Low-Carbon Economy
A low-carbon economy is an economy that minimises emissions of greenhouse gases, particularly carbon dioxide, by shifting to low-emission sources of energy and improving energy efficiency. It is a central concept in the response to climate change and is closely linked to sustainable development.[1]
Definition
A low-carbon economy is one in which economic activity is decoupled from greenhouse gas emissions. Achieving this requires a transition from fossil fuels to renewable and low-carbon energy sources, improvements in energy efficiency, and changes in production and consumption patterns.[1]
Key elements
| Element | Description |
|---|---|
| Renewable energy | Solar, wind, hydro, and other low-carbon sources. |
| Energy efficiency | Reducing energy use per unit of output. |
| Electrification | Shifting transport and industry to electricity. |
| Carbon pricing | Taxes or trading schemes that put a price on emissions. |
| Green technology | Innovation in low-carbon technologies. |
Policy instruments
Governments pursue low-carbon transitions through a range of instruments, including carbon taxes, emissions trading systems, renewable energy subsidies, energy efficiency standards, and public investment in research and clean infrastructure. The transition also raises questions of equity—ensuring a "just transition" for workers and regions dependent on fossil fuels—and of international coordination.[1]