Bailouts for a Better World

The authors argue that COVID-19 economic bailouts present a rare opportunity to integrate climate goals into stimulus policies. They suggest linking financial assistance for sectors like aviation and oil and gas to carbon emission limits and clean energy transitions, citing the 2008 US auto bailouts as a precedent for successful conditional support. The text advocates for specific measures such as a carbon tax on jet fuel, the creation of a US national electricity market, and the adoption of the EU's green deal targets to ensure long-term economic competitiveness and energy security.

• Government bailouts of industries hit by the pandemic must include climate-impact measures to prevent the accumulation of environmental debts and to support long-term industry competitiveness.
• The aviation sector, which accounts for 2% of global carbon emissions, requires more than current industry-led biofuels and carbon credits; the authors propose a carbon tax on jet fuel to offset bailout losses and fund staff retraining for climate-friendly sectors.
• Fiscal resources should not be used to stimulate investments in the oil and gas industry, as billions of dollars in fossil fuel assets are at risk of becoming stranded due to economic transformations.
• The authors recommend specific regional policy actions: the US should establish a federally regulated national electricity market to benefit renewable energies, and the EU should use its proposed green deal targets to sustain its economy.
• The pandemic demonstrated that deep cuts in greenhouse gas emissions are possible, as evidenced by China reducing emissions by an estimated 25% in a single month.

APA

Levy, J. V. F., Heller, T., & Buchner, B. (2020). Bailouts for a Better World. Climate Policy Initiative. https://www.climatepolicyinitiative.org/bailouts-for-a-better-world/

Chicago

Levy, Joaquim Vieira Ferreira, Tom Heller, and Barbara Buchner. Bailouts for a Better World. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/bailouts-for-a-better-world/.

Wikipedia

{{cite press release |last1=Levy |first1=Joaquim Vieira Ferreira |last2=Heller |first2=Tom |last3=Buchner |first3=Barbara |title=Bailouts for a Better World |publisher=Climate Policy Initiative |date=1 April 2020 |url=https://www.climatepolicyinitiative.org/bailouts-for-a-better-world/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{levy2020bailouts, author = {Levy, Joaquim Vieira Ferreira and Heller, Tom and Buchner, Barbara}, title = {{Bailouts for a Better World}}, publisher = {Climate Policy Initiative}, year = {2020}, month = apr, url = {https://www.climatepolicyinitiative.org/bailouts-for-a-better-world/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }