Governments must integrate the management of climate risks into policy making if they are to successfully adapt to a changing climate. Economic analysis has a vital role to play in supporting these efforts.
World leaders are facing a fundamental dilemma: take strong action to address the risks associated with climate change, or see the ability to limit this threat slip from their grasp. COP21 happening late 2015 in Paris is our chance for positive action.
This OECD study, in collaboration with Climate Policy Initiative, provides an up-to-date estimate of public and private climate finance mobilised by developed countries towards their UNFCCC 2010 Cancun commitment for climate action in developing countries.
The policy message is clear: more stringent environmental policies, when properly designed, can be introduced to benefit the environment without any loss in productivity, allowing new, cleaner technologies and business models to develop.
Limiting climate change to 2°C requires a major shift in investment patterns towards low-carbon, climate-resilient options. The challenge for policy makers is to ensure that clear, consistent and coherent signals are being sent to investors, producers and consumers alike.
Climate-related disasters have inflicted increasingly high losses on developing countries, and with climate change, these losses are likely to worsen. Improving country resilience against climate risks is therefore vital for achieving poverty reduction and economic development goals.