We now have a Paris Agreement rulebook, where do we go from here? Insights on environmental policies from randomised impact evaluations

By Iqbal Dhaliwal, Executive Director, and Rebecca Toole, Senior Policy Associate, Abdul Latif Jameel Poverty Action Lab (J-PAL)

 

gas-pollutionAt the United Nations Climate Change Conference in December 2018 (COP24), parties agreed to a rulebook that lays out how governments will measure, report and verify emissions under the Paris Agreement. Now countries need to act — and know whether policies and programmes are meeting their climate goals.

Thanks to innovations in research design, improvements in measurement technology and an increasing political will to know what works, more opportunities to rigorously evaluate and learn from real-world environment and energy policies exist than many might think.

Take, for example, our work at the Abdul Latif Jameel Poverty Action Lab (J-PAL) to ensure that policy is informed by scientific evidence. J-PAL is anchored by a network of 171 affiliated professors at more than 50 universities who conduct randomised impact evaluations to answer critical questions in social policy. Our Environment & Energy sector measures the real-world impacts of environmental and energy policies on everything from pollution reduction to climate change mitigation and resilience.

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The institutional key to step-up disaster risk management in Thailand

By Andrea Colombo, Jr. Policy Analyst, and Chloé Stutzmann, Consultant, OECD Development Centre

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Thailand, Nonthaburi flood, 2011.
Photo: Suwan Wanawattanawong / Shutterstock.com

The increasing exposure of people to disaster worldwide was a key issue during last week’s World Water Forum in Brasilia. By 2050, almost 2 billion people in the world will be at risk of floods. At the same time, between 5 and 6 billion people might live in areas that will be water-scarce.

Thailand is no exception to this global trend. The 2011 floods affected 16 million people and claimed over 1 000 lives. The economic damage accounted for over USD 9 billion in the city of Bangkok alone (OECD, 2015). In 2016, drought was declared in 14 provinces, and water rationing was imposed as major dams dropped to their lowest levels since 1994. Such flooding and drought moreover negatively affect agricultural production, especially in Thailand’s rural provinces in the North, the Northeast and the South regions, where agriculture’s share in GDP exceeded 20% in 2015, compared to the 9% national average.
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Maximising the public-private investment multiplier

By Alain de Janvry and Elisabeth Sadoulet, Professors at the University of California at Berkeley and Senior Fellows at the FERDI
 

Development-finance

At the FERDI-IDDRI conference on “Development, Climate and Security” held in Paris on January 15, 2018, Barbara Buchner from the Climate Policy Initiative reported on the state of global climate finance flows for mitigation and adaptation. She made two points. First, finance is under-invested to combat climate change if the COP21 target in temperature increase is to be met. Second, private investment’s role in complementing public investment in climate finance is large, with an estimated 2/3 private for 1/3 public in current total contributions. This stresses the fundamental part private investment can play in meeting the COP21 objectives, particularly at a time when governments face multiple demands on public expenditures.

With public investment targeted to induce private investment, this raises the issue of public investment’s effect as a private investment multiplier. A useful way of thinking about the under-investment issue is consequently how to target public investment to maximise the public-private investment multiplier.

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Bridging the green investment gap in Latin America: what role for national development finance institutions?

By Maria Netto, Lead Capital Markets and Financial Institutions Specialist, Inter-American Development Bank, and Naeeda Crishna Morgado, Policy Analyst – Green Growth and Investment, OECD              

Green-investmentThe developing world urgently needs more and better infrastructure. Affordable and accessible water supply systems, electricity grids, power plants and transport networks are critical to reducing poverty and ensuring economic growth. The way new infrastructure is built over the next 10 years will determine if we meet the Sustainable Development Goal (SDGs) and the Paris Agreement objectives. Considering the long lifespan of most infrastructure projects, the decisions developing countries make about how they build infrastructure are critical: we can either lock-in carbon intensive and polluting forms of infrastructure, or ‘leap frog’ towards more sustainable pathways.

