loans and
guarantees – with a large proportion expected to be directed towards industry and agriculture. Additionally,
some support has been given to citizens and businesses in the form of subsidies for electricity generation and
fuel prices. The Indonesian Government’s 2021 infrastructure budget allocates US$28.5 billion towards sustaina-
ble, labour-intensive infrastructure developments. The infrastructure projects will strengthen digital infrastruc-
ture and support infrastructure developments in industry, tourism, water, sanitation, housing and national health.
In the energy and electricity sector, projects will include the construction of a natural gas network for house-
holds and support for rooftop solar.208
Indonesia has implemented a mix of positive and negative policies, resulting in a negative index score that
continues to be largely driven by poor underlying environmental performance. The decrease in Indonesia’s
score in this edition is driven by the passing into law of the Omnibus bill which has been criticised for having
potentially far-reaching negative consequence for nature and climate alike.
Table 16 Archetype policies announced in Indonesia
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
207 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
208 Indonesia Ministry of Finance (2020).
https://www.kemenkeu.go.id/publikasi/berita/pemerintah-siapkan-anggaran-infrastruktur-rp417-8-triliun-untuk-tahun-2021/
Greenness
57
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• In November 2020 the Indonesian govern-
• The Indonesian fiscal stimulus package has
ment passed into law the Omnibus Bill.
also included potentially damaging financial
Criticised for the potentially far-reaching
support to polluting, state-owned enterprises
consequences for nature and climate alike,
in the energy, industry and transport sectors.
the bill appears to serve business interests at
The latter includes public transport, which we
the expense of social and environmental
define as green.212
welfare requirements. Inciting activism both
domestically and from foreign investors, the
• However, some positive measures have been
bill weakens existing environmental compli-
announced, including subsidies for use of
ance mechanisms, with the potential to
biodiesel fuels. The Indonesian government has
encourage devastating deforestation. The
also reduced VAT and income tax for various
new legislation requires developers only to
renewable energy projects.213 It has also elimi-
self-declare cooperation with environmental
nated some financial penalties for Independent
standards, and thus severely weakens the
Power Producers, to spur renewable energy
country’s infrastructure of accountability for
production.214
nature and climate damaging activity. As
• After initially announcing the relaxation of
such, the bill works against the index score of
regulations for land use and forestry, which
Indonesia, which suffers a fall in this edition.209
risked causing significant damage to Indone-
• A mining law announced in early May 2020
sia’s remaining forest, this proposed policy
expanded the land area available to miners,
was repealed.
designed to stimulate more value-added
• Indonesia’s negative environmental perfor-
production of mined coal and minerals.210
mance is exacerbated by subsidies that will
This law has required mining companies to
lower the cost of largely fossil fuel generated
allocate exploration funds and to increase
electricity,215 and the price of industrial gas.216
exploration each year.211 The law also extends
royalty rates for large miners. The new law
has very few provisions to reduce environ-
mental impact, except the requirement to
complete land restoration projects. The
purpose of the bill is to develop downstream
mining industries, and to centralise the
permitting process, but this involves continu-
ing investment in a polluting industry, and
encouraging its expansion.
209 Mongabay (2020).
210 Reuters (2020). https://www.reuters.com/article/indonesia-mining/indonesia-passes-new-mining-law-revisions-met-with-praise-and-protest-idUSL4N2CU2Q4 ,
Detik Finance (2020). https://finance.detik.com/energi/d-5011570/pasal-pasal-mencurigakan-dalam-ruu-minerba
211 Jakarta Post (2020). https://www.thejakartapost.com/news/2020/05/14/explainer-new-rules-in-revised-mining-law.html
212 Database Peraturan (2020). https://peraturan.bpk.go.id/Home/Details/136615/pp-no-23-tahun-2020 , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/indonesia
213 Indonesian Ministry of Energy and Mineral Resources (2020).
https://www.esdm.go.id/id/media-center/arsip-berita/petakan-dampak-covid-19-di-bisnis-ebt-pemerintah-prioritaskan-proyek-padat-karya , Energy Policy Tracker
(2020). https://www.energypolicytracker.org/country/indonesia
214 Ibid.
215 CNBC Indonesia (2020). https://www.cnbcindonesia.com/news/20200405125902-4-149854/mau-bebas-tagihan-pln-3-bulan-caranya-bisa-lewat-whatsapp,
Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/indonesia
216 Indonesian Ministry of Energy and Mineral Resources (2020).
https://jdih.esdm.go.id/storage/document/PERMEN%20ESDM%20No%208%20Tahun%202020_SALINAN.pdf , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/indonesia
Greenness
58
of Stimulus
Index
1.15 Italy
Italy has passed US$574 billion in fiscal stimulus measures217.
Composition of stimulus:218 Italy’s initial ‘Cura Italia’ package was largely directed at healthcare, welfare and
emergency support for businesses. The ‘Liquidity Decree’ is providing €400 billion (US$441 billion) in state
loan guarantees to businesses, and the ‘Relaunch’ package includes additional measures both for families and
for businesses. These measures include the €3 billion (US$3.3 billion) bailout of airline Alitalia219, with Italy’s
industrial sector also receiving a substantial share of stimulus. In August 2020, the Italian government
announced an additional €25 billion (US$28 billion) package to provide labour and social support alongside
further measures for businesses. In late October, a smaller package of €5.4 billion was passed to support
businesses affected by new lockdown measures. December saw the announcement of the Ristori Quarter
Decree, dominated by tax relief and internationalisation support for businesses.220
Italy has a slightly negative score, which is mainly driven by its baseline environmental performance.
Few specific environmental measures have been announced, and as such, Italy continues to perform
worse than its European peers.
Table 17 Archetype policies announced in Italy
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
217 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
218 IMF Policy Tracker (2020), Forbes (2020) https://www.forbes.com/sites/irenedominioni/2020/04/07/ita-
ly-unveils-unprecedented-435-billion-plan-to-support-coronavirus-hit-economy/#6d0c387f7214
219 https://www.transportenvironment.org/sites/te/files/Airline-bailout-tracker_8_May_2020.pdf
220 Italian Ministry of Economic Development (2020).
Greenness
59
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• Italy has extended a US$3.3 billion bailout to
• US$41.3 million has been allocated to Italian
Alitalia, provided it does not lay off employ-
municipalities with fewer than 1,000 residents
ees. The Italian government has also planned
for the implementation of public energy
to take full ownership of the airline since the
efficiency projects and sustainable territorial
bailout, and is considering injecting further
development.223 The government has also
spending over the coming months. The airline
provided support for active transport by
has had no green conditions imposed upon its
supporting a bike and scooter scheme224,
operations. Given the Italian government is
investing in active transport infrastructure in a
looking for a buyer for the airline, there is little
number of cities, and by incentivising walking
belief that nationalisation will bring it under
and cycling.225
stricter climate or environmental targets.
• Stimulus has also included support for
• The Italian government has introduced the
electric vehicles, including a subsidy of up
‘Econbonus’ scheme, which gives 110% tax
to €10,000 that will last from August until
deductions for the private installation of
the end of 2020.226 Subsidies have also been
energy efficiency retrofits (such as heat
announced for conventional vehicles,
pumps), solar PV and electric vehicle charg-
although these are smaller than those availa-
ing points.221 For solar PV, this has increased
ble for electric vehicles.227 Resources were
from 50%.222
also dedicated to support local public trans-
port systems in August 2020.228
• The Italian government has eliminated the
‘safeguard clauses’ on VAT and excise duties.
These safeguard clauses automatically
increased the rates of the VAT and excise
duties on certain fuel products.229
221 Carbon Brief (2020). https://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions , Italian Ministry of
Economy and Finance (2020). https://www.mef.gov.it/focus/Decreto-Rilancio-le-misure-per-rimettere-in-moto-il-Paese/#cont4
222 PV Magazine (2020).
https://www.pv-magazine.com/2020/05/27/covid-19-weekly-round-up-residential-systems-in-italy-will-get-a-110-tax-rebate-and-uk-consumers-are-being-paid-
to-turn-appliances-on-as-coronavirus-turns-the-energy-world-upside-down/
223 Italian Ministry of Economic Progress (2020).
https://www.mise.gov.it/index.php/it/incentivi/energia/comuni-progetti-di-efficientamento-energetico-e-sviluppo-territoriale-sotto-ai-mille-abitanti
224 Carbon Brief (2020). https://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions , Italian Government
(2020). http://www.governo.it/it/articolo/comunicato-stampa-del-consiglio-dei-ministri-n-45/14602 .
225 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/italy.
