InvestinginClimateforGrowthandDevelopment TheCaseforEnhancedNDCs InvestinginClimate forGrowthandDevelopment THECASEFORENHANCEDNDCS ThisworkispublishedundertheresponsibilityoftheSecretary-GeneraloftheOECDandtheAdministratoroftheUNDP.TheopinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficialviewsoftheMembercountriesoftheOECDnorthoseoftheMemberStatesoftheUnitedNations. ThenamesandrepresentationofcountriesandterritoriesusedinthisjointpublicationfollowthepracticeoftheOECD. AllreasonableprecautionshavebeentakenbytheUNDPandtheOECDtoverifytheinformationcontainedinthispublication.However,thepublishedmaterialisbeingdistributedwithoutwarrantyofanykind,eitherexpressedorimplied.Theresponsibilityfortheinterpretationanduseofthemateriallieswiththereader.InnoeventshalltheUNDPortheOECDbeliablefordamagesarisingfromitsuse. Thisdocument,aswellasanydataandmapincludedherein,donotimplytheexpressionofanyopinionwhatsoeveronthepartoftheOECDortheUNDPconcerningthestatusoforsovereigntyoveranyterritory,thedelimitationofinternationalfrontiersandboundariesandthenameofanyterritory,cityorareaandarewithoutprejudicethereto. ThestatisticaldataforIsraelaresuppliedbyandundertheresponsibilityoftherelevantIsraeliauthorities.TheuseofsuchdatabytheOECDiswithoutprejudicetothestatusoftheGolanHeights,EastJerusalemandIsraelisettlementsintheWestBankunderthetermsofinternationallaw. NotebytheRepublicofTürkiye Theinformationinthisdocumentwithreferenceto“Cyprus”relatestothesouthernpartoftheIsland.ThereisnosingleauthorityrepresentingbothTurkishandGreekCypriotpeopleontheIsland.TürkiyerecognisestheTurkishRepublicofNorthernCyprus(TRNC).UntilalastingandequitablesolutionisfoundwithinthecontextoftheUnitedNations,Türkiyeshallpreserveitspositionconcerningthe“Cyprusissue”. NotebyalltheEuropeanUnionMemberStatesoftheOECDandtheEuropeanUnion TheRepublicofCyprusisrecognisedbyallmembersoftheUnitedNationswiththeexceptionofTürkiye.TheinformationinthisdocumentrelatestotheareaundertheeffectivecontroloftheGovernmentoftheRepublicofCyprus. Pleasecitethispublicationas: OECD/UNDP(2025),InvestinginClimateforGrowthandDevelopment:TheCaseforEnhancedNDCs,OECDPublishing,Paris,https://doi.org/10.1787/16b7cbc7-en. ISBN978-92-64-67202-4(print) ISBN978-92-64-55657-7(PDF) ISBN978-92-64-78156-6(HTML) Photocredits:Cover©gothiclolita/Shutterstock.com. CorrigendatoOECDpublicationsmaybefoundat:https://www.oecd.org/en/publications/support/corrigenda.html. ©OECD/UNDP2025 Attribution3.0IGO(CCBY3.0IGO) ThisworkismadeavailableundertheCreativeCommonsAttribution3.0IGOlicence.Byusingthiswork,youaccepttobeboundbythetermsofthislicence(https://creativecommons.org/licenses/by/3.0/igo/). Attribution–youmustcitethework. Translations–youmustcitetheoriginalwork,identifychangestotheoriginalandaddthefollowingtext:Intheeventofanydiscrepancybetweentheoriginalworkandthetranslation,onlythetextoforiginalworkshouldbeconsideredvalid. Adaptations–youmustcitetheoriginalworkandaddthefollowingtext:ThisisanadaptationofanoriginalworkbytheOECDandtheUNDP.TheopinionsexpressedandargumentsemployedinthisadaptationshouldnotbereportedasrepresentingtheofficialviewsoftheOECDorofitsMembercountriesorofUNDP. Third-partymaterial–thelicencedoesnotapplytothird-partymaterialinthework.Ifusingsuchmaterial,youareresponsibleforobtainingpermissionfromthethirdpartyandforanyclaimsofinfringement. YoumustnotusetheOECD’sorUNDP’srespectivelogo,visualidentityorcoverimagewithoutexpresspermissionorsuggesttheOECDorUNDPendorseyouruseofthework.AnydisputearisingunderthislicenceshallbesettledbyarbitrationinaccordancewiththeUNCITRALArbitrationRulestheninforce.TheseatofarbitrationshallbeParis(France).Thenumberofarbitratorsshallbeone. Preface Governmentsaroundtheworldareatacriticalpointintheircollectiveresponsetoclimatechange,amidstglobaluncertainty,growthheadwindsandpressuresonpublicbudgets.Despitesignificantadvancementsinglobalclimateactionoverthepastdecade,2024sawglobalgreenhousegasemissionsreachanewrecord.Thismilestoneunderscoresanurgentreality:wemuststepupourefforts. Theevidenceshowsthatacceleratedclimateactioncanbeapowerfuldriverofgrowth,unlockingawiderangeofopportunitiesanddevelopmentdividends.Enrichingtheknowledgebaseinthiscriticalarea,thisjointreporton"InvestinginClimateforGrowthandDevelopment:TheCaseforEnhancedNationallyDeterminedContributions(NDCs)"bytheOrganisationforEconomicCo-operationandDevelopment(OECD)andtheUnitedNationsDevelopmentProgramme(UNDP)demonstratesthatmoreambitiousclimatepoliciescanenhanceefficiency,productivity,andinnovation,increasingglobalGDPby0.2%by2040comparedtoacurrentpolicyscenario.Moreover,byreducingtherisksofclimate-inducedevents,anEnhancedNDCscenariocouldpreventsignificanteconomiclossesandraiseglobalGDPbyupto13%bytheyear2100. Ourreporthighlightsthatambitious,implementableandinvestableNDCscansimultaneouslyaccelerateinclusiveeconomicgrowthandsignificantlyreduceemissionsoverthenext15yearsthroughincreasedinvestmentincleantechnologies,improvedenergyefficiency,andthestrategicreinvestmentofcarbonrevenues.By2040,glo