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The transition towards a green economy is a key factor for growth and prosperity in the German federal state of Brandenburg. Future living conditions will be determined by the course set now. We have to decide today how we want to live tomorrow, not only in economic terms, but also with regard to environmental stewardship. I am convinced that there is no alternative to a green transition when it comes to shaping the world to be a place worth living in. There are issues we have to deal with, but first and foremost there are great opportunities to seize. The relevant players in Brandenburg are aware of complex challenges resulting from the present transitional process. They are redoubling their efforts to promote further economic development towards sustainability. This study presents the green growth path of the regional growth core (RGC) Schönefelder Kreuz.
This paper discusses the results of a study of measuring green growth in the Benelux countries (Belgium, The Netherlands and Luxembourg). The study paid particular attention to the challenges of measuring the transition to a low-carbon economy in cross-border areas as they have additional levels of complexity when it comes to measuring and monitoring their low-carbon transition. In cross- regions data collection hardly ever coincide with any single data gathering ‘institution’. Moreover, Belgium (Flanders, Brussels, Wallonia), the Netherlands, and Luxembourg have different indicator systems at the national level, and even more so at the more decentralised level which creates problems of data availability, data (in)consistency, and hence comparability. Progress is already noticeable in the two crossborder areas analysed in the study. In Ghent-Terneuzen the bio-base economy is contributing to the value of turnover and growth in employment in the environmental goods and services (EGS) sectors. In Alzette-Belval the construction industry is engaging in resource-efficient building design and certification. In other aspects there is evidence of progress, but this evidence is anecdotal, or patchy in its collection, and not able to be included in the dashboard metrics developed during the study and discussed in the paper.
The OECD's Towards Green Growth states that green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this it is necessary to foster investment and innovation, which will underpin sustained growth and give rise to new economic opportunities...
French

This Policy Paper describes the relatively new phenomenon of publicly-capitalised green investment banks and examines why they are being created and how they are mobilising private investment. It draws on the OECD report “Green Investment Banks: Scaling up Private Investment in Low-carbon, Climate-resilient Infrastructure".

This paper looks at Arlington County Virginia’s efforts to become more economically competitive, energy efficient, sustainable and emit fewer greenhouse gases. It reviews the county’s experiences in the creation of green jobs to accelerate deployment of energy efficient and low-carbon technologies, practices and policies. The paper also looks at the impacts on the overall attractiveness of the community as a place to live and work, including ways in which innovative energy systems create attractive investment opportunities for business. A major focus will be to review the importance of initiatives scaled to the community-level and the degree to which the examples are demonstrating the value of “scale” in implementation. This working paper feeds into the wider OECD project on Climate Change, Employment and Local Development being developed by the LEED Programme.
This report aims to help environmental and other competent authorities in OECD countries to promote green business practices among small and medium-sized enterprises (SMEs). It analyses different ways to establish environmental regulatory requirements for facilities with low environmental risk (most of which are SMEs). It also examines how to design and apply information and market-based tools to promote compliance with such requirements and adoption of cleaner technologies and good environmental management practices. The report suggests several ways to increase the effectiveness of these promotion tools with respect to the SME community.

The report addresses the roles of environmental authorities, local governments, business organisations and financial institutions in the greening of small businesses. It reviews in detail the experience of France, Ireland, Korea, the Netherlands and the UK (England and Wales and Scotland) and draws on examples of several other countries.

French

Recovery from the social and economic disruptions caused by the COVID-19 pandemic will require concerted policy action. As countries consider recovery packages, there are opportunities to prioritise green policy choices that help promote environmental objectives and speed up structural change towards the low-carbon transition, increasing society’s resilience to future shocks and reducing future risks. This policy brief focuses on practical ways in which countries can use green budgeting and tax policy tools to implement stimulus packages that support a green recovery, and the inter-linked role of both tax and spend measures in aligning stimulus programmes with decarbonisation objectives.

Japanese

Green budgeting refers to the integration of climate and environmental perspectives into a government’s budgetary processes. Based on the resources of the OECD’s Paris Collaborative on Green Budgeting and experiences in OECD countries from implementing green budgeting, this paper identifies seven key areas to support the development of green budgeting practices in making progress toward climate and environmental goals. The key areas consider the institutional frameworks, budgetary tools, transparency and accountability arrangements and the enabling environment for budgeting in the public sector.

