In the fifth Policy brief ISIGrowth researchers have analysed the conditions to move away from a fossil fuel-based economy, while spurring growth and employment
Climate change is one of the most significant challenges humankind has ever faced. Fostering growth while reducing emissions requires a transition towards low carbon energy technologies and, more extensively, it requires greening our economic system. Fundamentally a green economy requires changes to production, distribution and consumption patterns, and innovation strategies that can eventually lower the material content of all sectors.
Moving towards such goals requires ambitious and timely policies on both the supply side and the demand side, creating the conditions for the transition to happen and, further, generating “good” growth and jobs.
In the fifth Policy Brief – ‘The green transition. Public policy, finance and innovation’ by F. Lamperti, M. Mazzucato, A. Roventini and G. Semieniuk – ISIGrowth researchers have analysed the conditions to move away from a fossil fuel-based economy, while spurring growth and employment. Beyond the selection of correct policy tools, a key question is how to finance the turn from fossil fuel based (brown) to renewable energy (green) technologies.
Three main results emerge from the analysis. First, policy interventions should be timely and substantial. Second, government-led investments constitute the most valuable and effective form of renewable energy financing. Third, a mission oriented approach – focussed on clean growth missions – can help stimulate innovation across multiple sectors.