Climate Policy: Opportunities and Obstacles

Policymakers at all levels of government can play an important part in the fight against climate change. 

Governments can adopt policies that support the growth of green industries. They can also limit pollution through standards and regulations, or by implementing market-based policies like a cap-and-trade system that incentivize companies to take climate action.

But climate change is a collective problem. Its effects know no borders. And in a globalized world, even if one country works hard to cut emissions, businesses might just move their operations to places with fewer rules, keeping global emissions the same. Policymakers therefore strive to work across borders. Governments can adopt trade policies that raise the price of high-emitting imports. International treaties, like the Paris Agreement, can generate global commitment to the fight against climate change. 

Around the world, climate policies are already making a difference. But governments still face obstacles as they seek to meet their climate goals. Although the clean energy transition offers immense opportunities for the future, it will also cause economic disruptions and raise issues of justice and equitability. Crucially, fighting climate change will also require enormous sums of money in the coming decades. Developing countries in particular lack the resources needed to meet their goals. As policymakers take further action on climate change, they will increasingly face the question of how to marshal the resources needed to tackle this global issue, and how to secure a greener future for everyone.