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OECD WORK ON
ENVIRONMENT
2015-16
OECD WORK ON environment
12
The Organisation for Economic Co-operation and Development
13
Preface: Aligning Policies for the Transition to a Low-Carbon Economy
14
Peer Reviews, Indicators and Outlooks
18
Climate Change
12
Biodiversity
15
Water
18
Nitrogen Management
20
Environmental Policies and Economic Outcomes
23
Environmental Policy Tools and Evaluation
26
Resource Productivity and Waste
28
Sectoral Policies: Transport, Agriculture
30
Safety of Chemicals, Pesticides, Biotechnology & Nanomaterials
33
Environment in the Global Economy
36
Green Growth
42
The Committee Structures
43
EPOC Organigramme
44
Environment Directorate (ENV) Structure
48
Selected Databases
2
Me mbe r countr ie s
The Organisation for Economic Co-operation
and Development
T
he OECD, which traces its roots to the Marshall Plan, groups 34 member countries committed
Australia
Japan
Austria
Korea
can compare and exchange policy experiences, identify good practices and adopt decisions and
Belgium
Luxembourg
recommendations. Dialogue, consensus, and peer review and pressure are at the very heart of the
Canada
Mexico
OECD.
Chile
Netherlands
Czech Republic
New Zealand
OECD accession discussions are currently under way with Colombia and Latvia. In addition,
Denmark
Norway
enhanced co-operation programs are in place with Costa Rica and Lithuania and Country
Estonia
Poland
Programmes have been launched with Peru and Kazakhstan. Efforts are also made to enhance
Finland
Portugal
engagement with Key Partners such as Brazil, China, India, Indonesia and South Africa.
France
Slovak Republic
Germany
Slovenia
The OECD is working for a stronger, cleaner and fairer world economy. The principal aim of the
Greece
Spain
Organisation is to promote policies for sustainable economic growth and employment, a rising
Hungary
Sweden
standard of living, and trade liberalisation. By “sustainable economic growth” the OECD means
Iceland
Switzerland
growth that balances economic, social and environmental considerations.
Ireland
Turkey
Israel
United Kingdom
The OECD is one of the world’s largest and most reliable sources of comparable statistical,
Italy
United States
economic and social data. It monitors trends, collects data, analyses and forecasts economic
to democratic government and the market economy. It provides a forum where governments
development, and investigates evolving patterns in a broad range of public policy areas such as
agriculture, development co-operation, education, employment, taxation and trade, science,
technology, industry and innovation in addition to environment. The OECD family of organisations
also includes the International Energy Agency (IEA), the Nuclear Energy Agency (NEA), and the
International Transport Forum (ITF).
© OECD 2015
OECD work on
Environment
Preface:
Aligning policies for the transition to a low-carbon economy
“ Keeping
the global temperature increase to less then 2°C means
moving to net-zero emissions of greenhouse gas emissions from energy,
industry, transport and land use in the second half of this century. ”
Angel Gurría
OECD Secretary-General
C
limate change is one of the most pervasive risks that the global economy faces today. Moving to a low-carbon economy is the only
way to tackle rising global temperatures. It will require unprecedented policy-driven changes with far-reaching economic, social and
technological implications. This necessary transformation will have to take place alongside the significant climatic change that is already
locked in by past emissions and investments. In addition, the world’s population is both growing and ageing, as well as rapidly urbanising,
hence posing an even greater challenge to our efforts to achieve zero net emissions in the second half of this century.
This goal is achievable, but it will not happen by itself. It will require dedicated policy instruments and a supportive regulatory environment.
This year, we will be delivering a joint report with the International Energy Agency (IEA), the International Transport Forum (ITF), and the
Nuclear Energy Agency (NEA) that examines how to better align policies across different areas for a successful economic transition of all
countries to sustainable low-carbon and climate-resilient economies.
In the spirit of having a horizontal approach to promoting green growth, we are taking a broad look at policies across different areas, including
investment, taxation and trade, as well as key sectors such as electricity markets, land-use and mobility. Our mission will be to continue to
identify and promote policy options that can bring about a lasting transformation towards a low-carbon global economy.
© OECD 2015
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Peer Reviews, Indicators and Outlooks
Monitoring and analysing key environmental challenges, now and in the future
Environmental Performance Reviews (EPRs)
The EPRs examine countries’ progress towards their
domestic
and
international
environmental
policy
commitments, and provide policy recommendations. The
EPRs aim to promote peer learning, enhance governments’
accountability and improve countries’ environmental
performance. The analyses presented are supported by a
broad range of economic and environmental data.
Topics for in-depth analysis in EPRs
In-depth chapters
Biodiversity (and forestry)
Climate change (and air quality)
Waste and materials management
Energy and environment
Water management
Chemicals management
Tourism and environment
Sustainable mobility
Multi-level environmental governance
Each EPR is organised in two parts. The first part, common
to all reviews, presents key environmental trends, the
institutional and policy framework for environmental
management and progress towards green growth. The
second part provides an in-depth analysis of two topics
selected by the reviewed country.
Marine ecosystem services
Environmental performance of industry
Environmental innovation
Coastal zone management
Climate change adaptation
Agriculture and environment
0
1
2
3
4 5 6 7 8 9 10 11 12 13 14
Number of EPRs (2010-16)
Key publications
The Working Party for Environmental Performance, made
up of representatives of all 34 OECD governments and
the European Commission, endorses the assessment and
recommendations section of the EPRs, a central element of
the peer review process.
During 2015-16, reviews of Poland, Spain, Brazil, the
Netherlands, France, Chile, Korea and New Zealand will be
either released or prepared.
• OECD Environmental Performance Reviews:
• Brazil, the Netherlands, Poland, Spain (2015)
• Chile, France (2016)
www.oecd.org/env/countryreviews
Environmental information, data and indicators
The OECD provides harmonised international data and
indicators on the environment, and works with countries
to improve their environmental information systems and
© OECD 2015
OECD work on
...that by 2020 most OECD countries
will have undergone an environmental
performance review three times, with key partner countries such
as China, Russia, Colombia and South Africa also the subject of
review?
did you know
Environment
To generate better information on the interactions between
the economy and the environment, the OECD supports the
implementation of the System of Environmental Economic
Accounting (SEEA). A dedicated Task Force has been
established jointly with the OECD Statistics Directorate.
Environmental trends and GDP growth, OECD, % change,
2000-12
establish effective mechanisms to inform the public and
decision-makers.
GDP
Municipal waste
40
The data, collected from countries and international sources,
are treated, harmonised and their quality checked with
countries. They are then used in analytical and evaluative
work and serve as a basis for calculating indicators.
Air and greenhouse gas
emissions
Recovery
20
Generation
0
GHG
-20
The OECD has several indicator sets to monitor
environmental performance, policy integration, resource
productivity and progress towards green growth. A subset
of key environmental indicators was endorsed by OECD
Environment Ministers. The OECD measurement framework
and its guidance for selecting and using indicators, are a
reference for many countries.
Disposal
NMVOC
-40
CO
NOx
SOx
-60
Source: OECD Environment Statistics, OECD, 2014
Key Publications
• Towards Green Growth? Tracking Progress (2015)
The indicators are used in country reviews and policy
analysis, and their quality improved continuously. Work
is underway to further develop indicators on carbon and
material productivity, nitrogen flows, land cover, and
population exposure to air pollution.
© OECD 2015
• Material Resources, Productivity and the Environment (2015)
• Environment at a Glance (2015)
Environmental Indicators Country Profiles:
www.oecd.org/env/indicators
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Environmental outlooks
The OECD Environmental Outlook to 2050 was the primary input
to the OECD meeting of Environment Ministers in April 2012.
Based on economic-environmental modelling, the Outlook
looks towards 2050 to analyse the consequences of policy
inaction in four priority areas: climate change, biodiversity,
water, and health impacts of pollution and chemicals. It
provides analyses of economic and environmental trends to
2050, and simulations of policy actions to address the key
challenges.
did you know
…that almost four billion people will live in
severely water-stressed river basins by 2050 if better policies are not introduced?
Key Publications
• OECD Environmental Outlook to 2050:
Consequences of Inaction (2012)
• OECD Environmental Outlook to 2030 (2008)
www.oecd.org/env/indicators-modelling-outlooks/outlooks.htm
www.oecd.org/environment/modelling
© OECD 2015
OECD work on
The CIRCLE project
The “Cost of Inaction and Resource Scarcity; Consequences
for Long-term Economic Growth” (CIRCLE) project aims to
identify how feedbacks from poor environmental quality,
climatic change and natural resource scarcity are likely to
affect economic growth in the coming decades. Over a series
of model developments, CIRCLE will generate reference
projections for economic growth that reflect the costs of
policy inaction. These reference projections will help to
improve future OECD projections of economic growth, as
well as assessments of the economics of environmental
policies, as they are able to include not only costs but also
benefits of policy action in terms of reduced environmental
damages. This will allow a more informed evaluation of
policy options, and a comparison of the costs and benefits
involved.
scarcity. If possible, these themes will also be included in
the modelling track at a later stage.
