Long-term commitments to Heavily reduced emissions
To date, little concrete action has been taken to drive actual changes in society and current policy measures are too weak to provide sufficient incentives for industries and the society to make the long-term commitments to reduce emissions to the levels required. A number of countries have tried different instruments such as taxes, certificates, subsidies, performance standards and tradeable permits to promote non-fossil energy supply and energy efficiency improvements in various sectors or in various constituencies during the last decades. This has produced a certain amount of learning and experience but generally the incentives are too weak or too narrowly focused to initiate the transition needed. It is obvious that the necessary changes need to be transformative on the scale of the whole society – small gradual changes in the right directions are not enough.
Why take up the challenge?
- With the Paris agreement, there is worldwide consensus to reduce greenhouse gases globally.
- The world is at the start of a major transformation of its energy systems, transportation, and housing, including the production of base materials.
- The societal cost to mitigate climate change is a small share of the entire economy.
- If the world develops in line with the Paris agreement we will see a very high demand for carbon neutral products and services.
- Industries that start the transition towards non-emission supply chains at an early stage will be well equipped in a carbon constrained world.
- Also – early investors in carbon free solutions will be able to capitalize on their investments by exporting to an expanding global market.