Even with the current financial crisis, now is not the time to put off efforts to reduce worldwide greenhouse gas emissions. The time frames at stake are different. The effects of the global economic downturn are short-term; the effects of climate change are not.

It is too early to speculate on economic growth in years to come, but one can expect that most economies will have the worst of the recession behind them by 2011. It is true that the crisis helps curb greenhouse gas emissions; the slowdown of economic and industrial activities reduces global energy demand and automatically cuts some energy-related carbon dioxide emissions. It gives some relief in the fight against climate change and makes it easier for developed countries to achieve their Kyoto targets.

But this “positive” impact is only temporary. Soon the U.S., Chinese and Indian economies will recover and energy demand will rebound. But energy and climate fundamentals will not change. And, as opposed to the financial crisis, they will impact humanity for decades. The economic recovery will have to cope with the same constraints as before: the ongoing process of human-induced climate change, scarcity of energy resources and, sooner or later, a new surge in energy prices when the economy recovers.

Let us not lose time using the economic slowdown as an excuse to postpone the much-needed transition towards a low-carbon economy. Some politicians and industrialists might try to throw in the towel by depicting climate mitigation as an unaffordable luxury in a period of recession. Indeed, climate change demands that our leaders to make an unprecedented effort to agree on regulatory frameworks and targets to reduce greenhouse gases emissions. What is at stake today is the foundation for the next phase of growth – hopefully a more sustainable one.

Yet the pace of investments in the energy sector, especially in renewable energy, has decreased because of lower demand, limited access to credit and low energy prices. The International Energy Agency emphasized at the April 2009 G-8 Environment Ministers’ meeting in Siracusa that increasing projects, delays and cancellations have created a “real risk that an energy supply crunch could choke off economic recovery as demand rebounds”. It is unfortunate that international negotiations for the next climate regime are taking place in 2009, when the global economy is at a low.

But let us not forget that the new regulatory framework will only enter into force in 2013! Hopefully the economy will be on firmer ground by then. In the meantime, short-term economic stimulus plans should pave a new path for low-carbon, resource-efficient development. Energy efficiency measures for buildings and vehicles will have the greatest payback since they reduce costs, create jobs and enable us to buy time to develop innovative technologies. Financing research and development and electricity grids for the delivery of power from renewables will also prepare the ground for a clean-energy economy.