First results for the assessment of the economic feedbacks
of climate change damages have been included in the OECD
horizontal report on OECD@100. A more comprehensive
assessment of the economic consequences of climate
change is expected to be published in September 2015. In
2015-16, reports for the other themes covered in CIRCLE are
also expected to be published.
Key Publications
• Economic Consequences of Climate Change Damage (2015)
• Consequences of Climate Change Impacts for Economic Growth:
A Dynamic Quatitative Assessment (2014)
The first track of the CIRCLE project is a quantitative analysis
of the economic feedbacks of climate change, air pollution
and the nexus between land, water and energy. The core
tool to be used in the analysis is the OECD’s dynamic global
multi-sector, multi-region model ENV-Linkages, which
will be coupled to biophysical models for an integrated
assessment. Using a systems approach allows focusing on
interactions between the various environmental challenges.
The second track scopes the possibilities to quantitatively
assess water-economy linkages, the economic feedbacks
of loss of biodiversity and ecosystem services and resource
© OECD 2015
Environment
www.oecd.org/environment/circle.htm
CIRCLE
Costs of
Inaction and
Resource scarcity:
Consequences for
Long-term
Economic growth
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Climate Change
Responding to complexity with analysis of least-cost policies
Economics of climate change mitigation
The OECD is assessing the economic costs and benefits
of climate policies. Our analysis focuses on least-cost
policy mixes to reduce emissions, the benefits of linking
carbon markets, phasing out fossil fuel subsidies, ensuring
sufficient financing, and how to address concerns about
carbon leakage and competitiveness impacts of climate
policies. The Environmental Outlook to 2050 makes projections
of climate change, as well as environmental and economic
impacts of climate policies. Equity considerations have
gained prominence in the face of current economic
and financial challenges. New work will examine the
distributional consequences of carbon taxes by household
types, sectors or regions.
The OECD helps countries identify and implement
effective and efficient policy mixes to meet their climate
commitments through analyses of the broad policy
mix (economic instruments, regulations, incentives for
technological innovation) as well as advice on how to best
implement policy reforms.
Key Publications
• Built to Last: Designing a Flexible and Durable 2015 Climate
Change Agreement (2014)
• The Role of the 2015 Agreement in Mobilising Climate Finance
(2014)
• OECD Environmental Outlook to 2050: The Consequences of
Inaction (2012)
www.oecd.org/env/cc
The OECD, together with the IEA, provides the Secretariat to
support the Climate Change Expert Group, a non-negotiating
forum where climate negotiators can discuss key issues
on the negotiating agenda. There is a large body of work
on the measurement, reporting and verification (MRV) of
mitigation actions and support; finance and matching of
finance to action; low-emission development strategies;
and market mechanisms including sectoral approaches for
mitigation and “market readiness”.
www.oecd.org/env/cc/ccxg.htm
© OECD 2015
OECD work on
Adaptation to climate change
Efforts to reduce GHG emissions need to be complemented
with policies and incentives to adapt to the effects of
a changing climate. The OECD is working to support
governments in planning and implementing effective,
efficient and equitable adaptation policies.
Environment
OECD analysis also examines the roles of innovation and the
private sector in driving adaptation. A pioneering 2011 report
focused on the private sector’s engagement in adaptation,
including factors that act as incentives or barriers to action.
OECD research examining trends in innovation to develop
more climate-resilient crops indicates rapidly increasing
interest in the field in recent decades.
Regional adaptation cost curves
Adaptation costs (percentage GDP)
2.5
2.0
India
Sub-Saharan Africa
Western Europe
1.5
Low-middle income
countries
1.0
Middle income
countries
0.5
0
United States
Japan
China
0
0.2
0.4
0.6
Adaptation (as a fraction of gross damages reduced)
Source: Based on the AD-RICE model.
The OECD supports countries and development co-operation
agencies to manage adaptation as part of development
activities. The report on National Climate Change Adaptation:
Emerging Practices in Monitoring and Evaluation (2015) identifies
four key tools that can be used to enhance learning and
assess countries’ progress in adapting to climate change.
Analysis of climate resilience in development planning
shows how countries are taking concrete steps to build
resilience to climate change. Two country case studies,
Ethiopia and Colombia, are explored in detail.
Key Publications
• Economics of Adaptation: Moving from Theory to Practice (2015)
• Climate Change Adaptation: Emerging Practices in Monitoring
The OECD is examining how economic analysis can inform
adaptation responses. The majority of OECD countries
have developed national strategies to prepare for climate
change. Analysis of progress to date has emphasised the
need to improve decision makers’ ability to understand and
use climate data to make decisions that are robust in the
context of uncertainty about the future.
© OECD 2015
and Evaluation (2015)
• Climate Resilience in Development Planning: Lessons from
Colombia and Ethiopia (2014)
• Designing and Implementing National Adaptation Planning
Lessons from OECD Countries (2013)
www.oecd.org/env/cc/adaptation.htm
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Financing action on climate change
Public and private financing for climate action needs to be
scaled up significantly in the coming years to ensure that
the goal of holding global warming below two degrees
(2°C) is achieved. Successfully tackling climate change also
requires urgent action to scale-up and shift existing public
and private investments towards low-carbon and climateresilient (LCR) infrastructure. Choices made today on the
types and location of critical infrastructure will lock in
future emission levels and the resilience of our economies
to a changing climate.
A broad range of policy interventions are needed. Given the
current strains on public finance, mobilising investment in
LCR infrastructure will require leveraging both domestic and
international private investment, including institutional
investors, who currently only allocate a small percentage of
their assets to infrastructure.
The OECD’s Policy Guidance for Investment in Clean Energy
Infrastructure is a non-prescriptive tool to help policy
makers identify ways to mobilise private investment in
clean energy infrastructure. In partnership with interested
countries, the Policy Guidance is now being applied to
specific country contexts in Clean Energy Investment Policy
Reviews currently being launched.
…In OECD countries, instititutional
investors such as pension funds and
insurance companies held USD 93
trillion in assets in 2013. Direct investment in infrastructure
project of all types accounted for only 1% of large OECD Pension
Fund asset allocation in 2013. Large pension fund allocation to
sustainable energy investment was much smaller - only 3% of
that 1% share.
did you know
conditions to scale-up private investment in LCR
infrastructure. A publication in 2015 will gather lessons
from case studies to provide guidance to policy makers.
During the 2014 meeting of the OECD Council at Ministerial
Level, Ministers asked the OECD, the International Energy
Agency (IEA), the International Transport Forum (ITF) and
the Nuclear Energy Agency (NEA) to offer Member and
Partner countries guidance on how to best align policies
for the transition to a low-carbon and climate-resilient
economy. The draft final Report will be presented during the
2015 MCM and will point to a range of areas where policies
could be aligned to facilitate the low-carbon transition.
Deliberately or not, our regulatory and fiscal policies have
been ‘wired’ around a fossil fuel world. Not only have our
economies locked-in carbon-intensive behaviours, they
The OECD has also developed a Green Investment Policy
Framework to help governments to improve enabling
© OECD 2015
OECD work on
have also locked in carbon-friendly policies. The Aligning
Policies for the Transition to a Low-Carbon Economy (APT)
project outputs will help inform discussions leading to the
COP 21 meeting in Paris (2015).
Fossil-fuel support measures
Environment
South Africa) for release in 2015 (OECD, 2015 forthcoming). In
addition, the IEA estimates the value of fossil-fuel consumption
subsidies in developing and emerging economies to be USD 548
billion (IEA, 2014).
In 2013, the OECD identified and inventoried over 550
individual support mechanisms that directly or indirectly
encourage the production or consumption of fossil fuels
across its member countries (OECD, 2013). The overall
value of these support measures was then estimated
to be between USD 55 and USD 90 billion per year for the
period 2005-11. Work is currently underway to update this
information and extend the exercise to major emerging
economies (e.g. Brazil, China, India, Indonesia, Russia, and
Key Publications
• Aligning Policies for the Transition to a Low-Carbon Economy (2015)
• Mapping Channels to Mobilise Institutional Investment in Sustainable
Energy (2015)
• Policy Guidance for Investment in Clean Energy Infrastructure: Expanding
Access to Clean Energy for Green Growth and Development (2015)
• Overcoming the Barriers to International Investment in Clean Energy
(2015)
• Inventory of Estimated Budgetary Support and Tax Expenditures for
Fossil Fuels (2015, 2013)
• IEA World Energy Outlook (2014)
did you know
© OECD 2015
…that removing fossil fuel consumption subsidies
could cut world GHG emissions by at least 10%
in 2050?
• Institutional Investors and Green Infrastrcuture Investment: Selected Case
Studies (2013)
• Effective Carbon Prices (2013)
www.oecd.org/env/cc/financing.htm
www.oecd.org/investment/green.htm
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Biodiversity
Promoting conservation and sustainable use of biodiversity and ecosystems
Economics of biodiversity
Biodiversity loss is one of the four priority areas
featured in the OECD Environmental Outlook to 2050.
