Best Practice Report


Integrating subnational action / Incentives and Targets

2. Incentives and Targets

Enable subnational programs for green growth by providing financial incentives and introducing regulatory measures and other forms of targets and standards to motivate and support subnational governments in promoting green growth.

There is clear evidence that subnational governments are recognizing the opportunity for green growth, but that they require the support of national governments to achieve ambitious goals. In many cities and regions around the world, local green growth policy implementation is at early stages. The Going Green City survey of 90 cities conducted in 2012 found that while 93% of city governments said they expect their green policies to have a positive economic impact on growth, job creation and innovation, only 24% have coordinated strategies for green growth (Rode and Floater, 2012). 60% of responding city governments reported that national policy frameworks fall short of providing full support to the green agenda.

The viability of subnational green growth policies often depends on national pricing signals for carbon and natural resources (OECD, 2013). However, national governments are also taking a range of other complementary actions to support and enable action by local authorities.