The evidence for climate change is strong. We are concerned for animal and plant extinction, as well as, in some of the worst case scenario modeling, the disappearance of entire landmasses and sources of arable land for our children and grandchildren. Worse, it is the people in vulnerable geographical areas, already suffering from natural disasters, lack of infrastructure, and weak governance who will be most at risk. There remains some uncertainty about the short- and long-term impacts of climate change, as well as how much of the natural and human disasters we are facing is attributable to climate change as opposed to other factors. Nevertheless, countries facing those challenges need a toolkit to address them, a toolkit that has been disappearing, along with the broader toolkit for industrial policy and development, since the middle of the 1990s.

Facing climate change, whether through increased regulation or coalition building with the private sector requires public buy-in for democratic countries. In the United States, for example, proponents of the Green New Deal rely heavily on their understanding of the priorities of the “average” American to attempt to garner public support. Research has shown that people of all ages and income groups identify themselves more strongly with their nation (at a federal level) than they do with humanity more broadly, their region of the world, their language group or even their local community or subnational unit. Moreover, survey after survey shows that, while climate change is of concern for some, it is far outweighed by economic issues like jobs and gas prices, not to mention global challenge of the COVID-19 pandemic. This much is obvious. Constituents of countries around the world expect their governments to prioritize them over the needs of people elsewhere.

In response to this, many countries have adopted new laws and policies to kick-start the renewable energy sector to mitigate climate change and encourage energy transitions, while at the same time contributing to economic growth and the protection of their citizens. These new laws, often called green industrial policy, are also relevant for foreign investors, prompting them to put their money in green energy while also contributing to the diversification of the local economy.