OECD climate change resources

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08/11/2021
Efforts that primarily focus on incremental change in systems that are unsustainable by design are one of the main barriers to scaling up climate action. This report applies the OECD well-being lens process to the transport sector. It builds on the report Accelerating Climate Action and encourages countries to focus climate action on delivering systems that - by design - improve well-being while requiring less energy and materials, and thus producing less emissions. The report identifies three dynamics at the source of car dependency and high emissions: induced demand, urban sprawl and the erosion of active and shared transport modes. The report also provides policy recommendations to reverse such dynamics and reduce emissions while improving well-being, from radical street redesign, to spatial planning aimed at increasing proximity, and policies to mainstream shared mobility. Analysis also shows why the effectiveness and public acceptability of carbon pricing and policies incentivising vehicle electrification can significantly increase after policy reprioritisation towards systems redesign.
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06/11/2021
Sub-national governments have a key role in delivering on national and international biodiversity commitments. Drawing on policy practices from Scotland (UK), France and other signatories to the Edinburgh Declaration, this paper provides an overview and analysis of sub-national strategies, plans and mechanisms to ensure policy coherence and co-ordination. It then examines the policy instruments that subnational governments can leverage to deliver positive biodiversity outcomes. The paper highlights, among other things, the need to: develop clear and measurable biodiversity targets at sub-national level; incorporate biodiversity considerations into sub-national climate action plans and urban, rural and regional development strategies, plans and instruments; and promote nature-based solutions at a sub-national level to harness synergies between climate mitigation, climate adaptation and biodiversity.
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05/11/2021
SMEs and entrepreneurs are of critical importance for reaching climate objectives. They have a significant environmental footprint on aggregate, but also make important contributions to reaching net zero through their innovations and greening efforts. This paper discusses the importance of taking entrepreneurs and SMEs into account in climate and environmental policies. It analyses the drivers and barriers of green entrepreneurship and the greening of SMEs, and discusses policy options to support these objectives.
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05/11/2021
Viet Nam has become a leading regional market for renewable energy in a short space of time led by private sector investment facilitated by favourable support mechanisms. Maintaining market growth sustainably while integrating higher shares of variable generation will be a key challenge for Viet Nam’s policy makers over the next decade as the post-pandemic economic recovery builds momentum. Viet Nam's economy also remains highly energy intensive and energy efficiency improvement has the potential to unlock multiple economic benefits with further market interventions.The Clean Energy Finance and Investment Policy Review of Viet Nam provides a comprehensive overview of the current policy framework, highlighting progress and identifying untapped opportunities for strengthening policy interventions that can help scale up clean energy finance and investment. It also provides a number of tailored recommendations for the Government of Viet Nam and development partners. The Review was undertaken within the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, which supports governments in emerging economies to unlock finance and investment in clean energy.
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02/11/2021
The Climate Action Monitor, part of the International Programme for Action of Climate (IPAC), provides a diagnostic policy framework for assessing country progress towards climate objectives. Its goal is to provide a digest of progress towards, and alignment with, Paris Agreement goals to support countries in making better-informed decisions and allow stakeholders to measure improvements more accurately. Alongside the IPAC Dashboard, it complements and supports the UNFCCC and Paris Agreement monitoring frameworks by: 1) reviewing key trends and developments and highlighting areas for further analysis and policy action; 2) promoting greater harmonisation of key indicators; 3) showcasing examples of good climate mitigation and adaptation practices and results; and 4) strengthening transparency over climate policies.
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01/11/2021
This report addresses the urgent issue of climate-related losses and damages. Climate change is driving fundamental changes to the planet with adverse impacts on human livelihoods and well-being, putting development gains at risk. The scale and extent of future risks for a given location is, however, subject to uncertainties in predicting complex climate dynamics as well as the impact of individual and societal decisions that determine future greenhouse gas emissions as well as patterns of socio-economic development and inequality.The report approaches climate-related losses and damages from a risk management perspective. It explores how climate change will play out in different geographies, over time, focusing on the three types of hazards: slow-onset changes such as sea-level rise; extreme events including heatwaves, extreme rainfall and drought; and the potential for large-scale non-linear changes within the climate system itself. The report explores approaches to reduce and manage risks with a focus on policy action, finance and the role of technology in supporting effective risk governance processes. Drawing on experiences from around the world, least developed countries and small island developing states in particular, the report highlights a number of good practices and points to ways forward.
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29/10/2021
This document provides a brief overview of the state of play in eleven EECCA countries – Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan – in terms of international commitments on climate action (including updates to Nationally Determined Contributions) and domestic green economy reforms and strategy development. The country profiles aim to take stock of actions across the region in the lead-up to the 26th United Nations Climate Change Conference of Parties (COP26) in Glasgow.
