The narrative of recovering from the impacts of COVID-19 by way of ‘building back better’ has dominated discussions on COVID-19 recovery. However, current efforts are lagging behind the IPCC’s recommendations. This report explores how the Nordic countries' recovery financing plans have been tied to "green" principles and what financial mechanisms could further support and ensure a greener recovery. 

The Nordic countries developed recovery plans with significant acknowledgement of the green transition in mind. The Nordic countries have supported economic recovery through a wide range of financial instruments. In the long term, fiscal reforms are necessary to embed climate-related criteria in economic growth. Moreover, it is also important to strengthen capacities to plan inclusive green transitions and monitor finance flows for its impact on the green transition.