Saturday, February 1, 2020

How to boost the transition to low carbon technologies?

Source: UK BEIS, 2019

Luck of the strategic incentives is an important reason behind the slow progress in the transition to low carbon technologies. Three major overlapping transition phases may explain where and how technological transition actually occurs: emergence of new technology, diffusion through markets, and reconfiguration of socioeconomic systems.
Based on the detailed analysis of these transitional phases, authors of the report Accelerating the Low Carbon Transition considered ten key economic sectors (see above figure) in a broad sense, including not just the technology and its production, but also the systems of its use, financing, ownership, infrastructure and governance.

The key message for policymakers on a national level is that it is not enough just put a price on carbon or adopt ambitious emissions reduction goals.
A more systematic, hands-on and strategic approach to policy-making is required to reconfigure the technologies, business models, infrastructure and markets in each of the greenhouse gas-emitting economic sectors.
Coordinated international action can accelerate low carbon technology transition process by identifying viable technologies more quickly; by increasing incentives for investment and economies of scale; and by leveling playing fields so that first-movers are not held back by the constraints of competitiveness.