Climate-Relevant Policy Assessment in the OECD and IEA

Jan Corfee Morlot, OECDGlobal and Structural Policy Division, Environmentemail: jan.corfee-morlot@oecd.org

Overview of current work1. Outlooks and policy frameworks2. National policy reviews3. Sectoral policy evaluations 4. Analysis of policy instruments5. Beyond the OECD6. Databases and indicators7. Conclusions

1. Outlooks and policy frameworksassess climate policies in the context of environment, energy and sustainable development policiesEnvironment Outlook:Aggressive policies are required for significant improvements in efficiency and penetration of new technologies.

Some air pollutants (lead, CFCs, NOx, SOx)

Forest coverage in OECD regionsWater useSurface water qualityHazardous waste & toxic emissions from industryEnergy production & useForest quality in OECD regions

Agricultural pollutionOver-fishingGreenhouse gas emissionsMotor vehicle & aviation air pollutionBiodiversity & Tropical forest coverageChemicals in the EnvironmentEnvironmental issues: traffic lights

Ancillary Benefits or Multiple Benefits of GHG Mitigation

1. Outlooks & policy frameworksWorld Energy Outlook (2002):Reference Scenario: Global energy-related CO2 emissions grow by 70% over the period 2000-2030Alternative scenario: in OECD countries, energy-related CO2 emissions are stabilised only towards the end of the period

GDP, TPES, CO2 increase relatively rapidly Carbon intensity declines slowly, levels off recent yrs Energy intensity steady decline Key Factors Affecting Energy-Related Carbon Emissions in OECD, 1970-2020 Source: IEA and OECD

TPES

Energy Intensity

Carbon Intensity

GDP

CO2 Emissions

2. National policy reviewsEnvironment Performance Reviews (EPRs):peer reviews of OECD Member Countries progress towards achieving domestic environmental objectives and international commitments (similar to UNFCCC reviews)Includes systematic review of climate policies4 countries per year; second cycle started in 2001

2. National policy reviews (cont)Special sustainable development chapters of OECD Economic Surveysfocus on cost-effectiveness of policiesclimate as selected issue for reviewIEA Country Reviews6 IEA Member countries reviewed annuallyincludes review of climate/energy policies and trends (energy/carbon intensity)

3. Sectoral policy assessmentEnergy policy (IEA): renewables, nuclear, gas, coal, electricitySustainable construction and buildingsEnvironmentally sustainable transportSustainable consumption and wasteIndustry/manufacturingAgriculture

4. Policy instruments: making markets work for SD and ClimatePhase out (environmentally harmful) subsidies Make greater use of environmental taxes; remove distortionary tax provisionsSet up tradable permits systems for GHG emission

Phasing-out subsidiesEnvironmentally harmful subsidies in OECD countries are estimated at $ 400 billion in 2000, 1.9 % of GDP. Source: OECD (2001)Non-OECD countries: $ 340 billion, 6.3 % of GDP (1994-1999 average). Source: van Beers and de Moor (2001)

Phasing-out subsidies (cont)Agriculture: 310 billion $, 1.3% OECD GDP (2001)Induce intensive farming, conversion of forest and wetlands into agricultural land, overuse of fertilisers and pesticides, over production (EU CAP)Energy production: 20-30 billion $ p.a. (of which 1/3 to support coal production)

Implementing green tax reformsEnvironmentally related taxes in OECD countries:7 % of total tax revenue (OECD average)2.5 % of GDP (range 1- 4.5%)Price elasticities, including cross-price elasticities, high enough to justify broader use of taxes

Revenues raised on environmentally related tax-bases21 OECD Member countries, 1995

Revenue from tax-bases, Fr Char

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Figure 3: Revenues from environmentally related tax-bases in 21 OECD Member countries in 1995.

Revenue from tax-bases, French

Emissions to air687.2

Ozone depleting substances617.9

Effluents to water1,247.5

Non-point water pollution105.8

Waste management2,013.9

Unleaded petrol132,278.7

Leaded petrol23,989.3

Diesel72,549.6

Other transport energy5,136.7

Light fuel oil8,519.8

Heavy fuel oil589.8

Natural gas6,773.2

Coal377.5

Coke0.8

Biofuels570.7

Other fuels, stationary use581.3

Electricity consumption11,465.2

Electricity production385.7

Motor vehicles, one-off24,333.8

Motor vehicles, recurrent70,944.0

Pai-chart ppt

64.4246349443

26.2369043269

4.7950755259

3.2634308723

0.5479004477

0.732053883

Motor vehicles26%

Heating- and process fuels5%

Other9%

Other 1%

Waste 1%

Pai-chart

64.4246349443

26.2369043269

4.7950755259

3.2634308723

0.5479004477

0.732053883

Share of different tax-bases in total revenue raised by environmentally related taxes21 OECD Member countries, 1995

Heating- and process fuels5%

Other 1%

Waste 1%

Sheet1

Tax-basesAustriaBelgiumCzech repDenmarkFinlandGermanyHungaryIcelandIrelandItalyJapanMexicoNetherlandsNew ZealandNorwayPolandPortugalSpainSwedenSwitzerlandUKUSATotalTaxbasesShare of total

