A new paradigm for climate policy
Based on their recent Nature Energy paper, EPG's Tobias Schmidt and Sebastian Sewerin argue in the ETH Zukunftsblog that technological innovation makes political consensus and ambitious climate policy possible.
In the ETH Zukunftsblog, the authors argue that technological innovation and rapid cost reductions in low-carbon technologies lead to a climate policy paradigm shift. Contrary to the Kyoto regime, the 2015 Paris Agreement was reached in a spirit of economic opportunities in innovation and the energy transition. Technological innovation will continue to drive down costs of low-carbon technologies. A pull out of the Paris Agreement by US President Trump will not change this economic reality. However, there are negative short-term consequences. The Green Climate Fund will likely lose a significant part of its funding, clean energy research will decrease, and political opposition to the energy transition may feel strengthened worldwide delaying the global transition.