As the world continues to grapple with the challenge of COVID-10, a new report indicates that a massive $10 trillion investment will usher in a climate-friendly recovery for the global economy.
The report titled: ‘G7 leadership for sustainable, resilient and inclusive economic recovery and growth,’ was been prepared by a team led by Professor Lord Nicholas Stern, I.G. Patel Professor of Economics and Government at the London School of Economics.
It confirmed that the COVID-19 pandemic had exacerbated the risks and vulnerabilities that had been building in the global economy.
It follows a decade that was characterised by reduced investment, by slowing growth of productivity, by faltering employment, by weakening social cohesion, by increasing pressure on the public finances; and by accelerating destruction of natural capital.
The Carbis Bay Summit offers a unique opportunity for the G7 to take bold action to ‘build back better’ – to realise the growth and jobs story of the 21st century and ensure environmental sustainability. The transition to a net-zero emissions, climate-resilient world represents not a cost or a burden but the greatest economic, business and commercial possibilities in modern times. If the world fails to seize this opportunity, the dangers and fragilities of the old economic model that were mounting before the COVID19 crisis will become ever more severe. There could be a lost decade for development in poor countries and weak or stuttering recovery and growth for the world as a whole.”
It described the Post-Covid era as a special moment in history, offering the chance for the G7 to lead a globally coordinated recovery, driven by sustainable investment and innovation by both the private and public sectors.
The LSE report noted that at the heart of the proposed vision for the economic response to the pandemic was a coordinated global programme of investment for recovery, reconstruction and transformation that can boost all forms of capital – physical, human, natural and social.
The report was requested by British Prime Minister Boris Johnson ahead of the G7 summit to be held in Cornwall, southern England, on June 11-13.