Did COVID-19 accelerate the green transition?
An international assessment of fiscal spending measures to support low-carbon technologies
Stimulus packages adopted following the COVID-19 pandemic – such as the US Inflation
Reduction Act and NextGenerationEU - have been presented as an opportunity to “build
back better” and accelerate the transition to a low-carbon economy while re-igniting
the economy. But this revival of industrial policy has also raised concerns about
the potential for a global green subsidy war. OECD analysed funding measures worth
USD 1.3 trillion announced around the world in 2020-21 to support development and
diffusion of low-carbon technologies. These measures can trigger substantial greenhouse
gas emissions reductions while boosting the growth of the clean tech sector in all
regions and reducing dependence over fossil fuel imports. This policy brief summarises
key findings from our analysis and offers additional recommendations to policymakers.
Published on October 26, 2023
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