Multilevel governance of climate change and ecological transition

Sean Dougherty and Andoni Montes Nebreda

Chapter 4 in Decentralized Governance and Climate Change, 2025, pp 78-95 from Edward Elgar Publishing

Abstract: This chapter examines the multilevel governance challenges and opportunities for advancing ecological transition. Although climate change is global, subnational governments are critical for implementing environmental policies. Drawing on recent OECD data, the analysis finds that while environmental protection is a highly decentralized policy area, subnational governments often lack sufficient capacity, financing, and incentives to pursue ambitious green agendas aligned with national and international goals. Key challenges include data gaps, monitoring limitations, unfunded mandates, and a lack of public support. However, multilevel governance policies also offer tools to overcome these obstacles. Recommendations include incorporating subnational input into international climate negotiations, fostering vertical and horizontal coordination, developing ecological fiscal transfers, and enhancing public participation. The chapter concludes that leveraging multilevel governance institutions in an equitable manner is essential for guiding the ecological transition. Future research should focus on addressing data gaps and designing standardized environmental indicators at the subnational level.

Keywords: Multilevel governance; Fiscal federalism; Intergovernmental fiscal relations; Environmental policy; Climate change; Ecological transition; Fiscal transfers (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035356379
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