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The Transformative Capacity of Green Industrial Policy

Sustainability Transitions and Industrial Transformation: Multi-Sector Dynamics and Policy Perspectives | 2026

Paper Details

Authors: Hansen T.; Hansen U.E.; Steen M.

DOI: 10.1007/978-981-95-4893-4_15

Journal: Sustainability Transitions and Industrial Transformation: Multi-Sector Dynamics and Policy Perspectives

Year: 2026

Publisher: Springer Nature

Document Type: Book chapter

Open Access: All Open Access; Gold Open Access; Green Open Access

Cited by: 0

Abstract

The rapid return of industrial policy has come with a strong green colouring—so-called Green Industrial Policy (GIP). At the same time, the field of innovation policy has developed towards a transformative approach seeking to stimulate more radical changes towards greater sustainability in the systems delivering core services essential for our societies. This invites for considerations of the implications of GIP from a transformative innovation policy perspective. Consequently, this chapter discusses potential synergies and conflicts between GIP and Transformative Innovation Policy (TIP). We outline the key characteristics of the latest wave of GIPs in the Global North and compare the focus of GIP to the key priorities in the TIP approach. We conclude that implemented GIPs to some extent reflect key priorities in the TIP approach, including needs for both clear directionality towards decarbonisation, demand articulation, and coordination between different policy areas, however, this alignment between GIP and TIP depends on whether policymakers assess that domestic industries are competitive in emerging green technologies. © The Editor(s) (if applicable) and The Author(s) 2026.

Keywords

Green development; Decarbonisation; Domestic industries; Green technology; Industrial policies; Innovation policies; Key characteristics; Policy approach; Policy makers; Potential conflict; Potential synergies; Green manufacturing