This report presents developments of the work of the Inclusive Forum on Carbon Mitigation Approaches (IFCMA) to the G20 Finance Ministers and Central Bank Governors, and reflect on the IFCMA’s achievements one year on from its launch in February 2023.

Despite commitments to scale up and speed up climate action, the fiscal cost of government support for fossil fuels almost doubled in 2022 to reach more than USD 1.4 trillion as governments across the OECD and partner countries introduced substantial initiatives to mitigate high energy costs on households and firms, caused in part by Russia's war of aggression against Ukraine. This rising trend is a real threat to our collective net zero goals and highlights the challenges of staying on track with net zero commitments in the face of geopolitical and economic disruption. Going forward, it will be critical that support measures are reformed to better target those most in need. Support for fossil fuels should also be phased out as soon as possible. This will help free up much needed resources for the transition towards net zero emissions and accelerate innovation to improve energy efficiency.

Malgré les engagements visant à intensifier et à accélérer l’action climatique, le coût budgétaire du soutien public aux combustibles fossiles a presque doublé en 2022 pour atteindre plus de 1 400 milliards de dollars, alors que les gouvernements des pays de l’OCDE et des pays partenaires ont lancé des initiatives substantielles pour atténuer les coûts énergétiques élevés pour les ménages et les entreprises, causés en partie par la guerre d'agression de la Russie contre l'Ukraine. Cette tendance croissante constitue une menace réelle pour nos objectifs collectifs de zéro émission nette et met en évidence les défis que représentent le respect des engagements de zéro émission nette face aux perturbations géopolitiques et économiques. À l’avenir, il sera essentiel de réformer les mesures de soutien afin de mieux cibler ceux qui en ont le plus besoin. Le soutien aux combustibles fossiles devrait aussi être progressivement supprimé dès que possible. Cela contribuera à libérer des ressources indispensables à la transition vers zéro émission nette et à accélérer l’innovation pour améliorer l’efficacité énergétique.

The Inclusive Forum on Carbon Mitigation Approaches (IFCMA) is the OECD’s flagship initiative to help optimise the global impact of emissions reduction efforts around the world. This report presents developments since the first meeting of the initiative in February 2023, including the latest updates in terms of country membership and technical work, and outlines next steps.

Ces orientations stratégiques résultent du programme de travail pluriannuel du Comité d’aide au développement sur les flux financiers illicites (FFI) dans le négoce de produits pétroliers. Elles visent à proposer, au titre de l’aide publique au développement (APD), un ensemble de mesures utiles, réalistes et applicables pour lutter contre les FFI dans le négoce de produits pétroliers. L’objectif est d’accroître la mobilisation des ressources intérieures au profit des populations qui vivent dans les pays en développement producteurs de pétrole, et de favoriser l’intégrité dans le cadre de la transition énergétique, en particulier pour le commerce de carbone.

This Policy Guidance is a product of the Development Assistance Committee’s multi-year programme of work on Illicit Financial Flows (IFFs) in oil commodity trading. It proposes a set of relevant, feasible actions for providers of official development assistance (ODA) to respond to IFFs in oil commodity trading. The aim is to enhance the mobilisation of domestic resources for the benefit of populations living in oil-producing developing countries, and enable integrity in their energy transition, particularly in carbon trade.

The iron and steel sector accounts for almost 8% of global emissions, making it one of the highest emitting industry sectors with around 30% of industrial carbon emissions. Decarbonising the steel sector is therefore key to achieving climate goals. This report, prepared for the 2023 Japanese G7 Presidency, demonstrates that considering the heterogeneity of steel industries is vital for reaching climate goals and for a just and inclusive transition to a low-carbon future. The report maps the heterogeneity of global steel industries, highlighting the differences between them in key areas relevant to decarbonisation. Additionally, it examines how these differences should be considered when developing definitions for near-zero and low-emissions steel production, as well as emissions measurement methodologies and data collection frameworks.

