“We’re going to run out of water much much earlier than we’ll run out of oil,” warned Peter Brabeck-Letmathe, chairman of Nestlé, at the OECD Forum in May 2012.

The continuity of our societies and the sustainability of our planet will necessarily depend on how we, as a collective, can devise the solutions to the paramount and multifaceted difficulties that have arisen from the changes wrought by the Industrial Revolution. In fact, if we are to successfully transform these challenges into opportunities, what we need is nothing short of another revolution. And in today’s revolution the bayonets, unquestionably, need to be green. 

The Earth is a unique, interconnected system that mankind has always tried to understand. Although there have been great discoveries made in science, there are many aspects of our planet that are beyond our understanding or control. However, there is one fact we know: we need to live in harmony with nature.

Managing risk could absorb more policy time around the world in the 21st century. How can policymakers be prepared?

After environmental and economic turbulence, Canada’s fisheries are being reformed. The sector is now undergoing a renaissance, though challenges remain.

One area where governments have been looking to raise revenues is green taxes. And with good reason. Taxes can provide a clear incentive to reduce environmental damage. But while the number of environmentally-related taxes has actually been increasing in recent years, revenues from these taxes have been on a slight downward trend in relation to GDP. The decline in revenue partly reflects the drop in demand for fuel in response to recent high oil prices and other factors, which in turn has led to a reduction in total revenues from taxes on energy products.

Climate change is very much on the development agenda, but according to this guide, Integrating Climate Change Adaptation into Development Co-operation: Policy Guidance, while developing countries account for over half of total carbon emissions, they are also the most vulnerable to climate change. The guide, which is aimed at donors, but is also useful for aid recipients, argues that development-as-usual may be counterproductive. For example, building new, weatherproofed roads in Africa may be good for sustainable development, but what if those roads encourage settlement along flood-endangered coasts? OECD countries donated an estimated $3.8 billion in bilateral aid to developing countries’ climate change mitigation efforts in 2007. The book examines the potential impact of climate change on the Millennium Development Goals and gives examples of aid strategies that take climate change into account.

Despite the mitigated outcome of the recent Copenhagen climate change summit, efforts to develop renewable energy still make progress. Practical solutions to improve the development and implementation of renewable energies and boost their efficiency are constantly being sought. Attention is starting to focus on cities. Considering the fact that about half of the world’s population now lives in an urban environment and produces about 70% of the world’s energy-related CO2 emissions, it is only logical that the development of renewable energy should be prioritised in cities and towns. Using the immediate environment and locally available resources, such as waste or heat from buildings, ensures that the schemes being implemented do not rely on costly national or international involvement. This also allows for local governments to improve local businesses and employment.

At Copenhagen world leaders moved forward in step on climate change. More progress is needed in the year ahead.

After a year of pain and pessimism, we are starting to see signs of an economic recovery. Green shoots are sprouting. Governments' bold economic and financial actions of over the past year are beginning to take effect.

The OECD Nuclear Energy Agency (NEA) is 50 years old. It predates the actual OECD itself, having started out in 1958 as a division of the Organisation for European Economic Co-operation. It has since grown to become a global body spanning four continents. What does its future hold?

The UN Climate Change conference in Poznán, Poland in December ended with a mixed scorecard. There was agreement to move to the next level of negotiations, and some clarification on outstanding issues, but little substantial forward movement.

Financial market turbulence and climate change also featured as headline issues at this year’s OECD Forum (www.oecd.org/forum2008). The Forum is civil society’s chance to influence “OECD Week”, and is held in conjunction with the annual ministerial meeting.

With the world’s attention focused on climate change, the main question is how can global carbon emissions be reduced effectively? There is no single solution, which is why we must look seriously again at the importance of forests, in particular at an approach known as Reducing Emissions from tropical Deforestation and Degradation (REDD), and the incentives needed to achieve it.

How to be green and competitive was the centre of attention when environment ministers of OECD countries met at the end of April for the first time in four years. How to fight climate change and maintain competitiveness is a question that concerns many countries outside the OECD too, and the governments of four candidate countries for OECD membership–Chile, Estonia, Israel and Slovenia–participated at the conference, as did Brazil, China, Indonesia and South Africa, four countries with whom the OECD is strengthening its relations in a programme of “enhanced engagement”.

Transport is a major contributor to CO2 emissions. But can policymakers make a difference? We asked Anu Vehviläinen, Finland’s minister for transport, and chair of the first International Transport Forum in Leipzig in May 2008.

