Research and innovation policies for the green transition
This chapter provides a selective review of policies that can help foster a transition towards green technologies. R&I are crucial to tackling sustainability challenges, and public policies are needed to direct technological change towards more environmentally friendly products and processes. Supply-side policies, such as R&D funding, and demand-side policies, such as carbon pricing and clean technology standards, are complementary. While there is urgency to invest in deployment of green technologies today, investing in R&D remains a central pillar for the medium- and longer-term potential of the green transition. A critical takeaway is that there is no silver-bullet policy. Governments should adopt and implement a coordinated mix of policies to achieve carbon-emission reductions that are as large as possible at the lowest possible cost. Despite all criticisms, carbon pricing remains an essential part of this policy mix.
1 August 2022
Published in Science, research and innovation performance of the EU 2022 (2022), Directorate-General for Research and Innovation (European Commission), pp. 646-663, Publication office of the European Union
This Chapter is part of the centre's Growth programme, Green Transition programme.
This publication comes under the following theme: Innovation drivers, Clean growth