After Paris: can the private sector deliver climate compatible development?

The document examines the intersection of private sector activity and climate policy, highlighting the potential for a 'new industrial revolution' in green technology. It balances optimism regarding falling costs of renewables and new financial instruments with warnings about 'brown pillars' of the economy, market failures, and the risk of social dislocation similar to that seen during globalisation. The author argues for a public-private partnership where governments shape markets and provide social safety nets to ensure a just transition.

• The Paris Agreement and subsequent international accords, such as the Kigali amendment to the Montreal Protocol and the ICAO agreement on aviation emissions, create significant opportunities and challenges for the private sector.
• Global greenhouse gas emissions are not yet on a trajectory to meet Paris Agreement targets; current policies suggest 2030 emissions will be around 59 Gt, while the 2°C limit requires 42 Gt and the 1.5°C limit requires 39 Gt.
• The private sector is showing strong momentum in green growth, evidenced by a 90% drop in solar power costs over two decades and renewable energy investments reaching US$286 billion in 2015 (excluding large-scale hydro).
• Climate finance has expanded through complex architectures, with total climate finance estimated at US$392 billion in 2015 and US$48 billion in green bonds issued that same year.
• Low-carbon competitiveness can be enhanced through various transmission mechanisms, including changing patterns of foreign direct investment, asset values, and global value chain standards.
• Progress toward a green economy is hindered by market failures, such as information asymmetries and coordination failures, as well as 'lock-in' from existing large-scale fossil fuel infrastructure.
• The transition to a green economy is inherently disruptive and risks creating 'losers' in society, mirroring the social dislocation caused by globalisation and automation.
• Effective climate compatible development requires a partnership where public policy does not merely 'correct' markets but helps create and shape them, ensuring economic fairness and social protection for displaced workers.
• The UK's approach to climate policy is characterised by legally binding 'carbon budgets' and a long-term target to reduce emissions by at least 80% by 2050, though current policies are deemed insufficient to meet these goals.

APA

Maxwell, S. (2017). After Paris: can the private sector deliver climate compatible development? Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2017/01/CDKN_SMaxwell_ColombiaCM_final_web-res.pdf

Chicago

Maxwell, Simon. After Paris: can the private sector deliver climate compatible development? Climate and Development Knowledge Network, 2017. http://cdkn.org/wp-content/uploads/2017/01/CDKN_SMaxwell_ColombiaCM_final_web-res.pdf.

Wikipedia

{{cite report |last1=Maxwell |first1=Simon |title=After Paris: can the private sector deliver climate compatible development? |publisher=Climate and Development Knowledge Network |date=January 2017 |url=http://cdkn.org/wp-content/uploads/2017/01/CDKN_SMaxwell_ColombiaCM_final_web-res.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maxwell2017after, author = {Maxwell, Simon}, title = {{After Paris: can the private sector deliver climate compatible development?}}, institution = {Climate and Development Knowledge Network}, year = {2017}, month = jan, url = {http://cdkn.org/wp-content/uploads/2017/01/CDKN_SMaxwell_ColombiaCM_final_web-res.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }