State ownership and climate change mitigation: Overcoming the carbon curse?

Abstract

<p>The role that States can play in promoting climate change mitigation extends beyond the regulation of private actors. States are important economic actors in their own right. State-owned enterprises (SOEs) dominate sectors which are critical to a transition towards a carbon-neutral economy – particularly so in emerging economies. States have sometimes used their ownership policies to induce efforts towards climate change mitigation; they should always use this opportunity. SOEs can demonstrate the economic viability of incremental and structural reforms at the scale of a corporation. They are a chance for governments to lead by example. The framework for non-market approaches to sustainable development should further explore and raise awareness on the role that State ownership policies play in climate change mitigation.<br /></p>