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Aligning Policies for a Low-carbon Economy

image of Aligning Policies for a Low-carbon Economy

This report produced in co-operation with the International Energy Agency (IEA), the International Transport Forum (ITF) and the Nuclear Energy Agency (NEA) identifies the misalignments between climate change objectives and policy and regulatory frameworks across a range of policy domains (investment, taxation, innovation and skills, trade, and adaptation) and activities at the heart of climate policy (electricity, urban mobility and rural land use).

Outside of countries’ core climate policies, many of the regulatory features of today’s economies have been built around the availability of fossil fuels and without any regard for the greenhouse gas emissions stemming from human activities. This report makes a diagnosis of these contradictions and points to means of solving them to support a more effective transition of all countries to a low-carbon economy.

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Diagnosing misalignments for a more resilient future

Climate change increases the risk of severe, pervasive and irreversible impacts such as species extinctions, threats to food security, changing patterns of weather-related mortality and rising sea levels. All countries are or will be affected; yet, many are not well adapted to this new reality. This chapter first reviews misalignments between existing policies and climate adaptation objectives, such as regulatory barriers in infrastructure financing, poorly designed planning policies and lack of pricing of natural resources. It then provides guidance on how countries could better manage the risk linked to climate change.

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