Reports

The growing demand for raw materials in the Hungarian economy projected up to 2050 is expected to exert significant additional pressure on the environment, putting the country at risk of missing important environmental goals and opportunities to strengthen the competitiveness and resilience of its economy. Despite the notable progress in decoupling environmental pressures from economic activities over the past 20 years, several challenges remain. The transition to a circular economy has significant potential to address these challenges. To fully realise the circular potential of its economy, Hungary will need to adopt a comprehensive circular economy policy framework. This report outlines a set of key elements for the development of the Hungarian national circular economy strategy and action plan. It identifies priority areas that are deemed critical to the Hungarian circular economy transition, including: biomass and food, construction and plastics, as well as cross-cutting horizontal tools to facilitate an economy-wide circular transition. It also provides 45 policy recommendations and suggests specific implementation actions across the priority areas for the short, medium and long term.

The report Measuring Progress towards Inclusive and Sustainable Growth in Japan is the outcome of a collaboration with the Japanese Ministry of Economy, Trade and Industry which aims to monitor progress in key areas crucial to realising the Japanese government’s vision for a 'New Form of Capitalism'. Building on the OECD Framework for Policy Action on Inclusive Growth, the report includes a set of key indicators to support measures for the government to deliver on its vision as well as inform on best practices in other major advanced economies. A central message is that creating the equality of opportunity in Japan requires a balanced approach of taking both efficiency and equity concerns into account. The report presents the main dynamics for policy consideration to strengthen sustainability of the Japanese growth model, with due attention paid to specific issues that matter for different groups of Japanese population. Underpinned by rigorous statistical analysis at a sufficiently disaggregated level, the report helps to better understand some of the main drivers of well-being and economic success in Japan.

This Policy Insights presents the main findings from the report Measuring Progress towards Inclusive and Sustainable Growth in Japan, which provides robust metrics to monitor inclusive growth and help assess the distributional impacts of policies in line with the government’s vision for a 'New Form of Capitalism'. Underpinned by rigorous statistical analysis at a sufficiently disaggregated level, this work helps to better understand some of the main drivers of well-being and economic success in Japan.

This report presents policy reform options to support Lithuania in meeting its climate neutrality target. It takes stock of Lithuania’s current and planned climate policies and assesses their potential for meeting the country’s climate ambitions. The report details the results of modelling carried out to assess the effectiveness of different policy scenarios, an analysis of carbon pricing and the role of innovation, an assessment of financial needs in the transition to net zero, and an analysis of the distributional implications of carbon pricing. Bringing together these findings the report offers recommendations for policy reform, highlighting the importance of setting price signals complemented by innovation support, as well as the potential of revenue recycling options in alleviating distributional concerns.

The iron and steel sector accounts for almost 8% of global emissions, making it one of the highest emitting industry sectors with around 30% of industrial carbon emissions. Decarbonising the steel sector is therefore key to achieving climate goals. This report, prepared for the 2023 Japanese G7 Presidency, demonstrates that considering the heterogeneity of steel industries is vital for reaching climate goals and for a just and inclusive transition to a low-carbon future. The report maps the heterogeneity of global steel industries, highlighting the differences between them in key areas relevant to decarbonisation. Additionally, it examines how these differences should be considered when developing definitions for near-zero and low-emissions steel production, as well as emissions measurement methodologies and data collection frameworks.

The EU Water Framework and Floods Directives have not only set the level of ambition for water resources management in Europe, but have also provided a model for other regions in the world. Effective implementation of the Directives requires that due consideration be given to their economic pillar, designed to support a cost-effective approach in member states and communities. Recent reviews indicate that there is considerable room to improve the integration of water economics within the framework of water resources management. This report captures the lessons learned from five thematic workshops co-convened by the OECD and the European Commission. It provides an overview of the challenges faced by EU member countries and opportunities to strengthen the economic approach of water resources management in Europe. Covering cost recovery, polluter pays principle, water scarcity, planning and financing, the lessons are relevant for regions and countries across the globe.

Portugal managed to decouple several environmental pressures from economic growth over 2013-19. It played a leading role in the approval of the European Climate Law and adopted the Portuguese Framework Climate Law in 2021. This needs to be swiftly implemented to achieve carbon neutrality by 2050, improve climate resilience and protect ecosystems. Portugal has stepped up adaptation efforts but needs to do more to address multiple threats, including coastal erosion, floods, droughts and forest fires. The country is lagging behind in waste management. Meanwhile, the increase in freshwater abstractions in water-scarce southern regions is a concern. This is the fourth Environmental Performance Review of Portugal. It provides an evidence-based assessment of the country's progress towards its environmental goals over the past decade. The 26 recommendations aim to help Portugal improve its environmental performance, giving special focus to carbon neutrality.

The green transition is changing jobs, skills, and local economies. It poses new challenges but also opportunities, both of which will differ across places within countries. This report, Job Creation and Local Economic Development 2023: Bridging the Great Green Divide, provides novel evidence on those risks and opportunities across regions in 30 OECD countries. It examines the geography of green-task and polluting jobs and examines the impact of the green transition on gender and socioeconomic inequality by identifying the characteristics of workers in those jobs. Furthermore, the report tracks the progress regions have made in greening their labour market over the past decade. The report provides actionable policy recommendations that can help deliver a green and just transition. It looks at past and other ongoing labour market transitions and identifies local success drivers that can help communities prepare for and manage the impact of the green transition. Finally, it points out actions for ramping up and adapting local skills development systems to meet the demands of the green transition and equip their workforce with the right skills for the future.

India, the Lifestyle for Environment (LiFE) initiative aims to encourage the adoption of sustainable lifestyles in India and internationally to tackle the challenges of environmental degradation and climate change. This report examines how India has integrated several policies in its energy transition strategy that are aligned with the LiFE initiative, highlighting the potential for behavioural change and consumption choices to help advance energy transitions globally. It then analyses the impact on energy consumption, costs and emissions of measures like those proposed by the LiFE initiative, such as buying an EV or taking public transport, if they were adopted globally. Finally, it considers how India’s first G20 Presidency could strengthen the LiFE initiative by anchoring it in the G20’s current framing of energy transitions and initiating processes to gather experience and best practices of policies and programmes that G20 members are already conducting.

In spite of progress made to date and the significant long-term ambition announced by many countries, climate policy actions remain insufficient to meet the Paris Agreement objectives. While several international initiatives aim to track and monitor climate policies, there is not yet a 'go to' place for a comprehensive inventory of policy actions and best practices worldwide. Such a platform would also ideally serve to compare policies’ effectiveness reflecting the diversity of country circumstances. Progress in this direction would help to promote an ambitious but globally more coherent and better-coordinated approach to emission reductions through a broad range of policies. This report lays out a roadmap for data and analytical work to support this aim, with a view to enhancing global dialogue and building trust on issues spanning climate change mitigation policies and their macro-economic repercussions. Key elements to strengthen the assessment and comparison of countries’ climate change mitigation policies across countries include: broadening and deepening the stocktaking of mitigation policies; extending and agreeing on an operational methodology for estimating the impact of these policies on emissions and on potential metrics to compare them; and assessing the broader economic effects of different climate policies.