The transition to net zero is an opportunity for businesses to improve productivity, generate new jobs, and create the markets of the future, but this is not guaranteed. While the prospects are promising, many sectors have not yet reached the tipping point where making the transition is the obvious move. So how can the government make sure that it provides the relevant support to make this the new reality?
The transition from a carbon to a zero carbon-based economy is a systemic change that will require consistent policy support across a wide waterfront. This will range from financial support to – more importantly – changes to regulatory and institutional frameworks. Investing in a net zero economy might be a matter of essential insurance for companies to sustain productivity levels in the long run.
The paper also includes a number of policy implications.
Author: Jonatan Pinkse (The University of Manchester)
