Accelerated climate action could boost global GDP by 0.2% by 2040 compared with current policies, a study showed on Tuesday, as delegates from 40 countries meet in Berlin to shape the agenda for the COP30 summit in Brazil later this year.
An analysis by the Organisation for Economic Co-operation and Development (OECD) and United Nations Development Programme said that well-designed climate policies not only cut emissions but could enhance efficiency, productivity and innovation -potentially raising output by an amount equivalent to the size of Sweden’s economy.
Investing in clean energy and efficiency drives productivity and innovation, offsetting the economic impact of policy-driven price and consumption changes, the study found. Reinvesting carbon revenues could further boost GDP and build public backing for climate action, it said.
As countries prepare to submit updated Nationally Determined Contributions (NDCs) by September – the national plans each country makes towards global climate goals – the study said NDCs provided policy certainty, giving markets the confidence to mobilise resources toward sustainable growth.
Unclear climate policies could delay private investment and cut GDP by 0.75% as early as 2030, the study warned.
The study comes as ministers from around 40 countries gather in Berlin for the Petersberg Climate Dialogue, which will focus on preparations for the UN climate conference in Belem, Brazil in November.
The Petersberg conference will be the first major ministerial climate meeting since the Trump administration withdrew the U.S. from the Paris Agreement.
“Anyone who dismisses climate action in these turbulent times as being expensive, onerous or superfluous cannot count,” German Foreign Minister Annalena Baerbock said in a statement.
Baerbock said the Petersberg conference would focus on implementing the global goals set at the 2023 Dubai climate summit, including the summit’s deal to transition away from fossil fuels, and an agreement to triple global renewable energy capacity by 2030.
(Reuters)