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27/10/2021
Reporting and review requirements under the Paris Agreement include provisions under Article 13 relating to the implementation and achievement of Parties’ Nationally Determined Contributions (NDCs). Draft texts relating to Article 6.2 relating to Parties’ use of cooperative approaches also include provisions on reporting and review. This document identifies and analyses issues related to the interplay of relevant reporting and review requirements under both Article 13 and Article 6 of the Paris Agreement, as it is important to improve complementarity and ensure consistency between the two sets of reporting and review provisions, as well as to meet the already-agreed principles governing transparency. Regarding reporting, the document highlights options for improving the clarity of the provisions concerning the timing, content, and frequency of the three required types of information under Article 6.2 guidance (i.e., the initial report, annual information, and regular information). Regarding Internationally Transferred Mitigation Outcomes (ITMOs), this document highlights several issues relating to timing and vintages that would need to be addressed to facilitate ITMO reporting and review implementation. Regarding review provisions, this document finds that draft A6.2 guidance could usefully provide further detail on some substantive aspects of the Article 6 review process, such as, e.g., clarifying roles of the Party, the TER team, and the secretariat in the review process.
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27/10/2021
This paper analyses net-zero emissions targets adopted in law, proposed in legislation, or reflected in policy documents in 51 countries and the EU to better understand their characteristics, similarities and differences. It examines countries’ experiences with translating net-zero targets into near-term plans and analyses four case studies to show how countries develop and implement different pathways to net-zero. This paper also explores the potential role and associated risks, both for individual countries and globally, of using international carbon markets to help achieve countries’ net-zero targets. The paper concludes that countries are adopting diverse approaches to their net-zero targets and many details are currently unclear, including the balance between emission reductions, removals and the use of international carbon markets in reaching countries’ net-zero targets, and how this may change over the next few decades. The paper concludes that greater clarity on the scope, coverage and detail, in particular how countries plan to meet their net-zero commitments, is important to improve understanding of countries’ net-zero targets, how they interact with each other, and their overall implications for achieving the global temperature goal of the Paris Agreement.
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25/10/2021
This technical note presents two forward-looking scenarios for climate finance provided and mobilised by developed countries in the context of the USD 100 billion goal set under the UNFCCC. The analysis of public climate finance provided is based on the stated intentions, pledges and targets of individual developed countries and multilateral development banks, as submitted for the specific purpose of this exercise. It also relies on analytical steps and methodological assumptions to make this information compatible with the accounting framework and scope of the goal. The two scenarios include further assumptions on both the level of private finance mobilised by this public finance and of climate-related export credits. Canada and Germany requested the OECD to conduct this analysis as an input to the Delivery Plan towards the USD 100 billion goal prepared by developed countries prior to COP26.
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29/09/2021
Viet Nam’s sustained economic development is driving increasing demand for electricity with generation capacity predicted to nearly double over the next decade. With the majority of economic hydropower resources utilised, delays in coal power pipelines, and increasing energy insecurity, Viet Nam has pivoted its electricity sector development plans to further prioritize the deployment of wind and solar generation. A clean energy transition such as this can deliver multiple social and economic benefits related to cost reductions, improved energy security, and public health.This working paper was prepared to support least-cost energy sector planning in Viet Nam particularly for the upcoming Viet Nam Energy Outlook 2021 (VEO21) being prepared in partnership between Viet Nam’s Ministry of Industry and Trade (MOIT) and the Danish Energy Agency (DEA). This working paper discusses the use of discounting in energy models and the potential impact discount rate selection may have on a model’s cost-optimised technology selections. The paper also analyses the clean energy finance environment in Viet Nam to identify opportunities for policy levers to reduce the prevailing cost of capital and how these cost implications can be tested in the VEO21 modelling exercise. The main outputs of this working paper are two sets of model inputs, an estimate for an appropriate social discount rate and secondly a set of high and low financial hurdle rates for renewable energy technologies for use in sensitivity or scenario analysis.
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22/09/2021
Lithuania’s rapid economic growth has increased many environmental pressures. The country has declared ambitious medium- and long-term climate change mitigation goals. However, existing policies will not be enough to meet them. Total greenhouse gas emissions have not declined over the last decade, while those from transport have been rising rapidly. Lithuania needs to build on its impressive progress in moving away from landfilling to reduce waste generation and steer towards a circular economy. Water pollution with nutrients from the increased use of fertilisers and insufficiently treated wastewater must also be addressed. These efforts require improved integration of environmental considerations into sectoral policies and a whole-of-government approach to environmental management.Lithuania is implementing a series of positive changes in environment-related taxation. However, the trend of declining public environmental expenditure should be reversed. One priority area is additional investment in public transport and improvements in cycling and walking conditions that would help steer user behaviour towards sustainable transport modes.This is the first OECD Environmental Performance Review of Lithuania. It evaluates progress towards green growth and sustainable development, with a special chapter focusing on sustainable mobility.
