Environment at a Glance Indicators

Climate change

Context

Human activities, particularly greenhouse gas (GHGs) emissions, disrupt the earth-atmosphere system by enhancing the natural greenhouse effect. This leads to rising temperatures and broader climate disruption. Changes in land use and forestry practices also influence the balance of GHGs, as they affect the capacity of carbon sinks to capture or release emissions. Carbon dioxide (CO₂), primarily from fossil fuel combustion and deforestation, is the main contributor to climate change and comprises the largest share of global GHG emissions.

National emissions are increasingly influenced by global demand and supply chains. As carbon-intensive production is relocated abroad, domestic emission reductions may be partially or wholly offset by increases elsewhere. This underscores the need to assess emissions from both production and consumption perspectives.

Climate change poses serious risks to green growth and sustainable development. It threatens ecosystems, water resources, human health and the frequency and intensity of extreme weather events. These effects have major implications for food security, economic output and overall well-being.

Policy challenges

The main objectives are to reduce GHG emissions and stabilise their atmospheric concentrations at a level that avoids dangerous climate interference, while also managing risks and adapting to the effects of climate change.

• Achieving these goals requires implementing effective low-carbon strategies at both national and international levels. This includes decoupling emissions from economic growth, increasing the share of renewable energy in the energy mix, and improving energy efficiency across sectors.

• Because of global value chains and trade dynamics, domestic mitigation efforts must be considered in a global context. Understanding carbon flows associated with international trade and final domestic demand is essential for designing effective policies.

• A comprehensive policy mix is needed. This includes market-based instruments (e.g. carbon pricing, environmental taxation, fossil fuel subsidy reforms) and non-market-based instruments (e.g. emissions standards and other regulatory approaches).

• Beyond climate specific measures, policies in sectors such as transport, housing, agriculture and development co-operation must align with climate goals. Co-benefits such as cleaner air and better health outcomes should be taken into account.

Measuring progress and performance

Progress can be assessed in relation to both national objectives and international commitments. Climate action is a core part of the 2030 Agenda for Sustainable Development, particularly under Goal 13: “Take urgent action to combat climate change and its impacts”; Goal 12: “Ensure sustainable consumption and production patterns”; Goal 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation” and Goal 7: “Ensure access to affordable, reliable, sustainable and modern energy for all”.

The United Nations Framework Convention on Climate Change (1992) is the main international agreement that establishes the basis for global climate governance. It includes:

• The Kyoto Protocol (1997) that sets binding and differentiated emission reduction targets for six GHGs for 2008-12. It has been ratified by 177 parties, including all but two OECD countries, and has been in force since 2005. 37 industrialised countries and the European Union committed to reduce GHG emissions by an average of 5% below 1990 levels. The "Doha Amendment to the Kyoto Protocol" (2012), includes new commitments for the period 2013-20 and a revised list of GHGs. Parties committed to reduce GHG emissions by an average of at least 18% below 1990 levels over 2013-20.

• The Paris Agreement (2015) that strengthens the global response to the threat of climate change. The objective is to keep the average global temperature rise this century well below 2°C and as close as possible to 1.5°C above pre-industrial levels. Parties have expressed their commitments to 2025 or 2030 through nationally determined contributions (NDCs), including a regular report on their emissions and implementation efforts.

In September 2009, Leaders of the Group of Twenty (G20) economies also committed to “phase out and rationalize over the medium-term inefficient fossil fuel subsidies while providing targeted support for the poorest” in support of these goals. To follow up on this commitment, G20 members have initiated a voluntary peer-review reporting process.

Indicator groups

The indicators presented here include the following:

 

Emissions and drivers
Greenhouse gas emissions: levels, intensities, by source GHG emissions footprint: production-based and demand-based GHG emissions, intensities, productivities Energy use: energy supply and mix, intensities, share of renewables
Impact & risks
Annual temperature change Annual precipitation change Population exposure to hot days Cropland exposure to drought
Policy measures and instruments
Climate actions and policies Taxes relevant for climate change: revenue raised and tax base structure Fossil-fuel support: fossil-fuel subsidies and other support measures Net effective carbon rate Official development assistance for climate: mitigation, adaptation

Greenhouse gas emissions

Key messages

• After a 9% decrease in 2020 due to the COVID-19 pandemic, GHG emissions in OECD countries rebounded by 4% in 2021 and then resumed their downward trend.

• Emissions fell by 2% in 2023 compared to 2022, mainly driven by lower electricity consumption and reduced heat production.

• Despite these improvements, the pace of progress remains insufficient to meet international climate goals, including the Paris Agreement targets.

Main trends and recent developments

Since 2010, emissions have been declining in most OECD countries, driven by stronger climate policies, cleaner energy sources, improved technologies and changing consumption patterns. However, progress varies significantly across countries.

OECD countries have achieved some decoupling of GHG emissions from GDP growth. Emissions peaked in 2007 and then declined by 9% by 2017. The COVID‑19 pandemic accelerated this trend, with emissions dropping by a further 9% in 2020. After a rebound of 4% in 2021, emissions fell again by 2% in 2023 compared to 2022.

Emission intensities per unit of GDP and per person have decreased in almost all OECD countries since 2005, reflecting both structural changes in the economy and climate policy efforts. Most OECD countries met their emission reduction commitments under the Kyoto Protocol for the periods 2008-12 and 2013‑20.

