Greening regions, cities and communities

Inclusive green growth in cities and regions

More than half the people in the world live in or near cities today. By the middle of the century, urban areas will be home to over two-thirds of the global population and a large share of economic activity. The OECD work on urban and regional development finds that appropriate local policies can help generate growth and jobs while becoming greener.

The 2021 Regional Outlook - Addressing COVID-19 and Moving to Net Zero Greenhouse Gas Emissions analyses the different territorial impacts of COVID-19 on health and economy and the different territorial implications of moving to net-zero greenhouse gas emissions by 2050 whilst adapting to climate change. Building on these insights, it provides guidance for integrating the climate challenge into multi-level governance, urban and rural development so as to leave no region behind. The report also highlights the opportunity to draw lessons from COVID-19 for a place-based response to the climate challenge.

The OECD Programme on the Circular Economy in Cities and Regions supports national, regional and local governments in their transition towards a circular economy by: supporting multi-level dialogues; providing an international network, where regions and cities can share knowledge, experiences and good practices with a wide range of stakeholders; and facilitating the uptake of the OECD Scoreboard on the Governance of the Circular Economy.

The OECD Programme A territorial approach to climate action and resilience supports countries, regions and cities in their efforts to develop and implement their climate plans, strategies and policy instruments. The programme seeks to demonstrate the potential of subnational action by strengthening local understanding of climate change drivers, impact and vulnerabilities; assessing national and subnational policy and governance frameworks to provide locallytailored recommendations; sharing and disseminating innovative policies, strategies and programmes applying a territorial approach to drive the zero-carbon transition and climate resilience.

The Building decarbonisation in cities and regions project focuses on the role of the building sectors for meeting net-zero targets. The project started in 2021 with a multi-level governance framework to guide building policies, including energy efficient retrofits, installing high performance equipment and promoting renewable energy. Besides saving energy and reducing CO2 emissions, decarbonising buildings also brings multiple benefits such as reducing energy bills, improving health and creating green jobs. Using the framework as a foundation, the project provides more specific place-based analysis taking into account regional differences.

Mining Regions and cities play a key role in the green inclusive transition. The OECD Mining Cities and Regions initiative aims to develop recommendations for improving regional development outcomes for regions and cities specialised in mining and extractive industries by developing a global platform for mining regions and cities through events and peer-review that enable knowledge sharing, advocacy and dialogue between public/private sectors and local communities on better policies to enhance regional productivity and wellbeing.

Key Publications and websites

In the broader context of the 2030 Agenda for Sustainable Development, the OECD Programme on a Territorial Approach to the SDGs seeks to support cities and regions in localising the SDGs, with the participation of 10 pilot cities and regions from around the world. Recent projects of the framework include the RhineNeckar Metropolitan Region (2021-2022) and the Autonomous Province of Bolzano (2022).

• Decarbonising Buildings in Cities and Regions, OECD Urban Studies (2022)

• OECD Regional Outlook 2021: Addressing COVID-19 and Moving to Net Zero Greenhouse Gas Emissions (2021)

• A Territorial Approach to SDGs, OECD Urban Policy Reviews (2020)

• www.oecd.org/regional/cities/circular-economy-cities.htm

• www.oecd.org/cfe/cities/tacar.htm

• www.oecd.org/fr/regional/mining-regions-cities.htm

• www.oecd.org/dac/financing-sustainable-development/development-finance-topics/small-island-developing-states.htm

Contact for more information

Tadashi Matsumoto

Centre for Entrepreneurship, SMEs, Regions and Cities

E-mail: Tadashi.Matsumoto@oecd.org

Andrés Fuentes Hutfilter

Centre for Entrepreneurship, SMEs, Regions and Cities

E-mail: Andres.Fuentes@oecd.org

Oriana Romano

Centre for Entrepreneurship, SMEs, Regions and Cities

E-mail: Oriana.Romano@oecd.org

Asia

The current development of Asia is characterised by a rapid urbanisation, rising economic growth led in most places by the manufacturing industry, and a rapidly increasing motorisation. The result has been escalating air and water pollution, large greenhouse gas emissions, increased solid waste generation and plastic pollution, sprawling urban development, depletion of natural resources and deforestation.

