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Connecting ambition to climate policy action
The risks of crossing climate tipping points
Evidence suggests that many tipping points may have already been crossed, and that many more will likely be crossed even within the Paris Agreement range of 1.5°C to 2°C warming — with cascading effects.
And as Arctic tundra and boreal wildfires are, for example, driving abrupt permafrost carbon release and boreal forest losses, they are effectively reducing the remaining carbon budget for reaching temperature objectives.
Tipping points are critical thresholds beyond which a system re-organises, often abruptly and irreversibly, and are highly dangerous because they can be crossed so fast that humans and natural systems are unable to adapt.
But climate projections have only recently started to consider how tipping points may come to threaten the number and shapes of possible emissions pathways towards 1.5°C.
Furthermore, current adaptation efforts, which prioritise near-term climate risk reduction, are not commensurate with tipping-point risks.
These would necessitate transformational strategies that can drastically cut emissions this decade and scale up technological development and innovation.
Climate finance is diversifying
Finance for climate action will need to be greatly accelerated in the next decade to achieve net zero. The necessary financing must also flow from developed countries to developing countries, in order to provide the critical mass of investment necessary to effectively mitigate greenhouse gas emissions and increase climate resilience.
Data show that USD 83.3 billion was provided and mobilised jointly by developed countries for climate action in developing countries in 2020. While increasing by 4% from 2019, this was USD 16.7 billion short of the USD 100 billion per year by 2020 that developed countries committed to at COP15 in 2009.
Most of these efforts supported mitigation activities (67%), focusing on activities in the energy and transport sectors, which together accounted for close to half (46%) of the total climate finance provided and mobilised between 2016 and 2020.
Asia has been the main beneficiary region of climate finance provided and mobilised by developed countries, accounting for 42% of the total, followed by Africa (26%), the Americas (17%), Europe (5%) and Oceania (1%).
Fossil fuel support is still growing
Joint analysis by the OECD and the IEA shows that major economies sharply increased support for the production and consumption of coal, oil and natural gas in 2021, with many countries struggling to balance pledges to phase out fossil fuel subsidies with efforts to protect households from surging energy prices.
Overall government support for fossil fuels in 51 countries worldwide rose to 697.2 USD billion in 2021, from 362.4 USD billion in 2020. In addition, consumption subsidies are anticipated to rise even further in 2022 due to higher fuel prices and energy use.
The OECD and IEA have consistently called for the phasing out of inefficient fossil fuel support. These subsidies, intended to support low-income households, often tend to favour wealthier households that use more fuel, and should therefore be replaced with more targeted forms of support.
Bringing citizens on board
Policies to address climate change have been historically difficult to implement, partly because of a real or perceived lack of public support.
A recent survey on public attitudes towards climate policies showed that a key way to increase support for carbon taxes, for example, is by designing them in such a way that their revenue offsets the burden on low-income households. This can be done through lower income taxes or cash transfers.
Explore the digital report to learn about the complex factors that drive or diminish public support for ambitious climate policies.
The five most polluting sectors
Industry, electricity, agriculture, transport and buildings represent nearly 90% of emissions.
Focusing on these five sectors will enable us to address emissions at source, disentangle our world from fossil fuels, and make the transition to clean energy as affordable, fair and smooth as possible. Much of this work happens at the sub-national level and within cities.
The minerals conundrum
Investment in renewable technologies and batteries is growing around the globe, driven by the need to decarbonise our economies and increasingly competitive prices.
But these technologies do not come at zero cost for the environment: they require vast amounts of minerals, often mined from ecologically sensitive areas like primary forests.
A net-zero scenario would quadruple the amount of minerals required to generate power. The growing role of batteries also poses challenges: a typical electric car requires six times the mineral inputs of a conventional car.
This raises a series of critical questions about supply, price stability, corruption, and costs to health and the environment.
Experts are looking at potential solutions, including more sustainable supply chains, the implementation of safety nets to stabilise prices, and strengthened energy efficiency policy.
Insights and opinions
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