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Exploring options to measure the climate consistency of real economy investments

The manufacturing industries of Norway

This paper presents results from a first pilot study to measure the consistency of real economy investments with climate change mitigation objectives. The analysis focuses on investments in infrastructure and equipment in the manufacturing industries in Norway between 2010 and 2017, estimated at USD 2.5 billion per year on average. The consistency or inconsistency of these investments is then measured at subsector level based on two readily available reference points: the European Union Taxonomy for Sustainable Activities, and a 2°C scenario for the Nordic region from the International Energy Agency. The analysis further identifies sources of financing in these subsectors and discusses future investment and financing challenges, in light of more ambitious forward-looking decarbonisation targets and needs. Finally, the study draws methodological conclusions and calls for further pilot studies in order to improve and scale up such analysis at international level, including in terms of using different or complementary reference points specifically aligned to the temperature goal of the Paris Agreement.

Published on March 17, 2020

In series:OECD Environment Working Papersview more titles