OECD Work on the Green Growth Indicators database

THE GREEN GROWTH INDICATORSDATABASE

OECD WORK ON

THE GREEN GROWTH

INDICATORS DATABASE

OECD WORK ON

“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

What’s new in 2015 ?

The OECD Green Growth Indicators chart the progress

that countries make in four areas, in relation to the socio-

economic 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.

www.oecd.org/greengrowth/greengrowthindicators.htm

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.

4 . OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE

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:

Environmental and resource productivity

The natural asset base

The environmental dimension of quality of life

Economic opportunities and policy responses

Indicators that describe the socio-economic context and the characteristics of growth complete the picture.

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2

3

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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)

labour

energy and raw materialswater, land, biomass, air

pollution and waste

inputs outputs CONSUMPTION

capital

INVESTMENTS

income

goods & services

NATURAL ASSET BASE

amenities, health

2

3

PRODUCTION

+ Recyclingre-use,

remanufacturing, substitution

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ECONOMIC AC TIV IT IES : PRODUC TION, CONSUMPTION, TRADE

residualsresources

resource functions

sink functions

servicefunctions

POLICIES measures,

opportunities

taxessubsidies

regulations

investmentinnovation

education, training, jobs, trade

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adapted from OECD (2014), Green Growth Indicators,

http://doi.org/4f6Icons 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.

GREEN GROW TH INDICATORS FRAME WORK


1Environmental 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

OECD WORK ON THE GREEN GROWTH INDICATORS DATABASE . 7

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)

Figure 1. Decoupling CO2 emissions from economic growth

Relative decoupling (GDP increased faster than CO2 emissions)

Absolute decoupling (GDP increased, CO2 emissions decreased)

8 . OECD WORK ON GREEN GROWTH INDICATORS

2Natural 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


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.

low

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wate

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tres

s

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- h

igh

str

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sh

igh s

tres

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* 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)

// 72% // 103% // 67%



3Environmental 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.


Figure 3. Access to sewage treatment Population connected to a public sewage treatment plant in 2013 or latest available year

A detailed, interactive version of this graph is available on www.oecd.org/greengrowth/greengrowthindicators.htmComplete database and metadata: stats.oecd.org (> Environment > Green growth)

% population connected to sewerage

with primary treatment with secondary treatment with tertiary treatment


4Economic opportunities and policy responsesAre 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

• 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

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

Slovenia

France

MexicoJapan

Brazil

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.

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

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.

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.

Structural reforms can unlock new growth engines by:

• Enhancing productivity by creating incentives for 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.


What is green growth?

THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

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

policy experiences, and to identify and

promote good practices through policy

decisions and recommendations.


Key publications

Towards Green Growth? Tracking progressJuly 2015Key Findings and Recommendations already available on http://bit.ly/1e8aNmI

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

www.oecd.org/greengrowth/ greengrowthindicators.htm

www.oecd.org/greengrowth/greengrowthindicators.htm

OECD Environment Directorate

[email protected]

Graphic Credits

Photos. Cover © 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/DreamstimeIcons 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

OECD Work on the Green Growth Indicators database

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