Without innovation, it will be very difficult and very costly to
achieve the transformation to a greener economy. There is vast
amount of scientific and empirical evidence that suggests that
reducing global greenhouse gases (GHG) emissions will require
innovation and large-scale adoption of green technologies
throughout the global energy system. How to foster green
technologies and innovation is perhaps the most crucial
challenge for a green economy. Recent efforts show that OECD
governments as well as emerging economies are giving priority to
R&D activities and incentives for specific technologies such as
renewal energies and environmental technologies. The key
challenge for policy makers in the area of science, technology
and innovation is to identify the specific policies that will be
needed to achieve broad technological change. The OECD
Innovation Strategy outlines that strengthening innovation
requires a policy response on several fronts. Besides market-
based measures and regulatory policies such as car