Collateral damage? The Russia-Ukraine conflict and energy transitions in Least Developed Countries


By Dr. Harry Verhoeven, Senior Research Scholar at the Centre on Global Energy Policy, Columbia University


Discussions about climate are, always, discussions about distribution- of costs, benefits and sacrifices. For years now, the grand bargain required to ward off the existential threat of human-induced global warming has been clear. Rich, developed economies need to swiftly and comprehensively decarbonise their energy and industrial systems in ways that both mitigate the intensity of climatic changes and that enable the planet’s poorest societies to follow a cleaner, more equitable growth trajectory. Doing so would generate time, resources and appropriate technologies for those currently marginalised in the global economy to respond more effectively to climatic upheaval. Understood as such, combating climatic changes should also help address those other mega-problems challenging 21st century civilisation: multidimensional poverty; yawning inequalities between and within countries; and the structural exclusion of hundreds of millions of people from access to public goods to which they are ethically and legally entitled.

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How much is an elephant worth? Valuing natural capital to protect nature and improve wellbeing


By Ekkehard Ernst, ILO Research Department and Geneva Macro Labs


Countries in the Global South dispose of a wealth of natural resources. Yet, many of them are also among the least developed. In the following I will argue that we have the tools to ensure that restoring and maintaining this astonishing biodiversity will enable these countries to reach middle-income status over the next decade, at the same time safeguarding our survival.

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Without help for oil-producing countries, net zero by 2050 is a distant dream


By Ali Allawi, Deputy Prime Minister and Finance Minister of Iraq and Fatih Birol, Executive Director of the International Energy Agency (IEA)


In the Middle East and north Africa, global warming is not a distant threat, but an already painful reality. Rising temperatures are exacerbating water shortages. In Iraq, temperatures are estimated to be rising as much as seven times faster than the global average. Countries in this region are not only uniquely affected by global temperature rises: their centrality to global oil and gas markets makes their economies particularly vulnerable to the transition away from fossil fuels and towards cleaner energy sources. It’s essential the voices of Iraq and similar countries are heard.

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Do resource rich economies have better or worse human development outcomes?

By Antonio Savoia, Senior Lecturer (Associate Professor) at the University of Manchester and a Non-Resident Senior Research Fellow at UNU-WIDER and Kunal Sen, Director of UNU-WIDER

Although increasingly challenged, we often hear that being resource rich can adversely affect growth prospects. Here we concentrate instead on a lesser-known aspect: how resource rich economies fare in terms of education, health, income inequality and poverty. The IMF classifies over 50 developing and emerging economies as resource rich. Many are in Africa, where a significant share of the world’s poor lives. With the increasing prices of many internationally traded commodities in the post-COVID recovery, resource revenues could provide a welcome boost to development spending for such governments.

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Une taxe climat européenne pourrait bénéficier aux pays exportateurs de pétrole

Par Håvard Halland, Economiste au Centre de développement de l’OCDE


Ce blog fait partie d’une série sur la lutte contre le COVID-19 dans les pays en voie de développement. Visitez la page dédiée de l’OCDE pour accéder aux données, analyses et recommandations de l’OCDE sur les impacts sanitaires, économiques, financiers et sociétaux de COVID-19 dans le monde.


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Pour relancer nos économies d’une manière durable dans le sillage de la crise due au Covid-19, l’instauration d’une tarification effective du carbone à l’échelle mondiale reste plus importante que jamais. Cependant, tant que les Etats ne parviendront pas à s’entendre sur la gravité des risques induits par le changement climatique, la mise en place d’un système mondial de taxation des gaz à effet de serre restera une perspective lointaine.

Le mécanisme d’« ajustement carbone aux frontières » envisagé par l’Union européenne (UE) pourrait toutefois être un premier pas vers une réallocation des investissements internationaux dans le sens souhaité. Ambitieux, les nouveaux objectifs climatiques de l’UE exigeront des réductions des émissions non seulement dans le secteur de l’énergie, mais aussi dans les secteurs à forte intensité énergétique comme les industries lourdes, la métallurgie, la pétrochimie, le ciment, les engrais.

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EU climate tax could benefit oil exporters

By Håvard Halland, Senior Economist at the OECD Development Centre


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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In energy-intensive sectors, a carbon border tax could shift the geography of investment.

For a green coronavirus recovery, an effective global price on carbon remains as important as ever before. However, until governments can agree on the severity of the risk posed by climate change, a global tax on greenhouse gas emissions seems a remote prospect. Nonetheless, the “carbon border adjustment mechanism” that the EU is considering could have similar effects on capital allocation – albeit on a smaller scale.

The EU’s ambitious new climate goals will require emissions reductions not only in the energy sector, but also in energy-intensive sectors such as heavy industries, metals, petrochemicals, cement, and fertilizer. To ensure a level playing field between EU companies and foreign firms not subject to EU emissions targets, the EU may implement a border tax on carbon-intensive imports. The combination of high carbon taxes within the EU and a carbon border tax would present energy-intensive industries with a new set of locational choices.

