June 2017: A report by the Organization for Economic Co-Operation and Development (OECD) finds most countries have yet to fully disconnect economic growth from fossil fuel use and pollutant emissions. OECD underscores that progress is too slow, and if emissions embodied in international trade are included, advances in environmental productivity are more modest.

The report, titled ‘Green Growth Indicators 2017’, states that since the 1990s all OECD and Group of 20 (G20) countries have increased their overall environmentally-adjusted productivity (a measurement of economic productivity that accounts for pressures like pollution and natural resource use). Furthermore, carbon productivity (gross domestic product (GDP) per unit of carbon dioxide emitted) has improved, with 50% of the 35 OECD members “decoupling” emissions from growth, which means that emissions no longer rise in tandem with economic growth.

When carbon dioxide emitted during production stages of goods or services abroad are included in calculations, only 12 OECD countries have decoupled their emissions from GDP.

However, OECD observes that a more nuanced picture emerges when factoring in trade flows and considering emissions from the perspective of final demand. The publication explains that most OECD countries are net importers of carbon dioxide emissions, so when the carbon dioxide emitted during production stages of goods or services abroad are included in calculations, only 12 OECD countries have decoupled their emissions from GDP.

The report observes that no country is performing well on all green growth dimensions, with insufficient progress on relieving pressure on environmental services such as climate regulation and water purification or preserving the natural asset base. Denmark, Estonia, the UK, Italy and the Slovak Republic have made the most progress on green growth since 2000.

On renewable energy, the report states that Iceland, Costa Rica and Sweden have the highest share of renewables. Brazil, Russia, India, China and South Africa (BRICS) have a higher average share of renewables (14.8%) than OECD countries (9.6%), but the BRICS’ share of renewables has decreased since 1990 while OECD countries share of renewables has risen. The report also finds air pollution remains “dangerously high,” with only one in three OECD countries meeting the World Health Organization (WHO) air quality guidelines for fine particulate matter, and high and rising pollution levels in China and India.

On technology, the publication notes that inventive activity has slowed in all major technological areas related to the environment since 2011. The report further observes that, even though countries are using environment-related taxes, their contribution to total tax revenue has declined since 1995.

Additional findings include rapid urban growth and faster growth in OECD built-up areas, with buildings covering 30% more land now than in 1990. OECD explains that building over land means a loss of agricultural terrain and biodiversity and has negative effects on the water cycle.

“While there are signs of greening growth, most countries show progress on just one or two fronts and little on the others,” said OECD Environment Director Simon Upton at the report launch. He called for “much greater efforts across the board” to safeguard natural assets, reduce our collective environmental footprint and sever the link between growth and environmental pressures. [Publication: Green Growth Indicators 2017][OECD Press Release]