OECD analysis focuses on the economic aspects
of biodiversity – enhancing understanding of how
biodiversity and ecosystems can be valued, and
how these values can be captured through policy
instruments and incentives to support biodiversity
conservation and sustainable use. The objective is to
promote policies that are environmentally effective,
economically efficient and distributionally equitable.
OECD work on biodiversity also supports the work of
the UN Convention on Biological Diversity.
Scaling up biodiversity instruments
Recent OECD work has focused on financing mechanisms
for biodiversity, including how to better engage the private
sector. This work examines lessons learned from existing
biodiversity instruments, such as payments for ecosystem
services (PES), and environmental fiscal reform, to provide
insights on how such instruments can be scaled up. In
2015-16, work will focus on the economics of marine
biodiversity, including marine protected areas.
Sources of loss in Mean Species Abundance (MSA) to 2050
MSA, (%)
100
Infr+encr+frag
Climate change
90
Nitrogen
80
Former land-use
70
Forestry
Pasture
60
2010
2030
2050
2010
2030
2050
Bioenergy
2010
2030
2050
0-50
2010
2030
2050
Given recent and projected trends in biodiversity
loss and degradation, there is an urgent need for:
greater and more ambitious use of policies including
economic instruments; more cost-effective use of
existing finance for biodiversity and indicators to
monitor progress; and mainstreaming of biodiversity
in other sectors of the economy. Work has, for example,
focused on the effective design and implementation
of biodiversity offsets.
OECD
BRIICS
RoW
World
Note: 100% MSA implies an undisturbed state.
Infr+encr+frag: Infrastructure + encrouchment + fragmentation
Source: OECD Environmental Outlook to 2050; output from IMAGE
Food crop
Remaining MSA
© OECD 2015
OECD work on
Monitoring and evaluation
A key challenge in efficiently allocating biodiversity
finance is the need to ensure appropriate design and
implementation of biodiversity instruments so as to best
achieve their intended goals. This includes the need to
develop appropriate indicators for biodiversity instruments,
and ensuring robust monitoring and reporting frameworks.
Indicators, for example, are critical to assess trends,
establish business-as-usual baselines, quantify benefits,
target biodiversity expenditures and enable the assessment
of policy interventions over time. Recent work is looking at
policy response indicators for biodiversity, for incentives
(Aichi Target 3) and for resource mobilisation (Aichi
Target 20).
Environment
The OECD also monitors external development finance
targeting biodiversity objectives through its Creditor
Reporting System using the biodiversity “Rio Marker”.
This is one of five statistical policy markers used by the
OECD Development Assistance Committee (DAC) to
monitor external development finance for environmental
purposes. In 2010-12, total bilateral biodiversity-related
aid commitments by OECD DAC members allocated about
USD 5.6 billion on average per year, representing 4.4% of
total bilateral official development assistance (ODA).
Key Publications
• The Economics of Marine Biodiversity (2016)
• Mainstreaming Biodiversity into Development (2016)
Mainstreaming biodiversity into sectoral and
development policies
The drivers of biodiversity loss and degradation often stem
from policies in other sectors and areas such as agriculture,
fisheries, forestry, and climate change. Linkages between
biodiversity and other sectoral policies are complex and
greater efforts are needed to mainstream biodiversity into
decision-making processes across the economy. In 2015-16,
OECD analysis will focus on how to enhance synergies and
address trade-offs between biodiversity and development
policy, including development co-operation.
© OECD 2015
• Biodiversity Offsets: Effective Design and Implementation (2015)
• Biodiversity Policy Response Indicators (2015)
• The Role of National Ecosystem Assessments in Influencing Policy
Making (2014)
• Scaling up Finance Mechanisms for Biodiversity (2013)
• OECD Environmental Outlook to 2050: The Consequences of
Inaction (2012)
www.oecd.org/env/resources/biodiversity.htm
did you know
…that biodiversity is projected to decline
by a further 10% by 2050 without more
ambitious policies to protect it?
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14
Principal
Significant
% of total ODA
5%
6
5%
Biodiversity-related
official development assistance
(ODA)
5
4%
4%
4
3%
3
3%
2%
2
2%
1%
1
1%
0
0%
2004-06
2007-09
2010-12
© OECD 2015
OECD work on
Water
Achieving water security
OECD Horizontal programme on water
This programme is undertaken by the Environment Policy
Committee (EPOC) in partnership with the Agriculture,
Regional Development Policy, Regulatory Policy and
Development Assistance Committees. Work in 201516 synthesises recent OECD work on water and will
develop a recommendation of the OECD Council on water
resources management. The recommendation will provide
comprehensive guidance for the reform of water policies in
OECD and partner countries.
A major horizonatal report, Water and Cities: Ensuring
Sustainable Futures (2015), focuses on the urban water
management challenge. It provides policy guidance on
sustainable urban water financing, urban-rural water
linkages, urban water governance and innovation.
The economics and governance of water
Increased levels of water security contribute to economic
growth and development. However, achieving water
security is complex and requires governments to address
and manage a range of water-related risks (scarcity, floods,
pollution, eco-system resilience). The report Water Security
© OECD 2015
Environment
Environment
for Better Lives (2013) identified innovative approaches for
dealing with water risks. It has informed work on water in
the context of adaptation to climate change, and on water
allocation mechanisms.
Water resources allocation is gaining traction as an issue.
Water is already over-allocated in a number of basins, and
the OECD Environmental Outlook to 2050 projects the situation
will become more severe, as demand for water keeps
expanding and uncertainty about future water availability
grows. The report Water Resource Allocation: Sharing Risks and
Opportunities (2015) provides guidance on the design and the
reform of water allocation regimes. It proposes a “Health
Check” to assess robustness of existing regimes.
Work in 2015-16 focuses on the management of water
quality, with an emphasis on policy instruments and on
urban water pollution. Further work is being undertaken
on sustainable management of water in agriculture, more
specifically on groundwater use in agriculture and on policy
approaches to droughts and floods.
The Global Dialogue on Water Security and Sustainable
Growth, a joint initiative by the OECD and the Global Water
Partnership, emphasises the importance of water security
for growth. It highlights stylised development pathways
that countries can follow, based on their water resources
endowment and on their investments in infrastructures
and institutions.
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16
OECD work on the critical area of financing for water
services, water management and water infrastructure
continues. A key element of this is a joint initiative with
the World Water Council on financing infrastructures for a
water-secure world.
The OECD Water Governance Initiative was set up as an
international multi-stakeholder network where delegates
from public, private and not-for-profit sectors share good
practices in support of governance in the water sector. It
has led to the development of the draft OECD Principles on
Water Governance, which will be considered by the OECD’s
Council in 2015. The governance of water regulators is also a
major focus of OECD work.
The OECD is a key implementing partner of the European
Union Water Initiative (EUWI) in ten countries of Eastern
Europe, the Caucasus and Central Asia (EECCA). Ongoing
policy reforms in the region aim at sustainable water
resources management, better water supply and sanitation
systems, and enhanced transboundary co-operation on
water basins.
from international practitioners, in the framework of
national policy dialogues on water.
Water Policy Dialogues have so far been undertaken in
Mexico, the Netherlands and Brazil. They have helped to
inform the water policy reform agenda.
Ten countries of Eastern Europe, the Caucasus and Central
Asia (EECCA, comprising of Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Moldova, Russian Federation,
Tajikistan, Turkmenistan, and Ukraine) are currently
adopting a range of policy reforms with regard to water
management under the National Policy Dialogues in
cooperation with the EU Water Initiative (see also the section
on Environment and Development in EECCA).
….that
a majority
did you
know...
...that a majority of water allocation regimes
surveyed by the OECD have an abstraction charge? However, in a
majority of cases, the abstraction charge does not reflect water scarcity.
National policy dialogues on water
The OECD supports ambitious water policy reforms in
selected countries, on demand. These combine robust
analyses of water economics and governance with insights
© OECD 2015
OECD work on
• OECD Principles on Water Governance (2015)
5 000
• Policies to Manage Floods and Droughts in Agriculture (2015)
4 000
Future Challenges (2014)
• Climate Change, Water and Agriculture: Toward Resilient Systems
(2014)
• Water Governance in Turnisia, and in Jordan: Overcoming
the Challenges to Private Sector Participation (2014)
• Water Policy Reforms in Eastern Europe, the Caucasus and
Central Asia: Achievements of the European Union
Water Initiative since 2006 (2014)
• Water Security for Better Lives (2013)
• Water and Climate Change Adaptation: Policies
to Navigate Unchartered Waters (2013)
• Meeting the Water Reform Challenge (2012)
• Managing Water for All: An OECD Perspective
on Pricing and Financing (2009)
www.oecd.org/water
© OECD 2015
2 000
Domestic
1 000
0
Irrigation
OECD
BRIICS
RoW
2050
• Water Governance in the Netherlands: Fit for
Livestock
2000
Resilient Systems (2014)
3 000
2050
• Climate Change, Water and Agriculture: Toward
Manufacturing
2000
• Groundwater Use in Agriculture in OECD countries (2015)
Electricity
2050
Opportunities (2015)
Km3
6 000
2000
• Water Resources Allocation: Sharing Risks and
Global water demand
2050
• Water and Cities: Ensuring Sustainable Futures (2015)
2000
Key Publications
Environment
World
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Nitrogen Management
Developing a framework for nitrogen management policies
Addressing human impacts on the nitrogen cycle
In its unreactive form, nitrogen is abundant, making up
nearly 80% of the earth’s atmosphere. But all known forms
of life need nitrogen in a reactive (fixed) form that is bonded
to carbon, hydrogen, or oxygen, most often as organic
nitrogen compounds (such as amino acids), ammonium, or
nitrate. For example, reactive nitrogen is an essential input
for plants to grow and thus to food production.