226 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/italy , Italian Senate of the Republic (2020).
http://www.senato.it/japp/bgt/showdoc/18/DDLPRES/0/1157541/index.html?part=
227 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/italy , Italian Government (2020).
https://www.mise.gov.it/index.php/it/incentivi/energia/comuni-progetti-di-efficientamento-energetico-e-sviluppo-territoriale-sotto-ai-mille-abitanti
228 Energy Policy Tracker (2021). Italy - Energy Policy Tracker
229 Italian Ministry of Environment and Finance (2020).
https://www.mef.gov.it/focus/Decreto-Rilancio-le-misure-per-rimettere-in-moto-il-Paese/#cont4%20Accessed%2011%20June%202020
Greenness
60
of Stimulus
Index
1.16 Japan
Japan has passed a total of US$2.78 trillion in fiscal measures in response to COVID-19.230
Composition of stimulus: The first two stimulus packages by Japan amounted to ¥117.1 trillion each
(US$1.08 trillion), with measures including funding for health, welfare and employment protection.
In addition to Japan’s airline sector guarantee, a large share of the support for businesses is directed
at Japan’s industry and transport sectors. In December 2020, Japan announced a third stimulus package,
totalling US$606 billion. This package consists of three pillars: structural reforms, measures to prevent
the spread of COVID-19, and increased funding for natural disaster resilience.
Japan had initially announced little in the way of specific environmental measures, so its slightly nega-
tive index score is driven mostly by its underlying environmental performance. However, some measures
in the last stimulus package aimed at promoting carbon neutrality to 2050 contributed to increase
Japan’s score.
Table 18 Archetype policies announced in Japan
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
230 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
Greenness
61
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is somewhat insufficient in achieving environmental targets.
• Specific environmental measures (b )
2
• Although it held an online event to discuss
• However, in December, Japan released a
shifting the future economic recovery towards
stimulus package with US$19.2 billion towards
green stimulus, the so-called ‘June Momen-
the promotion of carbon neutrality by 2050,
tum’,231 Japan had announced little in the way
of which US$18.4 billion was dedicated to
of specific environmental measures until end
funding for the development of innovative
of November 2020. Some small measures to
technologies for carbon neutrality. Other
support a zero-carbon society (US$46 million),
policies included funds for the promotion of
such as for solar power generation facilities,
effective use of sewerage resources to realise
have been announced, but this is a tiny
a green society and subsidies for clean
fraction of Japan’s total stimulus package.
energy cars. Japan also approved US$16.5
Additionally, Japan has passed measures that
million for the acceleration of the construc-
contribute to support a carbon-intensive
tion of the technological basis for a fusion
economy, such as a reduction of environmental
DEMO reactor. Beyond policies with direct
performance taxes on certain automobiles.232
environmental effects, US$9.6 billion was also
set aside to accelerate digitalisation in public
schools233. The allocation of the December
stimulus towards projects with beneficial
environmental effects improved Japan’s
score in this edition of the GSI.
• The Japan Bank for International Coopera-
tion has issued a US$791 million guarantee for
Japan Airlines. This guarantee will finance the
import of eight aircrafts with the goal of
improving the international competitiveness
of the Japanese aviation industry.234
231 Climate Change News (2020). https://www.climatechangenews.com/2020/06/01/japan-launch-green-recovery-platform-ministerial-meeting/
232 Cabinet Office of Japan (2020). https://www5.cao.go.jp/keizai1/keizaitaisaku/2020/20200420_economic_measures_all.pdf , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/japan
233 Focus Economics (2020).
https://www.focus-economics.com/countries/japan/news/fiscal/government-announces-third-stimulus-package-to-bolster-economic-recovery, Energy Policy
Tracker (2020). https://www.energypolicytracker.org/country/japan
234 Japan Bank for International Cooperation (2020). https://www.jbic.go.jp/en/information/press/press-2020/0609-013422.html
Greenness
62
of Stimulus
Index
1.17 Mexico
Mexico has passed a total of US$28 billion in fiscal stimulus measures.235
Composition of stimulus: Alongside health and social programmes, Mexico’s stimulus package includes
support for businesses through micro-loans of up to 25,000 Mexican Pesos (around US$1,000). A large
proportion of the stimulus package is, however, directed towards infrastructure investments that are likely to
reinforce Mexico’s environmentally-intensive trajectory. Since the previous release, the Mexican Government
has not approved or announced any further stimulus packages.
Support for its polluting energy sector is a significant driver of Mexico’s negative index score.
Table 19 Archetype policies announced in Mexico
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
Mexico has introduced specific measures in environmentally relevant sectors. These included:
• The Mexican government has committed part of its US$28 billion spending package to a flagship oil
refinery and new airport development.236 Both major projects will receive funding under the COVID-19
stimulus package, and are a further investment in environmentally-intensive infrastructure. Further harmful
support for the energy sector includes tax breaks for Pemex, Mexico’s state-owned oil company.237
• However, the Mexican government has also invested in active transport infrastructure in response to
COVID-19, by investing in the expansion of Mexico City’s cycling network, with 54km in new routes.238
235 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 , Reuters (2020).
https://www.reuters.com/article/us-health-coronavirus-mexico-budget/too-little-too-late-mexico-unveils-26-billion-coronavirus-spending-shift-idUSKCN22423Q
236 Mexican Government (2020).
https://lopezobrador.org.mx/2020/04/05/presidente-anuncia-acciones-para-la-reactivacion-economica-ante-covid-19-en-primer-informe-del-ano-al-pueblo-de-
mexico-2/
237 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/mexico ,
https://lopezobrador.org.mx/2020/04/05/discurso-del-presidente-andres-manuel-lopez-obrador-en-su-informe-al-pueblo-de-mexico/
238 Financial Times (2020). https://www.ft.com/content/989be646-90ef-43a0-b17a-7ab191e6bec9 , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/mexico
63
1.18 Norway
Norway has passed US$31 billion in fiscal stimulus measures.239
Composition of stimulus: New to this release, Norway’s stimulus measures perform relatively poorly in compar-
ison to its Nordic peers. An initial stimulus package focused on supporting the transport sector through
bailouts and carbon tax relief240, among other mechanisms, has exacerbated Norway’s negative baseline index
value. Large sums committed to the fossil fuel industry, without accompanying ‘green strings’, are largely
responsible for the country‘s index behaviour. A ’Green Transition’ package somewhat offsets this negative
score, through stimulus measures designed to encourage environmental research, promote green shipping, and
increase offshore wind capacity.242 Most recently, Norway has financially supported a renewable energy advo-
cacy organisation for losses suffered throughout the pandemic.243
Norway’s weak index performance stems from its negative baseline score and its failure to include green
conditions on support given to the fossil fuel industry, though increasingly diverse green policies serve to
partly mitigate the negative score.
Table 20 Archetype policies announced in Norway
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
239 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
240 ADB Covid Policy Database (2020).
241 Government Norway (2020). Package of measures to support the oil and gas industry and the supply industry - regjeringen.no
242 Energy Policy Tracker (2021). Norway - Energy Policy Tracker
Greenness
64
of Stimulus
Index
• Underlying sector context (b )
1
The baseline performance in Norway is marginally below that required to meet targets across key sectors.
• Specific environmental measures (b )
2
Norway has introduced a variety of measures in environmentally relevant sectors, including:
• The introduction of a ‘Green Transition’ plan
• Resilience and agricultural measures
which includes measures to promote a circular
include funds dedicated to avalanche and
economy, increase the budgetary capacity of
landslide protection, and improved coastal
local authorities to support green change, and
monitoring through investment in the Insti-
boost offshore wind and low-emissions
tute of Marine Research.245
technology research.243
• An upcoming ‘Comprehensive Climate
• Airline bailouts covering losses due to
Action Plan’ may see Norway’s score rise
Covid-19 have perpetuated ‘business-as-usual’
considerably in the future and is expected to
environmental patterns, though measures
enforce a variety of carbon tax measures
have since been introduced which will exempt
facing households and consumers, while
low or zero-emissions aircraft from passenger
maintaining industry level commitments to
tax in the future.244
pollution abatement and climate change
mitigation made at the European level.246
243 Government Norway (2020). Package of measures to support the oil and gas industry and the supply industry - regjeringen.no
244 Government Norway (2020). Statsbudsjettet 2021: A til Å - regjeringen.no
245 Government Norway (2020). Statsbudsjettet 2021: A til Å - regjeringen.no
246 Government Will-point Overview (2021). Oversikt over alle regjeringa vil-punkta i meldinga
Greenness
65
of Stimulus
Index
1.19 The Philippines
The Philippines has passed US$17 billion in fiscal stimulus measures.