The development of infrastructure supports Asia’s dynamism but also plays a key role in soaring greenhouse gas emissions, air pollution and the destruction of ecosystems. To help governments across Central and Southeast Asia plan, evaluate and finance sustainable infrastructure projects in line with long-term environmental and development goals, the OECD launched the Sustainable Infrastructure Programme in Asia (SIPA) in 2021. SIPA provides countries with capacity development and policy advice at different stages of the infrastructure investment cycle, focusing on long-term strategic planning, project-level evaluations, aligning national sectoral policy frameworks (energy, transport, industry) with the goals of the Paris Agreement and the SDGs as well as promoting the adoption of green finance and responsible business conduct principles.

China, Japan and Korea – like many other countries that underwent periods of rapid industrialisation – share a common story of high economic growth and intense pollution followed by progressive efforts to improve air quality. The critical impact of air pollution on human health in both developed and developing countries is well-known. Building on the expertise of the OECD Environment Policy Committee and the Regulatory Policy Committee, the OECD brought together policy makers, academics and experts from China, Japan and Korea to discuss regulatory frameworks, enforcement and co-operation to address air pollution as well as existing international regulatory co-operation to control trans-boundary air pollution in Northeast Asia, North America, and Europe. The report Economic benefits of international co-operation to improve air quality in Northeast Asia: A focus on Japan, Korea and China provides projections of the benefits of policy action up to 2050, and finds that further co-operation to reduce air pollution in the Northeast Asia region can result in health, environmental and economic benefits.

A sound investment and finance policy framework is a key enabler for the green transition. The 2022 Economic Outlook for Southeast Asia, China and India highlights the existing challenges, and policy options to support the further development of sovereign green bond markets in the region. In addition, the report Strengthening Macroprudential Policies in Emerging Asia: Adapting to Green Goals and Fintech provides a detailed overview of the current macroprudential policy situation in Emerging Asian countries and explores how the macroprudential policy toolkit has evolved. In particular, the report devotes special attention to macroprudential policies for emerging priorities, such as achieving green goals and updating regulatory frameworks to reflect ongoing fintech developments. Furthermore, several countries in the region have joined the Clean Energy Finance and Investment Mobilisation (CEFIM) programme, including India and Indonesia.

OECD has worked with the Chinese experts on Environmentally Adjusted Multifactor Productivity (EAMFP), applying the OECD measurement framework to national data. The project led to the release of the report on Environmentally Adjusted Multifactor Productivity in China in March 2022, which provides indicators to track the progress towards green growth, including metrics on the reliance on natural capital and pollution-intensive activities to generate income growth.

Key Publications

• Economic Outlook for Southeast Asia, China and India 2022: Financing Sustainable Recovery from COVID-19 (2022)

• The economic benefits of international co-operation to improve air quality in Northeast Asia: A focus on Japan, Korea and China (2022)

• Environmentally Adjusted Multifactor Productivity in China (2022)

• Strengthening Macroprudential Policies in Emerging Asia: Adapting to Green Goals and Fintech (2021)

• Clean Energy Finance and Investment Policy Review of Indonesia (2021)

• Clean Energy Finance and Investment Roadmap of India: Opportunities to Unlock Finance and Scale up Capital (2021)

• Enhancing Air Quality in Northeast Asia: Regulatory frameworks, enforcement and co-operation (2019)

• Green Growth Performance Review of Indonesia (2019)

Contact for more information

Virginie Marchal

Environment Directorate

E-mail: Virginie.Marchal@oecd.org

Elisa Lanzi

Environment Directorate

E-mail: Elisa.Lanzi@oecd.org