Long-term deep emission reductions, including the reduction of emissions to net zero, is best achieved through institutions and governance that nurture new mitigation policies, while at the same time reconsidering existing policies that support continued Greenhouse Gas (GHG) emissions (robust evidence, high agreement). To do so effectively, the scope of climate governance should include both direct efforts to target GHG emissions and indirect opportunities to tackle GHG emissions that result from efforts directed towards other policy objectives. {13.2, 13.5, 13.6, 13.7, 13.9}

Institutions and governance underpin mitigation by providing the legal basis for action. This includes setting up implementing organisations and the frameworks through which diverse actors interact (medium evidence, high agreement). Institutions can create mitigation and sectoral policy instruments; policy packages for low-carbon system transition; and economy-wide measures for systemic restructuring. {13.2, 13.7, 13.9}

Policies have had a discernible impact on mitigation for specific countries, sectors, and technologies (robust evidence, high agreement), avoiding emissions of several GtCO2-eq yr–1 (medium evidence, medium agreement) . Both market-based and regulatory policies have distinct, but complementary roles. The share of global GHG emissions subject to mitigation policy has increased rapidly in recent years, but big gaps remain in policy coverage, and the stringency of many policies falls short of what is needed to achieve strong mitigation outcomes (robust evidence, high agreement ). {13.6, Cross-Chapter Box 10 in Chapter 14}

Climate laws enable mitigation action by signalling the direction of travel, setting targets, mainstreaming mitigation into sector policies, enhancing regulatory certainty, creating law-backed agencies, creating focal points for social mobilisation, and attracting international finance (medium evidence, high agreement ). By 2020, ‘direct’ climate laws primarily focused on GHG reductions were present in 56 countries covering 53% of global emissions, while more than 690 laws, including ‘indirect’ laws, may also have an effect on mitigation. Among direct laws, ‘framework’ laws set an overarching legal basis for mitigation either by pursuing a target and implementation approach, or by seeking to mainstream climate objectives through sectoral plans and integrative institutions. {13.2}

Institutions can enable improved governance by coordinating across sectors, scales and actors, building consensus for action, and setting strategies (medium evidence, high agreement). Institutions are more stable and effective when they are congruous with national context, leading to mitigation-focused institutions in some countries and the pursuit of multiple objectives in others. Sub-national institutions play a complementary role to national institutions by developing locally-relevant visions and plans, addressing policy gaps or limits in national institutions, building local administrative structures and convening actors for place-based decarbonisation. {13.2}

Sub-national actors are important for mitigation because municipalities and regional governments have jurisdiction over climate-relevant sectors such as land-use, waste and urban policy; are able to experiment with climate solutions; and can forge partnerships with the private sector and internationally to leverage enhanced climate action (robust evidence, high agreement). More than 10,500 cities and nearly 250 regions representing more than 2 billion people have pledged largely voluntary action to reduce emissions. Indirect gains include innovation, establishing norms and developing capacity. However, sub-national actors often lack national support, funding, and capacity to mobilise finance and human resources, and create new institutional competences. {13.5}

Climate governance is constrained and enabled by domestic structural factors, but it is still possible for actors to make substantial changes (medium evidence, high agreement). Key structural factors are domestic material endowments (such as fossil fuels and land-based resources); domestic political systems; and prevalent ideas, values and belief systems. Developing countries face additional material constraints in climate governance due to development challenges and scarce economic or natural resources. a broad group of actors influence how climate governance develop over time, including a range of civic organisations, encompassing both pro-and anti-climate action groups . {13.3, 13.4}

Mitigation strategies, instruments and policies that fit with dominant ideas, values and belief systems within a country or within a sector are more easily adopted and implemented (medium evidence, medium agreement) . Ideas, values and beliefs may change over time. Policies that bring perceived direct benefits, such as subsidies, usually receive greater support. The awareness of co-benefits for the public increases support of climate policies (robust evidence, high agreement ). {13.2, 13.3, 13.4}

Climate litigation is growing and can affect the outcome and ambition of climate governance (medium evidence, high agreement). Since 2015, at least 37 systemic cases have been initiated against states that challenge the overall effort of a state to mitigate or adapt to climate change. If successful, such cases can lead to an increase in a country’s overall ambition to tackle climate change. Climate litigation has also successfully challenged governments’ authorisations of high-emitting projects setting precedents in favour of climate action. Climate litigation against private sector and financial institutions is also on the rise. {13.4}

The media shapes the public discourse about climate mitigation. This can usefully build public support to accelerate mitigation action, but may also be used to impede decarbonisation (medium evidence, high agreement). Global media coverage (across a study of 59 countries) has been growing, from about 47,000 stories in 2016–2017 to about 87,000 in 2020–2021. Generally, the media representation of climate science has increased and become more accurate over time. On occasion, the propagation of scientifically misleading information by organised counter-movements has fuelled polarisation, with negative implications for climate policy. {13.4}

Explicit attention to equity and justice is salient to both social acceptance and fair and effective policymaking for mitigation (robust evidence, high agreement) . Distributional implications of alternative climate policy choices can be usefully evaluated at city, local and national scales as an input to policymaking. Institutions and governance frameworks that enable consideration of justice and just transitions are likely to build broader support for climate policymaking . {13.2, 13.6, 13.8, 13.9}

Carbon pricing is effective in promoting implementation of low-cost emissions reductions (robust evidence, high agreement) . While the coverage of emissions trading and carbon taxes has risen to over 20% of global CO2 emissions, both coverage and price are lower than is needed for deep reductions. The design of market mechanisms should be effective as well as efficient, balance distributional goals and find social acceptance. Practical experience has driven progress in market mechanism design, especially of emissions trading schemes (robust evidence, high agreement ). Carbon pricing is limited in its effect on adoption of higher-cost mitigation options, and where decisions are often not sensitive to price incentives such as in energy efficiency, urban planning, and infrastructure (robust evidence, medium agreement ). Subsidies have been used to improve energy efficiency, encourage the uptake of renewable energy and other sector-specific emissions saving options (robust evidence, high agreement ). {13.6}

Regulatory instruments play an important role in achieving specific mitigation outcomes in sectoral applications (robust evidence, high agreement) . Regulation is effective in particular applications and often enjoys greater political support, but tends to be more economically costly, than pricing instruments (robust evidence, medium agreement ). Flexible forms of regulation (for example, performance standards) have achieved aggregate goals for renewable energy generation, vehicle efficiency and fuel standards, and energy efficiency in buildings and industry (robust evidence, high agreement ). Infrastructure investment decisions are significant for mitigation because they lock-in high- or low- emissions trajectories over long periods. Information and voluntary programmes can contribute to overall mitigation outcomes (medium evidence, high agreement ). Designing for overlap and interactions among mitigation policies enhances their effectiveness (robust evidence, high agreement ). {13.6}

Removing fossil fuel subsidies would reduce emissions, improve public revenue and macroeconomic performance, and yield other environmental and sustainable development benefits; subsidy removal may have adverse distributional impacts especially on the most economically vulnerable groups which, in some cases can be mitigated by measures such as redistributing revenue saved, all of which depend on national circumstances ( high confidence); fossil fuel subsidy removal is projected by various studies (using alternative methodologies) to reduce global CO2 emissions by 1–4%, and GHG emissions by up to 10% by 2030, varying across regions (medium confidence). {6.3, 13.6}

National mitigation policies interact internationally with effects that both support and hinder mitigation action (medium evidence, high agreement) . Reductions in demand for fossil fuels tend to negatively affect fossil fuel exporting countries (medium evidence, high agreement ). Creation of markets for emission reduction credits tends to benefit countries able to supply credits. Policies to support technology development and diffusion tend to have positive spillover effects (medium evidence, high agreement ). There is no consistent evidence of significant emissions leakage or competitiveness effects between countries, including for emissions-intensive trade-exposed industries covered by emission trading systems (medium evidence, medium agreement ). {13.6}

