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Energy

image of Energy

The OECD Green Growth Strategy aims to provide concrete recommendations and measurement tools, including indicators, to support countries’ efforts to achieve economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which well-being relies. The strategy proposes a flexible policy framework that can be tailored to different country circumstances and stages of development. This report was coordinated with the International Energy Agency (IEA).

This report looks at the role of the energy sector in moving towards a green growth model and the policies to facilitate the transition.  Together with innovation,  going green can be a long-term driver for economic growth, through, for example, investing in renewable energy and improved efficiency in the use of energy and materials. 

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Implementing green energy

Reshaping the political economy

Current energy systems are “locked-in” to high carbon production and consumption patterns that can be difficult to break. Structural change in the energy sector will involve more than just changing existing technologies; it will also affect supply chains, physical infrastructure, user practices, markets and regulatory systems. Countries will choose the most appropriate option depending on national circumstances, whether it is low-carbon energy supply, carbon capture and storage or energy efficiency. Flexibility should be built into long-lived new energy assets to allow for changes of environmental regulations and wider economic conditions such as fuel prices.

The transition to a low-carbon energy system is likely to have a positive impact on employment within the energy sector, as renewable energy tends to be more labour-intensive than fossil fuelbased energy, although the actual employment impact will differ by energy technology. Governments should pay attention to the distributional impacts of the energy transition, both within countries in terms of the effect on the poor, who tend to spend a larger share of their income on energy, and between countries, as patterns of trade related to fossil fuels change.

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