Insights Blog

What began as a health emergency is now rapidly threatening to turn into a global economic crisis. Policy actions and coordination will be crucial in mitigating the impacts of the emergency on industry.

Just like the widespread industrial shutdowns of the Great Depression, the COVID-19 economic crisis has left industrial companies reeling. Auto manufacturing plants are lying idle and demand for crude oil, copper, iron ore, and other industrial commodities is grinding to a halt. However, the biggest difference today is that we are also facing an unprecedented climate crisis.

Immediate Solutions to Increase Water Supplies and Access

Demand for avocados has exploded in the last decade, and Mexican production of “green-gold” has expanded to meet it. National production has grown 8% annually since 2009; the country produced 2.2 million tons of avocados in 2018 alone. Although the majority of Mexico’s avocados come from the state of Michoacán, the avocado boom is now pushing into other regions – a move that may threaten the country’s forests.

As the number of confirmed cases of COVID-19 in the United States continues to rise and more and more Americans are told to stay home, the true extent of this crisis is becoming more apparent daily. Our immediate focus is on the health and safety of our families, our neighbors and the nation as a whole, as it should be. I can only imagine the suffering of people who have already lost a loved one to the virus or have a parent in a nursing facility where an outbreak has occurred. We need to do everything we can to protect the lives of all Americans.

While we will get through this immediate health crisis one way or another, its wake will be felt for years, perhaps for decades. It is not too soon to recognize and begin addressing the financial hardship caused by social distancing. As restaurants, theaters, retail stores and other establishments close their doors, either voluntarily or in response to emergency orders, small businesses and workers are bearing the immediate brunt of the economic fallout.

Building resilience in our supply chains will help prepare Canada for the next pandemic, as well as the effects of climate change.

"With the pandemic potentially triggering a global economic slowdown, leaders are already looking for ways to shore up their countries’ economies. The approaches they take to stimulate economic growth will have long-lasting effects, so they need to be chosen carefully," says Helen Mountford, Vice President, Climate & Economics at the World Resources Institute (WRI). "What governments should avoid is trying to boost their economies in the wake of one global health crisis by exacerbating another — namely air pollution. A stimulus package that includes ramping up fossil fuel production or use would do exactly this."

"If we get it right, the response to COVID-19 may not only minimize pain and suffering now, but can also build the foundation for a greener, safer, and more prosperous future," says Stéphane Hallegatte, lead economist with the Global Facility for Disaster Reduction and Recovery (GFDRR) at the World Bank, and Stephen Hammer, Global Director of the World Bank's Climate Change team.

Unreliable electricity is a common challenge for healthcare centers located in rural areas. Some health centers across Asia and Africa are increasingly turning to solar power to meet basic energy needs. However, larger hospitals in remote areas, like Makunda in a remote rural area of India that often faces power outages, still hesitate to install solar panels.

While investments in economic infrastructure like roads and power plants are important, the coronavirus pandemic highlights the need to focus also on inclusive social infrastructure.