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Green industrial policies for the net-zero transition
Countries are increasingly turning to industrial policy to address concerns over climate change, energy security and strategic autonomy. This paper explores the potential and risks of green industrial policies with a focus on green subsidies, and illustrates some key design considerations that governments should take into account when providing such support. To get green industrial policy right, governments need to ensure that support is targeted, time-bound, and accompanied by effective monitoring and evaluation. Large data gaps remain on the scale, scope and impact of green industrial policy ― filling these and co-operating internationally on good-practice policy design will be essential to minimise risk and realise the full benefits green industrial policies can offer.
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