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

==== 4.4.3.1 Actions by Others Not Consistent With Domestic efforts ====

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The international context is a major source of uncertainty for national-level planning, especially for small- or medium-sized open economies, because the outcome of domestic choices may significantly depend on decisions made by other countries and actor, over which national governments have limited or no control ( [[#Lachapelle--2013|Lachapelle and Paterson 2013]] ). Availability of foreign financial resources in countries with limited domestic savings (Baum et al. 2017) and availability of technology transfers ( [[#Glachant--2017|Glachant and Dechezleprêtre 2017]] ) are some examples. Other external decisions with significant bearing on domestic action include mitigation policies in other countries ( [[#Dai--2017|Dai et al. 2017]] ), and especially in major trading partners, the lack of which can result in competitive disadvantage for sectors exposed to international competition (Alton et al. 2014). The international prices of the key commodities (notably energy), goods and services are important, notably when shifting development pathway is based on structural change (e.g., [[#Willenbockel--2017|Willenbockel et al. 2017]] for Ghana and Kenya).

Remedies include first devising policy packages that are, to the extent possible, robust to uncertainty regarding external decisions. For example, mitigation in the building sector is considered less problematic for competitiveness since the construction sector is less exposed to international competition. Remedies also include securing international cooperation to reduce the uncertainty that domestic decision-makers face about the international context. Shifting investments towards low-GHG solutions requires a combination of conducive public policies, attractive investment opportunities and financing of transitions ( [[IPCC:Wg3:Chapter:Chapter-15#15.6|Section 15.6]] ), which can enable shifting development pathways. Cooperation can generate positive spill overs through technology diffusion ( [[IPCC:Wg3:Chapter:Chapter-13#13.6.6|Section 13.6.6]] ). Third, cooperation is not limited to governments. As discussed in Section 4.2.3, international cooperative initiatives among non-state actors (cities, economic branches, etc.) can also provide know-how, resources and stable cooperative frameworks that reduce uncertainty for individual actors ( [[IPCC:Wg3:Chapter:Chapter-14#14.5.5|Section 14.5.5]] ).

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