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Out of the three key actors, the state holds a unique position. By setting the rules of the game, it creates the systemic framework that makes it easier for businesses and individuals to take the necessary steps toward a low-carbon future.

The State

The role of government — from local municipalities to supranational bodies such as the EU — is to create conditions for a transition that is swift, efficient, socially just, economically beneficial, and publicly supported. To achieve this, governments use a mix of four policy types:

• Regulatory: Setting binding targets, performance standards (e.g., fuel efficiency for cars), and building codes.
• Economic: Carbon pricing (taxes or trading systems), subsidies for clean technology, and tax reliefs for green investments.
• Infrastructure Investment: Funding large-scale projects like modernized electricity grids, high-speed rail, and public charging networks that private investors may not fund alone.
• Awareness & Transparency: Establishing rules for energy labeling, carbon footprint disclosure, and public awareness campaigns to help citizens make informed choices.

The scale of investment needed for the transition far exceeds what governments alone can provide. Therefore, one of the most vital functions of climate policy is to provide the stability and clarity needed to mobilize massive amounts of private investment.

Businesses

Companies are the engines of the technical transition. They decarbonize by:

• Switching to clean electricity and electrifying manufacturing processes.
• Improving resource efficiency and reducing waste through circular economy models.
• Developing and scaling clean technologies and low-emission innovations.
• Investing in the necessary changes.

While service-sector companies may only need to switch to clean electricity and operate from a low-energy building, heavy industries like steel, cement, and chemicals require a fundamental transformation of their production processes. These sectors are the most critical for achieving deep emission cuts.

People

The largest share of global emissions is linked to heavy industry and energy production, where individuals have limited direct control. However, the active participation of individual people – as citizens, voters, employees, and purchasers of goods/services – will be essential to the success of decarbonisation even in those sectors. All people can initiate, advocate for, and implement change.

Furthermore, people have direct influence over emissions from their homes, food, and transport. Shifts in consumer behaviour like using public transit or adopting a more plant-based diet and investments in insulation, heat pumps, rooftop solar, and electric vehicles provide immediate and significant emission reductions.

Other actors

The transition is also supported by international organizations (like the UN), non-governmental organizations (NGOs), trade unions, banks, and educational institutions, all of which help bridge the gaps between the state, businesses, and the public.