Driving a sustainable recovery
The “2020 Climate Transparency Report” provides an overview of all G20 countries, in their transition towards a net-zero emissions economy, providing country ratings, and identifying leaders and laggards. This year it also analyzes the responses of governments to face the COVID-19 crisis, offering a series of recommendations to promote a greener recovery.
The report highlights the following key findings:
- 2020 has shown how the world is vulnerable to intersecting crises, such as health, climate and economic crisis: The report points out how “the impacts of the COVID-19 pandemic have been compounded by other vulnerabilities” and how the economic Covid-19 crisis could lead to an increase of 25 million unemployed people, 100 million additional people living in poverty, and the number of people facing acute food insecurity doubling to 265 million.
- Strong differences between G-20 countries in terms of fiscal stimulus to deal with Covid-19 crisis: According to the report the unprecedented fiscal stimulus totaled $12.1tn (by mid-October), but ambition is extremely different among countries: “from approximately $17,200/per capita in Japan to $6,500 in South Korea. Emerging economies range from around $1,000/per capita in Brazil to less than $200 in Indonesia”. The report calls to avoid global divergence in Covid 19´s public support packages and to promote greater international cooperation to “contribute to a robust and sustainable global recovery”.
- Paris agreement goals are at risk even with a projected decrease this year: “This reduction appears to be temporary, mainly as a result of the COVID-19 crisis. Without transformational climate action emissions growth will rebound and the goals of the Paris Agreement will not be reached”.
- Current COVID-19 recovery packages are moving in the opposite direction: Approx. 30% of stimulus is going into environmentally-intensive sectors (coal, oil, airlines and auto). The EU package contains the strongest contribution towards environmental and climate objectives among all G20 members. In this regard, the report provides recommendations to align recovery plans with climate long term goals, thus greening the recovery.
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According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.
Partnerships between banks and private credit: The winners will be those that combine bank underwriting discipline, distribution, and customer access with private capital’s appetite for long-dated, illiquid risk, according to Oliver Wyman.
Lucrezia Reichlin (CEPR): A CBDC is not a prerequisite for monetary sovereignty. Confusing money with payments can risk misdiagnosing the problem and misaligning economic policy efforts.
According to the World Economic Forum´s Global Risk Report 2026, geoeconomic confrontation, mis- and disinformation and societal polarization make up the top three short-term risks, while environmental risks dominate in the long term.
According to the World Economic Forum, over the last few years AI has moved from experimentation to workflow integration, promising systemic gains in productivity while also raising critical questions around economic inclusion, values, trust and resilience.
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.