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This report presents the objectives, methodology, procedures and main findings of the OECD project 'Strengthening public finance capacity for green investments in the EECCA countries'. Between 2016-19, the project aimed to help set the partner countries (Kazakhstan, Kyrgyzstan and Moldova) on a sustainable path of development by reducing the energy and carbon intensity of their economies. Working with the relevant ministry in each country, the project designed public investment programmes in line with good international practices. These programmes sought to address key objectives of the countries' environmental and climate-related policies. The Clean Public Transport Programmes focus specifically on reducing air pollution and greenhouse gas emissions from the target sector, primarily in large urban areas. They aim to demonstrate how to use scarce public funds to encourage private sector investment in projects that generate significant environmental and socio-economic benefits alike.

This report discusses the main results of a project on how an influx of funds could spur development of cleaner public transport, and reduce air pollution and greenhouse gas (GHG) emissions in large urban centres in Kyrgyzstan, by providing an analysis for designing a green public investment programme in this sector. This sector represents an opportunity for Kyrgyzstan to address key objectives in its environmental and climate-related policies as part of the country’s ambitions to transition to a green economic path of development. The investment programme is also designed to support the modernisation of the urban transport fleet in the country and stimulate the domestic market to shift to modern buses powered by cleaner fuels. The programme is foreseen to be implemented in two phases: the first covers the cities of Bishkek and Osh and the second extends to areas outside of the initial pilot city centres (pilot city suburbs as well as inter-city transport). These investments are expected to result in significant environmental, public service and socio-economic benefits.

This report discusses the main results of a project on how an influx of funds could spur development of cleaner public transport, and reduce air pollution and greenhouse gas (GHG) emissions in large urban centres in Moldova, by providing an analysis for designing a green public investment programme in this sector. This sector represents an opportunity for Moldova to address key objectives in its environmental and climate-related policies as part of the country’s ambitions to transition to a green economic path of development. The investment programme is also designed to support the modernisation of the urban transport fleet in the country and stimulate the domestic market to shift to modern buses powered by clean fuels. The programme is foreseen to be implemented in two phases: the first covers the cities of Chisinau and Balti and the second extends to areas outside of the initial pilot city centres (pilot city suburbs as well as inter-city transport). These investments are expected to result in significant environmental, public service and socio-economic benefits.

This report aims to support the development of a sound economic regulatory system for the water supply and sanitation (WSS) sector in the Republic of Moldova (hereafter 'Moldova'). The prevailing policy framework calls for drastic developments in WSS to modernise and optimise WSS systems and improve operational efficiency (non-revenue water, staff-output ratios etc.) – in line with domestic and international commitments (including the Association Agreement with the European Union, the Sustainable Development Goals, the Paris Agreement and the national WSS strategy). This report outlines ways and means for strengthening the capacity of the Moldovan government to provide sound regulation and that of WSS operators to deliver higher standards of service while ensuring the affordability of WSS services. Such a transition cannot happen overnight. It requires a sound economic regulatory system conducive to affordability, cost recovery and debt servicing, and a realistic performance improvement path for water utilities.

Kazakhstan has recorded impressive economic growth rates since its independence, driven mainly by export of commodities and high rate of energy use. These rates are not sustainable and are generating significant air pollution, in particular from industrial stationary sources. This is putting at risk the country’s development ambitions to become one of the top global economies by 2050 and converge towards OECD living standards. Building on OECD previous analysis, this publication shows that Kazakhstan’s environmental payments (environmentally related taxes, non-compliance penalties and compensation for damage regulation) for industrial air pollutants, as currently applied, impede energy efficiency and pollution abatement with heavy-handed non-compliance responses and focus on rising revenues. They also add to the cost of doing businesses in the country with limited environmental benefit. In the spirit of the Polluter-Pays Principle, much more reforms of regulation of environmental payments are needed. This report provides guidelines for reform drawing from air pollution regulations in OECD member countries and the results of the analysis of the system in Kazakhstan carried out by the OECD in close co-operation with the Government of Kazakhstan.

SDG target 17.14 calls on all countries to 'enhance policy coherence for sustainable development' as a key means of implementation. According to countries’ Voluntary National Reviews, this presents a major challenge. It requires meaningful collaboration and co-ordinated action across both policy sectors and different levels of government. It also requires balancing short-term priorities with long-term sustainability objectives and taking into account the impact of domestic policies on global well-being outcomes. The 2019 edition of Policy Coherence for Sustainable Development looks at countries’ efforts to meet this challenge and identifies opportunities for accelerating progress. The third in a series, it shows how integrated and coherent policies, supported by strong institutional and governance mechanisms, can contribute to empowering people and ensuring inclusiveness and equality.

Indonesia is the world’s fourth most populated country, and the largest archipelagic one. Vibrant economic growth has lifted millions of people out of poverty. Economic success, however, has come at a high environmental cost. Rapid land-use change and reliance on fossil energy make Indonesia one of the world’s largest greenhouse gas emitters. Deforestation and pollution are putting pressure on its megadiverse ecosystems. Environmental services such as water supply, sanitation and waste management need to be further expanded and improved. Advancing to a greener economy will require continued efforts to develop policies, strengthen institutions and secure sufficient resources. This is the first Green Growth Policy Review of Indonesia. It examines progress towards sustainable development and green growth, with a special emphasis on the nexus of land use, ecosystems and climate change.

As behavioural insights (BI) become more widely used, countries are looking to expand the application of the methodology to new frontiers of policy making. This report tests behaviourally informed solutions to complex policy problems in the fields of competition, consumer protection, energy consumption and safety through a variety of theoretical and experimental approaches. The results give policy makers new ideas for tackling policy problems related to individual behaviour, as well as for changing the behaviour of organisations.

Natural resources, and the materials derived from them, represent the physical basis for the economic system. Recent decades have witnessed an unprecedented growth in demand for these resources, which has triggered interest from policy makers in transitioning to a more resource efficient and circular economy. This report presents a typology of five circular business models that could support the transition to a more resource efficient and circular economy: circular supply, resource recovery, product life extension, sharing, and product service system models. It reviews the current market penetration and assesses the potential scalability of each business model. Environmental potential is also discussed, as well as risks and unintended consequences that could result from a more widespread adoption of these business models. The report provides a broad set of policy approaches that could help alleviate some of the barriers that currently hinder the widespread adoption of circular business models.

There is an urgent need to ensure that coastal areas are adapting to the impacts of climate change. Risks in these areas are projected to increase because of rising sea levels and development pressures. This report reviews how OECD countries can use their national adaptation planning processes to respond to this challenge. Specifically, the report examines how countries approach shared costs and responsibilities for coastal risk management and how this encourages or hinders risk-reduction behaviour by households, businesses and different levels of government. The report outlines policy tools that national governments can use to encourage an efficient, effective and equitable response to ongoing coastal change. It is informed by new analysis on the future costs of sea-level rise, and the main findings from four case studies (Canada, Germany, New Zealand and the United Kingdom).