Investing in climate assistance can support the global economy's recovery

Increased investment in technologies to combat climate change could play an important role in the global economy's recovery from the new coronavirus pandemic. This was recently shown by a report by the British company TS Lombard. Climate action to date has often been criticized as too slow. However, many governments are now focusing on investing in green solutions to help economies recover from the pandemic. The recent catastrophic floods in Germany have once again drawn attention to the consequences of climate change. However, they are just another in a series of devastating and extreme weather events of recent days, including large-scale fires in Oregon, USA. The United Nations Climate Change Conference, known as COP26, is due to take place in Glasgow in November. It will be one of the most important multilateral climate meetings since the Paris Agreement. According to TS Lombard, in order to achieve carbon neutrality, it is crucial to permanently reduce the cost of electricity production. In the case of renewables, they are already declining, but in the production of electricity from gas and coal they remain largely the same. "The cost of electricity from renewable sources will be halved by 2030 compared to the cost of electricity from coal and gas," said Charles Dumas, chief economist at TS Lombard. In this context, he also pointed out that investments in green infrastructure also face a number of technological and technical challenges. For example, in the case of solar energy, its production depends not only on the number of sunny days, but in Europe, for example, there are large differences in sunny days in winter and mid-summer. The performance of solar installations on the old continent is thus subject to large fluctuations. This means that Europeans cannot be dependent only on solar energy.