Better regulation for the green transition stress‑testing toolkit

Toolkit for a greener regulatory policy

This toolkit supports governments in strengthening and adapting their regulatory frameworks to drive better regulation for the planet. Covering the design, delivery and evaluation of regulations, this toolkit emphasises a holistic and systematic approach to regulatory policy. This emphasis is crucial given the rapid pace of climate change and environmental crises, requiring an systemic, inclusive, and adaptive to regulation to fully harness the potential of better regulation for the planet (OECD, 2023[1]). Acknowledging that successful environmental action requires a significant shift, this toolkit supports governments in placing the environmental goals at the core of their decision-making within each stage of the regulatory policy cycle.

Environmental goals will remain aspirational if climate and other environmental considerations are not integrated throughout the entire regulatory policy cycle. Developing appropriate institutional arrangements, culture, and working methods is a pre-condition for regulatory policy to support the green transition. Policymakers should consider the following criteria at all stages of the regulatory policy cycle:

• Political commitment: Regulatory frameworks should demonstrate clear and credible commitment to long-term climate goals and other environmental objectives, while also recognising and addressing complementary (and sometimes conflicting) policy priorities. Supporting the green transition "by default" should be balanced with economic, social, and development goals, ensuring that these priorities are mutually reinforcing. Such commitment should be reflected in official communication, guidance manuals, and other relevant documents, reflecting a whole-of-government effort to embed environmental considerations into legislation and institutional practices.

• Long-term vision: Governments should adopt institutional mechanisms to embed climate considerations with clear objectives and a long-term roadmap. For example, policymakers should consider the significance of discount rates and prioritise addressing long-term environmental risks within regulatory frameworks.

• Whole-of-government approach: A whole-of-government approach is essential for governments to effectively achieve environmental goals due to the interconnected nature of environmental challenges and the need for comprehensive, co-ordinated efforts. Environmental issues often span multiple sectors, and effective solutions require co-operation across diverse policy areas.

• Environmental impacts: Policymakers should systematically assess the environmental effects of proposed and existing laws and regulations, including direct, indirect, and cumulative impacts on ecosystems, biodiversity, natural resources, climate change, and other related environmental areas. They should also ensure environmental impacts are given equal consideration alongside economic and social ones, and impact assessments should be clear about what the trade-offs are between the environment and other objectives.

• Tools for greener rules: To the extent possible, governments should progressively employ evidence-informed methodologies and tools for assessing environmental impacts, considering uncertainties, and integrating diverse sources of knowledge into regulatory decision-making processes – such as foresight methodologies and distributional analysis.

• Data availability and quality: Governments should prioritise efforts to improve data collection, sharing, and analysis related to environmental indicators and impacts. Information and communication technologies should be used to maximise co-ordination and information-sharing – as well as optimal use of resources.

• Stakeholder engagement: Policymakers should engage with a wide range of stakeholders at all stages of the regulatory policy cycle. Stakeholder engagement in policymaking is key for achieving a range of policy outcomes, including a green and just transition. People have a stake in environmental policy issues, both for their own interests and the sake of the environment (Haddaway, 2017[4]). At the same time, businesses and other stakeholder groups can provide valuable data and feedback on implementation issues to inform the legislation at hand.

• Monitoring and evaluation: Regulatory frameworks should include flexible monitoring and evaluation mechanisms to adapt to rapidly evolving conditions and ensure the effectiveness and efficiency of regulatory measures in achieving environmental objectives.

• Flexibility and adaptive approach: The complex and changing nature of environmental at challenges requires flexible and adaptive regulatory frameworks. Regular reviews and increased flexibility of processes and tools will allow governments to continuously evaluate existing policies and may lead to more discretion in decision-making and case-by-case trade-offs. Acknowledging that current needs and challenges warrant a significant shift in regulatory policy and governance, government should also move from the traditional “regulate and forget” toward an approach to “adapt and learn” (OECD, 2021[5]).

• International regulatory co-operation: Countries cannot effectively deal with cross border environmental challenges such as climate change and transboundary air- and water pollution solely through domestic action. Governments should co-operate internationally to effectively address global challenges in their complexity and multidimensional nature.

