Directive-based approaches
Various directive-based policy options can be identified. Often, harmonized regulations and/or standards of a global nature are required due to conflicts in the transnational vertical supply chain, short-termism, ignorance or indifference about the public good, or to avoid unintended consequences, such as emissions leakage or competitive market distortions. Standards are also effective policy instruments in creating new industry value chains because they could create certainly on the size of commercially viable markets. They could act as an incentive for public or private investment, or could be useful in ensuring industry uptake of new-to-market low-carbon technologies. Standards and benchmarks could also facilitate greater public awareness and transparency. Examples include: