Coordinating the net zero transition: a practical framework for policymakers

Jurisdictions around the world have already developed and implemented policies to transition to a net zero economy. To maximise the impact and effectiveness of such policies a coordinated policy approach is necessary. To guide policymakers as they face the challenge of taking financial and economic policy decisions for the transition, this report develops a design approach based on ‘building blocks’. The approach can be adjusted in the context of the specific needs of the financial sector in the transition. It incorporates building blocks to better enable the design, implementation and evaluation of financial and economic public policy that supports the integration of climate change and environmental factors, with a particular emphasis on the intricate interrelationship between economic and financial systems, the roles of key economic and financial stakeholders and enabling improved coordination. The authors define three main building blocks, described in Figure 1: 1) foundations; 2) adjusting policies; and 3) evaluation and anticipation.