Meeting of The Coalition of Finance Ministers for Climate Action, 6 April 2021

 

Remarks by Angel Gurría,

Secretary-General, OECD

Paris, 6 April 2021

This Coalition plays a crucial role in aligning three key issues: the recovery, decarbonisation and net-zero pathways.

So far, the balance of green measures in governments’ recovery packages has not been encouraging.

A number of tools can set us on a more sustainable path.

First, let’s put a big fat tax on carbon! This would align stimulus measures with climate objectives and would contribute significantly to public revenue. Our estimates show that roughly 60% of carbon emissions are not priced! A gradually rising carbon tax of at least EUR 30 per tonne of CO2 today would generate additional tax revenues worth around 1% of GDP.

And let’s stop the subsidies to coal and to activities that are harmful to biodiversity or that accelerate emissions.

Second, public budget decisions are key for structural decarbonisation. The OECD developed guidance under the Paris Collaborative on Green Budgeting – in conjunction with this Coalition. Let’s put it to good use!

Third, we need to facilitate financial market transitions to net zero, strengthen disclosures and climate transition plans to align them with climate targets, and to establish credible third-party verification mechanisms.

And fourth, the OECD is working on a new International Programme for Action on Climate (IPAC), led by France, to track countries’ progress and support them to implement the objectives of the Paris Agreement.

The OECD, as a key Institutional Partner to this Coalition, is ready to help. Remember: our single most important intergenerational responsibility is to protect the planet.

Thank you.

 

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