Towards a Global Green Recovery. Recommendations for Immediate G20 Action (April 2009)

Report Submitted to the G20 London Summit – 2 April 2009

The world is facing its worst economic crisis in many decades, caused by massive strains in the global financial system, falling asset prices and a sharp drop in wealth and aggregate demand. to re-start growth, ambitious fiscal stimulus measures have been announced in most G20 member countries and further measures are under consideration. the need for a substantial fiscal boost in the short term provides a great opportunity to undertake projects with a high social return, at a time when inputs are relatively cheap and underutilised resources and workers are available. But additional measures should be timely, well targeted, and taken within a clear long-term framework if they are to help lay the foundations of sustainable growth in the medium and long term without threatening fiscal sustainability when recovery comes.

The main message of this report is one of confidence. Confidence that G20 members will shape an opportunity out of the current crisis. once economic recovery is under way, markets have to deliver a different quality of growth that is more sustainable – a return to past production patterns is economically neither wise nor desirable. a global green recovery can deliver immediate and long-term economic benefits, cut the risk of dangerous climate change, reduce energy insecurity and competition for natural resources, and prepare the ground for a successful post-Kyoto agreement in Copenhagen in December 2009.