Beyond addressing climate change, the low carbon transition can also support growth, competitiveness, energy security and resilience. From 2015 to 2022, global GDP grew by 22%, while emissions grew by only 7%. Joint OECD-UNDP analysis also shows that enhanced Nationally Determined Contributions (NDCs) could boost global GDP by 0.2% by 2040 compared with current policies. When avoided climate damages are considered, the benefits of greater climate ambition become even clearer.

At the same time, the costs of inaction are already visible and increasing. Under current policy trajectories, climate change is projected to reduce global GDP by around 2-29% by 2100 relative to a no-warming scenario.

OECD work evaluates how policies focused on accelerating implementation can help translate progress in the real economy into stronger economic performance, greater resilience and enhanced security.  

Public budgets alone cannot cover the scale of investment needed in renewable energy, resilient agriculture, infrastructure and new green industries. Private capital must be mobilised to drive investments, especially in emerging market and developing economies (EMDEs).

The OECD supports governments in EMDEs and engages with the broader international financial ecosystem to make national climate plans investable, mobilise finance at scale and address barriers to accessing finance.

Our work has a growing focus on mobilising private finance and investment for the clean energy transition and electrification across three priorities: electrifying end-use sectors such as industry, including through greater energy efficiency; financing transmission grids and increasing system flexibility; and accelerating renewable power deployment.

International evidence remains limited on which policies and policy combinations can deliver emissions reductions at the scale required, when they work best and what their economic and social impacts are. Filling these data gaps and building sufficient capacities in Ministries of Environment and related institutions is essential to help governments develop more ambitious and implementable Nationally Determined Contributions (NDCs) while balancing climate objectives with growth, employment, equity, fiscal sustainability and energy security priorities. The OECD works closely with countries to support these efforts.

To help build this evidence, the OECD launched the IFCMA Climate Policy Database at the end of 2025. The database brings together standardised and granular information on the design and emissions coverage of mitigation policies implemented across more than 60 OECD Members and partner countries. The OECD is also analysing and evaluating the effects of different policies and policy combinations on greenhouse gas emissions as well as wider environmental, economic and social outcomes.

Lastly, the OECD-IEA Climate Change Expert Group (CCXG) continues to support the international negotiations under the UNFCCC. This year, CCXG work has focused on key negotiation items on the agenda at COP31 including the start of the second global stocktake (GST2) process, next steps for making the Belém Adaptation Indicators operational and the future of the mitigation work programme.