Policy frameworks and regulations for net zero

The imperative global need to curb climate change has placed reaching net-zero greenhouse gas (GHG) emissions at the forefront of global sustainability agendas. The chapter explains the changing policy environment and regulatory regimes that have been implemented to lead the world to net zero by mid-century. A background analysis highlights the rising global warming trend, with emissions needing to drop by approximately 45% from 2010 levels by 2030 to remain on a 1.5 °C path. Global agreements, such as the Kyoto Protocol, Paris Agreement, and Glasgow Climate Pact, are the cornerstone of global commitment, with national policies and sectoral rules propelling execution across diverse geographies and economic conditions. The chapter aims to discuss global and local policy instruments, assess market-based policies such as carbon pricing and emissions trading systems, and comprehend regulatory implementation barriers and opportunities. The research is methodologically applied using a comparative policy analysis instrument, supported by quantitative evidence, which estimates a maximum 90% reduction in CO₂ emissions by 2050 through the cumulative expansion of renewable energy and the implementation of carbon market policies. Most critical are the regional distinctions, such as the EU’s 55% GHG cut by 2030 and China’s goal of carbon neutrality by 2060, as well as critical shortcomings in climate finance, policy coherence, and monitoring instruments, including measurement, reporting, and verification systems. The uniqueness of this study lies in its comprehensive assessment across various levels of government, sectors, and funding mechanisms, providing a master plan that aligns regulatory strategies with sustainable development goals under one roof. The study concludes with a globally applicable framework that can inform future legislation, investment, and technology innovation to provide scalable solutions for emerging economies and industries with high emissions, enabling them to achieve carbon neutrality in an efficient manner.