We examine the economics of climate innovation and its role in the clean technology transition. It outlines the incentives, market failures, and policy levers that shape the development and diffusion of clean technologies; traces global patterns in technology development and deployment; and highlights frontier challenges and open questions related to climate adaptation, critical mineral supply chains, artificial intelligence, and geopolitics. The analysis explores the role of effective climate policy, stressing the relevance of coordinated approaches that match instruments to technology maturity and local context.

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24 November 2025     Paper Number CEPDP2135

Download PDF - The Economics of climate innovation: technology, climate policy, and the clean energy transition

This CEP discussion paper is published under the centre's Green Transition programme.

This publication comes under the following theme: Green technology adoption and diffusion