A street destroyed by the earthquake in downtown Port-au-Prince, Haiti, on 3 February 2010. ©Eduardo Munoz/Reuters

Last year, actor Sean Penn called on world leaders to help Haiti deal with the "looming existential threat" of climate change. 

©David Rooney

Moving beyond a petroleum-based economy is not just about choosing alternative sources of energy. It is about rethinking almost everything around us. The fleece you’re wearing, for example, is made from the same oil-based chemical as antifreeze or engine coolant. This is where green chemistry comes in. Advances in biotechnology are allowing us to manufacture fabrics, plastics, fuels and chemicals from bio-based resources using renewable resources.

©2016 by NASA/ZUMA/REA

The Paris climate summit in November 2015 was a great diplomatic success but aviation, like shipping, was not included in the final agreement. International air transport currently represents about 1.5% of all man-made emissions, though with a projected doubling of demand for air travel over the next 10-20 years, up from approximately 3.5 billion in 2015, action had to be taken. 

Mike Hutchings/Reuters

Trade is on the rise again globally, and ships are back trawling our seas, connecting places and people. But ships don’t just drive trade, they unfortunately contribute to climate change too. In fact, global shipping is responsible for about 2.5% of global greenhouse gas (GHG) emissions, and these are projected to rise by between 50% and 250% by 2050 if nothing improves. And yet, maritime transport was excluded from the Paris Climate Agreement struck two years ago.  

©Marcelo Del Pozo/Reuters

Two years after the historic Paris Climate Agreement was struck at the UN COP21 conference, there are encouraging signs of progress, but there is a huge amount left to do. 

(from left) Nicolas Hulot, Minister of the Ecological and Inclusive Transition, France; Stéphanie Antoine, compère from France 24; Rafael Pacchiano, Environment Secretary, Mexico; Angel Gurría, Secretary-General of the OECD ©Damien Valente/MTES/DICOM

Our response to the climate challenge will define our collective future for generations to come. We must act. We must act swiftly, collectively, and decisively. Some fear that decisive climate action may have a high price tag in economic and social terms. Strong climate action is not a threat to, but instead the very foundation of our economic well-being in the long run. At the OECD we are rolling up our sleeves to make this happen.

Cultura/Janie Airey

There is enough capital out there and renewable energy technologies have become more cost-competitive, so why is investment still wanting? Policymakers hold the key.

Wherever in the world they are emitted, greenhouse gases have a global impact. Narrow national agendas are inadequate to deal with global climate change disruption. Without vision and resolve, more countries may yet retreat further into their national bunkers. We would all suffer in such a bleak scenario.

©Roy Philippe/HEMIS.FR

In September 2017, the United Nations (UN) adopted a dedicated Sustainable Development Goal (SDG) on water. For years water had been under-valued, under-priced and too often taken for granted, so Goal 6 on water and sanitation was a momentous recognition of water’s crucial policy importance. Though just one of 17 SDGs, this goal also sits at the heart of many of them: water is essential for food security, health, cities, sustainable consumption and production, and terrestrial ecosystems. 

shutterstock.com

With new business models emerging, competition in the electricity sector is beginning to stir.

The rise of the digital economy has led numerous markets to experience radical innovation in business models. This has shaken incumbent firms and benefited consumers. Electricity is no exception, with green and distributed generators located in the workplace and home already posing existential threats to traditional mass supply-based businesses. And now a variety of new business models are emerging to disrupt retail too. With innovation needed to deliver on commitments to combat climate change and address fuel poverty, radical innovation in the electricity sector holds promising potential. 

At the 2009 UNFCCC negotiations, developed countries committed to mobilising US$100 billion each year for climate action in developing countries by 2020. As negotiations on a new climate agreement intensified in the lead-up to COP 21 in 2015, an understanding of the progress made towards this commitment was important in keeping everyone around the table. In this context, the OECD estimated that US$62 billion had been mobilised in 2014, up by US$10 billion since 2013. Updated estimates towards the US$100 billion commitment will be needed in the lead-up to 2020, along with new information about climate finance beyond this goal. But further progress relies on robust and transparent tracking of the different streams of climate finance. 

©Russell R. Scott/Citizenside/AFP

Pricing carbon is one of the surest policy means we know for curbing greenhouse gas emissions and meeting the targets of the Paris Climate Agreement agreed in 2015. Has there been any progress with its implementation since then? Not enough, is the verdict of some of the world’s leading experts. Read post here.

We know decarbonisation will require a massive shift of investment away from fossil fuel and into such areas as renewable energy, energy efficiency in buildings and industry, electric vehicles and public transport. A key challenge for policy makers is to understand how to make best use of available policy levers to help accelerate this shift towards low-carbon investment. This includes facilitating the financing of low-carbon investment, including financing through equity investment or – on the debt side – through bank loans and bonds. Read post here.

©David Rooney

Blended finance is not a new concept but it certainly has returned as a new buzzword. 

