New York, 10 June 2025

A new report Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs), launched today by the Organisation for Economic Cooperation and Development (OECD) and UNDP shows that aligning climate policies with economic and social priorities can lead to higher global GDP. It will be presented at the Global NDC conference, taking place from 11-13 June in Berlin, Germany.

The report 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% 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 Nationally Determined Contributions (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 realize these benefits, the report outlines a set of strategic priorities including high-level political commitment 

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at undp.org or follow @UNDP. 

Publication link: Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs)

UNDP Administrator Statement on the report: YouTube Link