Editing IPCC:AR6/SR15/Chapter-4 (section)

==== 4.4.4.3 The role of government in 1.5°C-consistent climate technology policy ====

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While literature on 1.5°C-specific innovation policy is absent, a growing body of literature indicates that governments aim to achieve social, economic and environmental goals by promoting science and a broad range of technologies through ‘mission-driven’ innovation policies, based on differentiated national priorities (Edler and Fagerberg, 2017) <sup>[[#fn:r1276|1276]]</sup> . Governments can play a role in advancing climate technology via a ‘technology push’ policy on the technology supply side (e.g., R&amp;D subsidies), and by ‘demand pull’ policy on the demand side (e.g., energy-efficiency regulation), and these policies can be complemented by enabling environments (Somanathan et al., 2014) <sup>[[#fn:r1277|1277]]</sup> . Governments may also play a role in removing existent support for incumbents (Kivimaa and Kern, 2016) <sup>[[#fn:r1278|1278]]</sup> . A growing literature indicates that policy mixes, rather than single policy instruments, are more effective in addressing climate innovation challenges ranging from technologies in the R&amp;D phase to those ready for diffusion (Veugelers, 2012; Quitzow, 2015; Rogge et al., 2017; Rosenow et al., 2017) <sup>[[#fn:r1279|1279]]</sup> . Such innovation policies can help address two kinds of externalities: environmental externalities and proprietary problems (GEA, 2012; IPCC, 2014b; Mazzucato and Semieniuk, 2017) <sup>[[#fn:r1280|1280]]</sup> . To avoid ‘picking winners’, governments often maintain a broad portfolio of technological options (Kverndokk and Rosendahl, 2007) <sup>[[#fn:r1281|1281]]</sup> and work in close collaboration with the industrial sector and society in general. Some governments have achieved relative success in supporting innovation policies (Grubler et al., 2012; Mazzucato, 2013) <sup>[[#fn:r1282|1282]]</sup> that addressed climate-related R&amp;D (see Box 4.7 on bioethanol in Brazil).

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