OECD Work on the Green Growth Indicators database

OECD WORK ON

THE GREEN GROWTH INDICATORS DATABASE

OECD WORK ON

THE GREEN GROWTH INDICATORS DATABASE “Green and growth go very well together.

Green growth means we go for growth, but we preserve and we actually enhance the endowment of natural resources that we were provided with, and which today are sustaining the economic activity on our planet.” Ángel Gurría, OECD Secretary-General Watch the video: http://youtu.be/E63xH4D-k1U

The OECD Green Growth Indicators chart the progress that countries make in four areas, in relation to the socioeconomic context, economic growth and demographic trends.

These indicators are constantly being updated, refined, improved, through regular application, new research and international collaboration.

They are freely accessible on the OECD.Stat database.

What’s new in 2015 ?

Patent data are useful to measure the results of innovation policies. How many patents are actually registered? By whom? How much do researchers collaborate across countries? How well are technologies disseminated and legally protected in foreign markets ?

To measure this output of environmental innovation, the OECD published a new set of green patent indicators in March 2015. This set refines the patent indicators used until that date.

www.oecd.org/greengrowth/greengrowthindicators.htm

Green growth indicators The OECD designed the Green Growth Indicators to help countries assess and compare their progress.

The measurement framework combines the main features of green growth with the basic principles of accounting and the pressure-state-response model.

25 to 30 indicators were identified, under four main headings:

1

Environmental and resource productivity

2

The natural asset base

3

The environmental dimension of quality of life

4

Economic opportunities and policy responses Indicators that describe the socio-economic context and the characteristics of growth complete the picture.

4 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

Green Growth Indicators development requires progress on two fronts: methodological development and addressing data gaps. National statistics agencies have an important role to play here.

Conceptual development of Green Growth Indicators continues, including for six headline indicators: Carbon productivity Non-energy material productivity Environmentally-adjusted, whole-economy (multi-factor) productivity Natural resource index Land cover and use Population exposure to air pollution (PM2.5)

GREEN GR O W TH IN D IC ATORS F RAME W ORK ECONOMIC AC TIVITIES: PR ODUC TION, CONSUMP TION , TRA D E inputs

outputs

PRODUCTION

CONSUMPTION

POLICIES measures, opportunities

4 labour

taxes subsidies

income + Recycling re-use, remanufacturing, substitution

capital

1

INVESTMENTS goods & services

resources

energy and raw materials

3

residuals

pollution and waste

regulations

investment innovation

amenities, health

water, land, biomass, air

education, training, jobs, trade

sink functions

2 resource functions

NATURAL ASSET BASE

service functions

adapted from OECD (2014), Green Growth Indicators, http://doi.org/4f6 Icons from Thenounproject.com: Wilson Joseph, Jeremy Minnick, Sandor Szabo, Shrihari Sankaran, Laurent Patain, Filipos Trineiros, Gabriele Malaspina, Maximilian Becker, Bjorn Wisnewski, Natalia Bourges, Saman Bemel Benrud, Dave Tappy, Rafa Bosch, Arthur Shlain.

1

Environmental and resource productivity How productive is the economy in using natural capital?

These indicators monitor the efficient use of natural capital in the economy. They capture aspects of production which are rarely quantified in economic models and accounting frameworks. Currently, the database includes:

•

CO2 productivity. What are the results of policies promoting low carbon technologies and cleaner energy?

GDP growth or real income are related to production- and demand-based CO2 emissions.

•

Energy productivity. How much energy is necessary to generate one unit of GDP? What is the share of renewables in energy supply?

•

Material productivity. How much materials are consumed to produce one unit of GDP?

WORK IN PROGRESS:

• • •

Nutrient flows and balances Water productivity by sector Multifactor productivity reflecting environmental services

6 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

Figure 1. Decoupling CO2 emissions from economic growth

Relative decoupling (GDP increased faster than CO2 emissions) Absolute decoupling (GDP increased, CO2 emissions decreased)

A detailed, interactive version of this graph is available on www.oecd.org/greengrowth/greengrowthindicators.htm Complete database and metadata: stats.oecd.org (> Environment > Green growth) OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 7

2

Natural asset base Are we preserving the natural asset base of our economy?

Natural resources are a major foundation of economic activity and human welfare. They provide materials and ecosystem services that are necessary to develop human, social and produced capital. A declining natural asset base is a risk to economic growth and to the well-being of current and future generations. Currently, the database includes:

•

Water. Are water resources used efficiently? How do countries use water relative to their population or resources?

•

Land use. What shares of the total land area are dedicated to agriculture, pastures and meadows, forest?

•

Wildlife. How many animal and plant species are threatened?

WORK IN PROGRESS:

• • •

Energy and mineral resources Changes and conversions in land cover and use Natural resource index

8 . OECD WORK ON THE GREEN GREEN GROWTH GROWTH INDICATORS INDICATORS DATABASE

Figure 2. Water stress

Total freshwater abstraction as % total available renewable resources (bars) and as % total internal renewable resources (symbols) in 2012 or latest available year. // 103%

// 72%

medium- high

stress

moderate

water stress

low water

stress

high stress

// 67%

* No recent data available for freshwater abstraction as % available renewable resources in Israel.

