In an era where human development faces multiple structural challenges, the ability to address the intertwined problems of the environment, economy, and society with systemic thinking is becoming a key proposition for global governance. The "triple environmental crisis" comprising climate change, biodiversity loss, and pollution urgently needs resolution, while population aging and the wave of artificial intelligence (AI) are reshaping the operational logic of future societies. Faced with these complex, cross-border issues, establishing effective international cooperation frameworks and market incentive mechanisms is more critical than ever.
Against this backdrop, a dialogue was held with Tamas Hajba, the China Representative of the Organisation for Economic Co-operation and Development (OECD), to explore systemic solutions from an international organization's perspective. He elaborated on how innovative financing mechanisms can mobilize private capital to address the environmental crisis, analyzed the pathway for companies to transition from diverse ESG practices to systemic "Responsible Business Conduct" (RBC), and outlined prospects for China-EU cooperation in key areas such as environmental governance and tax reform. He also prospectively analyzed the challenges and opportunities presented by an aging society and the AI era, emphasizing the importance of evidence-based policy-making and international knowledge sharing.
"The Triple Environmental Crisis": Tackling Environmental Governance Challenges Through Systemic Financing Hajba emphasized that the world is facing a "triple environmental crisis" consisting of climate change, biodiversity loss, and pollution. He noted that while global focus has long been concentrated on climate change and the low-carbon transition, the importance of biodiversity protection for governments and businesses is increasingly prominent following related summits under the Montreal Protocol framework. Simultaneously, pollution is directly eroding the quality of daily life. Citing China's experience with severe air pollution and subsequent significant improvements, Hajba pointed out that many countries still face serious challenges in this area. Therefore, he argued for a systemic and integrated approach to these three crises.
When discussing the implementation paths of international plans like the Paris Agreement, Hajba identified funding as a key obstacle. He stated that climate goals are difficult to achieve without sufficient and targeted financial support. Currently, climate finance relies heavily on public funds, but the slow post-pandemic global economic recovery, coupled with debt pressures and fiscal constraints, limits government investment capacity. Hajba highlighted OECD monitoring showing that climate finance for emerging markets and developing economies needs to quadruple by 2030. This makes mobilizing private capital particularly urgent. However, according to an OECD report, private sector financing currently accounts for only about one-fifth of total climate investment, indicating significant room for growth.
To address this, Hajba proposed three pathways: first, exploring the use of blended finance models; second, leveraging the leadership of public policy banks and development finance institutions (such as China Development Bank); and third, utilizing the synergistic power of multilateral development banks (like the World Bank, Asian Development Bank, and Asian Infrastructure Investment Bank). He stressed that these financial institutions must deeply integrate goals related to climate change mitigation, biodiversity protection, and pollution control into their corporate governance and decision-making systems to ensure their activities genuinely address the governance needs of the triple environmental crisis.
The Transition Path from Diverse ESG to Systemic RBC Hajba pointed out that businesses have a responsibility in addressing the triple environmental crisis, an expectation reflected in principles and metrics like ESG (Environmental, Social, and Governance). However, he also highlighted challenges in the current ESG landscape: a lack of globally unified standards creates confusion for companies; imbalances exist between different ESG frameworks, such as an overemphasis on corporate governance while weakening substantive assessment of environmental or labor rights impacts; and current evaluations often focus on corporate "inputs" rather than actual performance outcomes.
Therefore, Hajba emphasized the OECD-advocated concept of "Responsible Business Conduct" (RBC). He explained that this is based on the OECD Guidelines for Multinational Enterprises, established in the 1970s and updated in 2023. These guidelines reflect government expectations, requiring companies to identify and manage potential adverse risks and impacts of their operations (including entire supply chains) on the environment, society, human rights, labor rights, and anti-corruption. The OECD provides a general "Due Diligence Guidance for Responsible Business Conduct" applicable across sectors, as well as specific guidance for key industries like agriculture, minerals, and textiles, offering detailed instructions for a risk-based six-step due diligence process.
Hajba stressed that this RBC standard has been incorporated into many national laws related to sustainable supply chains. For instance, the EU's Corporate Sustainability Due Diligence Directive (CSDDD) draws on the OECD's RBC standard. He noted that companies adhering to this standard can better meet regulatory and audit requirements. Furthermore, the standard integrates UN principles and fully incorporates requirements related to climate change, biodiversity, and pollution. It calls on companies not only to identify risks but also to take responsible action to support the achievement of international climate and biodiversity goals.
Hajba also mentioned a major OECD initiative—the Inclusive Forum on Carbon Mitigation Approaches (IFCMA). He described it as a platform designed to allow all countries—regardless of size or development level—to participate equally, learn from each other, and share policy and practical experiences. He emphasized that the forum's focus is not on ranking or imposing rules, but on mapping global policies and identifying effective practices to help countries achieve Paris Agreement goals. Hajba noted that China is very active in the IFCMA's technical work and is a leader in the application and commercialization of clean technologies. The OECD looks forward to deepening cooperation with China in this area.
Hajba reiterated the importance of addressing climate change from both macro-policy and corporate practice perspectives. He concluded that global goals must be translated into language businesses understand, with concrete support provided. While large companies may have resources for dedicated departments, small and medium-sized enterprises (SMEs) especially need such practical guidance and support.
The Value and Compliance Advantages of Responsible Business Conduct Hajba believes that adhering to Responsible Business Conduct principles signifies far more than a moral practice, guarantee, or incentive; it essentially represents a serious commitment—to proactively consider the potential negative impacts of business operations on the environment, society, and other key areas.
