OECD: Paris Agreement Raised Ambition, But Implementation Lags on Funding and Vested Interests
SDG 13: Climate Action | SDG 17: Partnerships for the Goals
Institutions: Ministry of Environment, Forest and Climate Change (MoEFCC) | NITI Aayog
The OECD report, “The Paris Agreement at Ten Years,” presents novel insights from a survey of policymakers in 60 countries (including India) and over 180 non-government experts. The report finds a broad consensus that the Agreement successfully elevated climate change mitigation as a critical policy priority and safeguarded climate action from declining political attention, with experts agreeing that policies are more stringent than they would have been without the accord.
However, the report identifies significant barriers to implementation.
Four key domestic policy challenges: infrastructure gaps for net-zero transition, public acceptance of climate policies, affordability of clean technologies, and firm-level adoption of clean technologies.
Economic barriers include limited public funding, challenges in mobilizing private finance, and concerns about distributional fairness.
Institutional barriers include vested interests, lack of policy continuity across electoral cycles, and insufficient resources for government agencies.
Recommendations:
Strengthen Political Commitment:
Increase ambition and ensure policy continuity across electoral cycles to maintain momentum.
Address vested interests and enhance public support for climate policies.
Invest in Infrastructure and Innovation:
Prioritize investments in green infrastructure, renewable energy, and energy efficiency.
Support R&D for clean technologies and alternative fuels.
Enhance Economic and Institutional Capacity:
Mobilize public and private finance for climate action.
Improve coordination across government branches and levels of jurisdiction.
Focus on Transformative Policies:
Scale up renewable energy, phase out fossil fuels, and protect carbon sinks.
Implement market-based instruments, regulations, and innovation policies to drive emissions reductions.
This report is crucial for India (which was part of the survey) as it validates the “bottom-up” NDC approach while providing a clear roadmap for future action. The identified barriers—particularly infrastructure gaps, mobilizing private finance, and vested interests—are the central challenges India faces in its energy transition. The report’s focus on market-based instruments and energy sector transformation provides a clear, evidence-based direction for India as it designs its next, more ambitious Nationally Determined Contributions (NDCs).
What are “Market-Based Instruments” in the context of climate mitigation? → Market-Based Instruments are policies that use market signals (prices) to incentivize firms and consumers to reduce emissions, rather than mandating specific technologies. The most common examples are a carbon tax (which sets a fixed price on carbon) or an Emissions Trading System (ETS) (which sets a “cap” on total emissions and allows companies to “trade” the right to pollute). The report identifies these as highly effective tools for achieving emissions reductions.
Follow the full report here: The Paris Agreement at Ten Years