Clean technology innovation is one of the 3 focus areas within Net Zero Industry and Innovation. It supports the development and continued innovation of emerging clean technologies to help NSW shift to net zero emissions by 2050. By investing in the next wave of innovative, low emissions technologies, we will overcome technical and commercial barriers and build capacity across the state. This will position NSW as a leading investment destination and unlock export opportunities in coming decades.
The purpose of the $40 million Clean Technology Innovation Research and Development Grants Program is to invest in research and development of commercially viable technologies, services or processes that have potential to significantly reduce emissions of high emitting or hard-to-abate sectors within the NSW economy up to, and beyond, 2030.
The development and diffusion of clean technologies has an important role to play in preventing pollution. Government must address the issue of how firms can be given the necessary incentive to develop environmentally sound production techniques and products. This paper focus on how subsidies can — under certain restrictive conditions — stimulate innovation. Subsidization is usually assumed to involve unit subsidies for pollution reduction. Unit subsidies have little to do with the subsidy schemes in actual use. Our focus is on subsidy schemes specifically designed to promote the development of clean technologies through the use of grants/financial aid. Based on data from the development projects initiated through The Danish Clean Technology Programme we analyze how environmental innovations take place when the polluters, their suppliers and consultants are actively engaged in the development processes. The main merit of subsidy schemes like the Danish one is its direct focus on the innovation processes and the active incorporation of the network of firms surrounding the polluters. Our findings lead us to conclude that when it comes to subsidization, the role of government should be redefined. Government can act as a “matchmaker” by providing firms with informative incentives and necessary contacts for finding more efficient technological solutions to specific environmental problems.