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CCXG Oct 2019 Secretariat Update - Dr Simon Buckle


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CCXG Oct 2019 Secretariat Update - Dr Simon Buckle

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CCXG Oct 2019 Secretariat Update - Dr Simon Buckle

  1. 1. SECRETARIAT UPDATE Dr Simon Buckle Head of Climate, Biodiversity and Water Division Environment Directorate CCXG Global Forum 2 October 2019 IEA, Paris
  2. 2. 1. Highlights from latest key OECD reports related to climate: – Climate Finance Provided and Mobilised by Developed Countries in 2013-17 – Taxing Energy Use 2019: Using Taxes for Climate Action – Accelerating Climate Action: Refocusing Policies through a Well- being Lens 2. Overview of relevant upcoming events 2 Outline
  4. 4. • Climate finance provided and mobilised reached USD 71.2 billion in 2017, up from USD 58.6 billion in 2016 (+21%). • Public climate finance increased 44% between 2013 and 2017, from USD 37.9 to USD 54.5 billion. • Gap in time series in 2015 for mobilised private finance due to progressive implementation of enhanced reporting methodologies. 2013-17 estimates of aggregate climate finance Source: OECD (2019), Climate Finance Provided and Mobilised by Developed Countries in 2013-17, OECD Publishing, Paris,
  5. 5. • In 2017, mitigation represents close to ¾ of USD 71.2 billion total; the share of adaptation between 2013 and 2017 increased from 17% (USD 9.1 billion) to 19% (USD 13.3 billion). • Share of adaptation in public climate finance in 2016-17 significantly higher for LDCs (45%) and SIDS (43%) than for all developing countries (22%). • Over 90% of mobilised private finance and close to all export credits tracked relate to mitigation activities. Thematic split Source: OECD (2019), Climate Finance Provided and Mobilised by Developed Countries in 2013-17, OECD Publishing, Paris,
  6. 6. What does this mean for 2020? Source: OECD (2019), Climate Finance Provided and Mobilised by Developed Countries in 2013-17, OECD Publishing, Paris, • Public finance consistent with a linear pathway to 2020 projection of USD 66.8 billion. • Estimated ratios of mobilised private to public finance in 2016- 17 lower than those previously estimated for 2013-14. • Continued efforts to scale up public finance and improve its effectiveness in mobilising private finance are required. • This effectiveness depends on characteristics of public finance, e.g. destination, thematic split, sector, instruments.
  8. 8. To be released on 15 October 2019 Taxing Energy Use 2019 8 The report presents new and original data on energy taxes:  in OECD and G20 countries as well as in international aviation and maritime transport.  Tax rates and tax coverage are detailed by country, sector, energy source and tax type. Access the publication page Summary of Key Findings
  9. 9. 9 Average fuel excise and explicit carbon taxes across 44 OECD countries and Selected Partner Economies, including international aviation and maritime transport
  10. 10. 10 Taxes on polluting fuels are too low to encourage a shift to low-carbon alternatives
  12. 12. The well-being lens in context 2015 2017 2018 2019
  13. 13. 13 Well-being lens By systematically capturing multiple benefits and managing trade-offs, a well-being approach can increase the case for low- emissions solutions that align multiple goals and combine action across different sectors and scales of action
  14. 14. Change perspective Change the metrics Change the policy design
  15. 15. Without minimum space standards Without adequate infrastructure Synergies and trade offs – compact development
  16. 16. 16 Shift in measurement Employment growth rate in automotive sector by county 1998 to 2016
  18. 18. 18 Overview of relevant upcoming events 2019 29-30 Oct OECD Forum on Green Finance and Investment OECD, Paris 2-13 Dec26-27 Nov COP25 Santiago, Chile 10th High-Level Breakfast on Institutional Investors and the Low-carbon Transition Santiago, Chile, dates still tbc Joint OECD-ADB Roundtable on Accelerating low-carbon investment in Asia OECD, Paris 31 Oct Pre-COP, Costa Rica 8-10 Oct Roundtable on Financing Water – Regional meeting on Asia, Manila 25-27 Nov GGSD Forum Greening heavy and extractive industries: innovation and fiscal sustainability OECD, Paris
  19. 19. Creation of an OECD Adaptation Task Force A dedicated forum for national adaption experts to: - Provide a forum of exchange on policies and practices in support of the implementation process of adaptation agendas - Identify key issues for countries to consider in moving the adaptation agenda forward - Identify and review good practices that can inspire others - Inform the program of work of the OECD Secretariat, in line with the OECD Environment Programme, to effectively support countries’ adaptation priorities. • A joint DCD and ENV project “Strengthen Climate Resilience: Guidance for Governments and Development Co-operation“ • Aiming to launch the Guidance at the Adaptation Summit organised by the Netherlands in October 2020 • A joint Adaptation Workshop to be held in Paris on 25 October 2019 by OECD and the Global Centre on Adaptation Strengthen Climate Resilience: Guidance for Governments and Development Co-operation Adaptation Forum planned for 12-13 February 2020 in Paris Contact: Joint Adaptation Workshop on 25 October 2019 in Paris Contact:
  21. 21. ….using the tools and processes of budgetary policy-making - by evaluating and improving the environmental impact of budgetary policies - assessing their coherence with national and international commitments - contributing to informed, evidence-based debate  help achieve environmental goals 21 “Green Budgeting” – a systematic and co-ordinated approach OECD Paris Collaborative on Green Budgeting • Launched at the One Planet Summit, Dec 2017 in Paris • A co-ordinating platform for knowledge development, peer learning, and country assistance
  22. 22. 22 Green Budgeting: A compass to achieve our environmental goals
  23. 23. Putting green budgeting into practice
  24. 24. 24 Moving ahead towards green budgeting in OECD countries Norway • Technical Committee to propose method for estimated effects:  on emissions of changes in revenues and expenditure in the budget.  mitigation effect and cost of policy instruments that are not included in the national budget. • Results expected in June 2020. France • “Jaune budgetaire” to provide an overview of relevant policies and highlights their alignment with France’s climate objectives. • Developed a methodology to classify expenditure in favourable and unfavourable across 6 environmental objectives. • A first "green budget" under the new methodology is expected for the PLF 2021. Ireland • Department of Public Expenditure and Reform has started to identify Exchequer climate-related expenditure in 2019. • Announcement ring-fence additional revenues raised from a new carbon tax to fund climate action and a just transition.
  25. 25. 25 Emerging practices in the non-OECD countries Indonesia: • The Indonesian 2014 Green Planning and Budgeting Strategy (GPBS) • implemented in line with the Medium Term Expenditure Framework and performance-based budget system. • Low Emission Budget Tagging and Scoring System (LESS) in key ministries to track resources spent to achieve the national emission reduction target of 26% by 2020. The Philippines • Climate Change Budget Tagging in national budget submissions for all government entities in the Fiscal Year 2015. • Aligned with the National Climate Change Action Plan. • Publication of results in the People Climate Budget. Thailand • Project to integrate a “Climate Change Benefit Analysis (CCBA) into their budget proposals, and monitoring and evaluation mechanisms. • Climate Change Benefit Analysis (CCBA) guidelines. • The CCBA guidelines will provide assistance to Ministries and decision makers in the budget and planning process.
  26. 26. • Publication: Towards Green Budgeting: a stock take of core building blocks and country experiences. • Co-Leadership for Principle 4 of the WB-based Coalition of Finance Ministers for Climate Action • Next Green Budgeting Expert Group Meeting in February 2020 26 Next steps
  27. 27. 27 Ongoing work on climate change and agriculture (1/2) Recently published or declassified work: Papers: • “Evaluating the environmental impact of agricultural policies”: • “Agri-environmental Indicators: Ammonia and Greenhouse Gas Emissions”: [COM/TAD/CA/ENV/EPOC(2019)7/FINAL] Forthcoming publication (16 October 2019): “Enhancing climate change mitigation through agriculture”  Evaluates the economic consequences and trade-offs associated with key policy options to mitigate GHG emissions in the agriculture sector using economy wide, sector specific, farm level models.
  28. 28. 28 Ongoing work on climate change and agriculture (2/2) New work being developed • Scoping papers for 2019-20 climate work: • Policy strategies and challenges for climate change mitigation in agriculture [COM/TAD/CA/ENV/EPOC(2019)10] • The economic and environmental consequences of confronting climate change in the agricultural sector through trade [COM/TAD/ENV/EPOC(2019)11] • Carbon leakage implications of climate policies in the agricultural sector [COM/TAD/ENV/JWPTE(2019)2] • A draft survey of international GHG mitigation policies in the AFOLU sector will be discussed at the Joint Working Party on Agriculture and Environment, October 22-23 [COM/TAD/CA/ENV/EPOC(2019)]
  29. 29. • In November the OECD will publish a new report identifying the key challenges and priority actions for development co-operation providers and countries to align their strategies, programmes and operations. • Global leaders on climate and development discussed the key messages at a high-level roundtable last week, in the margins of the UN Climate Action Summit. Aligning development co-operation with the objectives of the Paris Agreement
  30. 30. • A joint DCD and ENV project “Strengthen Climate Resilience: Guidance for Governments and Development Co-operation“ • Aiming to launch the Guidance at the Adaptation Summit organised by the Netherlands in October 2020 • A joint Adaptation Workshop to be held in Paris on 25 October 2019 by OECD and the Global Centre on Adaptation Strengthen Climate Resilience: Guidance for Governments and Development Co-operation
  31. 31. Recent Environmental Performance Reviews 29 May 10 July Thematic review
  32. 32. Upcoming Environmental Performance Reviews November (tbc) Q2 2020 (tbc) Q2 2020 (tbc)
  33. 33. Selected updated datasets Protected areas Land cover
  35. 35. Climate Emergency, Urban Opportunity: How national governments can secure economic prosperity and avert climate catastrophe by transforming cities – Coalition for Urban Transition’s report (sept 19) quantifies the economic, environmental & social benefits available to national governments to empower & invest in zero-carbon cities. – Key message: National governments must be encouraged to place cities at the heart of their economic development and climate strategies, requiring strong leadership from Heads of State and Government as well as key ministries. “Climate Emergency, Urban Opportunity” OECD contributions ‒ OECD serves as a member of the Coalition’s steering group ‒ Co-author of chapter 4 “The unique and crucial roles of national government” ‒ Consultation with OECD member countries at WPURB in May 2019 ‒ SG served as a Senior Ambassador of the report & contributed to foreword
  37. 37. 37 OECD-CFE case study “Financing climate objectives in cities and regions to deliver sustainable and inclusive growth” as part of the OECD Financing Climate Futures Project Released in September 2019 as an ENV Policy Paper Cities and regions are critical actors in the global response to climate change • Subnational governments (SNGs) are major spenders and investors  SNG budgets account for an increasing share of public expenditures, carrying out 40% of total public spending in the OECD and 57% of public investment in 2016  In federal countries, the rates are higher at 50% and 62%, respectively (OECD, 2018a).  Globally, subnational governments represent 24% of public spending and 39% of public investment in 2013 (OECD/UCLG, 2016). • Relative to central governments, subnational governments are responsible for the majority of environmental and climate-related spending and investment. • Cities are part of the climate change problem. Cities concentrate people, economic activities and industries, and infrastructure, with 55% of the global population and over 80% of global GDP.
  38. 38. 38 • Data are very limited to track climate finance in general, and even more so at subnational (SNG) level. This is a big problem, as it means there are no real data to track progress towards the Paris Agreement commitments. • Data on climate-related spending are limited in terms of how they are categorised into the COFOG (classification of the Functions of Government).  Climate-relevant spending is captured piecemeal across almost all categories, as all functional areas may have a climate dimension. • In addition, even when proxies can be created from existing subcategories, data at the subcategory level may not exist. • Most countries do not comprehensively track their subnational climate-related spending and infrastructure investment. • Some countries have developed approaches to tracking climate expenditures. • Some countries’ tracking systems provide incomplete data models. • The OECD has proposed a preliminary methodology to batter measure subnational climate finance, based on Classification of Function of Government (COFOG) data from the National Accounts and focusing on sectors that have a direct implication for climate change. Key messages - case study “Financing climate objectives in cities and regions to deliver sustainable and inclusive growth”
  39. 39. 39 • The majority of environmental and climate-related spending occurs at subnational level. In the 30 countries sampled, subnational governments were responsible for 55% such spending, on average over 2000-2016. • In relation to spending, an even larger share of environmental and climate-related investment occurs at subnational government level. On average, subnational governments were responsible for 64% of such investment over 2000-2016. • However, subnational climate-related spending only represented 1.3% of GDP on average over 2000- 2016; subnational climate-related investment represented around 0.4% of GDP on average over 2000- 2016.  Subnational spending and investment mainly occur in transport, waste management and waste water management.  Between 2000 and 2016, the share of climate-related investment in transport in total investment significantly increased (from 34% to 44%), while those of waste management and wastewater management decreased. • And more worrying – overall, environmental and climate-related spending and investment saw minimal change between 2000 and 2016 on average in the 30 country sample, both in real terms and as a share of GDP. Key messages - case study “Financing climate objectives in cities and regions to deliver sustainable and inclusive growth”
  40. 40. 40 18% 29% 29% 31% 31% 34% 43% 48% 52% 60% 60% 64% 65% 66% 66% 66% 68% 70% 72% 74% 81% 82% 86% 87% 89% 90% 98% 98% 82% 71% 71% 69% 69% 66% 57% 52% 48% 40% 40% 36% 35% 34% 34% 34% 32% 30% 28% 26% 19% 18% 14% 13% 11% 10% 2% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Iceland Sweden Greece Denmark Austria United Kingdom Finland Slovak Republic Luxembourg Italy Latvia Average Hungary Portugal Norway Lithuania Germany Spain Slovenia Czech Republic Poland Netherlands Ireland Australia Switzerland France Belgium Japan Subnational government Central government Environmental and climate-related investment by level of government, 2000-2016
  42. 42. Leadership for Urban Climate Investment (LUCI) Initiative • Overarching Deliverable for the UNSG Climate Action Summit under the Cities, Infrastructure and Local Action (ICLA) Track. – Officially launched in September, 2019 – Objective: accelerate, scale-up and leverage urban climate finance and close gaps in the subnational financial architecture. – Structure: LUCI has several sub-initiatives to build a global environment, strengthen subnational capacities and develop financing options. • OECD (CFE) and Climate Policy Initiative (CPI) are in charge of the sub-initiative “Measuring and tracking subnational climate-related finance for climate action” – Objective: develop a standard methodology to measure subnational spending on climate and track urban climate finance. – Goal: better track progress towards the implementation of the Paris Agreement.
  43. 43. This year GGSD Forum will focus on greening heavy and extractive industries Contacts: & The sessions will focus on: 1. Fiscal implications of the low-carbon transition 2. Driving innovation for greening heavy industries 3. Greening extractive sectors: mission possible? 4. International trade and the circular economy 5. Regions and extractive industries 6. Special High-Level Panel Discussion: The new geopolitics of natural resources 26-27 November, 2019 OECD Headquarters, Paris
  44. 44. Thank you