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How COVID-19 is changing the opportunities for oil and gas-led growth

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By Glada Lahn and Siân Bradley, Senior Research Fellows, Energy, Environment and Resources Programme


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


shutterstock_680622253For oil and gas exporters, COVID-19 has caused a downturn like no other. From early 2020, lockdowns sent global energy demand plummeting by over a quarter. Combined with the Saudi-Russia price war, oil prices hit their lowest levels in over two decades, down to less than $20 a barrel in April. Without strategic reserve filling, the collapse would have been even steeper. As lockdowns eased and June’s OPEC-plus agreement to cut production boosted oil prices (around $40/b in June), producer countries could be forgiven for hoping that the worst is over. However, as the pandemic hit, the fossil fuel market was already facing a grim prognosis.

From boom and bust to… bust

Five years ago, Chatham House began exploring what decarbonisation might mean for extractives-led development. To achieve the Paris Agreement’s commitment to limiting global warming to well below 2°C and as close as possible to 1.5°C, all credible pathways will require a radical reduction in fossil fuel use. With 76 per cent of all greenhouse gas emissions (GHGs) and close to 90% of CO2 emissions coming from the burning of coal, oil and gas, the implications for these markets are profound. We are no longer talking about a cycle of boom and bust, but about structural decline. Continue reading “How COVID-19 is changing the opportunities for oil and gas-led growth”

Negotiating a royalty pricing agreement: lessons from Liberia

By Stephen E. Shay, Lecturer at Harvard Law School; Iain Steel, independent economics consultant; Gabrielle Beran, Governance and Program Manager, International Senior Lawyers Project-UK (ISLP-UK); Olumide Abimbola, Business Development Lead, CONNEX Support Unit.

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Mount Nimba, Liberia: an abandoned mining site and the highest point in West Africa

Countries often collect royalties on the sale of their natural resources, but how can they be sure that the price is right when a mining company sells iron ore to its own steel mills? This was the problem faced by Liberia with its largest iron ore mine – and a common problem around the world in mining and many other sectors.

Sales between “related parties”, where the companies share a common owner and are therefore not independent of each other, use a “transfer price[i]” that is supposed to reflect fair market value – the price two independent firms would have agreed transacting at arm’s length. In this article, we describe how governments can make use of pricing agreements with companies to determine transfer prices by reference to international benchmarks, and the importance of reviewing these agreements to ensure they remain fit for purpose over time. We also draw lessons for revenue authorities, host governments and donor partners from the recent renegotiation of a pricing agreement in Liberia. Continue reading “Negotiating a royalty pricing agreement: lessons from Liberia”

Face au COVID-19, les leçons d’Ebola et du secteur minier en Guinée

Par Nava Touré, Conseiller principal auprès du Ministre des Mines et de la Géologie, République de Guinée, et Ruya Perincek, Analyste des politiques, Ressources naturelles pour le développement, Centre de développement de l’OCDE


Ce blog fait partie d’une série sur la lutte contre le COVID-19 dans les pays en voie de développement. Visitez la page dédiée de l’OCDE pour accéder aux données, analyses et recommandations de l’OCDE sur les impacts sanitaires, économiques, financiers et sociétaux de COVID-19 dans le monde.


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Photo : Shutterstock

Alors que les pays à travers le monde, connaissent des réponses diversifiées à la pandémie de COVID-19 et anticipent des conséquences économiques sévères, la Guinée s’appuie essentiellement sur l’organisation qui a fait ses preuves pendant l’épidémie d’Ébola de 2014-2015 : des structures institutionnelles pour répondre aux crises sanitaires, en collaboration avec les partenaires internationaux et le secteur minier qui joue un rôle important dans l’économie nationale.  Cette expérience dans la réponse aux crises sanitaires et les mécanismes établis dans les contrats et conventions minières pour le contrôle des revenus tirés par l’État pourraient mettre le pays dans une meilleure position par rapport à d’autres pays en développement pour la riposte au COVID-19 et à la crise économique.

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Investing in Resource Efficiency – The Economics and Politics of Financing the Resource Transition

By Florian Flachenecker, Junior Economist, OECD, and Jun Rentschler, Economist, The World Bank1

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Various factors are putting increasing pressure on policy makers, researchers, firms and investors to explore pathways towards sustainable and efficient resource management. These factors include: high and volatile resource prices, uncertain supply prospects, rising demand, and environmental pressures. Moreover, rapid technological transitions that are changing lives for the better are also adding to the challenge. The significant increase in renewable energy technologies, such as solar power, electric vehicles and smart-phone use, are improving people’s lives. While these developments are in line with the Sustainable Development Goals (SDGs), they are also driving up demand for critical natural resources.

Resource efficiency investments could help solve these challenges, yielding substantial benefits both economically and environmentally. And yet, global resource efficiency has increased by a mere 1% per year over the past three decades. This is insufficient to counterbalance ever-increasing resource demand. Continue reading “Investing in Resource Efficiency – The Economics and Politics of Financing the Resource Transition”