Edwin John Aga’s Post

🌿 Green industrial policies are reshaping economies, but how can they be designed to support inclusive and equitable transitions across countries? In this latest Synergies article, Aaron Maltais and Timothy Suljada explore how cooperation on industrial policy can build shared opportunities for green transformation. Drawing on insights from the Leadership Group for Industry Transition (LeadIT), and the SEI – Stockholm Environment Institute's recently published report, they highlight how trade, investment, and technology collaboration can accelerate climate and development goals. Their analysis underscores the need for globally inclusive green industrial strategies, ones that enable all economies to benefit from the transition to low-emission, sustainable industries. 💡 Read the article: https://lnkd.in/dUEihHtz  📘 Read the SEI–LeadIT report: https://lnkd.in/ecSA7DqD #TESSForum #SynergiesSeries #TradeAndClimate #GreenIndustrialPolicy #SustainableDevelopment #LeadIT #ClimateCooperation #JustTransition Per Andersson SEI – Stockholm Environment Institute Leadership Group for Industry Transition (LeadIT) UN Technology Bank for the Least Developed Countries Sustainability By Sweden UNIDO Industrial Decarbonization Global Matchmaking Platform GM Climate Club Mission Possible Partnership Industrial Transition Accelerator (ITA) EU Environment and Climate CIF

🌿 This new Synergies article by Aaron Maltais and Timothy Suljada explores how cooperation on industrial policy can build shared benefits across economies, and underscores how collaboration across trade, investment, and technology can help ensure that the global transition delivers opportunities for all. It is derived from the Leadership Group for Industry Transition (LeadIT)’s research and the SEI – Stockholm Environment Institute's latest report, “Green Industrial Policy: Challenges and Opportunities for a Globally Inclusive and Fair Energy Transition.” 🌍 Synergies article: https://lnkd.in/edApJbbW SEI–LeadIT report: https://lnkd.in/eThe3G_X #TESSForum #LeadIT #SEI #TradeAndClimate #GreenIndustrialPolicy #JustTransition #SustainableDevelopment

#TESSForum #TCSD2025 #TradeAndClimate #Resilience #Justice #SustainableDevelopment What are your thoughts regarding: "Another idea is to link domestic financial support for green technologies to commitments to provide technology, preferential licensing, and expertise to companies in EMDEs. In partnership with international organizations, major economies could also invest in local innovation hubs, technology incubators, and training on technical skills, management, and environmental standards." Some of you following our Centre for Science and Technology Innovations (CSTI) LinkedIn posts #CSinkBrief #NetZero #NaturePositive #SustainableIndustrialization have expressed the following: Does licensing always have to be Global North to Global South? - Reciprocity should enable access to industry data that allows Global South solutions to be scaled with revenue licensing benefits for Global South innovation. Are we focusing on the status quo giving us a new status quo or is there an opportunity for genuine collaboration? What if the Global South NetZero solutions only work well in the Global South? Global South can learn more digital skills but how many Global North solution providers have successfully operated in Global South conditions WITHOUT any foreign assistance? - There should be local immersion training for Global North practitioners BEFORE they propose solutions. Please keep your feedback coming...👇🏾

Green industrial policies are reshaping economies — but will all countries benefit? In this short piece for TESS Synergies, Timothy Suljada and I explore how cooperation on industrial policy can ensure that the green transition creates shared opportunities rather than widening global divides. Drawing on workshops in Brussels organised by the Leadership Group for Industry Transition (LeadIT) and insights from our new SEI report, we discuss how trade, investment, and technology partnerships can connect climate ambition with inclusive development. Read it here: https://lnkd.in/dUEihHtz

A sustainable economy is not just a policy slogan; it is becoming a crucial dimension in capital decisions. From energy to supply chains, from materials to consumption patterns, a company's long-term value increasingly depends on the integration of environmental, social, and governance (ESG) factors. Short-term costs may rise, but long-term returns lie in risk management, brand trust, and innovation potential. As venture capitalists, we see opportunities not in blindly following green trends, but in companies that integrate sustainability into their core business models—companies that not only meet societal expectations but also possess greater resilience and market competitiveness. The true allure of a sustainable economy lies in its ability to prompt businesses and capital to consider longer-term value creation, thereby maintaining resilience in uncertain times. The wisdom of investment may lie in identifying innovators who deeply integrate sustainability with growth.