©Mark Blinch/Reuters

“National governments must take the lead and do so with a recognition that they are part of a global effort.” Speaking last week at the Munk School of Global Affairs in Toronto, OECD Secretary-General Angel Gurría urged countries not to retreat behind their national borders in dealing with climate change. A purely inward-looking approach to climate change is clearly inadequate as we see signs that short-term national self-interest is increasingly seeping into the global debate on climate action. This is especially a risk as a number of countries continue to try and escape from low growth traps. Effective climate action needs ambition and action at both national and global levels. Read post here.

The developing world urgently needs more and better infrastructure. Affordable and accessible water supply systems, electricity grids, power plants and transport networks are critical to reducing poverty and ensuring economic growth. The way new infrastructure is built over the next 10 years will determine if we meet the Sustainable Development Goal (SDGs) and the Paris Agreement objectives. Considering the long lifespan of most infrastructure projects, the decisions developing countries make about how they build infrastructure are critical: we can either lock-in carbon intensive and polluting forms of infrastructure, or ‘leap frog’ towards more sustainable pathways. Read post here.

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Fossil fuel subsidies keep fuel prices artificially low, and weigh heavily on government budgets and on the climate too. Phasing out these subsidies will help reduce CO2 emissions and possibly raise public revenues as well.

©AFP

Low-lying island states like the Maldives and densely populated coastal cities like New York have at least one thing in common: they are faced with the challenge of rising sea levels. In fact, close to a quarter of the world’s population lives within 100 metres of a coast. Although we cannot predict exactly the pace and upper limits of the current rise, we do know that sea levels will continue rising and that the impacts will be costly.

Dimitar Dilkoff/AFP

The world’s oceans are being damaged by a constant and unprecedented accumulation of waste known as marine debris. The waste, mostly from effluent human activities, is brought to the oceans through currents and often carried far from where it originated. 

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Demographics, lifestyle, urbanisation, farming and transport: all are facts of life and, as we try to manage our economies and our environment, are the focus of millions of policy actions around the world. We must reduce pollution and congestion. 

Following the hand-wringing, relief-sighing and back-slapping in Paris after nailing the landmark agreement on climate change in December, I took myself off to a farm in rural England to enjoy the new year driving tractors and herding small children (not with tractors). Conversations with friends typically started with remarks about the unseasonably mild weather and often ended on climate change, and unsurprisingly, COP21. As a soundbite buff, I quickly got my lines sorted: “COP21 gave governments a giant shove in the right direction, an emotional rollercoaster ride of hope, expectation and promise”. Read post here.

©James Thew/Alamy Stock Photo

Meteorology was the first scientific discipline to use space capabilities in the 1960s, and today satellites provide observations of the state of the atmosphere and ocean surface for the preparation of weather analyses, forecasts, advisories and warnings, for climate monitoring and environmental activities. Three-quarters of the data used in numerical weather prediction models depend on satellite measurements. 

Drivers complain that Paris these days is a vast construction site. Streets are being ripped up to make way for tramways, electric car charging posts, and ever more bike lanes and docking stations. The first major city to have put in a free bike-sharing system, back in 2007, Paris has now moved to phase two with more and lighter bikes, a docking system that allows overflow and the introduction of shared electric bikes. 

With marine biodiversity deteriorating at an alarming rate, there will soon be little left of the “octopus’s garden” that The Beatles once sang about. According to Marine Protected Areas: Economics, Management and Effective Policy Mixes, pollution, overfishing and rising temperatures have damaged or destroyed 60% of the earth’s marine ecosystems. Policymakers have been addressing the issue, too, and are increasingly designating marine protected areas (MPAs) as an instrument for the preservation of biodiversity. 

Ambitious action on climate is an imperative. The G20 leaders have a chance to reinforce the Paris Climate Agreement and raise ambition with concrete measures to ensure significant progress towards net zero economies and reap the benefits of investment now in jobs and economic growth. Read post here.

Forests are essential for fighting climate change, but planting and managing them is not as easy as it might sound, as the OECD Forest Scheme shows. Watch the video.

Javier Goyeneche is the founder of ECOALF, a fashion brand that turns discarded fishing nets, post-consumer plastic bottles and coffee into clothes. He visited the OECD on 19 October 2016, giving a talk on his sustainable fashion company. Part of the Coffees of the Secretary-General series, you can read the complete transcript of Mr Goyeneche below. 

©OECD

Canadian author, filmmaker and social activist Naomi Klein visited the OECD on 24 November 2015, giving a talk on why climate change changes everything. Part of The Coffees of the Secretary-General series, you can read the complete transcript of Ms Klein’s presentation below. 

China was among the near-200 countries to adopt the Paris Climate Change Agreement (Paris Agreement) at an historic UN conference in Paris, France on 12 December 2015. As an emerging economy and one of the world’s major emitters of greenhouse gases, how China implements the Paris Agreement will be important. We asked Dr Xuedu Lu of the Asian Development Bank for his views.

Citizens demand action at the UN climate change conference in Paris in November-December 2015 ©GDE AGUNG/Citizenside/AFP

The Paris Agreement is a landmark in collective efforts on climate change and is the result of many years’ hard work. It must now be implemented.

Economic data

GDP growth: +0.6% Q2 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: 13 Nov 2018

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  • 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.
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  • 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.

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