7.3 National and Subnational Climate Change Policies

National and subnational climate policies are crucial in tackling global warming. Countries adopt various approaches based on their unique contexts, from carbon pricing to renewable energy mandates. The EU leads with ambitious targets, while the US lacks comprehensive federal action.

Subnational actors like states and cities often fill policy gaps, implementing innovative strategies. Factors like political polarization, economic concerns, and international pressure shape climate policies. Effective action requires careful policy design, stakeholder engagement, and global cooperation.

Climate Change Policies Across Nations

Policy Approaches Reflect Unique Contexts

Top images from around the web for Policy Approaches Reflect Unique Contexts

• 

  How Environmental Regulations Affect the Efficiency of Green Technology Innovation? View original

  Is this image relevant?

• 

  More national climate policies expected, but how effective are the existing ones? — European ... View original

  Is this image relevant?

• 

  Politics of global warming - Wikipedia View original

  Is this image relevant?

• 

  How Environmental Regulations Affect the Efficiency of Green Technology Innovation? View original

  Is this image relevant?

• 

  More national climate policies expected, but how effective are the existing ones? — European ... View original

  Is this image relevant?

1 of 3

Top images from around the web for Policy Approaches Reflect Unique Contexts

• 

  How Environmental Regulations Affect the Efficiency of Green Technology Innovation? View original

  Is this image relevant?

• 

  More national climate policies expected, but how effective are the existing ones? — European ... View original

  Is this image relevant?

• 

  Politics of global warming - Wikipedia View original

  Is this image relevant?

• 

  How Environmental Regulations Affect the Efficiency of Green Technology Innovation? View original

  Is this image relevant?

• 

  More national climate policies expected, but how effective are the existing ones? — European ... View original

  Is this image relevant?

1 of 3

• Countries have adopted a wide range of policy approaches to address climate change, reflecting their unique political, economic, and environmental contexts
• Key variables that shape national climate policies include level of ambition, policy instruments, and sectoral focus

Comparing Developed and Developing Countries

• The European Union has historically been a leader in climate action
  • Set ambitious emission reduction targets
  • Implemented a cap-and-trade system, renewable energy mandates, and energy efficiency standards
• In contrast, the U.S. has lacked a comprehensive federal climate policy
• Developing countries face the challenge of reducing emissions while also growing their economies and expanding energy access
  • China and India have made significant investments in renewable energy but continue to rely heavily on coal

Advocacy from Vulnerable Nations

• Small island nations and other countries highly vulnerable to climate impacts have been vocal advocates for ambitious global action, despite their relatively low emissions
• These countries are already experiencing severe impacts from rising sea levels, more intense hurricanes, and other climate-related threats
• They have pushed for stronger international agreements and greater financial support for adaptation and resilience

Policy Instrument Effectiveness

Carbon Pricing

• Carbon pricing, through taxes or cap-and-trade systems, is widely seen as a critical tool for internalizing the social cost of carbon and incentivizing emission reductions
  • Puts a price on each ton of carbon dioxide emitted, making high-emission activities more expensive
  • Encourages businesses and consumers to shift towards cleaner energy sources and more efficient practices
• However, political opposition to new taxes or increased energy prices remains a major barrier
  • Concerns about impacts on competitiveness, employment, and energy affordability for low-income households
  • Revenue recycling and other design features can help address these concerns

Renewable Energy Policies

• Renewable portfolio standards and feed-in tariffs have been effective in driving deployment of wind and solar power
  • Require utilities to generate a certain percentage of their electricity from renewable sources
  • Offer guaranteed prices for renewable energy producers, reducing investment risks
• However, these policies may have higher costs than market-based approaches
• Integrating high levels of variable renewable energy also presents technical and economic challenges
  • Need for energy storage, grid upgrades, and backup generation to ensure reliability

Performance Standards and Information Disclosure

• Performance standards, such as fuel economy standards for vehicles or energy efficiency standards for appliances, can drive technological innovation and emission reductions
  • Set minimum requirements for energy efficiency or emissions performance
  • Encourage manufacturers to develop and deploy cleaner technologies
• However, performance standards typically cover only new equipment and can have slow turnover
• Information disclosure requirements, such as mandatory greenhouse gas reporting or labeling schemes, can help inform consumer and investor decisions
  • Provide transparency about the carbon footprint of products or companies
  • Allow for better-informed decision making and market pressure for emission reductions
• However, the impact of information disclosure on emissions may be limited without additional incentives or regulations

Subnational Climate Action

State and City Leadership

• In countries lacking strong federal climate policies, states and cities have often taken the lead in setting emission reduction targets and implementing policies
  • California has a cap-and-trade program and renewable portfolio standard
  • New York City has committed to 80% emission reductions by 2050
• Subnational governments can serve as "laboratories of democracy," testing out innovative policy approaches that can later be scaled up to the national level

Regional Initiatives and Business Action

• Regional initiatives, such as the Regional Greenhouse Gas Initiative in the northeastern U.S., allow for coordinated action across state boundaries
  • Set regional emission reduction targets and create market-based mechanisms for achieving them
  • Facilitate knowledge sharing and reduce concerns about competitiveness impacts
• Businesses are increasingly setting their own emission reduction targets and investing in clean energy
  • Driven by concerns about climate risks, consumer pressure, and the falling costs of renewables
  • Corporate purchasing of renewable energy has grown rapidly in recent years (Google, Apple, Walmart)

Transnational Networks

• Transnational networks, such as the C40 Cities Climate Leadership Group and the We Mean Business coalition, allow subnational actors to share best practices and advocate for stronger national and international policies
• These networks provide a platform for cities and businesses to demonstrate their climate leadership and influence the global policy agenda
• They also facilitate collaboration and knowledge sharing across borders, helping to accelerate the diffusion of effective policies and technologies

Factors Influencing Climate Policy

Political Polarization and Special Interests

• Partisan polarization and the outsized influence of fossil fuel interests have hindered climate action in many countries
  • The U.S. has seen strong opposition to climate policies from Republicans and industry groups
  • Australia repealed its carbon tax after a change in government
• Countries with large fossil fuel reserves or heavy industrial sectors often face political pressure to protect those industries, even as the costs of clean energy fall
  • Poland has resisted stronger EU climate policies due to its reliance on coal

Economic Concerns and Policy Design

• Economic concerns, such as impacts on energy prices, competitiveness, and employment, can make it difficult to build support for ambitious climate policies
• Designing policies to address these concerns is crucial for building political support and ensuring a just transition
  • Revenue recycling from carbon taxes can offset other taxes or fund investments in clean energy and energy efficiency
  • Transition assistance programs can help workers and communities dependent on fossil fuel industries
• Careful policy design, stakeholder engagement, and public communication are essential for overcoming economic and political barriers to climate action

International Pressure and Diplomacy

• International pressure and diplomacy can also shape national climate policies
• The Paris Agreement, which sets a global framework for emission reductions, has spurred countries to develop and strengthen their national climate plans
  • Countries submit nationally determined contributions (NDCs) outlining their emission reduction targets and policies
  • The agreement includes mechanisms for increasing ambition over time and providing support to developing countries
• However, the withdrawal of the U.S. under President Trump underscores the fragility of international cooperation
• Maintaining and strengthening the global consensus for ambitious climate action will require ongoing diplomatic efforts and leadership from a diverse range of countries and actors