Lessons from European transformative policies

Abstract

In order to reach climate neutrality by 2050 the EU needs to overcome challenges relating to accelerating innovation, creating infrastructure, redirecting investments, and fostering cross-sectoral integration. In this policy brief, we present key policy lessons relating to these four challenges based on seven case studies on transformative policies from the period 2005–2022 in different EU countries. Two themes reappear in many of our lessons. First, policies could be improved if a holistic approach to innovation was taken, with policymakers considering how new (innovative) technologies substitute (or phaseout) old technologies. Second, rather than trying to incentivize firms or citizens through monetary returns, governments could make progress towards climate neutrality by reducing the efforts required from firms and citizens to participate in the carbon neutrality transition, e.g., reducing administrative burdens.