OECD climate change resources

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08/12/2022
Governments are facing significant climate-related risks from the expected increase in frequency and intensity of cyclones, floods, fires, and other climate-related extreme events. The report Building Financial Resilience to Climate Impacts: A Framework for Governments to Manage the Risks of Losses and Damages provides a strategic framework to help governments, particularly those in emerging market and developing economies, strengthen their capacity to manage the financial implications of climate-related risks. The goal of the framework is to support sound public financial management strategies that take into account budgetary and financing constraints, and to foster broader actions at the national and international levels. The report examines the role of governments in identifying and assessing climate-related physical risks and their impacts on public finances, and reporting climate-related fiscal risks to promote transparency in public financial management. It discusses how to mitigate those risks through protecting households and businesses, and developing integrated multipronged financial strategies to fund government expenditure needs. Finally, it calls for promoting integrated strategies to strengthen financial resilience at the country and regional levels, and for mobilising development co-operation to strengthen global climate financial resilience.
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06/12/2022
Successfully implementing climate change mitigation policies both locally and internationally requires an understanding of the extent to which individuals see climate change as a threat and consider climate action a priority. In this blog, Kentaro Asai, Francesca Borgonovi and Sarah Wildi of the OECD Skills Centre, look at the extent to which individuals prioritise the environment over the state of the economy or vice versa and how this relates to individuals’ exposure to extreme weather events or negative labour market conditions.
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05/12/2022
Bilateral official development assistance (ODA) with gender equality objectives supports programmes and projects that seek to reach Sustainable Development Goal 5 and deliver the 2030 Agenda for women and girls. This brief provides a snapshot of ODA for climate, biodiversity and gender equality. The data show that more than half of all climate-related ODA had gender equality objectives in 2019-20, as did more than 60% of biodiversity-related ODA. 
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02/12/2022
This report reviews evidence that overshooting 1.5°C may push the earth over several tipping points, leading to irreversible and severe changes in the climate system. If triggered, tipping point impacts will rapidly cascade through socio-economic and ecological systems, leading to severe effects on human and natural systems and imposing important challenges for human adaptation. Of particular concern are the likely collapse of the West Antarctic and Greenland ice sheets and the abrupt melting of permafrost grounds in the Arctic, which would result in additional sea-level rise and greenhouse gas releases, leading to more warming.Based on the most recent science and consultations with renowned experts, Climate Tipping Points: Insights for Effective Policy Action argues that it is no longer appropriate to consider the risk of crossing tipping points as low-probability. Overshooting 1.5°C may likely lead to irreversible and severe impacts, which must be avoided, heightening the urgency to drastically reduce emissions within this decade. The report calls for a shift in how tipping points are treated in climate policy today and provides recommendations on how climate risk management strategies can better reflect the risks of tipping points in the areas of mitigation, adaptation and technological innovation.
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25/11/2022
As foreign direct investment (FDI) can help mitigate the repercussions of climate change, understanding what factors attract energy FDI is important. A large share of energy FDI originated from outside the energy sector, and given that renewable power FDI also comes from outside the energy sector, it is worthwhile to examine if drivers behind this type of FDI differ from what encourages investment by firms operating within the energy sector. This paper demonstrates that renewable energy FDI has been increasing, while FDI in fossil fuels is potentially slowing down. Results of the empirical analysis show that both the broader investment conditions and the strength of climate policies are vital for ensuring the favourable environment for renewable energy FDI, but the extent to which these factors impact investment decisions varies depending on where the investors come from: greenfield investors from outside the energy sector seem less responsive to the climate mitigation policies of host countries, whereas their location choices are tightly linked to the broader investment conditions in the destination economies.
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22/11/2022
Despite calls for the reform of incentives, including subsidies, harmful to biodiversity, including under the Convention on Biological Diversity and its 2011-2020 Aichi Targets, very few countries to date have undertaken what is considered the first step in this process, namely, to identify and assess the types and magnitudes of any incentives in place at the national level which are harmful for biodiversity or the environment more broadly.This paper begins with a brief literature review on subsidies harmful to biodiversity, followed by a detailed review and comparison of the existing national level studies to identify and assess subsidies and other incentives harmful to biodiversity or the environment. The report concludes with guidance and good practice insights to identify and assess subsidies and other incentives harmful to biodiversity, at national level.
