Editing IPCC:AR6/WGIII/Chapter-4 (section)

==== 4.4.1.3 Governance and Institutional Capacity ====

<div id="h3-40-siblings" class="h3-siblings"></div>

Governance for climate mitigation and shifting development pathways is enhanced when tailored to national and local contexts. Improved institutions and governance enable ambitious climate action and help bridge implementation gaps ( ''medium evidence'' , ''high agreement'' ). Improving institutions involve a broad range of stakeholders and multiple regional and temporal scales. It necessitates a credible and trusted process for reconciling perspectives and balancing potential side-effects, managing winners and losers and adopting compensatory measures to ensure an inclusive and just transition ( [[#Newell--2013|Newell and Mulvaney 2013]] ; [[#Miller--2014|Miller and Richter 2014]] ; [[#Gambhir--2018|Gambhir et al. 2018]] ; [[#Diffenbaugh--2019|Diffenbaugh and Burke 2019]] ), managing the risk of inequitable or non-representative power dynamics and avoiding regulatory capture by special interests ( [[#Helsinki%20Design%20Lab--2011|Helsinki Design Lab 2011]] ; [[#Boulle--2015|Boulle et al. 2015]] ; [[#Kahane--2012|Kahane 2012]] ).

Long experience of political management of change demonstrates that managing such risks is not easy, and requires sufficiently strong and competent institutions ( [[#Stiglitz--1998|Stiglitz 1998]] ). For example, shift away from fossil fuel-based energy economy could significantly disrupt the status quo, leading to a stranding of financial and capital assets and shifting of political-economic power. Ensuring the decision-making process is not unduly influenced by actors with much to lose is key to managing a transformation. Effective governance, as noted in Chapter 13, requires establishing strategic direction, coordination of policy responses, and mediation among divergent interests. Among varieties of climate governance, which institutions emerge is path-dependent, based on the interplay of national political institutions, international drivers, and bureaucratic structures ( [[#Dubash--2021|Dubash 2021]] ). Focused national climate institutions to address these challenges are more likely to emerge, persist and be effective when they are consistent with a framing of climate change that has broad national political support ( ''medium evidence'' , ''medium agreement'' ) (Sections 4.5, 13.2 and 13.5).

Innovative governance approaches can help meet these challenges ( [[#Clark--2018|Clark et al. 2018]] ; [[#Díaz--2019|Díaz et al. 2019]] ). ''Enabling multilevel governance'' – i.e., better alignment across governance scales – and coordination of international organisations and national governments can help accelerate a transition to sustainable development and deep decarbonisation ( [[#Tait--2017|Tait and Euston-Brown 2017]] ; [[#Michaelowa--2017|Michaelowa and Michaelowa 2017]] ; [[#Ringel--2017|Ringel 2017]] ; [[#Revi--2017|Revi 2017]] ; [[#Cheshmehzangi--2016|Cheshmehzangi 2016]] ; [[#IPCC--2018a|IPCC 2018a]] ). ''Participatory and inclusive governance'' – partnerships between state and non-state actors, and concerted effort across different stakeholders are crucial in supporting acceleration ( [[#Burch--2014|Burch et al. 2014]] ; [[#Hering--2014|Hering et al. 2014]] ; [[#Roberts--2016|Roberts 2016]] ; [[#Figueres--2017|Figueres et al. 2017]] ; [[#Clark--2018|Clark et al. 2018]] ; [[#Leal%20Filho--2018|Leal Filho et al. 2018]] ; [[#Lee--2018|Lee et al. 2018]] ). So do ''partnerships through transnational climate governance initiatives'' , which coordinate nation states and non-state actors on an international scale ( [[#Hsu--2018|Hsu et al. 2018]] ). Although they are unlikely to close the gap of the insufficient mitigation effort of national governments ( [[#Michaelowa--2017|Michaelowa and Michaelowa 2017]] ) (Section 4.2.3), they help building confidence in governments concerning climate policy and push for more ambitious national goals ( [[#UNEP--2018b|UNEP 2018b]] ).

Meeting these challenges also requires enhanced institutional capacity and enhanced institutional mechanisms to strengthen the coordination between multiple actors, improve complementarities and synergies between multiple objectives ( [[#Rasul--2016|Rasul 2016]] ; [[#Ringel--2017|Ringel 2017]] ; [[#Liu--2018|Liu et al. 2018]] ) and pursue climate action and other development objectives in an integrated and coherent way ( [[#Von%20Stechow--2016|Von Stechow et al. 2016]] ; [[#McCollum--2018|McCollum et al. 2018]] ; [[#Rogelj--2018b|Rogelj et al. 2018b]] ; [[#Roy--2018|Roy et al. 2018]] ; [[#Fuso%20Nerini--2019|Fuso Nerini et al. 2019]] ), particularly in developing countries (Adenle et al. 2017; [[#Rosenbloom--2017|Rosenbloom 2017]] ). Institutional capacities to be strengthened include vertical collaboration and interaction within nation states and horizontal collaboration (e.g., transnational city networks) for the development and implementation of plans, regulations and policies. More specifically capacities include: capacity for knowledge harnessing and integration (from multiple perspectives); for integrated policy design and implementation ( [[#Scott--2017|Scott 2017]] ); for long-term planning (Lecocq et al. 2021) for monitoring and review process; for coordinating multi-actor processes to create synergies and avoid trade-offs. As a result, institutions that enable and improve human capacities and capabilities are a major driver of transformation. To this extent, promoting education, health care and social safety, also are instrumental to undertake climate change mitigation and cope with environmental problems ( [[#Winkler--2007|Winkler et al. 2007]] ; [[#Sachs--2019|Sachs et al. 2019]] ). Given that strengthening institutions may be a long-term endeavour, it needs attention in the near term.

<div id="4.4.1.4" class="h3-container"></div>

<span id="channelling-financial-resources"></span>