Navigating the clean energy transition during the COVID-19 crisis

4 years ago
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https://www.sciencedaily.com/releases/2020/04/200429152825.htm

"We're writing this commentary as COVID-19 fundamentally changes the economic environment of the clean energy transition, requiring policy makers to take major decisions within short timeframes," says senior author Tobias S. Schmidt of ETH Zurich. "While many blogs or comments put forward 'shopping' lists of which policies to enact or which technologies to support, much of the advice lacked structure."

In their Commentary, Schmidt and his colleagues argue against small "green wins" in the short-term that could prevent meaningful change in the long-term. "Bailouts should exclude sectors that are clearly incompatible with the Paris Agreement, such as tar sands development, but at the same time, bailout decisions primarily have to consider the societal value of uninterrupted service and of safeguarding jobs," Schmidt says. "Instead, policymakers should consider increasing their leverage to shape business activities for Paris Agreement-compatible pathways in the future, for instance, by taking equity stakes or securing a say in the future strategy of bailed-out corporations."