Policy packages are better able to support socio-technical transitions and shifts in development pathways toward low-carbon futures than are individual policies (robust evidence, high agreement). For best effect, they need to be harnessed to a clear vision for change and designed with attention to local governance context. Comprehensiveness in coverage, coherence to ensure complementarity, and consistency of policies with the overarching vision and its objectives are important design criteria. Integration across objectives occurs when a policy package is informed by a clear problem framing and identification of the full range relevant policy sub-systems. {13.7}

The co-benefits and trade-offs of integrating adaptation and mitigation are most usefully identified and assessed prior to policy making rather than being accidentally discovered (robust evidence, high agreement). This requires strengthening relevant national institutions to reduce silos and overlaps, increasing knowledge exchange at the country and regional levels, and supporting engagement with bilateral and multilateral funding partners. Local governments are well placed to develop policies that generate social and environmental co-benefits but to do so require legal backing and adequate capacity and resources. {13.8}

Climate change mitigation is accelerated when attention is given to integrated policy and economy-wide approaches, and when enabling conditions (governance, institutions, behaviour, innovation, policy, and finance), are present (robust evidence, medium agreement). Accelerating climate mitigation includes simultaneously weakening high carbon systems and encouraging low-carbon systems; ensuring interaction between adjacent systems (e.g. energy and agriculture); overcoming resistance to policies (e.g., from incumbents in high carbon emitting industries), including by providing transitional support to the vulnerable and negatively affected by distributional impacts; inducing changes in consumer practices and routines; providing transition support; and addressing coordination challenges in policy and governance. {13.7, 13.9}

Economy-wide packages, including economic stimulus packages, can contribute to shifting sustainable development pathways and achieving net zero outcomes while meeting short term economic goals (medium evidence, high agreement). The 2008–2009 Global Recession showed that policies for sustained economic recovery go beyond short-term fiscal stimulus to include long-term commitments of public spending on the low-carbon economy; pricing reform; addressing affordability; and minimising distributional impacts. COVID-19 spurred stimulus packages and multi-objective recovery policies that may have the potential to meet short-term economic goals while enabling longer-term sustainability goals. {13.9}

This chapter assesses national and sub-national policies and institutions. Given the scale and scope of the climate challenge, an immediate challenge for this assessment is defining its scope. Because a very wide range of institutions and policies at multiple scales carry implications for climate change, the approach followed here is to embrace a broad approach. Consequently, institutions and policies discussed include dedicated climate laws and organisations (Section 13.2) and direct mitigation policies such as carbon taxes (Section 13.6), but also those, such as sectoral ministries and their policies (Sections 13.6 and 13.7) and sub-national entities such as regional bodies, cities, and their policies (Section 13.5), the implications of which are salient to mitigation outcomes. This approach recognises that there are important linkages with international climate governance (Chapter 14), notably the role of internationally mandated Nationally Determined Contributions’ in stimulating domestic policy development (Section 13.2), transnational networks in spurring sub-national action (Section 13.5), and international effects of domestic policies (Section 13.6).

This encompassing approach to climate governance is also built on a recognition that climate policymaking is routinely formulated in the context of multiple policy objectives such as energy security, energy access, urban development, and mitigation-adaptation linkages. This informs policymaking based on an understanding that to fully maximise direct and indirect climate mitigation potential, maximising co-benefits and minimising trade-offs should be explicitly sought rather than accidentally discovered and policies designed accordingly. This understanding also informs the design of institutions (Section 13.2) and policies (Sections 13.6 and 13.7) as well as the linkage between mitigation and adaptation (Section 13.8).

The chapter also engages with several new developments and an expansion of the literature since AR5.

A growing literature assesses how national policymaking on climate mitigation is dependent on national politics around, and building consensus on, climate action. This, in turn, is shaped by both nationally specific structural features (Section 13.3) and the role of different actors in the policymaking process (Section 13.4). Important new avenues through which climate policy making is shaped, such as climate litigation (Section 13.4.2), and channels for public opinion formation, such as the media (Section 13.4.3) are also assessed. The chapter weaves discussions of the role of justice, understood through a discussion of procedural justice (Section 13.2), distributional justice (Section 13.6) and vulnerability (Section 13.8), and its role in creating public support for climate action (Section 13.9).

