OECD Green growth strategy Measuring progress through indicators Horizontal Task Force on Green Growth Indicators OECD STD, ECO, ENV, STI, IEA

The Green Growth Strategy 5/15/2019 The Green Growth Strategy Request by Ministers of Finance, Economy & Trade in 2009 Involves 25 OECD Committees 2 key deliverables: Interim Report for the 2010 MCM Synthesis Report for the 2011 MCM International Green Growth Dialogue

The Green Growth Strategy What are the key elements of the Strategy? Reform environmentally harmful subsidies Remove barriers to trade in environmental goods and services Strengthen policy coherence Remove barriers to green growth Adopt an integrated policy mix: market and non-market based instruments Accelerate the innovation and diffusion of green technologies Encourage measures for greener consumption and develop innovative financial mechanisms Promote trajectory shift Smooth reallocation of labor through key labor market and training policies Upgrade workers' skills and competencies Address distributional effects of the associated structural change Support the transition Improve financing mechanisms for global public goods Enable pro-poor green growth Address potential competitiveness issues Promote technology transfer and R&D co-operation Strengthen international co-operation Develop a new accounting framework and a set of green growth indicators Measure impact of specific policies Measure progress Greener growth Main elements of the framework: A policy toolkit for: Overcoming barriers to green growth: e.g. reform of environmentally-harmful subsidies, removal of barriers to trade in green G&S, rationalising conflicting policy instruments. Enabling an efficient shift to green growth: e.g. taxes & MBIs, regulations, R&D and green innovation policies, VAs, information-based approaches. Managing the transition: green job opportunities & new skills, industrial restructuring, distributional aspects. International co-operation for: financing of global public goods (facilities or mechanisms to help address e.g. climate, biodiversity loss) addressing competitiveness effects green technology development and transfer pro-poor green growth A new accounting framework and indicators for: measuring progress supporting policy analysis

The Green Growth Strategy What key environmental challenges will it address? Economic Development Biodiversity and Ecosystem Services Sustainable Use of Resources Sustainable Materials Management Climate Change

Green Growth Indicators 5/15/2019 Green Growth Indicators Purpose Monitoring implementation of the strategy Measuring progress towards GG Supporting policy analysis Foundations Existing work & experience: environmental indicators, including resource efficiency, decoupling; economic indicators; energy (efficiency) indicators; S&T and (eco) innovation indicators; etc. Inter-Directorate Task Force Short term   long term   Stiglitz

Green Growth Indicators GGS provides no rigorous definition of green growth …but there is working definition « Green growth is a way to pursue economic growth and development, while preventing environmental degradation, biodiversity loss, und unsustainable natural resource use » …which has been used to build a framework for indicator development Scope / issues Determinants of GG (in line with strategy) Start with “environmental” issues that are key to GG

Green Growth Indicators 5/15/2019 Green Growth Indicators Indicator framework Generally: pragmatic approach towards choice of indicators so that they respond to criteria of policy relevance, analytical soundness and measurability Flexibility, adaptability International coherence: SEEA, Stigltiz, Beyond GDP Growth accounting framework / issues / sectors Five groups of indicators to monitor: the environmental efficiency of production the environmental efficiency of consumption the natural asset base of the economy, including natural resource and material stocks, and biodiversity the environmental quality of life policy responses and instruments

Green Growth Indicators - Framework Economic activities (production, consumption, trade) Economic and social agents Outputs: Goods, services Production process Recycling, re-use, re-manufacturing, substitution Inputs: Labour, capital, energy, materials, environmental services Multi-factor productivity Policies, measures, instruments: Taxes, subsidies, regulations, investments, innovation, education Consumers 5 4 2 1 Public per-ceptions Services, amenities, health & safety aspects Pollutants, waste Natural resources (water, biomass, air, land, energy, materials, …) Natural capital stocks and environmental quality 3 1: Indicators of environmental efficiency of production and changes in production patterns 2: Indicators of environmental efficiency of consumption and changes in consumption patterns 3: Indicators of stocks of natural capital and environmental quality 4: Indicators of objective and subjective environmental quality of life 5: Indicators of responses by economic actors

Green growth and Measurement of Progress Green Growth asks about how to achieve growth that is environmentally sustainable and how environmental considerations can foster growth The Progress Agenda asks ‘which growth’ and ‘whose growth’? (income or production? household perspective or economy-wide growth?) Two areas where Green Growth and Measuring Progress meet directly: Sustainability dimension of progress agenda Environmental quality of life