• Capacity-building: Capacity and skills are key enabling factors for regulatory policy that supports the green transition. Ensuring that regulators have the right knowledge and skills, supported by sufficient financial resources can have an important impact on their ability to deliver on new roles and expectations.

Principles for applying the criteria

In applying the above-mentioned criteria, policymakers are invited to consider the following principles:

• Evidence-based approach: Regulatory action should be driven by evidence. Environmental challenges require to systematically consider domestic and international evidence at different stages of the regulatory policy cycle.

• Proportionality: The nature and scope of regulatory action should be proportionate to the significance of regulation and/or the degree of public interest or sensitivity entailed (OECD, 2020[6]). The proportionality principle states that efforts should be proportionate to anticipated impacts. It allows authorities to more effectively allocate resources to policy-making efforts. For example, the degree to which environmental impacts are considered during any particular stage of the regulatory policy cycle must match the significance, political and legal nature, and sectoral context of the legislative proposal. The approach thus requires more comprehensive evidence on prospective rules with significant impacts, as they are likely to entail commensurately higher risks. RIAs – as well as stakeholder engagement and EPE – should not be undertaken if their costs outweigh the benefits of improving policy (OECD, 2020[7]).

Challenges in applying the criteria

In applying the above-mentioned criteria, policymakers may encounter the following challenges:

• Broad range of environmental impacts: The term “environmental impacts” encompasses a wide range of issues (such as air and water pollution, deforestation, biodiversity loss, climate change, soil degradation, and waste management), making it challenging to quantify all of them, let alone to capture them within a single metric.

• Data limitations, time lags and measurement uncertainties: Without access to reliable data, policymakers are unable to understand the full extent of environmental challenges and the impacts of regulatory actions, hindering the design of effective regulations and eroding public trust. Addressing this obstacle requires investment in improved data collection methods, enhanced monitoring and evaluation systems, and greater data-collection and data-sharing collaboration between policymakers, scientists, and stakeholders to ensure that regulatory interventions are based on accurate information and effectively address pressing environmental concerns. In addition, policymakers should have the necessary capacity and skills for data collection and analysis.

• Balancing risks and considering risk-risk trade-offs: Policymakers face significant challenges in balancing competing objectives and trade-offs, particularly between environmental and economic considerations. A key issue is striking an appropriate balance between precautionary measures, such as prohibitions and environmental licensing, and the potential societal benefits of environmental action and innovations. When assessing these trade-offs, it is crucial for policymakers to employ an approach that goes beyond quantitative welfare impact estimates, and incorporates legal, ethical, and equity considerations, ensuring a more holistic evaluation that accounts for intangible factors and long-term societal values. Furthermore, policymakers should account for risk-risk trade-offs, considering how reducing one type of risk may inadvertently lead to new risks elsewhere, ensuring that regulations are designed with a comprehensive understanding of all potential consequences.

Assessment questions

The following assessment questions, organised along the regulatory policy cycle, are designed to evaluate the extent to which the assessed regulatory framework(s) is ready to support the green transition.

Embedding environmental considerations into regulatory design

Regulatory impact assessments (RIA) consist of an examination of potential impacts, costs, and benefits of a range of regulatory options. RIAs are important for mitigating regulatory failure by helping to illustrate when there is no case for regulating, when there is a clear need, or when there are key risks (OECD, 2012[8]). RIAs help regulators identify the most impactful regulatory approach that best positions the government to deliver on its promises. Regulators can also use RIAs to better anticipate unintended negative impacts of intervention – including impacts that can disproportionately affect underrepresented groups and the environment and damage the trust that people have in the government’s decision-making.

To support policymakers in effectively designing and implementing RIA systems, the OECD has developed the OECD RIA Best Practice Principles (OECD, 2020[6]). The principles provide a framework for decision makers, policymakers, civil servants and other practitioners in the public sector to progressively enhance their RIA processes, and align with international best practice.

