Green industrial policy consists of a series of policy tools aimed at promoting the development of specific green industries. They can stimulate enterprises to invest in green technologies through measures such as research and development subsidies and tax incentives, and guide the whole society to reduce environmental negative externality behaviors.
Read MoreSince the onset of the COVID crisis, economic stimulus has been re-framed as roadmaps to ‘green recovery’ or ‘building back better’. The question is whether these ideas are useful for India, especially when it is facing a longer road out of the pandemic than previously thought. Evidence supports that they are relevant, for three reasons.
Read MoreMarket-based policy tools like the emissions trading system are a new endeavor for China, which has generally relied on command-and-control policies to regulate the environmental protection since the establishment of pollutant discharge fees in 1978. However, new approaches became more pressing as air pollution rose to be a major focus of Chinese society starting in 2008 and concerns about climate change issues increased over time.
Read MoreOn February 3rd, a proposal to establish a National Green Bank was floated in both chambers of the U.S. Congress. The proposal calls for $100 billion Clean Energy and Sustainability Accelerator to help unlock credit and direct financing towards technologies that need to be commercialized. This proposal also follows closely on the heels of the recently released National Academies of Science, Engineering and Medicine report on deep decarbonization (co-authored by Kelly Sims Gallagher) which calls for a green bank at the federal level that can help capitalize local level green banks. It comes amidst reports that governments, corporations and other entities last year raised over $490 billion in green bonds and social impact vehicles.
Read MoreSection six of the new Biden Administration directive on “Rebuilding and Enhancing Programs to Resettle Refugees and Planning for the Impact of Climate Change on Migration” orders the Assistant to the President for National Security Affairs (APNSA) to prepare and submit to the president a report on climate change and its impact on migration, with an eye to informing the administration on the international security dimensions of climate-related migration. The order includes studying “mechanisms” for identifying individuals displaced directly or indirectly from climate change and considering options for their protection and/or proposals for how findings on climate migration might inform U.S. foreign assistance programs. The report will cover opportunities to work with international organizations, non-governmental organizations, or localities trying to respond to such migration. It is a huge but important task. The President gave his team 180 days.
Read MoreThis week, ExxonMobil estimated that methane leakage from its oil and gas oil field activities should fall by 30 percent by 2025 –contributing to a total decline of 12 percent company wide -- as it brings its overall carbon intensity targets for methane and flaring emissions down 40 to 50 percent. That target is unacceptably modest, even compared to its peer oil companies. But ExxonMobil’s lack of climate ambition is symptomatic of a larger problem. The United States and Europe will need to align methane policies.
Read MoreDenmark’s announcement that it will phase out oil and gas production in its waters by 2050 and cancel all future licensing of acreage for oil and gas exploration may be symbolic given the country’s shrinking number of prospective areas but it is significant nonetheless. It is the largest oil and gas producer to set a firm end date for oil and gas development and builds on a trend of developed nations working towards ending oil exploration within their national borders including New Zealand, France, and Belize. The Danish decision will add pressure to other countries like Norway to rethink their oil and gas policies in the wake of commitments to climate change action. Several oil producing countries have failed to generate strong interest in auctions for exploration licenses recently amid flagging oil prices, including notably Brazil whose offering of exploration acreage failed to attract bids from the international oil majors in late 2019.
Read MoreThe website “Restoring American Leadership” which chronicles the transition plans of U.S. President Elect Joe Biden includes a vision specifically on climate change. It calls on the United States to go further than just rejoining the Paris Climate Agreement to build “a more resilient, sustainable economy – one that will put the United States on an irreversible path to achieve net-zero emission, economy-wide, by no later than 2050.” The plan references multiple ways to accomplish net zero goals including promoting climate smart agriculture, building greener and more resilient public transportation infrastructure, and decarbonizing the power sector as well as creating additional union jobs via a major program upgrading existing buildings.
The transition planning, as described, misses the opportunity to put U.S. actions into a global perspective. We offer some suggestions for the new administration, based on the Climate Policy Lab’s research, on how to marry national domestic climate policy with international challenges and opportunities.
Read MoreChina’s leaders are meeting this week to set the country’s long-term goals. An important element of the process will be the country’s next Five-Year Plan (FYP), which provides a roadmap and window into China’s vision for itself and its economy. This year’s FYP is particularly significant for the world because it will explain how the Chinese government plans to reach its newly announced target of zero net carbon emissions by 2060. Previous plans have emphasized the need for China to promote technology innovation self-sufficiency including in the important area of energy as well as to set targets for non-fossil energy, energy efficiency, coal caps, and carbon intensity. New energy technology, including electric and automated cars, renewable energy, and batteries, featured widely in China 2025, the country’s widely disseminated industrial plan. China’s 12th FYP targeted new energy vehicles as one of seven strategic industries, allocating billions of dollars to their development and promotion.
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