Greening the economy involves improving the quality of the environment and tackling climate change, and is a major policy, economic and financial challenge. Key issues that have emerged in this context relate to financing climate change mitigation and adaptation and how to close the financing gap to fund the needed low-carbon investments. Beyond such capital mobilisation there is the more general challenge of whether and how the financial system can enable capital reallocation consistent with the “green” transition and for the long run, and what risks, opportunities and incentives are involved. This article provides a brief overview and summarises an OECD roundtable discussion on these issues.

JEL classification: Q54, E10, E44, G12, G14, G21, G22, G23, G28.
Keywords: Climate change, low carbon, climate finance, green finance, investment, capital allocation, financial system, disclosure, stranded assets, risks, COP21.                                                      

Hydrogen is a cross-cutting energy vector that can help to decarbonise various end-use sectors. At least two-thirds of the global hydrogen production is projected to be green hydrogen by 2050, supporting the transition to a net-zero emissions global energy system. This paper presents a value chain approach to identify priority areas for developing national hydrogen strategies, focussing on emerging and developing economies. Further, the analysis highlights success factors for green hydrogen projects, based on eight case studies covering applications in industrial, transport and power generation sectors. The paper summarises the enabling conditions and financing solutions that can spur the green hydrogen market creation and growth.

This report showcases how triangular co-operation can contribute to achieving ‘green’ objectives (e.g. on climate change mitigation, climate change adaptation, biodiversity, desertification, and local environmental issues). Data collected through an OECD survey on triangular co-operation (2015) and desk research uncovered 224 triangular projects targeting green objectives, involving 91 countries and international organisations, out of a total of 658 triangular co-operation projects for the period 2014-18. Given the available evidence (data, evaluations and interviews with project managers), the report shows that triangular activities can deliver green goals in innovative, flexible and cost-effective ways within and across regions – and thus could help accelerate implementation of the Sustainable Development Goals and other international green agreements (e.g. the Paris Agreement). Nevertheless, there are several barriers that prevent further deployment of this modality, including lack of awareness on triangular co-operation among the different green communities, insufficient evidence on the potential of green triangular co-operation, and few dedicated vehicles that can pilot and scale-up successful initiatives. The report proposes a number of recommendations for policy makers to overcome these barriers.

The degradation of the environment due to climate change and pollution can harm living standards and damage growth prospects. In Belgium, one of the most densely populated OECD countries, pressure on the environment is particularly strong, and is reinforced by the high energy intensity of the economy and concentrated agriculture. Environmental policy backlogs accumulated over the years highlight the challenges of reducing greenhouse gas emissions and water pollution in a cost-efficient way. To achieve environmental goals at minimum cost across the economy the polluters should face the marginal costs of the externalities they impose, which should be achieved by increasing reliance on environmental taxation. Potential adverse effects on income distribution could then be addressed in the tax benefit system. Moreover, where environmental responsibilities are better dealt with at the regional level, regions should have the most efficient tools, such as taxation powers. Where, due to economies of scale and scope or important cross-regional effects, environmental issues are better dealt with at the national level (for instance in renewable energy sources and transport policies), better co-ordination among regions or a greater role of the federal level should be envisaged. This Working Paper relates to the 2011 OECD Economic Review of Belgium (www.oecd.org/eco/surveys/Belgium).

Governments increasingly include environmental criteria in their purchasing decisions. For example, purchasing guidelines often require that particular products contain a minimum amount of recycled content or achieve specified levels of energy efficiency. Guidelines may also favour – through price preferences, explicit set-asides, or other mechanisms – suppliers who exceed official pollution standards, abide by environmental frameworks...