Measured or estimated emissions to air43.8585.52.513.941.5687.2Emissions to air687.20.1892412788

Ozone depleting substances1.9616.0617.9Ozone depleting substances617.90.1701483193

Measured or estimated effluents to water24.62.41,220.41,247.5Effluents to water1,247.50.3435271765

Certain non-point sources of water pollution5.024.929.446.5105.8Non-point water pollution105.80.0291371084

Waste management28.30.318.1239.736.28.9370.2130.842.31,115.01,989.7Waste management1,989.70.5479004477

Energy products3,134.24,137.21,388.83,282.82,413.449,526.21,191.695.41,058.031,869.448,160.82,699.76,861.8673.93,304.80.02,910.410,194.35,558.43,633.726,103.755,020.0263,218.4Unleaded petrol132,278.736.4259408676

- Energy products used for transport purposes2,893.74,044.21,213.41,344.22,120.541,000.71,114.195.41,041.824,173.544,556.72,699.75,610.2612.91,996.40.02,866.910,194.33,970.03,615.123,770.855,020.0233,954.4Leaded petrol23,989.36.6059992213

- Unleaded petrol1,618.41,438.3310.21,335.11,508.626,029.3404.183.0341.75,760.228,992.11,061.53,113.3288.71,443.7501.23,970.02,964.82,395.19,069.439,650.0132,278.7Diesel72,549.619.9781846573

- Leaded petrol781.0385.21,642.7337.312.4288.39,168.00.0808.6684.9311.0125.51,017.11,479.6520.36,427.423,989.3Other transport energy5,136.71.4145101981

- Diesel1,227.01,824.9515.7611.913,248.4372.7410.78,912.614,161.2829.61,749.713.1427.21,247.84,655.41,005.2683.67,153.013,500.072,549.6Light fuel oil8,519.82.3461162505

- Other energy products for transport purposes48.32.49.180.31.1332.71,403.462.3100.889.316.11,121.01,870.05,136.7Heavy fuel oil589.80.1624017642

- Energy products used for stationary purposes240.693.0175.41,938.6292.98,525.577.50.016.27,695.83,604.20.01,251.661.01,308.40.043.50.01,588.418.62,332.90.029,264.0Natural gas6,773.21.8651583197

- Light fuel oil200.7173.11,032.7116.62,167.577.516.21,847.80.06.238.1207.143.5500.513.52,0798,519.8Coal377.50.1039448254

- Heavy fuel oil39.914.047.985.8313.70.06.281.30.8589.8Coke0.80.0002202699

- Natural gas78.930.21,964.43,427.40.0560.419.7403.930.83.4254.06,773.2Biofuels570.70.1571503474

- Coal112.681.70.0124.53.30.654.7377.5Other fuels, stationary use581.30.1600837487

- Coke0.00.80.8Electricity consumption11,465.23.1572110956

- Biofuels16.50.0554.2570.7Electricity production385.70.10621977678.0585063982

- Other fuels for stationary use2.462.8498.516.80.8581.3Motor vehicles, one-off24,333.86.7008640222

- Electricity consumption793.34,244.91,608.43,604.1456.2758.311,465.2Motor vehicles, recurrent70,944.019.5360403046

- Electricity production0.0239.8145.9385.7

Transport1,624.31,595.6148.13,612.51,007.39,634.3164.638.2858.33,975.635,604.9584.05,579.1348.41,704.80.0997.31,301.8813.31,388.36,237.018,060.095,277.8

- Motor vehicles, one-off import or sales taxes470.41,228.10.02,657.1614.898.738.2462.83,178.26,495.9104.12,453.31,195.7881.11,301.8245.6187.02,721.024,333.8

- Registration or use of motor vehicles, recurrent1,154.0367.5148.1955.4392.59,634.365.9395.5797.529,109.1479.83,125.8348.4509.1116.2567.61,201.46,237.015,339.070,944.0Vehicle related:324,095.589.247029073

TOTAL4,786.85,733.01,649.57,725.53,456.959,160.51,361.1142.51,916.336,215.283,765.83,283.613,785.81,022.35,095.20.03,907.711,496.16,459.75,022.032,340.774,811.0363,144.3

Number of taxes72110215441654947

8193683462958091479821318782287471812554620

Transport fuels233,954.464.4

Motor vehicles95,277.826.2

Heating- and process fuels17,413.04.8

Electricity11,851.03.3

Waste1,989.70.5

Other2,658.40.7

Sheet1

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Revenues from environmentally-related tax-bases in 21 OECD Member countries, in 1995

Revenue from tax-bases, in US$

Tax-basesAustriaBelgiumCzech repDenmarkFinlandGermanyHungaryIcelandIrelandItalyJapanMexicoNetherlandsNew ZealandNorwayPolandPortugalSpainSwedenSwitzerlandUKUSATotalTaxbasesShare of total

