Editing IPCC:AR6/WGIII/Chapter-13 (section)

=== FAQ 13.2 | What policies and strategies can be applied to combat climate change? ===

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Institutions can enable creation of mitigation and sectoral policy instruments; policy packages for low-carbon system transition, and economy-wide measures for systemic restructuring. Policy instruments to reduce greenhouses gas emissions include economic instruments, regulatory instruments and other approaches.

Economic policy instruments directly influence prices to achieve emission reductions through taxes, permit trading, offset systems, subsidies, and border tax adjustments, and are effective in promoting implementation of low-cost emissions reductions. Regulatory instruments help achieve specific mitigation outcomes particularly in sectoral applications, by establishing technology or performance requirements. Other instruments include information programmes, government provision of goods, services and infrastructure, divestment strategies, and voluntary agreements between governments and private firms.

Climate policy instruments can be sector-specific or economy-wide and could be applied at national, regional, or local levels. Policymakers may directly target GHG emission reduction or seek to achieve multiple objectives, such as urbanisation or energy security, with the effect of reducing emissions. In practice, climate mitigation policy instruments operate in combination with other policy tools, and require attention to the interaction effects between instruments. At all levels of governance, coverage, stringency and design of climate policies define their efficiency in reducing greenhouse gases emissions.

Policy packages, when designed with attention to interactive effects, local governance context, and harnessed to a clear vision for change, are better able to support socio-technical transitions and shifts in development pathways toward low-carbon futures than individual policies. See also [[IPCC:Wg3:Chapter:Chapter-14|Chapter 14]] on international climate governance.

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