Composition of stimulus: The Philippines’ stimulus package includes support to several sectors of the
economy, including the healthcare, agriculture and tourism sectors. Support for the healthcare sector
involved the purchase of medical equipment, the production of test kits, support for medical profession-
als, as well as increases in health system capacity and the development of a standby fund for government
purchases of COVID-19 vaccines. The government has also extended welfare measures, including wage
subsidies for small businesses and low-income households, assistance for overseas Filipino workers, and
support for a programme to up-skill workers. Further support was granted to the agriculture and tourism
sectors, including a rice programme to boost buffer stocks, as well as loan assistance for smallholder
farmers and small enterprises engaged in agriculture and fishing. Since the previous release, the Philip-
pines has not passed or announced any further stimulus measures. This update notes the Philippines
recently released its 2021 Budget, though does not consider this programme to be a direct COVID-19
stimulus package.
The Philippines has implemented a mix of positive and negative policies, resulting in a negative index
score that is largely driven by poor performance in agriculture, industry and transport.
Table 21 Archetype policies announced by Philippines
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
Greenness
66
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.247
• Specific environmental measures (b )
2
The Philippines has introduced specific measures in environmentally relevant sectors, including:
• The government has imposed a 10% import
• In the aviation sector, the Department of
duty on crude oil and refined petroleum
Transportation (DOTr) instructed the Manila
products to augment government funds to
International Airport Authority (MIAA) and
address COVID-19.248
the Civil Aviation Authority of the Philippines
(CAAP) to extend the airport concessionaires
• In an effort to provide economic relief for
rental holidays for one month, and defer
households during the pandemic, the Energy
rental charges in the succeeding month, to
Regulator Commission (ERC) suspended the
cover the enhanced community quarantine
pass-on of the feed-in-tariff allowance
period. This provides a cushion for the
(FiT-All) charge in electric bills for one month.
economic impact of COVID-19 on the environ-
This enables a PHP 0.04/kWh reduction in the
mentally-intensive aviation industry.250
electricity bill for 19.16 million electricity
consumers in Luzon. However, this will not
• The government’s plan to help the economy
affect the economic viability of renewable
recover includes a plan to increase govern-
energy developers, as the FiT fund adminis-
ment spending on infrastructure in order to
trator, the National Transmission Corporation
stimulate the economy through job creation
(TransCo) is ordered to continue with the
and enhanced connectivity.251 The government
payment of FiT obligations to FiT-eligible
of the Philippines already increased its
renewable energy developers and ensure the
infrastructure spending in the 2020 budget
sustainability of their operations.249
by 12%, which includes an initiative that seeks
to modernise highways and urban rail projects
as well as to upgrade airports and seaports.252
247 The Philippines is not included in the Germanwatch Climate Change Performance Index (https://germanwatch.org/en/CCPI). To account for this, we
adjusted its baseline weighting to only incorporate its Environmental Performance Index score and Climate Action Tracker score.
248 Philippine News Agency (2020). https://www.pna.gov.ph/articles/1102775
249 Energy Regulatory Commission of Republic of Philippines (2020).
https://www.erc.gov.ph/ContentPage/61946#:~:text=The%20Energy%20Regulatory%20Commission%20(ERC,in%20the%20country%20and%20the
250 Department of Transportation of Republic of Philippines (2020).
https://www.dotr.gov.ph/55-dotrnews/1101-dotr-readies-contingency-actions-for-ph-aviation-sector-amid-covid-19-quarantine-instructs-implementation-of-re
ntal-holidays-and-deferred-payment-of-rental-chargers-for-airport-concessionaires.html
251 The Philippine Star (2020). https://www.philstar.com/business/2020/04/06/2005680/government-boost-infrastructure-spending-cushion-covid-impact
252 Reuters (2020). https://uk.reuters.com/article/philippines-budget/philippines-plans-to-build-up-infrastructure-spending-in-2020-budget-idINKCN1VA0P7
Greenness
67
of Stimulus
Index
1.20 Russia
Russia has passed a total of US$129 billion in fiscal stimulus measures.253
Composition of stimulus: Alongside healthcare and welfare measures, Russia has included support for
businesses in its stimulus package. These include loan guarantees, interest rate subsidies, tax deferrals and
delays in social contributions for SMEs in affected industries. Additional data and a more granular break-
down of previously announced stimulus flows has since been added, showing that a large part of the previ-
ously announced stimulus is flowing into environmentally relevant sectors, which resulted in a further drop
of Russia’s GSI score. On November 4th 2020, Vladimir Putin signed a decree for the reduction of greenhouse
gas (GHG) emissions, which specifies the development of a strategy to reduce GHG emissions by 70% by
2030 compared to 1990 levels and increase absorption.254 This update results in a slight increase in the
Russian index score, primarily driven by removing tax relief from several fossil fuel extraction and refining
processes.255 Gazprom’s US$8 billion commitment to ‘gassify’ the country works against further increases
in Russia’s index performance.256
Russia has large negative scores in industry and transport, which are receiving a large proportion of stimulus
support. Reliance on fossil fuels further worsens the country’s index performance.
Table 22 Archetype policies announced in Russia
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
253 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
254 Government of Russia (2020). http://publication.pravo.gov.ru/Document/Text/0001202011040008 , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/russia/
255 Energy Policy Tracker (2021). Russia - Energy Policy Tracker
256 Energy Polic Tracker (2021). Russia - Energy Policy Tracker
Greenness
68
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• Russia has introduced a deferral of loan
• Along with health and social welfare
payments for ‘hard hit’ sectors which are
stimulus measure updates, this update
classified as small and medium enterprises
incorporates additional granularity of the
(SMEs).257 This loan deferral for SMEs will
fiscal flows, showing more flow into environ-
include any extended cash received by these
mentally relevant sectors.262 Russia has
businesses. The ‘hard hit’ sectors include
provided US$4.4 billion to support systemat-
leisure, services, transportation, travel and
ic companies with interest-free loans, subsi-
aviation. By offering loan deferral for these
dies and tax deferrals, of which US$145
firms it is a continuation of business-as-usual
million was allocated to interest rate subsi-
investment into polluting industries. No
dies and US$930 million to tax deferrals.
conditions or additional funding has been
available to green sectors.
Removing tax relief for mineral extraction and
fossil fuel refining processes, though motivat-
• Specific support for airports and airlines
ed by a desire to raise revenue, has contribut-
totals around US$500 million with no green
ed to the increase in Russia’s score in this
strings attached.258 Unconditional support
update. A declaration to investigate the
(US$360 million) has also been provided to
potential of hydrogen fuel sources, though
the automotive industry.259
low in ambition and commitment, also serves
to raise the score slightly.263
• Further harmful environmental measures
include tax incentives for oil and gas explora-
tion in the Arctic,260 and an increase in the
subsidy for converting vehicles from petrol to
gas from 30% to 60% of conversion costs.261
257 KPMG Insights (2020). https://home.kpmg/xx/en/home/insights/2020/04/russia-government-and-institution-measures-in-response-to-covid.html
258 Russian Government (2020). http://government.ru/en/docs/39681/ , Kommersant (2020). https://www.kommersant.ru/doc/4363810 , Energy Policy Tracker
(2020). https://www.energypolicytracker.org/country/russia
259 Russian Government (2020). http://government.ru/news/39724/ , Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/russia/
260 Reuters (2020). https://www.reuters.com/article/us-russia-gas-arctic-idUSKBN21537F , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/russia
261 Russian Government (2020). http://government.ru/news/39909/ , Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/russia
262 Russian Government (2020), Plan economic impact new coronavirus infections (План преодоления экономических последствий COVID-19),
http://government.ru/support_measures/
263 Energy Policy Tracker (2021). Russia - Energy Policy Tracker
Greenness
69
of Stimulus
Index
1.21 Saudi Arabia
Saudi Arabia has passed US$35 billion in fiscal stimulus measures.264
Composition of stimulus: Saudi Arabia’s stimulus package includes the suspension of some government taxes to
increase private sector liquidity, increased health spending, expansion of unemployment funds to private compa-
nies to encourage retention of workers, electricity subsidies to commercial, industrial and agricultural sectors,
increased duties on imported goods, a new tourism fund, and a programme to help businesses defer impending
loan payments. Since the last report, no new stimulus measures have been announced or implemented.
Saudi Arabia’s index score continues to be driven almost entirely by its poor underlying environmental
performance, which is representative of the Kingdom’s reliance on fossil fuel production.