Measured or estimated emissions to air43.8585.52.513.941.5687.2Emissions to air687.20.189228658

Ozone depleting substances1.9616.0617.9Ozone depleting substances617.90.1701369719

Measured or estimated effluents to water24.62.41,220.41,247.5Effluents to water1,247.50.3435042662

Certain non-point sources of water pollution5.024.929.446.5105.8Non-point water pollution105.80.0291351653

Waste management28.30.342.3239.736.28.9370.2130.842.31,115.02,013.9Waste management2,013.90.5545330424

Energy products3,134.24,137.21,388.83,282.82,413.449,526.21,191.695.41,058.031,869.448,160.82,699.76,861.8673.93,304.80.02,910.410,194.35,558.43,633.726,103.755,020.0263,218.4Unleaded petrol132,278.736.4235115724

- Energy products used for transport purposes2,893.74,044.21,213.41,344.22,120.541,000.71,114.195.41,041.824,173.544,556.72,699.75,610.2612.91,996.40.02,866.910,194.33,970.03,615.123,770.855,020.0233,954.4Leaded petrol23,989.36.6055586583

- Unleaded petrol1,618.41,438.3310.21,335.11,508.626,029.3404.183.0341.75,760.228,992.11,061.53,113.3288.71,443.7501.23,970.02,964.82,395.19,069.439,650.0132,278.7Diesel72,549.619.9768522852

- Leaded petrol781.0385.21,642.7337.312.4288.39,168.00.0808.6684.9311.0125.51,017.11,479.6520.36,427.423,989.3Other transport energy5,136.71.4144158625

- Diesel1,227.01,824.9515.7611.913,248.4372.7410.78,912.614,161.2829.61,749.713.1427.21,247.84,655.41,005.2683.67,153.013,500.072,549.6Light fuel oil8,519.82.3459597848

- Other energy products for transport purposes48.32.49.180.31.1332.71,403.462.3100.889.316.11,121.01,870.05,136.7Heavy fuel oil589.80.1623909335

- Energy products used for stationary purposes240.693.0175.41,938.6292.98,525.577.50.016.27,695.83,604.20.01,251.661.01,308.40.043.50.01,588.418.62,332.90.029,264.0Natural gas6,773.21.8650339298

- Light fuel oil200.7173.11,032.7116.62,167.577.516.21,847.80.06.238.1207.143.5500.513.52,0798,519.8Coal377.50.1039378932

- Heavy fuel oil39.914.047.985.8313.70.06.281.30.8589.8Coke0.80.0002202552

- Natural gas78.930.21,964.43,427.40.0560.419.7403.930.83.4254.06,773.2Biofuels570.70.1571398668

- Coal112.681.70.0124.53.30.654.7377.5Other fuels, stationary use581.30.1600730725

- Coke0.00.80.8Electricity consumption11,465.23.157000537

- Biofuels16.50.0554.2570.7Electricity production385.70.10621269278.0579689655

- Other fuels for stationary use2.462.8498.516.80.8581.3Motor vehicles, one-off24,333.86.7004171326

- Electricity consumption793.34,244.91,608.43,604.1456.2758.311,465.2Motor vehicles, recurrent70,944.019.5347374197

- Electricity production0.0239.8145.9385.7

Transport1,624.31,595.6148.13,612.51,007.39,634.3164.638.2858.33,975.635,604.9584.05,579.1348.41,704.80.0997.31,301.8813.31,388.36,237.018,060.095,277.8

- Motor vehicles, one-off import or sales taxes470.41,228.10.02,657.1614.898.738.2462.83,178.26,495.9104.12,453.31,195.7881.11,301.8245.6187.02,721.024,333.8

- Registration or use of motor vehicles, recurrent1,154.0367.5148.1955.4392.59,634.365.9395.5797.529,109.1479.83,125.8348.4509.1116.2567.61,201.46,237.015,339.070,944.0Vehicle related:324,095.589.2410770682

TOTAL4,786.85,733.01,649.57,725.53,456.959,160.51,361.1142.51,916.336,215.283,765.83,283.613,785.81,022.35,095.20.03,907.711,496.16,459.75,022.032,340.774,811.0363,168.5

Number of taxes72110215441654947

8193683462958091479821318782287471812554620

NAB 5.11.98: Own estimates, based on the article Environmental taxes in the UK, and assumptions of stable trends regarding different product shares.

NAB: Revenue from the CO2 tax. Should be split between the different energy sources.

NAB 5.11.98: Part of light fuel

NAB 5.11.98: Part of light fuel

NAB 5.11.98: Included above

NAB 5.11.98: Included above

Revenue from tax-bases, in US$

0

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Million US dollars

Revenues from environmentally-related tax-bases in 21 OECD Member countries, in 1995

Revenues WPEEPI paper chart

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

NAB 5.11.98: Included above

NAB 5.11.98: Included above

NAB 5.11.98: Part of light fuel

NAB 5.11.98: Part of light fuel

NAB 5.11.98: Own estimates, based on the article Environmental taxes in the UK, and assumptions of stable trends regarding different product shares.

