Decarbonisation is the reduction of carbon dioxide emissions using low carbon power sources, lowering output of greenhouse gasses into the atmosphere. This is essential to meet global temperature standards set by international climate agreements. To limit global warming to 1.5°C, hence avoiding the worst-case scenarios predicted by climate science, the world economy must rapidly reduce its emissions and reach climate neutrality within the next three decades. This will not be an easy journey. Shifting away from carbon-intensive production will require a historic transformation of the structure of our economies. Written by a team of academics linked to the European think tank Bruegel, The Macroeconomics of Decarbonisation provides a guide to the macroeconomic fundamentals of decarbonisation. It identifies the major economic transformations, both over the long- and short-run, and the roadblocks requiring policy intervention. It proposes a macroeconomic policy agenda for decarbonisation to achieve the climate goals of the international community.

‘The climate transition is the first policy induced industrial revolution, impacting all segments of the economy and raising as many policy issues. The book offers a broad and accessible overview of the current state of the question in a way that is relevant to both experts and people looking for a good introduction on the macroeconomics of decarbonisation.’

Pierre Wunsch - Governor of the National Bank of Belgium

‘Climate action carries risks. In contrast to the devastating consequences of climate change, however, they remain manageable. The Macroeconomics of Decarbonisation, authored by distinguished thought leaders, unravels intricate dynamics underpinning the shift toward climate neutrality. If you are eager to explore advanced climate economics in a clear, accessible language, this guide is an essential read.’

Ottmar Edenhofer - Director and Chief Economist, Potsdam Institute for Climate Impact Research

‘Meeting the objectives of the Paris Agreement will involve an unprecedented mobilisation of resources and a fundamental rewiring of our economies. Designing effective and fair policies to make this possible requires deep theoretical understanding, which this excellent book provides. It is an essential guide for policymakers and climate campaigners everywhere.’

Laurence Tubiana - CEO, European Climate Foundation

‘An important book on one of the defining challenges of our time. Getting the green transition right requires understanding the various macroeconomic implications of decarbonisation on industries, jobs and budgets, and putting in place ambitious policies to drive it forward. This book sheds light on how it can be done.’

Paolo Gentiloni - Commissioner for the Economy, European Commission and Former Prime Minister of Italy