Bail-out and Stimulus Package: Yes for Economic crisis, No for Climate crisis?
But then, there was no bailout, no stimulus package for climate crisis. The speed of response was glacial. Governments decided to simply wait for ‘Copenhagen’ hoping that there will be ‘Hopenhagen’- agreement!
I recall that after the Montreal Protocol on substances that deplete the ozone layer was signed in 1987, there was a serious exercise to estimate the size of the package needed for averting global ozone layer crisis. Financial assistance to the developing countries was considered essential for the global participation to protect the ozone layer. These estimates varied fro US$ 2 Billion to US$ 25 Billion, i.e. up to 0.2 percent of the world GDP. Some estimates indicated US$ 1.2 billion for the first 8 years. The governments moved very swiftly and came out with bail out and stimulus package of US $ 160 million for first 2 years with provision of increasing to US$ 240 million if more developing countries joined. I was there in London, as part of the Indian delegation, to witness the approval of this stimulus package. The stimulus package has since then worked very successfully over more than 20 years. US$ 3 billions are provided to developing countries so far and multibillion dollars were spent by developed countries for their own phase out of ozone depleting substances. Earlier bail out package resulted not only in setting ozone layer on the path of recovery but also reaping a multitude of other benefits.