NAB: Revenue from the CO2 tax. Should be split between the different energy sources.

Nils Axel Braathen:Last updated14.10.99. Corrected small mistakes regarding the Netherlands and New Zealand.

Million US dollars

Tax-base revenue chart

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Figure 3: Revenues from environmentally related tax-bases in 21 OECD Member countries in 1995.

Powerpoint chart

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Chart without heading

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Sheet4

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Page &P

Sheet4

687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

Figure 2: Revenues from environmentally-related tax-bases in 18 OECD Member countries, in 1995

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687.218866698

617.883877774

1247.499269049

105.8097407652

2013.8892966426

132278.718286483

23989.3078719241

72549.6335089379

5136.7127809067

8519.7868106154

589.7527067344

6773.2156276924

377.469681011

0.7998974944

570.6824870535

581.3349659732

11465.2312924138

385.7310361675

24333.8039638856

70944.0116121223

Million US dollars

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Removing distortionary tax provisionsTax rate variations or exemptions such as: under-taxing transport diesel fuelunder-taxing coaltax free aviation fuel (and airlines tickets)almost complete energy tax exemption to the industrial sectorTax exemptions for specific activities: more than 1000 recorded in the OECD tax database.

OECD AssessmentsEnvironmentally-related taxeslooks at obstacles to a broader use of tax instruments, including competitiveness issues (e.g. in the steel sector)Environmentally-harmful subsidiescomprehensive review and quantification in different sectors according to their environmental harmVA and emission trading in the policy mixNew work on national policy instruments

GHG trading systemsLinking national systemsBenefits to linking: it broadens abatement opportunities, increases market liquidity, reduces costsFew technical barriers to linkingWithout design solutions, linking can reduce environmental performance of systems Some design solutions required to remove barriers, though these will involve additional administrative costs

New work on emission trading OECD and IEA work including work of the Annex I Expert Groupdevelop strategic guidelines on good practice and ex-post evaluationsshare information on (and analysis of) recent developments of domestic trading policiesstudy issues related to linkages between domestic systemsassess transition issues: Kyoto/global markets

5. Beyond the OECDWork on PAMs in the Annex I Expert Group: Assessment of PAMs by sector (energy supply, transport, industry workshops)Review technology-related PAMsStrengthening institutions in EIT countriesImplementation of Convention & ProtocolEnforcement of environmental policiesEnvironmental finance mechanisms

5. Beyond the OECD (cont)Development Co-operation: Integrating the Rio ConventionsJt. Project on Development and Climate:How to enhance adaptation through development plans and development co-operation projectsBenefits of climate policies a framework to assess long term direct and ancillary benefitsTechnology Co-operation : CTI and IEA Implementing AgreementsAdverse effects of changes in fossil fuel export markets (IEA)

6. Databases and IndicatorsOECD/IEA/EU database on environmentally-related taxes available at www.oecd.org/env/tax-databaseIEA database on energy-related climate policies: multi-year data allow for some trend analysis

Dealing With Climate Change: Policies and Measures in IEA Member CountriesSince 1999, IEA has continually collected, reviewed and classified information on energy-related greenhouse gas mitigation measures.

With over 800 records, the Dealing with Climate Change project is one of the most extensive sources of policy information on the subject

Policy Sector by Country, 1999-2001

Policies by sector

Policies taken by sector

AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEuropean UnionFinlandFranceGermanyGreeceHungaryIrelandItalyJapanLuxembourgNetherlandsNew ZealandNorwayPortugalSpainSwedenSwitzerlandTurkeyUnited KingdomUnited StatesKoreaNorth AmericaEuropePacificWorld

1999Energy Production7132422157353545381432262110na3427%7226%1323%11926%199920002001

Industry912271214324363736133127216na3326%6022%1730%11024%

Transport713241143328353556147138236na3024%7628%1323%11926%

Buildings4122011249543538371220282110na3024%6724%1323%11024%

2741095568162212211221132514274131549298632na127100%275100%56100%458100%

2000Energy Production615103641650131513341341127na1734%5627%1429%8728%

Industry30352331440222513321231135na1020%4321%1123%6421%

Transport30361652532125424323141129na1530%5526%1021%8026%

Buildings30553341730144714331231233na816%5526%1327%7625%

TOTAL151162691816522152511122151412116814451024na50100%209100%48100%307100%

2001Energy Production23665343520022517041211251111740%5830%830%8332%

Industry2346312363001060503022213501126%4423%830%6324%

Transport213132624200106160302221250614%4322%830%5722%

Buildings135131117401312051502111370819%4825%415%6023%

TOTAL71018141471392211017319023115186651328142100%193100%27100%263100%

AmericaEuropePacificWorld

1999 - 2000 - 2001Energy Production31%33%32%30%36%35%24%30%27%26%22%22%26%25%23%26%28%24%31%23%35%24%21%28%28%33%6831%18627%3527%28928%

Industry29%27%20%28%21%19%16%27%20%24%17%28%23%18%28%21%22%24%21%18%25%24%26%22%24%19%5425%14722%3627%23723%

