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Cities that work. Issue 18

Page 43

makingit_18_pp42-45_policybrief_print 11/05/2015 12:39 Page 43

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POLICY BRIEF

direction to take. In other words, we need a social contract for sustainability. Civil society must hold policy responsible for its part of the contract. ● A strategic coalition of key stakeholders is required. This includes new stakeholders, such as renewable energy businesses. But support can come from unexpected places, too. For instance when energy-intensive companies realize that

renewables can quickly ease supply constraints. ● Policy must invest in systematic learning. Green industrial policy evolution means testing and adjusting policies, and learning from experiences of other countries. It also means that mistakes are allowed – so long as we learn from them. ● The market should remain the key

instrument for policy. Once the direction and rules are clear, it must be fully used as an efficient tool. This article was originally published at www.kreutz-partner.de and is based on the discussion paper, Green Industrial Policy by W. Lütkenhorst, T. Altenburg, A. Pegels and G. Vidican, published by the German Development Institute.

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