Governing the Green Transition: Policy Instruments for Environmental Sustainability

Abstract The transition to a green economy has emerged as a global imperative in the face of escalating climate change, ecological degradation, and unsustainable resource consumption. Central to this transition is the strategic use of policy instruments that can guide economies toward low-carbon, resource-efficient, and socially inclusive development pathways. This paper critically examines the range of policy instruments regulatory, economic, and voluntary -employed in environmental governance to facilitate the green transition. Drawing on comparative case studies from both developed and developing countries, the study analyzes how different tools, such as carbon pricing, environmental taxes, subsidies for renewable energy, emissions trading systems, and green public procurement, have been designed and implemented to address sustainability challenges. The research explores not only the effectiveness of these instruments in achieving environmental objectives, but also their social and economic implications, including equity, public acceptance, and institutional readiness. Emphasis is placed on the importance of policy integration, stakeholder participation, and adaptive governance in ensuring these instruments contribute meaningfully to long-term sustainability. The paper concludes that a well-calibrated mix of policy instruments, tailored to national contexts and supported by strong institutions, is essential to successfully govern the green transition and realize the broader goals of environmental sustainability.