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18/11/2022
Accounting for nearly 8% of global emissions, the steel sector plays a key role in achieving climate goals. In light of the growing momentum for decarbonisation, the steel industry is making progress in several areas. However, there is still a long way to go for reaching near-zero emissions. Echoing the COP 27 Presidency’s call for implementation, this brief aims to provide evidence-based trends on key indicators of steel decarbonisation progress.
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15/11/2022
Artificial intelligence (AI) systems can use massive computational resources, raising sustainability concerns. This report aims to improve understanding of the environmental impacts of AI, and help measure and decrease AI’s negative effects while enabling it to accelerate action for the good of the planet. It distinguishes between the direct environmental impacts of developing, using and disposing of AI systems and related equipment, and the indirect costs and benefits of using AI applications. It recommends the establishment of measurement standards, expanding data collection, identifying AI-specific impacts, looking beyond operational energy use and emissions, and improving transparency and equity to help policy makers make AI part of the solution to sustainability challenges.
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15/11/2022
The OECD launched the Inclusive Forum on Carbon Mitigation Approaches (IFCMA); which aims for the participation of a diverse set of countries – developed; emerging and developing – on an equal footing.
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09/11/2022
Hydrogen is a cross-cutting energy vector that can help to decarbonise various end-use sectors. At least two-thirds of the global hydrogen production is projected to be green hydrogen by 2050, supporting the transition to a net-zero emissions global energy system. This paper presents a value chain approach to identify priority areas for developing national hydrogen strategies, focussing on emerging and developing economies. Further, the analysis highlights success factors for green hydrogen projects, based on eight case studies covering applications in industrial, transport and power generation sectors. The paper summarises the enabling conditions and financing solutions that can spur the green hydrogen market creation and growth.
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08/11/2022
Understanding adults’ attitudes towards the environment is necessary to gauge the opportunities and challenges of creating effective and politically-feasible climate policies. Using data from the Wellcome Global Monitor 2020, the European Social Survey (Round 8), World Values Survey and EM-DAT, this paper examines how adults’ environmental attitudes vary within and across countries and details how environmental attitudes are associated with adults’ engagement in pro-environmental behaviours and support for environmentally-friendly policies. The paper explores whether the extent to which individuals prioritise the environment over the state of the economy or vice versa depends on individuals’ exposure to natural disasters or negative labour market conditions. Results indicate that people’s economic vulnerability and the sectors they work in impact their attitudes towards their environment and support for public policy. Furthermore, the findings suggest that increases in unemployment and exposure to natural disasters influence the extent to which individuals prioritise the environment.
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07/11/2022
The Climate Action Monitor 2022 updates the International Programme for Action on Climate (IPAC) annual comprehensive assessment of country progress towards net-zero goals and the Paris Agreement commitments. This year's edition draws on two new sets of indicators developed by IPAC on climate-related hazards and climate action: climate hazard and exposure indicators and the climate actions and policies measurement framework. These indicators provide granular evidence that although climate action and policies are expanding across the world, government ambition must increase significantly to deal with the range of climate risks faced globally and affecting people's livelihoods.
07/11/2022
What challenges and opportunities does the green transition entail for Latin America and the Caribbean? This 15th edition of the Latin American Economic Outlook explores options for the region to recast its production models, transform its energy matrix and create better jobs in the process. It argues that, for this transition to be just, stronger social-protection systems and open dialogue must help build new, sustainable social contracts. In support of this ambitious agenda, the report presents an array of financing options, including green finance, and advocates for renewed international partnerships.
07/11/2022
The Climate Action Monitor 2022 updates the International Programme for Action on Climate (IPAC) annual comprehensive assessment of country progress towards net-zero goals and the Paris Agreement commitments. This year's edition draws on two new sets of indicators developed by IPAC on climate-related hazards and climate action: climate hazard and exposure indicators and the climate actions and policies measurement framework. These indicators provide granular evidence that although climate action and policies are expanding across the world, government ambition must increase significantly to deal with the range of climate risks faced globally and affecting people's livelihoods.
07/11/2022
There are major gaps in the measurement of the adoption and stringency of countries’ climate actions and policies, notably in a manner coherent across countries, time, sectors and instrument types. The climate actions and policies measurement framework (CAPMF) aims to fill this gap. It is a structured and harmonised climate mitigation policy database that informs about countries’ climate action. The CAPMF was developed under the International Programme for Action on Climate (IPAC). It comprises 128 policy variables, grouped into 56 policy instruments and other climate actions, covering the 52 countries participating in IPAC and the period 2000-2020. The CAPMF is the most comprehensive internationally harmonised climate-related policy database currently available. Results indicate that IPAC countries strengthened their climate action between 2000 and 2020 in terms of both policy adoption and policy stringency, although individual countries progressed at different paces. Policy mixes in many countries changed from cross-sectoral to a more sectoral focus and from non-market to market-based approaches. Importantly, results suggest a positive relationship between stronger climate action and greater emissions reductions but further analysis is needed to fully assess policy effectiveness.
