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2016 GGSD Forum - Parellel Session C: Presentation by Ms. Virginie Marchal and Mr. Richard Baron, OECD

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Key findings from "Aligning Policies for a Low-Carbon Economy"

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2016 GGSD Forum - Parellel Session C: Presentation by Ms. Virginie Marchal and Mr. Richard Baron, OECD

  1. 1. Richard Baron, Virginie Marchal, OECD Key finding from “Aligning Policies for a Low-carbon Economy” OECD Green Growth and Sustainable Development Forum Paris, 10 November 2016
  2. 2. 2 Preparing for COP21: OECD Ministers in 2014 At their Ministerial Council Meeting, OECD countries invited “OECD, in cooperation with the IEA, the NEA and the ITF […] to examine how to better align policies across different areas* for a successful economic transition of all countries to sustainable low-carbon and climate- resilient economies and report to the 2015 OECD MCM.” *economic, fiscal, financial, competition, employment, social, environmental, energy, investment, trade, development co-operation, innovation, agriculture and sustainable food production, regional as well as urban and transport policies
  3. 3. WHY DOES POLICY COHERENCE MATTER? Climate policy comes on top of other policy goals and frameworks ECONOMIC TRADE COMPETITION FISCAL DEVELOPMENT COOPERATION SOCIAL INVESTMENT CLIMATE
  4. 4. WHY DOES POLICY COHERENCE MATTER? The need for coherence and policy alignment 1. Decades of coal, oil and gas use have made their marks on policy frameworks 2. Existing policy frameworks not automatically aligned with climate goals  The APT report: a first diagnosis on ‘misalignments’ across: TAX POLICIES INNOVATION AND SKILLS TRADE AND COMPETITION ADAPTATION FINANCE AND INVESTMENT I. CROSS CUTTING POLICY DOMAINS II. SPECIFIC ACTIVITIES ELECTRICITY REGULATIONS MOBILITY & URBAN PLANNING LAND-USE & AGRICULTU RE Solving alignment issues will facilitate the transition to low-carbon Alignment issues exist at all levels of government – cities included. Overarching question: how (central, local) governments organise to work across silos? e.g. Cities: public procurement
  5. 5. 1. Regressive effects of climate policies – Impacts of carbon taxes, where they exist (can be progressive, with fiscal neutrality) – Higher electricity prices (surcharges to support clean electricity) – Affordability of: housing in ‘green’ buildings; high-efficiency and alternative fuel vehicles; RE programmes (rooftop solar). – Impacts of climate policy on work force (including access to education and training to ‘manage’ the low-carbon transition) – Some restrictive land-use policies can lead to rising housing costs How climate policies intersect with the inclusion agenda at the city level (1)?
  6. 6. Restrictive land use policies can lead to rising housing costs Annualchangehouseprices (2000-2012) Annual change in developed land per capita (2000-2012) • Land use regulations should aim to prevent sprawl… • …but have to provide sufficient space to construct housing for growing populations • Otherwise, housing costs rise -4% -3% -2% -1% 0% 1% 2% 3% 4% 5% 6% -1.0% -0.5% 0.0% 0.5% 1.0% Source: Oliveira-Martins, 9/11/16, OECD GGSD presentation
  7. 7. 2.Carbon-inducing effects of social policies – Preferential tax treatment of commuting expenses – Fiscal support to home ownership (impacts on mobility) – Subsidies to energy use 3. Progressive effects of climate policies – Energy efficiency and energy poverty – Mass rapid transit system to integrate the periphery with the core How climate policies intersect with the inclusion agenda at the city level (2)? How to manage the synergies and trade-offs through local policy action?
  8. 8. 1. Local and multi level governance: Integrate land-use planning and transport policies – Adopt a co-benefits approach to transport planning – Integrate national and sub-national actions to improve coherence – Overcome government fragmentation at the local level Aligning policies through three pillars
  9. 9. MOBILITY Mismatch between administrative and functional boundaries OECD 2012, Redefining urban: a New Way to measure Metropolitan Areas
  10. 10. 1. Local and multi level governance: Integrate land-use planning and transport policies – Adopt a co-benefits approach to transport planning – Integrate national and sub-national actions to improve coherence – Overcome government fragmentation at the local level 2. Finance and investment: – Empower local governments by removing fiscal and regulatory impediments (e.g. access to international financial markets) – Align taxes and financial incentives with land-use objective for all stakeholders – Develop specific tools and instruments 3. Build capacity: – Monitoring systems, data gathering – Manage multi-stakeholder projects and processes Aligning policies through three pillars Need for “whole-of-government approaches”
  11. 11. Thank you For full report, synthesis and video: http://oe.cd/lowcarbon richard.baron@oecd.org virginie.marchal@oecd.org andrew.prag@oecd.org

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