New from @NEF: Building a green stimulus for Covid-19 recovery: THREAD

Today we've published our analysis of priority green infrastructure projects to support the recovery by creating many good jobs, fast & helping to tackle the #ClimateCrisis
https://neweconomics.org/2020/07/building-a-green-stimulus-for-covid19

We build on the framework we've developed in our previous 'Recession Ready' report just ahead of the crisis, & assess projects according to key criteria: timelines, job-creating potential across the country, carbon abatement & enabling potential for other low-carbon projects

Based on that framework we outline an illustrative stimulus package that with an investment of £28.3 bn over the next 18 months could create over 400 thousand jobs

Our analysis of recent independent forecasts for the UK economy compiled by @hmtreasury shows that V-shaped recovery is at the extreme end of forecasts & in the central scenario unemployment will still be over 2 million by Christmas next year without further government action.

At the same time, the UK is on course to miss the targets of its #NetZero carbon budgets, as the below chart by @theCCCuk (based on @beisgovuk data) shows

(See full CCC report here: https://www.theccc.org.uk/publication/reducing-uk-emissions-2020-progress-report-to-parliament/ )

We've previously argued that a green stimulus should form a part of a response to any recession and this crisis, for all how unprecedented it is, needs a response that will #BuildBackBetter & embed a sustainable recovery https://neweconomics.org/2020/01/recession-ready

Can we afford it all? Turns out that the answer is yes! Despite growing government debt, the analysis of @OBR_UK data shows that the UK debt interest payments as % of GDP (net of repayments via the APF - Asset Purchasing Facility) are at record lows.

Among the uncertainty, private investors are desperate for safe assets such as UK government gilts even with negative effective interest rates, while the expansion of the @bankofengland's quantitative easing (QE) programme contributes to yields remaining low

As Chancellor @RishiSunak develops his economic recovery plan aiming to stave off mass unemployment, he only needs to check out @TheSun to find some #GreenRecovery ideas https://www.thesun.co.uk/news/12040079/unemployment-two-million-christmas-2020/