Table 23 Archetype policies announced in Saudi Arabia
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is critically insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
- To encourage economic activity, the government cut electricity payments for businesses in the commer-
cial, industrial and agricultural sectors by as much as 50%. The programme cost US$240 million. Saudi
Arabia’s electricity is generated almost entirely using fossil fuels.265 Additionally, the government halved
the price of petroleum domestically “to adjust domestic fuel prices according to changes in export prices
of crude oil.”266
264 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
265 Saudi Press Agency (2020). https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2075121. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/saudi-arabia/
266 Saudi Press Agency (2020). https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=2084858. Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/saudi-arabia/
Greenness
70
of Stimulus
Index
1.22 Singapore
Singapore has passed US$85.7 billion in fiscal stimulus measures.
Composition of stimulus: Singapore’s stimulus package includes healthcare support, as well as a stabili-
sation and support initiative to provide a cushion for local businesses and workers under the Job
Support Scheme. Welfare measures are provided in the form of a cash payout for households, wage
support for workers, training support for the self-employed, cash grants for SMEs tenants, and financing
support for start-ups. Specific sector measures include a US$396 million aviation support package, a
US$302 million tourism support package, and a US$409 million package to support arts, culture and
businesses in digital transformation. Singapore has not announced or passed any new stimulus measures
since the previous release.
Singapore’s index score continues to be driven by a critically insufficient environmental baseline
performance coupled with potentially harmful stimulus measures.
Table 24 Archetype policies announced by Singapore
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
Greenness
71
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is critically insufficient to achieve environmental targets.267
• Specific environmental measures (b )
2
• As part of the Resilience Budget announced
• Under a Property Tax Rebate, qualifying
in March 2020, the Singaporean government
commercial properties that have been affect-
provided US$258 million of aviation support,
ed by COVID-19, including hotels, serviced
which included measures such as rebates on
apartments, tourist attractions, shops, and
landing and parking charges, as well as rental
restaurants, will pay no property tax in 2020.
relief for airlines268. Additionally, the govern-
Meanwhile, businesses in other non-residential
ment announced in August 2020 an alloca-
properties such as offices and industrial
tion of US$138 million to the Enhanced
properties were granted a 30% tax rebate for
Aviation Support Package to extend support
the year 2020271. This measure has cost the
for the environmentally-intensive aviation
government US$1.47 billion.
sector from November 2020 to March 2021269.
• As part of the Fortitude Budget announced in
• The government allocated US$70 million of
May 2020, the government increased the level
point-to-point (P2P) support packages, which
of wage support to 75% (from 25%) for firms in
allowed taxi and private hire car drivers to
the aerospace sector until August 2020 or until
receive special relief fund payments of
when they are allowed to re-open272.
SG$300 (US$220) per vehicle per month until
September 2020. To help private bus owners,
the government allocated US$17 million to
provide a one-year road tax rebate and
six-month waiver of parking charges at
government-managed parking facilities270.
267 The most recent CCPI score (used to construct the baseline score) available for Singapore is from 2017. To account for this, we adjusted Singapore’s
baseline weighting to only incorporate its Environmental Performance Index score and Climate Action Tracker score.
268 Singapore Government Agency (2020). https://www.singaporebudget.gov.sg/budget_2020/resilience-budget/supplementary-budget-statement
269 Ministry of Transport Singapore (2020). https://www.mot.gov.sg/news-centre/news/detail/extension-of-support-to-the-aviation-sector
270 Ibid.
271 Ibid.
272 Singapore Government Agency (2020). https://www.singaporebudget.gov.sg/budget_2020/fortitude-budget/fortitude-budget-statement
Greenness
72
of Stimulus
Index
1.23 South Africa
South Africa has passed US$38 billion in fiscal stimulus measures.273
Composition of stimulus: South Africa’s stimulus package includes support for the immediate response to the
crisis in healthcare and welfare measures, alongside specific support for businesses. The government has
extended loan guarantees and tax measures to businesses. Specific support has been granted for the agricul-
ture sector, which includes direct payments to small farmers. The October ‘Economic Reconstruction and
Recovery Plan’ includes provisions for infrastructure, job creation, and energy security.
South Africa continues to score poorly on key indicators, having previously introduced potentially damaging
measures. Renewable energy goals from October’s stimulus plan have improved the country’s score in the past.
Table 25 Archetype policies announced in South Africa
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
273 https://mg.co.za/article/2020-04-21-ramaphosa-announces-r500-billion-covid-19-package-for-south-africa/
Greenness
73
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is critically insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• The South African government has provided
• Recent stimulus measures, such as procure-
a bailout to an unnamed polluting energy
ment of new generation capacity to boost the
provider. This is in the form of an overpayment
utility sector and provide for South Africa’s
of approximately US$300 million.274
future energy needs, contain both positive
It has also been announced that variable
and negative aspects. Although 6,800 MW
sources of energy such as wind power are
are designated to come from renewable
being reduced in response to reduced demand
sources, 4,500 MW are also designated to
for energy during COVID-19.275 Further meas-
come from coal and gas.280
ures to support South Africa’s polluting energy
and industry sectors include a relaxation of
• South Africa’s newest stimulus package titled
some environmental regulations276 and the
the ‘Economic Reconstruction and Recovery
delay of carbon tax payments.277 Relaxation of
Plan’ has a mostly positive effect on the coun-
environmental standards has included some
try’s index score. A hefty investment in general
environmental justice concerns as well, such as
infrastructure is likely to contribute negatively,
a provision that undermines the rights of
but is counter-balanced by a commitment to
affected communities to protest against
greater investment in renewable energy to
mining projects.278 Additionally, October’s
secure South Africa’s energy future.281
medium-term budget plan included an uncon-
ditional bailout to South African Airways.279
274 News 24 (2020). https://www.news24.com/citypress/business/eskom-dodges-question-on-company-that-got-r5bn-overpayment-20200531 , Energy Policy
Tracker (2020). https://www.energypolicytracker.org/country/south-africa
275 Eskom (2020). http://www.eskom.co.za/news/Pages/2020Apr1.aspx , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/south-africa
276 IOL (2020). https://www.iol.co.za/saturday-star/news/government-locks-sa-into-deadly-air-pollution-amid-covid-19-pandemic-45895850 , Energy Policy
Tracker (2020). https://www.energypolicytracker.org/country/south-africa
277 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/south-africa ,
https://www.sars.gov.za/AllDocs/LegalDoclib/Drafts/LAPD-LPrep-Draft-2020-22%20-%20Explanatory%20Notes%20on%20Further%20COVID-%2019%20Tax
%20measures.pdf
278 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/south-africa ,
https://www.dailymaverick.co.za/opinionista/2020-03-30-mantashe-uses-state-of-disaster-to-escape-accountability/
279 Government of South Africa (2020). https://www.gov.za/speeches/minister-tito-mboweni-medium-term-budget-policy-statement-28-oct-2020-0000
280 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/south-africa ,
http://www.dmr.gov.za/news-room/post/1866/minister-mantashe-welcomes-nersa-concurrence-to-ministerial-determination-for-the-procurement-of-11-813-m
w-of-power
281 Government of South Africa (2020).
https://www.gov.za/speeches/president-cyril-ramaphosa-south-africa%E2%80%99s-economic-reconstruction-and-recovery-plan-15-oct
Greenness
74
of Stimulus
Index
1.24 South Korea
South Korea has passed fiscal stimulus equal to US$334 billion.
Composition of stimulus:282 South Korea’s fiscal stimulus includes a variety of measures including loans and
guarantees for business operations, an employment retention support scheme, and wage and rent support
for small business operations. An additional ‘Key Industries’ fund was also introduced, extending KRW 40
trillion (US$33 billion) in loans to industries most affected by COVID-19.283 More recently, the Korean
government announced substantial support for a ‘New Deal’, which includes specific funding for digital and
green initiatives. The latest package, for US$130 billion, includes US$17 billion to be provided by the private
sector, which we exclude from the analysis.
South Korea’s index performance continues to be driven by support for the ‘New Deal’ ,which has
improved a score that previously struggled due to poor underlying environmental performance.284
Table 26 Archetype policies announced in South Korea
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
282 IMF Policy tracker (2020) https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19, Pulse News (2020)
283 Financial Service Commissions (2020). https://www.fsc.go.kr/eng/new_press/releases.jsp?menu=01&bbsid=BBS0048&selYear=&sch1=&sword=&nxPage=1
284 South Korea’s index score decreased slightly since the last update of this report; this is not due to any new negative policies but instead due to a more
detailed review of the Korean New Deal’s allocation by sector.
