Governments around the world are at a critical point in their collective response to climate change, amidst global uncertainty, growth headwinds and pressures on public budgets. Despite significant advancements in global climate action over the past decade, 2024 saw global greenhouse gas emissions reach a new record. This milestone underscores an urgent reality: we must step up our efforts.
The evidence shows that accelerated climate action can be a powerful driver of growth, unlocking a wide range of opportunities and development dividends. Enriching the knowledge base in this critical area, this joint report on "Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs)" by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) demonstrates that more ambitious climate policies can enhance efficiency, productivity, and innovation, increasing global GDP by 0.2 per cent by 2040 compared to a current policy scenario. Moreover, by reducing the risks of climate-induced events, an Enhanced NDC scenario could prevent significant economic losses and raise global GDP by up to 13 per cent by the year 2100.
Our report highlights that ambitious, implementable and investable NDCs can simultaneously accelerate inclusive economic growth and significantly reduce emissions over the next 15 years through increased investment in clean technologies, improved energy efficiency, and the strategic reinvestment of carbon revenues. By 2040, global emissions intensity could be halved compared to current levels. More integrated climate and development policies could also lift an additional 175 million people out of extreme poverty globally by 2050, enhance public health through improved air quality, and strengthen energy security and access.
The 2025 round of NDCs provides an opportunity to realise the growth and development benefits of ambitious climate action. To unlock the full potential of NDCs, countries must integrate them into broader development plans. Governments also need dedicated financing and investment strategies to strategically mobilise resources from all sources, including the private sector, to support NDC implementation. The United Nations (UN) and the OECD support countries in enhancing and implementing their NDCs, including through integrated national financing frameworks and UNDP’s flagship Climate Promise initiative.
As the UN Climate Change Conference (COP30) in Belém, Brazil, approaches, the OECD and UNDP remain committed to supporting member and partner countries in advancing ambitious and effective NDCs. Together, through decisive, evidence-based policy action and strengthened international co-operation, we can deliver sustainable prosperity, resilience and development that benefit people today and the many generations to come.
Matthias Cormann
Secretary-General
OECD
Achim Steiner
AdministratorUNDP