Energy reforms, their impact, and green growth

What is it about?

Climate change and global warming have raised global concern. Fossil fuel emissions contribute significantly to global warming. Policy officials are looking to reform the energy sector, but these reforms must not impact economic growth. The Paris Climate Accord took place in 2015. In the meeting, 194 countries agreed to reform their energy policies. These structural reforms have not met their intended goals. Assessing previous reforms will help design better future policies. This study analyzed the results of energy reforms adopted by 25 developed countries.

Featured Image

Photo by Chris LeBoutillier on Unsplash

Photo by Chris LeBoutillier on Unsplash

Why is it important?

Researchers studied reforms adopted between 1970 and 2020 and their impact on on the environment and green growth . They found that greenhouse gas emissions appear to be lowered per unit of GDP, although per capita emissions were not reduced. The study also finds that reforms led to more inventions and patents to protect the environment and develop climate-friendly businesses . This shows that the reforms did have positive impact. Countries must adopt policies that promote 'green growth'. This will help combat climate change sustainably. KEY TAKEAWAY: Reforms must balance economic growth with environment conservation. This will promote green growth. Disclaimer - This summary was prepared by Kudos Innovations Ltd and does not necessarily represent the views of International Monetary Fund (IMF).