Transport24%13%20%23%18%29%41%23%18%18%43%22%21%29%23%42%25%24%23%45%20%31%28%22%24%24%5123%17426%3124%25625%

Buildings16%27%27%19%25%16%19%20%35%32%17%28%31%29%26%21%25%29%26%14%20%21%26%28%24%24%4621%17025%3023%24624%

TOTAL100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%111%100%100%100%100%100%100%100%100%100%100%219100%677100%131101%1028100%

Policy by Types

Policy taken by TypesFiscalTradable PermitsRegulatory InstrumentsVoluntary AgreementsRD&DPolicy Process and Outreach

AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEuropean UnionFinlandFranceGermanyGreeceHungaryIrelandItalyJapanLuxembourgNetherlandsNew ZealandNorwayPortugalSpainSwedenSwitzerlandTurkeyUnited KingdomUnited StatesKoreaNorth AmericaEuropePacificIEAAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacific

199925%30%22%9%8%11%12%27%20%4%7%4%24%9%11%27%20%33%

1999Fiscal801121324118625347904601504162825%8230%1222%12227%200030%25%25%2%11%9%11%16%18%7%6%11%33%7%11%17%35%25%

Tradable Permits30280300110011104230230022109%238%611%399%200120%26%13%0%13%3%17%22%19%8%6%16%14%5%3%41%27%45%

Regulatory Instruments70244214395210243100133070491312%7527%1120%9922%

Voluntary Agreements0013004021000420300100200144%187%24%245%

RD&D10210001231102151203112010172724%249%611%5713%

Policy Process & Outreach111620115143413165612210313113127%5420%1833%10323%

301145769261030191341112221634313137617213560113100%276100%55100%444100%

2000Fiscal503712316321166010111640391630%4625%1125%7326%

Tradable Permits2021021201000010412003003012%2011%49%259%

Regulatory Instruments31304040130101101420111246611%3016%818%4416%

Voluntary Agreements2021002002000020110002200347%116%511%207%

RD&D2007011010002130000111012111833%127%511%3512%

Policy Process & Outreach31450583541151534332150174917%6435%1125%8430%Scale for chart 3

17214215101961313338918311984418741933054100%183100%44100%281100%199920002001

2001Fiscal2227026072003121602104208501220%4926%413%6524%

Tradable Permits11401212010101005020010020000%2413%13%259%

Regulatory Instruments3131307054000320311011125901017%4022%619%5620%

Voluntary Agreements21230000020010200100032012058%126%516%228%

RD&D000400401100401000000000040814%105%13%197%

Policy Process & Outreach42915247331132171123021122912441%5027%1445%8832%

12720306825516111410614215481310641829159100%185100%31100%275100%

IEA North AmericaIEA EuropeIEA PacificIEA

1999 - 2000 - 2001Fiscal25%20%13%24%12%26%16%24%41%30%47%27%31%37%22%38%27%0%24%44%7%32%37%0%30%25%0%5625%17727%2721%26026%

Tradable Permits10%10%17%8%6%26%3%19%2%7%0%9%3%7%4%0%22%19%24%0%14%21%0%0%14%2%0%115%6710%118%899%

Regulatory Instruments22%20%17%5%65%7%36%14%25%28%12%18%0%22%13%14%23%31%14%17%36%6%30%40%26%20%0%2913%14523%2519%19920%

Voluntary Agreements7%10%10%6%0%0%9%0%3%12%0%0%3%15%11%0%7%13%0%6%0%15%20%0%2%5%0%136%416%129%667%

RD&D5%0%4%19%0%4%9%10%8%5%6%0%28%7%17%5%3%0%10%11%14%9%0%20%4%27%0%5323%467%129%11111%

Policy Process & Outreach31%40%40%37%18%37%29%33%20%19%35%45%34%11%33%43%18%38%28%22%29%18%13%40%24%20%100%6428%16826%4333%27528%

100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%226100%644100%130100%1000100%

