Accelerating the Energy Transition Would Benefit the Environment and the Economy in Panama
A new study by the United Nations Environment Program (UNEP) shows that integrating the energy transition as part of the post-COVID-19 stimulus and recovery plans will trigger significant benefits, not only for the environment and human health, but also for the economy, including the creation of new jobs.
Drawing on concrete data and developed with a Green Economy Model, The energy transition as a key driver of the COVID-19 economic recovery in Panama demonstrates that an energy transition based on renewable energies and electrification will contribute to the growth of Panamanian GDP and employment in the short term, with substantial increases in the long run.
The study also shows how an increase in the levels of climate ambition for the post-COVID-19 recovery is directly proportional to the benefits that can be obtained over time: Economic profits double the original investment, and, in the most ambitious scenarios, they could potentially triple it. Of these benefits, 70 per cent correspond to additional gains in real GDP, 26 per cent to additional public income, and 4 per cent to additional labor income.
Photo courtesy of geralt.