RIA is a powerful tool for regulatory design that helps to integrate environmental concerns, alongside economic and social concerns, in different policy areas. Embedding climate and other environmental considerations at the ex ante impact assessment stage is crucial for the development of new regulations positively influencing environmental goals. As part of the RIA process, policymakers should assess the environmental costs and benefits of different policy options and consult with relevant stakeholders to inform and identify the option most beneficial to the environment.

Policymakers are invited to consider the following assessment questions:

Deciding to regulate

• Is there a requirement to consider existing national and international instruments when deciding to regulate?

  • If so, please provide the official reference.

• Are existing national and international instruments considered in practice when deciding to regulate?

• If so, please provide an example.

Identifying and assessing proposed solutions

• Is there a requirement to identify and assess different regulatory and non-regulatory options that could lead to better environmental outcomes?

  • If so, please provide the official reference.

• Are different regulatory and non-regulatory options that could lead to better environmental outcomes identified and assessed in practice?

• If so, please provide an example.

• Is there a requirement to assess environmental impacts when developing new regulations or amending the existing ones?

  • If so, please provide the official reference.

  • If so, does the requirement apply to all laws and regulations, or is there a specific threshold for the requirement to enter into force?

  • If so, for which of the following areas:

    • Climate change (e.g., impact on the annual averages of atmospheric CO2 concentration)

    • Biosphere integrity.

    • Novel entities (e.g., impact on the concentration of synthetic chemicals and substances, and anthropogenically mobilised radioactive materials, etc.)

    • Stratospheric ozone depletion (e.g., impact on ozone layer)

    • Freshwater change (e.g., impact on surface and groundwater, as well as plant-available water)

    • Ocean acidification (e.g., impact on the accumulated carbonate ion concentration in surface seawater)

    • Land system change (e.g., impact on regional biomes, i.e., forest coverage)

    • Sustainable development goals (SDGs)

    • Other.

      • If so, please specify.

  • If so, does the requirement include the consideration of transboundary environmental impacts?

    • If so, please specify for which area.

• Are environmental impacts assessed in practice when developing new regulations or amending the existing ones?

• If so, please specify for which relevant areas and provide an example.

  • If so, are transboundary environmental impacts considered in practice within this analysis?

• In assessing regulations with environmental impact(s), is there a requirement to quantify environmental costs and benefits?

  • If so, please provide the official reference for the requirement.

• In assessing regulations with environmental impact(s), are environmental costs and benefits quantified in practice?

• If so, please provide an example.

• In assessing regulations with environmental impact(s), is there a requirement to use a discount rate?

  • If so, please provide the official reference for the requirement.

• In assessing regulations with environmental impact(s), is a discount rate used in practice?

  • If so, what is that rate for environmental policy issues and is it different to other discount rates?

  • If so, is the same discount rate used across the government?

• If so, please provide an example.

• In assessing regulations with environmental impact(s), is there a requirement to use any particular kind of appraisal methodology?

  • If so, please provide the official reference for the requirement.

• In assessing regulations with environmental impact(s), which appraisal methodologies are used in practice?

• Please select all that apply and provide an example for each selected:

  • Cost benefit analysis

  • Cost effectiveness analysis

  • Multi-criteria analysis

• In assessing regulations with environmental impact(s), is there a requirement to analyse their distributional impacts, and (when relevant) factor this into the impact analysis?

  • If so, please provide the official reference for the requirement.

• In assessing regulations with environmental impact(s), are their distributional impacts consistently analysed in practice?

• If so, please provide an example.

Selecting and finalising a preferred solution

• In selecting a preferred solution, is there a requirement to consider any potential environmental risks?

  • If so, please provide the official reference for the requirement.

• In selecting a preferred solution, are any potential environmental risks considered in practice?

  • If so, are risk-risk trade-offs assessed?

• If so, please provide an example.

• Once a preferred solution is chosen, is there a requirement to consider mitigation measures – such as to reduce any identified/potential cumulative environmental impact(s)?

  • If so, please provide the official reference for the requirement.

  • If so, does the requirement include an obligation to consider adaptation to changing environmental circumstances?

