At a crucial moment for global climate action, a new joint report from the OECD and UNDP warns that stepping up efforts against climate change is not only urgent but also profitable: global Gross Domestic Product (GDP) could increase by up to 13% by the year 2100 if countries adopt more ambitious climate plans.
The report, titled "Investing in Climate for Growth and Development: The Case for Enhanced NDCs," argues that moving toward stronger policies—through the so-called Nationally Determined Contributions (NDCs)—would not only reduce expected climate damage but also result in tangible economic gains. Specifically, a strengthened NDC strategy could raise global GDP by 0.2% by 2040 compared to the current scenario, with benefits multiplying as natural disasters and economic crises related to climate change are avoided.
“The myth that climate action means sacrificing economic growth is outdated,” the document states. Through investments in clean energy, energy efficiency, and reinvestment of revenues from carbon taxes, countries could boost productivity and encourage innovation while maintaining robust growth.
If countries fail to present more ambitious and actionable NDCs in 2025, the goals of the Paris Agreement could become unattainable
But growth is not the only benefit. The report also highlights social dividends: up to 175 million people could escape extreme poverty by 2050 thanks to climate policies that are well integrated with development priorities. Additionally, public health is expected to improve significantly, driven by better air quality and reduced reliance on fossil fuels.
Despite this promising outlook, the report warns that current efforts fall short. Global emissions continue to rise, and 2024 marked a new record. If countries fail to present more ambitious and actionable NDCs in 2025, the goals of the Paris Agreement could become unattainable, the report cautions.
The message is clear: climate plans must be integrated with national development strategies and supported by both public and private financing. Only then can climate action become a driver of inclusive and sustained growth.
Looking ahead to the upcoming COP30 climate summit in Belém, Brazil, the OECD and UNDP urge governments to seize this historic opportunity to turn their climate commitments into engines of prosperity. Because, as the report makes clear, investing in climate is not a cost—it's a winning bet for the planet’s economic future.
