Green protectionism comes with big risks
- Some analysts worry that new laws could slow the green transition
Politicians think they have cracked it. The old proposals for dealing with climate change, including carbon taxation, have proved insufficient. Average global temperatures are thus on track to rise more than 2°C above pre-industrial levels. Hence the one genuinely new part of homeland economics. Industrial policy is being tasked not just with firming up supply chains and redistribution, but also with accelerating the green transition.