Green Stimulus and Recovery Tracker
As world leaders grapple with the economic damage of the COVID-19 pandemic, many are turning to large-scale public investment in stimulus and recovery measures. The International Energy Agency and leading economists have urged governments to avoid the lock-in of existing fossil infrastructure, by directing stimulus toward green measures that can build the foundation for a zero-emission future.
Rhodium Group is tracking green stimulus spending across the world’s largest economies—the United States, the European Union and its member states, China, and India, which together make up two-thirds of global GDP and over 50% of global greenhouse gas (GHG) emissions. The extent to which these economies focus their recovery on green priorities in the months ahead will provide important insight into the outlook for achieving deep decarbonization in a post-COVID world.
Rhodium’s report, It’s Not Easy Being Green: Stimulus Spending in the World’s Major Economies (Sept 2, 2020), provides a deeper understanding of countries’ unique fiscal and political landscape to help clean energy advocates capitalize on the most effective opportunities.
Rhodium’s Green Stimulus Tracker
Rhodium’s Recovery Trackers
To support efforts to track the economic and emissions impacts of COVID-19, Rhodium is tracking and visualizing the key drivers of emissions in the four major economies. These dashboards provide the most up-to-date monthly metrics from industry, electric power, and transportation for each of the four economies, and highlight key insights into the pace and direction of recovery.
In our report: Road to Recovery? Tracking the Impact of COVID-19 on the World’s Major Economies (Sept 15, 2020), we highlight a selection of data from our dashboards, providing context and describing significant trends we’ve observed as the pandemic and its economic repercussions have unfolded.
US economic activity has recovered considerably over the 3rd quarter of 2020, bringing year-to-date electricity demand back to just 2% below the same period last year. Industrial production and gasoline consumption have been somewhat slower to recover, inching back to 8% and 12% below 2019 levels to date, respectively.
Europe saw its biggest hit to economic activity this spring. Since the peak downturn in April, activity slowly recovered through July, but with a resurgence of cases in some countries, activity dipped again in August. To date, electric power generation is down 6%, industrial production is down 12%, and air travel is down 63%, compared to the same period in 2019.
After a sharp drop in economic activity in the first quarter at the peak of COVID infections, China’s industrial production and electricity demand have recovered swiftly since April, reaching 2019 levels by the end of the 3rd quarter. Transportation demand has been much slower to rebound, with passenger travel down over 50% this year-to-date, compared to 2019 levels.
India experienced the largest hit to economic activity in April—power generation dipped 23% from 2019 levels, industrial production dropped nearly 40%, and air travel was slashed by 88%. Following a slow recovery from April to July, August saw a slight dip again as infection rates rose again. As of August, year-to-date power generation is down 6% from 2019 levels, industrial production is down 8%, and air travel down 38%.