In spite of progress made to date and the significant long-term ambition announced by many countries, climate policy actions remain insufficient to meet the Paris Agreement objectives. While several international initiatives aim to track and monitor climate policies, there is not yet a “go to” place for a comprehensive inventory of policy actions and best practices worldwide. Such a platform would also ideally serve to compare policies’ effectiveness reflecting the diversity of country circumstances. Progress in this direction would help to promote an ambitious but globally more coherent and better-coordinated approach to emission reductions through a broad range of policies. This report lays out a roadmap for data and analytical work to support this aim, with a view to enhancing global dialogue and building trust on issues spanning climate change mitigation policies and their macro-economic repercussions. Key elements to strengthen the assessment and comparison of countries’ climate change mitigation policies across countries include: broadening and deepening the stocktaking of mitigation policies; extending and agreeing on an operational methodology for estimating the impact of these policies on emissions and on potential metrics to compare them; and assessing the broader economic effects of different climate policies.

L’un des principaux obstacles à une action climatique plus ambitieuse est que les initiatives visent essentiellement à apporter des modifications mineures à des systèmes qui sont fondamentalement non durables. Le rapport précité applique l’approche de l’OCDE axée sur le bien-être au secteur des transports. Il s’appuie sur le rapport « Accélérer l’action pour le climat » et encourage les pays à centrer leur action en faveur du climat sur la mise en place de systèmes qui – par nature – améliorent le bien-être tout en nécessitant moins d’énergie et de matières, et donc produisent moins d’émissions. Le rapport met en évidence trois phénomènes à l’origine de la dépendance à la voiture et du niveau élevé des émissions : le trafic induit, l’étalement urbain ainsi que l’érosion des solutions de mobilité active et partagée. Il formule en outre des recommandations à l’intention des pouvoirs publics pour mettre fin à cette dynamique et réduire les émissions tout en améliorant le bien-être : la réorganisation radicale des rues, l’aménagement de l’espace axé sur la création de proximité, ou des mesures visant à généraliser la mobilité partagée. L’analyse montre également pourquoi l’efficacité et l’acceptabilité par la société de la tarification du carbone ainsi que les politiques incitant à l’électrification des voitures peuvent sensiblement se développer une fois que les pouvoirs publics accordent la priorité à la refonte des systèmes.

This report provides a broad and evidence-based analytical perspective of the debate around the possible role of a Border Carbon Adjustment (BCA) to deal with climate change. The new context of divergent climate ambition has led to a resurgence of interest in BCAs. The paper provides an overview of different policy instruments that can limit carbon leakage, with a particular focus on the BCA option, and offers a technical review of the literature and of the legal specificities around BCA as well as of alternative instruments. The report also analyses the issue of fragmented climate policies in the broader perspective of the trade-climate nexus and discusses how other policy measures – especially those related to trade – can help support climate objectives (for example, reducing the existing barriers to trade in environmental goods, and removing environmentally harmful and trade distortive subsidies).

This new web format for Environment at a Glance Indicators provides real-time interactive on-line access to the latest comparable OECD-country data on the environment from the OECD Core Set of Environmental Indicators – a tool to evaluate environmental performance in countries and to track the course towards sustainable development. The web version allows users to play with the data and graphics, download and share them, and consult and download thematic web-books. These indicators provide key messages on major environmental trends in areas such as climate change, biodiversity, water resources, air quality, circular economy and ocean resources. They are accompanied by a short Environment at a Glance report that presents a digest of the key messages stemming from the indicators.

