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The Role of EconomicRegulators in the GreenTransition DRIVING SUSTAINABLE CHANGE IN NETWORKSECTORS The Governance of Regulators The Role of EconomicRegulators in the GreenTransition DRIVING SUSTAINABLE CHANGE IN NETWORKSECTORS This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use ofsuch data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements inthe West Bank under the terms of international law. Note by the Republic of Türkiye The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no singleauthority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic ofNorthern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiyeshall preserve its position concerning the “Cyprus issue”. Note by all the European Union Member States of the OECD and the European UnionThe Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. Theinformation in this document relates to the area under the effective control of the Government of the Republic of Cyprus. OECD (2024),The Role of Economic Regulators in the Green Transition: Driving Sustainable Change in Network Sectors, TheGovernance of Regulators, OECD Publishing, Paris, https://doi.org/10.1787/7d4704c9-en. ISBN 978-92-64-50209-3 (print)ISBN 978-92-64-43247-5 (PDF)ISBN 978-92-64-45291-6 (HTML)ISBN 978-92-64-69372-2 (epub) The Governance of RegulatorsISSN 2415-1432 (print)ISSN 2415-1440 (online) Photo credits:Cover © AndreAnita/Shutterstock.com. Corrigenda to OECD publications may be found at: https://www.oecd.org/en/publications/support/corrigenda.html.© OECD 2024 Attribution 4.0 International (CC BY 4.0)This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword Climate change and other environmental threats require urgent government action. One of the prioritiesfor governments looking to mitigate risks associated with such threats is the transformation of utilities, or“network”sectors. Achieving the“green transition”will require the profound transformation of the water,energy, e-communications, and transportation sectors, which are typically highly resource intensive andhave a significant environmental impact.Furthermore,biodiversity protection, greenhouse gas emissionsreduction, and resource efficiency all depend to some extent on achieving the green transition in utilitysectors. Governments will need to find the appropriate toolsandinstitutional frameworks toenable thistransition. Regulation is one of themaininstruments governmentscan useto enable and encourage progress towardenvironmental goals. As leading public bodies in the governance of utility sectors, the activities of economicregulators can significantly affect environmental outcomes. Throughtheir actions and decisions, economicregulators can influence how operators and consumers consider environmental sustainability in theirdecisions and choices. This raises questions about the appropriate role of economic regulators insupporting the green transition and contributing to environmental goals. This publication surveys economic regulators’ contribution to the green transition in the sectors theyoversee, considering the changing responsibi