A significant new theme is the focus on the dynamic elements of policy making, that is, how policy can be designed to accelerate mitigation. This includes through technological transitions, socio-technical transitions, shifts in development pathways and economy-wide measures. This literature emphasises the importance of examining not just individual policies, but packages of policies (Section 13.7) and how these are enabled by the alignment of policy, institutions, finance, behaviour and innovation (Section 13.9). Also new is attention to the opportunities for economy-wide system change presented by consideration of post-COVID recovery packages, and wider efforts at sustainable economic restructuring (Section 13.9). Consistent with the discussion in Chapter 4, these larger approaches offer opportunities to undertake systemic restructuring and shift development pathways.

Finally, the chapter addresses core themes from earlier assessment reports, but seeks to do so in an enhanced manner. The discussion of climate institutions assesses a growing literature on climate law, as well as both purpose-built climate organisations and the layering of climate responsibilities on existing organisations at national and sub-national scales (Section 13.2). The discussion of policies focuses on an ex post assessment of policies, as well as the interaction among them, and learnings on how they can be combined in packages (Sections 13.6 and 13.7). It also lays out a framework for their assessment that encompasses environmental effectiveness, economic effectiveness, distributional outcomes, co-benefits, institutional requirements, as well as a new criterion of transformational potential (Section 13.6).

The aim of this chapter is to assess the full range of the multi-stranded and diverse literature on climate institutions and policy, reflecting the richness of real-world climate governance.

Institutions and governance arrangements can help address ‘policy gaps’ and ‘implementation gaps’ (Cross-Chapter Box 4 in Chapter 4) that hinder climate mitigation. While the need for institutions and governance is universal, individual country approaches vary, based on national approaches and circumstances, as discussed in this section.

Since AR5, the understanding of climate governance has become more encompassing and complex, involving multiple actors, decision-making arenas, levels of decision-making and a variety of political goals. Climate governance sometime directly targets GHG emissions; at other times mitigation results from measures that primarily aim to solve other issues, for instance relating to food production, forest management, energy markets, air pollution, transport systems or technology development, but with mitigation or adaptation effects (Karlsson et al. 2020).

Consistent with usage in this assessment, institutions are rules, norms and conventions that guide, constrain or enable behaviours and practices, including the organisations through which they operate, while governance is the structure, processes and actions that public and private actors use to address societal goals (See Glossary for complete definitions). Multiple terms are used in the literature to discuss climate governance, often varying across countries. Climate laws, or legislation, is passed by legislatures, and often sets the overarching governance context, but the term is also used to refer to legislation that is salient to climate outcomes even if not centrally focused on climate change. National strategies, often referred to as plans, most often operate through executive action by government, set guidance for action and often are not legally binding, although strategies may also be enshrined in law. Both laws and strategies may elaborate targets, or goals, for emissions outcomes, although these are not necessary components of laws and strategies. While laws typically operate at the national level (states may also make laws in federal nations), strategies, plans and targets may also operate at the sub-national level.

This section begins with a discussion of national laws for climate action (Section 13.2.1), followed by a discussion of national strategies (Section 13.2.2). The third section examines institutions (Section13.2.3), including organisations that are established to govern climate actions, and the final section explores sub-national institutions and their challenges in influencing climate mitigation (Section 13.2.4).

A growing literature suggests that ambitious climate policy emerges out of strong domestic political support (medium evidence, medium agreement ) (Aklin and Mildenberger 2020 ; Lamb and Minx 2020; Colgan et al. 2021). Such support is the outcome of political interest constellations and struggles that vary from country to country. Structural factors (such as economic wealth and natural resources, the character of the national political system, and the dominant ideas, values and beliefs) shape how climate change is governed (medium evidence, high agreement ) (Boasson 2015; Hochstetler 2020). This section assesses the ways these structural factors affect political dynamics and decision-making, and ultimately constrain, sustain or enable development of domestic climate governance.

