Brookings arges that the U.S. should use pandemic recovery funds to incentivize corporations to better confront their own climate risk exposure.
In a February 2021 report, The Brookings Institution articulates the opportunity for President Biden and Congress to use the massive amounts of federal recovery aid disbursed to corporations due to the COVID-19 pandemic to advance our progress in addressing climate risks. Many other developed economies have already taken similar measures by incorporating climate provisions in their COVID-19 recovery packages, and the U.S. should follow suit by using pandemic recovery funds to incentivize corporations to better confront their own climate risk exposure by attaching climate conditionality to relief for the private sector.
Brookings proposes that:
- Corporations that receive COVID-19 relief should report on their exposure to climate risks and on their climate impact.
- Companies should be incentivized to implement an internal carbon pricing scheme through favorable terms for COVID-19 relief loans.
- Companies from certain carbon-intensive sectors should face additional climate-related restrictions.
This report mentions BailoutWatch in the context of our November report, "Bailed Out & Propped Up."
The Brookings Institution is a nonprofit public policy organization based in Washington, DC. Their mission is to conduct in-depth research that leads to new ideas for solving problems facing society at the local, national and global level.