Greenness
75
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• On July 14 2020, South Korea announced a
• In contrast to the government’s long-term
further stimulus package of US$130 billion to
green goals, South Korea increased tax relief
provide funding for the Korean ‘New Deal’
for the car manufacturing industries from
and to support jobs. Alongside funding for
March to June 2020, and provided additional
digitalisation projects, the ‘New Deal’ focuses
aid to the industry.287 The tax deduction for
on a variety of initiatives to support a sustain-
carmakers of 30%, which was supposed to
able transition, including funding for renewa-
end in 2020, has been extended in an effort
bles, support for electric and hydrogen
to boost export sales.288 This tax deduction
vehicles, and energy efficiency in buildings.
does not offer any conditions or additional
The government has committed to a total of
incentives for electric or hydrogen vehicles.
US$63 billion in green funding before 2025,
Furthermore, the car sales tax of 5% on new
which is a large proportion of total Korean
vehicles has been lowered to 1.5% for consum-
stimulus and drives a substantial improve-
ers, to stimulate demand and is similarly
ment in the country’s index score.285 The ‘New
without a green conditional component.
Deal’ also includes investments from the
private sector into green and digital infra-
• Other environmentally damaging measures
structure projects, excluded from the coun-
include support for airlines, at almost US$2.5
try’s GSI. The Korean New Deal mentions that
billion289, as well as the bailout in early April
South Korea will aim for a net-zero emissions
2020 of Doosan Heavy Industry, the country’s
society, but critically does not include a
largest producer of coal plants, by the Korean
net-zero timeframe, nor a new greenhouse
Development Bank and the Import-Export
emissions target for 2030. According to the
Bank of Korea. The company has received a
Korean Government, the ‘New Deal’ is expect-
total of US$3 billion.290
ed to reduce approximately 12.3 million tons
of greenhouse gas emissions up to 2025.286
285 Vivid Economics estimate excluding contributions by the private sector. Base on YNA (2020). https://en.yna.co.kr/view/AEN20200714004851320.
286 Korea Ministry of Environment (2020).
http://eng.me.go.kr/eng/web/board/read.do;jsessionid=X2JozeG+9RDy+FdW5W+N3NRz.oardCategoryId=&decorator=&firstItemIndex=
287 Pulse News Korea (2020) https://pulsenews.co.kr/view.php?year=2020&no=217288
288 KPMG Insights (2020). https://home.kpmg/xx/en/home/insights/2020/04/south-korea-tax-developments-in-response-to-covid-19.html
289 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/republic-of-korea , Nikkei (2020).
https://asia.nikkei.com/Business/Transportation/Virus-hit-Korean-Air-and-Asiana-offered-2bn-bailout .
290 Climate Change News (2020).
https://www.climatechangenews.com/2020/05/06/south-korean-government-backs-2-billion-bailout-coal-company-despite-green-finance-pledge/
Pulse News Korea (2020) https://pulsenews.co.kr/view.php?year=2020&no=439931
Reuters (2020)
https://www.reuters.com/article/us-column-russell-renewables-coal/column-do-renewables-hold-the-upper-hand-against-coal-in-post-coronavirus-world-russell
-idUSKBN22Q0W1
Greenness
76
of Stimulus
Index
1.25 Spain
Spain has passed a total of US$344 billion in fiscal measures as a response to COVID-19.291
Composition of stimulus: Spain’s fiscal stimulus includes a variety of measures to support households and
businesses. Alongside announced health and welfare measures, Spain’s package includes loan guarantees
of US$126 billion and other smaller measures to support businesses. There is substantial support for
environmentally related sectors, including the US$1.1 billion bailout of Iberia and Vueling airlines.292 Spain
has recently outlined its plan to utilise a large share of support from the EU to support more specific green
stimulus measures, which has radically improved Spain’s index score.293 Further marginal increases in
Spain’s index score result from recent decrees detailing environmentally positive policy initiatives.294
Spain’s positive score is driven largely by its new stimulus package, despite poor underlying
environmental performance.
Table 27 Archetype policies announced in Spain
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
291 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
292 Reuters (2020).
https://www.reuters.com/article/us-health-coronavirus-iag-debt/iags-spanish-airlines-secure-1-1-billion-of-state-backed-loans-idUSKBN22D56D
293 Government of Spain (2020). https://www.lamoncloa.gob.es/presidente/actividades/Paginas/2020/071020-sanchez_plan.aspx
294 Energy Policy Tracker (2021). Spain - Energy Policy Tracker
Greenness
77
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is insufficient to achieve environmental targets, but better than most other
countries included in the GSI.
• Specific environmental measures (b )
2
• Spain has announced specific support for
• Spain’s most notable green stimulus meas-
airlines, with bailouts to Iberia and Vueling
ures come from the ‘Recovery, Transformation
airlines totaling US$1.1 billion, without attach-
and Resilience Plan for the Spanish Economy’,
ment of green conditions.295 Air Europa was
a US$85 billion plan that draws from European
also supported by investments totaling
Union resources via the ‘Next Generation’
US$523 million in November 2020.296
instrument. Of that larger plan, 37% is
earmarked for environmentally beneficial
• The Spanish government has, however,
purposes. It includes US$13.5 billion for sustain-
provided support for green transport.297 This
able agriculture and urban development,
includes a variety of infrastructure invest-
US$10 billion for resilient and low emissions
ments to support the development of green
infrastructure in transport, industry and energy,
transport networks, as well as funding for R&D
and US$7.6 billion for renewable energy
into sustainable transport, including hydro-
development. These large measures radically
gen-fuelled public transport, and professional
improve Spain’s overall index performance.
training for jobs in sustainable transport.298
• Additionally, in September 2020, Spain
allocated US$225 million to five autonomous
communities (Aragon, Cantabria, the Valen-
cian Community, La Rioja and Melilla) for the
construction of renewable energy facilities.299
• Royal Decrees supporting the viability of
public transport and reducing barriers to
national grid energy provision for renewable
energy plants serve to increase Spain’s
score slightly.300
295 Reuters (2020).
https://www.reuters.com/article/us-health-coronavirus-iag-debt/iags-spanish-airlines-secure-1-1-billion-of-state-backed-loans-idUSKBN22D56D
296 Government of Spain (2020). https://www.lamoncloa.gob.es/consejodeministros/Paginas/enlaces/210720-fondo-empresas.aspx
297 Bloomberg (2020). https://www.bloomberg.com/news/articles/2020-06-15/spain-s-auto-industry-to-get-4-2-billion-in-government-stimulus
298 Carbon Brief (2020). https://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions , Spanish Government
(2020). https://www.lamoncloa.gob.es/serviciosdeprensa/notasprensa/transportes/Documents/2020/15062020_PlanAutomocion2.pdf .
299 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/spain/,
https://www.miteco.gob.es/es/prensa/ultimas-noticias/el-idae-destina-24-millones-de-euros-en-la-segunda-tanda-de-convocatorias-para-financiaci%C3%B3n-d
e-proyectos-renovables-innovadores-en-cinco-comunid/tcm:30-512142
300 Energy Policy Tracker (2021). Spain - Energy Policy Tracker
Greenness
78
of Stimulus
Index
1.26 Sweden
Sweden has passed a total of US$72 billion in COVID-19 fiscal stimulus measures.301
Composition of stimulus: Sweden’s index constitutes an array of tax deferrals, private sector bailouts, and
credit guarantees, coupled with energy efficiency investments, green transition encouragement and
support for a circular economy.302 As elsewhere, sizeable supports to existing healthcare infrastructure
(US$5.3 billion) dominated the first stimulus release, however, funds directed to the protection of natural
areas, emissions reduction initiatives, and public transport development increasingly characterise this
successfully green stimulus.303
Sweden’s positive index score is driven by a positive baseline score, coupled with targeted investment
to environmentally relevant sectors.
Table 28 Archetype policies announced in Sweden
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
301 ADB Covid-19 Policy Database (2021). Sweden | ADB COVID-19 Policy Database
302 Government Offices of Sweden (2020). Government.se - Government.se
303 Government Offices of Sweden (2020). Government.se - Government.se
Greenness
79
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is fairly sufficient to achieve environmental targets.
• Specific environmental measures (b )
2
• Sweden’s focus on ensuring a green transi-
• Sweden’s final score is negatively influenced
tion post-Covid sees the country perform
by the commitment of nearly US$800 million
admirably in this update. US$17 billion is
in tax reductions306 to promote investment
dedicated to the national green jobs initiative,
without accompanying green conditions. In
championing the role of nature-based
addition, funds have been directed towards
solutions in economic recovery through
rural development initiatives307, which act
forestry and nature conservation.304
against wider conservation principals.
• The Swedish energy sector has received
• Most recently, Sweden allocated US$33
sizeable investments throughout the crisis to
million to the post-Covid industrial transition,
improve efficiency of dwellings and reduce
further boosting the country’s index score.308
emissions, with US$830 million dedicated to
Over three years, the government will invest
such programmes.305
this sum in accordance with accelerated
net-zero targets, phasing out fossil fuel use in
industry and throughout the value chain.
