This document provides a detailed technical description of the ENV-Linkages model. The OECD ENV-Linkages Computable General Equilibrium (CGE) model is an economic model that describes how economic activities are inter-linked across several macroeconomic sectors and regions. It links economic activity to environmental pressure, specifically to emissions of greenhouse gases (GHGs).

This paper presents a framework to include feedbacks from climate impacts on the economy in integrated assessment models. The proposed framework uses a production function approach, which links climate impacts to key variables and parameters used in the specification of economic activity. The paper pays particular attention to the challenges of distinguishing between damages and the costs of adapting to climate change.

Have you ever wondered who was paying to recycle that plastic bottle you just threw away?

This workshop focused on putting priorities into practice in OECD countries. Country-specific prioritisation, sectoral approaches, mainstreaming tools including questions on public sector finance and research needs were all topics covered during the two days of the workshop.

In many areas today, there is no such thing as a “natural” landscape. Thousands of years of farming have selected and encouraged some species, marginalised or eliminated others. The land itself has been altered by ploughing, enclosure, herding and other human interventions. We may feel that we have tamed Nature. Reports like this new one from the OECD remind us of our ignorance and warn us about our arrogance.

Climate change and biodiversity loss have increasingly become the subject of international policy deliberations. It is widely recognised that strong and effective international co-operation is required to address these issues. Co-operation in science and technology between developed and developing countries is considered to be of particular importance.

The paper reviews a number of commercial and public data sources to examine their potential for increasing coverage and understanding of the volume and characteristics of private climate finance beyond renewable energy projects. Such information is needed to assess progress towards the global transition to low-carbon, climate-resilient economies.

Education plays a crucial role in raising awareness of environmental challenges and shaping the attitudes and behaviours that can make a difference. A recently released Trends Shaping Education Spotlight looks at the role of education in both preparing and providing our citizens with the skills needed for a sustainable and productive future.

Iceland must balance growth in power and tourism industries with nature conservation, OECD says Iceland has one of the world’s most pristine natural environments and its glaciers, volcanoes and hot underground springs bring major economic benefits via renewable energy and tourism.

Reversing the damage is within our grasp, but it will hinge on a strong international climate agreement and policies that make polluters pay. Op Ed by Angel Gurría, OECD Secretary-General and Nick Stern, Chair of the Grantham Institute for Climate Change and the Environment at the London School of Economics, The Guardian.

The OECD Environment Directorate has produced two videos to explain key climate issues as the UN Climate Summit opens today at UN headquarters in New York.

As the Millennium Development Goals (MDGs) approach their expiry date, we must focus our efforts on ensuring a brighter, more inclusive and sustainable future for all. We face a plethora of common issues: growing inequalities; changing consumption patterns and population dynamics; increasing natural resource scarcity; and ongoing illicit financial flows.

Despite large and growing investments in knowledge and innovation, productivity growth in many countries has slowed in recent years. At the same time, the urgent need for more rapid innovation (including its uptake and diffusion) in several key areas, such as in environment. This joint OECD-NBER workshop on 25-26 September 2014 will bring together academic experts to consider these challenges.

When you think of biodiversity conservation, you probably think of the classic images: the polar bear, the lion, the elephant, the giraffe. The ecological community likes to call them charismatic megafauna, with only a hint of satire.

What’s water security worth, and how much are we willing to pay for it given competing demands and constrained public budgets? asks Simon Upton, Environment Director at the Organisation for Economic Co-operation and Development (OECD).

Southeast Asia’s over-reliance on natural resources like oil, gas, minerals and wood for economic growth is unsustainable over the long term and is causing environmental damage that will hurt future prosperity if left unchecked, according to a new OECD report.

The G20 needs to go structural, social, and green! With fiscal and monetary policy room nearly exhausted, structural reforms are the best choices, sometimes the only choice. The OECD battle cry in this regard has been unchanged since 2008: “go structural!”.

Angel Gurría, Secretary-General of the OECD congratulated the newly elected President of Indonesia, Joko Widodo, for taking a bold first step in his economic reform agenda by substantially cutting fuel subsidies.

The world is facing unprecedented stresses, and we are going to need an unprecedented response. We’re doing our best to help create that response at the OECD.

Water security is one of the greatest challenges we face today, yet the situation has never looked more perilous. By 2050 the OECD Environmental Outlook projects that nearly 4 billion people will live in river basins under severe water stress, and global nitrogen effluents from wastewater are projected to grow by 180%. Whilst, over the same period, global demand for water is expected to grow by 55%.

Held on 27-28 November 2014, the forum focused on four areas that can contribute to more integrated policy making. Topics for discussion included the need to understand long-term impacts of the nexus on growth; ways to improve coherence between national, regional and local planning and priorities; the importance of promoting private sector investment in the nexus; and....

This report is the third OECD review of Sweden’s environmental performance. It evaluates progress towards sustainable development and green growth, with a focus on Sweden's longstanding commitment to mitigating emissions of greenhouse gases and its management of marine ecosystem services and water.

As environmental pressures continue to rise, governments throughout the OECD area have not been sitting back. If anything, the stringency of their policy measures has been increasing on the whole, not least to combat pollution and climate change. And as the evidence shows, stringent environmental policies can be introduced without hurting overall productivity.

In today’s hard times, policy-makers can find it difficult to sell their environmental policies. To many, these policies represent a burden on the economy.

This study uses a unique dataset of investment flows to analyse the role of two categories of public interventions (finance and policies) in mobilising flows of private climate finance worldwide and in the more specific context of flows to and in developing countries. The objectives are threefold. Find out more.

