Opportunities for Post−COP26 Governance to Facilitate the Deployment of Low−Carbon Energy Infrastructure: An Open Door Policy

Abstract

Temperatures worldwide continue to climb, while carbon emissions have exceeded previous records. To achieve environmental sustainability, countries with the Kyoto Protocol and Paris Agreement (COP26) demonstrate sophisticated technical expertise and deploy environmentally driven technologies, such as greenfield investment and renewable energy infrastructure. This proposal presents an intriguing opportunity for policymakers to identify the distinct characteristics of institutional reforms and green energy sources that may be used to mitigate carbon emissions. Governance regulatory factors, foreign direct investment (FDI), renewable energy consumption (REC), research and development expenditures, urbanization, and carbon emissions are examined in Pakistan. The study estimated the short- and long-run association between the variables using the ARDL bounds testing method for 1996Q1 to 2020Q4. In the short run, in terms of carbon emissions and economic output, the country has an upturned cord environmental Kuznets curve (EKC). The race-to-the-bottom concept holds for countries with U-shaped EKCs in the long term. The negative correlation between overseas investment and environmental damage supports the environmental halo hypothesis. Investment in research and technology may reduce emissions, even though urbanization increases them. Future and present REC are often intertwined with carbon footprints. Carbon emissions are also strongly connected with indicators of institutional quality (IQ), such as procedural efficiency, administrative effectiveness, and political unrest. The research findings demonstrated unidirectional Granger causality running from urbanization, government effectiveness, economic growth, and R&D expenditures to carbon emissions to validate urban-led emissions, institutional-led emissions, growth-led emissions, and innovation-led emissions in a country. Furthermore, R&D expenditure Granger causality was linked to inbound FDI, while government effectiveness Granger causality was linked to REC and R&D expenditures. Following the COP26 guidelines for achieving shared prosperity, the study concluded that good governance reforms, R&D expenditures, greenfield investment, and REC promote environmental sustainability and maintain air quality.

Fintech, green imports, technology, and FDI inflow: their role in CO2 emissions reduction and the path to COP26: a comparative analysis of China

“…Promoting international green trade frameworks and agreements can be extremely important for advancing sustainability efforts globally (Cheng et al, 2020). In order to encourage other countries to adopt comparable policies and practices, China's experiences and best practices might be discussed at COP26 (Ali et al 2023;Imran et al 2023).…”

Examining the trade-offs in clean energy provision: Focusing on the relationship between technology transfer, renewable energy, industrial growth, and carbon footprint reduction

“…First, switching to REC reduces reliance on fossil fuels, the most common cause of GHG emissions. The move away from fossil fuels and towards low-carbon alternatives may be further encouraged by the development of clean energy infrastructure and technologies facilitated by the widespread use of green energy sources [ 30 ]. A further reduction in carbon emissions may result from increased usage of sustainable power since it can stimulate the development of energy-efficient technology and practices.…”

“…The study explores how switching to REC sources reduces carbon emissions. REC sources produce fewer emissions than fossil fuels and can help mitigate climate change [ 30 ]. Third, how much does commercial expansion risk the global's average temperature?…”

Unraveling the carbon emissions Puzzle: Assessing the impact of FDI, financial development, and fossil fuel energy consumption on China's commitment to COP26 Agenda - Asymmetric evidence

“…Financial development, particularly through green nancing and sustainable investment practices, has been recognized as instrumental in driving the transition to a low-carbon economy (Kim and Seok 2023). In order to minimize CO2 emissions and meet climate targets, the use of fossil fuels for energy need to revise and address (Imran et al 2023). Hence, in the case of climate change mitigation, Policymakers must consider the variables under study to accomplish the goals outlined in the Paris Agreement.…”