304 Government Offices of Sweden (2020). Green jobs important measure to tackle unemployment during COVID-19 crisis - Government.se
305 Government Offices of Sweden (2020). The Budget for 2021 in five minutes - Government.se
306 Government Offices of Sweden (2020). The Budget for 2021 in five minutes - Government.se
307 RDP Key Facts and Figures (2015). PowerPoint Presentation (europa.eu)
308 Government Offices of Sweden (2020). Sweden supports programme for climate transition of energy-intensive industries in developing countries -
Government.se
Greenness
80
of Stimulus
Index
1.27 Switzerland
Switzerland has passed a total of US$61 billion in COVID-19 fiscal stimulus measures.309
Composition of stimulus: Switzerland’s first package provided US$11 billion in immediate aid to businesses
and workers, through loan guarantees and financial aid for SMEs and partial unemployment compensa-
tion.310 Its second package extended the partial unemployment compensations, and provided additional
social support and US$2.2 billion in bridging loans to SMEs.311 A number of additional measures were
implemented throughout April, July and August 2020, including several green initiatives such as the
conditional bailout of Lufthansa, and funding for the development of renewable energies. The Swiss
Parliament is also currently working on strengthening Swiss CO2 legislation.312 December’s US$1.7 billion
extension to the national hardship support programme yields a slight decrease in the Swiss index score
for this edition (-0.19), though anticipated measures from the National Energy Commission313 to encourage
the adoption of climate-friendly energy may see Switzerland‘s score restored in the near future.314
Switzerland’s positive score is driven by its positive baseline score and significant green stimulus meas-
ures in the transportation sector.
Table 29 Archetype policies announced in Switzerland
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
309 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
310 The Federal Council (2020). https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen/bundesrat.msg-id-78437.html
311 The Federal Council (2020). https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen/bundesrat.msg-id-78515.html
312 Federal Office for the Environment (2020). https://www.bafu.admin.ch/bafu/fr/home/themes/climat/droit/totalrevision-co2-gesetz.html
313 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
314 The Federal Assembly – The Swiss Parliament (2020). Erneuerbare Energien weiter fördern (parlament.ch)
Greenness
81
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is relatively good to achieve environmental targets.315
• Specific environmental measures (b )
2
• Switzerland’s conditional bailout of
• Switzerland will increase its contributions to
Lufthansa, support for public transportation
the Green Climate Fund by 50%, providing
and new levy on air tickets are significant
US$150 million over the next three years. The
green transportation initiatives which contrib-
Green Climate Fund supports developing
ute to Switzerland’s positive score. The US$1.4
countries in implementing the UN Framework
billion loan guarantee for Lufthansa was
Convention on Climate Change by funding
provided on condition that the airline devel-
investments in sustainable agriculture, forest
ops climate objectives in cooperation with the
protection, and clean energy.319
country’s Federal Council. The non-binding
environmental regulations imposed on the
• The Swiss Parliament is currently working on
airlines are a step in the right direction,
strengthening Swiss CO2 legislation. Half of
though many environmentalists feel that
revenues from the new levy on air tickets will
stronger, binding conditions are required.316
be allocated to the new Climate Fund, which
will support innovation and investments in
• Green energy investments have focused
emissions reduction. The Climate Fund will
most on solar energy and photovoltaic
also provide cantons and communes with
installations. US$47.8 million was provided by
financial support for projects aimed at
the Federal Department of Environment,
reducing GHG emissions.320
Transport, Energy and Communications to
shorten the waiting times for one-off incen-
tives for large and small photovoltaic installa-
tions, and assure the continued development
of renewable energies.317
• Switzerland’s score is negatively affected,
however, by its large unconditional industry
bailouts. Its first stimulus package provided
US$1.68 billion in unconditional financial aid
to particularly affected firms, and subse-
quent packages added US$44 billion in total
loan guarantees.318
315 As Switzerland is landlocked, the nature component of their score is determined solely by their ‘life above land’ score.
316 The Swiss Parliament (2020). https://www.parlament.ch/press-releases/Pages/mm-fk-n-s-2020-05-02.aspx?lang=1033 , Platform 2020 Redesign (2020).
https://platform2020redesign.org/countries/switzerland/ , The Economic Times (2020).
https://energy.economictimes.indiatimes.com/news/renewable/swiss-environmentalists-demand-green-recovery-after-coronavirus/75535506
317 Federal Office of Energy (2020). https://www.bfe.admin.ch/bfe/fr/home/actualites-et-medias/communiques-de-presse/mm-test.msg-id-78836.html
318 The Federal Council (2020). https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen.msg-id-78684.html ,
https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen/bundesrat.msg-id-78515.html,
https://www.admin.ch/gov/de/start/dokumentation/medienmitteilungen/bundesrat.msg-id-78437.html
319 SWI Swissinfo (2020).
https://www.swissinfo.ch/eng/switzerland-to-substantially-boost-funding-of-green-climate-fund/45977814#:~:text=Switzerland%20will%20commit%20%24150%
20million,and%20adapt%20to%20climate%20change.&text=The%20Alpine%20nation's%20contribution%20will,for%20the%202020%2D2023%20period.
320 Platform 2020 Redesign (2020). https://platform2020redesign.org/countries/switzerland/
Greenness
82
of Stimulus
Index
1.28 Turkey
Turkey has passed US$99 billion in fiscal stimulus measures.321
Composition of stimulus: Following an initial package of around US$14 billion, Turkey announced a larger,
second package of measures in June 2020 to support the economic response to COVID-19. Since the
previous release, additional specificity and policy information has been added, including the recently
announced new subsidy scheme for tradesmen,322 although Turkey’s index score remains unchanged.
Turkey’s index score is driven largely by its poor performance across the baseline environmental
indicators and a lack of targeted green stimulus measures.
Table 30 Archetype policies announced in Turkey
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
• Underlying sector context (b )
1
Performance on key indicators is critically insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
- Turkey’s stimulus package includes unconditional support for Turkish Airlines,323 and bailouts to the
underground mining sector.324 The reduction and postponement of regulations relating to the oil sector
also contribute negatively to Turkey’s index score.325
- Turkey’s Ministry of Energy and Natural resources has committed to covering the financial costs resulting
from the postponement of accrued electricity and/or natural gas bill.326 This negatively impacts Turkey’s
index score, because more than 70% of Turkey’s energy is derived from fossil fuels.327 Further support for
the energy sector comes in the form of price support. The price of gas sold to natural gas power plants
was reduced by 12.5% and a discount of 9.5% was given to industrial and commercial subscribers.328
- The Turkish government has announced some positive measures, however, including the introduction of a
‘Green Tariff’ for power derived from renewable energy, and support for solar power.268 In addition, Turkey
has extended the Renewable Energy Support Scheme,329 and committed to increasing solar energy produc-
tion capacity by 1 GW.330
321 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
322 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19
323 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey , https://www.resmigazete.gov.tr/eskiler/2020/03/20200325-2.pdf
324 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey , MAPEG (2020). http://www.mapeg.gov.tr/Duyurular/2904_duyuru.aspx .
325 Ministry of Energy and Natural Resources (2020). https://www.resmigazete.gov.tr/eskiler/2020/06/20200610-10.htm , Energy Policy Tracker (2020).
https://www.energypolicytracker.org/country/turkey
326 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey
327 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey , Botas (2020).
https://www.botas.gov.tr/
Greenness
328 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey , Daily Sabah (2020).
https://www.dailysabah.com/business/energy/turkey-to-offer-green-only-power-tariff-as-of-august
83
of Stimulus
329 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey/ ,
https://www.resmigazete.gov.tr/eskiler/2020/09/20200918-8.pdf
Index
330 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/turkey/
1.29 United Kingdom
The United Kingdom has passed US$758 billion in fiscal measures in response to COVID-19.331
Composition of stimulus: The recent release of the United Kingdom’s annual spending review allocated
more than US$67 billion to COVID-19 related expenditures throughout the coming financial year, notably
including US$7.4 billion dedicated to the development and procurement of vaccines, and US$18.4 billion
targeted at improving the country’s existing ’test and trace’ infrastructure.332 Such recent investments are
complemented by several environmentally relevant policy commitments, seeing the UK’s overall index
score climb to a position of strong competitiveness alongside its European peers. The United Kingdom’s
earlier stimulus packages included a range of measures to fund healthcare, to support workers, and provide
specific support for businesses. There has been substantial support for the transport sector, including a
US$2 billion bailout for London’s transport authority TfL,333 a US$6.1 billion investment in transport infra-
structure,334 and support for airlines. In November 2020, the UK released the much anticipated ‘Ten Point
Plan for a Green Industrial Revolution’ which increased clean stimulus by nearly US$12 billion, and increased
the country’s GSI score significantly, pushing the United Kingdom to third place and overtaking Spain. The
National Infrastructure Strategy, released shortly thereafter, reiterated those positive plans, but also com-
mitted to some investments that are neutral at best, such as road building.
