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Illegal trade in environmentally sensitive goods, such as threatened wildlife, timber, hazardous waste, and ozone-depleting substances, has been a long-standing issue in the international trade and environment agenda.  The nature of such illegal trade makes it difficult to fully understand its extent and impact on the environment.  Developing effective policies to reduce illegal trade requires a clear understanding of what drives this trade and the circumstances under which it thrives.  In this report, evidence-based on customs data and information from licensing schemes is used to document the scale of illegal trade, as well as the economic and environmental impacts of such trade.  National and international policies have an important role to play in regulating  and reducing illegal trade and the report highlights a range of measures that can be taken at both levels.

To contribute to the existing pool of evidence on the dynamic interplay between illicit trade and armed conflicts, this report looks at illicit trade flows in four separate conflict-affected countries in the MENA region: Iraq, Libya, Syria and Yemen. For the case of Yemen, the report also presents a deep-dive analysis of illicit trade flows and the relevant governance environment. The findings highlight that illicit trade networks in these countries are dynamic, complex, and heavily integrated into regional and global networks.

The use of tradable permit systems for the protection of the environment is attracting growing interest in many countries and on the international scene. While the United States’ practice has been extensively analysed, relatively little is known of experiments in other countries. This book reviews the issues related to the implementation of domestic tradable permits systems in different areas (air, water, land) and in several OECD countries. It addresses key questions such as : what lessons can be drawn from existing experience? Why has the introduction of tradable permits failed in some instances? How can tradable permits be combined with other policy instruments such as taxes? What are the competitiveness implications of tradable permit systems? Not only should the lessons drawn from existing experience help the further use of domestic systems, it should also provide helpful insights for the possible implementation of tradable permits at the international level, in particular for managing greenhouse gases.

Water and its improved governance are critical for economic growth, social inclusiveness and environmental sustainability. Three years after the adoption of the OECD Water Governance Principles, this report takes stock of their use and dissemination. It provides a water governance indicator framework and a set of evolving practices for bench-learning, building on lessons learned from different countries and contexts.
 
Based on an extensive bottom up and multi-stakeholder process within the OECD Water Governance Initiative (WGI), these tools are conceived of as voluntary methodologies to be carried out at country, region, basin and/or city levels to improve water policies. The indicator framework is composed of a traffic light system based on 36 input and process indicators and a checklist with questions on a number of more specific governance conditions. The framework concludes with an action plan to help prioritise steps towards better design and implementation of water policies.

The water supply and sanitation (WSS) sector in Moldova is not financially sustainable: tariffs do not typically cover operational costs and capital investments are heavily funded by external development partners. This report analyses several options for streamlining and strengthening domestic financial support mechanisms (DFSMs) in terms of both supply and demand, discusses different scenarios and recommends a number of actions to ensure effective DFSM implementation, notably: 1) sufficient investment for the implementation of targets and obligations set in the national strategies, the Association Agreement with the EU, as well as Moldova’s international commitments (water-related Sustainable Development Goals, and the “Water-to-all” commitment); 2) the financial sustainability of operators; and 3) the affordability of WSS services for end-users, especially low-income segments of the population.

A major challenge facing the Republic of Buryatia, subject of the Russian Federation, is how to balance the task of protecting Lake Baikal – a unique water object and ecological system included in the UNESCO list of World Natural Heritage Areas – with the need for dynamic and sustainable socio-economic development of the republic.  This requires streamlining and improving water policy jointly with economic, administrative, information and other policy instruments. The recommendations in this report aim to help achieve this objective. They include the introduction of abstraction charges for irrigation water as a  natural resource; enhancement of state support to the water sector; and improvement of economic instruments for managing risks of water-related hazards (such as compulsory insurance and differentiated land tax rates in flood prone areas). A few innovative instruments are also recommended for pilot testing such as establishing limits for discharges of certain hazardous substances in a pilot area (e.g. Selenga river basin) and progressive development of market for tradable quotas for discharges of the “capped” pollutants; and introducing a charge (tax) on toxic agricultural chemicals (pesticides, herbicides, etc.) and synthetic detergents so that to create incentives for the reduction of diffuse water pollution.

For a variety of reasons, energy use in the agro-food sector continues to rise, and in many countries, is highly dependent on fossil fuels, contributing significantly to greenhouse gas emissions. It is therefore becoming urgent to consider how the food supply chain can improve its energy efficiency. This report analyses ways of improving energy use in the agro-food sector in relation to both producers and consumers, and puts forward a set of policy recommendations that governments can introduce to meet green growth objectives and achieve sustainable development.

Plastics have become one of the most prolific materials on the planet: in 2015 we produced about 380 million tonnes of plastics globally, up from 2 million tonnes in the 1950s. Yet today only 15% of this plastic waste is collected and recycled into secondary plastics globally each year. This report looks at why this is the case and what we can do about it, as the pervasiveness of plastics is becoming an urgent public health and planetary problem. Not only is the diffusion of waste plastics into the wider environment creating hugely negative impacts, but plastics production emits approximately 400 million tonnes of greenhouse gas (GHG) emissions annually as a result of the energy used in their production, transport, and final waste treatment. Improved plastics collection and recycling represents a promising solution to these concerns.

