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Sectoral approaches are proposed as a means to broaden the global scope of greenhouse gas (GHG) mitigation to developing countries. Market mechanisms are put forward in that context to create incentives for mitigation in developing countries beyond the existing Clean Development Mechanism (CDM), and to encourage mitigation at least possible cost. The introduction of new, sector-based, market mechanisms is only one of many proposals discussed by UNFCCC Parties in the context of a post-2012 international climate policy framework, as a possible means to support mitigation actions in developing countries.

This paper considers the carbon market aspects of sectoral approaches to reduce greenhouse gas (GHG) emissions in developing countries. It discusses three general ways to link sectoral goals with the carbon market: (i) intensity goals, based on a GHG performance per unit of output; (ii) fixed emission goals, with an ex-post issuance of credits or trading with an ex-ante allocation of allowances; and (iii) technology-based sectoral objectives.

This paper explores the domestic policy implications of moving from a single project approach (i.e., CDM), to a multi-plant, sector-wide carbon market mechanism implied by sectoral crediting and trading. It also touches on possible transition issues, especially from intensity-based emission goals to fixed ones. The paper concludes that sector-based market mechanisms, regardless of the design option chosen, will require some significant upfront effort both nationally and internationally to set appropriate baselines and ensure adequate measurement, reporting and verification in order to generate economically valuable and environmentally-credible credits. Technology diffusion goals may be supported by other means than the carbon market if developing GHG baselines for such activities were too difficult. Sectoral approaches also imply some significant policy effort in countries that adhere to them, to ensure that the baselines are exceeded so that carbon market revenues are generated, and that these revenues represent effective incentives for entities to pursue GHG mitigation, wherever it is most cost-effective to do so.

This paper reviews proposals for the design of sectoral and related market mechanisms that are being debated both in the UNFCCC negotiations and in different domestic legislative contexts. Decisions on the design and scope of the mechanisms in the UNFCCC negotiations would affect the future supply of credits, while developed countries’ legislations could influence demand. National actions to establish carbon markets may also constrain or enable international developments and options, as domestic policies may establish conditions or restrictions on the import of “international” offset credits or linkages with other national or regional carbon markets.

The paper also addresses the possible principles and technical requirements that Parties may wish to consider, as the foundations for further elaboration of the mechanisms. Beyond principles, a number of elements of a more technical nature need to be sorted out to set up new market mechanisms, such as: eligibility for participation by developed countries, as buyers; technical definition of baselines, including guidance on a process to agree to baseline levels, and possible revisions; length of the crediting period and frequency of issuance of credits; new trading units and registries; and national authorities for the new mechanisms. In the case of trading, a compliance reserve and liability rules may be topics for discussion as well.

The third issue explored by this paper is domestic implementation of sectoral market mechanisms by host countries, and how the transition between current and future mechanisms could be managed. Transition issues including the situation of existing CDM projects vis-à-vis broader crediting mechanisms and also sectoral trading must be clarified. Domestic policy implementation in developing countries is of paramount importance to ensure the effectiveness of possible new international market mechanisms. Several illustrations are offered to show how a mix of policies could be used to outperform a baseline to generate credits, and how credit revenues could be used to further support domestic policy implementation. Among the options discussed are subsidies to low-carbon technologies (e.g. feed-in tariffs), mandated performance standards, and an entity level baseline-and-crediting system.

This paper discusses product market regulatory reforms in Italy over the past decade. Special attention is given to the underlying macroeconomic context for sectoral reforms and the role played by such reforms in consolidating the gains of macroeconomic convergence for entry into the European Monetary Union. The paper suggests that the shift towards more market-oriented and less interventionist policies, has allowed Italy’s legal and institutional framework to come closer to the mainstream of good regulatory practices in the OECD countries. With Italy having been initially a laggard on the regulatory reform front, recent achievements have been remarkable. They are, however, incomplete. A major challenge is the need to secure competition in the sheltered sectors of the economy, where inflation inertia raises costs and affects the exposed sectors, thereby weakening international competitiveness ...

This paper sheds light on the importance of aggregation bias in the analysis of wage shares developments over time and across countries. We focus on five European countries and the United States and show that the trend decline in the aggregate wage share observed in these countries over much of the 1980s and 1990s partly reflects changes in the sectoral composition of the economy. The application of a fixed-weight aggregation method changes the profile of the observed wage share in a significant way: in particular there is no longer sign of an overshooting of the wage share levels of the early-1970s. Error-correction wage equations based on the adjusted wage shares generally have a better regression fit and show long-run elasticities of real wages to unemployment that vary less across countries and are substantially lower than those obtained with observed shares. These results are broadly confirmed by wage regressions using sectoral data and the Pooled Mean Group estimator ...

