Green industrial policy Shuldyakova Milena 2019 The definition

Green industrial policy Shuldyakova Milena 2019

The definition of green industrial policy (Cosbey) Supporting the development of domestic industries that produce green goods or goods that: have better environmental performance in operation than their competitors including electric vehicles, renewable electricity-generating equipment, energy-efficient appliances directly address environmental problems such as environmental remediation technologies are produced in a way that is environmentally preferable to their competitors as in the case of organic agriculture

Three basic principles of effective industrial policymaking Embeddedness: Industrial policy should be conceived as a collaborative process of discovery in which public and private actors closely interact and continuously negotiate and adapt their contributions to the development of the respective industry. Discipline: Clearly defined objectives, monitoring, evaluation routines, clear and transparent rules, conditionality and sunset clauses Accountability: Policymakers and implementing agencies should be held accountable for their industrial policies.

Six important ways of green industrial policy the focus on environmental externalities as an additional and particularly damaging market failure a clear predictable distinction between ‘good’ and ‘bad’ technologies, based on their environmental impacts, and therefore systematic steering of investment behaviour in a socially agreed direction the urgency to achieve structural change within a short period of time, to preclude the risk of catastrophic environmental tipping points enhanced uncertainty due to long time horizons of some transformations as well as dependence on policy changes additional policy interfaces and therefore the need for particularly encompassing policy coordination a motivation to manage global commons, such as the atmosphere and oceans, for long term sustainability, which may not always be aligned with immediate national interests

Gaining competitive advantage with green industrial policy Green standards and certifications enable firms to differentiate their products from those of their competitors Firms can make money by selling and adopting green technology Investment in greener technology can lead to productivity improvements that more than offset additional costs of environmental protection.

Key elements of a green transition approach for developing countries Pro-active planning on the part of government: the development of a longterm vision and a clear roadmap with interim goals and steps This vision and roadmap need to be communicated early and clearly to investors, innovators and other stakeholders to identify technologies and innovations and to prepare the producers and consumers The selection of options for support and the forms of support should be conducted carefully, with the help of independent experts. A sequential approach. Explicitly include policy learning in the phase-in process to achieve socially and economically acceptable and successful implementation. Designing a policy package: policy-push and market-pull policies, research and development, institutional capacity, skill and job creation measures. Adequate implementation control mechanisms.