investmentled green and climatecompatible innovation strategies need sectoral policies and overarching structural or industrial policies to encourage market development where this is appropriate and necessary such arrangements can be based on local individual entitlements or communal use rights and develop collective systems of rewards incentives and penalties in relation to the use of collectively used resources such as land water systems forests which are significant in the face of the climate challenge either because of mitigation or in view of adaptation options ostrom in order to make these common pool systems work states would have to protect the rights of smallscale producers to their resources direct interventions include i public programmes for reforestation and technological innovation and ii regulatory measures such as the setting of targets or caps on ghg emissions zoning standards on emissions products and technology