IEA report: Tracking clean energy innovation policies

In recognition of the importance of clean energy technologies, governments are expanding the variety of innovation policy measures and tuning their design to the specificities and maturities of the technologies. The characteristics of clean energy technologies – especially those related to hardware rather than software – mean that they can have relatively long development timelines and require large upfront investments. The range of policies in place or in development now includes not just R&D grants, but also tax incentives, inducement prizes, business equity, loans, loan guarantees, incubation services, knowledge networks, cross-border cooperation and access to laboratories. This guide provides a structure for organising and exploring policy diversity.

Advanced economies have the largest numbers of such policies but emerging market and developing economies (EMDEs) are also integral to achieving this transition as they enlarge their economies and energy supplies to meet developmental aspirations. Governments and other stakeholders who are interested in how to catalyse clean energy innovation in EMDEs are a key audience for this guide. Many of these countries do not possess a strong legacy of institutional and funding support to energy technology innovation and can benefit from a resource that summarises different policy design options and where they have been tested.