Talk or walk? Evidence from 59 countries on the impact of the net-zero target on low-carbon technology innovation

Low-carbon technology (LCT) innovation is critical for global low-carbon transformation. To explore the progress and trends of LCT innovation across countries, we examine the impact of the net-zero target on LCT innovation based on based on the latest global data (i.e. panel data from 59 countries for 2013–2021, patent data for 2014–2022 and climate mitigation policy data for 2014–2022). Applying a multi-period difference-in-differences (DiD) model, this study finds that the net-zero target has significantly promoted LCT innovation, primarily through strengthened climate policies and corporate response mechanisms. The impact is stronger in countries with higher levels of public awareness of climate change and higher carbon emissions. Innovation in zero-carbon technology and carbon capture and storage (CCS)-type carbon-reduction technology has been significantly promoted by the net-zero target announcement, while negative-carbon technology and efficiency-enhancing carbon-reduction technology have not been significantly affected; innovation in supply-side LCT has been promoted, while demand-side LCT has not experienced significant effects. Moreover, the net-zero target does not have a significant effect on climate change adaptation technology innovation. This study suggests that governments should leverage the positive impact of net-zero targets on zero-carbon and CCS-based carbon-reduction technologies, as well as on supply-side LCT innovations, to further incentivize the scaling up of these technologies. Simultaneously, governments should increase incentives for negative-carbon technologies and demand-side LCT innovation. Additionally, to enhance LCT innovation, countries should raise public awareness of climate change.