While these structural factors are crucial, they do not determine the outlook of given countries’ climate governance, as civic, corporate and/or political groups or individuals can be mobilised and seek to counteract these structural effects, as indicated in the following Section 13.4 that examines the role of various actors and agencies in shaping governance processes. Taken together, Sections 13.3 and 13.4 show that domestic climate governance is not fully constrained by structural factors, but rather that diverse actors can and do achieve substantial changes.

While Section 13.3 shows that structural factors condition climate governance, their ultimate importance also depends on whether and how various actors are mobilised (Hochstetler 2020; Boasson 2015). a wide range of regional and local governments as well as non-governmental actors have become increasingly engaged in climate governance, for instance through public-private partnerships and transnational networks (Jordan et al. 2015; Dorsch and Flachsland 2017; Jordan et al. 2018) and through the media and litigation, as discussed here.

Climate governance processes result from both slow-moving incremental changes to policy and more rapid bursts of change due to, for example, responses to dramatic weather events, general elections or global climate summits (medium evidence, high agreement ) (Aamodt and Stensdal 2017; Jordan and Moore 2020; Boasson et al. 2021). While Section 13.3 assessed how entrenched structural factors conditions climate governance developments, this section examines how actors are able to alter climate governance by engaging the climate policy process, undertaking litigation and interacting with media.

In many countries, sub-national actors and networks are a crucial component of climate mitigation as they have remit over land-use planning, waste management, infrastructure, housing and community development, and their jurisdictions are often where the impacts of climate change are felt (robust evidence, high agreement ). Depending on the legal framework and other institutional constraints, sub-national actors play crucial roles in developing, delivering and contesting decarbonisation visions and pathways (Schroeder et al. 2013; Ryan 2015; Abbott et al. 2016; Bäckstrand et al. 2017; Amundsen et al. 2018; Fuhr et al. 2018) (Section 13.3.3).

Sub-national actors include organisations, jurisdictions, and networks (e.g., a coalition of cities or state authorities). These are either formal or informal, profit or non-profit and public or private (Avelino and Wittmayer 2016). For example, corporations are formal, private, and for-profit, the state and labour organisations are formal, public, and non-profit, and communities are private, informal, and non-profit. An intermediary sector, crossing the boundaries between private and public, for profit and non-profit, includes energy cooperatives, not-for-profit energy enterprises, and the scientific community (Avelino and Wittmayer 2016).

To address the challenge of climate mitigation, a range of actors across sectors and jurisdictions have created coalitions for climate governance, operating as actor-networks. For example, mitigation policies are particularly effective when they are integrated with co-benefits such as health, biodiversity, and poverty reduction (Romero-Lankao et al. 2018a). Transnational business and public-private partnerships and initiatives, as well as international cooperation at the sub-national and city levels are discussed in Chapter 14.

Institutions and governance processes described in previous section result in specific policies, that governments then implement and that shape actions of many stakeholders. This section assesses the empirical experience with the range of policy instruments available to governments with which to shape mitigation outcomes. Section 13.7 that follows deals with how these instruments are combined into packages, and Section 13.9 addresses economy-wide measures and issues.

Many different policy instruments for GHG reduction are in use. They fall into a few major categories that share key characteristics. This section provides one possible taxonomy of these major types of policy instruments, presents a set of criteria for policy evaluation, and synthesises the literature on the most common mitigation policies. The emphasis is on recent empirical evidence on the performance of different policy instruments and lessons that can be drawn from these experiences. This builds on and enhances the AR5 Chapter 15, which provided a more theoretical treatment of policy instruments for mitigation.

Research has expanded in a number of areas relevant to climate mitigation, yet there is considerable scope to add to knowledge. Key areas for research exist in climate institutions and governance, politics, policies and acceleration of action. In each area there is an overarching need for more ex post analysis of impact, more cases from the developing world, and understanding how institutions and policies work in combination with each other.

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