In the face of growing opposition to green initiatives, spurred by politicians like Donald Trump and Rishi Sunak, and fueled by various grievances including denial of climate change, resistance to higher taxes, and aversion to change, a backlash against climate-friendly policies is evident in many wealthy democracies. Populist politicians exacerbate these sentiments by exaggerating costs, embellishing details, and framing climate issues as cultural battlegrounds.

This polarization in public opinion poses challenges for consistent climate policy, making it harder for investors to plan for the long term. President Joe Biden’s approach involves significant investment in green technology to create jobs and counter China, but this is criticized for its potential drawbacks, including raising public debt and opening the door to protectionism.

A more effective strategy would involve a well-designed mix of carbon pricing and other measures to reduce emissions throughout the economy. Carbon taxes, though unpopular, are necessary and should be implemented transparently. Governments can minimize hassle and costs for households by shifting burdens to utilities and providing predictable incentives for emissions reduction. Additionally, workers in industries affected by transition should be offered support, and judicious regulation can drive innovation in cleaner technologies.

Addressing the upfront costs of clean technologies, particularly in developing countries, is crucial, requiring global cooperation and honesty from politicians about the disruption and the need to minimize its impact.

https://www.economist.com/leaders/2023/10/12/how-to-deal-with-the-global-anti-climate-backlash