Sustainability consultants are eschewing regulation in favor of presidency incentives as a approach to drive sustainability progress.
In a survey carried out by Trellis knowledge associate GlobeScan, in collaboration with ERM and Volans, sustainability professionals stated monetary incentives and market mechanisms are broadly seen as probably the most highly effective instruments for governments to advance sustainability within the subsequent 5 years.
Subsidies selling sustainable behaviors tops the listing, with 72 p.c of consultants score them as high-impact. That is adopted by:
- Carbon pricing mechanisms (65 p.c)
- City sustainability initiatives (63 p.c)
- Worldwide commerce insurance policies with sustainability requirements (63 p.c)
Whereas regulatory and compliance-focused instruments similar to obligatory due diligence (57 p.c) and company reporting frameworks such because the EU CSRD (40 p.c) are additionally seen as a part of the answer, they’re seen as much less efficient with out complementary monetary drivers.
What this implies
The message to policymakers is evident: align financial incentives with environmental targets to realize sooner, broader progress. Regulatory frameworks nonetheless matter, however their affect is proscribed except they’re paired with scalable monetary levers that change habits and enterprise fashions at tempo. As we strategy 2030, the best technique will possible be a hybrid strategy that mixes good regulation with robust market-based incentives. This indicators an vital shift in how governments ought to construction sustainability coverage to drive measurable affect.
Based mostly on a survey of 844 sustainability practitioners throughout 72 nations carried out April-Might 2025.