A detailed, interactive version of this graph is available on www.oecd.org/greengrowth/greengrowthindicators.htm Complete database and metadata: stats.oecd.org (> Environment > Green growth) OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 9

3

Environmental quality of life How does environmental quality interact with people’s health and lives?

Production and income growth may not always be accompanied by a rise in well-being. A degraded environment can incur health problems and costs, lower labour productivity, impair ecosystem functions and generally lower the quality of life. Currently, the database includes:

•

Access to sewage treatment. What share of the population is connected to sewerage with primary (mechanical), secondary (biological), tertiary (chemical) treatment?

WORK IN PROGRESS:

•

Population exposure to air pollution such as fine particulates (PM10 and PM2.5) and ozone (O3)

•

Access to environmental amenities such as green spaces, recreation areas and public transport.

10 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

Figure 3. Access to sewage treatment

Population connected to a public sewage treatment plant in 2013 or latest available year

% population connected to sewerage

with primary treatment

with secondary treatment

with tertiary treatment

A detailed, interactive version of this graph is available on www.oecd.org/greengrowth/greengrowthindicators.htm Complete database and metadata: stats.oecd.org (> Environment > Green growth) OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 11

4

Economic opportunities and policy responses Are policies effective in delivering green growth?

Are countries putting in place the right policies and measures to catalyse the investments needed for a greener growth? Currently, the database includes:

•

R&D. What share of the government’s budget, or of the GDP, goes to research and development? And what share is directed at energy or the environment?

•

Patents. How many patents are registered in each environmental sector? How many are protected in foreign countries? How much do researchers collaborate internationally?

•

Development assistance. What share of official development assistance is in favour of green growth?

•

Taxes. What share of total tax revenue is raised through environmentally related taxes? How much applies to energy or road transport?

WORK IN PROGRESS:

• •

Environmentally related expenditure Environmentally related subsidies

12 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

• •

Environmental policy stringency and design Carbon market financing

Figure 4. Bending innovation towards greener technologies Growth in patenting in all technologies compared to environmental technologies

Slovenia Brazil Japan

OECD

Mexico

France United States

Note: Based on counts of high-value inventions (patent families of size two or greater) classified by the country of residence of the inventor.

A detailed, interactive version of this graph is available on www.oecd.org/greengrowth/greengrowthindicators.htm Complete database and metadata: stats.oecd.org (> Environment > Green growth) OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 13

What is green growth?

“Green” and “growth” must go hand-in-hand.

Structural reforms can unlock new growth engines by:

In 2009, OECD ministers asked the OECD to develop a Green Growth Strategy to help the governments of OECD countries and partner economies alike achieve economic recovery, along with environmentally and socially sustainable growth.

• Enhancing productivity by creating incentives for

The 2011 Green Growth Strategy responded to this mandate: it sets a framework for governments to foster economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services vital to human well-being.

It recognises that risks to growth continue to rise as traditional growth models negatively affect the physical environment that ultimately underpins human well-being.

In addition to the need for greater productivity growth, a growth agenda must take account of the consequences of productivity growth for the supporting physical environment. The need to ensure that growth is inclusive is a further pillar for growth.

14 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

greater efficiency in the use of natural resources, reducing waste and energy consumption, unlocking opportunities for innovation and value creation, and allocating resources to the highest value use.

• Boosting investor confidence through greater predictability in how governments deal with major environmental issues.

• Opening up new markets by stimulating demand for green goods, services and technologies.

• Contributing to fiscal consolidation by mobilising revenues through green taxes and the elimination of environmentally harmful subsidies, which can help free up resources for anti-poverty programmes.

• Reducing risks of negative shocks to growth due to resource bottlenecks, as well as damaging and potentially irreversible environmental impacts.

Key publications THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Towards Green Growth?

Tracking progress July 2015 Key Findings and Recommendations already available on http://bit.ly/1e8aNmI

The Organisation for Economic Co‑operation and Development (OECD) is a multi‑disciplinary inter-governmental organisation, tracing its roots back to the post‑World War II Marshall Plan. Today, it comprises 34 member countries that are committed to democratic government and the market economy and the European Commission, with the major emerging economies increasingly engaged directly in the work. The OECD provides a unique forum and the analytical capacity to assist governments to compare and exchange

Green Growth Indicators January 2014 - http://doi.org/4f6

policy experiences, and to identify and promote good practices through policy decisions and recommendations.

OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 15

www.oecd.org/greengrowth/greengrowthindicators.htm

www.oecd.org/greengrowth/ greengrowthindicators.htm

OECD Environment Directorate env.contact@oecd.org

Graphic Credits Photos. Cover Š Nikada/Shutterstock. P. 2: Eloi Omella/iStock. P. 4: Jan Miko/iStock. P. 6: Card76/iStock. P.8: ApuuliWorld/iStock. P. 10: Greg da Silva/Dreamstime Icons by Lokaalwerk and from Thenounproject.com: Wilson Joseph, Jeremy Minnick, Sandor Szabo, Shrihari Sankaran, Laurent Patain, Filipos Trineiros, Gabriele Malaspina, Maximilian Becker, Bjorn Wisnewski, Natalia Bourges, Saman Bemel Benrud, Dave Tappy, Rafa Bosch, Arthur Shlain, Jens Windolf.

2015