The uptake of renewable energy (RE) has been identified by a number of governments as a primary means for mitigating CO2 emissions from the electricity sector, and for making the transition to a low-carbon economy. The electric power output of some RE technologies, however, including those based on intermittent wind and solar energy, can vary considerably over short periods of time and thereby introduce instability into the electricity system. The risk of instability increases with higher shares of intermittent power sources connected to the electrical grid. Different means have been used to deal with this intermittency problem. Cross-border trade in electricity appears to be one of them since it enables countries to gain access to a more diversified portfolio of plants, producing over a wider geographic area. Preliminary results from an examination of the European electricity market confirm the importance of cross-border electricity trade in increasing the effective capacity factor of intermittent plants in the context of a growing share of intermittent renewables in the power sector.
This paper was developed at the request of the OECD Working Party of the Investment Committee to document efforts to date to define and measure green FDI and to investigate the practicability of various possible definitions, as well as to identify investment policy restrictions to green FDI. It does so by reviewing the literature and existing work on the contributions of FDI to the environment; by providing a two-part definition of green FDI; and by discussing various assumptions necessary to estimate the magnitude of 'green' FDI.
The deployment of eco-innovations in developing countries is a key driver of their contribution to efficiently addressing global environmental challenges. It is also a key driver of markets for eco-innovation and sustainable economic development. This report explores the barriers developing countries face in accessing markets for eco-innovation. It outlines the key considerations policy needs to address to overcome these barriers and discusses the extent to which selected existing policy mechanisms and organisation have achieved this. The key finding of the report is that the majority of existing policy mechanisms fails to recognise the critical importance of developing indigenous eco-innovation capabilities amongst developing country firms. Indigenous eco-innovation capabilities are essential to facilitating both the diffusion of existing ecoinnovations within developing countries and sustainable economic development based on the adoption, adaption and development of environmentally sound technologies that fit with the bespoke conditions faced by developing countries.
This DAC Reference Paper outlines key issues faced when designing Environmental Fiscal Reform (EFR). EFR refers to a range of taxation and pricing measures which can raise fiscal revenues while furthering environmental goals. The objective is to provide insights and “good practice” on how development co-operation agencies can help developing countries take advantage of EFR approaches in both their development and poverty reduction strategies.
Following a review of the instruments of EFR and related technical issues, this report focuses on the political economy and governance aspects of EFR. This includes an examination of the precondition for successful design and implementation, the various steps involved through the EFR Policy Cycle, the challenges faced at each stage, and the main stakeholders involved. The role of donors in supporting EFR processes is also outlined.
Subsequently, these issues are reviewed in relation to sectors of particular relevance for developing countries: forestry, fisheries, fossil fuel, electricity, drinking water and industrial pollution control.
Technological innovation can help realise environmental objectives in a less costly manner than would otherwise be the case. Thus, understanding the role that technological innovation can play in achieving environmental objectives is important for policy debates.
However, the relationship between environmental policy and technological innovation remains an area in which empirical evidence is scant. In an attempt to bridge this gap, the OECD has examined the relevant issues, using patent activity as a measure of technological innovation.
Three case studies have been undertaken: abatement technologies for wastewater effluent from pulp production, abatement of motor vehicle emissions, and development of renewable energy technologies. On the basis of patent data, the nature, extent, and causes of innovation in each of these areas have been explored. While a particular focus has been placed on the role of environmental policy in bringing about the innovation documented, it is recognised that other factors play a key role in inducing innovation that has positive environmental implications.
Within the context of sustainable development, natural resources and ecosystem services provided by the environment are essential to support economic growth social wellbeing, and human health. Inaction on key environmental challenges, such as climate change, could lead to severe economic consequences in the future. It is important that the measures governments are taking now to address the economic crisis are designed so that they support – and at least do not compromise – sustainable long-term, environmentally friendly growth in the future. This discussion paper highlights some of the measures governments are already taking to 'green' their approches to economic recovery, and some of the key issues they may wish to further consider going forward regarding the impact of these approaches on the environment.
As an intellectual contribution to the Rio+20 preparatory process, the Boston University Frederick S. Pardee Center for the Study of the Longer‐Range Future convened a small task force of experts to discuss the role of institutions in the actualization of a green economy in the context of sustainable development. The report includes papers by experts from academia, government, and civil society on what the world has learned about institutions for sustainable development from the past, and what can be proposed about the governance challenges and opportunities for the continuous development of a green economy in the future. Based on these papers, the report synthesizes six recommendations for the Rio+20 process: think boldly and move incrementally; take economic policy seriously; recognize what is working and what is not working; make implementation the focus; the state remains central but non‐state actors have to be better accommodated; and put equity at the center.
This summary was prepared by the Division for Sustainable Development, UNDESA.
The outcome document for the United Nations Conference on Sustainable Development 2012 includes a chapter on green economy in the context of sustainable development and poverty eradication. Whilst not a strong chapter, it is significant as it is the first reference to green economy in the outcome document of a major UN summit. The chapter helps to frame the green economy concepts, identifying a range of principles for applying the concept in a way that achieves sustainable development and contributes to poverty eradication. Importantly, the document invites the UN system, in cooperation with relevant donors and international organisations, to coordinate a number of green economy deliverables relating to tools, best practices, methodologies and platforms that can assist with green economy capacity building.
This summary was prepared by the Division for Sustainable Development, UNDESA.
The Netherlands National Committee IHP-HWRP, together with the Netherlands National Commission for UNESCO, has published a new (fourth) publication in their series of water-related UNESCO publications: «Green growth and water allocation». Edited by Sophie Primot, Michael van der Valk and Penelope Keenan, the publication contains contributions from many of the speakers of a 2-day workshop held in November 2012 in Wageningen, the Netherlands.