Climate Change Activities Can Accelerate Global Economy, Economist Says

According to the latest reports, accelerating investments in policies and technologies to handle climate change can have a vital role in the recovery of the global economy from the Covid-19.

In the latest note, Charles Dumas, chief economist at U.K.-based investment research firm TS Lombard explained that activity on environmental change is frequently scrutinized as moving too leisurely. However, since the government is spending to support post-pandemic economies, there may be possibilities for improvements.

A critical principle of this is the always diminishing costs of electricity per megawatt hour, as per the figures from TS Lombard, with expenses of solar, offshore & onshore wind dropping for the last 10 years, while gas and coal have remained generally something similar.

As per Dumas, “Adequately by 2030, the expenses of renewable electricity is expected to be half that of coal and gas sourced power.”

Related Read: HSBC Issued First 'green' Trade Finance Facility For UAE's Lamprell

These advancements are going to bring various promises to arrive at net zero more intently.

The deadly floods in Germany in recent weeks have contributed to bringing back the impacts of the pandemic dynamically in the highlight again but they are only the recent in the series of destructive utmost weather situations of late, including the lying down wildfires in Oregon.

COP26 Requirements

Meanwhile, the United Nations Climate Change Conference, popularly known as COP26, will have a meeting in Glasgow in November. It will be treated as one of the most crucial multilateral meetings on climate since the Paris Agreement.

According to Dumas, since COP26 is approaching, legal authorities are required to understand their essential preferences, and should initiate infrastructure investments among them as a plethora of technological and engineering threats are going to keep hurting renewable energy.

Dumas further added, “In my opinion, the discontinuous issue is quite a matter of concern and it's just that the sun goes down every night.”

On account of solar power, results can be combined depending on the area of infrastructure like solar farms.

Dumas said, “There is an immense variety in sunny days in winter and sunny days in the middle of the summer so the discontinuance holds on a quite considerable occasional perspective. ”

“You can have a drastic climate for quite a while in December or January and lo and behold you wouldn't have any desire to rely upon solar power”

Energy transmission can be another major hurdle, he added. While the emerging countries, including African nations, have a great scope in creating sites for generating solar power, that power requires to move without any problems.

“The problem of transmission technology is quite serious. If you are willing to see Chad to a new Saudi Arabia because the Sahara desert has solid sun there, but if you want Europe to utilize electricity then you are considering some expensive processes that require plenty of research and plenty of further investments.”

Storage and carbon capture are altogether regions that demand robust investment, Dumas added, in case governments are to arrive at their net-zero targets.

He further added, “What we require is a very sorted public policy that leads to getting anywhere close to these net-zero commitments and I doubt that the thing it will be about is a carbon tax, which has the possibility of being resisted by Americans but will be of vital importance.”

Job Creation

Paul Steele, chief economist at an independent policy research institute approached the International Institute for Environment and Development, explained that climate activity and renewable energy investments will facilitate the double requirement of handling the climate issue while generating jobs for the post-pandemic economy.

Steele added, “One of the requirements originating from Covid-19 is to create labor-intensive employment. Both in developed & emerging nations, you can facilitate labor-intensive employment with the help of renewable energy. ”

Related Read: Does The Second Wave of Covid-19 Pose Threat To Economic Growth?

One example, he explained, was the retrofitting of boilers in homes in the U.K., which would contribute to the nation towards its climate agendas and generate new jobs while being relatively modest all things considered.

Steele also explained that investments to bring a climate-friendly economy cannot be short-term or have quick targets.

He highlighted the different government support plans for the airline industry, which has been hurt by the global pandemic. Recently, the European courts gave the nod to a $2.9 billion bailout for Air France-KLM’s Dutch company.

Bailout finances like these ought to be attached to sustainability responsibilities by the airline business, he said, yet that can be an uncertain recommendation to get over the line.

"Governments aren't making the associations enough and customarily treasuries and especially the services of transport are as yet driven by road building lobbies and individuals who like to fabricate roadways and increase transport as opposed to individuals who need to put resources into maintainable other options."


Other news

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...


Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.