Green recovery refers to actions taken to mitigate the coronavirus epidemic' social, economic, and environmental consequences. It allows for long-term, robust, and climate-neutral change.Green growth, in the long run, assures the preservation of natural resources as the foundation for future generations' livelihoods.Economic recovery after a pandemic based on ecological principles is a challenge, but also an opportunity.
The world is facing enormous challenges as a result of the coronavirus epidemic. It will have a long-term impact on many aspects of sustainable development. At the same time, climate change is putting many people's lives in jeopardy.These two crises, however, can also be an opportunity if they are addressed in the spirit of a green recovery, resulting in a sustainable economic system.Across the globe, massive public-sector investment is underway to stimulate the economy. This opens up the possibility of hastening the transition to more sustainable, future-proof economic and social institutions — a win-win situation.
Green Recovery and India
With the devasted waves of the pandemic wreaking havoc on India's economy, officials must reconsider stimulus packages and learn from developing green recovery strategies throughout the world. Green recovery methods are short-term stimuli that can help the economy recover from a catastrophe while also benefiting the environment by channelling public and private finances towards green possibilities that enhance objectives such as job creation, climate adaptation, and economic resilience.While there is a renewed focus on green recovery in light of COVID-19 and the resulting economic slowdown, wealthy countries account for over 97 percent of post-COVID green recovery spending.
The most significant impediments to the adoption of green recovery paths in underdeveloped countries are a lack of public financing and private sector motivation. Nonetheless, recent advancements in the green economic landscape, as well as new funding opportunities, are encouraging for countries like India. The private sector and commercial banks are increasingly aware of the possibilities of green investments in the country.
Research shows developing countries have higher returns on investment and a greater impact from green initiatives than developed countries. Green Bonds and other environmental, social, and governance (ESG)-based investments are being considered as new financial vehicles to boost green recovery efforts. Furthermore, multilateral institutions such as the World Bank and the International Monetary Fund have offered cash for developing countries to push green recovery plans—but with a stipulation. Countries must develop policies that are context-specific, financially viable, and result-oriented in order to meet the green recovery goals.
COVID recovery proposals have so far focused on quick fixes such as encouraging enterprise-based financing and mining and coal subsidies, without considering the environment or climate. While such efforts are good, they have the potential to have detrimental short- and long-term consequences for national green commitments.