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

=== 11.6.7 Roles and Responsibilities ===

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While all climate policy requires topic-specific adaptive governance for long-term effectiveness ( [[#Mathy--2016|Mathy et al. 2016]] ), deep decarbonisation of heavy industry has special governance challenges, different from those for the electricity, transport or buildings sectors ( [[#Åhman--2017|Åhman et al. 2017]] ; [[#Wesseling--2017|Wesseling et al. 2017]] ; [[#Bataille--2018a|Bataille et al. 2018a]] ). Competition is strong, investments are rare, capital intensive and very ‘lumpy’. In an atmosphere where transformative innovation is required the process is very capital-focused with non-diversifiable risks unless several companies are involved. There are significant infrastructure needs for electricity, hydrogen, and CCS and CCU. Given there is no ‘natural’ market for low-emissions materials, there is a need to manage both the supply and demand sides of the market, especially in early phase through lead supplier and markets. Finally, there is a very high probability of surprises and substantial learning, which could affect policy choice, direction, and stringency.

Different types of actors thus have to play different but coordinated roles and responsibilities in developing, supporting, and implementing policies for an industrial transition. below shows how the different core parts of integrated policymaking for an industrial transition may depend on efforts from different actors groups and highlights the responsibility of these actor groups in developing a progressive and enabling policy context for the transition. This includes policymakers at local, national, and international arenas as well as civil society organisations, industry firms, and interest organisations.

'''Table 11.6 | Examples of the potential roles of different actors in key policy and governance areas for a low-GHG transition to indicate the importance of agency and wide stakeholder engagement in the governance of industrial d''' '''ecarbonisation.'''

{| class="wikitable"
|-
! Actors

! Direction:

planning and strategising pathways to net zero

! Innovation:

RD&amp;D for new technologies and other solutions

! Market creation:

create and shape demand-pull for various solutions

! Knowledge and capacity:

build institutional capacity across various actors

! Coherence:

establish international and national policy coherence

|-
| International bodies and multilateral collaboration

| More attention to industry in NDCs. Monitor progress and identify gaps. Develop international roadmaps.

| Include heavy industry decarbonisation in technology cooperation (e.g., Mission Innovation).

| International standards, benchmarking systems, and GHG labels. Allow for creation and protection of lead markets.

| Support knowledge building and sharing on industrial decarbonisation.

| Align other conventions and arenas (e.g., WTO) with climate targets and include heavy industry transitions in negotiations.

|-
| Regional and national government and cities

| Require net zero strategies in permitting. Set targets and facilitate roadmaps at various levels. Sunset clauses and phase-out agreements for polluting plants.

| Experimentation for recycling, materials efficiency, and demand management. Hydrogen, electrification, and other infrastructure.

| Public procurement for innovation and lead markets. Green infrastructure investments.

| Develop policy expertise for industrial transformation. Support and facilitate material efficiency and circular solutions through design standards, building codes, recycling, and waste policy.

| Support vertical policy coherence (i.e., international, national, city level).

|-
| Civil society

| Monitor and evaluate leaders and laggards. Support transparency.

| Engage in responsible innovation programs, experimentation, and social innovation.

| Progressive labelling, standards and criteria for low emissions materials and products (e.g., LCA-based), including updating.

| Engage in policy processes and build capacity on industrial decarbonisation. Support consumer information and knowledge.

| Monitor and support policy coherence and coordination across policy domains (trade, climate, waste, etc.).

|-
| Industrial sectors and associations

| Adopt net zero emissions targets, roadmaps, and policy strategies for reaching them. Assess whole value chains, scope 3 emissions and new business models.

| Share best practice. Coordination and collaboration. Efficient markets for new technology (e.g., licensing).

| Work across (new) value chains to establish lead markets for low emissions materials as well as for materials efficiency and circularity.

| Education and retraining for designers, engineers, architects, etc. Information sharing and transparency to reduce information asymmetry.

| Coordination across policy domains (trade, climate, waste, etc.). Explore sectoral couplings, new value chains and location of heavy industry.

|-
| Corporations and companies

| Set zero emissions targets and develop corporate- and plant-level roadmaps for reaching targets.

| Lead and participate in R&amp;D, pilots, and demonstrations. Increase and direct R&amp;D efforts at reaching net zero.

| Marketing and procurement of low-emissions materials and products. Include Scope 3 emissions to assess impact and mitigation strategies.

| Engage in value chains for increased recycling and materials efficiency. Build knowledge and capacity for reorientation and transformation.

| MNCs avoid race to the bottom, and strategically account for high carbon price as part of transition strategy.

|}

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