Regulations

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Box 3.1.Measures for sustainable land use could be further included in stimulus packages

The OECD has reviewed the stimulus package introduced by government as a response to the COVID19 crisis and provided a number of recommendations for measures to consider. These include: Removing and repurposing some of the agricultural support subsidies potentially harmful to biodiversity (e.g. for fertiliser purchase) (OECD, 2020[57]). Maintaining and strengthening regulations on land-use (OECD, 2020[58]). Redirect government revenue from land-use related taxes (see sub-section on taxes) towards green stimulus measures that improve land use sustainability (OECD, 2020[58]). Using government-funded PES-type schemes to incentivise sustainable land use through improved farm management practices (OECD, 2020[30]). Investing in sustainable land use can help address the risks generated by biodiversity loss, while bringing other benefits to society (for instance, providing jobs and business opportunities) (OECD, 2020[58]). A recent study estimates that 20 000 to 70 000 full-time jobs would be generated if action is taken to restore 15% of degraded ecosystems in the European Union (OECD, 2020[58]; Dickie et al., 2017[62]). Benefits for business could include cost reductions, new business opportunities (with for instance ecotourism or certified sustainable products), higher market share and new companies in charge of ecosystem restoration for instance (OECD, 2020[58]). Taking into account land-use related trade-offs (see sub-section on (OECD, 2020[30]). coherent policy design)

Better controlling land cover change especially surface artificialisation caused by urbanisation and agricultural land clearing (OECD, 2020[30]). Introducing or extending carbon pricing 2020[30]). taking distributional impacts into account (OECD,

Source: (OECD, 2020[58]; Dickie et al., 2017[62]; OECD, 2020[30]).

A key criterion that policymakers must consider is time frame: sustainable stimulus packages should address short and long-term challenges. In the short term, objectives include job creation and economic activity boost, while long-term objectives include long-term growth, resilience to future shocks, decarbonisation and sustainable growth trajectory.

Regulations

Environmental regulations are a key component of policy packages to achieve sustainable land

use. It is widely common for countries to issue regulations to discourage unsustainable input use, water use, land clearance and urban sprawls (OECD, 2018[49]). This section will address the use of land-use planning, urban containment policies, input use regulations and bans on natural resource use.

Land-use planning

There is a wide diversity of issues covered by land-use related laws and regulations. In France, for instance there are four land-use related laws and several regulations covering issues from urban and tourism development to environmental protection (see Box 3.2).

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Box 3. 2. Land-use related laws and regulations in France

There are four land-use related laws in France: (1) Law on solidarity and urban regeneration, (2) Law on flexible rent ceilings, (3) Law on mountainous areas and (4) Law on coastal areas. They are implemented via several regulations. For instance, the law on solidarity (1) has the objective to reach a minimum of 20% of housing dedicated to low-income and poor people in cities of more than 50 000 inhabitants. The laws 3 et 4 set environmental protection standards while supporting tourism development.

Source: (OECD, 2017[63])

Governments are giving increasing importance to land-use planning but efforts still have to be

made. Governments could (1) improve land-use planning governance, (2) mainstream land-use nexus issues into sub-national strategies, plans and programmes, (3) use land use or spatial planning tools, and (4) conduct land-use planning in a collaborative fashion (OECD, 2017[63]; OECD, 2020[45]). Land-use planning in Indonesia already fulfils recommendations 2 and 3 but could further improve governance and collaboration as detailed in Box 3.3.

1.

2.

3.

4. Land-use planning governance is sometimes shared between national and sub-national governments. In France for instance, land-use planning governance is quite complex because subnational governments are responsible for developing the strategic vision but not for developing the corresponding policies (OECD, 2017[64]) (see Box 3.4). In several countries, sub-national governments are either required to or can incorporate climate and biodiversity concerns into their sub-national strategies, plans and programmes (OECD, 2020[45]). For instance, in France, the regional governments are required to include climate policies in their regional plan for territorial planning (OECD, 2020[45]). France has established a National Strategy for Sustainable Development which covers all aspects of the land-use nexus and makes the case for action (OECD, 2020[49]). Although this is already useful, it is still missing the identification of specific targets to be achieved (OECD, 2020[49]). In Brazil, sub-national governments can, but are not required to, include climate policies (OECD, 2020[49]). Everywhere, the inclusion of the valuation of ecosystem services into land-use planning would be useful to help reduce trade-offs between the land-use nexus goals (OECD, 2020[49]). In some countries, national development plans (or similar documents) include land use or spatial planning tools and requirements. In Ireland for instance, environmental impact assessments -EIAsare successfully used to assess and limit the adverse impacts of development projects and to ensure consistency between nexus areas (OECD, 2020[45]). EU law requires that Strategic environmental assessments -SEAs- are conducted for major strategic programmes and development plans taking place (OECD, 2020[45]). A key recommendation for land-use planning is to conduct it in a consultative and co-ordinated manner, and engage all the relevant Ministries and other key stakeholders (OECD, 2020[45]). This is necessary to avoid misalignments and detect possible areas for joint efforts (OECD, 2020[45]).