The UK scores relatively well on baseline indicators, and has several specific green stimulus measures,
resulting in a positive index score. The recently released Ten Point Plan places it as one of Europe’s
best performers.
Table 31 Archetype policies announced in UK
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
331 IMF Policy Tracker (2020). https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19 , OBR (2020). https://obr.uk/coronavirus-analysis/
332 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
333 BBC (2020). https://www.bbc.co.uk/news/uk-england-london-52670539
334 Forbes (2020). https://www.forbes.com/sites/carltonreid/2020/05/09/uk-gov-
ernment-boosts-bicycling-and-walking-with-ambitious-2-billion-post-pandemic-plan/#3a5ce00a3d7c
Greenness
84
of Stimulus
Index
• Underlying sector context (b )
1
Performance on key indicators is relatively good, but much more action is required to achieve
environmental targets.
• Specific environmental measures (b )
2
The United Kingdom has seen a mix of positive and negative environmental measures, providing substantial
support for green initiatives, but also relaxing some environmental regulations and providing support to
polluters. Green measures still make up a small proportion of the total stimulus, and are much smaller in
absolute value than those in Germany.
• Most recently, the UK has withdrawn finan-
• The UK government has extended a US$2
cial support for overseas fossil fuel sectors,
billion bailout to Transport for London (TfL)
while increasing domestic GHG reduction
to cover the public transportation company’s
targets. Such action is reinforced locally, with
losses from decreased ridership.339 The loan is
38 sub-national authorities (representing
considered a green bailout given it preserves
roughly a third of the UK’s population) now
public transport. Additionally, the loan to TfL
committed to reaching net-zero emissions
will also be accompanied by an increased
five years faster than central government.
congestion charge in the ultra-low emissions
Such actions are echoed in Scotland, where
zone (ULEZ) in London to £15 per day.
annual interim targets have been adopted to
accelerate progress towards net-zero.335
• Additional funding of US$2.5 billion has
been earmarked in the government’s invest-
• A total of US$2.2 billion has been provided
ment in public infrastructure for cycling and
in bailouts to airlines Easyjet, Ryanair, British
pedestrian infrastructure.340 This investment in
Airways and Wizz Air. Airbus, Honda and
green infrastructure is designed for local
Nissan have also received support from the
authorities to complete cycling and walking
COVID-19 Corporate Financing Facility.336
projects during lockdown.
With no attachment of green conditions,
these loans are providing direct support to
• In July 2020, the government announced
highly environmentally-intensive industries,
US$3.7 billion in support for energy efficiency
and are thus considered damaging.
improvements. These include the Green
Homes Grant scheme, which provides subsi-
• However, around US$250 million has been
dies to homeowners and landlords to fit
provided to support green research and
measures that make their homes more energy
development in aerospace.337
efficient. The support also includes funding
for energy efficiency and low carbon heat
• A slight easing of permitting requirements
upgrades in public sector buildings.341
in the agriculture and waste sectors in the UK
has taken place.338 In agriculture, slurry from
• Further green investments have been
dairy farming may be used without limit,
announced. Around US$450 million in fund-
despite concerns of run-off pollution. Addi-
ing has been provided for emissions reduc-
tionally, medical waste is allowed to be
tions in heavy industry, including CCS and
incinerated at registered municipal solid
clean hydrogen, materials, new technologies,
waste processing plants. This deregulation is
and efficient construction.342 A green infra-
minor, but still negative.
structure plan for London, worth almost US$2
billion has been announced, which involves
working with utility providers to support
projects such as improved water efficiency
and electric vehicle charging.343
275 Energy Policy Tracker (2021). United Kingdom - Energy Policy Tracker
Bank of England (2020). https://www.bankofengland.co.uk/markets/bank-of-england-market-operations-guide/results-and-usage-data
Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/united-kingdom , UK Government (2020).
https://www.gov.uk/government/news/uk-aerospace-sector-to-benefit-from-400-million-funding-to-go-green
UK Government (2020). https://www.gov.uk/government/collections/covid-19-regulatory-position-statements#water-industry
BBC (2020) https://www.bbc.co.uk/news/uk-england-london-52670539
Forbes (2020).
https://www.forbes.com/sites/carltonreid/2020/05/09/uk-government-boosts-bicycling-and-walking-with-ambitious-2-billion-post-pandemic-plan/#3a5ce00a3d7c
UK Government (2020). https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020
UK Government (2020). https://www.gov.uk/government/news/pm-commits-350-million-to-fuel-green-recovery
Business Green (2020). https://www.businessgreen.com/news/4018369/ev-charging-water-efficiency-projects-unveiled-london-recovery-plan
TMF Group (2020). https://www.tmf-group.com/en/news-insights/coronavirus/government-support-schemes/#B
Greenness
85
of Stimulus
Index
• Support for wind energy has also been
• The United Kingdom made further commit-
announced, with specific funding for a
ments to a green recovery in November 2020
Dogger Bank offshore wind farm – expected
via its ’Ten Point Plan for a Green Industrial
to become the world’s largest.344
Revolution.’ The plan commits nearly US$12
billion to a variety of areas, including hydro-
• September and October saw further com-
gen energy, transport and industry, nuclear
mitments and investments in the renewable
energy, electric vehicle infrastructure, subsi-
energy sector. In September, the government
dies and battery production, green maritime
of Scotland committed to increasing allocation
practices, carbon capture and sequestration,
of energy efficiency spending to £398 million
flood and coastal protection and
per year by 2025, totalling more than US$2
nature-based solutions.348 The plan is embed-
billion over the next half-decade. Additionally,
ded within the larger National Infrastructure
in Scotland, roughly US$77 million was allocat-
Strategy which does make funds available for
ed towards a low carbon fund for decarboni-
road building, although it is, for the most part,
sation of industry and manufacturing.345
environmentally-neutral. In light of the Ten
And in October, the national government
Point Plan’s commitment to ending sales of
allocated around US$50 million to nuclear
petrol vehicles in England by 2030, this
energy development346 and US$210 million
investment is treated as neutral.349
for offshore wind energy development.347
344 Business Green (2020).
https://www.businessgreen.com/news/4015133/government-moves-shore-clean-energy-contract-regime-wave-renewables-projects-progresses
345 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/united-kingdom,
https://www.gov.scot/publications/protecting-scotland-renewing-scotland-governments-programme-scotland-2020-2021/pages/5/#page-top
346 Energy Policy Tracker (2020). https://www.energypolicytracker.org/country/united-kingdom,
https://www.gov.uk/government/news/40-million-to-kick-start-next-gen-nuclear-technology
347 Carbon Brief (2020). https://www.carbonbrief.org/coronavirus-tracking-how-the-worlds-green-recovery-plans-aim-to-cut-emissions,
https://www.gov.uk/government/news/new-plans-to-make-uk-world-leader-in-green-energy
348 UK Government (2020). https://www.gov.uk/government/news/pm-outlines-his-ten-point-plan-for-a-green-industrial-revolution-for-250000-jobs
349 UK Government (2020).
https://www.gov.uk/government/publications/national-infrastructure-strategy#:~:text=The%20National%20Infrastructure%20Strategy%20sets%20out%20the%20gov
ernment's%20plans%20to,zero%20emissions%20target%20by%202050.
Greenness
86
of Stimulus
Index
1.30 United States
The US has passed a US$3.89 trillion spending package.
Composition of stimulus: In December 2020, Congress passed a US$900 billion bipartisan stimulus
package to stabilise the United States’ economy.350 Direct aid, unemployment benefit, healthcare measures
such as vaccine procurement, and business loans dominated the package, alongside US$17 billion of
specific support for the aviation industry. This stimulus also included a US$35 billion commitment to clean
energy, diversified across a range of quantified policies.351
The inauguration of President Biden in January 2021 marked a turning point for American climate policy.
