How Governments Can Lead Global Green Transition

Extreme weather events like floods, storms, droughts, and wildfires will become more frequent unless significant action is taken to reduce global emissions of greenhouse gases.

The Copernicus ERA5 dataset showed that August 2024 was 1.51°C above the pre-industrial level. This marks the 13th month since July 2023, when the global average surface air temperature exceeded the Paris Agreement limit of 1.5°C above pre-industrial levels.

The UNEP Emissions Gap 2023 report shows that countries’ climate pledges embodied in their Nationally Determined Contributions (NDCs) fail to achieve the 1.5°C temperature limit. Instead, they will place the world on track for a 2.9°C warming this century. Not only do temperature records continue to be broken – global GHG emissions and atmospheric concentrations of carbon dioxide (CO2) also set new records in 2022, the report says.

As temperatures hit new highs and countries fail to cut emissions stringently, unprecedented action is needed, which should be reflected in countries’ NDCs, which they are requested to submit in 2025.

Governments have a pivotal role in accelerating domestic emissions reduction, committing to reaching net zero and providing financial and technical support to low—and middle-income countries in their transition from fossil fuels.

Their actions can either accelerate the rapid and widespread adoption of renewable energy technologies and transition from fossil fuels or slow it down.

The EY article highlights how governments can facilitate the green energy transition, from policy interventions to financing measures to support the transformation of energy and industrial systems, improve energy efficiency, tackle environmental pollution, and protect and replenish natural capital.

It mentions that many governments are adopting a stick-and-carrot approach, including green taxes on harmful environmental activities, tighter regulations, and new environmental standards and certification for energy performance, emissions and pollutants – including tax rebates for meeting these standards.

The said governments also provide subsidies and tax rebates to boost demand for green products and services like EVs, solar panels or renewable energy and offer subsidies and grant funding to research institutes, academic institutions, and private R&D firms to boost innovation and develop transformative technologies such as renewable energy, carbon capture, waste management, and energy efficiency.

Six government priorities for accelerating the green transition

According to the article “Six ways that governments can drive the green transition,” these actions can set the world toward a more sustainable future that balances environmental, economic, and social outcomes.

1. Provide detailed action plans with clear accountability
2. Be bolder in incentivising the market and mandating change
3. Boost innovation through increased funding
4. Improve the design and delivery of green initiatives
5. Act as a role model for other parts of the economy
6. Promote a whole-of-society, people-centred approach

However, some factors prevent the government from realising its sustainability goals.

Among these are politics – political rhetoric promising change is often swayed by public opinion, competing priorities for policies and funding which could reduce funds for green investments, and economic pressures and industry lobbying – the pressure to stimulate economic recovery forces governments to support and fund fossil fuel industries, and sometimes roll back environmental protections.