Bas Gorrens (KU Leuven) examines when firms decide to adopt clean technologies during the transition to a low-carbon economy. His research shows that companies respond not only to current carbon prices but also to expectations about future climate policies, technology costs, and market conditions. Because clean technologies require large and often irreversible investments, firms may rationally delay adoption until policy signals become clearer or technologies become cheaper. The study finds that larger, more polluting firms tend to adopt clean technologies earlier due to greater exposure to carbon pricing and stronger financial capacity. Gradual and credible policies, such as the EU ETS, allow firms time to adapt, reducing economic disruption while encouraging technological change. The research also suggests that policies lowering the cost of clean technologies may accelerate the transition more effectively than relying solely on higher carbon prices or trade protections like CBAM.