Governments eye a green economic recovery. Some industries aren’t convinced.

Governments around the world are spending like never before to kick-start their economies in the wake of Covid-19 lockdowns, in many cases tying green initiatives to rescue packages, even as some industries say saving jobs should trump environmental concerns. Companies, including Air France-KLM and Austrian Airlines, are receiving government support aimed at mitigating the effects of the coronavirus pandemic and reducing carbon emissions. But their industries are resisting stimulus packages tied to climate policy, saying governments should prioritize reviving job growth and business activity. Governments are pushing for change in some of the worst-hit industries with a dual approach: Providing bailouts on condition that companies adhere to environmental terms and offering help to promote low-carbon solutions such as electric vehicles and renewable energy. In Europe, the green initiatives have triggered some pushback from businesses. The airline industry said proposals to attach environmental conditions to financial assistance were ill-timed. “Without a return to financial stability it will be impossible for airlines to bring new and more efficient aircraft into service, invest in sustainable aviation fuels or commit resources to improving the efficiency of their operations,” said the IATA. Climate activists and scientists hope the support for climate-friendly government spending will grow from the current commitments of 5% of the overall $12t in stimulus packages announced around the world. Green initiatives represent a smaller proportion of stimulus funds compared with the packages that followed the 2008-09 financial crisis.<br/>