Chapter 4. Bridging the Gap - Implications of Current COVID-19 Fiscal Rescue and Recovery Measures - Emissions Gap Report 2020

The COVID-19 pandemic has brought unprecedented health and socioeconomic challenges – several of which will continue to have a profound effect on global society for many years to come. These new challenges compound many existing social and economic challenges, including widespread social inequality, rural/urban disparities and climate change. This confluence of challenges requires a considered response. At the same time, COVID-19 rescue and recovery measures present an opening to stimulate the economy, while simultaneously accelerating a transition towards a low-carbon economy consistent with the temperature goals of the Paris Agreement. Unless this opening is pursued, the Paris Agreement goals are likely to slip further out of reach (chapter 3). Against this background, this chapter assesses two main questions: - What can we say about the size and extent to which COVID-19 rescue and recovery measures to date support low-carbon or high-carbon development? (sections 4.2 and 4.3) - What are the emerging lessons for governments in the pursuit of a low-carbon economic recovery? (section 4.4)