This paper investigates how the economic crisis caused by the COVID-19 pandemic affects environmental degradation. We assume that the pandemic results in restrictions in economic activity and disruption of the global supply chain. The methodological approach taken in this study is based on the Kuznets environmental curve. We are using deterministic dynamic models to explain environment degradation and economic destabilization. Our findings suggest several courses of action for economic policy. For example, that optimal stimulation of the economy in the current crisis could take place through the support of environmentally friendly investments and legal and organizational solutions.