Since the 1950s and as part of efforts to achieve food
and energy security, reactive nitrogen production has
greatly increased, causing unprecedented changes to the
global nitrogen cycle. This is largely due to the increased
production of nitrogen fertiliser, by far the largest human
source of reactive nitrogen. During the twentieth century,
mankind has also produced increasingly other forms of
reactive nitrogen as a by-product of combusting fossil fuels
and as a component of wastewater.
The abundance of anthropogenic sources of nitrogen
in terrestrial, aquatic and atmospheric ecosystems has
adverse effects on public health and the environment. For
example, ocean dead zones are rapidly increasing because
of excess nutrients (and warming waters). There are more
than 400 ocean dead zones in the world seas today (from 20
in the 1950s). And the outlook is grim, as rivers discharges
of nutrients into the sea are projected to continue increasing
(see Figure on next page).
The OECD project on the human impacts on the nitrogen
cycle, supported by the OECD Nitrogen Expert Group, is
assessing the use of different policy instruments to manage
the unwanted release of nitrogen.
The nitrogen project aims to take a holistic view of nitrogen
policies across a wide range of emitting sectors, including
agriculture, energy, industry, transport and households.
Work in 2014 provided a conceptual framework for the
analysis of nitrogen policies and surveyed country policies.
Based on country case studies, 2015-16 will provide in-depth
analysis of instruments and instrument mixes to address
atmospheric pollution (e.g. smog and ground level ozone)
and water pollution (e.g. eutrophication), and review and
assess the coherence of nitrogen-specific policies with
broader agricultural, wastewater and transport aims.
© OECD 2015
OECD work on
Environment
Work is also underway to monitor economy-wide nitrogen flows
and develop nitrogen indicators for use in green growth studies
and in policy evaluation.
Key Publication
• Policy Instruments to Manage the Unwanted Release of Nitrogen into
Ecosystems (2016)
River discharges of nitrogen into the sea
1950
1970
2000
2030
2050
Millions of tonnes of N per year
16
14
12
10
8
6
4
2
0
Arctic Ocean
Atlantic Ocean
Indian Ocean
Medit + Black Sea
Pacific Ocean
Source: OECD (2012), “Water”, in OECD Environmental Outlook to 2050: The Consequences of Inaction,
OECD Publishing, DOI: http://dx.doi.org/10.1787/env_outlook-2012-8-en.
© OECD 2015
© OECD 2015
19
20
Environmental Policies and Economic Outcomes
Ongoing empirical work sheds light on the economic effects of environmental policies
The effects of environmental policies on economic
performance are a subject of heated debate. On the one
hand, environmental policies have been argued to burden
economic activity, as they raise costs without increasing
output and restrict the set of production technologies and
outputs. On the other hand, the Porter Hypothesis claims
that well-designed environmental policies can encourage
innovation, gains in efficiency and profitability, which can
outweigh the costs of compliance. Empirical investigations
so far have been constrained by the lack of internationally
comparable measures of environmental policies.
The stringency of environmental policies has been
increasing across the OECD1
Indicator value - 2012
5
Indicator value - 1990/1995
OECD average - 2012
More stringent
4
3
2
1
0
Joint work between the OECD Environment Directorate
and the Economics Department on Environmental Policies
and Productivity Growth has laid the ground for empirical
analyses of the economic effects of environmental policies.
It provided quantitative proxies measuring the stringency
and competition-friendliness of environmental policies. In
particular, the newly-developed indicator of Environmental
Policy Stringency (EPS) provided a comparable, crosscountry and over-time measure of the aggregate stringency
of selected environmental policy instruments (see Figure).
The new EPS indicator was used in empirical analysis to
gauge the effects on multifactor productivity growth – at
the macroeconomic, industry and firm levels. Importantly,
effects of tightening environmental policies were found
to be relatively short-lasting with no evidence of harm to
overall productivity growth. They did not depend on how
stringent the policies were already, but were found to
strongly depend on the firms’ (and industries’) technological
© OECD 2015
OECD work on
advancement. Moreover, the work provided some evidence
that flexible, market-based instruments, such as taxes, are
more supportive to productivity growth.
Environment
The BEEP indicator and measures of environmental policy
stringency
OECD EPS (de jure, 2012)
http://oe.cd/oq
5
DNK
More stringent environmental policies
Importantly, some aspects of environmental policy design
may create additional administrative burdens or advantages
to existing companies and industries. The work provided
cross-country evidence that stringent environmental policies
can be designed in ways that are more (or less) friendly to new
firm entry and competition - as captured by the Burdens on
the Economy due to Environmental Policies (BEEP) indicator
(see Figure). International evidence shows that such aspects
can and should be minimised, in particular as achieving both
environmental and economic objectives needs new, cleaner
ideas, technologies and business models to develop.
NLD
4
NOR
CHE
AUT
SWE
DEU
CAN
POL
JPN
KOR
3
ESP
USA
FRA
GBR
AUS
BEL
2
IRL
HUN
PRT
GRC
ITA
1
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Total BEEP indicator
Policies more burdensome to entry and competition
WEF EPS (perceived , 2012)
7
Note: The top panel compares the Environmental Policy Stringency indicator (see
Botta and Kozluk, 2014) and the Burdens on the Economy due to Environmental Policies
Indicator (Kozluk, 2014). The bottom panel compares the World Economic Forum
Executive Opinion Survey responses on how stringent is environmental regulation in
More stringent environmental policies
AUT
NLD
JPN
5
SVK
NZL
ISL
PRT
SVN
HUN
POL
ZAF
KOR
SWE
NOR
BEL
AUS
IRL
EST
USA
CZE
FRA
CAN
GBR
DEU
DNK
CHE
6
ISR
CHL
ESP
ITA
HRV
MEX
4
GRC
TUR
a given country perceived to be. Scatterplots represent the most recent values: 2012
for environmental policy stringency, beginning 2013 for BEEP.
3
0.5
1
1.5
2
2.5
Policies more burdensome to entry and
competition
© OECD 2015
3
3.5
4
4.5
Total BEEP indicator
21
22
Better understanding of how environmental policies affect
business behaviour – such as decisions to engage in investment
(locally or internationally), innovation, trade or to relocate – is
fundamental for developing more effective and less costly
green growth policies and smarter regulations. In 2015-16, work
will focus on further data collection to improve and extend
the Environmental Policy Stringency indicator to allow deeper
and broader empirical analysis. Firm and industry level data
will also be explored.
Empirical analysis will also be extended to other determinants
of GDP per capita across domestic and international
dimensions.
Key Publications
• Economic Policy Reform 2015: Going for Growth (2015)
• Do Environmental Policies Matter for Productivity Growth? Insights
from new Cross-Country Measures of Environmental Policies (2014)
• Empirical Evidence on the Effects of Environmental Policy
Stringency on Productivity Growth (2014)
• Measuring Environmental Policy Stringency in OECD Countries –
A Composite Index Approach (2014)
• The Indicator of Economic Burdens of Environmental Policy Design
– Results from the OECD Questionnaire (2014)
• Environmental Policies and Productivity Growth:
A Critical Review of Empirical Findings (2014)
www.oecd.org/environment/do-environmental-policies-matter-for- productivity-growth.htm
© OECD 2015
OECD work on
Environment
Environmental Policy Tools and Evaluation
Ensuring policies are economically efficient and environmentally effective
Economic instruments and policy mixes
The OECD undertakes fact-based analysis of policy
instruments and mixes of instruments to help governments
design and implement environmentally effective and
economically efficient policies. The OECD’s focus on policy
instruments such as taxes, tradable permits and voluntary
approaches, as well as regulation, makes an important
contribution to integrating environmental protection and
economic growth.
The OECD is developing in-depth and detailed analyses
of the taxation of energy use, as well as support to fossil
fuels extraction or use in member and partner countries.
This information will be updated and expanded further in
2015-16 and will be extended with analytical work on
reform.
A project on effective carbon prices estimated the costs to
society per tonne of CO2 eq abated using different policy
instruments in selected sectors. It showed clearly that these
costs were lower for taxes and emission trading systems
than for other instrument categories.
