COVID-19 has dramatically changed the socioeconomic context for clean energy transitions worldwide. Fiscal rescue and recovery measures that unaligned with a green, resilient, and just recovery will miss the historic opportunity to realign global economic and energy trajectories with the goals of the Paris Agreement. Given its potential to accelerate sustainable energy transitions and deliver jobs, the private sector should be placed at the heart of targeted post-COVID-19 economic recovery policies. This policy brief outlines recommendations for achieving sustainable energy transitions in the power sector across G20 economies by focusing on how governments can support the private sector to deliver economic growth, jobs, and climate action. The proposed measures involve (1) coordinating on sustainable recovery measures in the G20, (2) expanding renewable energy generation, (3) accurately reflecting environmental externalities and ensuring just transitions in the fossil-fuel sector, and (4) promoting efficient electricity consumption and faster electrification.
Yong Jun Baek