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Green Innovation Policies

Diskussionspapiere extern

Berlin: d\carb future economy forum, 2024, 4 S.

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Achieving climate neutrality and energy independence will require the accelerated diffusion ofexisting technologies, further cost reductions, as well as innovation in new technologies.However, climate related frontier innovation, as measured by patent fi lings, has been decliningsince 2012. In contrast, the deployment of existing technologies seems on the rise. The focus ondiffusion and commercialization of existing climate related technologies rather than thedevelopment of new innovations is the conseq uence of a policy emphasis on deployment ratherthan on R&D support. R educing the costs of carbon free technologies so that they become fullycompetitive with their high carbon alternatives should be a primary objective of climate policyand that Science, Technology, Innovation and Industrial policies are critical to reachin g thisgoal. Increasing public support for technologies that are still far from market, but necessary toreach carbon neutrality by 2050, is urgent. This should be complemented with othe r climatepolicy instruments such as carbon pricing and the removal of fossil fuel subsidies toencourage the adoption of clean technologies that are closer to market and redirecttechnological progress toward clean innovations.