Using the case of two emerging economies, Indonesia and Vietnam, this paper investigates whether the stimulus plans align with a country’s sustainable energy and climate targets. This study finds that despite ambitious country targets for green energy transition, these countries may miss opportunities for a green future due to limited fiscal measures directed to green recovery. The pandemic has exacerbated public fiscal budgets that may further limit the capacity to fund green projects. Amidst the uncertainty and challenges brought by the pandemic, it is critical to balance between promoting economic recovery and achieving sustainable energy and climate targets. To this end, the authors suggest several policy recommendations to achieve these targets amid uncertainty brought by the COVID-19 pandemic for emerging economies.
This paper was published in Journal Sustainability 2023, 15(3), 2174. This study was supported by the Energy Foundation China (EFC) through the project “ACE-EFC Joint Studies on COVID-19 Impact on Energy Sector Development and Variable Renewable Energy Smart Microgrid – Electric Vehicle Integration”.
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