Full Title: The Net-Zero Governance Conveyor Belt
Author(s): Thomas Hale
Publisher(s): Kleinman Center for Energy Policy
Publication Date: December 19, 2022
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While the surge of regulations around net zero carries the great promise of leveling the playing field and giving businesses the certainty they need to invest in net zero, it also carries two challenges: rigor and coherence. Because regulation depends on the political economy of the jurisdiction that creates it, it may not reach the level of ambition needed to deliver the goals of the Paris Agreement. Indeed, in some jurisdictions interest groups opposed to climate action are working to undermine or reverse net-zero governance. Bad regulation may be worse than no regulation at all. But even in jurisdictions where there is broad support for rigorous alignment to net zero, different regulatory domains do not necessarily share a unified vision of what is required of business. If different regulators require different things, the resulting friction may slow the transition. This report proposes four governance tools to steer net-zero targets toward higher integrity.