© OECD 2015
Policy evaluation
Recent work on policy evaluation has focused on an
analysis of the costs to society of outdoor air pollution. It
found that in 2010 these costs amounted to USD 1.7 trillion
for OECD countries. For China, the costs were estimated at
USD 1.3 trillion, and for India, USD 0.5 trillion.
Work in 2015-16 focuses on developing more refined
methods for assessing the morbidity-related costs of air
pollution and other environmental pressures.
Analyses have been made of the income distribution impacts
of different categories of energy taxes. In 2015-16, this work
will be deepened further, with analyses of approaches to
address negative impacts of energy and water pricing.
23
24
OECD work on environmental compliance assurance has
reviewed how governments promote, monitor and enforce
compliance with environmental laws and regulations.
Further work in 2015-16 will focus on performance
indicators and mechanisms to promote national coherence
in environmental enforcement.
Key Publications
• Cost-Benefit Analyses and the Environment: Recent
Developments (2016)
• The Cost of Air Pollution: Health Impacts of Road Transport (2014)
• Effective Carbon Prices (2013)
www.oecd.org/environment/tools-evaluation
www.oecd.org/env/taxes
Tax rates per litre of unleaded petrol and diesel in selected
OECD member countries
0.9
0.8
Petrol
Diesel
0.7
EUR per litre
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Source: OECD database on environmental policy instruments
www.oecd.org/env/policies/vsl
Spatial Planning Instruments and the Enviroment
(SPINE)
In 2015-16, OECD work focuses on the evaluation of the
effectiveness of spatial planning instruments in achieving
environmental and economic objectives. This evaluation
relies on empirical analysis of the identification of the effects
of different forms of urban structure on human exposure
to air pollutants; the effectiveness of spatial policies in
containing urban sprawl and in mitigating the risks of
natural hazards and preventing their consequences; and
the impact of open space conservation policies on housing
and land prices, development density, and local government
budgets.
The development of an operational framework describing
land use patterns and their environmental and economic
implications, and an inventory and typology of spatial
planning systems and land use policy instruments used
across OECD countries, will pave the way for empirical
analysis.
© OECD 2015
OECD work on
Environment
Households and the environment
OECD work provides new insights to better understand
households’ environmental behaviour and how policies
affect their decisions in the real world. A periodic survey
on Environmental Policy and Individual Behaviour Change
(EPIC) of more than 10 000 respondents across a number of
countries provides empirical evidence to improve the design
of environmental policies in residential energy use, water
consumption, transport, organic food, and waste generation
and recycling.
…that households’ exposure to
environmental taxes can enhance public
support for them: households charged by weight or volume of
waste generated express greater support for such systems than
those not facing unit based waste charges?
did you know
Key Publications
A report on the survey published in 2014 analysed the
relationship between public policy, household attitudes
and norms, and decisions with significant environmental
consequences. For example, public opinion can impose
significant constraints on the use of environmental taxes
and financial incentives. In 2015-16, empirical work in
this area focuses on the analysis of the spillover effects of
electricity pricing policies on household green investment,
and the analysis of the impact of urban structure on
individual life satisfaction.
© OECD 2015
• Greening Household Behaviour: Overview from the 2011 Survey Revised edition (2014)
• Greening Household Behaviour: A Review for Policy Makers (2014)
• Greening Household Behaviour: Energy, Food, Transport, Waste,
Water (2014)
www.oecd.org/env/consumption-innovation/households.htm
www.oecd.org/env/consumption-innovation/behaviour.htm
25
26
Resource Productivity and Waste
Reducing, reusing and recycling materials and resources
Sustainable materials management and waste
The OECD is developing policies that incentivise and
encourage waste prevention, minimisation and recycling.
Current work focuses on promoting Sustainable Materials
Management (SMM) in order to limit waste generation
in the first place. Using materials and resources more
efficiently requires more integrated approaches towards the
environmental impacts associated with their extraction,
transportation and use, as well as waste disposal.
In 2015-16, the OECD is focusing on practical guidance for
policy makers on how to implement SMM policies, based
on material- and products‑specific case studies and with a
focus on specific policy instruments. A report on extended
producer responsibility will be released and an inventory of
waste prevention measures across the OECD countries will be
developed.
Key Publication
• Supplementary Guidance on Extended Producer Responsibility (2015)
Material flows accounting
The OECD has established a knowledge base on material flows
and resource productivity, and has made advances in the
development of common measures systems and indicators.
Municipal Waste Generation, 2012
Kg/cap
800
700
600
…that at least 4% of annual GHG
did you know emissions could be mitigated if waste
management practices were improved, such as through more
material recovery?
500
400
300
200
100
0
Source: OECD Key Environmental Indicators (2014)
© OECD 2015
OECD work on
Key Publications
• Material Resources, Productivity and the Environment (2015)
• Sustainable Materials Management: Making Better Use of Resources (2012)
• Guidance Manual for the Control of Transboundary Movement
of Recoverable Wastes (2009)
• Measuring Material Flows and Resource Productivity (2008)
www.oecd.org/env/waste
www.oecd.org/env/indicators-modelling-outlooks/resourceefficiency.htm
© OECD 2015
Environment
27
28
Sectoral Policies: Transport, Agriculture
Integrating environmental concerns into sector policies
Transport
there is a need to shift investment towards sustainable
transport infrastructure. The OECD is applying the Green
Investment Policy Framework to the transport sector (see
also section on Financing Action on Climate Change).
Transport underpins economic and social development,
allowing more efficient allocation of resources and increased
mobility for people. Yet, there are challenges related to
the environmental impacts of transport and globalisation
can aggravate these challenges. A study published in 2014
indicates that the cost to society of air pollution caused by
road transport in OECD countries could be in the order of
USD 0.9 trillion per year.
Key Publications
• The Cost of Air Pollution: Health Impacts of Road Transport (2014)
• The Diesel Differential: Differences in the Tax Treatment of Gasoline
and Diesel for Road Use (2014)
• Personal Tax Treatment of Company Cars and Commuting
These costs are being increased by an ongoing shift from
petrol to diesel vehicles. A working paper issued in 2014
discusses the rationale for the tax preference given to diesel
vis-à-vis petrol in most OECD countries.
Two other working papers discuss the income tax treatment
of the benefits to employees of having a company-owned
car at their disposal and analyse their fiscal and social costs.
Expenses: Estimating the Fiscal and Environmental Costs (2014)
• Environmental and Related Social Costs of the Tax Treatment of
Company Cars and Commuting Expenses (2014)
www.oecd.org/environment/greening-transport
did you know
…that ships are responsible for 2-4% of global
man-made CO2 emissions and 15% of other air pollutants?
Transport is the second largest contributor to global
greenhouse gas emissions. To avoid lock-in into carbonintensive and climate-vulnerable transport infrastructure,
© OECD 2015
OECD work on
Agriculture
The Environment Directorate contributes to work led by the
Trade and Agriculture Directorate to strengthen policies to
reduce the negative impacts of agriculture on the environment,
to reinforce the positive impacts, and to develop and collect agrienvironmental indicators. (see also the section on Water).
In 2015-16, the OECD agri-environmental work will focus on
climate change in agriculture, notably via the analysis of synergies
and trade-offs between adaptation, mitigation and productivity,
the implications of future water risk hotspots, land-use planning
and ecosystem services, monitoring progress and assessing the
role of the private sector towards green growth in agriculture.
Key Publications
• Fostering Green Growth in Agriculture: The Role of Training, Advisory
Services and Extension Initiatives (2015)
• Public Goods and Externalities: Agri-environmental Measures in Selected
OECD Countries (2015)
• The Role of Public Policies in Promoting Adaptation (2015)
• Green Growth Indicators for Agriculture: A Preliminary Assessment (2014)
• Modelling Adaptation to Climate Change in Agriculture (2014)
• Environmental Co-benefits and Stacking in Environmental Markets (2014)
www.oecd.org/agriculture/sustainable-agriculture
© OECD 2015
Environment
29
30
Safety of Chemicals, Pesticides,
Biotechnology & Nanomaterials
Protecting human health and the environment
Chemical safety
The chemicals industry is one of the world’s major economic
sectors. The products of the chemical industry are worth
about EUR 3.8 trillion annually.
The OECD Environment, Health and Safety (EHS) Programme
aims to foster international co-operation to ensure the
safety of chemicals and chemical products like pesticides,
biocides, manufactured nanomaterials, and the products of
modern biotechnology. It also aims to avoid barriers to trade
at the same time.
Mutual Acceptance of Data (MAD)
The OECD Council Acts on the Mutual Acceptance of Data
for the assessment of chemicals (MAD) are international
agreements, which set the policies and provide the
instruments that governments and industry need to test the
safety of chemicals and chemical products. OECD countries
must accept safety test data which has been developed
in other countries using the OECD Test Guidelines and
following the OECD Principles of Good Laboratory Practice.
Non-tariff barriers to trade are minimised by harmonised
policies and instruments, and duplicative testing is
avoided, saving governments and industry time and money.