Ce rapport fournit une vue d'ensemble des effets du changement climatique sur les infrastructures et des principaux domaines dans lesquels les pouvoirs publics peuvent intervenir pour les rendre plus résilientes. Y sont examinées les avancées obtenues et les lacunes à combler dans la planification et le développement des infrastructures tout au long de leur cycle de vie pour intégrer la résilience climatique, ainsi que la question de savoir comment favoriser cette intégration par une approche territoriale. L’analyse porte également sur la manière de renforcer la prise de conscience et la compréhension des risques climatiques et d’en imposer la prise en compte dans toutes les décisions de financement et d'investissement, à l’aide de normes et d’instruments financiers qui intègrent l'adaptation et la résilience climatiques. Les solutions fondées sur la nature occupent une place particulière dans le rapport, qui donne des pistes pour en tirer parti efficacement, au service de la résilience climatique. Il est également reconnu que le développement économique des pays en développement suppose d’accorder une attention mondiale aux besoins qui leur sont propres ainsi que de renforcer le soutien et les partenariats internationaux. Ces travaux apportent des éléments utiles sur l’action à mener et plaident pour que les responsables de l’élaboration des politiques nationales et infranationales adoptent une approche de la résilience fondée sur une gouvernance pluri-niveaux, en travaillant avec les propriétaires et les exploitants d'infrastructures pour soutenir la prise de décision.

This report provides an overview of the impacts of climate change on infrastructure , and key policy areas to be considered to render infrastructure more resilient. It discusses advances and persisting gaps in planning and developing infrastructure across its lifecycle to build in climate resilience and how this can be fostered by place-based approach. The report explores how climate risk awareness and understanding can be strengthened and become a norm for all financing and investment decisions, through standards and financial instruments that integrate climate adaptation and resilience. It includes a spotlight on nature-based solutions and offers insights on how nature can be harnessed as a cost-effective measure to build climate resilience. The report also recognises the specific needs of developing countries as requiring global attention for economic development and through strengthened international partnerships and support. Key policy insights are provided and advocate for national and subnational policy-makers to adopt a multi-level governance approach to resilience, working with infrastructure owners and operators to support decision-making.

This report provides an overview of green budgeting practices across OECD countries based on the 2022 OECD Green Budgeting Survey, as well as the index methodology for the Survey. It takes stock of OECD countries’ progress in bringing climate and environmental considerations into budgeting frameworks and processes. Green budgeting involves a systematic approach across all stages of the budget process, including financial reporting and budget oversight. The growth in green budgeting in OECD countries, as shown in the report, demonstrates the key role of budget offices in ensuring that policy priorities relating to climate change and the environment are taken into account when allocating resources through the budget process.

Over 100 million workers in Southeast Asia have jobs that are directly or closely linked to the environment, making them vulnerable to climate change impacts. These same workers likely earn at least 20% lower than the national average and are largely in informal employment. The region’s necessary transition towards greener growth could affect them in several ways: some sectors will create jobs and others will lose jobs or disappear altogether. Understanding the effects of both climate change and green growth policies on jobs and people is thus essential for making the transition in Southeast Asia an inclusive one. The study explores these issues, with emphasis on the potential effects on labour of an energy transition in Indonesia, and of a transition in the region’s agricultural sector, illustrated by a simulated conversion from conventional to organic rice farming.

In recent years, the Philippines has increased its commitment to climate action and its efforts to decarbonise the domestic economy. The power sector in the Philippines accounts for 58% of the country’s overall carbon emissions and will be an important driver of domestic emission reduction efforts to meet national climate and energy targets. Renewables, such as offshore wind, are expected to play a key role in the transition toward a low-carbon energy mix. With more than 17 thousand kilometres of coastline, the Philippines is estimated to have an offshore wind potential of 178 GW. However, this potential has yet to be leveraged. Alongside a changing power sector, progress on energy efficiency is needed to achieve the country’s emission reduction goals, with energy savings estimated at approximately 2% annually for the residential and commercial sectors. To deliver a clean energy transition, the Philippines requires estimated cumulative investments of over USD 300 billion between now and 2040. This report outlines key actions needed to unlock finance and investment in offshore wind power and energy efficiency in public buildings. It also provides a comprehensive overview of the progress to date and the challenges to mobilise near-term finance in those sectors, assist the Philippines transition towards a low-carbon economy, and achieve broader development goals.