Policies for low carbon growth
The paper presents a review of low carbon growth policies in two high-income (UK and Germany), five middle-income (China, India, Mexico, Guyana and Nigeria) and two low-income countries (Bangladesh and Ethiopia). The challenge of policies across countries is structured in six main components: finance for mitigation and adaptation; human capital; technological progress in energy, infrastructure and transportation; investment in agriculture and forestry; trade and private investment opportunities; and incentives and regulation for low carbon growth.
Based on the six main components, the report gives the following policy recommendations:
Finance for mitigation and adaptation
- An international agreement on emissions reductions is a priority to help unlock private finance for mitigation.
- Countries should be strategic in how they position themselves to attract finance for mitigation and adaptation
- Developing countries need to continue to lobby for financial support for mitigation and adaptation, and for reform that will help them benefit more from carbon markets
- Raising awareness may help increase public understanding of climate change and its effects, and the implications for people’s livelihoods and welfare going forward.
- Training in skills relating to green technologies and industries can help position countries to take advantage of any new low carbon growth opportunities and markets.
- Targeted investments in health, water and sanitation may help increase climate resilience by protecting human capital from the potential negative health impacts of climate change.
- Infrastructure improvements and the development of clean energy options should be made as soon as possible to reduce emissions as well as adapt to potential impacts
- It is critical for low-income countries to receive international support and technology transfer to facilitate their transition to a low carbon economy.
Investment in agriculture and forestry
- Comprehensive approaches that include improved agronomic practices; climate-resistant crop varieties; water, soil and fertilizer management, and better livestock management are needed.
- Forestry payments present a significant potential financing opportunity for some countries, if international mechanisms such as REDD can be successfully developed.
Incentives and regulation for low carbon growth
- Internationally coordinated action to mitigate climate change can help reduce the risk of a ‘race to the bottom’ in relation to the taxation and regulation needed to stimulate low carbon growth.