This guidance sets out elements of credible corporate climate transition plans, which aim to align with the temperature goal of the Paris Agreement. Such plans are needed to address the growing risk of greenwashing in transition finance and facilitate a global, whole-of-economy climate transition.

Carbon lock-in occurs when high-emission infrastructure or assets continue to be used, despite the possibility of substituting them with low-emission alternatives, thereby delaying or preventing the transition to near-zero or zero-emission alternatives. Transition finance, which focuses on the dynamic transformation and decarbonisation of hard-to-abate sectors, frequently faces the issue of carbon lock-in, particularly in considerations of investment feasibility and eligibility.

Aligning finance with climate policy goals is crucial for achieving net-zero greenhouse gas emissions and resilience to climate change, as called for by Article 2.1c of the Paris Agreement. Evidence-based policy making and investment decisions towards such alignment need to be informed by robust assessments. To support such efforts, this inaugural OECD Review on Aligning Finance with Climate Goals brings together best-available evidence on three core questions: (i) How is climate alignment of finance assessed? (ii) What do we know about current finance flows and stocks? (iii) What evidence exists on the role of financial sector policies and actions? The report identifies actions policymakers and financial sector stakeholders can take to improve the evidence base and better align finance with climate goals. It further sets out good practices to prevent greenwashing and inaccurate claims of climate alignment.

This report provides a synthesis of the OECD Net Zero+ project, covering the first phase of an ongoing, cross-cutting initiative, representing a major step forward for an OECD whole-of-government approach to climate policy.

As India switches away from a coal-based to a more sustainable energy use pattern, which pathway will it adopt? What is the nature of challenges that it will face, and who will be affected? Who will gain? This volume offers insights into the steps and challenges involved in this transition and addresses some urgent questions about the possible pathways for India’s renewable energy generation. Including contributions from researchers, policymakers, and practitioners, it draws on different disciplines, ranging from science and technology to economics and sociology, and situates the issue of low carbon transition within an interdisciplinary framework. India has committed to gradual decarbonisation of its economy. This book takes this as its starting point and uses a wide-angle lens, incorporating macro as well as micro views, to understand the possible next steps as well as trade-offs that will inevitably be posed. It incorporates the perspectives of all stakeholders ranging from central and state governments, public and private sector firms, on the one hand, to individuals and local communities, on the other, to explore their role in the transition, their interests, and how these will change and evolve. This timely volume will be of interest to students and researchers of environmental studies, development studies, environmental economics, political studies, and Asian studies. It will also be useful to academics, practitioners, and policymakers working on issues related to climate change, sustainable development, energy policy and economics,and public policy.

This report identifies LAC countries’ main climate change policy priorities, which were discussed through a series of Regional Policy Dialogues and Expert Workshops and complements these with findings of recent analyses by the OECD and other international partners. It explores issues related to their implementation on climate adaptation, mitigation, and cross-cutting policy areas.

This report explores how institutional investors can apply risk-based due diligence as recommended by the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and help them prevent and mitigate adverse climate impacts associated with their investee companies on society and the environment.

Global methane emissions are not reducing at the scale and pace needed to limit warming to a level consistent with the Paris-aligned 1.5°C pathways. Global demand for natural gas is growing, and many developing countries plan to monetise their natural gas reserves to enhance energy access, support industrialisation and achieve improved development outcomes. It is therefore urgent to substantially reduce methane emissions in the production and consumption of oil and gas. This report provides recommendations for the design of robust regulatory frameworks on methane abatement in the upstream oil and gas sector. It also sets out the enabling conditions as well as the incentives for deploying cost-effective methane abatement solutions in developing countries producing oil and gas. Recognising the shared responsibility of consuming and producing countries in reducing methane emissions, the report identifies options to finance methane abatement in developing countries in order to move from voluntary commitments to concrete actions.

This guidance sets out elements of credible corporate climate transition plans, which aim to align with the temperature goal of the Paris Agreement. Such plans are needed to address the growing risk of green washing in transition finance and facilitate a global, whole-of-economy climate transition. Based on extensive stakeholder consultations, including an industry survey, the guidance provides market actors, policy makers, and regulators with a comprehensive overview of existing transition finance approaches, identifying the main challenges and solutions. The guidance is relevant to: (i) policy-makers and regulators seeking to develop or revise relevant policy frameworks or regulations; (ii) corporates developing transition plans and seeking to identify the most salient elements of existing initiatives; and (iii) financial market participants planning to provide finance for the implementation of net-zero strategies. The guidance emphasises greater transparency, comparability and granularity in corporate transition plans, and the need for adequate environmental and social safeguards. In light of challenges for some corporates, especially in emerging markets and developing economies, and the risk of excluding key actors from transition finance, the guidance highlights the need for policy-makers to take stronger action to bolster domestic enabling environments for transformative investments

How can fossil fuel producers and mineral-rich developing countries design realistic, just and cost-effective low-carbon transition pathways? Taking into account the heterogeneity of low-carbon trajectories, Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT) provides options for policy makers, industry and finance institutions in search of the answers.