Increasingly non-OECD economies are joining the MAD
system, with Argentina, Brazil, India, Malaysia, South
Africa and Singapore as full adherents; Thailand provisional
adherents; and others expected to join soon.
Sharing the regulatory burden for pesticides and
industrial chemicals
All OECD countries regulate chemicals, pesticides and
products of modern biotechnology. By using the same
methodologies for determining the safety of these products,
it is possible for countries and industry to share the burden
of testing and even evaluation in some cases. Countries
work together in the OECD to share the work load required
for registering pesticides and biocides and for notifying,
registering or evaluating industrial chemicals.
did you know
…that by working together through the OECD,
governments and industry save over EUR 150
million annually?
© OECD 2015
OECD work on
Environment
Safety of manufactured nanomaterials
OECD countries have been addressing the human health
and environmental safety implications of nanomaterials
since 2006. In 2013, the OECD Council recommended that its
Member countries apply existing international and national
chemical regulatory framework to manage the risks
associated with manufactured nanomaterials. Amongst
other things, this Recommendation clears the way for
nanomaterials to become subject to the Mutual Acceptance
of Data. To this end, work is continuing to evaluate whether
existing test methods for assessing the safety of chemicals
are suitable for nanomaterials. A number of projects
are underway to develop test guidelines appropriate for
nanomaterials.
Co-operative testing of selected nanomaterials
OECD and non-OECD governments have been working with
industry, to pool expertise and funding to test the human health
and environmental safety effects of 11 nanomaterials, which
are currently in commerce. This testing work was completed
recently and the data will be made publicly available.
New and more efficient tools for getting hazard
information
Much information on the hazards associated with specific
chemicals is developed through tests in the laboratory.
However, other promising approaches such as computer
simulations
called
(quantitative)
structure-activity
relationships, known as (Q)SARs, have the potential to
provide information on the hazards of chemicals. Such
approaches can reduce the time and cost of testing, as well
as the need for animal testing. Through OECD, member
countries are looking at how such approaches can be used
more routinely in a regulatory context.
© OECD 2015
Work is also underway at the OECD to investigate how
(Q)SAR approaches can be combined with results from
toxicogenomics (the study of the response of a genome to
hazardous chemicals) and from high-throughput screening
in vitro assays (that can be applied rapidly to thousands
of chemicals) in an integrated way to predict the effects of
chemicals in animals and humans.
31
32
Safety of bio-tech products
The majority of OECD countries and many others have a
system of regulatory oversight in place to assess the safety
of products of modern biotechnology. The most common
products of this type are genetically engineered crop plants
used in agriculture. The OECD works to ensure that the
information used in safety assessment, and the methods
used to collect that information, are shared amongst
countries. Recent focus has been on major agricultural
commodities such as soy bean, maize and cotton. Today,
there is a greater focus on crops important in the tropics
such as cassava and papaya.
Preventing major chemical accidents
The OECD Programme on Chemical Accidents addresses
a subject that concerns everyone who uses or handles
hazardous chemicals, works in a chemical plant, or lives
near one. This programme helps public authorities, industry,
labour and other interested parties to prevent chemical
accidents and to respond appropriately if one occurs. The
major output of the programme is the Guiding Principles
for Chemical Accident Prevention, Preparedness and
Response which are continuously updated. These principles
provide advice to public authorities, industry, employees
and their representatives as well as members of the public
potentially affected in the event of an accident. These
Guiding Principles are complemented by a series of safety
performance indicators, which serve as a guide for key
stakeholders including public authorities and industry, to
determine if their implementation of the Guiding Principles
has led to improved chemical safety. More recently, the
OECD has published Corporate Governance for Process
Safety: Guidance for senior leaders in high hazard industry
to establish best practices for senior decision makers who
have the authority to influence the direction and culture of
their organisation.
Key Publications
• OECD Guidelines for the Testing of Chemicals (series)
• Safety Assessment of Foods and Feeds Derived from Transgenic Crops
(2015)
• Guiding Principles for Chemical Accident Prevention, Preparedness and
Response (2015)
• Cutting Costs in Chemicals Management: How OECD Helps
Governments and Industry (2010)
• Safety Assessment of Transgenic Organisms: Volumes 1-4 (2010)
• Good Laboratory Practice: OECD Principles and Guidance for
Compliance Monitoring (2005)
www.oecd.org/chemicalsafety
© OECD 2015
OECD work on
Environment
Environment in the Global Economy
Making development and environment compatible and mutually supportive
Environment and development
Economic growth and development are intricately linked to
the sound management of environmental resources. It is the
poorest who rely most on environmental resources and are
most affected by their degradation. Continuing collaboration
between the Environment Policy Committee (EPOC) and the
Development Assistance Committee (DAC) aims to support
integration of environment and development issues. The
main focus on climate change and on capacity development
for environmental management.
The Policy Guidance on Integrating Adaptation
into Development Co-operation helps development
co-operation agencies and developing countries to
integrate adaptation within development activities and to
“climate-proof” development. OECD analysis also examines
the role of monitoring and evaluation (M&E) in ensuring
that adaptation interventions are effective, efficient and
equitable. Current work explores the methodological
challenges for adaptation M&E and building blocks
for measuring progress at the national level. Work for
2015-16 focuses on risk-transfer mechanisms and urban
adaptation.
© OECD 2015
Weak environmental governance and capacity constraints
affecting sustainable management of natural resources in
developing countries can undermine the achievement of key
development and green growth objectives. The OECD report
Greening Development: Enhancing Capacity for Environmental
Management and Governance offers guidance on how to
enhance the capacities of key stakeholders in both developing
countries and in development co-operation agencies to
integrate the environment into national planning and
budgetary processes. This has recently been complemented
with the development of an online training course.
33
external development finance to developing countries
reached USD 37 billion in 2013 (as recorded in
OECD34
DAC statistics).
only, USD 9.6 billion (26%) adaptation only, and USD
4.8 billion (13%) consists of activities designed to
address both adaptation and mitigation.
CHART 1. Climate-related development finance in 2013
Commitments, USD billion
Climate-related Development Finance in 2013
13 bn
ADA
PT
Bilateral principal
Bilateral significant
MULTILATERAL
BOT
H
13%
26%
BILATERAL
TOTAL
37 BN
ION
AT
10 bn
14 bn
61%
MITIGAT
ION
GREEN Programme). These are done through robust policy
analysis, diffusion and adaptation of good international
practices, capacity development, policy dialogue at national
and regional levels, and pilot application of policy tools. The
EAP Task Force helps EECCA countries to make the best
use of available finance and enhance dialogue with private
sector and donors. It also contributes to the “Environment
for Europe” process.
Trade and environment
The Environment Directorate works with the Trade and
Agriculture Directorate to better understand interactions
between environment policy and international trade.
Note: Aggregate figures reflect bilateral ODA and OOF flows from members of the OECD DAC and the UAE, identified as targeting climate
One focus has been trade in environmental goods and
change as either a principal or significant objective based on the “Rio markers”, and climate-related multilateral flows from seven MDBs
services, including a 2014 report indicating that stringent
Note: Aggregate figures reflect bilateral ODA and OOF flows from members of the OECD
and the GEF.
DAC and the UAE, identified as targeting climate change as either a principal or significant
environmental regulations can lead to increased trade
objective based on the “Rio markers”, and climate-related multilateral flows from seven
For the first time,
the OECD’s Development Assistance Committee (DAC) statistics capture an integrated
in environment goods. In 2012, a report on illegal trade
MDBs and the GEF.
picture of both bilateral and multilateral climate-related external development finance flows. This increases
in anenvironmentally senstive goods addressed data and
transparency through the collection and publication of detailed activity-level information. In addition, this provides
improved recipient-level
perspective, avoids
and supports
consistency and robustness through the
Environment
and double-counting
development
in EECCA
use of a statistical system with standardised definitions and bases of measurement.
The OECD Environment Directorate serves as the
Secretariat
ofthan
thetheTask
Force
for
the
Implementation
of development
Financing climate change
is broader
USD 100
billion
goal:
accounting
for climate-related
finance is broader than
is reported as climate
finance
in National Communications
and Biennial
thewhat
Environmental
Action
Programme
(EAP Task Force)
in Reports to
the UNFCCC. Many OECD DAC members, when reporting towards their quantified UNFCCC goals, draw on their
Eastern
Europe,
the Caucasus
and
Asiaof (EECCA).
climate-related development
finance,
as reported
to the DAC, but
onlyCentral
count a share
this (see box page 8 for
further details).
Projects identified for 2015-16 continue to be organised
1
around two main themes: strengthening water management
(implemented mainly under the EU Water Initiative
framework); and market incentives and policy reforms
for greening growth (principally in the context of the EaP
© OECD 2015
OECD work on
policy challenges related to illegal trade in wildlife, fish,
waste, chemicals and timber. Recent work has focused
on environmental labelling schemes, providing guidance
to governments on how to respond to multiplication of
labelling schemes.