Fig 2-sector by country

0.3061224490.28571428570.24489795920.1632653061

0.33333333330.26666666670.13333333330.2666666667

0.31818181820.20454545450.20454545450.2727272727

0.29629629630.28148148150.22962962960.1925925926

0.35714285710.21428571430.17857142860.25

0.35483870970.19354838710.29032258060.1612903226

0.24324324320.16216216220.40540540540.1891891892

0.30.26666666670.23333333330.2

0.27272727270.1969696970.18181818180.3484848485

0.26315789470.23684210530.18421052630.3157894737

0.21739130430.17391304350.43478260870.1739130435

0.22222222220.27777777780.22222222220.2777777778

0.25641025640.23076923080.20512820510.3076923077

0.250.17857142860.28571428570.2857142857

0.23076923080.27692307690.23076923080.2615384615

0.26315789470.21052631580.42105263160.2105263158

0.281250.218750.250.25

0.23529411760.23529411760.23529411760.2941176471

0.30769230770.20512820510.23076923080.2564102564

0.22727272730.18181818180.45454545450.1363636364

0.350.250.20.2

0.24137931030.24137931030.31034482760.2068965517

0.20512820510.25641025640.28205128210.2564102564

0.27777777780.22222222220.22222222220.2777777778

0.2758620690.24137931030.24137931030.2413793103

0.33333333330.19047619050.23809523810.2380952381

Energy Production

Industry

Transport

Buildings

Fig 3 - type by country

0.25423728810.10169491530.22033898310.06779661020.05084745760.3050847458

0.20.10.20.100.4

0.1250.16666666670.16666666670.10416666670.04166666670.3958333333

0.24074074070.08333333330.04629629630.06481481480.19444444440.3703703704

0.11764705880.05882352940.6470588235000.1764705882

0.25925925930.25925925930.074074074100.0370370370.3703703704

0.15714285710.02857142860.35714285710.08571428570.08571428570.2857142857

0.23809523810.19047619050.142857142900.09523809520.3333333333

0.4067796610.01694915250.25423728810.03389830510.08474576270.2033898305

0.30232558140.06976744190.27906976740.11627906980.04651162790.1860465116

0.470588235300.117647058800.05882352940.3529411765

0.27272727270.09090909090.1818181818000.4545454545

0.31034482760.034482758600.03448275860.2758620690.3448275862

0.37037037040.07407407410.22222222220.14814814810.07407407410.1111111111

0.22222222220.0370370370.12962962960.11111111110.16666666670.3333333333

0.38095238100.142857142900.04761904760.4285714286

0.26666666670.21666666670.23333333330.06666666670.03333333330.1833333333

00.18750.31250.12500.375

0.24137931030.24137931030.137931034500.10344827590.275862069

0.444444444400.16666666670.05555555560.11111111110.2222222222

0.07142857140.14285714290.357142857100.14285714290.2857142857

0.32352941180.20588235290.05882352940.14705882350.08823529410.1764705882

0.366666666700.30.200.1333333333

000.400.20.4

0.30.140.260.020.040.24

0.25423728810.01694915250.20338983050.05084745760.27118644070.2033898305

Fiscal

Tradable Permits

Regulatory Instruments

Voluntary Agreements

RD&D

Policy Process & Outreach

Figure 3: Policy Type by Country - 1999 to 2001

Fig 4 - type by region

0.24778761060.04867256640.12831858410.05752212390.23451327430.2831858407

0.27484472050.10403726710.22515527950.06366459630.07142857140.2608695652

0.20769230770.08461538460.19230769230.09230769230.09230769230.3307692308

Fiscal

Tradable Permits

Regulatory Instruments

Voluntary Agreements

RD&D

Policy Process and Outreach

Region

Share of all PAMs

Figure 4: Policy type by region - 1999 to 2001

Fig 5- VA region evo

0.03539823010.06521739130.0363636364

0.07407407410.06010928960.1136363636

0.08474576270.06486486490.1612903226

North America

Europe

Pacific

Year

Share (%)

Figure 5: Change in the share of voluntary agreements in total of new policies by macro-region

Fig 6 - TP region evo

0.08849557520.08333333330.1090909091

0.01851851850.10928961750.0909090909

00.12972972970.0322580645

North America

Europe

Pacific

Year

Share (%)

Figure 6: Change in the share of tradable permits in total of new policies by macro-region

Policy Type by Region, 1999-2001

Policies by sector

Policies taken by sector

AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEuropean UnionFinlandFranceGermanyGreeceHungaryIrelandItalyJapanLuxembourgNetherlandsNew ZealandNorwayPortugalSpainSwedenSwitzerlandTurkeyUnited KingdomUnited StatesKoreaNorth AmericaEuropePacificWorld

1999Energy Production7132422157353545381432262110na3427%7226%1323%11926%199920002001

Industry912271214324363736133127216na3326%6022%1730%11024%

Transport713241143328353556147138236na3024%7628%1323%11926%

Buildings4122011249543538371220282110na3024%6724%1323%11024%

2741095568162212211221132514274131549298632na127100%275100%56100%458100%

2000Energy Production615103641650131513341341127na1734%5627%1429%8728%

Industry30352331440222513321231135na1020%4321%1123%6421%

Transport30361652532125424323141129na1530%5526%1021%8026%

Buildings30553341730144714331231233na816%5526%1327%7625%

TOTAL151162691816522152511122151412116814451024na50100%209100%48100%307100%

2001Energy Production23665343520022517041211251111740%5830%830%8332%

Industry2346312363001060503022213501126%4423%830%6324%

Transport213132624200106160302221250614%4322%830%5722%

Buildings135131117401312051502111370819%4825%415%6023%

TOTAL71018141471392211017319023115186651328142100%193100%27100%263100%

AmericaEuropePacificWorld

1999 - 2000 - 2001Energy Production31%33%32%30%36%35%24%30%27%26%22%22%26%25%23%26%28%24%31%23%35%24%21%28%28%33%6831%18627%3527%28928%

Industry29%27%20%28%21%19%16%27%20%24%17%28%23%18%28%21%22%24%21%18%25%24%26%22%24%19%5425%14722%3627%23723%

