Investment-led green and climate-compatible 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, 1990). In order to make these common pool systems work, states would have to protect the rights of small-scale 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).