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Applying a green lens -- Assia Elgouacem, OECD

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This presentation was made by Assia Elgouacem, OECD, at the Introductory Workshop on Green Budgeting Tools held at the OECD, Paris, on 29 April 2019

Published in: Government & Nonprofit
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Applying a green lens -- Assia Elgouacem, OECD

  1. 1. OECD’S WORK ON GOVERNMENT SUPPORT FOR FOSSIL FUELS Paris Collaborative on Green Budgeting 2nd Green Budgeting Experts Meeting, 29 April 2019 Assia Elgouacem, Economist, Environment Directorate
  2. 2. 2 The Inventory approach to measuring government support for fossil fuels
  3. 3. 3 The Inventory approach to measuring government support for fossil fuels – direct transfers
  4. 4. 4 The Inventory approach to measuring government support for fossil fuels – tax revenue foregone
  5. 5. 5 The Inventory approach to measuring government support for fossil fuels – other revenue foregone
  6. 6. 6 The Inventory approach to measuring government support for fossil fuels – transfer of risk
  7. 7. 7 The Inventory approach to measuring government support for fossil fuels – induced transfers
  8. 8. 8 The OECD Inventory 2019 – number of budgetary programmes and tax provisions The OECD Inventory covers 44 countries: 36 OECD member states and 8 partner economies. It documents close to 1200 individual government policies. 0 50 100 150 200 250 direct transfers tax expenditures Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming.
  9. 9. OECD member states and partner economies provided around USD 140 billion in support for fossil fuels in 2017, 40% lower than the highest level in 2013. 9 Support in OECD and selected partner economies continues to decline … 0 50 100 150 200 250 2009 2010 2011 2012 2013 2014 2015 2016 2017 Billion (constant USD) GSSE PSE CSE Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming.
  10. 10. 10 …but global IEA-OECD estimates indicate a slight increase in government support in 2017 The combined estimate cover 76 economies responsible for more than 90% of global carbon emissions. Total support stands at USD 340 billion in 2017. 0 20 40 60 80 100 120 140 0 100 200 300 400 500 600 700 2010 2011 2012 2013 2014 2015 2016 2017 Average import cost of crude (constant USD) Billion (constant USD) Coal Natural Gas Petroleum Price of Oil Source: OECD Inventory of Support Measures for Fossil Fuels (2019), forthcoming; IEA World Energy Outlook, (2018)
  11. 11. 11 OECD participation in G20 work on inefficient fossil-fuel subsidies
  12. 12. 12 OECD participation in G20 work on inefficient fossil-fuel subsidies
  13. 13. • The SDG 12 include a target, 12.c., calling for the phasing out of “inefficient fossil fuel subsidies that contribute to wasteful consumption” by 2030. • The OECD, in collaboration with the Global Subsidies Initiative, produced a paper for UN Environment (the “custodian” agency) on the scope and methods for constructing the indicators. • The methodology was peer reviewed and endorsed by the UN Committee on Environmental Economic Accounts (UNCEEA) in June 2018. 13 The OECD has scaled up efforts on SDGs
  14. 14. • Develop indicators of government support for fossil fuels that allow for cross-country comparison. • Extend Inventory coverage to main producers of fossil fuels. • Measure the cost of risk transfer to the government for providing credit assistance to fossil-fuel-related projects. • Study the impact of government support to inform reform processes. 14 Next steps
  15. 15. Learn more: – OECD support for fossil fuels: http://oe.cd/fossil-fuels Contact the OECD Fossil Fuel Support Intelligence Unit: – Nathalie Girouard, Head of Division, Environment Directorate, nathalie.girouard@oecd.org – Kurt Van Dender, Head of Unit, Centre for Tax Policy and Administration, kurt.vandender@oecd.org – Assia Elgouacem, Economist, Environment Directorate, assia.elgouacem@oecd.org 15 Thank you!

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