The new "OECD Environmental Outlook to 2050: The Consequences of Inaction" released on March 15, presents the latest projections of socio-economic trends over the next four decades, and their implications for four key areas of concern: climate change, biodiversity, water and the health impacts of environmental pollution. The aim is to find what will be the future of the environment if the world does not adopt more ambitious green policies and to suggest possible solutions.

According to the report, based on models jointly developed by the OECD and the Netherlands Environmental Assessment Agency, the costs of inaction could be extremely high, both in economic and human terms.

If the current trend remains unchanged, world energy demand in 2050 is expected to be 80% higher and still 85% reliant on fossil fuels. This could lead to a 50% increase in greenhouse gas (GHG) emissions globally and worsening air pollution, which could therefore become the top environmental cause of mortality worldwide.Global biodiversity is projected to decline by a further 10%, while global water demand would increase by around 55%, exacerbating the conflicts between the various demand sectors such as agriculture, manufacturing, domestic use.

The report then provides a number of policy measures likely to tackle effectively the key problems. Among them, the use of environmental taxes and emissions trading schemes to make pollution more costly than greener alternatives, the abandonment of environmentally harmful subsidies to fossil fuels or wasteful irrigation schemes and the support to green innovation.

The report underlines how these environmental challenges cannot be addressed in isolation and must be managed in the context of other global challenges, such as food and energy security, and poverty alleviation. Well-designed policies to tackle environmental problems can also help to address other environmental challenges, and contribute to growth and development.

For more information please visit the OECD website