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OECD Regional Outlook 2021

Addressing COVID-19 and Moving to Net Zero Greenhouse Gas Emissions

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The COVID-19 crisis has revealed the close relationship between environmental risks and those to the foundations of human well-being – and the cascading effects on the economy and society. It has also highlighted the importance of anticipation and early action. These are also key to integrating climate policy into regional development, albeit on a larger scale. As with COVID-19, the climate challenge is global, but the response needs to build on regional and local actors, natural environments, geographies and infrastructures.

The 2021 edition of the OECD Regional Outlook shows that a place-based approach is vital for resilience in the face of both these challenges. It analyses the different territorial impacts of COVID-19 on health and economy, as well as policy responses. The report explores the different territorial implications of moving to net-zero greenhouse gas emissions by 2050 whilst adapting to inevitable climate change, and provides fresh analysis of regional data. It provides insights for integrating the climate challenge into multi-level governance, urban and rural development so as to leave no region behind. It highlights the opportunity we have to draw lessons from COVID-19 for a place-based response to the climate challenge.

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The COVID-19 crisis in urban and rural areas

The COVID-19 pandemic has brought much human suffering. It has underlined that risks to the foundations of human well-being are real global threats with multiple knock-on effects on economy and society. While the crisis is global, the impacts are territorially different. Well-connected urban areas were among the first exposed to the pandemic. In rural areas, older and less healthy populations often faced limited healthcare capacity. In urban and rural regions alike, poor areas with crowded living and working conditions have suffered worse health outcomes. The economic crisis COVID-19 has triggered exceeds the global financial and economic crisis from 2008 in scale and regional differentiation. Employment at risk varied from less than 15% to more than 35% across 314 regions in 2020, often reflecting sectoral specialisation, such as in tourism. Potentials for remote working are also uneven. Differences in non‑standard employment contribute to regionally different employment and poverty impacts across regions. This includes undeclared, temporary or self-employed workers, who often benefit less from social protection.

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