• Once a preferred solution is chosen, are mitigation measures – such as to reduce any identified/potential cumulative environmental impact(s) – considered in practice?

• If so, please provide an example.

• Once a preferred solution is chosen, is there a requirement to identify inconsistencies with any environmental laws/policies?

  • If so, please provide the official reference for the requirement.

  • If so, does the requirement include an obligation to consider how these could be removed or minimised?

• Once a preferred solution is chosen, are inconsistencies with any environmental laws/policies identified in practice?

• If so, please provide an example.

• Once a preferred solution is chosen, is there a requirement to determine the ex post review and its timing for the regulation at hand (i.e., the set date to review the regulation)?

  • If so, please provide the official reference for the requirement.

  • If so, is this the same for all laws and regulations?

• If so, are data requirements considered? (e.g., as part of wider consideration of the type of ex post review that would be most appropriate)

• Once a preferred solution is chosen, is the ex post review and its timing for the regulation at hand determined in practice?

• If so, please provide an example.

Consultation

• Is there a requirement to conduct stakeholder consultations to inform the design or amendment of laws and regulations with environmental impacts?

  • If so, please provide the official reference for the requirement.

  • If so, at what stage of the RIA process are stakeholders required to be involved?

• Early stages? If so, please specify.

  • Late stage? If so, please specify.

• If so, are consultations open to the general public?

  • If so, are the views of participants in the consultation process made public?

• Are stakeholder consultations to inform the design or amendment of laws and regulations with environmental impacts conducted in practice?

• If so, please provide an example.

• If so, how are members of the public invited to participate? Please specify.

• If so, how can members of the public submit comments? Please specify.

  • If so, are members of the public systematically informed in advance that a consultation will take place?

    • If so, how? Please specify.

    • If so, what sort of information (if any) is given to the members of the public in anticipation? Please specify.

• When a specific underrepresented group(s) is identified within the government decision to regulate, is there a requirement to consult that group(s) on the preferred solution?

  • If so, please provide the official reference for the requirement.

  • If so, please specify how the underrepresented group is defined.

  • If so, at what stage of the RIA process is the stakeholders required to be involved?

• Early stages? If so, please specify.

  • Late stage? If so, please specify.

• Are specific underrepresented groups consulted in practice?

• If so, please provide an example.

• Is there a requirement to collaborate with non-governmental organizations and academic institutions to leverage expertise and knowledge in the environmental sector?

  • If so, please provide the official reference for the requirement.

  • If so, at what stage of the RIA process are stakeholders required to be involved?

• Early stages? If so, please specify.

  • Late stage? If so, please specify.

• Are non-governmental organizations and academic institutions engaged in practice?

• If so, please provide an example.

Co-ordination

• Is there a dedicated body (or bodies) responsible for assisting ministries and regulators with considering the environmental impacts of new or amended regulations?

  • If so, please specify.

• Is there an oversight body responsible for assessing the quality of the assessments of regulations with environmental impact(s) conducted by government ministries and agencies when designing or updating regulations?

  • If so, please specify.

• Are there established mechanisms in place to facilitate the exchange of knowledge and best practices for assessing environmental impacts between relevant national entities, such as the Ministry of Environment (or equivalent)?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

• Are there established mechanisms in place to facilitate the exchange of knowledge and best practices for assessing environmental impacts with relevant international entities?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

Capacities

• Is the competency of staff members in analysing environmental impacts, and the overall capacity of the organisations they work in, regularly assessed?

  • If so, please specify.

• Are staff members systematically trained in analysing environmental impacts?

  • If so, please specify.

• Is there written guidance available for staff members regarding the assessment of environmental impacts in the RIA process?

  • If so, please specify.

  • If so, is this guidance available online?

• Do ministries have the right experts (or expertise) to assess the possible environmental impacts or regulations? And, if not, are there mechanisms to find and recruit talent?

  • If so, please specify.

• Are there sufficient capacities in the administration to transpose international commitments to national legislation?

  • If so, please specify.

