Green Industrial Policies – building just and inclusive transitions through global partnerships

Introduction

The urgency to decarbonize sectors such as high-emission industries and transport is paramount for achieving the Paris Agreement’s objectives, as these sectors account for 30% and 25% of global emissions respectively. An unprecedented commitment from the world’s leading economies to combat the climate crisis, directing investments to low-carbon energy and industry investments, adopting market and trade measures to promote and protect green industries, and investing in securing access to critical minerals for the energy transition.

Whilst the need is very urgent, there are concerns that the new wave of green industrial policies could impose unfair costs on emerging and lower-income countries or inhibit their inclusion in the evolving global green transition. Implementing major policy efforts in the EU such as the Green Deal, the Green Industrial Plan, and the Critical Materials Act and the Inflation Reduction Act in the US are dependent on building strong partnerships with emerging and developing countries that have key mineral resources and unique renewable energy potential. For this reason it is critical for both major and middle- and lower-income economies that green industrial policies do not lead to negative implications for global decarbonization and international cooperation.

The Leadership Group for the Industry Transition (LeadIT) has played a pivotal role in bringing the decarbonization of emission-intensive industries to the forefront of the global agenda, and has been a leader in emphasizing the challenges of both higher-income and lower-income countries.

The Event

This seminar will bring together government and industry leaders to address the global challenges and opportunities of green industrial policy. The focus will be on ensuring that these policies are just, fair, and inclusive of emerging and lower-income countries. The event will feature high-level representatives from emerging and developing nations, alongside senior officials from the EU Commission, MEPs, EU member state attaches, and business leaders.

Themes

• How do major economies’ green industrial and trade policies benefit all countries in green transitions, and what are the risks of these policies burdening economies with less capacity for adopting industrial support measures domestically?
• What is needed to ensure fair trade conditions that support emerging and developing countries in the development of local low-emissions industries:
• Embedding global green development into climate trade measures.
• Supporting value added green industrial production in developing countries – policy, partnership, and finance needs.
• What cooperation measures can ensure that green industrial policies in major economies broadly benefit all countries?
• How can partner countries capitalize on shared interests related to critical materials, renewable energy resources, green industry, and sustainable development?
• Is there a role for a unique offer on technology co-development/access and skills training in creating partnerships with emerging and developing countries?
• What is the role of South-South cooperation as countries try navigate the new geopolitical dynamics of the energy transition?

Goal

The event aims to initiate discussions that will inform the next steps in ensuring the green industrial race is globally inclusive and leads to a just transition for all.

Organised with the support of the Mistra Geopolitics research programme