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

This briefing by the Stockholm Environment Institute argues that the COVID-19 pandemic has created a narrow policy window to steer economic recovery toward a sustainable, net-zero emissions path. It warns against 'carbon lock-in'—where recovery measures entrench fossil fuel dependency—and proposes specific policy levers, such as conditional bailouts and just transition measures, to catalyse industrial transformation.

• The COVID-19 pandemic has created a temporary 'policy window' that allows governments to redirect economic development toward a sustainable, equitable, and net-zero emissions trajectory, provided they act quickly to meet Paris Agreement and 2030 Agenda for Sustainable Development commitments.
• There is a significant risk of 'carbon lock-in' if recovery measures support a return to the pre-pandemic status quo. This lock-in manifests in three dimensions: technological (sustaining carbon-intensive infrastructure), political (vested interests delaying climate action), and societal (reinforcing existing inequalities and norms).
• Specific examples of recovery actions that risk entrenching carbon lock-in include Alberta's planned investment of over $1bn in the Keystone XL pipeline, the US airline industry's request for $50 billion in federal aid, and 'active' stimulus in China for large-scale construction projects requiring carbon-intensive steel and cement.
• Political lock-in is evidenced by the US Environmental Protection Agency suspending environmental law enforcement, Canadian oil producers seeking to suspend lobbying transparency rules, and officials from the Czech Republic and Poland urging the EU to deprioritize the Green Deal in favor of pandemic response.
• Some governments are already using the crisis to advance low-carbon plans; South Korea announced a Green New Deal Manifesto in March 2020, and EU leaders have committed to an economic recovery plan consistent with a 'green transition'.
• The document proposes five primary policy levers to ensure a resilient and sustainable recovery: conditional bailouts (e.g., requiring emission reductions), environmental tax reform, green public procurement and fossil fuel subsidy reform, social welfare support that moves away from bailing out large corporations, and just transition measures to create green jobs and 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} }