The Contribution of Economic Recovery to Transformation. Classification of Measures by the Länder

Achieving ambitious climate targets requires an extensive transformation of the economy and society. Economic stimulus measures should only be implemented if they promote climate protection and transformation. This paper ranks measures to address the economic consequences of the COVID-19 pandemic in terms of their contribution to climate protection, and growth in employment and value added. Although the environmental budgets of the Länder are limited, they can set priorities and accelerate transformation processes within their sphere of competence (e.g. through spatial planning, building regulations or infrastructure development). Measures to expand public transport or the use of renewable energy sources, to increase the capacity of the electricity grid, to strengthen the circular economy, for forest rehabilitation and afforestation, and to transform the building stock have a positive impact and can be implemented in the short term. In addition, the capital stock of the public sector should be transformed in a climate-neutral way.