The significant structural change implied by the transition of whole economies to balance greenhouse gas emissions and carbon sinks will inevitably create tensions among those affected – from central and local governments, to the private sector, the labour force and citizens. This chapter examines the social and economic factors that affect the ability of governments to envision and implement the long-term policy choices needed to stabilise the global climate. It considers how governments might draw on experience with industrial restructuring; the potential impacts of climate policy on households; and case studies that illustrate the need for a just transition for workers and communities. The chapter concludes by exploring how best to take political economy dimensions into account in preparing robust, long-term, low-emission development strategies.