Two decades of climate policy: What works and what doesn't

Climate policy has become a global priority, with nations around the world striving to implement effective measures to combat climate change.

However, the conversation around these policies often becomes entangled in debates over which approaches genuinely reduce emissions and which fall short of making real progress.

Moreover, many discussions focus primarily on mainstream policies, overlooking numerous lesser-known but potentially impactful measures.

A recent study aims to broaden this perspective by providing a comprehensive analysis of various climate policy instruments implemented over the past two decades.

A collaborative endeavor

This monumental study is a result of the joint efforts of several notable institutions. Among them, the Potsdam Institute for Climate Impact Research (PIK) and the Mercator Research Institute on Global Commons and Climate Change (MCC) have taken the lead.

Also contributing their knowledge and expertise were experts from the University of Oxford, the University of Victoria, and the Organisation for Economic Co-operation and Development (OECD).

Aiding this endeavor is an innovative digital resource, the “Climate Policy Explorer.” This tool provides an in-depth overview of the results and methodology involved and is accessible to the public.

New insights, new perspectives

“We systematically evaluated policy measures that have rarely been studied until now, providing new insights into well-designed combinations of complementary policy instruments,” noted study co-author Nicholas Koch.

“Our findings demonstrate that more policies do not necessarily equate to better outcomes. Instead, the right mix of measures is crucial. For example, subsidies or regulations alone are insufficient; only in combination with price-based instruments, such as carbon and energy taxes, can they deliver substantial emission reductions.”

To illustrate this point, the study brings up specific examples such as bans on coal-fired power plants and combustion engine cars.

The research shows that these measures do not result in significant emissions reductions when implemented alone. Successful implementations are observed only when coupled with tax or price incentives.

Climate policy interventions

The team examined 1,500 policy interventions implemented from 1998 to 2022. The scope included a wide range of climate policy instruments, encompassing everything from energy-related building codes to purchase subsidies for climate-friendly products and carbon taxes.

The experts identified 63 successful policy interventions with total CO2 emission reductions between 0.6 billion and 1.8 billion metric tons.

“While it remains challenging to precisely disentangle the effects of individual measures within a policy mix, our 63 success cases provide systematic insights into effective policy combinations, and show how well-designed policy mixes depend on sectors and the development level of countries,” said lead author Annika Stechemesser.

“This knowledge is vital for supporting policymakers and society in the transition to climate neutrality.”

The Climate Policy Explorer offers invaluable insights into specific countries, sectors, and policy measures.

Whether you’re interested in the pilot emissions trading systems in China, the UK’s minimum carbon price, the US’s approach to the transportation sector, or Germany’s eco-tax reform, the interactive tool provides a wealth of information.

Policy innovation and climate action

As the world grapples with the realities of climate change, the development of innovative policies has become increasingly vital.

The study highlights that traditional approaches, such as direct regulations and subsidies, are not sufficient on their own. Innovations in policy design and implementation are necessary to achieve substantial and sustainable emission reductions.

One such innovation highlighted by the study is the integration of digital platforms like the Climate Policy Explorer. This tool allows policymakers and researchers to track and analyze the effectiveness of various policy measures across different sectors and regions, facilitating a more data-driven and evidence-based approach to climate action.

The study points to specific instances where innovative policies have shown promise. For example, the adoption of dynamic carbon pricing models that adjust based on real-time market data can provide more efficient and adaptive responses to changing economic and environmental conditions.

Another example is the use of blockchain technology to ensure transparency and accountability in carbon offset programs.

By embracing these innovations, countries can not only enhance their ability to meet emission targets but can also achieve economic growth and development through new green technologies and industries.

The study is published in the journal Science.

—–

Like what you read? Subscribe to our newsletter for engaging articles, exclusive content, and the latest updates. 

Check us out on EarthSnap, a free app brought to you by Eric Ralls and Earth.com.

—–