This paper investigates whether OECD countries are facing secular stagnation. Secular stagnation is defined as a situation when policy interest rates bounded at zero fail to stimulate demand sufficiently, due to low or negative neutral real interest rates and low inflation, and when ensuing prolonged and subdued growth undermines potential growth via labour hysteresis and discouraged investment. Obtaining firm evidence is complicated by considerable uncertainties surrounding estimates of economic slack and its impact on inflation, crisis-related hit to potential output and neutral interest rates. However, signs of secular stagnation are most evident in the euro area, particularly in the vulnerable members, in contrast to the United States and the United Kingdom, where evidence is less firm. Japan is arguably in the advanced stage of secular stagnation that started almost two decades ago. In countries with symptoms of secular stagnation, more monetary and fiscal stimulus should be accompanied by structural reforms to boost potential growth and neutral rates. Evidence on hysteresis effects strengthens the case for accommodative policies. In general, the large uncertainty about the size and persistence of hysteresis and risks associated with certain measures pose policy dilemmas and call for a comprehensive policy response.

This document explores two interrelated aspects of leveraging movable assets to facilitate access to finance: first, the implementation of collateral registries for movable assets, and second, the collateralisation of intangible movable assets. Both dimensions benefit from a case study approach. The report examines how these different instruments function and highlights the opportunities and challenges for making better use of them. It also outlines the role that policies can play in this regard.

At the October 2011 Governing Board Meeting at Ministerial Level, IEA member countries endorsed the IEA Electricity Security Action Plan (ESAP). The proposed electricity security work program reflects the challenge of maintaining electricity security while also seeking to rapidly reduce carbon dioxide emissions of the power systems. In particular, the large-scale deployment of renewables needed to meet low-carbon goals is technically feasible. However, it will lead to more volatile, real-time power flows, which will create new challenges for maintaining electricity security.

The policy brief details the critical challenges for the well-being of children in the context of the COVID-19 crisis and lays out the foundations of a Framework for Achieving the Well-Being of Children in the post-COVID-19 Decade to ensure that children are put at the centre of efforts to build back better. The Framework proposes five pillars of action, which includes developing a data framework for monitoring child well-being outcomes and policies and ensuring political leadership and commitment for child well-being. The brief also provides an overview summary of a webinar hosted by the OECD and the Institute for Inspiring Children’s Futures in October 2020. This webinar provided a platform for OECD member countries and child well-being experts to share examples of country or regional policies and initiatives aimed at promoting child well-being during the pandemic, and to start shaping a shared understanding of child well-being and the outcome objectives.

Security actors are important actors in the international community’s efforts to support peace in fragile contexts. Their activities affect not only the immediate security conditions in fragile contexts, but also the conditions for humanitarian assistance, development co-operation and peacebuilding. This paper explores the relationship between security actors and the broader international community in fragile contexts. It argues that security actors are needed to build peace in many fragile contexts, but that they can only contribute to peace where their activities are coherent with and complemented by appropriate civilian engagement. In doing so, it assists Development Assistance Committee members in their efforts to operationalise the Humanitarian-Development-Peace Nexus and to step up efforts to prevent conflict and build peace in fragile contexts. The paper is one of ten working papers supporting States of Fragility 2020 and together with Diplomacy and peace in fragile contexts, Conflict prevention in fragile contexts, and Peacebuilding in fragile contexts provides comprehensive background to Chapter 2 on peace in States of Fragility 2020.

The primary aim of maritime security assessment models is to assess the level of security within and across the maritime network. When managing risk through legislation, regulatory assessment models are used to assess risk levels and examine the impact of policy options, usually in terms of the costs and benefits of a regulatory proposal. This paper reviews the development, application and adequacy of existing risk assessment and management models to maritime and port security. In particular, we examine the problematical issues of security perception, value and impact, and discuss the limitations of the current regulatory framework in providing an integrated and effective approach to risk assessment and management, including for supply chain security.

The Domain Name System (DNS) underpins the very functioning of the Internet and today’s global economy. As a result, the impact of unintentional incidents as well as cyberattacks on the DNS can be significant. This report focuses on DNS security, i.e. the area of cybersecurity that covers incidents disrupting the availability, integrity and confidentiality of parts of the DNS ecosystem. It analyses the roles and vulnerabilities of actors in the DNS ecosystem, highlights common misconceptions, and discusses the role of governments in enhancing DNS security. The report notably underlines that there is no panacea for DNS security and that promising technical solutions often come with trade-offs.

Security concerns are high on the political agenda in many countries because of the widespread perception that security is increasingly threatened by intentional malicious acts including terrorist attacks. While terrorism has a long history and measures to maintain and improve security are in place, major events – including but not limited to the 9/11 attacks – have triggered stronger action to improve security. In this context, much attention goes to maintaining secure transport for two reasons. First, many transport facilities and vehicles are appealing targets for terrorist attacks because of the concentration of potential victims. Second, transport can act as a conveyor for terrorist attacks, e.g. by moving weapons into ports or by turning airplanes into weapons. In both cases, the difficulties in protecting the many potential targets while maintaining smooth transport operations strengthens the appeal of transport targets.