OECD and MCC discuss assessment reports

Berlin. While talking to Ottmar Edenhofer, Director of the MCC, on Wednesday, May 14, Simon Upton stressed the OECD’s long-standing work programme on climate protection and the importance of the transformation of the world’s economies towards zero net emissions to the atmosphere from the combustion of fossil fuels. “The OECD has already done a great deal of work on carbon pricing and considers it to be an essential part of any serious response.  However, other flanking policy measures are also needed to ensure that regulations and institutions are aligned with the new economy, not the old”, Upton said.

The MCC, for its part, discussed the workshop it will be holding next week on the integration of climate policy considerations in public finance. The main goal will be to explore policy options for reconciling the management of long-term climate risks with meeting short-term concerns over economic growth, competitiveness and other politically relevant factors.

“There are many reasons to advocate the taxation of carbon, rather than labor, for example”, Edenhofer said. “We have to keep in mind that right now we are in the middle of the biggest renaissance of coal – although we are seeing technological progress within the field of renewable energies.” Edenhofer and Upton also discussed Germany’s energy and climate policy as well as the possible implications of the upcoming European Parliament elections on climate policy.

The OECD Environment Directorate is responsible for the environmental performance reviews of member countries and the economic analysis of policy instruments used to improve environmental outcomes, in addition to a wide range of tasks related to water, biodiversity, climate negotiations and chemicals. Upton played a key role in the development of the OECD Green Growth Strategy.