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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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Strengthening incentives for sustainable land use

Sustainable land-management practices – reduced deforestation, restoring degraded land, low-carbon agricultural practices and increased carbon sequestration in soils and forests – can contribute to significant greenhouse gas emission reductions while responding to growing food demand. They could also improve the resilience of our economies to a changing climate by protecting ecosystems. Achieving this will require an integrated approach that breaks down the silos between climate change, agriculture, food security, forestry and environment policies. This chapter explores misalignments arising from the existence of environmentally harmful agricultural subsidies, the lack of valuation of ecosystem services and forest protection, and the incentives leading to food waste across the agriculture value chain.

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