Environment
Key Publications
• The Potential Benefits of Transboundary Co-operation between
Georgia and Azerbaijan in the Kura River Basin (2015)
• Sustainable Business Models for Water Supply and Sanitation in
Small Towns and Rural Areas in Kazakhstan (2015)
In 2015-16, new work focuses on trade and climate change,
looking at how physical impacts due to climate change
may effect trade patterns and also examining interaction
between the international negotiation processes in trade
and in climate change. Work will also continue to track and
evaluate the use of environmental provisions in regional
free trade agreements.
Co-operation with key emerging economies
Key Partners (Brazil, China, India, Indonesia and South
Africa) are invited to co-operate in all areas of OECD work
on environment, in particular on green growth, climate
change, water, biodiversity, environmental information,
environmental indicators and policy instruments.
Environmental Performance Reviews (EPR) of South Africa
and Colombia were published in 2013 and 2014 respectively,
and Brazil is currently being reviewed. A broader group
of partner countries is invited to Global Forums on
Environment on various environmental issues, providing a
regular framework to substantiate the dialogue with nonOECD countries. Global Forums in 2015-16 will focus on
issues including innovation, climate change and CIRCLE.
© OECD 2015
• Inventory of Energy Subsidies in the EU Eastern Partnership
Countries (2015)
• Creating Market Incentives for Greener Products: Policy Manual
for the EU Eastern Partnership Countries (2014)
• Greening Development: Enhancing Capacity for Environmental
Management and Governance (2012)
www.oecd.org/env/outreach/eap-tf.htm
…that in 2014 a group of 14 economies,
including many OECD members, have
begun negotiations on a plurilateral agreement to liberalise trade in
environmental goods? Environmental goods include renewable energy
technologies, water and waste treatment products, air pollution
control technologies, and environmental equipment.
did you know
35
36
Green Growth
Aligning economic and environmental goals
The OECD launched its Green Growth Strategy at the
Ministerial Council Meeting in May 2011. It responded to a
mandate given by 39 countries, when they signed the “OECD
Green Growth Declaration” in 2009, comitting to “strengthen
their efforts to pursue green growth strategies as part of
their responses to the crisis and beyond, acknowledging
that green and growth can go hand in hand”.
The key message of the Green
Growth Strategy is that the
environment and the economy
can no longer be considered
in
isolat ion,
but
t hat
environmental considerations
need to be an inherent part of
future economic policymaking
and development planning.
Importantly, the Strategy
argued that green growth
cannot be a mere add-on to the mainstream reform agenda,
but requires a reassessment of growth policies and priorities
to ensure that their design and implementation better take
into account environmental impacts.
If implemented in structural reforms, green growth policies
can unlock new growth opportunities by various channels.
Well-designed green growth policies will ensure that market
participants feel the social costs of using environmental
assets, thus leading to a more efficient use of resources
and natural assets. Better price signals for environmental
externalities would also strengthen innovation and foster
demand for new, environmentally more efficient goods and
services, creating new markets and hence the potential for
new job opportunities.
Furthermore, stable green growth policies will enhance
investor confidence through greater predictability in how
governments deal with major environmental issues, and
green fiscal reform can support fiscal consolidation and
growth, as revenues from pricing externalities rise and
harmful subsidies are phased out.
Monitoring progress
Green growth policies need to be founded on a good
knowledge of environmental developments, the factors that
affect growth and their linkages with well-being.
© OECD 2015
OECD work on
To monitor progress and evaluate results, the OECD
developed a measurement framework and a set of 26
indicators that capture the main features of green
growth: the environmental and resource productivity of
the economy, the natural asset base, the environmental
dimension of quality of life, and the economic opportunities
provided by a greener growth. To facilitate communication
with the public and policy makers, a few headline
indicators were selected. The work is part of the OECD’s
broader agenda on measuring progress and well-being. A
selection of updated indicators, illustrating the progress
made by OECD countries since the 1990s, is available in
Green Growth Indicators 2014.
Work is underway to improve the indicators, develop the
statistical basis and implement environmental accounting
in line with the SEEA. The focus is on headline indicators,
particularly on natural resources and sub-soil assets,
environmentally adjusted productivity growth, carbon and
material productivity, land cover, and population exposure
to air pollution.
Countries like the Slovak Republic, Slovenia, the Czech
Republic, Korea, Mexico, Germany and the Netherlands,
have applied the OECD measurement framework to assess
their economy in terms of green growth. In a joint project
with UNIDO, Colombia, Costa Rica, Ecuador, Guatemala,
© OECD 2015
Environment
Paraguay and Peru are applying the indicators to identify
key challenges and improve the choice and design of policy
instruments.
The OECD also facilitates the exchange of experience and
good practice on developing and applying a green growth
measurement framework in the countries of Eastern Europe,
the Caucasus and Central Asia (EECCA). This includes
activities under the OECD Environmental Action Programme
Task Force in EECCA (EAP Task Force), and the EaP GREEN
project funded by the European Union. Ongoing projects in
the region raise awareness about the benefits of using green
growth indicators, identify good practices, and implement
pilot projects. In March 2015, an EECCA regional workshop
showcased how synergies among the fields of environment,
green growth/economy and sustainable development
could be exploited in the view of developing effective
national approaches towards measuring green growth.
www.oecd.org/env/outreach/eap-tf.htm
Tailoring green growth strategies to individual
countries and regions
The OECD is supporting countries in their efforts to design
and implement strategies for greener and more inclusive
growth, through its core advice in country-specific and
multilateral surveillance, including Economic Surveys,
Environmental Performance Reviews, Investment Policy
37
38
Reviews, Reviews of Innovation Policy, the Green Cities
programme and Going for Growth. Through these, the OECD
is providing guidance tailored to the needs of individual
countries.
The OECD is working with other international organisations
and partner countries to examine how green growth can be
applied in the specific context of developing countries. The
OECD report Putting Green Growth at the Heart of Development
provides a platform for partner countries to indicate their
interest in collaborating with the OECD to shape a green
agenda that is feasible and relevant for them and addresses
the aspirations of their citizens.
The report Towards Green Growth in Southeast Asia was launched
in November 2014 at the Asia Low Emissions Development
Strategies Forum in Indonesia. Southeast Asia’s booming
economy offers tremendous growth potential, but also
large and interlinked economic, social and environmental
challenges. The region’s current growth model is based in
large part on natural resource exploitation, exacerbating
these challenges. Carried out in consultation with officials
and researchers from across the region, this report provides
evidence that, with the right policies and institutions,
Southeast Asia can pursue green growth and thus sustain
the natural capital and environmental services, including a
stable climate, on which prosperity depends.
www.oecd.org/greengrowth
© OECD 2015
OECD work on
The “Greening Economies in the European Union’s
Eastern Neighbourhood” (EaP GREEN) programme is
being implemented by the OECD in co-operation with
UNECE, UNEP, and UNIDO to assist the European Union’s
Eastern Partnership (EaP) countries (Armenia, Azerbaijan,
Belarus, Georgia, Moldova and Ukraine) to move towards
a green economy by decoupling economic growth from
environmental degradation and resource depletion.
The programme responds to commitments made by
countries, the European Union and international partners
in several international forums: the Warsaw Eastern
Partnership Summit, the Seventh “Environment for
Europe” Ministerial Conference, and the Rio+20 Summit.
www.green-economies-eap.org
© OECD 2015
Environment
Green growth is also being integrated in OECD’s sector- and
issue-specific work to cover key areas such as energy (jointly
with the IEA), food and agriculture, innovation, green
investment, green business models, green jobs, biodiversity,
water, rural development and others.
39
40
The Green Growth and Sustainable Development
Forum at the OECD (GG-SD Forum)
The GG-SD Forum is an initiative established by the OECD
as a vehicle for facilitating dialogue among its Committee
experts on cross-cutting green growth and sustainable
development issues, to build on and complement the
extensive work already underway in individual Committees
and to maximise synergies across them. The GG-SD Forums
operate as a series of annual conferences or workshops,
focusing each year on a different issue of relevance to more
than one OECD Committee.
The 4th Green Growth and Sustainable Development Forum,
on “Enabling the Next Industrial Revolution: The Role of
Systems Thinking and Innovation Policy in Promoting Green
Growth” will be held in December 2015.
The theme of the 5th Green Growth and Sustainable
Development Forum will cover “Spatial Planning, Landuse and Urban Green Growth” and will be held in 2016.
www.oecd.org/greengrowth/ggsd-forum.htm
The Green Growth Knowledge Platform (GGKP)
The OECD has joined forces with the Global Green Growth
Institute, UNEP and the World Bank to establish the GGKP.