Implementing regulation for the environment:

Regulatory delivery covers the implementation (e.g., permitting and licensing applications), monitoring (e.g., market surveillance), supervision (e.g., inspections, self-reported compliance) and enforcement (e.g., sanctions, corrective measures) of regulations.

Appropriate regulatory delivery is essential to manage environmental hazards effectively and efficiently and to close the compliance gap on environmental regulation. For example, permitting can promote green innovation by enabling businesses to carry out environmentally friendly activities (OECD, 2023[1]). This is particularly important in the context of the green transition, which requires a rapid deployment of low emissions infrastructure.

Policymakers are invited to consider the following assessment questions:

Licensing and permitting

• Is there a requirement to adopt an evidence-informed and risk-based approach to issuing the licensing and permitting of economic or other relevant types of activities with environmental risks?

  • If so, please provide the official reference for the requirement.

• Are evidence-based risks considered for the issuing of licenses and permits of economic or other relevant types of activities with environmental impacts in practice?

• If so, do you prioritise different levels of risks to protect public interest?

• If so, please specify how you define and identify risks.

• If so, please provide an example.

• Is there a requirement to ensure that regulatory costs stemming from licensing and permitting of economic or other relevant types of activities with environmental impacts are proportionate to the risks of those activities?

  • If so, please provide the official reference for the requirement.

• In practice, are regulatory costs stemming from licenses and permits of economic or other relevant types of activities with environmental impacts proportionate to the risks of those activities?

• If so, please provide an example.

• Is there a requirement to develop any efforts to reduce time-to-market approval, testing, and licensing for environmentally friendly technology?

  • If so, please provide the official reference for the requirement.

• Are there any efforts to reduce time-to-market approval, testing, and licensing for environmentally friendly technology being developed in practice?

• If so, please provide an example.

  • If so, please select all that apply:

    • Prior approval

    • Guidelines

    • Using test results from other countries

• Is there a requirement to promote compliance in getting licenses and permits for economic or other relevant types of activities with environmental impacts/risks?

  • If so, please provide the official reference for the requirement.

• Are there efforts being developed in practice to actively promote compliance with issuing licenses and permits for economic or other relevant types of activities with environmental impacts/risk(s)?

• If so, please provide an example.

  • If so, do these efforts include:

    • Providing informational resources online.

• Setting up advisory services facilitating an "exploratory dialogue".

  • Other, please specify.

Inspection and enforcement

• Is there a requirement obliging relevant inspection and enforcement authorities to base their activity (e.g., inspections) on environmental risk criteria (e.g., environmental damage)?

  • If so, please specify (e.g., in which circumstance).

  • If so, please provide the official reference for the requirement.

• Are inspection and enforcement activities in practice being planned based on environmental risk criteria?

• If so, please provide an example.

• Is there a requirement to feed back into the relevant data management system the environmentally relevant information that authorities collect during inspections?

  • If so, please provide the official reference for the requirement.

• Is the relevant information that authorities collect during inspections in practice being fed back into the environmentally relevant data management system?

• Is so, please provide an example.

• Is there a requirement obliging inspection and enforcement authorities to share environmentally-relevant data and records or participate in joint alert systems with other inspection and enforcement authorities?

  • If so, please provide the official reference for the requirement.

• Are inspection and enforcement authorities in practice sharing environmentally-relevant data and records or participating in joint alert systems with other inspection and enforcement authorities?

• If so, please provide an example.

• Is there a requirement to promote compliance with regulations addressing environmental risk(s)?

  • If so, please provide the official reference for the requirement.

• Are there efforts being developed in practice to actively promote compliance with regulations addressing environmental risk(s)?

• If so, please provide an example.

  • If so, do these efforts include:

    • Providing informational resources online.

• Setting up advisory services facilitating an "exploratory dialogue".

  • Other, please specify.

• Is there a requirement to follow an evidence and risk-based approach to managing stakeholders’ complaints addressing environmental risks?

  • If so, please provide the official reference for the requirement.

• Are stakeholders’ complaints addressing environmental risks managed in practice following an evidence and risk-based approach?

• If so, please provide an example.

