How Valuable Is ‘Green’ Investment?
- By Sam van de Schootbrugge
- 6 min read
In the first six months of 2020, 6.4% less carbon dioxide was emitted than in the same period in 2019. Global Earth champions are calling for governments to capitalise on this exaggerated drop by ‘building back better’ and, in doing so, tackling the climate and biodiversity crises. Despite this, the public policy outpouring during the pandemic overwhelmingly supports non-eco-friendly industries, and virtually no measures foster conservation.
This underinvestment in clean energy and conservation likely stems from uncertainty surrounding the economic benefits of ‘green’ investing. To bridge this gap, a new IMF working paper explores whether public and private sector investment in clean energy activities has positive short- to medium-term growth effects. Estimating the effects of transitioning to a zero-carbon, nature-friendly world, they find:
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