16 July 2015
OECD, IEA, NEA, ITF Report Identifies Policies Misaligned with a Low-Carbon Economy
story highlights

A report titled 'Aligning Policies for a Low-Carbon Economy' identifies current policy and regulatory frameworks that are not in line with creating a low-carbon economy.

The report focuses on contradictory public policies, such as those that encourage investment in fossil fuels and work against global goals on climate change.

It examines the policy domains of investment, taxation, innovation and skills, trade, and adaptation; as well as sectors greatly impacting the climate, such as electricity, urban mobility and rural land use.

low_carbon_economy3 July 2015: A report titled ‘Aligning Policies for a Low-Carbon Economy’ identifies current policy and regulatory frameworks that are not in line with creating a low-carbon economy. The report focuses on contradictory public policies, such as those that encourage investment in fossil fuels and work against global goals on climate change. It examines the policy domains of investment, taxation, innovation and skills, trade and adaptation, as well as sectors greatly impacting the climate such as electricity, urban mobility and rural land use.

According to the authors, two-thirds of energy supply investment goes to fossil fuels, partly because regulation still tends to favor short-term investments over long-term investments for sustainable growth. They also note that the share of public funding allocated to research and development (R&D) has dropped from 11% to 4% since 1980 in International Energy Agency (IEA) countries.

In addition, the report finds that 49% of agricultural subsidies in Organisation for Economic Co-operation and Development (OECD) countries are potentially harmful to the climate, and that many tax provisions, such as those related to company cars and property taxes, encourage carbon-intensive choices.

Speaking on the report at an event in London, UK, OECD Secretary-General Angel Gurría suggested that governments should begin by reporting which of their policies are counterproductive in the context of climate change objectives.

The report was jointly produced by the OECD, the IEA, the Nuclear Energy Agency (NEA) and the International Transport Forum (ITF). [OECD Publication Webpage] [Publication: Aligning Policies for a Low-Carbon Economy] [OECD Secretary-General Remarks]

related posts