• Is there a requirement to follow a proportionate and risk-based approach to imposing sanctions and/or other control measures for violations of regulations addressing environmental risks?

  • If so, please provide the official reference for the requirement.

• Are sanctions and/or other control measures for violations of regulations addressing environmental risks imposed in practice in a proportionate and risk-based manner?

• If so, please provide an example.

Monitoring

• Is there a requirement to monitor the status of environmental areas (such as soil, waters, etc) vis-à-vis the established environmental protection system or the environmental objectives stemming from regulation(s)?

  • If so, please provide the official reference for the requirement.

• Are environmental areas monitored in practice to assess their status vis-à-vis the established environmental protection system or the environmental objectives stemming from regulation(s)?

• If so, please provide an example.

• Is there a requirement for the environmentally-relevant information collected during the monitoring to inform appropriate follow-up regulatory delivery activities (such as licensing and/or inspections)?

  • If so, please provide the official reference for the requirement.

• Is the environmentally-relevant information collected during the monitoring in practice used to inform appropriate follow-up regulatory delivery activities (such as licensing and/or inspections)?

• If so, please provide an example.

Consultation

• Is there a requirement to conduct stakeholder consultations in designing enforcement strategies for regulations with environmental impact?

  • If so, please provide the official reference for the requirement.

• If so, are consultations open to the general public? Please specify.

  • If so, are the views of participants in the consultation process made public?

• Are stakeholder consultations in designing enforcement strategies for regulations with environmental impact conducted in practice?

• If so, please provide an example.

• If so, how are members of the public invited to participate? Please specify.

• If so, how can members of the public submit comments? Please specify.

  • If so, are members of the public systematically informed in advance that a consultation will take place?

    • If so, how? Please specify.

    • If so, what sort of information (if any) is given to the members of the public in anticipation? Please specify.

• Is there a requirement to collaborate with non-governmental organizations and academic institutions to leverage expertise and knowledge in the environmental sector?

  • If so, please provide the official reference for the requirement

• Are non-governmental organizations and academic institutions engaged in practice?

• If so, please provide an example.

• When a specific underrepresented group(s) is identified as stakeholders in regulatory delivery activities, is there a requirement to consult that group(s) on the preferred solution?

  • If so, please provide the official reference for the requirement.

  • If so, please specify how the underrepresented group is defined.

  • If so, at what stage of the delivery process is the underrepresented group involved? Please specify

• Are specific underrepresented groups consulted in practice?

• If so, please provide an example.

Co-ordination

• Are there mechanisms to co-ordinate regulatory enforcement and inspections activities between regulatory agencies when addressing the operation of economic or other relevant types of activities with environmental impacts?

  • If so, please specify.

• Are there mechanisms to co-ordinate regulatory licensing and permitting activities between regulatory agencies when addressing the operation of economic or other relevant types of activities with environmental impacts?

  • If so, please specify.

• Are practices for assessing environmental risks and impacts consistently used by all relevant agencies?

  • If so, please specify.

• Are there mechanisms to share relevant environmental data to allow regulatory activities to be performed in an effective way?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

• Are there mechanisms to share knowledge or otherwise promote best practices in embedding environmental concerns in the implementation of regulations across the government?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

• Are there established mechanisms in place to facilitate the exchange of knowledge and best practices for assessing environmental impacts with relevant international entities?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

Capacities

• Do regulatory delivery agencies dealing with regulations addressing environmental risks have the right experts (or expertise)? And, if not, are there mechanisms to find and recruit talent?

  • If so, please specify.

• Is the competency of staff members from delivery agencies dealing with regulations addressing environmental risks, and the overall capacity of the organisations they work in, regularly assessed?

  • If so, please specify.

• Is the performance of regulatory delivery agencies dealing with regulations addressing environmental risks regularly assessed?

  • If so, please specify.

• Is there adequate guidance and/or manuals available for staff members for embedding environmental considerations into the delivery of regulations?

  • If so, do these include guidance on how to use risk-based approaches?

    • If so, please specify.