Many countries in Latin America are making this shift: thirty-two of them have committed to cut their emissions and improve the climate resilience of their economies, in infrastructure and other sectors, through Nationally Determined Contributions (NDCs). The cost is estimated at a staggering USD 80 billion per year over the next decade, roughly three times what these countries currently spend on climate-related activities. What is more, this is in addition to a wide investment gap for delivering development projects and infrastructure overall – the World Bank estimates that  countries in Latin America spend the least on infrastructure among developing regions in the world.
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Climate Action and Trade Governance: Prospects for Tourism and Travel in Small Island Developing States

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By Keith Nurse, Senior Fellow, Sir Arthur Lewis Institute of Social and Economic Studies; World Trade Organization Chair, University of the West Indies.

To learn more about countries’ strategies for economic transformation, learn about the 9th Plenary Meeting of the OECD Initiative for Global Value Chains, Production Transformation and Development hosted by the Economic and Social Commission for Asia and the Pacific (ESCAP) in Bangkok, Thailand on November 2017.

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Damage caused to the island of St. Maarten following hurricane Irma. Photo: Shutterstock

2017 will go down as a landmark year given the huge impact of hurricanes on the economic, social and ecological environments in the wider Caribbean. The decimation of several island territories, such as Dominica, Anguilla, Barbuda, St. Maarten, Turks and Caicos, US and British Virgin Islands, and Puerto Rico have taken hundreds of lives and destroyed livelihoods in key sectors like tourism. Take the case of Dominica that had a direct hit from category 5 hurricane Maria on September 18, 2017.1 It is estimated that 35% of the reefs at dive sites in Dominica were damaged, and a month later only 43% of accommodation properties are operational. Hurricane Maria went on to hit Puerto Rico that is now facing a humanitarian crisis.2

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We must co-create the future we want to see

By Emmanuel Faber, CEO of Danone 


Emmanuel Faber participated in the
2017 International Economic Forum on Latin America and the Caribbean


Danone
Photo credit: Lionel Charrier/Livelihoods Funds

In 1972, Danone founder Antoine Riboud made a speech to French industry leaders in which he declared that “corporate responsibility doesn’t end at the factory gate or the company door” and called on them to place “industry at the service of people.” Today his words seem self-evident; at the time they were revolutionary.

Now more than ever, we know that we can only thrive as a business when people and planet thrive. It’s simple: If we don’t protect the environment, we won’t be able to secure resources to make our products. If we don’t empower people and support decent living conditions, our supplier and consumer bases will shrink. We cannot escape this interdependence. So, at Danone, we embrace it. This means that, wherever we operate, we work to foster inclusive and sustainable development through co-creation — that is, working with coalitions of actors on the ground to develop hybrid solutions to concrete problems.

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Green Industrialisation and Entrepreneurship in Africa

By Milan Brahmbhatt, Senior Fellow, New Climate Economy (NCE) and World Resources Institute1


Explore this topic further with the upcoming launch of the
2017 African Economic Outlook: Entrepreneurship and Industrialisation in Africa.
Stay tuned for details


Solar salesman in Gulu Uganda Photo credit James Anderson
Solar salesman in Gulu, Uganda. Photo credit: James Anderson

Policy makers across Africa have embraced industrialisation and economic transformation as keys to accelerate inclusive growth. They also increasingly see the need for economic transformation to deliver green growth – growth that does not endanger Africa’s natural environment in ways that reduce the welfare of present and future generations. Economic transformation and green growth depend on doing new things: making risky investments in new, unfamiliar sectors or products or adopting new, unfamiliar methods, processes, technologies, inputs or business models. All this depends crucially on the activity of entrepreneurs, who drive change through their innovation and risk-taking. Fostering entrepreneurship, including green entrepreneurship, is thus a key policy aim for African countries.

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