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TAXATION
Average tax revenues in the OECD remain steady as spending pressures grow
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The average level of tax revenues among OECD countries was largely unchanged in 2023 as governments sought to ease cost-of-living pressures amid growing spending challenges related to climate change and ageing populations.
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Progress in national climate policy efforts remains insufficient to achieve 2030 targets
Nationally Determined Contributions (NDCs) currently commit to a collective reduction in greenhouse gas emissions of only 14% by 2030, compared to 2022 levels, in countries covered by IPAC which produce over 80% of global GHG emissions. This is well short of the estimated 43% global emission reduction needed to limit global warming to 1.5° Paris Agreement goal according to the Intergovernmental Panel on Climate Change (IPCC).
Net-zero targets may not be fulfilled, as most current commitments lack a legal basis on which to be enforced. As of August 2024, 110 countries have pledged a net-zero target for 2050 and beyond, covering about 88% of global GHG emissions. However, only 27 countries and the EU, representing 16% of global GHG emissions, have enshrined these targets into law.
