A study of 1,500 climate policy measures across 41 countries and six continents has found that most have failed to achieve large-scale emissions reductions.
Only 63 cases were found to be successful by a group of researchers led by the Potsdam Institute for Climate Impact Research and the Mercator Research Institute on Global Commons and Climate Change, whose work has been published this month in the journal Science.
The study looked at policy interventions implemented between 1998 and 2022 covering “the entire spectrum of climate policy instruments”, from energy-related building codes to purchase subsidies for climate-friendly products, and carbon taxes.
Incentives are crucial
Key to the success of these highlighted cases – which led to average emission reductions of 19% – was the inclusion of tax and price incentives in well-designed policy mixes, the research found.
“Our findings demonstrate that more policies do not necessarily equate to better outcomes,” said lead author Nicolas Koch.
“Instead, the right mix of measures is crucial. For example, subsidies or regulations alone are insufficient; only in combination with price-based instruments such as carbon and energy taxes can they deliver substantial emission reductions.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCoal-fired plants and EVs
Among specific examples, the study found that bans on coal-fired power plants or combustion engine cars don’t result in major emissions reductions when implemented alone.
Successful cases also brought in tax or price incentives such as with coal-fired power generation in the UK or with electric cars in Norway.
The UK reduced its coal power from 29% in 2012 to 2% in 2020, replacing it mostly with wind and bioenergy but also with some gas, according to the World Resources Institute.
Norway aims to become the first country in the world to end the sale of new petrol and diesel cars, by 2025. At present, more than 90% of new cars sold are electric.
