3. Governance and Behaviour

3. Governance and Behavior

The global community, including in particular policymakers and the private sector, is still struggling with how to reduce significantly the global fossil fuel dependence and reach the objectives of the Paris Agreement. How can we understand this inability of the global community to spur action? In Mistra Carbon Exit, we have learned that many technological solutions and knowledge are available to support a transition to a net-zero GHG future. Still, such technologies are either not scaled up or are not used extensively enough to reduce / abolish the global dependence on fossil fuels. New policies and business models are urgently needed, and most importantly, such policies must be founded on a deep understanding of how businesses and the public respond to policies and of what drives behavioral changes, both among the public and within businesses. Research conducted during the first phase of Mistra Carbon Exit has studied and identified several challenges to behavioral and legislative changes that need to be addressed when designing policies moving forward. In this chapter, we present some of our projects and results within this area, including the identification of critical aspects of new business models the role of transformative learning, the roles of cities in the transition, the determinants of policy acceptance, and legislation and policy design that support further actions, such as increased circular flows of materials, coordination among actors, and making carbon price signals more salient.