A New Era for Climate Industrial Policy

As the global transition to renewable energy technologies accelerates, industrial countries around the world are racing to prepare their domestic economies to make the most of the enormous industrial opportunities associated with that transition. The manufacture of inputs and components to renewable energy systems will constitute a substantial new high-tech industry. And the opportunities associated with using renewable energy as an input to other manufacturing (such as green steel or aluminium manufacturing) are equally exciting.

Given this rapidly evolving industrial landscape, the Biden administration's new Inflation Reduction Act, which contains dramatic new incentives to locate renewable energy-related manufacturing in the U.S., is proving to be a global game-changer. How can other countries, including Australia, respond to the new benchmark established by the U.S., and being reinforced in other jurisdictions, regarding the active role of government in pro-actively shaping renewable energy-related manufacturing?

The energy transition, and the changing global industrial policy landscape, have combined to legitimise and encourage the implementation of climate industrial policies by governments across the world. This new paper, by Charlie Joyce (Anne Kantor Fellow at the Carmichael Centre), critically explores these developments, and provides a detailed catalogue of major policy shifts in the United States, China, Europe, Japan, Korea, Canada, and elsewhere.

Please see the full paper, A New Era for Climate Industrial Policy, by Charlie Joyce.