Which political approaches are most effective in achieving the climate targets?

Which political approaches are most effective in achieving the climate targets?

From my perspective it’s central to implement the golden triangle of transformation:

First: binding climate targets. Long-term targets are important for consumers and the economy, so that they know where the journey is going and when they will arrive. 

Short-term goals ensure quick action. 

Binding rules enable to base investment decisions on them.

Second: prices should tell the ecological truth. Constantly rising carbon prices, or long-term reward rates for ecological services such as for renewable energy are necessary price signals for people and companies, they are tail wind to support sustainable action. This is socially just if those who earn less will be supported.

Third: the financial sector has to be able to distinguish and to assess whether an energy intensive company is on the way to greenhouse gas neutrality or not. So far, there is still a lack of reporting commitments and stress tests which show whether a business model fits the necessary climate targets and CO2-price. 

Binding targets, strong price signals and clear rules for the finance market are the golden triangle of transformation. It’s time for rapid implementation – and to invite partners in the world to cooperate.

Further reading

Sustainable Finance: Entwicklungen und aktuelle Debatte: https://www.germanwatch.org/de/18298

Klimaneutrales Deutschland: https://www.agora-energiewende.de/veroeffentlichungen/klimaneutrales-deutschland/

Ziele – Pfade – Transparenz: Mit nachhaltigem Wirtschaftswachstum aus der Krise: https://germanwatch.org/de/18586

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