Innovation is a fundamental engine of long-term economic growth, and a critical driver for reducing emissions and tackling climate risk. There is a need to scale up innovation efforts to reduce emissions cost-effectively beyond 2030 consistent with limiting dangerous climate change, in particular through supporting research, development and demonstration (RD&D) for technologies which have not yet been deployed at scale and are unlikely to without strong government support.
October 2016
Innovation is a fundamental engine of long-term economic growth, and a critical driver for reducing emissions and tackling climate risk. There is a need to scale up innovation efforts to reduce emissions cost-effectively beyond 2030 consistent with limiting dangerous climate change, in particular through supporting research, development and demonstration (RD&D) for technologies which have not yet been deployed at scale and are unlikely to without strong government support. While private sector investment in innovation is significant for nearer-to-market technologies, private and public RD&D for low-carbon solutions remains low – around 0.03–0.04% of GDP in International Energy Agency (IEA) member countries is devoted to public RD&D for low-carbon energy.