Aligning Policies for a Low-carbon Economy

Published on July 03, 2015


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.


Foreword and acknowledgements
Executive summary
Core climate policies and the case for policy alignment
Reforming cross-cutting policies5 chapters available
Scaling-up low-carbon investment and finance
Implementing climate-friendly taxation practices
Delivering innovation and skills for the low-carbon transition
Removing international trade barriers
Diagnosing misalignments for a more resilient future
Aligning policies in specific activities3 chapters available
Reframing investment signals and incentives in electricity
Opting for low-carbon urban mobility
Strengthening incentives for sustainable land use
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In May 2014, ministers and representatives of OECD member countries and the European Union gathered at the Ministerial Council Meeting invited the OECD to work with the International Energy Agency (IEA), the Nuclear Energy Agency (NEA) and the International Transport Forum (ITF) “to continue to support the UNFCCC [United Nations Framework Convention on Climate Change] negotiations and to examine how to better align policies across different areas for a successful economic transition of all countries to sustainable low-carbon and climate-resilient economies and report to the 2015 OECD Ministerial Council Meeting.”

The report "Aligning Policies for a Low-Carbon Economy" responds to that request by identifying where existing policy and regulatory frameworks are at odds with climate policy, i.e. where existing policies may make climate policy less effective than it could be otherwise.

This is a synthesis of the four organisations’ initial diagnosis of where and how existing policy and regulatory frameworks may not be aligned with a low-carbon economy.

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