Net-Zero Political Economy for 40% of global GHGs

Great pleasure to announce that the full pack of 5 Net-Zero Political Economy briefings for ???? ???? ???? ???? ???? is online now. Those 5 countries currently account for 45% of the global population and 40% of greenhouse gas emissions. Each of them is an authors' take on the subject where - as we know well - there is no "net zero" single truth and any succesful action will be a combination of various approaches and intervention points.

Each brief includes a call to action/takeaway as below. Please consult this website to read the full papers: https://climatestrategies.org/projects/net-zero-political-economy/ Chapeau bas to the authors and everyone involved!

????: The transition towards a net zero economy in Brazil offers an opportunity, even a necessity, to engage actors at the local level and find economically powerful groups (such as industry associations or representatives) willing to defend climate-compatible public policies. For that, a broader perspective is required, particularly focused on processes that lead to structural changes, for instance in the incentives faced by local communities, agricultural producers, logistics’ companies and other stakeholders, instead of short-term implementation of narrowly focused measures. In particular, given the country’s emissions profile, climate and deforestation policies need to be: i) better framed and ii) consistent with national development, income generation and jobs creation.

????: Despite dependence on the petroleum sector, Nigeria’s Updated NDC has raised ambitions to cut GHG emissions by widening the economic sector coverage to include the waste and water sectors.

It has also raised international support-driven, conditional ambition from 45% to 47% emissions reductions, at a time of economic contraction. Together with the unconditional 20% reduction below business as usual levels by 2030, this aligns with the Paris Agreement 1.5°C pathway. Mobilizing international support and private sector investment would enable Nigeria to reach peak GHG emissions this decade. Nigeria can be transformed into a net-zero economy with targeted support for local cleantech entrepreneurs and researchers, especially by increasing engagement with and collaboration between key decision-makers in government, and the private sector as well as the main influencers within the civic engagement space.

????: There is a huge opportunity to accelerate China’s net-zero transition through funding collaboration and knowledge sharing. This can have huge impact in the domestic market and also influence the global transition, by supporting the world’s economic and productive powerhouse to decarbonise and create economies of scale for specific technologies that support cheaper decarbonisation worldwide. China’s commitment to implement its 2030-2060 net-zero goals will make a significant contribution to effective climate governance at a global scale.

????: The transition to net-zero emissions in Indonesia requires a cross-cutting, multi-level, multi-stakeholder approach.

Broader coordination and engagement are needed to move away from sectoral approaches that hinder the achievement of the NZE target due to inconsistent and counterproductive policies.

Some cross-cutting opportunities are emerging for philanthropy to respond to these issues, namely blended finance that enhances collaboration across public and private sectors, supporting a just transition for all, starting with the energy sector as a template for all NZE activities, and multi-level and multi-actor coordination mechanisms that engage sub-national governments, from provincial, district, all the way down to the village level.

????: There is a big opportunity to accelerate India’s net-zero transition and make the country a pioneer in the clean energy space. The scale of investment required for this to happen is enormous, estimated at USD 10.1 trillion by 2070and USD 5.7 trillion by 20503, while the current GDP is about USD 3.5 trillion. The national government has provided a mandate to support the transition but operationalising it will require strategic policy focus across key intervention areas, namely:

Socially just and climate resilient growth path

The social cost of energy transition, in terms of regional and sectoral inequality, poverty and affordability, adds another layer of complexity for the policymakers. The focus should be towards enabling access for energy transition-based technologies, raising capital for hard-to-abate sectors like industry and long-distance transport, and technically skilling the workforce to help them get a job in green industries.

Financing Plan

Financial support from the private sector, as well as national and international development finance institutions (DFIs) is imperative. Knowledge sharing, technology transfer, and new research on the market opportunities can stimulate investment and growth of the clean energy sector.

Technological strategic development

For an effective and efficient transition, India needs a holistic approach. This should include the strengthening of power sector capabilities (storage, offshore wind, transmission), as well as technological innovation and investment in clean energy applications in energy-intensive industries, forestry and agroforestry. In addition, energy supply chains should be diversified as part of external trade and progressive fiscal policies should be adopted with appropriate coordination between various sectors, agents, and institutions.