The New Economics of Innovation and Transition Evaluating Opportunities and Risks
The event witnessed the introduction of a new conceptual model for policy and investment decision making along with the launch of a flagship report that aims to transform how governments across the world make climate policy decisions for years to come.
On 04 November 2021 | 19:30 – 21:00 (GMT)
TERI in consortium with University College London (UCL), University of Cambridge (UCAM), University of Oxford (UOX) and many other partners in India, China, Brazil and United Kingdom is working on a collaborative project for implementing clear and practical complexity-based modelling appraisals solutions for informing decision-making and planning for low-carbon innovation and technological change. Climate change related decision-making involves the potential for structural change in the economy; yet the tools we use to make investment decisions are designed to deliver marginal gains to the existing system. The key to low carbon innovation is bold and intelligent assessment of how to maximise opportunities whilst minimising risks.
At this event, world leading experts in complexity economics, systems thinking, and energy policy introduced a new conceptual model for policy and investment decision making. The Risk-Opportunity Analysis' framework, which is part of a programme hosted by the Economics of Energy Innovation and System Transition project, a 3-year Department for Business, Energy & Industrial Strategy and CIFF funded initiative, brings together experts in China, Brazil, India, the UK and EU. It introduced it in a new flagship report "The New Economics of Innovation and Transitions" and has the potential to transform how governments across the world make climate policy decisions for years to come.
It highlighted that some of the greatest successes in the clean energy transition so far, such as dramatic cost reductions in wind and solar power and LED lighting, have come from policies to shape markets that were not generally those recommended by conventional economic analysis. To replicate these successes, the report calls on policy makers to learn the lessons and think differently about the dynamics of change in our economies.
The EEIST flagship report was formally launched on Thursday 4th of November in the UK Pavilion in the event titled 'Transformative Energy Dialogues'. The event included the presentation of the EEIST Report , presentation of international case studies of transformational innovation and a policy panel discussion chaired by Simon Sharpe, Deputy Director of Policy Campaigns - COP26 Unit
Speakers
Simon Sharpe, Professor Michael Grubb, Lilia, Chirag Gajja, Alex Clark, Garima Vats, Jean Francois mercure
Key Quotations
Professor Michael Grubb emphasized on the need for developing tools that can evaluate the risks and opportunities for use in practice by political decision makers who ultimately have to take the can for the big bets in developing net zero.
- Professor Michael Grubb
"A risk opportunity analysis would have a bit more space in the policy appraisal to list those various advantages that may not be economic may not be quantified but maybe important in the decision making."
- Jean Francois Mercure
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