In the past years green industrial policy instruments have gained increasing popularity with governments in developed and developing countries. However, these instruments need to be adapted to local circumstances, needs and capabilities. We explore how country-specific policy goals and actor constellations shape the policy making process and give rise to incentive systems. Furthermore, we aim to answer the following questions: What type of industrial policy instruments work best, and in what circumstances, to hasten the restructuring of the economy towards environmental sustainability? How can governments manage economic rents to mobilize long-term private investment in promising new clean technologies while avoiding political capture? How to best direct such investments towards opportunities for enhancing private sector competitiveness, localising value chains, transferring know-how, and building innovation systems for clean technologies in emerging and developing countries?

We focus primarily on developing and emerging economies, such as Middle East and North African countries, India, China and South Africa. However, we are also drawing lessons from industrialised countries, mainly in Europe.