Investment in the Future. How a Green Covid-19 Stimulus Package Can Advance the Energy Transition

The corona crisis is not only threatening our health; it’s also shaking our economic systems to the core. A fall of global stock markets by as much as 35 per cent in the first quarter of this year means that a recession is imminent. The energy sector is also affected, with the price of oil plummeting and renewable energies also facing difficulties. Coronavirus infections, prolonged curfews, short-time work, and border closures are all affecting the supply chains of wind and solar energy technologies. Investment has all but dried up. In this situation we can learn from the experience of tackling previous economic crises and should opt for a “green” stimulus package in a three-step government programme of relief, recovery and reform. To accelerate and bolster the energy transition, all of the measures implemented in these three steps need to be scrutinised for their long-term viability.