Transport24%13%20%23%18%29%41%23%18%18%43%22%21%29%23%42%25%24%23%45%20%31%28%22%24%24%5123%17426%3124%25625%

Buildings16%27%27%19%25%16%19%20%35%32%17%28%31%29%26%21%25%29%26%14%20%21%26%28%24%24%4621%17025%3023%24624%

TOTAL100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%111%100%100%100%100%100%100%100%100%100%100%219100%677100%131101%1028100%

Policy by Types

Policy taken by TypesFiscalTradable PermitsRegulatory InstrumentsVoluntary AgreementsRD&DPolicy Process and Outreach

AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEuropean UnionFinlandFranceGermanyGreeceHungaryIrelandItalyJapanLuxembourgNetherlandsNew ZealandNorwayPortugalSpainSwedenSwitzerlandTurkeyUnited KingdomUnited StatesKoreaNorth AmericaEuropePacificIEAAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacificAmericaEuropePacific

199925%30%22%9%8%11%12%27%20%4%7%4%24%9%11%27%20%33%

1999Fiscal801121324118625347904601504162825%8230%1222%12227%200030%25%25%2%11%9%11%16%18%7%6%11%33%7%11%17%35%25%

Tradable Permits30280300110011104230230022109%238%611%399%200120%26%13%0%13%3%17%22%19%8%6%16%14%5%3%41%27%45%

Regulatory Instruments70244214395210243100133070491312%7527%1120%9922%

Voluntary Agreements0013004021000420300100200144%187%24%245%

RD&D10210001231102151203112010172724%249%611%5713%

Policy Process & Outreach111620115143413165612210313113127%5420%1833%10323%

301145769261030191341112221634313137617213560113100%276100%55100%444100%

2000Fiscal503712316321166010111640391630%4625%1125%7326%

Tradable Permits2021021201000010412003003012%2011%49%259%

Regulatory Instruments31304040130101101420111246611%3016%818%4416%

Voluntary Agreements2021002002000020110002200347%116%511%207%

RD&D2007011010002130000111012111833%127%511%3512%

Policy Process & Outreach31450583541151534332150174917%6435%1125%8430%Scale for chart 3

17214215101961313338918311984418741933054100%183100%44100%281100%199920002001

2001Fiscal2227026072003121602104208501220%4926%413%6524%

Tradable Permits11401212010101005020010020000%2413%13%259%

Regulatory Instruments3131307054000320311011125901017%4022%619%5620%

Voluntary Agreements21230000020010200100032012058%126%516%228%

RD&D000400401100401000000000040814%105%13%197%

Policy Process & Outreach42915247331132171123021122912441%5027%1445%8832%

12720306825516111410614215481310641829159100%185100%31100%275100%

IEA North AmericaIEA EuropeIEA PacificIEA

1999 - 2000 - 2001Fiscal25%20%13%24%12%26%16%24%41%30%47%27%31%37%22%38%27%0%24%44%7%32%37%0%30%25%0%5625%17727%2721%26026%

Tradable Permits10%10%17%8%6%26%3%19%2%7%0%9%3%7%4%0%22%19%24%0%14%21%0%0%14%2%0%115%6710%118%899%

Regulatory Instruments22%20%17%5%65%7%36%14%25%28%12%18%0%22%13%14%23%31%14%17%36%6%30%40%26%20%0%2913%14523%2519%19920%

Voluntary Agreements7%10%10%6%0%0%9%0%3%12%0%0%3%15%11%0%7%13%0%6%0%15%20%0%2%5%0%136%416%129%667%

RD&D5%0%4%19%0%4%9%10%8%5%6%0%28%7%17%5%3%0%10%11%14%9%0%20%4%27%0%5323%467%129%11111%

Policy Process & Outreach31%40%40%37%18%37%29%33%20%19%35%45%34%11%33%43%18%38%28%22%29%18%13%40%24%20%100%6428%16826%4333%27528%

100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%226100%644100%130100%1000100%