  • If so, are these guidelines and/or manuals periodically updated (as needed)?

• Are staff members systematically trained in embedding environmental considerations into the delivery of regulations?

  • If so, please specify.

Reviewing regulations for effective environmental action

Even where regulations are rigorously tested before being introduced or amended, not all of their effects can be known with certainty. The regulatory process is inherently experimental, relying to some extent on judgments about causal relationships and responses. The environment changes quickly, markets evolve, technologies evolve, and societal preferences, values, and behaviours change over time. Moreover, the very accumulation of regulations over time can lead to interactions that exacerbate costs, reduce benefits, or have other unintended consequences.

Ex post reviews are a powerful tool to ensure that regulations remain effective, efficient and aligned with their intended goals over time. It also offers an insight into the relationship of one or more regulations between each other, and with the broader existing legal system framework. When elaborating an ex ante review, assumptions must be made in order to calculate the impact – in particular the cost and benefits – of the new or amended regulation. However, it is only through ex post assessment that an estimation of its actual impacts can be drawn. Given the urgency of environmental threats, adopting measures that ensure that regulations, once in place, stay fit-for-purpose, encourage investment in innovation and continue to support environmental goals, is of utmost priority. As environmental challenges evolve, regulations may need to be updated to reflect new scientific findings or international commitments. Ex post evaluations allow for the continuous improvement of such regulations, ensuring they remain aligned with current ecological realities and policy objectives. Balancing competing objectives and trade-offs is of particular importance in this regard.

Ex post evaluation should not be considered as the final stage in the life of regulations, but as a deliberate and responsible “loop back” into the regulatory cycle, providing an understanding of areas for potential improvement and issues with implementation (OECD, 2015[9]). The OECD Best Practice Principles for Reviewing the Stock of Regulation offers a practical and flexible framework for countries to follow when reviewing laws. The principles provide assistance to countries in establishing their ex post evaluation regimes, whilst also providing practical guidance about relevant methodologies to adopt.

Policymakers are invited to consider the following assessment questions:

Preparatory work before the ex post evaluation

• Is there a requirement to prioritise the ex post revision of regulations with foreseen environmental impacts?

  • If so, please provide the official reference for the requirement.

• Is the revision of regulations with foreseen environmental impacts prioritised in practice?

• If so, please provide an example.

Conducting an ex post evaluation

• Is there a government-wide requirement to conduct periodic ex post evaluations of existing regulations?

  • If so, please provide the official reference for the requirement.

  • If so, is the period specified within the requirement?

    • If so, please specify.

  • If so, does the requirement apply to all laws and regulations or is there a threshold for the requirement to enter into force?

    • If so, please specify.

  • If so, does the requirement specify any “type” of ex post reviews to be follow or prioritised by relevant authorities (e.g. portfolio/bundle approach)?

    • If so, please specify.

  • If so, does the requirement explicitly mandate the analysis of the (potential) environmental impacts of the regulation(s) being reviewed?

    • If so, please specify.

  • If so, does the requirement explicitly mandate the consideration of international instruments when reviewing regulations?

    • If so, please specify.

• Are periodic ex post evaluations of existing regulation(s) conducted in practice?

  • If so, is the period specified within the requirement (if any) followed systematically?

    • If so, please specify.

  • If so, are the environmental impacts (if any) systematically assessed?

• In the past 5 years, have any major principle-based reviews been conducted to identify which regulations warrant review or potential reform to ensure environmental sustainability?

  • If so, please specify.

• In the practice of conducting ex post assessments from an environmental perspective (and where appropriate): Are indirect/second order impacts for the environment assessed?

• If so, please provide an example.

• In the practice of conducting ex post assessments from an environmental perspective (and where appropriate): Are regulatory barriers to green investment and innovation assessed? (e.g. whether regulations give rise to unnecessary costs)

• If so, please provide an example.

• In the practice of conducting ex post assessments from an environmental perspective (and where appropriate): Are appropriate methodologies used to e.g. quantifying environmental impacts?

• If so, please provide an example.

• Is there a requirement to apply the one-in, “X”-out rule?

