Economic Opportunities Provided by Climate Targets with Implementation and Investment Plans

A report issued earlier this June by the OECD and the United Nations Development Programme (UNDP) outlines how climate policies that have "economic and social priorities can lead to higher global GDP, accelerated poverty reduction, improved energy security, and better health outcomes."

The reporft titled "Investing in Climate for Growth and Development: The Case for Enhanced Nationally Determined Contributions (NDCs)" starts by reviewing how climate action has progressed significantly over the past decade, stating that "clean energy investment has surpassed that of fossil fuels, and net-zero targets now cover almost 90% of the global economy." But they recognize that further progress is needed. "Global emissions reached a new high in 2024, and average temperatures exceeded 1.5°C for the first full year."

But there are compelling reasons to adopt policies designed to reverse climate change. The report's findings indicate that these green initiatives have economic and social benefits that reach beyond the environment.

One of the most striking benefits the report outlines is the potential to avoid economic losses if the risks of climate-induced events are reduced. "...reducing the risk of climate-induced events...could prevent significant economic losses and increase global GDP by up to 3% by 2050 and up to 13% by 2100. Actual benefits could be even greater, as current estimates are uncertain and do not fully account for the economic and social consequences of the increased likelihood of crossing tipping points, such as melting ice sheets or reversing circulation patterns in the ocean, which would lead to irreversible and severe changes in the climate system."

I've made the case to my clients for years that, if we're going to make significant progress battling the effects of climate change, we need to find compelling messages that reach people not currently committed to reversing it This report is the latest example showing that adopting green initiatives can have a tremendous upside for the economy. Including the economic benefits of any climate action in marketing and messaging is an opportunity to attract support from groups outside of those already dedicated to climate action.

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