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Policies are crucial to preserving and protecting the environment, but their economic and environmental implications are not always clear. The OECD has a long history using economic models and quantitative assessments to inform policymakers of the costs, benefits and potential trade-offs of environmental policies.?

The OECD produces Environmental Outlooks to help policymakers understand the scale and context of the environmental challenges they face in the coming decades, as well as the economic and environmental implications of the policies that could be used to address these challenges. The OECD Environmental Outlooks use models to make projections about what the world might look like in the future. They also present the results of “what if…” simulations which model the potential effects of policies designed to tackle key environmental problems.

OECD Environmental Performance Reviews provide independent assessments of countries’ progress towards their environmental policy objectives. Reviews promote peer learning, enhance government accountability, and provide targeted recommendations aimed at improving environmental performance, individually and collectively. They are supported by a broad range of economic and environmental data, and evidence-based analysis. Each cycle of Environmental Performance Reviews covers all OECD countries and selected partner economies.

Taxes, subsidies, and other economic instruments provide important market signals that can influence the behaviour of producers and consumers. Taxing sources of environmental pollution and greenhouse gas emissions is an efficient and effective way to combat climate change, biodiversity loss and pollution. Environmental taxes can also contribute to revenue mobilisation and redistribution. The OECD’s data and analysis help to ensure that green taxes encourage environmentally friendly choices and support broader tax policy goals of fair and sustainable economic growth.

While the number and ambition of national and international environmental laws and regulations is growing, their implementation remains a challenge. Environmental compliance assurance ensures that regulated entities adhere to environmental laws and regulations set up by governments. Compliance assurance must be tailored to varied behaviour and risk-based. It requires a robust institutional framework and must be a part of the environmental cycle.

OECD legal instruments are frameworks to promote international co-operation on policy challenges, including environmental protection. These agreements, standards and guidelines support the adoption of best practices to address various environmental challenges and help Member countries transition toward sustainable and green economies.