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Incentives and Policy Support for Low-carbon InnovationWith the signing of the 2016 Paris Agreement, nearly every country in the world now recognizes the urgent need to transition to a low-carbon future and limit global warming caused by human greenhouse gas emissions. This has prompted many governments to propose and implement policies aimed at stimulating climate innovation. Carbon pricing mechanisms such as emissions trading schemes and carbon taxes explicitly or implicitly place a cost on carbon emissions. Meanwhile, low-carbon research and development is being subsidized through increased public sector funding. Regulatory policies are also promoting low-emissions technologies through performance standards, public procurement programs and mandates on carbon offsetting and reporting. Carbon Utilization ventures stand to benefit significantly from the influx of incentives and supportive policy environments emerging worldwide.
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