©Jackie Naegelen/Reuters

The car industry has taken a dent since the recession started to bite in 2008, but even before then, new patterns were emerging that would reshape the sector for a long time to come. 

©Mazzur. Under licence from Shutterstock

Carbon dioxide (CO2) is a long-lived gas. Almost half of the CO2 emitted in 2013 will still be in the atmosphere a century from now. This means that its concentration, and warming potential, increases over time, unless the rate of accumulation can be cut to zero. This is the goal that the OECD is urging all countries to achieve: zero net emissions by mid-century. To accomplish this, the explicit price of carbon dioxide emissions should be aligned more closely with their true cost, while avoiding expensive policy options that could be replaced by more cost-effective ones. 

 

An interview with Thierno Bocar Tall, CEO of African Biofuels and Renewable Energy Company (ABREC)

©Mischa Keijser/Cultura Creative/AFP

Since 1997 the Netherlands has had a tax allowance scheme aimed at promoting investments in energy-saving technologies and sustainable energy production. This so-called Energy Investment Tax Allowance, or EIA to the Dutch, reduces up-front investment costs for firms investing in the newest energy-saving and sustainable energy technologies. The basic design of the EIA has remained the same over the past 15 years: firms investing in technologies listed in an annually updated “energy list” may deduct some of the investment costs from their taxable profits.

The world's largest solar-powered boat, Turanor PlanetSolar, arrives in Paris, France, docking along the river Seine, 10 September 2013. The catamaran powered exclusively by solar energy, completed the first solar-powered trip around the world on 4 May 2012, after travelling over 60,000 km (37,282 miles) in 584 days.

G20 countries are treating a range of energy issues as a central concern, but four of them require particular attention.

©DR

Climate change won't wait

The European Union may be facing some difficult economic challenges, but that's no excuse for not acting now to create an economy based on resource efficiency and low-carbon development. The benefits are potentially enormous, including lower greenhouse gas emissions, more efficient use of energy and resources, and rising growth and innovation.

More...

©IEA

The IEA’s World Energy Outlook 2012 was released 12 November. Though oil prices are at historic highs, the future for energy is promising, provided the right policies are in place. 

Thomas Edison’s assertion that “genius is 1% inspiration, 99% perspiration” is particularly pertinent to the solar energy sector. This remarkable technology could hold answers to so many of the world’s energy challenges, but only at the cost of hard effort and investment. Solar Energy Perspectives, the first in-depth study dedicated to solar technology from the International Energy Agency (IEA), a sister organisation of the OECD, gives a comprehensive analysis of solar energy’s potential as well as the policies required to increase its capacity in the coming decades. 

Click to enlarge

For many years Brazil was the world’s largest biofuel producer, until it was overtaken by the US in 2006. Brazil’s biofuel production reached 28.5 billion litres in 2010, which according to International Energy Agency (IEA) estimates is 27% of world biofuel production, most of which is ethanol, only a small portion (2.4 billion litres) of that being biodiesel. For 2011, however, IEA estimates show a drop of more than 4 billion litres in Brazilian biofuel production compared with the previous year. But there is good reason to believe that this drop will prove temporary. 

The Fukushima tragedy in Japan in March 2011 has unsettled the nuclear energy outlook. Nuclear power started out almost 60 years ago with the Obninsk plant near Moscow in 1954, but after strong growth in the 1960s and 1970s, the industry declined sharply in the 1980s due to costs, delays and safety concerns after the Three Mile Island accident in the US in 1979, and the Chernobyl accident in Ukraine in 1986.

How willing are you to pay more for renewable energy? Judging by a survey we previewed in 2010 (see here for instance) and whose results have now been published, the answer is: not that much. Greening Household Behaviour shows that while people may change their habits if given the right incentives and information, they are not quite as ready to dip deeply into their pockets.

The Cree Indians around Lake Athabasca used the gobs of tar they found there to waterproof their canoes. The potential of this mundane stuff to yield oil was gleaned early in the 20th century, and Athabasca in Alberta, Canada sits on the world’s richest petroleum resource: more than 2 trillion barrels, as much as all the remaining recoverable conventional oil in the world.

How much more would you be willing to pay for renewable energy? Are environmental concerns a factor in how much you use your car? And are you really thinking about the environment when you buy organic food? All these questions, and more, are at the heart of the 2008 survey which forms the basis of Greening Household Behaviour. A part of the OECD’s Green Growth Strategy, this survey covered 10,000 households across ten OECD countries to determine how our day-to-day relationship with the environment may affect reforms, and is due for another round in 2011.