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Box 3.3. Land-use planning in Indonesia

Land-use planning in Indonesia has the following characteristics: 1. Land-use planning governance is centralised. 2. Land-use nexus issues are included into national development plans.

Indonesia’s medium-term development plan (RPJMN 2015-2019): includes forest conservation and the National Biodiversity Strategy and Action Plan (NBSAP). Environmental issues, including ecosystems and climate change, are taken into account.

Indonesia’s long-term development strategy (2005-2025): includes environmental sustainability as one of the nine development missions. This strategy also aims at exploiting Indonesia's comparative advantage in agriculture and mining to reach food self-sufficiency and middle-income status.

Indonesia’s medium-term national development plan (RPJMN 2020-24): provides an opportunity to ensure greater effort to reconcile developmental policy goals with the climate change, land use and ecosystems targets. 3. Land-use planning uses land use or spatial planning tools.

In preparation of RPJMN 2020-24, the Ministry of National Development (BAPPENAS) undertook modelling to strengthen policy coherence between sectoral targets and to facilitate discussion between stakeholders. 4. Land-use planning should be conducted in a more collaborative fashion.

In Indonesia, forestry, agriculture, energy and spatial planning are the responsibility of four different ministries (respectively the Ministry of Environment and Forestry, the Ministry of Agriculture, the

Ministry of Energy and Mineral Resources, and the Ministry of Agrarian and Spatial Planning).This makes inter-ministerial co-ordination mechanisms necessary. Ministry of Environment and Forestry is responsible for the implementation of biodiversity/ecosystem policy and climate policy and it should synchronise these policies because they are still created independently.

Source: (OECD, 2020[49])

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Box 3.4. Complexity of land-use planning governance in France

The combination of local and national governance makes land-use planning complex in France. In France, the national government does not develop a national spatial land-use plan although it is responsible for all policies including land-use planning policies (OECD, 2017[64]). The regions are responsible for a strategic vision of land-uses. Below them, the “communes” (i.e. cities or towns) or groups of small “communes”, the lowest level of governance, have the responsibility of developing a key role in land-use plan and giving construction permits. Recent reforms have given more responsibilities to regions. These multi-layered governance arrangements result in an integrated approach to land-use planning. Although successful overall, this approach carries the following risks: poor financial and overall capacity of communes to implement the land-use plan, lack of consensus may keep key issues unaddressed and low public engagement.

Sources : (OECD, 2017[64])

Urban containment policies

Urban containment policies set limits to urban development with the objective of protecting forestland and farmland around urban areas, decreasing the costs of providing public services and

incentivising infill development (in vacant land within the urban area) (OECD, 2018[49]). Most used urban containment policies are greenbelts and urban growth boundaries (OECD, 2018[49]). A greenbelt can be defined an area of natural open space around or adjacent to an urban area in order to prevent the expansion of this urban area (OECD, 2018[49]). Greenbelts are usually identified at the national or regional level and implemented through acquisition of open space, purchase of development rights, or regulation of private property (OECD, 2018[49]). Greenbelts are used in the UK, Germany, Korea, Australia, Canada and the US (OECD, 2018[49]). Like greenbelts, urban growth boundaries are also used to prevent urban encroachment, but they are meant to be regularly evaluated and, if necessary, pushed further away to allow the urban area to grow. Urban growth boundaries are more appropriate than greenbelts in urban area likely to face population and economic growth. Likewise, urban service boundaries designate the area within which public services, such as water supply and sewerage, are restricted to (OECD, 2018[49]). The opportunity costs of urban containment policies should be carefully evaluated. Indeed, they are known to successfully incentivise infill development, but they also tend to create urban areas further away from the first urban centre, beyond the urban containment area. Such development comes with longer commuting distances, and thus increased greenhouse gas emissions and costs of transportation. Companies tend to prefer staying within the contained area and it drives housing prices up. Relocation incentives may be used for companies to move close to their labour pool (outside greenbelt) inducing the creation of new urban centres. Unintended negative impacts of containment policies can be kept to a minimum with higher level of governance centralisation, higher amounts of developable land and higher density within the contained area and more flexible policies.

Regulations: input use and bans

Input use regulations are commonly used in agriculture (DeBoe, 2020[65]). They can ban the more toxic pesticides and restrict the amount of inputs (for instance fertiliser) that can be used (DeBoe, 2020[65]). Wellknown examples are: