Bailouts for a Better World

A statement by Climate Policy Initiative leaders and Joaquim Vieira Ferreira Levy arguing that government bailouts following the COVID-19 pandemic should be linked to climate-impact measures to avoid accumulating environmental debt and to foster long-term economic competitiveness.

• The authors argue that taxpayer-funded bailouts must include climate-friendly incentives to prevent worsening global climate change and to avoid creating financial and environmental debts for future generations.
• The aviation sector, which accounts for 2% of global carbon emissions, is identified as a primary candidate for climate-linked financial assistance. The authors suggest a carbon tax on jet fuel to compensate governments for bailout losses and to fund the retraining of airline staff for growth-oriented, climate-friendly sectors.
• The oil and gas industry is highlighted as a high-risk area for investment due to declining global capitalization and the threat of stranded fossil fuel assets, which the authors claim has been accelerated by the pandemic-related crash in oil prices.
• The document proposes specific regulatory and policy shifts: the US should establish a federally regulated national electricity market to benefit renewable energies, and the EU should utilize its proposed green deal targets to support the continental economy.
• The authors note that China, the largest global carbon emitter, saw an estimated 25% reduction in emissions in a single month during the crisis, suggesting that returning to previous emission patterns would be a lost opportunity.

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} }