The energy sector remains the largest source of GHG emissions in OECD countries, accounting for 27% of total emissions on average, followed by transport (25%), manufacturing (12%), agriculture (10%), industrial processes (8%) and waste (3%). Since 2007, energy sector emissions have decreased slightly, while those from transport and agriculture have increased. In some countries such as Costa Rica, Lithuania, Luxembourg, Portugal, Slovenia and Switzerland, transport accounts for more than one-third of emissions. In New Zealand and Ireland, agriculture is the largest source, exceeding 35%.

The pace of emission reductions varies significantly across OECD countries, whether measured in absolute levels, per person amounts or per unit of GDP. These differences reflect variations in economic structure, energy mix, demographics, pricing mechanisms and national policy efforts. For example, in 2023, Estonia significantly reduced its GHG emissions (-23%) thanks to reductions in electricity and heat generation from oil shale, while Germany cut its emissions (-10%) due to a significant drop in coal-fired power generation, the expansion of renewable energy generation and a drop in energy demand. Poland, Italy, France and Spain also reduced their GHG emissions by more than 6%. By contrast, Türkiye’s emissions increased by 7% largely from manufacturing industries and construction, transport, and electricity consumption from the residential and building sectors.

Indicators

Comparability and interpretation

Data on national GHG emissions display a good level of comparability across countries. However, reductions in national emissions may be the result of offshoring production and associated emissions. Thus, indicators based solely on domestic emissions per unit of GDP or per person, may not fully reflect countries’ overall climate impact.

For further details, see the metadata in the source databases.

GHG emissions footprint

Key messages

• Global GHG emissions rose by 33% between 2000 and 2020. In this period, demand-based emissions in OECD countries declined by 17%, reducing the OECD share of global demand-based emissions from 57% to 36%.

• OECD countries continue to be a net-importer of GHGs, as emissions from consumption exceed those from production.

• While global demand-based emissions per person increased by 4.4% between 2000 and 2020, they fell by 27% in OECD countries.

• GHG productivity (GDP per unit of emissions) improved by over 60% in OECD countries, both from production and demand perspectives, between 2000 and 2020, though progress varied across countries.

Main trends and recent developments

Overall, global demand-based GHG emissions (GHG footprint), which includes emissions embodied in final demand, increased by 33% between 2000 and 2020. In contrast, they declined by 17% in OECD countries. As a result, the share of OECD countries in global demand-based GHG emissions decreased from 57% in 2000 to 36% in 2020. In 2020, China, the United States, the European Union (EU27), India, Japan and Southeast Asian (ASEAN) countries were the largest producers and consumers of GHG emissions. Since 1995, both production and consumption of emissions have fallen in Japan, the United States and the European Union. Over the same period, there were significant increases in China, India and Southeast Asia.

A similar picture can be observed for production-based emissions: global production-based GHG emissions increased by 33% between 2000 and 2020, compared to a decrease of 16% in OECD countries. As a result, the share of OECD countries in global production-based GHG emissions decreased from 50% in 2000 to 31% in 2020.

OECD countries, as an aggregate, are net importers of GHGs (i.e. it consumes more GHG emissions through imported goods, than it produces), which means that non-OECD countries as a group are net exporters. OECD net imports grew from 1995 to reach a peak in 2006 and have been gradually declining ever since.

The difference in intensities is smaller, with global per person demand-based, energy-related emissions increasing by 4.4%, compared to a decrease of 27% in OECD countries over the same period.

Production- and demand-based GHG productivity increased by over 60% in OECD countries between 2000 and 2020. Differences among OECD countries are large, but all countries show increases over the period 2000-20, both for production-based and demand-based emissions.

Indicators

Comparability and interpretation

Estimates of greenhouse gas (GHG) emissions by industry, are based primarily on Air Emissions Accounts (AEA) and drawing on other sources of GHG emissions statistics. They are combined with OECD’s Inter‑Country Input-Output (ICIO) tables to produce estimates of emissions from consumption (or demand) perspectives. This allows the development of GHG footprint indicators, revealing the emissions associated with intermediate consumption, final consumption and capital formation expenditures along global production chains. The use of emissions statistics compiled under the System of Environmental Economic Accounting (SEEA) framework, which is based on the resident principle, allows for the calculation of production-based emissions by industry that cover not only CO₂ emissions from fuel combustion, but also non-fuel combustion emissions.

GHG footprint indicators reveal emissions embodied in domestic and international production networks, and emissions associated with final demand patterns from purchasers’ price perspectives for the period 1995 to 2020.

For further details, see the metadata in the source databases.

Energy use

Key messages

• In 2024, total energy supply in OECD countries remained below pre COVID-19 pandemic levels and was 1.4% lower than in 2022. Energy demand growth in 2023-24 was modest, at less than 1%.

• Energy intensity has continued to decline across OECD countries, both per person and per unit of GDP. However, due to high prices and weaker economic conditions in energy-intensive sectors, both per person and per GDP intensities increased in 2023-24.

• Fossil fuels still dominate energy supply in OECD countries, accounting for 76.6% in 2024. Although increasing, renewables accounted for only 13.1% of energy supply and 34.4% of electricity generation in 2024.

• Electricity consumption in OECD countries increased by 1.8% in 2024, following a drop in 2023 due to reduced industrial activity and milder weather.

