Eric: Let's summarize the argument so far. We have discussed the rapid cultural changes in global business, and the ESG wave in financial markets. Europe appears to be advancing most rapidly in both these areas, but the effects are being felt globally, and are spreading. Politics is also catching up. China, under Premier Xi, the United States, under President Biden, and India, under Prime Minister Modi, are also shifting rapidly. There is a consensus that we all need to move faster. We have outlined a set of principles for smart policy-making to accelerate the transition.

Corinne: Yes, we have shown that the best policies are simple, effective and non-partisan. We have provided a framework for categorizing the challenges specific to climate change: simple maths, mini-Musks and herding sheep. We have also provided concrete proposals, such as contingent carbon taxes, EPICs aimed at the relative price of green substitutes, green sectoral trade agreements, all of which aim to tilt the playing field in favour of sustainable businesses that are driving the decarbonization of our economy. We have explained how to mitigate free-riding and greenwashing in financial markets. We concluded from these discussions that the effects of policy interventions will be amplified because financial markets and global business are primed to respond to EPICs and regulations.

Eric: In line with expert consensus, our diagnosis puts sustainable electricity at the heart of the global strategy to collapse carbon emissions. A rapid acceleration of investment in wind, solar and other alternatives, as well as infrastructure for energy storage and transmission is needed to get us close to 1.5°C.

Corinne: The evidence suggests that this is substantially a “simple maths” problem, an economic challenge. In other words, we have the technology and the physical resources, the challenge is to create an extreme incentive structure that rapidly changes behaviour. If the cost of capital can be reduced, and a smart regulatory framework put in place, halving emissions by 2030 is within reach. Although the private sector is best placed to deliver these new industries and investments, the EPIC levers we describe are almost entirely in the hands of the nation state.

Eric: Bill Gates apologises for using the word “policy” in his book. We maintain that any climate strategy that does not put national policies at the heart of its decarbonization objectives will fail. So, how do we supercharge the nation?