COVID-19 et crise climatique : associer instruments de budgétisation environnementale et de politique fiscale au service d’une meilleure reprise

Par Elsa Pilichowski, Directrice de la gouvernance publique, et Pascal Saint-Amans, Directeur du Centre de politique et d’administration fiscales

Shutterstock.com / RachenArt

On dit que demain se construit aujourd’hui. Lorsque le président de la République française a confirmé la participation de la France à l’initiative de l’OCDE pour une budgétisation environnementale (« Paris collaborative on Green Budgeting ») en décembre 2017, il n’aurait guère pu deviner que, moins de trois ans plus tard, la budgétisation environnementale deviendrait un outil central pour amorcer une « reprise verte » de la France après une pandémie mondiale. Lors de la réunion de la Paris Collaborative on Green Budgeting qui s’est tenue au début du mois d’octobre, des responsables du Trésor français ont présenté aux délégués de l’OCDE la façon dont le gouvernement avait utilisé cet outil pour identifier des dépenses compatibles avec l’environnement afin de contribuer à l’objectif que la France s’est fixé de consacrer 30 milliards EUR de son plan de relance post-COVID-19 à la transition écologique.

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COVID-19 and the climate crisis: Combining green budgeting and tax policy tools for a better recovery

By Elsa Pilichowski, Director of Public Governance, and Pascal Saint-Amans, Director of the Centre for Tax Policy and Administration

Shutterstock.com / RachenArt

It has been said that the best preparation for tomorrow is doing your best for today. When the President of the French Republic confirmed France’s participation in the Paris Collaborative on Green Budgeting in December 2017, he could hardly have known that, less than three years later, green budgeting would become a central tool for developing France’s “green recovery” from a global pandemic. At the meeting of the Paris Collaborative on Green Budgeting earlier this month, French Treasury officials showcased to delegates from across the OECD how the government had used this tool to identify environment-compatible spending that helped France meet its goal of dedicating EUR 30 billion of its COVID-19 recovery plan to a green transition.

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The case for sustainable ocean finance

By Andrew Prag and Shanda Moorghen, OECD Environment Directorate

Shutterstock.com / Sergey Nivens

“All relevant studies show that enabling the required financial flows into sustainable coastal and offshore projects will turn the tide on the destruction of life in the ocean” – Peter Thomson, United Nations Secretary-General’s Special Envoy for the Ocean, introducing the OECD panel on “Financing a Sustainable Ocean Economy”, 7 October 2020.

The ocean underpins billions of livelihoods, is a vast reservoir of biodiversity and, through its role in regulating the climate, is even critical to the well-being of the planet itself. The ocean and coastal regions provide numerous and invaluable ecosystem services ranging from carbon storage, oxygen generation, protection from storms and of course food. But in this age of converging crises – the health and economic impacts of the pandemic, and the impending environmental emergencies of climate change and biodiversity loss – the ocean is increasingly vulnerable.

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Building back bluer

by Kate Kooka (Ocean Advisor) and Anthony Cox (Deputy Director), Environment Directorate

Shutterstock.com / Song_about_summer

“We must ‘Build Back Bluer’”, urged Kenya’s Ambassador Macharia Kamau (Principal Secretary in the Kenyan Ministry of Foreign Affairs) at a Virtual Ocean Dialogue on the COVID-19 crisis, regional peace and security, and the blue economy. As countries are in the process of rebuilding their economies, this was a clever play on the phrase “Build Back Better” that has caught on as COVID-19 continues to wreak health and economic devastation around the world. The phrase originates from the world of disaster recovery management where it is used to describe the physical re-building of communities, cities and regions after earthquakes, hurricanes and tsunamis. But as governments and organisations begin to think about a post-COVID world (which still appears some way off for many countries), there is a growing call for a green recovery and to “Build Back Better”. The OECD has added its voice to those calling for a sustainable, resilient recovery in a recent policy brief on that very topic.

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The challenges of greening urban mobility in the post-pandemic era

By Katherine Farrow, Ioannis Tikoudis and Walid Oueslati, OECD Environment Directorate

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Shutterstock.com / Max Zvonarev

In the aftermath of the pandemic, policy makers face unique challenges in managing urban transport, but also an opportunity to steer urban mobility towards a more sustainable, resilient future.

The Covid-19 crisis has caused an unprecedented shock in travel demand, raising questions about the future of transport in the near and long term. Lockdown measures have brought transport activity to a grinding halt in urban areas worldwide in recent months. The dramatic improvements in air quality that ensued highlight the stark trade-offs between transport activity and the environment.