In his view, this commitment aligns with the growing expectations of global business partners and governments. He pointed out that companies themselves are increasingly inclined to partner with those following such principles. For example, when a company conducts due diligence on its supply chain or is assessed by partners, compliance with relevant standards smoothens the process. Hajba believes this ultimately provides crucial support for business success.
Furthermore, Hajba highlighted a practical value: RBC principles and standards are now integrated into numerous legal and regulatory frameworks worldwide. He stated that this integration particularly aids corporate compliance in multinational operations. If a company is already familiar with or adheres to these standards, navigating different regulatory requirements becomes significantly less burdensome, thereby reducing barriers to global operations.
Two Key Directions for Future China-EU Cooperation: Environmental Governance and Tax Reform Hajba stressed that despite various difficulties, including geopolitical challenges, international cooperation is more important now than ever. Maintaining communication and continuing collaboration remain indispensable. He noted that the OECD and China have cooperated for three decades, with China being a key partner.
Hajba explained that this cooperation covers multiple policy areas and is mutually beneficial. On one hand, China contributes rich experience, knowledge, and data to OECD databases, supporting the organization's policy analysis, research, and standard-setting. On the other hand, the OECD's knowledge base, data, and policy recommendations have long assisted and supported China's reform process. Hajba described the OECD as a "one-stop platform" integrating policies and best practices from its member countries and other global economies.
In Hajba's view, the scope for bilateral cooperation is vast, encompassing environmental governance, taxation, macroeconomics, responsible business conduct, corporate governance, education, agriculture, chemicals management, development cooperation, science and technology policy, and more.
When asked how and in which specific areas China could further deepen cooperation with the world (including OECD countries), Hajba emphasized focusing on the most pressing global challenges. He identified the aforementioned "triple environmental crisis" as the most urgent issue. He noted that these challenges affect all countries and cannot be solved by any single nation alone. Therefore, evidence-based cooperation is crucial, requiring the collection of comparable data and open policy dialogue as support. He stressed this is not about prescribing policies or ranking countries, but about maintaining communication, mutual learning, and acknowledging different national conditions and development paths.
Another key area Hajba highlighted is international taxation. He stated that taxation is a primary revenue source for all countries, but the digital economy complicates tax systems, potentially allowing multinational companies to shift profits to low-tax jurisdictions. The OECD has been leading international efforts in this area, particularly through the Base Erosion and Profit Shifting (BEPS) project aimed at ensuring fairer tax rights distribution. Hajba pointed out that China has been an indispensable part of this multilateral cooperation, both as a staunch supporter and an active participant. Given China's robust tax system, ongoing reforms, and extensive international economic engagement, continued cooperation in this area is vital not only for China but for all countries seeking a balanced and fair international tax framework.
Challenges and Opportunities in an Aging Society and the AI Era When discussing major future trends shaping the world, Hajba pointed to several key directions, such as population aging and AI. He believes these developments require broad and rigorous analysis—focusing both on their challenges and the opportunities they present.
He explained that aging will alter labor and skill demands at both national and corporate levels. Simultaneously, it will open new possibilities in the silver economy, health industry, care services, and services for the elderly.
Regarding AI, Hajba described it as a rapidly evolving field requiring continuous attention, assessment, and analysis. Similar to aging, AI presents significant opportunities—such as boosting productivity and advancing healthcare—but also comes with notable risks and challenges. A primary challenge is the pace of AI technological change, which outstrips the ability of policymakers and society to keep up. Hajba contrasted this with the early digitalization phase (like the adoption of mobile communication technology), which progressed gradually over decades, whereas AI's development rhythm is much faster.
He also pointed to serious concerns about AI trustworthiness, including potential operational and reputational risks. To address these issues, Hajba outlined relevant OECD work: establishing a policy observatory to track AI policies in member countries and regularly updating the OECD AI Principles. Another key effort involves using specialized reporting mechanisms to collect data on AI incidents, thereby identifying emerging risks and enabling more foresightful governance strategies.
In Hajba's view, analysis of aging and AI must be grounded in solid evidence, data, and best practices. Precisely for this reason, he emphasized the importance of international cooperation—including with China—to pool broader evidence, develop policy recommendations, and help establish common standards.
He further clarified that businesses need a supportive policy environment, including education policies, incentives, and job creation mechanisms, to tackle the dual challenges posed by aging and AI and seize related opportunities. Without such policies, businesses will struggle to adapt. For instance, as AI transforms labor markets, companies will increasingly need employees with digital and AI-related skills. However, Hajba mentioned that in 2023, only about 8% to 9% of firms with more than ten employees were actively using AI, indicating low but rapidly growing penetration. Therefore, policies promoting relevant education and training are crucial.
Returning to the topic of aging, Hajba noted that while the silver economy offers opportunities in long-term care and services for the elderly, a key question is the source of the necessary labor force. Developing talent—not only through higher education but also via vocational education and training—is essential. The OECD is working on how to assess and improve vocational education systems to better meet such needs.
Hajba concluded by stressing the importance of knowledge sharing. Governments, local authorities, and industry associations have a responsibility to communicate effectively with businesses—informing them of existing policies, incentives, and potential opportunities, such as the benefits of hiring older experts. In this way, they can help businesses navigate the complex landscape shaped by the powerful dual trends of aging and AI.
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