COP26 Seminar Series: Delivering a fair transition to net zero. Aligning investment incentives to policy objectives

A just transition to a net zero society depends on the combined actions of diverse agents, ranging from Government departments, to private sector companies and individual citizens. Each of these agents will be responding to a mixture of regulations, incentives and motivations which will determine the shape and pace of the transition. To be most effective, these incentives need to be consistent and aligned with the objectives of a just transition. In practice this is not the case, and as a result the transition is likely to cost more, take longer or be less fair than hoped. Addressing such misalignment needs to be a priority for policy makers if the objectives of an efficient and just transition are to be realised.

Andrew Wright and Joanna Berry Durham University Business School and DEI