International Business Green Economies Dialogue: Getting Green Growth Policies Right

USCIB Side-event

Nathalie GirouardCoordinator Green Growth and Sustainable Development

www.oecd.org/greengrowth

• Brochure: OECD work of relevance to Rio+20• Available from www.oecd.org/rio+20

www.oecd.org/greengrowth

The OECD Green Growth Strategy

• Multi-disciplinary inter-governmental process– Involving 25 OECD Committees: delegates from Ministries of Finance, Economy,

Environment, Agriculture, Development Co-operation, Industry, etc.

• Strategy delivered to Heads of State and Ministers in 2011:– Towards Green Growth– Tools for delivering on green growth– Towards Green Growth:

Measuring Progress – OECD Indicators

• Embedded in OECD work onNew Approaches to Economic Challenges growth

www.oecd.org/greengrowth

Delivering on green growth: GG in OECD national and multilateral policy surveillance

• Country peer reviews and studies• Economic Surveys• Environmental Performance Reviews• Innovation Reviews• Investment Policy Reviews• Green Cities Programme

• Greening Growth and Going for Growth

• Analyse the side effects of growth-enhancing policy priorities on the environment (and on income distribution)

• Analyse the links between environmental policies and outcomes and the effects of environmental policies on growth

www.oecd.org/greengrowth

Green Growth and Developing Countries:

• Proposes a policy framework and criteria for policy making that can be used by developing countries.

• Will look at how progress could be assessed.

• Based on consultation with developing countries ; helps developing country partners shape a green growth agenda relevant to them .

• An interim version of the report is being presented for consultation at Rio+20; then in-depth consultation at regional and country levels.

www.oecd.org/greengrowth

Delivering on green growth: OECD Sectoral and Thematic Green Growth Studies

• Food and Agriculture• Energy (OECD/IEA)• Biodiversity • Water• Development• Innovation and technology transfer• Freedom of investment for green growth• Green Financing• Environmental regulations and growth• Job potential of a shift towards a low-carbon

economy

www.oecd.org/greengrowth

Removing inefficient fossil fuel subsidies: good for the environment and the economy

Impacts on GDP of unilateral subsidy phase out in 2050 (% deviation from baseline)

(1) Middle East & Northern Africa (2) Other Asian, African and Latin American Emerging economies

Multilateral

subsidy removal

would lead to 6%

less greenhouse

gas emissions

globally in 2050

than BAU

Source : OECD ENV-Linkages Model; based IEA subsidies data for the year 2009

www.oecd.org/greengrowth

Note: This graph is based on an arithmetic sum of the individual support measures identified for a sample of 21 OECD countries, i.e. the 24 OECD countries included in the inventory net of those countries for which estimates have not been collected yet (Chile, Iceland and Luxembourg). It reflects the value of tax relief measured under each jurisdiction’s benchmark tax treatment. The estimates do not take into account interactions that may occur if multiple measures were to be removed at the same time Source: OECD (2011), Inventory of Estimated Budgetary Support and Tax Expenditures for Fossil Fuels.

Support to fossil fuel production and use in advanced economies, by fuel type

www.oecd.org/greengrowth

Revenues from environmentally related taxes In per cent of GDP, selected countries, 2010

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Mex

ico

Colo

mbi

aPe

ru *

Uni

ted

Stat

esG

uate

mal

a *

Uru

guay

Chile

Cana

da *

Arg

enti

na *

New

Zea

land

Chin

aJa

pan

Spai

nA

ustr

alia

Fran

cePo

land

Hun

gary

Slov

ak R

epub

lic *

Swit

zerl

and

Belg

ium

Icel

and

Sout

h A

fric

aG

erm

any

Dom

inic

an R

epub

lic *

Luxe

mbo

urg

Cost

a Ri

ca *

Nor

way

Aus

tria

Port

ugal

Irel

and

Uni

ted

King

dom

Gre

ece

Ital

ySw

eden

Kore

aCz

ech

Repu

blic

Finl

and

Esto

nia

Slov

enia

Braz

ilIs

rael

Net

herl

ands

Turk

eyD

enm

ark

% o

f GD

P

Other Motor vehicles Energy

* 2009 figure www.oecd.org/env/policies/database

www.oecd.org/greengrowth

THE IMPORTANCE OF CLEAR POLICY SIGNALSTrends in patenting activity worldwide

Note: Patent counts refer to the number of "claimed priorities", by the first filing date worldwide, shown as 3-year moving averages and indexed on the year 1997.Source: OECD calculations based on data extracted from the EPO Worldwide Patent Statistical Database (PATSTAT, October 2011) using algorithms developed at the OECD and the EPO. See Energy and Climate Policy and Innovation: Bending the Trajectory (OECD, 2012).

www.oecd.org/greengrowth

OECD framework for measuring well-being and progress

www.oecd.org/greengrowth

Towards green growth - Monitoring progressMeasurement framework

www.oecd.org/greengrowth

Towards green growth - Monitoring progress Indicator groups and topics

www.oecd.org/greengrowth

Green Growth Indicators in practice

Green growth indicators are used inOECD work: country studies, peer reviews

Green growth indicators are applied incountries (OECD countries, emerging economies, developing countries)

• The Czech Republic, Korea and theNetherlands have applied the OECDgreen growth measurement framework

• Work is underway in Mexico, Colombia,Costa Rica, Ecuador, Guatemala, Paraguay,in partnership with UNIDO.

• Work is underway in Kyrgyzstan.• Work is planned in East-Asian countries.

Feedback on policy relevance Exchange of experience and best practices Contribution to indicator improvement

www.oecd.org/greengrowth

Mission: enhance and expand efforts to identify and address major

knowledge gaps in green growth theory and practice help countries design and implement green growth policy