As the UN called recently on the world’s governments in an “extraordinary emergency appeal” for some $500 million to avert a food crisis in poor countries, many people were placing some share of the blame squarely on strong demand for grains from the biofuel industry.

Would adding US$1,500 to the price of a new car be enough to help halt climate change? That’s what US and EU experts broadly agree on as the average price tag for new technologies coming on stream to make cars more fuel-efficient and climate friendly. But what does that price tag entail?

The urgency of reducing fuel consumption rates while transport moves towards massive development over the next two decades, notably among developing economies, is clear. Any weapon counts as part of the overall package. Enter “ecodriving”.

With aviation growing in terms of the number of planes operating and passengers taking to the skies, the industry is engaged in an important and candid dialogue—how to continue to grow responsibly, while further reducing its impact on the global ecosystem

If CO₂ emissions from transport cause climate change, why not encourage more cycling? This is precisely what places like Brussels, Copenhagen, Vienna and Berlin are starting to do. One much talked about initiative is in Paris. As the home of cycling’s greatest race, the Tour de France, you would be forgiven for thinking the French always loved cycling. Yet until last year, cyclists and bicycle lanes were a rarity in the capital.

German Chancellor Angela Merkel will address the first International Transport Forum on climate change and transport at Leipzig on 28-30 May.

The OECD's offices are closed 24-31 December 2012 inclusive. The OECD Observer team would like to wish all our readers a very happy holiday season, and a safe and prosperous New Year.

Thomas Edison’s assertion that “genius is 1% inspiration, 99% perspiration” is particularly pertinent to the solar energy sector. This remarkable technology could hold answers to so many of the world’s energy challenges, but only at the cost of hard effort and investment. Solar Energy Perspectives, the first in-depth study dedicated to solar technology from the International Energy Agency (IEA), a sister organisation of the OECD, gives a comprehensive analysis of solar energy’s potential as well as the policies required to increase its capacity in the coming decades. 

Economic growth over the past decades has led to improved quality of life, increased prosperity and longer, healthier lives in nearly all countries. Resource constraints are making us realise that to continue to enjoy these benefits we will have to change course towards more sustainable or greener growth. 

While the world focuses on the ongoing economic crisis, the challenge of climate change grows increasingly desperate. A number of lessons still have to be learned. 

WWF’s 2010 Living Planet Report demonstrates that we are currently using 50% more resources than the earth can provide. If we allow current trends to continue, by 2030 we will need two planets to support us. It’s clear that “business-as-usual” is not the pathway to a prosperous future.

Health spending rises; Round up; Soundbites; Benvenuto!; Economy; Food speculation question; Chinese flexibility welcomed; Slovenia joins the OECD; Plus ça change...

Can a durable recovery come from greener growth? That largely depends on the policies. In 2011 the OECD will deliver its Green Growth Strategy. Here are some early pointers.

Despite the repeated warnings about its effects on climate change, as well as resource depletion, the most recent projections from the World Energy Outlook 2009 show that coal will still remain the principal powergenerating fuel for decades to come. In fact, its usage is set to double by 2030, 5% more compared with pre-existing projections. The adjustment takes into account a projected 10% consumption increase in non-OECD Asia, as well as an 8% decrease in the OECD area. Nowadays, an additional 217 GW of coalfired capacity is being developed throughout the world, over 80% of which is located in non-OECD countries, mostly in China.

As energy ministers from more than 50 countries gather for the International Energy Forum in Cancún, Mexico, at the end of March, the need–and opportunity– for dialogue between producers and consumers is more relevant than ever.

World agriculture faces an enormous challenge over the next 40 years: to produce almost 50% more food up to 2030 and double production by 2050. With pressure from increasing urbanisation, industrialisation and climate change also rising, proper water management will be vital.

Once hailed as the imminent successor to fossil fuels, biofuels are hitting some rough patches. Is it time to apply the brakes?

Agriculture not only contributes to climate change and is affected by it, it also forms part of the solution. Coherent and effective policies are needed.

In the years ahead, the global food and agriculture system will have to provide sustainably for billions more people and meet greater demands on quality, affordability and availability. Farming will be competing with other sectors for land, water and investment, while climate change adds new pressures.