As the first wave of the outbreak starts to recede in a number of countries, two important questions emerge. First, will urban mobility return to pre-outbreak patterns of use, or will the shock have a more profound, long-term impact on how people travel? Second, how should governments respond to these changes in order to continue steering urban transport systems towards sustainability?

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COVID-19 and the looming plastics pandemic

By Frithjof Laubinger and Nikhil Varghese, Circular Economy and Waste Team, OECD Environment Directorate

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Image credit: Shutterstock / DeawSS

During the height of the COVID-19 outbreak in Wuhan, the city was dealing with more than 240 tons of medical waste a day, a six-fold increase over the amount being treated before the outbreak. Improperly discarded single-use facemasks and gloves have already been found at beaches of remote islands and floating at sea, adding to the already chronic problem of marine plastic litter and revealing the shocking speed at which the recent shift in human behaviour impacts the environment.

Responses to the health crisis led to a rise in plastics consumption and waste generation in a number of sectors – well beyond the medical sector – and put pressure on the environmentally sound handling, treatment and disposal of this waste. At the same time, as more household plastic waste was being generated, less was recycled. The risk of recycling workers contracting the virus prompted several municipalities to temporarily put a halt on separate collection and sorting, directing more waste to incineration or landfills. Read More

Towards a Clean Energy Transition in Viet Nam

By Aayush Tandon, Policy Analyst, OECD Environment Directorate

Vietnam Blog
Image credit: Shutterstock / Nguyen Quang Ngoc

Since the passage of the Paris Agreement and the adoption of the SDGs, clean energy has fast become a priority item on the global agenda. The push for a green recovery following the COVID-19 pandemic has reinforced this trend. As we enter the ‘decade for delivery’, transitioning to a low-carbon energy system will be critical to achieve climate and development objectives globally. Viet Nam is no exception.

Since rolling out the Doi Moi reforms, Viet Nam has made remarkable progress in the electricity sector. Over the past 3 decades, the country has steadily modernised its electricity infrastructure, with virtually non-existent commercial losses and technical system losses of only 7.5%. However, to sustain current levels of economic growth, Viet Nam will have to nearly double its installed capacity in the next decade—a significant challenge. Read More

Time for Nature: Is a global public health crisis what it takes to protect the planet’s biodiversity?

By Edward Perry, Policy Analyst, OECD Environment Directorate

WED Blog shutterstock_1703194387_low_nwm
Image Credit: Shutterstock / Lois GoBe

Today is World Environment Day. As countries across the globe are still reeling from the human, social and economic cost of COVID-19, dedicating today to nature might seem ill-timed. Let me tell you – it’s not.

Our disruption of ecosystems and exploitation of wildlife may well be why we are in this mess. To reduce the risk of future crises, COVID-19 recovery packages must recognise the importance of nature for human health, well-being and the economy. This year’s theme for World Environment Day – Time for Nature – could not be more appropriate.

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Déjà vu all over again …. Or is it? Learning from the past to green the COVID-19 recovery

By Shardul Agrawala, Head of the Environment and Economy Integration Division, OECD Environment

Image Credit: Shutterstock / Aleksandar Mijatovic

As governments rush to commit vast sums of money to respond to the unprecedented COVID-19 crisis, there are growing calls to “green” these recovery packages.

In a way, it’s like déjà vu all over again, to borrow a phrase from baseball legend Yogi Berra, reminiscent of similar calls in the wake of the global financial crisis of 2007-08.

At that time, over half a trillion US dollars [1] were committed worldwide to the green stimulus. These investments were directed at activities such as the deployment of renewables, improving energy efficiency of buildings, removing inefficient cars from the road, investing in clean technology R&D, and improving infrastructure for mass transit. Many of the same investments are now being called for as part of the COVID-19 fiscal response.

What can we learn about the impact of green stimulus packages from over a decade ago? A great deal in fact [2].

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Why is there a shortage of disinfectants during the COVID-19 crisis?

By Bob Diderich and Sylvie Poret, OECD Environment Directorate

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Image credit: Shutterstock

I’m sure many of you recently had the same experience I had. I went to the pharmacy in the early days of the pandemic and, before I opened my mouth, the pharmacist said “we’re out of masks and hydro-alcoholic gel”.  I had a prescription for allergy medicine, which I was fortunately able to get filled.

Indeed, pharmacies and stores across the world have been raided and it has been quite difficult to buy hand sanitisers for some time now. So what causes this shortage? It should be relatively easy to produce these hydro-alcoholic gels and flood the market.

Of course there is the physical production process and the difficulties to secure enough raw material. But alcohol is a rather common product. Many of you may have seen the news of vodka producers donating distilled alcohol to producers of disinfectants.

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