Main trends and recent developments

In 2024, total energy supply in OECD countries remained below the ten-year average observed before the COVID-19 pandemic and was 1.4% below 2022 levels. Energy demand grew modestly in 2023-24 (by less than 1%), driven mainly by rising demand in the United States. Globally, energy demand grew by 2.2% in 2024 - faster than the average rate over the past decade. The increase was led by the power sector as electricity demand surged, driven by record temperatures, electrification and digitalisation. While some decoupling between growth in energy use and GDP has been achieved, results to date are insufficient to effectively reduce air and GHG emissions. Relative decoupling between TES and GDP is occurring in all regions of the OECD, however, in OECD Asia-Oceania, it began much later (2003) than in OECD Europe and OECD America (1990).

Renewables accounted for the largest share of the growth in global energy supply (38%), followed by natural gas (28%), coal (15%), oil (11%) and nuclear (8%) (IEA, 2025). Despite this, fossil fuels still dominate the energy mix in OECD countries, reflecting slow structural change. National differences remain significant, reflecting variations in economic structure and income, geography, energy policies and prices, and countries’ endowment in different types of energy resources.

Energy intensity has been declining OECD countries, both per person and per GDP, but the pace of improvement varies widely across countries. In 2023-24, energy intensity rose due to high prices and weaker economic conditions in energy-intensive sectors (IEA, 2025).

The supply structure varies considerably among OECD countries. It is influenced by demand from industry, transport and households, by national energy policies, and by national and international energy prices. Developments in TES were accompanied by changes in the fuel mix. OECD countries’ reliance on fossil fuels has declined since 2000, although it remains close to 77%. Renewables, although increasing, still play a relatively minor role in energy mixes, and represented 13.1% of total energy supply and 34% of electricity output in 2024. Biofuels and waste, followed by hydro represent the largest renewable sources. Globally, demand for all fuels and technologies grew in 2024, but non‑fossil sources increased the most (IEA, 2025). While the share of hydropower in electricity generation has stalled over the past decades, and even decreased since 2020, that of renewable energy from solar and wind sources doubled in the last 15 years.

Electricity consumption in OECD countries rose by 1.8% in 2024, after falling in 2023 due to lower industrial output and milder weather conditions. Rising demand came mainly from growth in the data centre sector and an uptick in industrial production alongside higher cooling demand during severe heatwaves. Electricity consumption in EU countries grew by 2.2% in 2024, compared with near-zero growth on average from 2003 to 2023 (IEA, 2025).

Indicators

Comparability and interpretation

Data quality is not homogeneous for all countries. In some countries, data are based on secondary sources, and where incomplete, estimates were made by the IEA. In general, data are likely to be more accurate for production and trade than for international bunkers or stock changes; and statistics for biofuels and waste are less accurate than those for traditional commercial energy data. Estonia strongly relies on domestically produced oil shale (transformed into other petroleum products and exported). This production is counted as negative to oil in total energy supply, resulting in a negative share in the energy mix. The high values for Iceland reflect a significant increase in the production of hydro- and geothermal power mainly used in aluminium smelters. The supply structure, which may vary considerably among countries is dependent on final demands by industry, transport and the household sector, and is highly influenced by national energy policies and endowments in energy resources.

For further details see the metadata in the source databases listed under data sources.

Impact and risks

Key messages

• Land surface temperatures in OECD countries have risen steadily over recent decades, in 2019-2023 they averaged 0.9°C above the 1981-2010 baseline.

• Exposure to extreme heat increased, with 12% more people in OECD and partner countries experiencing hot days in 2019-23 compared to the 1981-2010 period.

• Croplands are increasingly affected by droughts. Colombia, Mexico and Portugal are among the worst affected OECD countries, showing a more than 4% drop in cropland soil moisture relative to baseline period.

• Flood risks are significant in some countries. Around 20% of land in The Netherlands and Hungary is exposed to extreme river flooding.

Main trends and recent developments

For the first time in history, Earth has experienced a continuous 12-month period (through June 2024) during which the planet's average temperature exceeded 1.5°C above the pre-industrial baseline.1 Most OECD Member and partner countries are increasingly affected by hot days The countries with highest annual temperature change in 2023 are: Canada (2.2°C over the baseline climatology 1981-2010) and Switzerland (2.05°C above). Since 1979 the population in both OECD Member and OECD partner countries has been increasingly exposed to hot days, with an estimated 12% more people exposed to hot days in the period 2019-23 compared to the reference period 1981-2010.

Countries whose population was most exposed to hot days in 2019-23 include Saudi Arabia (98.3%), India (97.4%), Thailand (93.6%) and Israel (91%), totalling an estimated 1.4 billion people. Although exposure to extreme temperatures in countries such as Saudi Arabia and Israel was already historically high, the duration of exposure is increasing.

Across OECD Member and partner countries there is a significant decrease in soil moisture on croplands (2.4%) over the period 2019-2023 compared to the reference period 1981-2010. The countries most affected by drought include Argentina, Brazil and Romania, which have recorded declines of more than 6% in cropland soil moisture over the past five years. Some of the worst affected OECD countries are Colombia, Mexico and Portugal, which experienced a more than 4% decrease in cropland soil moisture compared to the baseline period. Drought can also exacerbate other climate-related hazards such as conditions that increase the possibility of wildfires due to dry vegetation and fuel load, and changing weather patterns. Extreme summer temperatures and droughts also impact countries that rely heavily on water abstraction for electricity generation (e.g. hydropower, cooling water), causing increased water level variability and prolonged episodes of low water levels in reservoirs.

