Climate change

The focus in climate debates on effective international cooperation has recently shifted towards alliances of small groups of pioneering countries. During the climate summit in Glasgow in 2021 (COP 26), a num­ber of such plurilateral initiatives were announced. There are several reasons for this. For one thing, the mechanisms of the multilateral Paris Agreement have so far failed to generate the necessary momentum to reduce emissions. Moreover, the urgency for acceler­ated decarbonisation and adaptation to climate im­pacts is growing. It is becoming increasingly pressing to adapt to the impacts of climate change and to find ways of dealing with irreparable loss and damage, not just in the Global South. Russia’s attack on Ukraine, geopolitical tensions, as well as short- to medium-term shifts in energy policy priorities have further complicated the situation.

Climate change is having a profound impact on people’s lives across the world. Mitigating and adapting to climate change will require major economic investment and coordinated action to transition to a sustainable, low-carbon economy. The 2022 World Trade Report explores the complex interlinkages between climate change and international trade and how international trade and trade rules can contribute to addressing climate change.

Trying to force adoption of clean energy with subsidies, regulations, and exhortations will fail. The only realistic way to spur the green transition is to develop clean technologies that can reach effective price and performance parity with dirty ones. Then markets will adopt them at scale.

The OECD-FAO Agricultural Outlook 2023-2032 provides a consensus assessment of the ten-year prospects for agricultural commodity and fish markets at national, regional, and global levels, and serves as a reference for forward-looking policy analysis and planning. Recent surges in agricultural input prices experienced over the last two years have raised concerns about global food security. This year’s Outlook demonstrates that rising fertiliser costs can lead to higher food prices. A new feature of the OECD-FAO Aglink-Cosimo model allows the impact of changing costs of the main mineral fertilisers to be analysed separately from costs of other production inputs. Based on this new feature, a scenario analysis estimates that for each 1% increase in fertiliser prices, agricultural commodity prices would increase by 0.2%. Global food consumption – the main use of agricultural commodities – is projected to increase by 1.3% per year over the next decade, a slower pace than the previous decade due to the foreseen slowdown in population and per capita income growth. This year’s Outlook also provides improved estimates for food consumption by incorporating for the first time calculation methods to estimate food loss and waste.
This report is a collaborative effort between the Organisation for Economic Co-operation and Development (OECD) and the Food and Agricultural Organization (FAO) of the United Nations, prepared with inputs from Member countries and international commodity organisations. It highlights fundamental economic and social trends that drive the global agri-food sector, assuming there are no major changes to weather conditions or policies.

Events over the past year – first and foremost the Russian invasion of Ukraine, with its immediate and long-term consequences – have both confirmed and accelerated the long-term global trends which were highlighted in last year’s Forward Look. These trends included global fragmentation, the polarisation of society, evolving economic models, and pressing environmental challenges. Their development during 2022 suggests that we are witnessing the beginning of a new era of both challenges and opportunities which may call for a far-reaching reassessment of the European model.
Russia’s war against Ukraine is the most visible and far-reaching of these developments, but it is not the only one.

Addressing the European Commission's report on trends and issues to watch, the EESC stressed that it could have helped much more if it had been involved in the foresight exercise from the start.
The EESC opinion on the 2022 Strategic Foresight Report (SFR), adopted at the March plenary session, stressed that the EESC can strengthen the EU's analysis and foresight capacities. As the eyes and ears of civil society, it is best placed to pinpoint emerging trends. As a demonstration of this, the EESC also volunteered early input to the forthcoming 2023 SFR.
The rapporteur, Angelo Pagliara, set out some of the thinking behind the opinion: "Many of the issues in the Commission's report have already been addressed by the EESC in its opinions in previous years, and we have very strong expertise and experience. So, come to us, involve us more, because we can really help you."
The 2022 SFR looks into how best to align the EU's climate ambitions and its potentially clashing digital goals, and identifies ten key areas where action is needed to maximise synergies and consistency. In this respect, the EESC calls for a strategic foresight agenda geared towards a new development model that combines economic, environmental and social sustainability and puts people at the centre.