Our latest publication sets out key principles for policymakers to help them develop sectoral pathways and supporting policy frameworks to support decarbonisation targets, informed by investors.
In the recent paper Making Nationally Determined Contributions (NDCs) investable — the investor perspective, we set out recommendations for how policymakers can better underpin economy-wide decarbonisation targets and help inform private investment decisions in the context of ambitious climate goals.
A key recommendation was the development of sectoral pathways and supporting policy frameworks. This paper builds on that recommendation and suggests that the development of sector decarbonisation roadmaps by policymakers could be an effective way to achieve this.
Sectoral decarbonisation roadmaps
We define sector decarbonisation roadmaps as long-term strategic plans to support the decarbonisation of material sectors in a jurisdiction’s economy.
Policymakers in several jurisdictions have developed sector decarbonisation roadmaps in recent years, albeit often with different names and large variation in the level of detail. These provide a significant amount of useful content but can also contain multiple key information gaps from the investor perspective.
This paper sets out IIGCC’s key principles for the design of these roadmaps, for the consideration of policymakers, to improve their effectiveness for investors in line with their individual net zero strategies and mandates. If done well, the roadmaps can better allow policymakers to attract the long-term investment required to implement ambitious climate goals.
IIGCC has worked with investor members of its sector decarbonisation roadmaps thematic working group to identify key investor use cases for roadmaps, and principles to help guide policymakers in developing them.