Building a Fair and Sustainable Future through Green Industrialisation

The document defines green industrial policy as government strategies to develop sustainable industries, such as renewable energy and green steel, while phasing out polluting sectors. It highlights that fossil fuel subsidies, which reached $7 trillion worldwide in 2022, hinder the competitiveness of renewables. While countries like China, the US, and EU members have successfully used national policies to boost green tech, developing nations face barriers including limited financing, skills shortages, and intellectual property restrictions. The author argues that the G20 must ensure a just transition by promoting technology transfer, fair trade, and the creation of decent work, while avoiding policies like the EU's Carbon Border Adjustment Mechanism that may penalise carbon-intensive developing economies.

• Green industrial policy involves government strategies to foster sustainable industries—such as renewable energy, green steel, and green fertiliser—while phasing out polluting industries and shifting resources toward high-productivity sectors.
• Global fossil fuel subsidies totaled $7 trillion in 2022, which reduces the competitiveness of renewable energy and slows its adoption.
• Developing countries face specific obstacles to green industrialisation, including debt-based funding requirements, skills shortages, intellectual property barriers, and limited state capacity for regulation and management.
• There is a risk that the European Union's Carbon Border Adjustment Mechanism could negatively impact developing countries that rely on carbon-intensive industries.
• A just green industrial policy must prioritize the protection of the environment, the inclusion of disadvantaged groups (specifically women, children, and climate-vulnerable regions), economic diversification away from extractive industries, and the creation of decent work with fair wages.

APA

iej_admin (2025). Building a Fair and Sustainable Future through Green Industrialisation. Institute for Economic Justice. https://iej.org.za/resource/factsheet/g20-factsheet-7-building-a-fair-and-sustainable-future-through-green-industrialisation/

Chicago

iej_admin. Building a Fair and Sustainable Future through Green Industrialisation. Institute for Economic Justice, 2025. https://iej.org.za/resource/factsheet/g20-factsheet-7-building-a-fair-and-sustainable-future-through-green-industrialisation/.

Wikipedia

{{cite report |last1=iej_admin |title=Building a Fair and Sustainable Future through Green Industrialisation |publisher=Institute for Economic Justice |date=26 August 2025 |url=https://iej.org.za/resource/factsheet/g20-factsheet-7-building-a-fair-and-sustainable-future-through-green-industrialisation/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iejadmin2025building, author = {iej\_admin}, title = {{Building a Fair and Sustainable Future through Green Industrialisation}}, institution = {Institute for Economic Justice}, year = {2025}, month = aug, url = {https://iej.org.za/resource/factsheet/g20-factsheet-7-building-a-fair-and-sustainable-future-through-green-industrialisation/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }