Reports

Greenhouse gas (GHG) emissions data is essential for tracking progress towards the Paris Agreement’s global temperature goals. In addition to the emissions inventories based on the Intergovernmental Panel on Climate Change guidelines, which are used for tracking progress under the framework of the Paris Agreement, there are other GHG emissions datasets that cater to different users and policy objectives. This paper evaluates three OECD datasets on GHG emissions: Air emissions – Greenhouse gas emissions inventories, Agricultural greenhouse gases emissions, and the Air Emissions Accounts (AEAs) based on the System of Environmental-Economic Accounting. It also looks at one dataset from the International Energy Agency: CO2 emissions from fuel combustion. It discusses the inventory and AEA approaches in terms of accounting principles (production- versus demand-based, territory versus residence), as well as classifications and scope of emissions. It looks at the coverage of the GHG emissions datasets and identifies the data gaps. Finally, the paper outlines several steps to enhance data coverage and quality of the datasets.

Thailand has adopted ambitious clean energy targets to meet its long-term climate goals, committing to reach carbon neutrality by 2050 and net zero greenhouse gas (GHG) emissions by 2065. Transforming Thailand’s energy system, alongside broader development objectives, is critical to meeting these goals as the energy sector accounts for 69% of Thailand’s total GHG emissions. The Clean Energy Finance and Investment Roadmap of Thailand ('the Roadmap') outlines key actions to unlock finance and investment in two clean energy sectors: (i) renewable power, with special attention to small-scale renewable power systems; and (ii) energy efficiency in buildings, with a focus on cooling applications. The two sectors were selected in close consultation with the Department of Alternative Energy Development and Efficiency (DEDE) of the Ministry of Energy of Thailand. The Roadmap provides a comprehensive overview of the progress to date, policy context and challenges to mobilise near-term finance in those sectors, as well as estimates of the finance needs to reach Thailand’s clean energy plans. The report also includes a roadmap action plan, suggesting non-prescriptive recommendations and actions that the Government of Thailand, financial institutions, energy service companies, academia and the international development community active in the country could undertake to foster clean energy investments in Thailand.

The report outlines the aggregate trends in annual climate finance provided and mobilised by developed countries for climate action in developing countries over the period 2013-2022. It presents these trends by source of finance, climate theme, sector, income group and type of financial instrument. Additionally, the report explores adaptation finance trends in relation to the Glasgow Pact's call for developed countries to double adaptation finance by 2025 and offers insights into the growing significance of multilateral providers in the climate finance landscape.

This paper is part of a subset of working papers within the Environment Working Paper series, presenting research on the enabling environment for investment in water security. The subset includes country and regional projects aimed at pilot testing the Scorecard, designed to assess the enabling environment for investment in water security. The paper 'Assessing the Enabling Conditions for Investment in Water Security: Scorecard Pilot Test in Asian Countries' delineates the findings from the initial phase. This paper marks the commencement of the second round of pilot tests in the EU’s Eastern Partnership Countries. It presents the results obtained from assessing the enabling environment for investment in water security in Armenia, using the Scorecard. It also presents policy recommendations based on the priority investment barriers identified during stakeholder consultations in the country, involving representatives from various Ministries engaged in water security and international donors. The assessment and recommendations cover the public investment framework and its impact on water-related sectors, the water investment framework, project bankability and sustainability, as well as the contribution of other economic sectors to water security.

There is mounting evidence that, depending on social and economic circumstances, some communities and groups may face disproportionate exposure to environmental hazards, bear an inequitable share of the costs associated with environmental policies or face more barriers to participating in environmental decision-making. As countries increase their efforts to tackle environmental degradation, pollution and climate change, the concept of environmental justice can shed light on how to ensure fairness in the processes and outcomes of environmental policymaking. This report examines the plurality of the concept of environmental justice, its underlying conceptual pillars and how it has emerged in different contexts around the world. The report also provides the first policy stocktake of how governments across the OECD and beyond are seeking to redress environmental justice concerns, building upon insights from 26 responses to the OECD Environmental Justice Survey as well as complementary desk analysis across a broader set of countries.

The Paris Agreement is underpinned by Nationally Determined Contributions (NDCs) in which Parties set out how they plan to support the Agreement’s long-term temperature goal. Parties are to submit their next NDCs by early 2025, informed by the first global stocktake (GST1). The GST1 sets out key signals and a series of mitigation focused calls in line with 1.5°C pathways that can guide the next generation of NDCs. This paper explores how Parties can prepare enhanced NDCs that take forward GST1 outcomes on mitigation and relevant provisions on NDCs, building on lessons learned from successive NDCs and available follow-up opportunities to support this process. Insights from experiences highlight the interlinkages between enhancing NDC ambition and implementation. Ambitious NDCs underpinned by robust implementation plans and accompanying investment plans can ensure NDCs are action oriented, implementation ready and investable. At the same time, adopting whole-of-government, whole-of-society approaches to NDCs can foster a sense of national ownership and increase social acceptance, leading to more ambitious NDCs and support subsequent implementation. The paper also explores potential guidance that could be relevant for negotiations on NDC features in 2024. While recognising the nationally determined character of NDCs, Parties could use these negotiations to provide clarity on new issues that have emerged since the Paris Agreement was adopted and on existing elements that could benefit from clarification. When addressing negotiations on NDC features, Parties may also want to consider a longer-term perspective beyond the next NDCs and links with other relevant negotiation processes on reporting and transparency.

This paper examines the current status of water availability, water demand, and influences from climate change in the European Union. It provides an overview of economic policy instruments to address water scarcity and manage water demand. Additionally, the paper explores policy options and considerations for addressing water scarcity and meeting Water Framework Directive (WFD) objectives. These considerations include balancing demand management and supply augmentation, managing water scarcity through robust allocation regimes, and increasing the use of agro-environmental measures and practices. The paper also discusses the principles and features of effective allocation regimes, drivers and incentives for allocation reforms, the hierarchy and sequencing of water use, abstraction charges, ensuring return flows and ecological flows, and improving the coherence of WFD measures and climate change policies. This is the third in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines three sets of issues related to strategic investment planning and financing for water: i) Investment planning in an uncertain context; ii) The benefits of supplementing project level planning with a consideration for pathways of investments; iii) Facilitating access to a wider range of financing sources, most importantly commercial finance. Together these issues can enhance the performance of water-related finance, making the best use of available finance and assets, in a context marked by high-level of (public and private) debt and rising cost of finance. This is the first in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines the concept of cost recovery of water services under the EU Water Framework Directive (WFD), including the different types of costs and cost-recovery mechanisms. It presents the state of play in the implementation of cost recovery in EU Member States, for financial, environmental and resource costs. It also analyses the political, societal and technical issues affecting cost recovery in EU Member States. Furthermore, it examines emerging options to recover rising costs, including ways to minimise costs and innovative arrangements to supplement existing funding streams. Finally, it questions how fit cost recovery is as a concept for emerging and future water-related challenges in the EU. This is the fourth in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines the challenges and policy imperatives involved in implementing the Polluter Pays principle (PPP) in the context of the Water Framework Directive (WFD). It presents the state of play of the Polluter Pays principle in EU Member States. It also analyses the coherence with other policies in EU Member States, such as agriculture, land planning and industry. Furthermore, it examines the practical limitations of the Polluter Pays principle in relation to diffuse and legacy pollution. Finally, it questions how the principle fits into the Green Deal and future water-related challenges in the EU. This is the second in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.