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03/11/2022
Accelerating the transition to net zero greenhouse gas (GHG) emissions is urgently required to contain the risks of climate change. As countries seek to reduce GHG emissions, they can employ or reform a wide range of policy instruments. This report tracks how explicit carbon prices, energy taxes and subsidies have evolved between 2018 and 2021. This is an important subset of the policy instruments available to governments. All instruments considered in this report either directly change the cost of emitting GHG or change electricity prices. Reforming these instruments could help to meet climate targets, lead to cleaner air and water, and improve public finances. The report covers 71 countries, which together account for approximately 80% of global GHG emissions and energy use. Explicit carbon prices, as well as energy taxes and subsidies are detailed by country, sector, product and instrument. The use of a common methodology ensures comparability across countries. Summary indicators facilitate cross-country comparisons and allow policy makers and the public to keep track of progress made and identify opportunities for reform.
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02/11/2022
This paper explores what the first global stocktake (GST1) under the Paris Agreement could usefully do in relation to two elements of its mandate on adaptation, namely, to review the adequacy and effectiveness of adaptation, and to enhance the implementation of adaptation action. This paper also discusses potential outputs from GST1, and how they could facilitate the intended outcomes of the process on adaptation, taking into account a learning-by-doing approach. This paper highlights that a comprehensive collective assessment of the adequacy and effectiveness of adaptation requires data that is currently not available for various reasons. Nonetheless, this paper finds that the GST’s ability to incorporate learning and its scope for continuous improvement provides an important opportunity to develop, apply and refine approaches and methodologies over time to better address the GST’s mandate on adaptation in subsequent cycles. The paper concludes that the GST1 process could help to inform and enhance Parties’ adaptation efforts by identifying priority data needs and gaps, increasing understanding of different approaches to assessing adaptation actions, identifying enabling factors for effective adaptation, and building linkages with parallel processes including on the Global Goal on Adaptation. In this way, the GST1 could play an important role in helping to set a foundation for improved approaches and data on adaptation over time that can feed into future GSTs and support the long-term goals of the Paris Agreement.
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02/11/2022
“Authorisation” is a new but as yet undefined component of the guidance for implementation of Article 6 of the Paris Agreement. Authorisation is important as it triggers both corresponding adjustments and reporting requirements. This paper identifies and analyses open questions related to what is authorised, by what process, for what purpose, the format and timing of authorisation, and how any ex-post changes to authorisation can be made. The answers to these questions can affect the attractiveness for Parties and the private sector to participate in Article 6 cooperation. The paper also outlines areas of Article 6.2 guidance that could be usefully clarified at the international level, and implications of different options for the domestic implementation of Article 6 authorisation provisions, drawing from examples of a few frontrunner Parties who have already established bilateral agreements and domestic structures for international cooperation under Article 6. The paper concludes that some of the open questions could be clarified at the international level, such as how to report any changes to authorisations and if the authorisation needs to be provided concurrently by the participating Parties. Other questions could be clarified at the national level by the participating Parties providing the authorisation. These include whether participating Parties can choose to include additional elements in their authorisations, and which roles authorised entities could play.
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24/10/2022
India has achieved major progress in its energy sector over the last two decades. Still, investment needs to scale up considerably to meet the government’s ambitions to achieve 500 GW of renewable energy capacity and energy-intensity reductions of 45% by 2030. Targeted application of public funds, alongside international climate and development finance, can crowd in investors and channel private capital to meet India’s clean energy goals. The Clean Energy Finance and Investment Roadmap of India highlights key actions needed to accelerate the development of energy efficiency measures in micro, small and medium enterprises, offshore wind and green hydrogen production. The report provides a comprehensive overview of the initiatives to date and challenges to scale up investments. It also provides a number of tailored recommendations for the Government of India, development partners and the private sector.
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13/10/2022
Although policy makers and industry acknowledge the urgency of action for the net-zero industry transition in emerging and developing economies, the investment challenge remains significant. This blog examines the critical role of industry in emerging economies, as well as programmes to support dialogue to identify and propose solutions towards reaching net-zero emissions by mid-century and to achieve the goals of the Paris Agreement.
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