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The Paris Agreement requires radical action across all policy sectors and at all scales of government. This paper argues that without a clear framework for sectoral budget setting which takes account of interactions across spatial scales, incoherent and inadequate policy responses will result. Using a case study of the transport sector within the UK, which has committed to a zero carbon pathway in law, we look at three key elements which have to be considered in setting out a new framework: budget coherence, accounting coherence and policy coherence. Using top-down and bottom-up examples emerging from practices today in the UK, we demonstrate that there are no 'optimal' solutions but a set of choices, all of which appear to be better than the patchwork of approaches emerging in the absence of a framework. A multi-scalar approach is essential as transport crosses spatial boundaries and the policy system places different levers at different scales. Transparency will be beneficial for honesty with the public and the difficult politics this rapid transition necessitates. It will also mitigate against blame shifting across governments between and within scales and the resultant inaction which characterized the previous decade of supposed 'climate action'. [ABSTRACT FROM AUTHOR]

The scale of the decarbonisation challenge and the short timeframes over which action is required demand urgent action. This paper is set within the surface transport sector, now the largest sector of emissions with the slowest pace of change in many advanced liberal economies. It focuses on the strategies and actions of local government which is recognised to be a central player in catalysing change. Our evidence is derived from the actions of two UK local areas which claim to be at the forefront of the decarbonisation challenge. The paper focuses on the role of funding and financial mechanisms in addressing the climate crisis. In the face of an established pattern of austerity and hollowing out of local government we explore how deep transformation is being envisaged. We find a recursive set of issues which derive from a dependence on funding from outwith. This dependence means that despite comprehensive overarching strategies and goals the funding available is the core of the strategy. This means that the nature of the funds, such as the requirement for experimentation, innovation or private sector leverage, defines direction. In turn, and to maintain success in attracting funds, there is an emphasis on presenting 'premium spaces of ambition' with little evidence of attention to broader systemic change. This duality is openly recognised. This paper advances a wider point that greater emphasis should be placed on the 'financialisation' of climate policy and the reality rather than the rhetoric of change. [ABSTRACT FROM AUTHOR]