French
Green skills, that is, skills needed in a low-carbon economy, will be required in all sectors and at all levels in the workforce as emerging economic activities create new (or renewed) occupations. Structural changes will realign sectors that are likely to decline as a result of the greening of the economy and workers will need to be retrained accordingly. The successful transition to a low-carbon economy will only be possible if workers can flexibly adapt and transfer from areas of decreasing employment to new industries. This paper suggests that the role of skills and education and training policies should be an important component of the ecological transformation process.
Information and communication technologies (ICTs) are a key enabler of “green growth” in all sectors of the economy. They are a key part of government strategies for a sustainable economic recovery. This report looks at how ICTs can improve their own environmental performance, and how they can be used to improve environmental performance throughout the economy and society. Direct environmental impacts of ICTs are considerable in areas such as energy use, materials throughput and end-of-life treatment. Government “green ICT” policies can be instrumental in promoting life-cycle approaches for improved R&D and design of ICT goods, services and systems. Innovative ICT applications enable sustainable production and consumption across the entire economy. The potential for improving environmental performance targets specific products, but also entire systems and industry sectors, e.g. construction, transport, energy.
In this paper, we discuss the greenhouse gas emission reduction potential from international shipping. Drawing from the International Maritime Organization’s most recent assessment of maritime greenhouse gas emissions and other sources, we investigate the current level of emissions from international maritime activity and look at factors influencing future emission levels such as projected activity levels, GHG-reducing technology options and the rate of their uptake, operational measures – foremost speed reduction – and fuel switching. We do not discuss the marginal abatement costs of maritime GHG-reduction measures – with the exception of speed reduction – due to insufficient evidence. Finally, we discuss factors that may influence international responses to maritime GHG reduction policies, though these are discussed more thoroughly in a companion paper (Kågeson, 2009). CO2 emissions from maritime transport are larger than has previously been estimated The IMO finds that international maritime activity accounted for 843 Mt of CO2 in 2007 or 45% more than previous emission estimates from marine bunkers. This finding, for illustrative purposes, places 2007 international shipping emissions between the 2005 national emissions of India and Germany. International shipping accounts for approximately 2.7% of world CO2 emissions from fossil fuel combustion with all shipping activity (fishing, domestic and international) representing approximately 3.3% of total CO2 from fuel combustion. Despite projected efficiency improvements, the IMO projects that CO2 emissions from international maritime activity will grow through 2050 though this growth may significantly slowed through uptake of fuel efficient technologies and operating procedures.
Since 1990, Belgium has managed to bring down greenhouse gas emissions in most domains of economic activity. Road transport, as in many other countries, is a notable exception to this pattern: emissions have steadily increased, driven by an ever higher consumption of petrol and diesel. Even though the current overall performance will probably be sufficient to reach the reduction objectives of the Kyoto protocol, transport emissions thus need to be targeted in the future. One possible measure aimed at reducing them, an increase in fuel taxes, is examined in detail in this paper. The success of such a policy depends on the price elasticity of fuel demand, and therefore, the latter is estimated for Belgium and other European countries. The elasticities obtained are relatively small: in Belgium, for instance, a 10% increase in prices would cause consumption to fall by around 1.8% in the short-run and 2.3% in the medium run. Tax increases alone will thus certainly be insufficient for cutting emissions at this time horizon. Nevertheless, as a supporting measure in a more general reduction strategy, they could still yield substantial advantages. This Working Paper relates to the 2011 OECD Economic Review of Belgium (www.oecd.org/eco/surveys/Belgium).
  • 26 Jan 2009
  • Olof Drakenberg, Sandra Paulsen, Jessica Andersson, Emelie Dahlberg, Kristoffer Darin Mattsson, Elisabeth Wikstrom
  • Pages: 57
Different approaches to making the economic case for improved management of natural capital in national planning are reviewed in this report. In many low-income countries natural resources sectors (agriculture, mining, forestry, fishery, nature-based tourism) are identified as the engines of economic growth. However, a majority of the ecosystems on which human well-being depends are being degraded. The difficulties in providing economic and policy-relevant information about sustainable economic management of natural capital are often seen as an important reason for inadequate integration of the environment in macroeconomic and sector polices. The report concludes that the analysed country studies (Lao People's Democratic Republic, Mozambique, Peru, Tajikistan and Uganda) mainly relied on existing domestic or international analytical work, used relatively basic calculations/data (such as the market value of fisheries, the value of timber sold etc.) and often formed part of a broader analytical effort.
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