OECD agreed on policies for sustainable development

The theme of the minister conference of the Organisation for Economic Cooperation and Development, OECD, on May 17 was sustainable development. Ministers for Economy and Environment attended a joint session for the first time. The basis of the discussions where the policy recommendations for sustainable development that have been under preparation for three years.
The Finnish delegation to the conference was lead by Minister for Foreign Trade Kimmo Sasi and the vice-chairperson was Minister for Environment Satu Hassi. They both took part in the discussion.
Minister Sasi raised the following points :
The OECD’s work on sustainable development reveals that until now there has been much talk, less real action in this area of policy. Indeed, the knowledge gap and the implementation gap, as the OECD puts it, still remain the central challenges. The OECD’s work, however, offers most useful help to reduce these gaps. In particular, I want to point out three areas of action

First, market-based instruments is a natural choice to steer our economies towards more sustainable development patterns. About two months ago, the Finnish Government submitted to the Parliament its national climate strategy to meet the objectives of the Kyoto Protocol. Important elements of this strategy are energy and CO2-taxation and energy production alternatives. All forms of electricity production that are technically and economically viable and which support environmental targets, should be included as possible alternatives of energy production at this stage. Accordingly, we should openly evaluate all forms of energy production, including nuclear energy. In this evaluation, we have to pay due attention to security and diversity of the energy system.

Second, sustainable development is a global issue. Action leading to achievements needs to be based on international agreements. If agreements can not be reached, ratified and implemented, our efforts will be half-hearted.

Third, action needs to take into account all the three dimensions of sustainability. If we want to have the developing countries on board in addressing global environmental challenges, we have to be ready to facilitate the achievement of their economic and social priorities. In this regard, technology diffusion, capacity building, access to markets are key elements.

The OECD is particularly well placed and equipped to develop analytical knowledge and to select further the appropriate indicators, needed in assessing the progress towards sustainability. This would help us to understand more in detail the various interrelationships and trade-offs in sustainable development. Mere indicators are not capable of doing that. And we should recognise that indicators are not a substitute for policies and action. Incorporating sustainable development evaluation in the economic country reviews needs to be further studied.