Share

A Framework to Decarbonise the Economy

Banner - Decarbonise the economy

Climate change induced droughts, storms, heat waves and fires, melting glaciers and rising sea levels, all increasing in frequency and magnitude, put the wellbeing of our generation – and future ones – in jeopardy.

And yet, the global progress towards a sustainable pathway of emissions still falls short of the crucial targets to mitigate these dire effects. To further support the need for decisive action, the OECD is putting forward A Framework to Decarbonise the Economy: a framework for designing and implementing country-tailored decarbonisation strategies while considering broader economic and social issues. The framework builds on the latest OECD work and academic evidence, as well as provides concrete country examples to lay out the key elements for appraising the existing policy gaps and addressing them with a cost-effective, comprehensive, inclusive and acceptable policy mix.

Design a decarbonisation policy mix for your country

Annex: policy tools and additional materials

Introductory Presentation

A shortened version was presented on the high-level climate policy webinar by Laurence Boone, the OECD Chief Economist

Key elements from the framework

Framework schematic

 

Climate targets and performance

 Emission trends

Complementary policies are key

Including R&D support, infrastructure investment, labour market and reskilling policies, redistributional mechanisms and tools for strengthening public acceptability

‌‌

Assessment criteria for climate policies

> For an extended version, see Table 5 of the Policy Paper

Further reading and sources

Article on VoxEU by the authors of A Framework to Decarbonise the Economy, summarising the paper’s main messages

Assessing the Economic Impacts of Environmental Policies: Evidence from a Decade of OECD Research (2021)

OECD Country Survey chapters dedicated to decarbonisation: Iceland (2021), Denmark (2021), Estonia and Greece (forthcoming, 2022)

OECD Going for Growth 2021: Shaping a Vibrant Recovery (see Chapter 1 for a discussion on improving environmental sustainability via How structural policies)

OECD Climate Change Hub

IPAC: International Programme for Action on Climate