Transforming the Economy

Abstract

The global ecological crisis poses much greater risks to humanity than Covid-19. At the same time, the pandemic provides a unique opportunity for governments to pursue a ‘greener’ and more sustainable future, for example through large-scale investments in clean energy sources, energy efficiency, waste reduction technologies, climateresilient infrastructure, regenerative agriculture and biodiversity protection. Yet, despite the urging of leading economists, ecologists and investors, measures to enhance ecological sustainability have not been prioritised in most governmental fiscal and regulatory responses to the pandemic. This article briefly summarises the nature of the current ecological crisis and, with particular reference to New Zealand, the policy measures required for an effective response. Fundamentally, a step change is needed from the current linear economy (based on finite energy sources and other non-renewable natural resources) to a more circular economy (based on renewable energy sources, the minimisation of waste and the efficient use of natural resources).