According to an OECD report unveiled at an informal Petersberg ministerial dialogue on the climate (see EUROPE 11793) that took place in Berlin on Tuesday 23 May, integrating the agendas for growth and the climate, rather than dealing with the climate separately, could add a percentage point of economic growth in G20 countries by 2021 and up to 2.8% by 2050.
Acting as a genuine plea for the integration of climate measures into economic policy, the report shows that if the economic benefits linked to preventing the impacts of climate change (such as the damage caused by coastal floods or storms) were included, the net rise in GDP by 2050 would be nearly 5%.
According to the OECD, the G20 countries (which together represent 85% of global GDP and 80% of CO² emissions) should adopt a combination of policies favouring growth and the environment in developing their strategies for growth and development – in other words, they should combine climate policies (like carbon pricing) and economic support policies to boost growth centred on investment in low emission infrastructure that is resilient to climate change.
The report recommends that the G20 countries: - strengthen their mitigation policies (especially through carbon pricing, the reform of subsidies for fossil fuels, smart regulations and the use of public procurement to boost low-carbon innovation); - accelerate their efforts to mobilise private investment in low emission and climate-resilient infrastructure through increased greening of the financial system; - involve local authorities, employers and workers in the transition of activities and communities exposed to climate change, to deliver a just transition for workers.
The OECD believes that investment in infrastructure over the next 10 to 15 years will determine whether the Paris Agreement objective can be achieved, and that any delay in action will be costly. The report thus says that taking action only after 2025 could lead to an average production loss of 2% for the G20 economies.
The report notes that there is chronic under-investment in infrastructure in most G20 countries, even when infrastructure is an engine for growth. (Original version in French by Aminata Niang)