The Organisation for Economic Co-operation and Development (OECD) has called for development of green centred economic growth and labor development.

 

In its report, the OECD outlines the need for ‘greening growth’, saying that “Governments must look to the green economy to find new sources of growth and jobs. They should put in place policies that tap into the innovation, investment and entrepreneurship driving the shift towards a greener economy.”

 

Noting the strong performance of the Australian economy in recent years, the OECD made the case that Australia’s enviable economic position represented the perfect opportunity to take strong and bold action to tackle climate change.

 

The OECD stated in its report: “The authorities must take advantage of the favourable economic situation to pursue long term structural reforms, including those that favour output involving less CO2 emissions.”

 

The OECD report outlined two ‘broad sets of policies’ that would facilitate a decrease on dependency on unsustainable and environmentally damaging growth, saying “the first set mutually reinforces economic growth and the conservation of natural capital, including core fiscal and regulatory settings and innovation policies. The second includes policies that provide incentives to use natural resources efficiently and make pollution more expensive.”

 

The report continues to admit that such a progress ‘can be costly’, but it states that that ‘the price of inaction can be higher still’.

 

The report by the OECD comes as the Climate Change Commission has published its Critical Decade report, stating the need for immediate action to avoid the worst consequences of climate change.

 

The full OECD report is available here