Fig 2-sector by country

0.3061224490.28571428570.24489795920.1632653061

0.33333333330.26666666670.13333333330.2666666667

0.31818181820.20454545450.20454545450.2727272727

0.29629629630.28148148150.22962962960.1925925926

0.35714285710.21428571430.17857142860.25

0.35483870970.19354838710.29032258060.1612903226

0.24324324320.16216216220.40540540540.1891891892

0.30.26666666670.23333333330.2

0.27272727270.1969696970.18181818180.3484848485

0.26315789470.23684210530.18421052630.3157894737

0.21739130430.17391304350.43478260870.1739130435

0.22222222220.27777777780.22222222220.2777777778

0.25641025640.23076923080.20512820510.3076923077

0.250.17857142860.28571428570.2857142857

0.23076923080.27692307690.23076923080.2615384615

0.26315789470.21052631580.42105263160.2105263158

0.281250.218750.250.25

0.23529411760.23529411760.23529411760.2941176471

0.30769230770.20512820510.23076923080.2564102564

0.22727272730.18181818180.45454545450.1363636364

0.350.250.20.2

0.24137931030.24137931030.31034482760.2068965517

0.20512820510.25641025640.28205128210.2564102564

0.27777777780.22222222220.22222222220.2777777778

0.2758620690.24137931030.24137931030.2413793103

0.33333333330.19047619050.23809523810.2380952381

Energy Production

Industry

Transport

Buildings

Fig 3 - type by country

0.25423728810.10169491530.22033898310.06779661020.05084745760.3050847458

0.20.10.20.100.4

0.1250.16666666670.16666666670.10416666670.04166666670.3958333333

0.24074074070.08333333330.04629629630.06481481480.19444444440.3703703704

0.11764705880.05882352940.6470588235000.1764705882

0.25925925930.25925925930.074074074100.0370370370.3703703704

0.15714285710.02857142860.35714285710.08571428570.08571428570.2857142857

0.23809523810.19047619050.142857142900.09523809520.3333333333

0.4067796610.01694915250.25423728810.03389830510.08474576270.2033898305

0.30232558140.06976744190.27906976740.11627906980.04651162790.1860465116

0.470588235300.117647058800.05882352940.3529411765

0.27272727270.09090909090.1818181818000.4545454545

0.31034482760.034482758600.03448275860.2758620690.3448275862

0.37037037040.07407407410.22222222220.14814814810.07407407410.1111111111

0.22222222220.0370370370.12962962960.11111111110.16666666670.3333333333

0.38095238100.142857142900.04761904760.4285714286

0.26666666670.21666666670.23333333330.06666666670.03333333330.1833333333

00.18750.31250.12500.375

0.24137931030.24137931030.137931034500.10344827590.275862069

0.444444444400.16666666670.05555555560.11111111110.2222222222

0.07142857140.14285714290.357142857100.14285714290.2857142857

0.32352941180.20588235290.05882352940.14705882350.08823529410.1764705882

0.366666666700.30.200.1333333333

000.400.20.4

0.30.140.260.020.040.24

0.25423728810.01694915250.20338983050.05084745760.27118644070.2033898305

Fiscal

Tradable Permits

Regulatory Instruments

Voluntary Agreements

RD&D

Policy Process & Outreach

Fig 4 - type by region

0.24778761060.04867256640.12831858410.05752212390.23451327430.2831858407

0.27484472050.10403726710.22515527950.06366459630.07142857140.2608695652

0.20769230770.08461538460.19230769230.09230769230.09230769230.3307692308

Fiscal

Tradable Permits

Regulatory Instruments

Voluntary Agreements

RD&D

Policy Process and Outreach

Share of all PAMs

Fig 5- VA region evo

0.03539823010.06521739130.0363636364

0.07407407410.06010928960.1136363636

0.08474576270.06486486490.1612903226

North America

Europe

Pacific

Year

Share (%)

Figure 5: Change in the share of voluntary agreements in total of new policies by macro-region

Fig 6 - TP region evo

0.08849557520.08333333330.1090909091

0.01851851850.10928961750.0909090909

00.12972972970.0322580645

North America

Europe

Pacific

Year

Share (%)

Figure 6: Change in the share of tradable permits in total of new policies by macro-region

New work on PAMs databasesOECD/IEA/EU database on economic instruments (e.g. taxes, tradeable permits...) available soonNew IEA searchable web-site on all energy-related climate change policies in countries including renewable energy policiesIEA analyses of specific technology and fuel options (including renewable energy, natural gas, and carbon capture and storage)

7. Conclusions: PAMs in OECDSignificant action to date in Member countriesSome success in de-coupling (e.g. c-intensity)OECD emissions still on the rise - much remains to be doneOECD and IEA have a mandate to assess performance and promote good practiceNeed to learn together and begin to look beyond OECD for lessons (e.g. Annex I and non-Annex I)

7. Conclusions: Role of FCCC Subsidiary BodiesSBs play a unique role to:Assess progress through national communicationsReview key developments, emission trends, drivers and key indicatorsIdentify and share lessons amongst all Parties

More detailed information can be found on the OECD and IEA websites:www.oecd.org/env/ccwww.iea.org/envissuand in the OECD/IEA Information Paper Climate-relevant policy assessment in the OECD, IEA, NEA and ECMT

Document is a proposal for future work on LULUCF. Looks at the issues, and raises questions which could be addressed in future AIXG analytical work.

- Human actions could influence the magnitude of sink/source in shorter and longer-term- LULUCF currently a global sink >>Accounting regime for LULUCF GHG mitigation uncertain after 2012 level of caps, eligible CDM activities, framework- Potential for increased C sink significant

Key trends and drivers are assessed for these types of outlooks --

Here you see trends in drivers of energy related Carbon emissions in OECD countries since the early 70s

GDP rising quite steadily - slower growth in energy and CO2 but still tracking GDP quite well.

Some decoupling of CO2 and energy/GDP and energy and GDP is occuring however as you can see by falling CO2 intensity (though leveling off in recent years - overall trend is in decline) and falling energy intensity