Complementary measures for decarbonisation

Discussions about measures to promote energy sector decarbonisation have traditionally focused on carbon pricing mechanisms and government regulations. However, other “complementary measures” are also being used with businesses to reduce greenhouse gas emissions. This brief discusses two distinct forms of these measures: voluntary programmes that drive action by businesses, and government shareholder influence over state-owned enterprises. Given the depth of decarbonisation required for a low-carbon future and the central role that businesses will need to play, strengthening complementary measures that target business engagement can increase emissions mitigation.