After re-entering the Paris Accord on his first day in office, Biden signed an expansive Executive Order a
week later that seeks to transform the federal government’s approach to climate and nature. While finan-
cially unquantifiable as discrete interventions, the breadth and scope of the measures in the Executive
Order significantly raise the United States’ index score. Biden signalled his intentions before the election by
releasing the Biden Climate Plan (detailed above in Box 1), and this analysis has been careful not to double
count any measures. Most recently, the Senate passed Biden’s American Rescue Plan, a stimulus package
of US$1.9 trillion to support the country’s economic recovery. The package focuses on mounting a national
vaccination program, containing COVID-19, safely reopening schools, supporting struggling communities
and delivering immediate relief to working families. Since this plan has yet to be fully approved, it has not
been included in the calculation of the score below but its consequences are detailed in Box 2.
While poor underlying environmental performance and an initial stimulus which included widespread
environmental deregulation drove the country’s poor performance in the past, recent commitments to
clean energy and renewed focus on climate change mitigation has radically improved the United States’
index score in this edition.
Earlier stimulus packages included substantial healthcare and welfare measures, payroll protection and
direct support for businesses. Funding for environmentally relevant sectors included support for the aviation
sector, funding for transport infrastructure, shipping, and trucking, and allocations for the agriculture sector.
Table 32 Archetype policies announced in United States
Bailouts with green strings attached
Green infrastructure investments
Green R&D subsidies
Subsidies or tax reductions
for green products
Nature Based Solutions
Conservation and wildlife
protection programmes
Subsidies for environmentally
harmful activities
Environmentally harmful
infrastructure investments
Deregulation of environmental standards
Environmentally related bailout
without green strings
Subsidies or tax reductions for
environmentally harmful products
Source: Vivid Economics
350 IMF Policy Tracker (2021). Policy Responses to COVID19 (imf.org)
351 Washington Post (2020). https://www.washingtonpost.com/business/2020/12/20/stimulus-package-details/
352 WhiteHouse.gov (2021). Executive Order on Tackling the Climate Crisis at Home and Abroad | The White House
87
• Underlying sector context (b )
1
Performance on key indicators is highly insufficient to achieve environmental targets.
• Specific environmental measures (b )
2
In the United States, deregulation across all sectors coupled with a lack of environmental conditions on
transportation funding have added negative weights to our baseline, though this update includes several
improvements on previous editions. Key policies include:
• An initial total of US$60 billion in bailout
• The Department of Agriculture has intro-
funding was made available to ten airlines in
duced the Higher Blends Infrastructure Incen-
the United States. The stimulus was provided
tive Programme (HIIBP) to provide grants to
without any green conditions, although
agricultural producers which undertake the
conditions on employee retention and equity
production of renewable or bio-fuels.358 This
stakes have been introduced for some
funding amounts to US$100 million and is a
carriers depending on firm financials.353
green measure as it encourages generating
The United States government has warrants
supply for biofuel production, but is a very
on up to 1.9% of shares for any airline receiv-
small share of total fiscal stimulus.
ing grants or loans.354 But given the current
administration, we do not anticipate these
• The US Senate has approved the ‘Great
equity stakes, if taken, would be used to drive
American Outdoors Act’, which is set to
compliance of environmental standards set
provide funding of up to US$1.9 billion per year
by the federal government. Additionally,
for maintenance projects administered by the
US$10 billion in bailout funding was provided
National Park Service, the Forest Service, the
separately to airports.355 December’s
US Fish and Wildlife Service, the Bureau of
announcement saw a further US$17 billion
Land Management, and the Bureau of Indian
dedicated to the aviation industry, still
Education. The bill also includes permanent
lacking green conditions.356
funding for the Land and Water Conservation
Fund.359 As the draft legislation is yet to be
• Across the country, announcements of new
approved by the House of Representatives, it is
environmental rules have been rolled back
not currently included in the United States’
indefinitely. The EPA will be exercising
index score.
“enforcement discretion” indefinitely through
the pandemic. All firms that discharge
• Funding and tax breaks for environmentally
pollutants or emissions are not required to
harmful activities have also been announced.
monitor or report to the Environmental
In Pennsylvania, natural gas manufacturing
Protection Agency (EPA) at this time. On
facilities were made eligible for US$667 million
May 15th 2020, then President Trump passed
of tax credits,360 and US$122 million of funding
an Executive Order instructing agencies to
for ‘coal innovation centres’ was made available
prioritise the economic recovery of the
through the Department of Energy.361
United States by waiving or exempting
• The United States Paycheck Protection
polluters from any regulations or require-
Program’s environmentally beneficial effects
ments “which may inhibit economic recov-
were outweighed by environmentally negative
ery.”357 This deregulatory regime is across all
ones. While around US$250 million went to clean
key sectors and is a major driver of the
energy industries, more than US$3.5 billion went
country’s negative index score.
to fossil fuel and carbon-intensive industries.362
353 US Treasury (2020). https://home.treasury.gov/system/files/136/Payroll-Support-Procedures-Form-FINAL.pdf
354 Financial Times (2020) https://www.ft.com/content/fb8ef5a9-2e42-4b6a-acd0-078a1faa0d01
355 US Congress (2020). https://www.congress.gov/bill/116th-congress/house-bill/748/text
356 Washington Post (2020). https://www.washingtonpost.com/business/2020/12/20/stimulus-package-details/
357 Columbia Climate Law (2020). https://climate.law.columbia.edu/climate-deregulation-tracker
358 TMF Group (2020). https://www.tmf-group.com/en/news-insights/coronavirus/government-support-schemes/#B
359 United States Government (2020). https://www.congress.gov/bill/116th-congress/senate-bill/3422
360 State of Pennsylvania (2020). https://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2019&sInd=0&body=H&type=B&bn=732
361 US Department of Energy (2020). https://www.energy.gov/articles/doe-announces-intent-provide-122m-establish-coal-products-innovation-centers
362 US Treasury (2020). https://home.treasury.gov/policy-issues/cares-act/assistance-for-small-businesses/sba-paycheck-protection-program-loan-level-data , Energy
Policy Tracker (2020). https://www.energypolicytracker.org/country/united-states
Greenness
88
of Stimulus
Index
• Environment and climate negative interven-
• In addition to the interventions mentioned
tions persist in the most recent stimulus
above, President Biden has also established
package. Investments in national highway
several agencies which will aid the nation’s
infrastructure rose by US$10 billion in
concerted push to address climate change
December 2020 and while such commit-
by maintaining accountability and improving
ments do provide the opportunity to popu-
inter-agency cooperation. These include the
late the roads with low or zero-emissions
National Climate Task Force and the White
vehicles, this increase in funding serves to
House Office of Domestic Climate Policy,
lower the country’s index score overall.363
to be chaired by the newly appointed National
Climate Advisor.369
• December’s US$35 billion clean energy
stimulus included a near-US$1 billion commit-
ment to marine and hydroelectric energy
research, US$1.5 billion dedicated to new
solar energy and photovoltaic cell initiatives,
and US$4.7 billion of funding towards nuclear
fusion research.
• President Biden’s environmentally relevant
executive orders have significantly boosted
the United States’ index score, by:
- Realigning the country’s climate change
mitigation ambitions with Paris Accord
targets. The order quotes a “nationally
determined contribution” to reaching irrevers-
ible net-zero emissions by mid-centry.364
- Committing to the conservation of at least
30% of United States’ lands and oceans by
2030.365
- A nationwide pause on entering into new oil
and gas leases on public lands or offshore
waters “where possible”.366
- The requirement of federal agencies to
procure carbon pollution-free electricity and
zero-emissions vehicles.367
- The direction to re-establish stricter fuel
efficiency standards for consumer vehicles and
strengthening regulation surrounding methane
and greenhouse gas emission alongside the
Environmental Protection Agency.368
363 Washington Post (2020). https://www.washingtonpost.com/business/2020/12/20/stimulus-package-details/
364 WhiteHouse.gov (2021). Executive Order on Tackling the Climate Crisis at Home and Abroad | The White House
365 WhiteHouse.gov (2021). FACT SHEET: President Biden Takes Executive Actions to Tackle the Climate Crisis at Home and Abroad, Create Jobs, and Restore
Scientific Integrity Across Federal Government | The White House
366 WhiteHouse.gov (2021). Pause on entering into new oil and gas leases on public lands or offshore waters “where possible”
367 WhiteHouse.gov (2021). FACT SHEET: President Biden Takes Executive Actions to Tackle the Climate Crisis at Home and Abroad, Create Jobs, and Restore
Scientific Integrity Across Federal Government | The White House
368 WhiteHouse.gov (2021). Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis | The White House
369 WhiteHouse.gov (2021) FACT SHEET: President Biden Takes Executive Actions to Tackle the Climate Crisis at Home and Abroad, Create Jobs, and Restore
Scientific Integrity Across Federal Government | The White House
Greenness
89
of Stimulus
Index
Gr
F
eennes
ebruary 2021
s
of Stimulus
Index
