The Economist writes on how green protectionism hurts clean energy.
- Green protectionism includes policies like subsidies that reshore manufacturing of clean energy technologies to domestic markets.
- While these policies may have good intentions, they pull capital away from developing markets and stunt the deployment of clean and reliable energy worldwide.
- Rather than turning to protectionism policymakers should look to increase free trade, streamline regulations, and implement pro-growth tax reform.
“Rather than micromanaging production, governments should unleash investment, by acting boldly to strip back permitting rules and ease the risk of projects in the global south. They also need to face up to the fact that protectionism frustrates their climate goals. It leads to lower returns, higher prices for power and more broken promises over decarbonisation.”
Read the full article here.