Launched in January 2012, the GGKP is an international
knowledge-sharing platform that identifies and addresses
major knowledge gaps in green growth/green economy
theory and practice. It aims to provide practitioners
and policymakers with better tools to foster economic
growth and implement sustainable development. The
GGKP held its 3rd Annual Conference in January 2015
on the theme “Fiscal Policies and the Green Economies
Transition: Generating Knowledge-Creating Impact.”
www.greengrowthknowledge.org
© OECD 2015
OECD work on
Environment
Key Publications
• Towards Green Growth? Tracking Progress (2015)
• Green Growth Indicators 2014 (2014)
• Tools for Delivering Green Growth (PDF) (2011)
• Towards Green Growth: A Summary for Policy Makers (PDF) (2011)
• Towards Green Growth: free version (2011)
• Towards Green Growth – Monitoring Progress: OECD Indicators (2011)
Green growth studies and papers:
The Green Growth Studies series aims to provide in-depth
reviews of the green growth issues faced by different
sectors. The OECD Green Growth Papers complement
the OECD Green Growth Studies series, and aim to
stimulate discussion and analysis on specific topics and
obtain feedback from interested audiences. www.oecd.org/greengrowth
© OECD 2015
41
42
The Committee Structures
The Environment Policy Committee (EPOC) implements the OECD’s Environment Programme. Established in 1971, EPOC consists
of delegates from capitals and meets 1-2 times per year. The Committee holds meetings at the Ministerial level approximately
every four years. The next meeting is envisaged for 2016.
EPOC oversees work on: country reviews, indicators and outlooks, climate change, natural resource management, policy tools
and evaluation, environment and development, and resource efficiency and waste, supported by EPOC’s seven Working Parties.
EPOC also formally co-operates with other OECD Committees, including through Joint Working Parties on Trade and Environment
and on Agriculture and Environment, as well as Joint Meetings of Experts on Tax and Environment and Joint Task Teams on
environment and development issues. The committee also works with other OECD committees to ensure consistency of the
messages as they pertain to environment as well as ensuring horizontal links with other work in the OECD. The Chemicals
Committee, like EPOC, reports directly to the OECD Council. EPOC’s Working Party on Chemicals, Pesticides and Biotechnology and
the Chemicals Committee together form the Joint Meeting which oversees the Environment, Health and Safety (EHS) Programme.
EPOC is a major partner in two horizontal programmes at the OECD, one on Green Growth and the other on Water.
The OECD Environment Directorate and the International Energy Agency (IEA) jointly serve as the Secretariat for the Climate
Change Expert Group and undertakes studies of issues related to the negotiation and implementation of international agreements
on climate change.
The OECD Environment Directorate also functions as the Secretariat for the Task Force for the Implementation of the Environmental
Action Programme in Central and Eastern Europe (EAP Task Force). The Task Force provides a forum for dialogue and co-operation
for countries in Eastern Europe, Caucasus and Central Asia (EECCA).
The Environment Programme is carried out in co-operation with international and regional organisations, e.g. the World Bank,
UNEP, WTO, UNECE and Secretariats for UNFCCC, CBD and the Basel Convention. Key research institutes are also important
partners, as is civil society represented through business, labour and NGOs. EPOC is actively engaging with key emerging
economies through Global Forums on Environment.
© OECD 2015
OECD work on
OECD Council
Environment Policy
Committee
Working Party
on Biodiversity, Water
and Ecosystems
Working Party on Climate,
Investment
and Development
Environment
43
EPOC
Organigramme
Working Party
on Environmental
Information
Working Party
on Environmental
Performance
Working Party on
Integrating Environmental
and Economic Policies
• Working Group of National
Co-ordinators of the Test
Guidelines Programme
• Working Group on Good
Laboratory Practice
• Working Party on
Manufactured Nanomaterials
Working Party on Resource
Productivity and Waste
• Task Force on Exposure
Assessment
• Task Force on Hazard
Assessment
Other OECD
substantive committees
• Working Group on Pesticides
• Working Group on Chemical
Accidents
• Working Group on National
Co‑ordinators of Test Guidelines
Programme
• Working Group on the Harmonisation
of Regulatory Oversight in
Biotechnology
• Task Force for the Safety of Novel
Foods and Feeds
Joint Meeting
Chemicals Committee
• Working Group on Good Laboratory
Practice
Working Party on
Chemicals, Pesticides and
Biotechnology
• Task Force on Biocides
• Task Force on the Pollutant Release
and Transfer Registers
• Joint Working Party on Trade and Environment
• Joint Working Party on Agriculture and Environment
• Joint Meetings of Tax and Environment Experts
• Ad Hoc Climate Change Expert Group (CCXG) with IEA
• Task Force for the Implementation of the Environmental Action
Programme in Central and Eastern Europe (EAP)
© OECD 2015
44
Environment Directorate (ENV)
The Environment Directorate is a multicultural team, encompassing some 120 international civil servants: economists, policy
analysts, statisticians and administrative staff.
We are an extension to national governments’ analytical capacity, providing policy-relevant analysis and policy recommendations
based on reliable environmental data, outlooks and cross-country experiences. We help countries to design environmental
policies that are both economically efficient and effective at achieving their environmental objectives.
We also provide a forum for governments and representatives from business and civil society for constructive dialogue on how
best to develop and implement environmental policies across OECD and other countries.
The ENV management team members are:
Director’s Office
Simon Upton
Anthony Cox
Director
Deputy Director
[email protected]
[email protected]
Tel.: +33 1 45 24 14 56
Tel.: +33 1 45 24 98 70
© OECD 2015
OECD work on
C
limate Change, Biodiversity
and Water Division
Shardul Agrawala
Head of Division
Head of Division
[email protected]
[email protected]
Tel.: +33 1 45 24 64 33
Tel.: +33 1 45 24 16 65
Environmental Performance
and Information Division
Bob Diderich
Nathalie Girouard
Head of Division
Head of Division
[email protected]
[email protected]
Tel.: +33 1 45 24 14 85
Tel.: +33 1 45 24 84 82
Green Growth and Global Relations Division
© OECD 2015
Environment and Economy Integration Division
Simon Buckle
Environment, Health and Safety Division
Environment
Central Management and Committee Branch
Kumi Kitamori
Amy Plantin
Head of Division
Head of Unit and Executive Secretary to EPOC
[email protected]
[email protected]
Tel.: +33 1 45 24 92 02
Tel.: +33 1 45 24 93 08
45
46
Recent Flagship Publications
Mapping Channels to
The Cost of Air Pollution:
Scaling-up Finance
Environmental
Mobilise Institutional
Health Impacts of Road
Effective Carbon Prices
Mechanisms for
Performance Reviews
Investment in
Transport
Biodiversity
Sustainable Energy
© OECD 2015
OECD work on
Environment
47
Forthcoming Flagship Publications
• Aligning Policies for the Transition to a Low-Carbon Economy (2015)
• Overcoming Barriers to International Investment in Clean Energy (2015)
• Economic Consequences of Climate Change (2015)
• Water and Cities: Ensuring Sustainable Futures (2015)
• Economic Policy Reforms 2015: Going for Growth (2015)
• Cost-Benefit Analyses and the Environment (2016)
• Economics of Adaptation: Moving from Theory to Practice (2015)
• Environment at a Glance (2015)
Environment Working Papers: This series is designed to make
available to a wider readership selected studies on environmental
issues prepared for use within the OECD.
• OECD Environmental Performance Reviews: Brazil, the Netherlands,
www.oecd.org/env/workingpapers.htm
Poland, Spain (2015); Chile and France (2016)
© OECD 2015
48
Selected Databases
OECD/EEA Instruments Database
Information on environmentally-related taxes, fees and charges, tradable permits systems, deposit-refund systems,
environmentally motivated subsidies and voluntary approaches. www.oecd.org/env/policies/database
Value of Statistical Life (VSL)
Data used in a meta-analysis of value of statistical life estimates from stated preferences surveys in environment, health and
traffic risk contexts. www.oecd.org/env/policies/vsl
Transboundary Movement of Wastes destined for Recovery Operations
Country-specific requirements for the application of the “OECD Decision on Transboundary Movements of Waste Destined for
Recovery Operations”. www.oecd.org/env/waste/database
eChemPortal
A Global Portal for information on properties of chemical substances. www.oecd.org/ehs/eChemPortal
Biotech Products Database
Information and unique identifiers on products derived from using modern biotechnology which have been approved for
commercial application. www.oecd.org/biotrack/productdatabase
Get free ENV reports and statistics
Visit www.oecd.org/environment for a selection of free reports and data.
© OECD 2015
OECD work on
© OECD 2015
Environment
49
More information on the OECD’s work on environment
The Environment Directorate produces 20-30 titles a year in English and French, with summaries of selected titles translated into
other languages (available for free on the OECD on-line bookshop).
W
rite to us:
O
rder our publications:
OECD Environment Directorate
Communications Co-ordinator
2, rue André Pascal
75775 Paris Cedex 16
France
[email protected]
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www.oecdbookshop.org
Be the first to know about the latest OECD publications
on environment with our free e-mail alert service:
www.oecd.org/OECDdirect
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www.oecdilibrary.org
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Photo credits:
Front cover: © vencav - Fotolia.com
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OECD Publications, 2 rue André-Pascal, 75775 Paris cedex 16
printed in france – (00 2012 42 1) – No. 90127 – 2012
ENVIRONMENT DIRECTORATE
www.oecd.org/environment
February 2015
April 2015