The report, titled Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs), highlights how climate action has progressed significantly over the past decade, with clean energy investments surpassing those in fossil fuels, and net-zero targets now cover almost 90 per cent of the global economy. Yet these efforts remain insufficient.
Global emissions reached a new high in 2024, when average temperatures exceeded 1.5°C for the first full year. The Paris Agreement requires countries to submit more ambitious climate plans every five years to reduce greenhouse gas emissions and adapt to climate impacts and risks through NDCs.
The 2025 round of NDCs provides a timely opportunity for countries to renew their commitments. By the end of May 2025, 22 countries had submitted their new NDCs, with many more expected to be put forward ahead of the 30th UN Climate Change Conference (COP30) in November.
This OECD-UNDP report analyses how enhanced NDCs, if well-designed and supported by strong implementation frameworks, can accelerate inclusive economic growth while also reducing emissions. The economic case becomes even stronger when considering avoided economic losses if the risk of climate-induced events is reduced.
"This report shows that the transition towards cleaner, greener economies can actually spur GDP growth – not hinder it,” UNDP administrator Achim Steiner said. “As we look to the future, it is clear that green economies will drive industry, mobility, energy systems, and more. Enhanced NDCs, helped along by UNDP’s Climate Promise, are therefore a resounding commitment to the Paris Agreement and the Climate Convention to raise ambition and a smart investment in driving development, growth, and progress.”
“The evidence shows that countries can support growth, development, and resilience while raising climate ambition,” OECD secretary-general Mathias Cormann said. “With the right policies in place, ambitious climate targets can help align public and private investment with a low-emissions future, reduce poverty, and promote energy security. The economic case for more ambitious, investable, and implementable climate strategies is clear.”
The data presented demonstrate that climate action can lead to positive economic outcomes, even beyond GDP growth. To help countries realise these benefits, the report outlines a set of strategic priorities including high-level political commitment.
ALCHEMPro News Desk (RR)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
