Green Industrial Policy Round Table 2: Deep Dives into Sectoral Industrial Policies and Development

The second Green Industrial Policy Round Table built on Round Table 1 and brought together experts and policymakers to examine the profound tensions shaping today’s global economy. Industrial policy has returned to prominence amid climate pressures, geopolitical shifts, and the urgent need to balance environmental action with economic and social development. While such policies can drive innovation, growth, and climate solutions, they can also distort trade, redirect investment, and heighten inequalities—particularly for developing countries navigating limited fiscal space.

This roundtable focused on sector-specific challenges and opportunities. Discussions on decarbonising legacy sectors such as steel, aluminum, cement, and chemicals highlighted the complexity of reducing emissions while maintaining competitiveness and avoiding carbon leakage in a context of uneven climate ambition. Discussions also turned to renewable energy technologies, exploring how different economies can secure sustainable roles in fast-growing value chains, particularly in mineral-rich countries seeking greater domestic value addition.

Beyond traditional industries, participants also considered how industrial policy can support agriculture, services, and the digital economy. These discussions underscored the importance of inclusive growth strategies that allow developing countries to benefit from emerging economic models.

Participants reflected on the road ahead, looking at governance reforms and institutional frameworks needed to ensure that industrial policies contribute to an inclusive, economically viable, and environmentally sustainable global economy. The insights from this roundtable will shape the next stages of the initiative, guiding future research and dialogue on how trade and industrial policy can be aligned to serve both national interests and global well-being.

Insights from these discussions will help shape the direction of IISD’s Green Industrial Policies workstream and guide future research.

These round tables are part of a 4-year project led by the International Institute for Sustainable Development and funded by Open Society Foundations.

Green Industrial Policy Roundtable Series

• Round table 1 | Setting the Stage
• Round table 2 | Deep Dives into Sectoral Industrial Policies and Development
• Round table 3 | Industrial Policies and the Global Trade Framework