Global experts recommend $3tn post-Coronavirus investment in green initiatives

The plan, drawn up with the International Monetary Fund, calls on governments to use the unique environment created by the pandemic to create long-term sustainable change.

IEA executive director Fatih Birol (pictured) said: “The reason why we have been so quick with the report is that governments are now making decisions with huge implications within a short period of time.”

Government investment will be crucial to creating jobs in the aftermath of the crisis, with economists estimating global GDP could fall by up to 6% in 2020.

The $3 trillion investment would be made over three years in power lines, building refurbishment and renewable energies, using finance from public and private sources.

One-third of the money will go into energy efficiency in transport, buildings and industry, Euractiv reports.

The initiative would protect or create 9 million jobs and cut greenhouse gases by 4.5 billion tonnes.

The IEA report reveals that global CO2 emissions could fall by 8% this year as a result of global lockdowns, but with oil and gas prices plummeting, there could be a rapid rebound in pollution.

The IEA’s proposals would invest $110 billion in upgraded power lines, $180 billion in wind and solar plants and $20 billion in hydropower.

A further $15 billion should be invested in the maintenance and expansion of new nuclear power plants, it said.

Green buildings would receive €250 billion and there would be $30 billion for green transport.

Carbon capture and storage technologies would receive $45 billion.

The IEA provides policy recommendations and real-world solutions to help countries develop secure and sustainable energy strategies.