A report launched at COP26 by leading international economists and policy experts, including academics from the Global Sustainability Institute at Anglia Ruskin University (ARU) shares that Governments must intervene to shape markets for new clean energy technologies in order to drive the rapid change necessary to meet international climate targets
The report shows how targeted policy support and investment has led to dramatic cost reductions and huge market growth in wind and solar power and LED lighting, and it calls on governments to adopt the same approach to accelerate new low-carbon industries, such as electric vehicles and steelmaking.
It says market-shaping policies can play a key role in supporting global ambitions to accelerate new clean energy technologies, encouraging international collaboration to drive rapid innovation and scale this decade – a central pillar of the COP26 conference.
The New Economics of Innovation and Transition: Evaluating Opportunities and Risks finds that policy support and government-led investment in clean technologies shapes the growth of markets, unlocks further private sector investment, and can rapidly drive down costs. With the right policies in place, clean technology markets have grown and costs fallen much faster than most people expected.
