Accelerated climate action could increase global GDP by 0.2% by 2040, compared to current policies, a study by the Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) has found. The findings come as ministers from 40 countries gather in Berlin to shape the agenda for the upcoming COP30 summit in Brazil later this year, Reuters reports.
The study highlights that well-structured climate policies go beyond emission reductions and can drive efficiency, productivity, and innovation, potentially boosting economic output by an amount equivalent to Sweden’s entire economy.
Investing in Clean Energy to Drive Economic Growth
According to the research, investments in clean energy and energy efficiency could help offset the economic disruptions caused by climate policies. The study also argues that reinvesting carbon revenues into sustainable initiatives would further stimulate GDP growth and strengthen public support for climate action.
As countries prepare to submit updated Nationally Determined Contributions (NDCs) by September, the report notes that these commitments provide policy certainty, giving markets the confidence to invest in sustainable growth. However, it also warns that a lack of clear climate policies could deter private investment and shrink global GDP by 0.75% as early as 2030.
Global Climate Talks Intensify Ahead of COP30
The findings come as the Petersberg Climate Dialogue begins in Berlin, marking the first major ministerial climate gathering since the Trump administration withdrew the U.S. from the Paris Agreement. The discussions will focus on implementing global climate goals set at the 2023 Dubai climate summit, including commitments to transition away from fossil fuels and triple global renewable energy capacity by 2030.
German Foreign Minister Annalena Baerbock emphasized the economic benefits of stronger climate action, dismissing concerns over its costs. “Anyone who dismisses climate action in these turbulent times as being expensive, onerous, or superfluous cannot count,” she stated.
The outcomes of the Petersberg conference will be critical in shaping global climate commitments ahead of COP30 in Belem, Brazil, where world leaders will negotiate the next phase of international climate policies.
