This new OECD inventory puts the spotlight on almost 800 spending programmes and tax breaks that governments use to encourage the production or use of fossil fuels. These policies are found in both our member countries and in key emerging economies at national, state and provincial levels.
Without zero net CO2 emissions, temperatures will just keep rising. When I said that two years ago, it was deemed controversial. Today, I’m pleased to see that it has become conventional wisdom and a commonly shared goal – including just last month by the G7 Leaders.
In his remarks to the Business & Climate Summit, the Secretary-General said that business lies at the heart of what we need to achieve on climate action. If Governments produce clear, credible and coherent national policies and clear messages and signals, the full transformative power of business, markets and human ingenuity will be unleashed.
Speech to open the OECD’s second annual Green Investment Financing Forum – the GIFF – with Al Gore. This event, which is part of Climate Week Paris, is a key staging post on our journey to COP21 at the end of the year.
Climate policy and competitiveness issues have created a new need for international co-ordination, beyond the scope of our current frameworks. There is no need to trade economic growth for environmental stringency. Environmentally stringent policies are an incentive for greater efficiencies which leading edge companies can easily achieve.
Green is not only compatible with growth; green is a source of growth. Sweden was one of the first countries to understand this and showed tremendous leadership when it introduced the world’s first carbon tax in 1991, amidst the economic crisis. Yet there is so much more that can be done to foster a fast transition to a low-carbon world whilst creating the competitive economies of the future.
By 2050, the world’s population will have risen to 9 billion. By then, the demand for water will have risen by 55% and demand for food by 60%. And on top of this, a world economy that is four times larger than today could be using up to 80% more energy.
Water security is one of the greatest challenges we face today, yet the situation has never looked more perilous. By 2050 the OECD Environmental Outlook projects that nearly 4 billion people will live in river basins under severe water stress, and global nitrogen effluents from wastewater are projected to grow by 180%. Whilst, over the same period, global demand for water is expected to grow by 55%.
This Initiative was created following the OECD’s commitment at the 6th World Water Forum in Marseille in 2012 to spearhead robust economic and evidence-based analysis, tailored policy dialogues, and multi-stakeholder consultation in support of better water governance.
The G20 needs to go structural, social, and green! With fiscal and monetary policy room nearly exhausted, structural reforms are the best choices, sometimes the only choice. The OECD battle cry in this regard has been unchanged since 2008: “go structural!”.