Policies encouraging eco-innovation, defined as 'new ideas, behaviour, products, and processes that contribute to a decreased environmental burden' , can positively affect economic competitiveness. By implementing policies to encourage eco- innovation, countries enhance their energy efficiency. These gains can provide more resource-efficient production technologies and positively affect economic competitiveness  . Other than eco-innovation, it is important to also consider exnovation, meaning the phasing out of old technologies, as otherwise the expansion of supply could lead to a rebound owing to cheaper prices for carbon-based products . Hence, decarbonisation strategies that set limits to carbon-based trajectories can be beneficial. Quantity- based interventions-or so-called 'command-and-control' policies- involve constraints on the quantity of energy consumption or GHG emissions through laws, regulations, standards and enforcement, with a focus on effectiveness rather than efficiency.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report