G7 leadership for sustainable, resilient and inclusive economic recovery and growth

An independent report requested by the UK Prime Minister for the G7

Writing team: Led by Nicholas Stern, supported by a team at the Grantham Research Institute, coordinated by Josué Tanaka and including Amar Bhattacharya, Hans Peter Lankes, Roberta Pierfederici, James Rydge, Charlotte Taylor and Bob Ward.

This report sets out core elements of an overarching and integrated strategy for recovery from the COVID-19 pandemic and growth, as a contribution to the preparation for the G7 Summit taking place in Carbis Bay, Cornwall (11 to 13 June 2021). While the report is an independent contribution, the team has consulted with officials involved in the preparation of the G7 meetings so that it can be as useful as possible to the deliberative for and the outcome of the Summit. A summary report published on 10 May 2021 gained valuable feedback.

The report argues that in setting specific priorities and targets as part of an integrated global agenda, the summit must give momentum to a shared international vision for strong recovery and sustainable growth, provide policies for delivery, and mobilise finance for action. This is a “special moment in history, offering the chance, indeed duty, for the G7 to lead a globally coordinated recovery, driven by sustainable investment and innovation by both the private and public sectors”.

• Part One highlights the global challenges ahead and the significant potential opportunities and benefits arising from the transition to a net-zero emissions and climate-resilient economy, including stronger growth, increased employment opportunities across the economy, more robust biodiversity, a healthier population, and reduced risks of pandemics.
• Part Two sets out a vision for sustainable, resilient and inclusive recovery and growth, and a strategic approach to achieve this vision.
• Part Three identifies the specific components of a strategy driven by investment and innovation supported by enabling economic policy and financial measures.

The report is supplemented by the following background papers, which provide additional analytical insight:

• Ehtisham Ahmad, Financing sustainable investments: national and subnational considerations for building back better.
• Nicholas Stern and Dimitri Zenghelis, Fiscal responsibility in advanced economies through investment for economic recovery from the COVID-19 pandemic.
• Julia Turner, Mark Meldrum, Veerle Haagh, Oscar Ibsen and Jeremy Oppenheim (SYSTEMIQ), Investments for Green Recovery and Transformational Growth 2020–30

The summary report (21pp) is available here.