Mean precipitation affects OECD Member and partner countries unequally. South American and Eastern European countries saw a decrease in average annual precipitation change in 2023 compared to 1981-2010 whereas North America, southeast-Asia and western Europe all witnessed increases. In turn, these precipitation changes can inhibit flooding, due to a combination of factors, either with extreme precipitation in countries witnessing an increase in precipitation, or drought, with decrease in mean precipitation, preventing water to saturate and resulting in flash floods. The Netherlands and Hungary are most at-risk out of all OECD Member and partner countries, with approximately 20% of their land exposed to risk of extreme river flooding. The significant changes in mean precipitation affects OECD countries differently, which needs to be taken into account when preventing future impacts and potential economic costs at national level.

Indicators

Comparability and interpretation

The addition of global datasets when analysing climate change events is primordial as it allows for the creation of comparable results between countries and regions. Global datasets have become more granular, both in resolution and types of indicators available, thanks to the evolution of data sources and data collection methods (remote sensing and openly accessible data).

The OECD set of indicators is based on historical observational data (collected and recorded) that goes back as far as 1979. This time period is relatively short for analysing climate change events. However, the data, while limited, still show the exposure of climate-related hazards to the population, croplands, forests and urban areas. These 43 years of data illustrate that climate change impacts are already visible by analysing a short period of historical data. One limitation of these indicators is that they reflect what has happened, not what will happen. The data set can support countries by strengthening their understanding of the evolution and potential impacts of climate-related hazards in order to guide policy choices. See the Climate Hazard Exposure Tracker for indicator visualisation (IEA/OECD, 2024) and find further details in Maes et al. (2022).

Climate Actions and Policies

Key messages

• In 2023, national climate mitigation action, as measured by the CAPMF, grew by only 2% across OECD Member and partner countries, a pace far below what is needed to meet the Paris Agreement temperature goals.

• While climate action has expanded in most countries, progress varies across sectors. Policy action contracted slightly in the electricity sector but rebounded in transport, buildings and industry sectors in 2023.

• Since 2010, growth in market-based instruments has slowed significantly, while non market‑based measures such as performance standards and information instruments have expanded.

Main trends and recent developments

In 2023, national climate mitigation action as measured by the IPAC Climate Actions and Policies Measurement Framework (CAPMF) grew by only 2% across OECD Member and partner countries. While this is more than the 1% observed in the previous year, it still falls short of the 10% annual average expansion in climate action between 2010 and 2021 (OECD, 2023a). Countries’ policy approaches are the result of a complex interaction between past climate action, climate ambitions, emissions profile, and available technologies, as well as countries’ cultural, social, political and institutional conditions (OECD, 2024d).

The modest expansion in national climate mitigation action in 2023 reflects many different, at times opposing, policy developments across countries, sectors, and instrument types. Climate action expanded in most countries but declined in a few. Climate action contracted slightly in the electricity sector but rebounded in the transport, buildings and – most strongly – industry sector after a decrease in 2022 (OECD, 2024d).

Climate action on market-based instruments (MBIs) slowed down significantly between 2010 and 2023, while action on non-MBIs and ‘Targets, governance and climate data’ increased. This is due to (i) the expansion and increase in stringency of carbon pricing (e.g. permit prices in most emissions trading systems [ETS] increased, partly driven by more stringent emissions caps set by countries), and (ii) backtracking on other MBI policies, notably related to fossil fuel support (OECD, 2024d).

Indicators

Comparability and interpretation

The IPAC CAPMF monitors trends in climate mitigation policy adoption and policy stringency for OECD and OECD partner countries (Nachtigall et al., 2022). The CAPMF covers a broad range of policy instruments (e.g. market-based, non-market based) and other climate actions (e.g. climate targets, climate governance, climate data), comprising 75% of instruments listed in the IPCC Sixth Assessment Report (OECD, 2023). It covers several important sector-specific policies that are jointly responsible for 89% of GHG emissions in OECD Member and partner countries. However, results should be interpreted with care. The CAPMF does not capture all policies (sectors and instrument types) due to data availability constraints, such as agriculture and land-based sectors, tax credits and other subsidies for cleaner technologies or an expansion of voluntary approaches, or adaptation policies. Policies included in the CAPMF may, thus, not be fully representative of mitigation approaches of some countries. Rather, these policies represent a range of mitigation actions that countries could employ.

Taxes relevant for climate change

Key messages

• In 2023, climate-related taxes generated USD 635 billion across OECD countries, representing 3.7% of total tax revenue.

• Most of this revenue came from energy and transport taxes while pollution and resource taxes contributed only a small share.

• Environmentally related tax revenue (ERTR) continues to decline in OECD countries, falling from 5.9% of total tax revenue in the early 2000s to 4.3% in 2023 (and from 1.8% of GDP to 1.3%). The decline was driven by inflation-erosion of nominal tax rates and behavioural shifts away from motor fuels. Some countries, however, have strengthened environmentally related tax policies, tripling revenue shares since 2000.

Main trends and recent developments

In OECD countries, climate change-related taxes raised USD 635 billion in 2023, representing 3.7% of total tax revenue. This share has decreased slightly since the early 2000s (5.2%). The majority of environmentally related taxes revenue is raised from taxing energy (64.6%), in particular motor fuels, and transport taxes (20.2%) By contrast, pollution and resource taxes play only a minor role.

Pricing CO₂ and energy remains the most economically efficient tool to shift behaviour and mobilise private finance and investment for climate objectives. Taxes on logging, forestry products and land use change can also safeguard carbon sinks and support sequestration.

