This year’s APEC Economic Policy Report discusses on the topic of Structural Reform and a Green Recovery from Economic Shocks. The main purpose of this report is to begin a discussion among APEC members about how structural reform policies, which aim at improving the conditions for growth, could also be an effective response to environmental threats and provide for the greening of our economies. It has been argued that there are tensions and trade-offs between growth and environmental sustainability. However, this report supports the contrasting view that structural reforms to promote sustainable outcomes can also promote higher rates of growth.
The APEC Economic Policy Report 2022 identifies pricing as an important component of green reforms, but it is insufficient to drive rapid and transformative change in the economy alone. In this sense, this report suggests a framework for the implementation of green structural reforms, which includes three types of measures: (1) market-based instruments, (2) regulations, and (3) complementary enabling instruments on innovation, investments and skills, among others. This combination of measures ensures a higher rate of success to achieve a green transformation.