  • If so, what is the value of “X”?

  • If so, are there exceptions for regulations that are costly but beneficial for the environment?

Follow-up measures after the ex post evaluation

• Is there a requirement to prioritise competing objectives in favor of environmental ones (when appropriate)?

  • If so, please provide the official reference for the requirement.

• Are competing objectives prioritised in favor of the environment in practice?

  • If so, please provide an example.

• Should the findings of the ex post assessment reveal the need to revise a legislation (or a set thereof), is there a requirement to do so?

  • If so, please provide the official reference for the requirement.

• Are regulations revised in practice, should the findings of the ex post assessment merit revision?

  • If so, please provide an example.

Consultation

• Is there a requirement to conduct stakeholder consultations to inform the ex post assessment of legislation?

  • If so, please provide the official reference for the requirement.

• If so, at what stage of the ex post assessment process are stakeholders required to be involved?

• Early stages?

  • If so, please specify.

    • Late stage?

      • If so, please specify.

• If so, are consultations open to the general public?

  • If so, please specify.

  • If so, are the views of participants in the consultation process made public?

    • If so, please specify.

• Are stakeholder consultations to inform the ex post assessment of legislation conducted in practice?

• If so, please provide an example.

• If so, how are members of the public invited to participate? Please specify.

• If so, how can members of the public submit comments? Please specify.

  • If so, are members of the public systematically informed in advance that a consultation will take place?

    • If so, how? Please specify.

    • If so, what sort of information (if any) is given to the members of the public in anticipation? Please specify.

• When a specific underrepresented group is identified, is there a requirement to consult that group on how the regulation has impacted them?

  • If so, please provide the official reference for the requirement.

  • If so, please specify how the underrepresented group is defined.

• If so, at what stage of the ex post assessment process is the underrepresented group involved?

• Early stages? If so, please specify.

  • Late stage? If so, please specify.

• Are specific underrepresented groups consulted in practice?

• If so, please provide an example.

• Is there a requirement to collaborate with non-governmental organizations and academic institutions to leverage expertise and knowledge in the environmental sector?

  • If so, please specify.

• If so, at what stage of the ex post assessment process are they involved? Please specify

• Are non-governmental organizations and academic institutions engaged in practice?

• If so, please provide an example.

Co-ordination

• Is there an oversight body responsible for reviewing the quality of ex post evaluations from an environmental perspective?

  • If so, please specify.

• Is there a co-ordination mechanism for ex post evaluation efforts across the public administration from a whole-of-government perspective (e.g., a body, meeting format or network)?

  • If so, please specify.

• Are there mechanisms to share knowledge or otherwise promote best practices in embedding environmental concerns in the review of legislation across the government?

  • If so, please select all that apply:

    • Benchmarking of performances

    • Reports on good practices and lessons learnt

• Workshops, seminars and conferences

  • Other, please specify.

• Are there established mechanisms in place to facilitate the exchange of knowledge and best practices for assessing environmental impacts with relevant international entities?

  • If so, please select all that apply:

    • Benchmarking of performances.

    • Reports on good practices and lessons learnt.

• Workshops, seminars and conferences.

  • Other, please specify.

• As appropriate, when conducting reviews of the regulatory stock from an environmental perspective, do you take stock of new approaches adopted across jurisdictions and analyse the costs and benefits of diverging from international practice?

  • If so, please specify.

Capacities

• Is the competency of staff members in reviewing regulations from an environmental perspective, and the overall capacity of the organisations they work in, regularly assessed?

  • • If so, please specify.

• Are there one or several dedicated evaluation units to assist officials in conducting ex post evaluations from an environmental perspective?

  • If so, please specify.

• Is there written guidance provided on considering the environment in ex post evaluations?

  • If so, please specify.

• If so, is the guidance material available online?

  • If so, please specify

• Are staff members systematically trained in reviewing regulations from an environmental perspective (as needed)?

  • If so, please specify.

• Are there mechanisms to ensure public bodies have the right experts (or expertise) to assess the possible environmental impacts or regulations?

  • If so, please specify.