Overall, the share of environmentally related tax revenue (ERTR) in total tax revenue has declined steadily, reaching 4.3% in 2023, down from 5.9% in early 2000s in OECD countries. Compared to GDP, ERTR has also decreased and reached 1.3% of GDP in 2023 down from 1.8% in the early 2000s. The decreasing trend is a combination of factors, namely, that tax rates are typically defined in physical units (e.g. per litre) and hence are set in nominal terms. Without inflation adjustment, these rates decrease in real terms over time. While countries such as Denmark, the Netherlands and Sweden have implemented such adjustments, most OECD countries do not yet apply inflation adjustments to environmentally related taxes. Another factor contributing to this trend is the increase in crude oil prices up until mid-2014, which triggered substitution away from motor fuel use, and also made adjustments in nominal tax rates on motor fuels politically difficult. Yet some countries, such as Slovenia, Costa Rica, Türkiye and Estonia strengthened the role of environmentally related taxes and have tripled their share of tax revenue since 2000.

Indicators

Comparability and interpretation

To assess the “environmental friendliness” of the tax systems, indicators on environmentally related taxes should be complemented with information describing the economic and taxation structure of each country. Moreover, some environmentally related taxes can have important environmental impacts even if they raise little (or no) revenue. In addition, revenue from fees and charges, and from royalties related to resource management, is not included.

Comparisons of ERTRs in OECD countries provide a useful starting point for analysing the impact of environmental taxation, however, comparing only the levels of revenue does not provide the full picture of a country’s environmental policy, as it does not provide information on the levels of tax rates or the exemptions applied. Other parts of the OECD PINE database, including information on tax rates and exemptions, allows deeper assessment of the environmental impacts of these taxes. In addition, governments may choose to implement environmental policy using a range of other instruments, including fees and charges, expenditures (both direct and subsidies) and regulation, some of which are also detailed in the PINE database which also includes information on the use of alternative instruments in countries.

For further details see the metadata in the source databases.

Fossil fuel subsidies and other support measures

Key messages

• In 2023, the fiscal cost of government support for fossil fuels in 48 OECD, G20 and EU Eastern Partnership economies, covered by the OECD Inventory, reached around USD 513 billion, slightly up from the previous year.

• For the first time in 2023, the fiscal cost of direct budgetary transfers (USD 269.8 billion) exceeded tax expenditure measures (which fell to USD 244.3 billion), reflecting widespread energy price compensation and lump-sum support transfers to offset exceptionally high energy prices.

• Continued financial support to fossil fuels undermines climate goals and strains public budgets.

Main trends and recent developments

Many governments continue to support fossil fuel production and use financially, in particular oil and gas. This undermines the effectiveness of environmental policies by lowering the cost of emitting carbon and is a barrier to moving towards a more energy efficient and low-carbon economy. It can also impose a strain on government budgets.

The fiscal cost of government support for fossil fuels provided by the 48 OECD, G20, and Eastern Partnership economies covered by the OECD Inventory of Support Measures for Fossil Fuels was around USD 513 billion in 2023, a slight increase compared with the previous year. The fiscal cost of direct budgetary transfers amounted to USD 269.8 billion in 2023 and, for the first time, exceeded the cost of tax expenditure measures, which fell from USD 260.4 billion in 2022 to USD 244.3 billion. Most of the fiscal cost of direct budgetary transfers stems from the implementation of several lump-sum transfers and support measures that compensate for higher energy bills, and maintain regulated or capped energy prices introduced to offset exceptionally high energy costs since 2022 (OECD, 2024e).

In addition, the IEA calculates that fossil fuels sold below market prices amounted to USD 616.4 billion, about half of the 2022 level (USD 1 178 billion). Benchmark prices (based on energy supply costs) eased, particularly for natural gas, thereby decreasing the difference between the subsidised end-user prices and the benchmark prices (IEA, 2024).

Indicators

Comparability and interpretation

The OECD Inventory of Support Measures for Fossil Fuels, which covers 51 OECD, G20 and EU Eastern Partnership economies, identifies and estimates policies that support the production or consumption of fossil fuels. It includes direct budgetary transfers and tax expenditures that may provide a benefit or preference for fossil-fuel production or consumption relative to alternatives. Unlike direct budgetary expenditures, where outlays can usually be measured, tax expenditures are estimates of the fiscal revenue that is foregone due to a particular feature of the tax system that reduces a tax rate relative to a benchmark tax rate. It is important to note that definitions of tax expenditures, and the benchmarks used to estimate their size, are nationally determined. Hence, (i) tax expenditure estimates could increase either because of greater concessions, relative to the benchmark tax treatment, or because of a raise in the benchmark itself; (ii) international comparison of tax expenditures could be misleading, due to country-specific benchmark tax treatments.

Measures appearing in the OECD Inventory are classified as support without reference to the purpose for which they were first put in place or their economic or environmental effects. No judgment is therefore made as to whether or not such measures are inefficient or ought to be reformed.

Net effective carbon rate

Key messages

• In 2023, 42% of GHG emissions in the 79 countries covered by the OECD database were subject to a positive Net Effective Carbon Rate (Net ECR), which includes carbon taxes, emission trading systems (ETS), fuel excise taxes and fossil fuel subsidies. About 27% of GHG emissions were covered by explicit carbon prices (an ETS, a carbon tax, or both) while 23% were subject to implicit pricing through fuel excise taxes.

