Shaping a sustainable and low-carbon recovery that spurs industry transition

The document warns that post-pandemic recovery efforts risk entrenching carbon-intensive pathways through technological, political, and societal lock-in if governments prioritize a return to the pre-pandemic status quo. It identifies a narrow window of opportunity in 2020 to align economic stimulus with the Paris Agreement and Sustainable Development Goals. To achieve a sustainable transition, the authors propose five policy levers: conditional bailouts, environmental tax reform, green public procurement and finance, expanded social welfare, and just transition measures to support workers. The briefing highlights that while some regions like South Korea and the EU are pursuing green recovery plans, others, such as the US and China, are implementing measures that may reinforce fossil fuel dependency.

• The COVID-19 pandemic has created a limited opportunity for governments to shift economic development toward a sustainable and net-zero emissions trajectory, but this window is narrow as 2020 is a critical year for the Paris Agreement and Sustainable Development Goals.
• There is a significant risk of 'carbon lock-in' where recovery measures entrench fossil fuel dependency across three dimensions: technological (infrastructure and supply chains), political (vested interests and the suspension of environmental laws), and societal (reinforcing existing inequalities and norms).
• Specific examples of recovery measures that risk increasing carbon lock-in include the US airline industry's request for $50 billion in federal aid, Alberta's planned investment of over $1bn in the Keystone XL pipeline, and China's 'active' stimulus for large-scale construction projects.
• Some governments are already using the crisis to advance low-carbon plans, such as South Korea announcing a Green New Deal Manifesto in March 2020 and the European Union aligning its recovery plan with the 'green transition'.
• The document proposes five policy levers to catalyze a just and sustainable industry transition: conditional bailouts (e.g., requiring emission reductions), tax relief geared toward environmental reform, green public procurement and loans, social welfare support that addresses systemic inequalities, and just transition measures to reskill workers.

APA

Johnson, O., Shawoo, Z., Talebian, S., Kemp-Benedict, E., & Lindblom, A. (n.d.). Shaping a sustainable and low-carbon recovery that spurs industry transition. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2020/05/200508-green-recovery-short-brief-final.pdf22.pdf

Chicago

Johnson, Oliver, Zoha Shawoo, Sara Talebian, Eric Kemp-Benedict, and Andrea Lindblom. Shaping a sustainable and low-carbon recovery that spurs industry transition. Stockholm Environment Institute, n.d. https://www.sei.org/wp-content/uploads/2020/05/200508-green-recovery-short-brief-final.pdf22.pdf.

Wikipedia

{{cite report |last1=Johnson |first1=Oliver |last2=Shawoo |first2=Zoha |last3=Talebian |first3=Sara |last4=Kemp-Benedict |first4=Eric |last5=Lindblom |first5=Andrea |title=Shaping a sustainable and low-carbon recovery that spurs industry transition |publisher=Stockholm Environment Institute |url=https://www.sei.org/wp-content/uploads/2020/05/200508-green-recovery-short-brief-final.pdf22.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{johnsonndshaping, author = {Johnson, Oliver and Shawoo, Zoha and Talebian, Sara and Kemp-Benedict, Eric and Lindblom, Andrea}, title = {{Shaping a sustainable and low-carbon recovery that spurs industry transition}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/wp-content/uploads/2020/05/200508-green-recovery-short-brief-final.pdf22.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }