This report is part of a series looking at climate change and biodiversity considerations in economic responses to COVID-19. Integrating climate and biodiversity considerations into bailout measures is much more feasible today than in the previous recession of 2009, given greater clarity about country targets and the actions required to meet them, as well as improved understanding of the cost of climate change and biodiversity loss to specific companies and sectors.
This report recommends governments should use three complementary strategies to align their bailout packages:
- First, governments should clearly set out any commitments they expect firms receiving assistance to uphold.
- Second, governments should ensure the strength of those commitments (i.e. the benefits to the public) are commensurate to the public support being provided (i.e. the costs to the public).
- Third, governments should consider medium and long term ecological transition and physical risks when deciding the scale and duration of support.