A report launched at Climate Week NYC reveals that governments can redirect investments from fossil fuels to clean technologies through targeted mandates, sparking faster and more effective progress in combating climate change.
Researchers found that regulatory mandates with clear timeframes could make clean technologies cheaper than fossil fuel alternatives up to three years earlier globally. This shift could reduce carbon emissions in the energy, transport, and heating sectors by at least 75% by 2050.
Mandates that gradually phase out the dirtiest technologies, such as coal power and combustion engines, were identified as the most effective policies. The study compared the impact of mandates, subsidies, and carbon taxes across more than 70 countries to determine which approach would lead to faster positive tipping points.
The study focused on four key sectors: energy, heating, light road transport (cars), and heavy road transport (trucks). In each of these areas, mandates that require a growing share of sales from clean technologies proved to be the fastest route to price reductions and technological advancements. For instance, phasing out coal power by 2035 in developed countries and switching to 100% zero-emission vehicles by 2040 could act as “super-leverage points,” creating a ripple effect of positive change across other sectors.
These positive tipping points not only benefit the environment but also consumers through lower prices for clean technologies. Accelerating this transition will also result in long-term cost reductions for taxpayers and businesses.
The report, which analyzed data from over 70 countries, calls on governments to act swiftly by introducing coordinated mandates to speed up the adoption of clean technologies. Delaying action could result in significant human and economic costs.