New Trilemma: Climate, Development and the Middle-Class

OECD countries are expected to spend a yearly budget of 2% of their GDP on green industrial policies in the coming years, a tenfold increase from pre-COVID times. As governments in advanced economies multiply efforts to combat climate change and restore the prospects of the middle class in their countries, they risk closing traditional global pathways to development. How can we accelerate climate mitigation while reducing global poverty and protecting workers and consumers in advanced economies?