Ministers and stakeholders from OECD member countries and key emerging economies gather in Paris on 25-26 February to discuss how best to respond to the challenges. We asked ministers from five of them–Austria and New Zealand as co-chairs, Canada, Germany and Chile–and leading representatives from Concern Worldwide, the International Federation of Agricultural Producers, John Deere, and the World Trade Organization:

“What actions are you prioritising to prepare the food and agriculture system for the needs of a rapidly changing world?”

Environmental policies can change people’s daily habits, as a new OECD survey shows.

European businesses were disappointed with the climate change agreement hammered out in Copenhagen. Here’s one way forward.

European businesses were disappointed with the climate change agreement hammered out in Copenhagen. Here’s one way forward.

At Copenhagen world leaders moved forward in step on climate change. More progress is needed in the year ahead.

Reducing greenhouse gas (GHG) emissions is a key objective of energy policies in many countries. As energy consumption will continue to increase in the medium and long term, even if the recent financial crisis might curtail this rise momentarily, there is a general consensus on the need to foster the development and use of all carbon-free options for energy supply. What role can nuclear energy play?

The UK government has prepared a map of the world showing how the effects of climate change would differ by region. The map, presented to OECD Secretary-General Angel Gurría by the British ambassador to the OECD, Dominic Martin, shows the likely impact on the planet of a 4 °C rise in the global average temperature.

On 2 November, Morocco launched a US$9 billion solar energy programme. With fi ve power plants, the programme aims for a total installed capacity of 2,000 MW by 2020-equivalent to almost 40% of the country's electricity production.

Through the ages, the countries of the Middle East and North Africa have been known for their great feats in engineering. The marvels are legion, from the Mesopotamian irrigation systems to the Great Pyramid. But did you know that the first concentrated solar steam engine was built near Cairo in 1914? A century later, solar energy is again putting the region on the cusp of new exploits, this time in renewable energy.

The current crisis is an opportunity to launch a new economic model, in which the environment, as a pillar of human welfare, must be central.

Ensuring Environmental Compliance: Trends and Good Practices

Despite their progress in developing green laws and policies, OECD countries are noton track to achieve some of their key environmental goals and commitments.

Environmentally-friendly investments form part of many recently launched recovery programmes. With the right policies, they could achieve growth and a cleaner planet as well.

“The Chinese government rightly advocates firm opposition to trade and investment protectionism, as emphatically stated by Premier Wen Jiabao on several occasions in the past few weeks. As it did a decade ago during the Asian crisis, China has set itself firmly against inward retrenchment in the face of economic downturn. We celebrate this commitment at OECD.

Pressure is mounting to arrest climate change, so it's hardly surprising that people around the world are being urged to use public transportation. After all, an overall strategy that includes getting people to give up their trucks and cars to use electric trolley buses, tramways and rail can help make a real dent in pollution, traffic congestion and greenhouse gas emissions. But try telling that to Australians living in the outback, long miles from the nearest bus station. Even most Japanese, who have access to some of the world's best high-speed rail links and urban mass transit, own some type of private vehicle.

Concerns for the world economy were already building when OECD governments met for the annual Ministerial Council Meeting (MCM) last June.

2008 will be a decisive year in the battle against climate change. Hopefully, it will see us forge an international consensus so an agreement can be reached in Copenhagen in 2009 that will allow us to build on the Kyoto Protocol.

We hear again and again that we must choose between having a stable climate and having a strong global economy. This is a false choice.

Harsh financial reality often rides roughshod over good intentions when it comes to corporate and national balance sheets. Climate change is no exception, for though it may rouse worldwide concern, it also makes people uneasy because of how much it might cost and who should pay.

With the world economy today experiencing turbulence on a number of diverse fronts, OECD countries are preoccupied with meeting these challenges.

The 2008 OECD Ministerial Council Meeting and Forum, the high points of the OECD calendar, could not be more timely. The issues we will be dealing with and the policy responses we will discuss should pave the way for a better world economy. Christine Lagarde, the minister of economy, finance and employment of France–the OECD’s host country–will chair the ministerial meeting.

Some 90% of world trade in tonnes is carried by ship, and containers represent 70% of total maritime trade by value. Per kilometre, shipping is one of the lowest emitting freight transport options around; at 10-15 grammes per tonne-kilometre, it is lower than rail (19-41g/tkm), trucking (51-91g/tkm) and aviation (673-867g/tkm). But the carbon footprint of the sector as a whole is as large as some major countries.

