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INNOVATION POLICY 027“Enabling the next industrial revolution: Systems innovation for green growth”14. The Forum considered how to broaden the focus of innovation beyond the ‘green sector’. This requires both a systemic approach to policy – where green considerations are incorporated from the outset; and a horizontal approach to innovation policy – one that mobilises technology, market mechanisms, regulations and social innovations to enable the transition to a low-carbon, resilient economy.The GGSD Forum built upon the OECD Project on Systems Innovation and the OECD Innovation Strategy. This collective body of work includes three strategies to transition to a systems-based approach, covering: framework policies and regulations; the public funding of basic research and the removal of barriers to private R&D investment in green technology; and the creation of “lead markets” for greener transport and sustainable buildings, namely through public procurement. Regarding framework policies, regulations need to be designed in a way that avoids stifling new firms and business models that spur green innovation. The decline in public funding for R&D needs to reverse, and barriers to long-term private R&D spending need to be addressed. Finally, public and private funding for large-scale demonstration projects is also needed (e.g. bio refineries and carbon capture and storage technologies).The OECD will continue its efforts to support governments in meeting their objectives outlined in the Paris Agreement. A more integrated, systems-based approach to innovation policy will play an important role. The Organisation is enhancing its focus on issues related to the circular economy, studying the impact of environmental policy on incumbents and new entrants to the market (i.e. firm dynamics), as well as ongoing work related to the next production revolution. We must think beyond traditional silos to deliver innovation and other policy agendas that put, not only climate, but wider environmental sustainability at their core! ■References1http://unfccc.int/resource/docs/2015/cop21/eng/10a01.pdf2OECD. (2015), OECD Economic Outlook, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/eco_outlook-v2015-2-en3www.economist.com/news/briefing/21587782-europes-electricity-providers-face-existential-threat-how-lose-half-trillion-euros; www.theguardian.com/sustainable-business/blog/utility-companies-business-model-redundant; www.iea.org/oilmarketreport/omrpublic/4OECD. (2015), Aligning Policies for a Low-carbon Economy, OECD Publishing, Paris.DOI: http://dx.doi.org/10.1787/9789264233294-en5www.oecd.org/environment/cc/ccxg.htm 6www.oecd.org/env/cc/ccxg.htm. See, for example, Ellis,J. and S. Moarif (2015), “Identifying and addressing gaps in the UNFCCC reporting framework”, OECD/IEA Climate Change Expert Group Papers, No. 2015/07, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/5jm56w6f918n-en 7www.oecd.org/env/cc/Climate-Finance-in-2013-14-and-the-USD-billion-goal.pdf 8www.oecd.org/dac/stats/climate-change.htm; www.oecd.org/env/researchcollaborative/ 9OECD. (2015), Climate Change Mitigation : Policies and Progress, OECD Publishing, Paris.DOI: http://dx.doi.org/10.1787/9789264238787-en10OECD (2015), OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015, OECD Publishing, Paris. DOI : http://dx.doi.org/10.1787/9789264239616-en; IEA (2015), World Energy Outlook 2015, OECD Publishing, Paris. DOI : http://dx.doi.org/10.1787/weo-2015-en11OECD. (2015), Aligning Policies for a Low-carbon Economy, OECD Publishing, Paris.DOI : http://dx.doi.org/10.1787/9789264233294-3-en.12The International Energy Agency, Nuclear Energy Agency and International Transport Forum. 13www.oecd.org/sti/sti-ministerial-2015.htm14www.oecd.org/greengrowth/ggsd-2015.htmABOUT THE AUTHORÁngel Gurría has served as Secretary-General of the OECD since June 2006. He was appointed to a third mandate in 2015. As Secretary-General he has reinforced the OECD’s role as a ‘‘hub’’ for global dialogue and debate on a wide range of policy issues while pursuing internal modernisation and reform. Mr Gurría is a Mexican national and came to the OECD following a distinguished career in public service in his country, including positions as Minister of Foreign Affairs and Minister of Finance and Public Credit in the 1990s. Mr Gurría holds a BA degree in Economics from UNAM (Mexico) and an MA degree in Economics from Leeds University (United Kingdom).Pictured: Ángel Gurría