[3] Natural scientists warn that immediate action must occur to lower greenhouse gas emissions and mitigate the effects of climate change.
Furthermore, it addresses the reluctance of industry to invest in green development, and it helps current governments influence future climate policy.
It can create strategic niche management and generate a "green spiral," or a process of feedback that combines industrial interests with climate policy.
[12] GIP can protect employees in emerging and declining industries, which increases political support for other climate policy.
[13] Carbon pricing, sustainable energy transitions, and decreases in greenhouse gas emissions have higher chances of success as political support increases.
[16] Governments in various countries, states, provinces, territories, and cities use different types of green industrial policy.
Examples include sunrise and sunset policies, subsidies, research and development, local content requirements, feed-in tariffs, tax credits, export restrictions, consumer mandates, green public procurement rules, and renewable portfolio standards.
Policymakers can apply policy learning and lesson drawing from the failures and successes of IP to GIP to lower its risks.
Efficient and accessible green technology will also make it politically easier to adopt future low-carbon policies.
The persistence of a carbon-based economy has led to environmentally destructive path dependency, and energy transitions are vital to divert from the reliance.
[21] Green innovations that are not immediately profitable are vital for inducing sustainable development and achieving societal goals of mitigating climate change.
[22] Technical niches provide protected space for innovative sustainable development that co-evolves with user practices, regulatory structures, and technology.
Social networks are essential for this niche development because numerous stakeholders lead to many points of view, more commitment and resources, and more innovation.
In turn, the regime, or industry, influences the landscape, which can change the economic climate and induce sustainable energy transitions.
Green spiral means that GIP and carbon pricing approaches are most effective when policymakers produce them in a sequence to increase climate policy support over time and encourage positive feedback.
For example, feed-in tariffs create direct incentives for the growth of green industry groups and can push sustainable shifts in investment and revenues.
GIP does not immediately create a radical transformation to a green economy, but it represents practical steps towards it, and energy transitions are one of its primary goals.
[28] A majority of natural scientists agree that an enormous reduction in GHGs is essential to mitigate the effects of climate change, such as a rise in global temperatures, droughts, floods, extreme weather events, diseases, food shortages, and species extinction.
[29] Since GIP can reduce GHG emissions, it can protect the environment, and in turn, it can preserve the health, safety, and security of humans and other species.
GIP led to a booming German renewable energy industry that employs over 371,000 people, which is double the number of jobs that were available in 2004.
[34] To conclude, GIP is beneficial for both the environment and workers, which creates political support for climate policy and makes energy transitions just and feasible.
Government intervention in markets can create rent-seeking behaviour - or the manipulation of policy to increase profits - so GIP may become driven by political concerns rather than economic ones.
[42] Independent monitoring of policy progress, strong institutions, consumer protection agencies, and a free press can deal with the risk of political capture.
Policymakers can also evade ineffective GIP through the creation of a transparent and accountable political coalition of actors, which includes public-private partnerships, business alliances, and civil society.
[44][45] The extra risks of GIP options could avoid future costs by increasing progress toward more ambitious cuts in emissions.
[55] Feed-in tariffs (FITs) are a series of policies that create long-term financial encouragement for renewable energy generation.
[57] Several other European countries have exemptions from car-related taxes, including Austria, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Romania, Slovakia, Spain, Sweden, and the United Kingdom.
[59] The limitations are for China's economic benefit, but extracting and refining the resources indeed causes environmental damage, so the policy does protect the environment.
However, export restrictions can distort the trade market and negatively affect foreign consumers, which can lead to WTO challenges.
[61] Green public procurement (GPP) occurs when governments obtain goods, works, and services that are sustainable and environmentally friendly.