On a single busy day in the summer of 2007, 3.2 million people took to the skies above Europe in 33,000 flights which covered a total distance of 34 million km. That’s 42 billion passenger kilometres generated in just one day of European air traffic movements.

Impressive though these numbers appear, they are in fact expected to double shortly after 2025, assuming that the demand forecasts hold true and that the capacity issues across the European air traffic system are solved.

Any serious attempt to deal with climate change must involve transport. Transport accounts for 13% of all world greenhouse gas (GHG) emissions, though this figure takes into account CO₂ sources other than fuel combustion, such as forestry, land-use and biomass burning. A look at CO₂ emissions from fuel combustion only shows the transport sector accounts for about 23% worldwide and about 30% in the OECD area.

A 50% rise in global greenhouse gas emissions by 2050, higher temperatures, with more droughts and storms harming people, crops and buildings; more animal and plant species becoming extinct under expanding farmland and urban sprawl; dwindling natural resources; a billion more people living in water-stressed areas by 2030, with more pollution, disease and premature deaths ahead.

Europeans, particularly women, generally work fewer hours than their US counterparts. How does this difference help explain the transatlantic gap in incomes?

The UN Climate Change Conference in Bali in early December 2007 may have raised new hopes of progress, but as everyone knows, dealing with climate change will require more than just political goodwill. Providing for abundant, affordable, clean energy will require considerable investment in new power generation–more than US$11 trillion to 2030, based on an estimate in the IEA’s World Energy Outlook 2006.

More than three times the number of people around the world could be exposed to coastal flooding by 2070, largely because of climate change, a new report argues. With urban development along coasts increasing, an estimated 150 million people–up from 40 million people today–could be exposed to a one in 100 years coastal flood event.

The environment, particularly climate change, features high on the agenda in OECD business in the months ahead.

“Environment and Global Competiveness” is the theme of the 2008 OECD environment ministers meeting (Meeting of OECD Environment Policy Committee at Ministerial Level), which will take place 28-29 April. Among the highlights, ministers will discuss the results of the OECD Environmental Outlook to 2030, to be released on 5 March. Policy discussions will likely touch on environmental priorities for the coming decades, environmental co-operation with major emerging economies, competitiveness, eco-innovation and climate change.

The United Nations Framework Convention on Climate Change Conference in Bali in December 2007 was high in political stakes as well as emotion. But did it produce a result and what more might be done? New Zealand’s climate change ambassador offers his views.

Welcome to this special online focus on climate change, in view of the UN Climate Change Conference in Bali, Indonesia, 3-14 in December. "Ambitious policies to tackle climate change should lead to a structural shift in the economy – away from carbon-intensive activities. So the question that remains is: how can this transition be managed in an economically efficient and socially responsible manner? We should not exaggerate the cost of change. Action is affordable."

Energy consumption, and in particular the burning of fossil fuels, is the main source of human-induced greenhouse gas emissions. But energy is also a fuel for economic growth, particularly in the fast developing economies of the world. The challenge is to maintain economic growth, while reducing the carbon-content of energy and increasing the efficiency of its use.

Market-based credits can help control emissions alongside other instruments, though the system needs more work. And time. 

Investment in clean technologies can help achieve a wide range of environmental objectives, from mitigating climate change, to controlling air and water pollution, and enhancing resource efficiency in general. Indeed, many governments now see technological innovation as a key channel through which they can lift their economies onto a more sustainable path. But what role can public policies play in encouraging such innovation?

Prof Vaclav Smil’s lucid and measured thinking is correct in that we must be realistic about renewable energy’s future (No 258/259, December 2006). But I wonder if he is not being too dismissive of solar energy.

Satellites are not just about communications or defence, but can help us understand if not resolve some difficult environmental challenges, including climate change. They are investments in innovation whose benefits for humanity should speak for themselves.

As political leaders gathered in Heiligendamm in northern Germany this June and before that at the OECD in Paris in May, the concern on everyone’s minds was the future shape of the global economy.

Your energy focus covers the renewable question well (No. 258-259, December 2006). But what if the renewable promise became a broken one? It might, if mindsets don’t change. Thanks to technological advances and climate change fears, energy has pushed to the front stage again. Governments have been slower to move. Also, as Vaclav Smil’s article shows, the current energy system is based on high-energy density sources, like oil and coal, supplying nationwide energy grids (“21st century energy: Some sobering thoughts”).