• The average Net ECR declined from EUR 17.9/tCO2e in 2021 to EUR 14.0/tCO₂e in 2023, due to expanded fossil fuel subsidies and tax exemptions introduced during the 2022 energy crisis to address affordability and security concerns. As a result, the Net ECR of road transport, buildings and agriculture strongly declined. Although explicit carbon prices increased, due to higher ETS permit prices and modest carbon tax increases, these gains were offset by expanded fossil fuel subsidies and reduced fuel tax rates.

• More than half of energy use remains untaxed in 2023, with high-income countries charging EUR 4.96/GJ on average, compared to EUR 0.54/GJ in low- and middle-income economies (OECD, 2024c).

Comparability and interpretation

The "Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down (OECD, 2024c)" report provides a comprehensive stocktake of effective carbon and energy rates. Specifically, they track and describe trends in carbon taxes, emissions trading systems (ETSs), fuel excise taxes and their associated emission bases, and the resulting indicator: Effective Carbon Rates (ECRs). They also track and describe electricity excise taxes and the abovementioned policies and their associated energy bases in the Effective Energy Rates (EERs) indicator. In addition, the report captures negative rates through fossil fuel and electricity subsidies that can reduce the price signal of carbon and energy pricing. The report overs 79 countries, reflecting broader coverage, and tracks the evolution of carbon and energy pricing instruments between 2021 and 2023.

Official development assistance (ODA)

Key messages

• DAC members' bilateral ODA targeting climate objectives has gradually increased over the past decade. In 2022-23, climate change mitigation activities averaged USD 40 billion per year, nearly 25% of total bilateral allocable ODA. In contrast, adaptation-related activities declined from USD 36 billion in 2022 (21.6% of allocable ODA) to USD 33 billion in 2023 (20.5% of allocable ODA).

• Regional share of climate-related activities in bilateral ODA varied: in 2023, 33% of commitments to Africa were climate-related, compared to 41% in Oceania, 36% in Latin America and the Caribbean, and 42% in Asia.

• Africa was the largest ODA recipient of adaptation-focused aid in 2023 (over 37%), while Asia was the leading recipient of mitigation-marked ODA, with significant flows directed to India and the Philippines.

• More than 80% of ODA activities in energy, transport and general environmental protection, were climate-related in 2022-2023, mainly mitigation focused. Adaptation support was more prominent in agriculture, forestry, fishing and water supply and sanitation.

• Despite growing volumes, most ODA flows remained misaligned with the objectives of the Paris Agreement, highlighting the need for greater coherence and impact orientation (e.g. financing solutions for developing countries and the effective use or available resources).

Glossary

Carbon dioxide (CO₂) emissions from energy use (production-based CO₂ emissions): Refer to gross direct CO₂ emissions from fossil fuel combustion, emitted within the national territory. Human-caused emissions from other sources are not included. Emissions from oil held in international marine and aviation bunkers are excluded. CO₂ removal by sinks, indirect emissions from land use changes and indirect effects through interactions in the atmosphere are not taken into account.

Climate actions and policy instruments are policy instruments or other actions that have the explicit intent of achieving declared policy objectives to advance mitigation or are non-climate policies which are expected to have a material effect on GHG emissions.

Policy instruments are institutional vehicles or tools through which governments facilitate the implementation of domestic and international objectives. Their effectiveness will depend on several issues associated with their operation, including government’s capacity to enforce, the possibility of economic agents to change their behaviour, and the broader policy landscape.

• Market-based instruments are policy instruments that use markets, prices and/or other monetary means to provide incentives for producers and consumers to reduce or eliminate environmental and other externalities.

• Non market-based instruments are instruments that work through the imposition of certain obligations or by installing non-monetary incentives to change behaviour (e.g. directly regulated by the government such as standards, information instruments, voluntary approaches).

• Targets, governance and climate data include net-zero targets, nationally determined contributions (NDCs), independent climate advisory bodies, climate education, ratification of key international climate treaties, participation in international climate initiatives, evaluation of biennial (update) reports, Submission of key documents, GHG emissions reporting and accounting.

Climate change-related tax revenue: Revenue raised from taxes and auctioning of tradable permits directed at climate change. These include specific taxes on i) energy products and revenue from auctioning of CO₂ tradable allowances; ii) use of motor vehicles, iii) pollution (e.g. cement production); and iv) resource extraction (e.g. forestry taxes).

The information on taxes and the associated tax revenue is extracted from the OECD Policy Instruments for the Environment (PINE) database (http://oe.cd/pine). The PINE database contains quantitative and qualitative information on over 4 600 policy instruments in more than 145 countries worldwide. Policy instruments are tagged into 22 environmental domains that represent the focal issues (environmental externalities). Instruments can have both a direct and an indirect effect on several environmental domains; however, only the domain to which the instrument has a direct effect is considered. For more details, see the metadata to the OECD Environmentally related tax revenue dataset.

Environmentally related taxation: Environmentally related taxes include taxes to (i) energy products for transport purposes (petrol and diesel) and for stationary purposes (fossil fuels and electricity); (ii) motor vehicles and transport (one-off import or sales taxes, recurrent taxes on registration or road use and other transport taxes); (iii) waste management (final disposal, packaging and other waste-related product taxes); (iv) ozone-depleting substances and (v) other environmentally related taxes.

The indicators on environmentally related taxes should be used in combination with information on the economic and taxation structure of each country. Note that revenue from fees and charges, such as water abstraction or waste collection charges, is not included as environmentally related tax revenue. Missing values can sometimes lead to visible 'breaks' in auto generated charts. For more information, please refer to the source data and metadata on OECD Data Explorer.