Click to enlarge.

Despite the repeated warnings about its effects on climate change, as well as resource depletion, the most recent projections from the World Energy Outlook 2009 show that coal will still remain the principal powergenerating fuel for decades to come.

Despite the mitigated outcome of the recent Copenhagen climate change summit, efforts to develop renewable energy still make progress. Practical solutions to improve the development and implementation of renewable energies and boost their efficiency are constantly being sought. Attention is starting to focus on cities.

Radovan Stoklasa/Reuters

Reducing greenhouse gas (GHG) emissions is a key objective of energy policies in many countries. As energy consumption will continue to increase in the medium and long term, even if the recent financial crisis might curtail this rise momentarily, there is a general consensus on the need to foster the development and use of all carbon-free options for energy supply. What role can nuclear energy play?

©Aladin Abdel Naby/Reuters

Environmentally-friendly investments form part of many recently launched recovery programmes. With the right policies, they could achieve growth and a cleaner planet as well.

Economic data

GDP growth: +0.5% Q3 2018 year-on-year
Consumer price inflation: 2.9% Sept 2018 annual
Trade: +2.7% exp, +3.0% imp, Q4 2017
Unemployment: 5.2% Sept 2018
Last update: 22 Nov 2018

E-Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly


Online edition
Previous editions

Don't miss

  • Food production will suffer some of the most immediate and brutal effects of climate change, with some regions of the world suffering far more than others. Only through unhindered global trade can we ensure that high-quality, nutritious food reaches those who need it most, Angel Gurría, Secretary-General of the OECD, and José Graziano da Silva, Director-General of the United Nations Food and Agriculture Organization, write in their latest Project Syndicate article. Read the article here.
  • Globalisation will continue and get stronger, and how to harness it is the great challenge, says OECD Secretary-General Gurría on Bloomberg TV. Watch the interview here.
  • OECD Secretary-General Angel Gurría with UN Secretary-General António Guterres at the 73rd Session of the UN General Assembly, in New York City.
  • The new OECD Observer Crossword, with Myles Mellor. Try it online!
  • Watch the webcast of the final press conference of the OECD annual ministerial meeting 2018.
  • Listen to the "Robots are coming for our jobs" episode of The Guardian's "Chips with Everything podcast", in which The Guardian’s economics editor, Larry Elliott, and Jeremy Wyatt, a professor of robotics and artificial intelligence at the University of Birmingham, and Jordan Erica Webber, freelance journalist, discuss the findings of the new OECD report "Automation, skills use and training". Listen here.
  • Do we really know the difference between right and wrong? Alison Taylor of BSR and Susan Hawley of Corruption Watch tell us why it matters to play by the rules. Watch the recording of our Facebook live interview here.
  • Has public decision-making been hijacked by a privileged few? Watch the recording of our Facebook live interview with Stav Shaffir, MK (Zionist Union) Chair of the Knesset Committee on Transparency here.
  • Can a nudge help us make more ethical decisions? Watch the recording of our Facebook live interview with Saugatto Datta, managing director at ideas42 here.
  • The fight against tax evasion is gaining further momentum as Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama and Tunisia signed the BEPS Multilateral Convention on 24 January, bringing the total number of signatories to 78. The Convention strengthens existing tax treaties and reduces opportunities for tax avoidance by multinational enterprises.
  • Rousseau
  • Do you trust your government? The OECD’s How's life 2017 report finds that only 38% of people in OECD countries trust their government. How can we improve our old "Social contract?" Read more.
  • Globalisation’s many benefits have been unequally shared, and public policy has struggled to keep up with a rapidly-shifting world. The OECD is working alongside governments and international organisations to help improve and harness the gains while tackling the root causes of inequality, and ensuring a level playing field globally. Please watch.
  • Checking out the job situation with the OECD scoreboard of labour market performances: do you want to know how your country compares with neighbours and competitors on income levels or employment?
  • Trade is an important point of focus in today’s international economy. This video presents facts and statistics from OECD’s most recent publications on this topic.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at www.oecd.org/careers .
  • Visit the OECD Gender Data Portal. Selected indicators shedding light on gender inequalities in education, employment and entrepreneurship.

Most Popular Articles

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2018