A recent joint report by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) underscores the economic advantages of proactive climate policies. The study reveals that setting ambitious targets to reduce greenhouse gas emissions and implementing corresponding policies could lead to a net increase in global GDP by 0.23% by 2040.
The report also warns of the severe economic consequences of inaction, projecting that unchecked climate change could reduce global GDP by up to one-third by the end of this century.
Achim Steiner, executive secretary of the UNDP, emphasized the positive impact of climate investments, stating that such actions not only prevent economic regression but also contribute to modest GDP growth.
The OECD-UNDP study further indicates that by 2050, advanced economies could experience a 60% increase in GDP per capita growth, while lower-income countries might see a 124% rise from 2025 levels. Additionally, investing in emissions reductions now could lift 175 million people out of poverty by the end of the decade.
These findings challenge the notion that climate action hampers economic growth, suggesting instead that proactive measures can yield substantial economic benefits. The report advocates for enhanced Nationally Determined Contributions (NDCs) to achieve these gains.
In contrast, a study published in Environmental Research Letters warns that a 4°C increase in global temperatures could result in a 40% reduction in average individual income, highlighting the economic risks of insufficient climate action. These insights collectively emphasize the importance of integrating ambitious climate strategies into economic planning to foster growth and mitigate potential losses.
