Ambitious climate targets that are underpinned by robust implementation and investment plans can provide economic opportunities, unlock investment, and support sustainable development and growth, while facilitating low-emission transitions, according to a new joint report by the OECD and the United Nations Development Programme (UNDP).

‘Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs)’ shows that aligning climate policies with economic and social priorities can lead to higher global GDP, accelerated poverty reduction, improved energy security and better health outcomes.

While climate action has progressed significantly over the past decade – clean energy investment has surpassed that of fossil fuels, and net-zero targets now cover almost 90% of the global economy – the report points out that further progress is needed.

Under the Paris Agreement, countries are required to submit new climate plans every five years to further 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 to lift countries’ collective ambition.

The OECD-UNDP report analyses how enhanced NDCs, if well-designed and supported by strong implementation frameworks, can simultaneously accelerate inclusive economic growth and reduce emissions.