The transition to a global economic model which will slow down climate change and create jobs will be the “biggest economic transformation since the industrial revolution” according to John Kerry, the US climate envoy.
They agreed that a “green and resilient recovery” from the COVID-19 pandemic is possible but economic growth globally is likely to be slow and uneven.
‘No bank will fund a new coal plant’
John Kerry: There are many ways that we can address the climate challenge in America. President Biden has put a $2 trillion plan on the table, which will result in 500,000 charging stations for electric vehicles being built in the country, thousands of electric buses, including school buses, and a target of 100 per cent carbon-free power, by 2035.
All these measures will generate actions in the private sector. The decisions of some of the largest financial institutions in the world are being driven by environmental, social and governance (ESG) factors, and trillions of dollars is going to be invested in this new sector to avoid sheer catastrophe. We’re way behind, but we believe that this is going to be the biggest economic transformation since the industrial revolution.
In Europe, no bank or financial institution or even private source will fund a coal-fired power plant, but we have to move away from coal faster. Many old coal-fired plants are operating at less than 50 per cent efficiency. They are losing money and are not even sending energy to the main grid. They could be phased out over a period of time. Gas will, to some degree, be a bridge fuel [to renewables].
The United States could help mobilize finance to reduce risk, and then bring more money to the table for a commercial investment in alternative fuel sources.