Low-carbon innovation for industrial sectors in developing countries

Low-carbon innovation in industrial sectors in developing countries presents economic opportunities that can help realise sustainable development pathways. Under business-as-usual, industries being established in developing countries are likely to move along carbon-intensive or inefficient pathways, increasing greenhouse gas emissions in the short term and the likelihood of establishing high-carbon lock-in over the longer term. However, there is a wealth of evidence from industrialisation experiences around the world demonstrating the kinds of strategies that make it possible to take advantage of low-carbon opportunities to instead create climate-compatible development pathways. This policy brief aims to illuminate potential pathways and policy actions for low-carbon innovation in emerging industry sectors in developing countries. It focusses, firstly, on the low-carbon and energy efficiency gains that are possible in energy-intensive manufacturing. Secondly, the brief explores opportunities for developing countries to insert themselves into global low-carbon value chains by developing manufacturing capacity in energy-supply technologies. The brief ends with policy recommendations that could be enacted at both the national and international levels, making use of existing institutions as well as learning from the literature on past industrialisation experiences. Low-carbon innovation for industrial sectors in developing countries Policy brief January 2014