Note: Single-source report; awaiting corroboration.
Most OECD countries have set ambitious climate targets, but the OECD states that current policies are likely insufficient to significantly reduce greenhouse gas emissions by 2030, making the net-zero emissions target by mid-century difficult to achieve.
According to the OECD, reaching decarbonisation by mid-century will require substantial structural changes across economies, including reallocating workers and capital from emission-intensive sectors to greener activities.
The OECD underscores the need for strong structural reforms and coherent climate policies to help governments progress toward net-zero emission pathways. These policies must address the transition costs businesses and workers face to ensure inclusivity and resilience.
The OECD also notes that digital technologies could boost firm productivity and support greener economic growth if policies promote digital adoption.
Effective social protection and targeted interventions are necessary to maintain clear price signals crucial for the low-carbon transition, especially given fiscal pressures and recent shocks such as the pandemic and energy price volatility.