Combatting climate change will require substantial productive investments around the world. The carbon neutral transition requires both emission reductions in all sectors and the strengthening of carbon sinks. A carbon neutral transition will cause structural changes in production, distribution, and consumption. The transition is currently underway, but with further tightening emission standards, the effects are likely to be exacerbated in the near future. Some companies will gain a competitive advantage from tightening emission standards, while others will lose market share.
This research project explores the channels through which a carbon neutral transition can strengthen or weaken productivity and competitiveness. In addition, the effects of the transition on structural productivity and competitiveness at the company and industry levels so far will be examined, possible future effects will be assessed and the potential investment needs of a carbon neutral transition will be explored.
Structural changes caused by the carbon neutral transition are very closely connected to the productivity and competitiveness of companies. These structural changes can either strengthen or weaken the growth of productivity across whole industries or entire company sectors. On the other hand, the productivity and competitiveness of companies can also impact industry structure.
Based on the results of the project, policy measures are proposed to support the carbon neutral transition in a way that promotes productivity and competitiveness.