The polar bear, floating mournfully away on an ice floe as his habitat melts around him, is perhaps one of the most well-travelled symbols of the impacts of climate change.

It’s time for governments to ramp up the development of alternative energies and to nail a price onto every tonne of CO2 emitted. With COP21 taking place in Paris in November, sending the right message on climate change means gradually increasing the cost of CO2 emissions, and creating a strong economic incentive to reduce the carbon entanglement and to move towards a zero-carbon world.

If you’ve just visited the room with no windows and enjoyed the effortless push of the “deposit disposal button” followed by a stream of fresh, clean tap water to wash your hands, you could well be in an OECD city

When considering a by-product, can this material or waste be used in another industry or in another manufacturing process instead of putting it into the environment, moving “from waste to resources” as the OECD says?

The fates of humanity and of the environment are two sides of the same coin. That is why we must focus increasingly on not just development but sustainable development. To do that, we need to form global coalitions to work for progress on a range of challenges.

Business brief. Overcoming the challenges of an arid climate and scarce natural water reserves has always been a vital necessity for the growth of Israel’s population and economy since the founding of the state. This has led to continuous improvements in Israel’s water sector, through innovations in technologies, practices and long-term plans.

Rapid population growth, ageing infrastructure and new weather risks are straining the ability of cities in OECD countries to provide clean water and to protect against floods and droughts, according to a new OECD report. Cities will need large-scale investment and more effective tariffs and taxes to pay for upgrades to water systems.

Water resources allocation determines who is able to use water resources, how, when and where. Capturing information from 27 OECD countries and key partner economies, the report presents key findings from the OECD Survey of Water Resources Allocation and case studies of successful allocation reform.

Concerns around potential losses of competitiveness as a result of unilateral action on carbon pricing are often central for policy makers contemplating the introduction of such instruments. This paper is a review of literature on ex post empirical evaluations of the impacts of carbon prices on indicators of competitiveness as employed in the literature, including employment, output or exports, at different levels of aggregation.

Latest Environment Working Papers on greening household behaviour: overview of results from econometric analysis and policy implications; energy; food; transport; waste; and water.

Climate change and, more generally, environmental damage have quantifiable economic and health costs, which weigh on long-term growth and well-being. If left unchecked, climate change is projected to decrease global GDP by 0.7 to 2.5 % by 2060. At the same time, the costs to society of air pollution already appear substantial–equivalent to some 4% of GDP across OECD countries and even higher in some rapidly developing economies.

The OECD Secretary-General, Mr. Angel Gurría, chaired several high-level panels; the OECD actively participated through a series of events, the launch of four new reports and by taking part in a number of workshops and seminars throughout the forum. ‌

This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Two recent working papers: sustainable Consumption Dilemmas and Tender Instruments: Programme Participation and Impact in Australian Conservation Tenders, Grants and Volunteer Organisations.

Poland has combined robust economic growth with reducing some of the pressures on its environment since it joined the EU in 2004. It has also brought environmental laws closer to European norms. Poland now needs to lessen its economy’s reliance on fossil fuels and make growth greener, according to a new OECD report.

A transition to a low carbon economy is achievable, but will require a concerted, more consistent effort across a range of policy areas, from tradeable permits to stringent norms.

In his remarks to the Business & Climate Summit, the Secretary-General said that business lies at the heart of what we need to achieve on climate action. If Governments produce clear, credible and coherent national policies and clear messages and signals, the full transformative power of business, markets and human ingenuity will be unleashed.

The OECD hosted a workshop on green investment banks on 20 May 2015. It built upon discussions of green banks at the OECD Green Investment Financing Fora (May 2015 and June 2014) and continued international dialogue on the experiences of green banks. The workshop welcomed 9 different green banks, public financial institutions, NGOs, the private sector and over 20 countries interested in the green bank model.

OECD can work its hardest to raise awareness on the truths of climate change, but the world won’t see developments in green technology and infrastructure unless we have eager investors backing up investment and research and development in low-carbon technologies.

In January of this year I visited the Mexican state of Tabasco– a state crossed by rivers and facing the Gulf of Mexico. The state’s population has doubled over the past 30 years and its economy relies heavily on oil and natural gas resources. It has its challenges as well: unemployment, poverty and a lack of resources.

Over the coming months, the world will be preparing for what is heralded as an historic meeting for climate change negotiations. If the right decisions are taken–with the aim of making a sustainable energy future a reality–we will be able to reap enormous, multiple benefits deriving not only from decarbonisation, but also from reduced air pollution, better energy access, energy security and economic prosperity.

For many years one of the predominant conventional wisdoms in both business and policymaking circles was that cutting greenhouse gas (GHG) emissions necessitates a sacrifice in economic growth.

For the past decade or so, there has been a lot of debate in policy circles on how to get governments and the private sector to work together more collaboratively in order to catalyse the transition to green growth. The good news is that in that time many factors have come together to make this more of a reality.

Ministers from OECD’s 34 member countries today welcomed the new OECD Principles on Water Governance, which set standards for more effective, efficient and inclusive design and implementation of water policies, and encouraged governments to put them into action.

The OECD’s Annual Meeting at Ministerial Level reinforced member governments’ support across a broad range of key OECD work.

We could spend World Environment Day warning of the doom and gloom of future Earth, but considering how much we have done that already, that’s not going to get us very far as we approach this year’s COP21 in Paris. Instead, we are going to give you a taste on what we do here at the OECD headquarters to help save the environment, taking our own medicine on what we prescribe to governments.