Making low-carbon technology support smarter. Bruegel Policy Brief 2015/02, 18 August 2015

This Policy Brief describes the interaction between three approaches that are effective in driving innovation in low-carbon technologies. Based on that, the author provides four recommendations for making low-carbon technology support smarter. THE ISSUE Combating climate change on the global level will be much easier when abundant low-carbon technologies that are competitive in their cost and capabilities are available. But private companies underinvest in low-carbon innovation because they cannot capture the climate benefits. There are three policies to address this issue: pricing carbon, supporting deployment of as-yet uncompetitive technologies and supporting research and development.