Effective carbon rates: Effective Carbon Rates (ECR) include fuel excise taxes, carbon taxes and tradable emission permit prices. The Net ECR is the effective carbon rates net of pre-tax fossil fuel support (OECD, 2022; Garsous et al.,2023).

Greenhouse gas emissions: OECD Environment Statistics (database) is based on national inventory submissions to the United Nations Framework Convention on Climate Change (UNFCCC, CRT tables), and replies to the OECD State of the Environment Questionnaire. Currently it covers 90+ countries and 95 selected IPCC source categories. These statistics come from official submissions of GHG emissions data by Parties to the UNFCCC. Complete datasets including and excluding land use, land-use change and forestry (LULUCF) are available for Annex I and several non-Annex I Parties to the UNFCCC. Partial datasets are available for the remaining non-Annex I Parties.

GHG (greenhouse gas) footprint: estimates of GHG emissions embodied in final domestic demand are obtained from the OECD dataset on Greenhouse gas Footprint Indicators, derived from combining the 2023 edition of the OECD Inter-Country Input-Output (ICIO) Tables and other Greenhouse Gas Emissions databases, such as Air Emissions Accounts. Estimates of GHG emissions by industry, are based primarily on Air Emissions Accounts (AEA) and drawing on other sources of GHG emissions statistics. They are combined with OECD’s Inter-Country Input-Output (ICIO) tables to produce estimates of emissions from consumption (or demand) perspectives. This allows indicators of GHG footprints to be developed, revealing the emissions associated with intermediate consumption, final consumption and capital formation expenditures along global production chains. The use of emissions statistics compiled under the System of Environmental Economic Accounting (SEEA) framework, which is based on the resident principle, allows calculation of production-based emissions by industry that cover not only CO₂ emissions from fuel combustion, but also non-fuel combustion emissions.

The estimates are calculated for 76 economies. The methodology uses SEEA residence principle to estimate industry emissions embodied in domestic and international production networks and emissions associated with final demand patterns from purchasers’ price perspectives.

Impact and risk of climate-related hazards:

• Average annual surface temperature change: changes in the base mean surface air temperature over land in 2018-2022 compared to the baseline period 1981-2010 (measured in degrees Celsius (°C))

• Average annual precipitation change: changes in the base mean volume of precipitation in 2018-2022 compared to the baseline period 1981-2010 (measured in mm)

• Population exposure to hot days: number of days in which a population is exposed to surface air temperatures which exceed 35°C (measured in days/year)

• Cropland exposure to drought: changes in cropland soil moisture in 2018-2022 compared to the baseline climatology in 1981-2020 (measured in %)

• Total energy supply: Total energy supply (TES) is made up of production + imports – exports – international marine bunkers – international aviation bunkers ± stock changes. TES comprises coal, peat and peat products, oil shale, natural gas, crude oil and oil products, nuclear, renewable energy (bioenergy, geothermal, hydropower, ocean, solar and wind) and other sources (non-renewable waste). Electricity trade and heat are included in total primary energy supply (calculation of intensities) but excluded from the calculation of the breakdown by source (energy mix).

• Total fossil fuel support: Comprises Consumer Support Estimates (CSE), Producer Support Estimates (PSE) and General Services Support Estimate (GSSE), for petroleum, coal and natural gas. Measures that benefit individual producers are classified under the PSE, while those that benefit individual consumers are classified under the CSE. Measures benefitting producers or consumers collectively are classified under the GSSE, as are measures that do not increase current production or consumption of fossil fuels but that may do so in the future. The definition of support encompasses policies that can induce changes in the relative prices of fossil fuels in the support estimate level.

• Fossil fuel support by type of support refers to the share of consumption, production and general services support in total fossil fuel support.

• Fossil fuel support by fuel refers to the share of petroleum, coal and gas support in in total fossil fuel support.

Official Development Assistance (ODA): The ODA section draws on the data published in the Aid Activities Targeting Global Environmental Objectives dataset within the OECD’s Creditor Reporting System (CRS). The data are collected annually on a calendar year basis (as opposed to fiscal year). To smooth year-to-year fluctuations, commonly two-year averages are applied. All calculations follow a common methodology agreed by the Development Assistance Committee (DAC) members since 2008.

Environmentally related ODA is presented as a percentage of total bilateral allocable ODA. Aid in support of the environment and the Rio Conventions includes activities tagged with either the “environment marker” or any of the four Rio markers: biodiversity, desertification, climate change mitigation and climate change adaptation.

A single CRS activity can address several policy objectives simultaneously. This reflects mutually reinforcing nature of the Rio Conventions and environmental objectives. For example, the same activity can be marked for climate change mitigation and biodiversity.

The denominator used in the calculations depends on the marker(s) involved:

• For statistics based on a single marker (e.g. biodiversity), the denominator is screened bilateral allocable aid (screened meaning the subset of activities for which the marker data are reported for a given donor)

• When multiple markers are combined, the denominator is total bilateral allocable aid to avoid narrowing the calculation base when marker data are missing for many activities.

The ODA section includes only data on bilateral commitments, with calculations made at the individual project level to prevent double counting. Due to limitations in reporting, the marker-based results represent an approximate quantification of aid dedicated to a policy objective, rather than a precise number.