♻️ The circular economy not only offers a more sustainable model of production, but also provides a conceptual foundation for an ontological convergence amid evolving production relations, economic paradigms, and social transformations. Yet understanding how sustainability-oriented innovation interacts with the broader dynamics of the economy remains an open question. The recent NBER paper “Green Business Cycles” by Diego Känzig, Maximilian Konradt, Donghai Zhang and Lixing Wang, takes this challenge head-on—exploring how green innovation behaves across economic cycles and revealing that clean technologies often move against the cycle, expanding even when the economy slows down. The findings are striking: while non-green innovation is procyclical — rising in economic booms and falling in recessions — green innovation behaves countercyclically. In other words, clean technologies continue to advance, and even accelerate, during downturns. The authors explain this through a mechanism they call “green is in the future.” Profits from green technologies are heavily backloaded — expected to materialize in the long run. Because of this, short-term economic shocks have a weaker impact on green R&D. In equilibrium, recessions may even reallocate skilled labor and innovation efforts toward green technologies, reinforcing their resilience. Using U.S. and OECD patent data, the study shows that green patenting increases after contractionary shocks, both at the aggregate and firm level. The effect is robust across industries and firm types, suggesting that green innovation remains steady even when financial conditions tighten. Ultimately, the paper reframes green innovation as not just an environmental imperative, but also a source of macroeconomic resilience. In a world of uncertainty, the green economy appears less cyclical — and more forward-looking — than we thought. https://lnkd.in/dQQn42fD

The role of innovation in sustainable growth A good event on 9th Oct at the Bruegel think tank https://www.bruegel.org/on innovation and sustainable growth the OECD and Breakthrough Energy https://lnkd.in/ebstnEVp. The OECD presented their new report on 'Measuring Science and Innovation for Sustainable Growth https://lnkd.in/eDQwTwUC which outlines key messages: innovation is transforming markets faster than predicted; science contributes to sustainability and energy transition but OECD countries are facing more pressure from China and India; but support for research in energy and environment has not kept pace with total R&D spend. Sustainability needs science but also companies. Investing in start ups and scale ups requires more analysis of demand and potential markets. Starting from a challenge or impact analysis or 'smart spending test' leads to start ups which either stop or scale up depending on the market, access to finance, standardisation of regulations between countries, supply chains, cost, etc. An interesting discussion on one area that the EU is ahead of the game.

Adaptive Economy: the true path of progress It is never about stopping human development, but about redefining it responsibly. Far from slowing the economy, a well-guided transition toward sustainability can become the greatest economic opportunity of the 21st century. In fact, this transformation can generate new productive sectors and revitalize existing ones under a model of Adaptive Economy — that is, an economy that evolves in harmony with the planet’s limits and the intelligence of nature. Some concrete examples of this new paradigm include: • Environmental Post-Mining, where territories degraded by extraction are restored through biotechnology, carbon capture, and ecological reconversion. • MDL Hydrocarbons (Clean Development Mechanisms), applying processes of compensation, CO₂ capture, and energy reconversion within the same sector. • Bio-Packaging and Bio-Products, replacing fossil-based materials with biodegradable polymers of organic origin. • Smart Green Energy, combining hydrogen, biomass, solar power, and quantum storage systems to ensure energy autonomy and stability. • Regenerative Agroecosystems, where food production strengthens biodiversity and captures carbon instead of emitting it. • Ecosystemic Infrastructure, integrating urban design with environmental services, soil restoration, and water efficiency. This Adaptive Economy is not a utopia — it is the logical next step in human evolution. It demonstrates that development and preservation are not opposites, but parts of the same equation that ensures the continuity of life and prosperity. The future does not belong to those who destroy faster, but to those who learn to endure.

An Inclusive Green Economy (IGE)  is a pathway for delivering sustainable development and a response to three sets of global challenges: (1) persistent poverty (2) overstepped planetary boundaries and (3) inequities in the sharing of growing prosperity. An IGE also emphasizes the accumulation of a new generation of capital assets (Rockström et al. 2009) that produce goods and services in an environmentally friendly manner. However, research on a case-by-case basis is required to identify the complementarities and trade-offs that exist between these assets for producing such goods and services. Moreover, such goods and services should be produced through decent work and should contribute to social inclusion. An IGE could be interpreted as, among other things, a means of decoupling economic growth from resource use and environmental impacts (e.g., reducing the material and environmental footprint of economic activity). To achieve this decoupling, key factors and policies must be established, including: • private and public investment aimed at greening the economy • fiscal policies (e.g., ecological tax reform and phasing out harmful subsidies) • enhanced market access for low carbon technologies and sustainable technologies in general • development of green industrial policies

KONSTANTINOS ARAVOSSIS -ΑΡΑΒΩΣΗΣ, professor, UNESCO chairholder on green innovation and circular economy, National Technical University of Athens (NTUA), at the Economist Impact's Ninth Sustainability Summit for SE Europe & the Mediterranean #EconSustainability