The decarbonisation of hard-to-abate sectors requires targeted policy support to ensure rapid emissions reduction, avoid stranded asset risks, and develop transition opportunities.
Effective policy support will help to overcome market failures and problems of inertia, increase the green asset pipeline and channel funding to transition the whole economy. Transition policy development will enable countries to develop new green industries, conserve their natural resources, and ensure sustainable growth.
This report outlines 12 policies which will ensure sufficient levels of ambition, drive investment flows to deliver ambition, and facilitate rapid action: making the transition green, cheap, and easy. Transition policy frameworks should be guided by certain overarching principles: efficient use of resources, avoiding lock-in of high-carbon technology, ensuring smooth/just transition, and prioritising uses of scarce technologies.