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