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17/09/2021
This report presents aggregate trends of annual climate finance provided and mobilised by developed countries for developing countries for the period 2013-19. The trends are presented by finance source, climate theme and sector, geography, and financial instrument. As this report is intended as a short technical update to the previously published 2013-18 figures, the information provided remains at an aggregate level. An expanded and disaggregated analysis will be conducted in 2022 for climate finance in 2019 and 2020, once data for 2020 is available.
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15/09/2021
The world risks global warming of beyond 1.5°C (and even 2°C) this century, unless we achieve deep reductions in CO2 and other GHG emissions. It is essential to strengthen public policies at all levels - from local to international levels - to achieve the transition to net zero. In this blog, OECD Environment Director Rodolfo Lacy outlines priorities for addressing the climate crisis.
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15/09/2021
Climate change affects ecosystems, water resources and human activity, with significant consequences for human well-being and economic output. The indicators here show greenhouse gas and carbon emissions, developments in energy supply and fossil fuel subsidies.
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05/08/2021
With only a decade left to reduce emissions drastically, the scale, pace and extent of global transformation needed is truly demanding. Long-term emission goals and the nature of the low-emission transition in each country will be a function of its unique socio-economic priorities, capabilities, resource endowment, vision for post 2050 economic structure, and social and political acceptability of what constitutes a just transition. As we enter the “decade for delivery”, a whole of economy approach is needed to realise the low-emission transition. This includes focusing not only on upscaling zero and near-zero emitting technologies and businesses but also supporting, to the extent possible, the progressive lowering of emissions in high emitting and hard to abate sectors. In this context, “transition finance” is gaining traction among governments and market participants. To identify the core features of transition finance, this paper reviews 12 transition relevant taxonomies, guidance and principles by public (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private actors (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS), as well as 39 transition relevant financial instruments (vanilla transition bonds, key performance indicator-linked fixed income securities). This paper does not aim to define transition finance, but rather to review emerging approaches and instruments to highlight commonalities, divergences as well as issues to consider for coherent market development and progress towards global environmental objectives. Based on the review, this paper puts forth two preliminary views. First, that the essence of transition finance is triggering entity-wide change to reduce exposure to transition risk; second, that transition finance may be better understood as capital market instruments with a set of core functions/attributes rather than a specific format or label.
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07/07/2021
Iceland, as a small open economy, is highly vulnerable to external shocks and despite a comparatively mild COVID-19 health crisis, the economy suffered significantly. In this blog Hansjörg Blöchliger and Vassiliki Koutsogeorgopoulou of the OECD Economics Department present ways for the government to foster a resilient recovery and sustainable growth.
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30/06/2021
Measuring policy progress on agriculture and water policies is essential to help decision makers identify necessary policy changes and understand how further progress may be achieved to improve agricultural water management. A thorough review of existing evaluations of agriculture and water policies suggests three types of progress to be measured: policy design, policy implementation capacity and policy results. The quality and robustness of these measures of policy progress depends upon three main factors. First, assessment of policy design requires matching policy alignment with cross cutting objectives or with a reference text. Second, assessment of progress in implementation capacity requires gauging evolution towards predefined capacity needs or identified governance gaps. Third, evaluation of policy results requires clearly defined objectives, timelines and scales for assessments. Seven practical options are identified for applying these principles to agriculture and water policies, illustrated by applying them to assessing progress in the sustainable management of water for irrigation under climate change and in controlling diffuse nutrient pollution.
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29/06/2021
This policy paper catalogues tools and techniques used by public actors such as national development banks and green investment banks to mitigate project-level risks and attract private investment in infrastructure. The paper updates the dataset underlying the 2018 "Progress Update on Approaches to Mobilising Institutional Investment for Sustainable Infrastructure", to provide an expanded typology of de-risking instruments and highlight several novel approaches for mobilising institutional investment. The analysis provides development banks and other public financial institutions a nuanced view of options for targeted mobilisation efforts.
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18/06/2021
In addition to a longstanding CO2 component in fuel taxes, Norway has used two main policy instruments to decarbonise its car fleet. A CO2-differentiated registration tax gives strong and continuous incentives to buy cars with lower registered CO2 intensity (or higher fuel efficiency). Moreover, generous tax incentives, including registration tax and VAT exemptions, are applied to zero-emission cars, and have given Norway the highest electric vehicle sales in the world. This paper analyses effects of the two instruments (the vehicle registration tax and tax exemption) using an excellent and detailed data set.
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