Better Policies for Development 2015 POLICY COHERENCE AND GREEN GROWTH Contents Chapter 1. Insights on the transition to a universal development agenda Better Policies for Chapter 2. Implementing policy coherence for sustainable development beyond 2015 Chapter 3. Policy coherence, green growth and sustainable development Development 2015 Chapter 4. Monitoring policy coherence for sustainable development Chapter 5. How are countries adapting to the new development agenda? POLICY COHERENCE AND GREEN GROWTH Better Policies for Development 2015 POLICY C OHERENCE AN D GREEN GROWTH Consult this publication on line at http://dx.doi.org/10.1787/9789264236813-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. ISBN 978-92-64-23680-6 03 2015 04 1 P Better Policies for Development 2015 POLICY COHERENCE AND GREEN GROWTH This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2015), Better Policies for Development 2015: Policy Coherence and Green Growth, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264236813-en ISBN 978-92-64-23680-6 (print) ISBN 978-92-64-23681-3 (PDF) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: © ag visuell-fotalia.com Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2015 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of the source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD Foreword by Angel Gurría, OECD Secretary-General The 2015 edition of Better Policies for Development comes at a critical time. In 2015 – the target year of the Millennium Development Goals (MDG) – the international community is forging a new global framework for sustainable development. The post-2015 development agenda offers an unprecedented opportunity to make extreme poverty history; to place the world on a sustainable development path; and to ensure well-being and prosperity for all while protecting the planet. The universal, transformative and integrated nature of the new agenda has wide-ranging implications. The international community, including the OECD and its members, will need to adapt approaches, policy instruments and working methods to achieve the new Sustainable Development Goals (SDGs) by 2030. This report introduces the concept of Policy Coherence for Sustainable Development (PCSD) and shows how it can support the achievement of the new Goals. PCSD is a policy tool to systematically integrate the economic, social, environmental, and governance dimensions of sustainable development into policymaking, and ensuring that they are mutually supportive. This year’s edition is focused on green growth strategies. Central to achieving the SDGs, realising green growth calls for the application of PCSD to key policy areas, such as water, climate, energy, infrastructure, economic growth and development. Better Policies for Development 2015 highlights the actions involved in aligning separate – and sometimes opposing – policy objectives. The post-2015 agenda, which encompasses the new SDGs, is the result of a vast public consultation. In this spirit of inclusiveness, this year’s edition of Better Policies for Development includes contributions from key thinkers, academics, and representatives from civil society who have helped to sharpen our understanding of this new agenda and its implications for our work. The OECD’s work on policy coherence for sustainable development is one important element within a wide-ranging OECD effort to help implement the SDGs globally. I hope readers in all countries find our Better Policies for Development series to be useful as they design and implement policies that advance sustainable development. Angel Gurría, OECD Secretary-General BETTER POLICIES FOR DEVELOPMENT 2015: POLICY COHERENCE AND GREEN GROWTH © OECD 2015 3 ACKNOWLEDGEMENTS Acknowledgements This report has been prepared by the OECD Policy Coherence for Development (PCD) Unit in the Office of the Secretary-General, under the overall supervision of Ebba Dohlman, Senior Advisor, and with analytical support from Ernesto Soria Morales, Carina Lindberg and Tom Neylan. It is based on inputs from several distinguished key thinkers, national experiences from member and partner countries, and diverse perspectives from civil society and the private sector. The report also draws on analysis carried out by our colleagues in various OECD directorates and could not have been done without their advice, as well as on findings from individual projects, such as A“ ligning Policies for the Transition to a Low- Carbon Economy”. Credits also go to Marco Mira d’Ercole in the Statistics Directorate and Alexander Guschanski, Carlo Schmid intern in the PCD Unit, for compiling all inputs to the Organisation-wide mapping exercise to identify OECD indicators, policy instruments and dialogue platforms to inform the implementation of the SDGs; to Tom Neylan for reviewing and editing all external contributions; and to Katie Taylor for formatting the report. Anne-Lise Prigent, Susana García-Lorenzo and Cécilia Paymon in the Public Affairs and Communications Directorate have provided the editorial and production support services needed to realise this publication. 4 BETTER POLICIES FOR DEVELOPMENT 2015: POLICY COHERENCE AND GREEN GROWTH © OECD 2015 TABLE OF CONTENTS Table of contents Executive Summary . 9 Acronyms and Abbreviations. 11 Chapter 1 Insights on the transition to a universal development agenda . 15 Transitioning to a universal development agenda beyond 2015 . 16 Policy coherence for a stronger world economy, by Catherine Mann, OECD Chief Economist . 16 The new development agenda demands policy coherence, by Amina J. Mohammed, Assistant Secretary-General, Special Advisor of the UN Secretary-General on Post-2015 . 19 What is good for the environment is good for development, by Erik Solheim, Chair of the OECD Development Assistance Committee (DAC) . 20 Policy coherence for development in the post-2015 Sustainable Development Goals and its relationship with common but differentiated responsibilities, by Jiang Ye, Director, Institute for Global Governance, Shanghai Institutes for International Studies . 22 The imperative of policy coherence for successful implementation of the post- 2015 development agenda, by James Michel, former DAC Chair . 24 Domestic politics and policy coherence for development, by J. Brian Atwood, former DAC Chair . 26 From reduced form Millennium Development Goals to comprehensive Sustainable Development Goals: getting to the mega issues of global development, by Richard Carey, former Director, Development Co-operation Directorate, OECD and Chair, International Advisory Committee, China International Development Research Network . 29 Notes . 32 References . 32 Chapter 2 Implementing policy coherence for sustainable development beyond 2015 . 35 Introduction . 36 Adapting policy coherence approaches to the evolving global landscape . 36 Drawing lessons from the OECD Strategy on Development . 38 Shaping the new concept of Policy Coherence for Sustainable Development . 40 Building coherent and integrated approaches for implementing the post-2015 Development Agenda . 42 In my view: Integrating PCD in a post-2015 ‘beyond-aid’ framework . 46 By Niels Keijzer / Sebastian Paulo, German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) BETTER POLICIES FOR DEVELOPMENT 2015: POLICY COHERENCE AND GREEN GROWTH © OECD 2015 5 TABLE OF CONTENTS Enhancing policy coherence at multiple levels to ensure sustainable development . 49 Applying a coherent approach to fighting illicit financial flows as part of the post-2015 Development Agenda . 50 In my view: The imperative of addressing illicit financial flows in the Financing for Development and Sustainable Development Goals processes . 55 By Tom Cardamone, Managing Director, Global Financial Integrity Notes . 56 References . 57 Chapter 3 Policy coherence, green growth and sustainable development . 59 Policy coherence to drive green growth strategies . 63 Policy coherence for a low carbon economy . 72 In my view: Climate-Compatible Development . 74 By Simon Maxwell, Executive Chair of the Climate and Development Knowledge Network In my view: Business strategy can be closely