The readiness of industry for a transformative recovery from COVID 19

Abstract

Non-technical summary Many countries are committed to emerge from COVID 19 on a more sustainable environmental footing. Here we explore what such a structurally transformative recovery would mean for the manufacturing sector of 14 major economies. We find that all countries have zero-carbon growth opportunities post-COVID and comparative advantages in some sectors, but industrialised countries and the East Asian economies, especially South Korea, appear best positioned, thanks a push in low-carbon innovation that predates the pandemic.

How is COVID-19 altering the manufacturing landscape? A literature review of imminent challenges and management interventions

“…Existing research is conflicted in discussing matters of manufacturers’ rapid response involving the inclusion of digital technologies and the impact this has on the environment (Diaz-Elsayed et al, 2020 ; Fankhauser et al, 2020 ; Hoosain et al, 2020 ; Monostori & Váncza, 2020 ; Patel & Gohil, 2020 ). While some (Harris et al, 2020 ; Monostori & Váncza, 2020 ) propose the adoption of digital practices and restructuring supply chains to account for transport-related carbon emissions, others (Fankhauser et al, 2020 ) find most emerging economies are less ready than leading countries (South Korea, Taiwan and China) for a zero-carbon recovery. More research is needed to understand the trade-off between digitalization and its carbon footprint.…”

“…An additional line of research is the readiness of sectoral world economies in supporting a zero-carbon footprint. Manufacturing, globally, is one of biggest industries contributing to the green economy with growing demand for clean and green products, linked to national prosperity (Fankhauser et al, 2020 ). Thus, changes in the environment are highly likely to affect society and economies at large (Diaz-Elsayed et al, 2020 ); and so, future research should invest in exploring the accumulative impact of manufacturers’ COVID-19 response on the environment, embedded in the overarching aspects of society and national economies.…”

Net zero portfolio targets for development finance institutions: Challenges and solutions

“…The investible universe for DFIs, and the scope for development impact, is unlikely to be smaller, but it will be different with net zero portfolio targets. For example, DFIs may start investing more in sectors that build international competitiveness in growing green industries as this would both reduce emissions and foster growth (Fankhauser et al, 2020; Hepburn & Ward, 2011; Ward et al, 2012). They may also pursue activities that have strong developmental co‐benefits such as mangrove restoration that improves the productivity of fisheries, provides hazard defence, enhances agricultural productivity, all whilst reducing emissions.…”