Editing IPCC:AR6/WGIII/Chapter-11 (section)

=== 11.6.5 Knowledge and Capacity ===

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It is important that government bodies, academia and other actors strengthen their knowledge and capacities for the broad transformational changes envisioned for industry. In Japan, industry has been voluntarily working on GHG reduction, under the Framework of Keidanren’s Commitment to a Low-carbon Society since 2009. Government and scientific experts regularly review their commitments and discuss results, monitoring methods, and reconsidering goals. Industry federations/associations can obtain advice in the follow-up meetings from other industries and academics. The energy and transport sectors have decades of building institutions and expertise, whereas industrial decarbonisation is largely a new policy domain. Most countries have experience in energy efficiency policies, some areas of research and innovation, waste management, regulations for operational permits and pollution control, worker safety and perhaps fuel switching. There is less experience with market demand pull policies although low-GHG public procurement is increasingly being tested. Circular economy policies are evolving but potential policies for managing material demand growth are less understood. Material efficiency policies through, for example, product standards or regulation against planned obsolescence are nascent but relatively unexplored ( [[#Gonzalez%20Hernandez--2018a|Gonzalez Hernandez et al. 2018a]] ).

All this argues for active co-oversight, management and assessment by government, firms, sector associations and other actors, in effect the formation of an active industrial policy that includes decarbonisation in its broader mandate of economic and social development ( [[#OECD--2019b|OECD 2019b]] ; [[#Bataille--2020a|Bataille 2020a]] ). This could draw from the quadruple helix innovation model, which considers the role of government, universities, the private sector, the natural environment and social systems to foster collaboration in innovation ( [[#Carayannis--2019|Carayannis and Campbell 2019]] ; [[#Durán-Romero--2020|Durán-Romero et al. 2020]] ). Important aspects of governance include mechanisms for monitoring, transparency, and accountability. It may involve the development of new evaluation approaches, including a greater focus on ''ex ante'' evaluations and assessment of, for example, readiness and capacities, rather than ''ex post'' evaluations of outcomes. Such organisational routines for learning have been identified as a key aspect of policy capacity to govern evolutionary processes ( [[#Karo--2018|Karo and Kattel 2018]] ; [[#Kattel--2018|Kattel and Mazzucato 2018]] ). Although many governments have adopted ideas of focusing resources on the mission or challenge of climate change mitigation, comparisons between Western and East Asian contexts show significant differences in the implementation of governance structures ( [[#Karo--2018|Karo 2018]] ; [[#Mazzucato--2020|Mazzucato et al. 2020]] ; [[#Wanzenböck--2020|Wanzenböck et al. 2020]] ). Overall, improved knowledge and stronger expertise is important also to handle information asymmetries and the risk of regulatory capture.

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