Markets for many classes of potentially recyclable materials are growing. However, market failures and barriers are constraining some markets. Factors such as information failures, technological externalities, and market power can affect the prices, quantity, and quality of materials traded. This report presents the case for the use of 'industrial' policies which address such market failures and barriers and these policies are seen as complements to more traditional environmental policies. Indeed, encouraging ever-higher recycling rates in the absence of such complementary measures may impose very high social welfare costs. This publication covers in particular the markets for waste oils, waste plastics, and used rubber tyres.

This report brings together the recent work done by OECD on water management issues and identifies the main policy challenges for sustainable water management.  Issues discussed are:  performance of water management policies in OECD countries; water pricing; financing of water and wastewater infrastructure; water-related development co-operation; social aspects of water pricing; biochemical technologies for improving water quality; and aid to the water supply and sanitation sector.  Co-published by IWA Publishing, London:  www.iwapublishing.com

Substantial amounts of money continue to be spent in OECD Member countries on measures to support agricultural, energy, transportation and industrial activities. Many of these support measures encourage the emission of environmentally-harmful pollutants, the generation of waste, and the excessive use of natural resources, and constitute a large drain on government budgets. In addition, much of the money spent on support may not reach the intended recipients as it can leak away to other sectors of the economy instead. As such, it is likely that the reform or removal of these subsidies could lead to "win-win" benefits through increased economic efficiency, reduced government spending and improved environmental quality.

Building on the vast literature on the subject as well as on the available statistical data on subsidies, this publication summarises the results of an OECD study on how economic support measures actually affect the economy and, as a result, the environment. Although the effects of a given support measure on the environment will be determined by a number of different factors, this study finds that releasing market forces through support removal and increasing the effectiveness and efficiency of regulations can lead to significant environmental benefits.

The report develops an analytical framework which enables policy makers to identify those support measures whose removal is most likely to lead to "win-win" benefits. It also offers recommendations to implementing reductions in environmentally-harmful subsidies -- especially those that run counter to environmental objectives that are shared by OECD Member countries -- and to overcome the often exaggerated fear of a loss in competitiveness.

Agriculture has major impacts on the environment, especially on land use, soil and water quality, biodiversity and landscapes, which is a growing public concern in OECD countries. The challenge is to find ways for agriculture to efficiently and profitably produce sufficient and safe food to meet growing world demand without harming the environment and degrading natural resources. Agricultural policies often provide substantial production-linked support that have boosted farm output, but with mixed results on environmental quality. The reform of agricultural policies and trade liberalisation has started to alter signals to farmers, leading to changes in farm practices, which will contribute to enhancing the beneficial and reducing the harmful environmental impacts of agriculture. Despite some progress in the environmental performance of agriculture over the last decade, there is still much room for improvement and more needs to be done. On which principles should policies be based? Who should pay or be paid for ensuring environmental quality? When could market approaches be harnessed for charging and remunerating environmental quality? And when might policy action be needed? This report sheds light on these questions and provides criteria and guidelines for the better design, implementation, monitoring and evaluation of policies addressing environmental issues in agriculture.

This report, undertaken within the framework of the OECD Champion Mayors for Inclusive Growth initiative, assesses inclusive growth trends and challenges in the Seoul metropolitan area. The analysis goes beyond income to assess the barriers faced by specific groups - non-regular workers, youth, women, the elderly and migrants - across four dimensions: education, labour market, housing and the urban environment, and infrastructure and public services. The study then takes a closer look at two major policy efforts by the Seoul Metropolitan Government to advance inclusive growth. The study analyses the city’s efforts to ensure that strategies to address climate change also protect and benefit the most vulnerable populations, notably through the Promise of Seoul, which puts citizen welfare and social inclusion at the heart of the city’s efforts to tackle climate change. The study also assesses the efforts of city authorities to level the playing field for small firms and entrepreneurs through its Economic Democratisation Agenda.

How can governments support the private sector’s contribution to the Sustainable Development Goals (SDGs)? This book investigates the contribution of firms to the SDGs, particularly through their core business, taking into account inter-sectoral linkages and global value chains, using novel techniques and data sources. Despite the fact that the private sector has the potential to contribute to a wide range of SDGs, and that many firms find it economically viable to develop sustainable products and services, firms still face significant hurdles in their sustainability transition. Based on this new evidence, this book provides some recommendations on the design of industrial policies to enhance the contribution of businesses to the SDGs.

This OECD Emission Scenario Document (ESD) provides information on the sources, use patterns, and release pathways of chemicals used in industrial cleaning. This document provides a method of estimating emission quantity in the absence of sufficient empirical data to support an analysis of the substitution of one industrial cleaner for another. Among scenarios that are highly likely to occur (as determined by analysing trends in the substitution of cleaning chemicals), possible combinations of currently used substances and their substitutes are focused. Changes in operating conditions and cleaning equipment due to the use of substitute materials are also examined.