InnovatingGoveínancefoíaJustEneígyTíansition:EnhancingPublicPoliciesfoíPíivateSectoíPaíticipation 1 June2024 TableofContents EXECUTIVESUMMARY2 THECONTEXTANDINTRODUCTION5 PILLAR1:DIRECTPUBLICPOLICYACTIONS12 1.1.NATIONALNET-ZEROTARGETSANDROADMAPS12 1.2.REGULATORYFRAMEWORKSANDENFORCEMENT15 1.3.SUBSIDIESANDOTHERFISCALINCENTIVES20 1.4.OPTIMIZINGANDRATIONALIZINGPROCEDURES24 PILLAR2:STRATEGIESFORSTRENGTHENINGPARTNERSHIPS31 2.1INNOVATIVEPROJECTANDPORTFOLIOFINANCING31 2.2START-UPANDINNOVATIONACCELERATORS34 2.3SCALINGUNIVERSITY-INDUSTRYPARTNERSHIPSFORINNOVATION37 2.4FACILITATINGBUSINESSCONNECTIONS38 2.5BUILDINGAGREENJOBSWORKFORCE39 2.6JUSTENERGYTRANSITIONPARTNERSHIPS41 2.7JOINTVENTURESANDOTHERALLIANCES42 CONCLUSION44 *Note:ThisActionBíiefiswíittentoassistmembeícountíiesinadvancingjusteneígytíansition.ItseívesasacompaniondocumentfoíUNDP'sEneígyGoveínancefíamewoík,specificallyaligningwithFocusAíea2:PolicyandRegulatoíyFíamewoík. EXECUTIVESUMMARY Inthefaceofacceleíatingclimatechange,ouígeneíationstandsatacíucialcíossíoads.Theíesponsibilitytoadvanceglobalpíogíesshasneveíbeenmoíeuígent,withtheimpeíativetoachievenet-zeíoemissionsby2050atthefoíefíontofthischallenge.Thismonumentaltaskbegstheguidingquestion:Howcangoveínmentscatalyzethepíivatesectoí'síoleinensuíingasustainableandjusteneígytíansitionthatfosteísdevelopment? Asweendeavoítomitigatetheadveíseeffectsofclimatechange,itbecomescleaíthatthisisnotmeíelyanenviíonmentalissuebutagoveínanceone.Effective,inclusive,andaccountablegoveínanceisessentialfoístíengtheningpíivatesectoípaíticipationandfacilitatingajusteneígytíansition.Publicpolicy,asacoíneístoneofeneígygoveínance,ispivotaliníeducinggíeenhousegasemissionsandenablingatíansitionthatisequitablefoíall. TheInteínationalLabouíOíganization(ILO)definesajusttíansitionasafaiíandinclusiveappíoachtogíeeningtheeconomy,emphasizingthecíeationofdecentwoíkoppoítunities,andensuíingnooneisleftbehind.Itsays,“AJustTíansitioninvolvesmaximizingthesocialandeconomicoppoítunitiesofclimateaction,whileminimizingandcaíefullymanaginganychallenges–includingthíougheffectivesocialdialogueamongallgíoupsimpacted,andíespectfoífundamentallabouípíinciplesandíights”.Whileambitiousclimateactioncoulddeliveíupto18millionnetjobsby2030,1dispaíitiesinjobcíeation 1Investinclimateeducationtobuildabetteíwoíkfoícefoíagíeeneífutuíe,InteínationalLabouíOíganiation,22Apíil2021,Accessat:https://www.ilo.oíg/global/about-the-ilo/newsíoom/news/WCMS_781859/lang--en/index.htm andlossesacíossdiffeíentíegionsundeíscoíethenecessityofeffectivegoveínancemechanismstoshapepoliciesthatattíactpíivatesectoíinvolvementwhilealigningwithdecaíbonizationgoals. Thisalsoemphasizesthecíiticalíoleofpolicyfíamewoíksthatnotonlyincentivizepíivatesectoíengagementbutalsoensuíetíanspaíency,accountability,andacommitmenttodecaíbonization.Byfosteíinganinnovativeandinvestment-fíiendlyenviíonment,goveínancestíuctuíescanpíopeleconomicgíowth,technologicaladvancement,andthecíeationofdecentwoík–joboppoítunitieswhichpíovideadequateeaínings,safewoíkenviíonments,andsocialsecuíityintheaffectedíegions,allwhileadvancingtowaídsouínet-zeíoobjective. Moíeoveí,goveínmentsmustnavigatethedelicatebalanceofpushingfoíeconomicdevelopmentwithintheconstíaintsoftheeaíth'splanetaíyboundaíies,ensuíingasustainablefutuíewheíehumanitycanthíive.Cíossingtheseboundaíiesincíeasestheíiskofgeneíatinglaíge-scaleabíuptoíiííeveísibleenviíonmentalchanges.2Thisalsoinvolvesthepíivatesectoíaligningpíofitmotiveswithenviíonmentalstewaídshipandhumaníights,guidedbypíinciplessuchasthoseoutlinedinUNDP'sBusinessandHumanRightsinitiatives,3fosteíingahaímoniousbalancebetweeneconomicpíospeíityandsocietalwell-being. Iníesponsetotheguidingquestion,thisactionbíiefdeliveíspolicyinsightsandexamplesaimedatempoweíingthepíivatesectoítosignificantlycontíibutetoajusteneígytíansition.Itaíticulatesatwo-píongedstíategytailoíedfoíglobalapplication,allowingpolicymakeístocustomizethesestíategiestotheiíuniquenationalcontexts. Theinitialappíoachemphasizespíoactivegoveínmentalinteíventions,includingtheestablishmentofnationwideobjectivesandstíategicplans,theimplementationandoveísightofíegulatoíystíuctuíes,thepíovisionofdiíectfinancialsuppoítandincentives,alongwithinitiativesaimedatdíawinginvestmentsandtechnologicalpíogíess.Thesubsequentappíoachundeíscoíestheimpoítanceofenhancingcollaboíativeeffoíts,spotlightingfoíwaíd-thinkingfinancialaííangements,backingfoí 2Planetaíyboundaíies,StockholmResilienceCentíe,Novembeí10,2022,Accessat:https://www.stockholmíesilience.oíg/íeseaích/planetaíy-boundaíies.html 3UnitedNationsGuidingPíinciplesonBusinessandHumanRights,UNDP,Apíil30,2011,Accessat:https://www.undp.oíg/asia-pacific/bizhumaníights/publications/guiding-píinciples-business-and-human-íights 4 entíepíeneuíialventuíesandinnovationhubs,fíamewoíkstoamplifyandfacilitatemaíketíeadinessoftechnologies,theencouíagementofindustíylinkages,thecultivationofawoíkfoíceequippedfoíthegíeeneconomy,theadvancementofJustEneígyTíansitionPaítneíships(JETPs),andthesuppoítfoícoopeíativeventuíesandalli