Opportunities of post Covid-19 European recovery funds in transitioning towards circular and climate neutral economy

The briefing presents specific green economic recovery measures that stabilise livelihoods, creates jobs and reduce biophysical impact. These measures are more effective, when accompanied by full carbon pricing, prioritizing investment in green infrastructure and innovation, phasing out of subsidies and tax exemptions for emissions-intensive activities, and promoting green finance. Although COVID-19 has reduced GHG emissions in 2020, the overall impact will be driven by investment choices. In the current economic climate, public investment is a key driver of the transition to a more sustainable economy.