More than 50% percent of the technological innovations required to reach net zero by 2050 still need to be developed. While national governments play a pivotal role in driving the global energy transition, it’s crucial to recognize that fostering cleantech advancements requires more than just public investment in clean energy research, development, and demonstration. The global innovation system encompasses an intricate network of actors, institutions, and resources that must collaborate in synergy.
To achieve optimal effectiveness, this system must fulfill a diverse array of functions, such as mobilizing resources, cultivating and disseminating new knowledge, facilitating entrepreneurial experimentation and the emergence of new markets, establishing social acceptance for novel technologies, guiding the pursuit of knowledge in specific directions, and facilitating knowledge transfer to interconnected industries.
To enhance cleantech financing, emphasis should be placed on attracting more private capital, particularly from institutional investors, to bridge the climate funding gap. Public funds and strategic mechanisms like quotas and guarantees can be leveraged to mitigate risks for private investment, crucial for early-stage research and demonstration projects. Additionally, efforts are directed towards striking a balance between intellectual property protection and knowledge dissemination, streamlining regulatory frameworks to facilitate knowledge commercialization, especially for university spin-offs, while ensuring fair compensation.
Furthermore, it is imperative to support the initial market entrance of green alternatives through mechanisms like Carbon Contracts for Difference and Offtake Agreements. While subsidies must be carefully limited to prevent market distortions, imperfect regulations are deemed preferable to none, advocating for agile regulatory approaches to foster innovation. Finally, recognizing the vital role of the public sector in driving the global energy transition, there’s a call for innovative and committed talents to collaborate with the private sector, underscoring the need for comprehensive and practical regulations achieved through engagement with stakeholders across sectors.
