Innovation policy, regulation and the transition to net zero

Abstract

This paper addresses the role of innovation policy, including regulation, in the transition to a society characterized by net zero emissions of climate gasses. A broad range of policy-actors, notably the European Union, have already publicly embraced this goal. Nevertheless, transforming the society to a state consistent with the net zero objective is a very demanding task, and to succeed in this endeavour extensive change – including a lot of innovation - in the way energy is provided, distributed and used across all parts of society will be needed. A crucial question, therefore, is how policy – and particularly innovation policy – can contribute to mobilize innovation for this purpose. This paper critically examines the extant literature on the subject, and discusses examples of transformational change from policy practice, including onshore wind and solar in Denmark and Germany; offshore wind in the UK, Denmark, and Norway; and the emerging quest for zero-emission ships.