Publications & Documents

This paper examines the current status of water availability, water demand, and influences from climate change in the European Union. It provides an overview of economic policy instruments to address water scarcity and manage water demand. Additionally, the paper explores policy options and considerations for addressing water scarcity and meeting Water Framework Directive (WFD) objectives. These considerations include balancing demand management and supply augmentation, managing water scarcity through robust allocation regimes, and increasing the use of agro-environmental measures and practices. The paper also discusses the principles and features of effective allocation regimes, drivers and incentives for allocation reforms, the hierarchy and sequencing of water use, abstraction charges, ensuring return flows and ecological flows, and improving the coherence of WFD measures and climate change policies. This is the third in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines three sets of issues related to strategic investment planning and financing for water: i) Investment planning in an uncertain context; ii) The benefits of supplementing project level planning with a consideration for pathways of investments; iii) Facilitating access to a wider range of financing sources, most importantly commercial finance. Together these issues can enhance the performance of water-related finance, making the best use of available finance and assets, in a context marked by high-level of (public and private) debt and rising cost of finance. This is the first in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines the challenges and policy imperatives involved in implementing the Polluter Pays principle (PPP) in the context of the Water Framework Directive (WFD). It presents the state of play of the Polluter Pays principle in EU Member States. It also analyses the coherence with other policies in EU Member States, such as agriculture, land planning and industry. Furthermore, it examines the practical limitations of the Polluter Pays principle in relation to diffuse and legacy pollution. Finally, it questions how the principle fits into the Green Deal and future water-related challenges in the EU. This is the second in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

This paper examines the concept of cost recovery of water services under the EU Water Framework Directive (WFD), including the different types of costs and cost-recovery mechanisms. It presents the state of play in the implementation of cost recovery in EU Member States, for financial, environmental and resource costs. It also analyses the political, societal and technical issues affecting cost recovery in EU Member States. Furthermore, it examines emerging options to recover rising costs, including ways to minimise costs and innovative arrangements to supplement existing funding streams. Finally, it questions how fit cost recovery is as a concept for emerging and future water-related challenges in the EU. This is the fourth in a sub-set of four working papers within the Environment Working Paper series destined to support the further implementation of the economic pillar of the Water Framework Directive. The four papers are best read in combination and provide lessons which are relevant beyond the European Union.

Companies are announcing pledges to increase their use of recycled content in their plastics products or packaging. But companies have historically failed to meet the goals that they have announced. OECD governments are adopting policies that will require the use of recycled content. There is some initial evidence that these policies strengthen recycling markets. Businesses have experienced some challenges in their initial efforts to comply due to a disharmonious range of definitions and targets. Additionally, there is an insufficient volume of useable recycled material in the market. This is especially an issue for food-contact packaging. Governments are facing limitations in what is feasible for monitoring and verifying compliance. This paper reviews current policies and methods for checking compliance. This review informs description of considerations for the design of recycled content policies and insights about their use.

The consumption of products, services and transportation has significant environmental consequences and account for the majority of global greenhouse gas emissions. Meanwhile, demand-side policy measures have the potential to reduce the environmental footprint of these activities by up to 40-70%. This Policy Paper draws on the OECD’s recent household survey on environmental policy and behavioural change to provide insights and policy recommendations for specific measures that can encourage more sustainable household consumption of energy, transport and food as well as more sustainable waste practices. The report was prepared in support of Japan’s 2023 G7 presidency.

This report outlines results from the initial pilot-testing of a Scorecard to assess the enabling environment for investment in water security, referred to as 'the Scorecard'. Developed in collaboration with the Asian Development Bank and partners, the Scorecard aims to identify conditions for attracting and maintaining investment in water security. The report outlines the Scorecard's rationale, scoring methodology, and presents its main components. It also provides results from seven Asian countries, namely, Bangladesh, Mongolia, Nepal, Pakistan, the Philippines, Uzbekistan, and Sri Lanka. Armenia's findings from a subsequent Eastern European pilot test are also incorporated. This is the first in a sub-set of working papers within the Environment Working Paper series presenting research on the enabling environment for investment in water security. It marks the beginning of a process to apply the tool and support policy reforms. The report refrains from offering policy recommendations, focusing on testing the scorecard's ability to assess conditions to attract and sustain investing in water security. For an illustration of country-specific policy recommendations, please refer to the forthcoming Environment Working Paper 'Enabling environment for investment in water security: Pilot test in the EU’s Eastern Partner Countries - Armenia case study'.

The Economic Outlook for Southeast Asia, China and India is a regular publication on regional economic growth and development in Emerging Asia – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam, as well as China and India. It comprises three parts: a regional economic monitor, a thematic chapter addressing a major issue facing the region, and a series of country notes. The 2024 edition discusses the region’s macroeconomic challenges such as external headwinds, impacts of El Niño and elevated levels of private debt. The thematic chapter focuses on strategies to cope with more frequent disasters. Emerging Asia is among the world’s most disaster-prone regions, and the threat of disasters, such as floods, storms, earthquakes and droughts, is increasing. The report explores how countries can reduce disaster risks and improve resilience by developing a comprehensive approach involving policy measures such as improving governance and institutional capacity, ensuring adequate budgets and broadening financing options, strengthening disaster-related education, improving land planning, investing in disaster-resilient infrastructure and disaster-related technology, improving health responses, and facilitating the role of the private sector.

Waste crimes create social and economic issues. Offenders commit crime due to either a lack of awareness of waste law or the belief that there is a low risk of being caught and punished. OECD countries are using digital tools to improve their use of resources with the aim to promote compliance and detect violation of waste law. This paper reviews the types of waste crimes, their motivations, and opportunities for governments to use digital tools for their enforcement efforts. It finds that governments have thus far mainly focused on digitalising their data collection and their exchange of information with the public and partners. Further application of digital tools can improve the connection of these tools and test predictive analytical tools such as artificial intelligence systems.