Green Industrial Policy: A Strategy for Realization of Green Industry

A growing number of governments and institutions around the world are arguing that turning the imperative of decarbonization into an opportunity for green growth requires stronger and smarter policies to boost job creation and industrial development. Governments use green industrial policies to address the economic, social, political and environmental issues of climate change. However, scientists warn that urgent action must be taken in oreder to reduce greenhouse gas emissions and mitigate the effects of climate change. They also argue that mitigating climate change impacts requires government intervention and governance reforms. In order to achieve this, the green industrial policy should be considered as the cornerstone of the measures and it is a necessity. The purpose of this research is to investigate the potential of green industrial policy and how green industrial policies can be designed. The current research is of a fundamental type and the research method used in it is descriptive-analytical, which examines the main purpose of the research by using a review approach in literature analysis and library studies. The statistical population of the research includes scientific-research articles that are in the field of domestic and foreign scientific research publications, focusing on the main question raised, the required information has been extracted. Finally, according to the mentioned cases, the data was categorized and analyzed. In this research, nine tools for the realization of green industrial policy have been identified, which are: alignment of green industrial policy with market mechanisms, subsidies, finance (bonds and taxes), renewable portfolio standards, directives, procurement of green products and supplies, local content requirements, shift from linear industrial systems to circular economies and finally feed-in tariffs. Taxation, removal of incentives, forced exit are the tools of implementing industrial policy that disrupts green. Based on the results of current research,strong governance, public-private partnership and civil society participation, dealing with the failures of the green market, coordination and coherence of policies, cross-border look at the green industrial policy, solving the government's failures in the green industrial policy, innovation policy and methodology development. Clearly accounting for climate-related costs and designing standards are fundamental priciples of a successful green industrial policy.