China and Japan lag Europe in ‘green recovery’ stimulus

China and Japan lag Europe in ‘green recovery’ stimulus

Study says Asia’s pandemic economic policies to negatively affect climate

TOKYO — Countries around the world are increasing fiscal measures to address the coronavirus pandemic while emphasizing efforts to reduce carbon emissions. But while European Union stimulus will have positively affect decarbonization, spending in Asian countries such as China and Japan is set to bring about a negative impact, a study says.

Global fiscal spending and financial support to cope with the COVID-19 public health crisis total $13 trillion, according to the International Monetary Fund. While that money is primarily spent to protect jobs and support companies experiencing cash crunches, differences have appeared in “green recovery” stimuli that link decarbonization with growth.

A report by Vivid Economics, a London-based consultancy, said that on a net basis there is an environmental burden resulting from fiscal policies to buttress the economy in eight countries in Asia and Oceania.

Vivid calculated a Green Stimulus Index to evaluate governmental policies and it showed negative scores for the U.S., China, Japan and South Korea and positive ones for the rest including Britain, France and Germany.