• Aid commitments identified using the environment marker (both the principal or significant objectives) include activities that are intended to improve the physical and/or biological environment of the recipient country, or to integrate environmental concerns with a range of development objectives through institution building and/or capacity development. The environment marker was introduced in 1992.

• Climate change mitigation-related aid is defined as activities that strengthen the resilience of countries to climate change and that contribute to stabilisation of GHG concentrations by promoting reduction of emissions or enhancement of GHG sequestration. The climate change mitigation marker was introduced in 1998.

• Climate change adaptation-related aid, approved by OECD-DAC members in December 2009, is defined as aid in support of climate change adaptation and complements the climate change mitigation marker, thus allowing presentation of a more complete picture of aid in support of developing countries’ efforts to address climate change. The climate change adaptation marker was introduced in 2010.

Data sources

IEA, "World energy statistics", IEA World Energy Statistics and Balances (database), https://doi.org/10.1787/data-00510-en.

IEA/OECD, " Climate-related hazards: Exposure to extreme precipitation", Environment Statistics (database), https://oe.cd/dx/4TG, based on Maes et al. (2022).

IEA/OECD, " Climate-related hazards: Exposure to extreme temperature", Environment Statistics (database), https://oe.cd/dx/4TF, based on Maes et al. (2022).

OECD, "Air emissions: Greenhouse gas emissions Inventories", OECD Environment Statistics (database), https://doi.org/10.1787/data-00594-en.

OECD, “Greenhouse gas footprint indicators”, OECD Greenhouse Gas Footprints (GHGFP): Emissions embodied in bilateral trade (database), https://data-explorer.oecd.org/?tm=GHGFP&snb=5.

OECD, " Climate-related hazards: Exposure to drought", Environment Statistics (database), https://oe.cd/dx/4TH , based on Maes et al. (2022)

OECD, “Development: ODA activities targeting global environmental objectives”, OECD International Development Statistics (database).

OECD, “Development finance for climate and environment”, OECD International Development Statistics (database).

OECD, "Environmental policy: Environmentally related tax revenue", OECD Environment Statistics (database), https://doi.org/10.1787/df563d69-en

OECD, "Green growth indicators", OECD Environment Statistics (database), https://doi.org/10.1787/data-00665-en.

OECD, “OECD Inventory of Support Measures for Fossil Fuels” (database), http://www.oecd.org/fossil-fuels.

OECD, “Policy Instruments for the Environment (PINE)” (database), http://oe.cd/pine

References and further reading

Garsous, G., et al. (2023), "Net effective carbon rates", OECD Taxation Working Papers, No. 61, OECD Publishing, Paris, https://doi.org/10.1787/279e049e-en.

IEA (2025), Global Energy Review 2025, IEA, Paris https://www.iea.org/reports/global-energy-review-2025.

IEA (2024), Strategies for Affordable and Fair Clean Energy Transitions, International Energy Agency, https://www.iea.org/reports/strategies-for-affordable-and-fair-clean-energy-transitions.

IEA/OECD (2024), Climate Hazard Exposure Tracker, https://www.iea.org/data-and-statistics/data-tools/weather-climate-and-energy-tracker?tab=Climate+Hazard+Exposure+Tracker

IPCC (2018), Special Report: Global Warming of 1.5°C, Chapter 2, https://www.ipcc.ch/sr15/

Maes, M., et al. (2022), "Monitoring exposure to climate-related hazards: Indicator methodology and key results", OECD Environment Working Papers, No. 201, OECD Publishing, Paris, https://doi.org/10.1787/da074cb6-en.

OECD Data Explorer, Environment datasets

OECD International Programme for Action on Climate, https://www.oecd.org/climate-action/ipac

OECD work in support of climate action: http://oe.cd/climate-action

OECD Climate-related Development Finance Data: https://www.oecd.org/dac/financing-sustainable-development/development-finance-topics/climate-change.htm

OECD, Science, Technology and Innovation Working Papers, No. 2020/11, OECD Publishing, Paris, https://doi.org/10.1787/8f2963b8-en

OECD (2024a), Climate Finance Provided and Mobilised by Developed Countries in 2013-2022, Climate Finance and the USD 100 Billion Goal, OECD Publishing, Paris, https://doi.org/10.1787/19150727-en.

OECD (2024b), Official Development Assistance for climate in 2022: A snapshot, https://www.oecd.org/dac/financing-sustainable-development/development-finance-topics/climate-change.html

OECD (2024c), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en

OECD (2024d), The Climate Action Monitor 2024, OECD Publishing, Paris, https://doi.org/10.1787/787786f6-en.

OECD (2024e), OECD Inventory of Support Measures for Fossil Fuels 2024: Policy Trends up to 2023, OECD Publishing, Paris, https://doi.org/10.1787/a2f063fe-en.

OECD (2023a), The Climate Action Monitor 2023: Providing Information to Monitor Progress Towards Net-Zero, OECD Publishing, Paris, https://doi.org/10.1787/60e338a2-en.

United Nations Framework Convention on Climate Change, https://unfccc.int/.

Yamano, N., M. Lioussis and A. Cimper (2024), “Measuring greenhouse gas footprints in global production networks: New perspectives on emissions embodied in production chains and final demand patterns”, OECD Science, Technology and Industry Working Papers, No. 2024/12, OECD Publishing, Paris, https://doi.org/10.1787/fc426ab9-en.

Note

← 1.  https://insideclimatenews.org/news/09072024/average-global-temperatures-above-pre-industrial-levels-for-12-months/