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Ambitious Climate Action Could Boost Global Growth, Study Finds

Germany’s unsatisfactory sustainability record highlights the need for massive public investment to capture the economic gains projected by deeper emission cuts.

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Ein schlafender Eisbär
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Overview

  • OECD and UNDP compare two scenarios—7% emissions cuts by 2040 limiting warming to 2.45°C versus 34% cuts limiting warming to 1.7°C—and forecast stronger growth under the latter pathway.
  • The study projects that deeper emissions cuts would raise global economic output by 0.2% by 2040, 3% by 2050 and 13% by 2100 compared with a business-as-usual scenario.
  • Authors warn that climate protection measures will create both winners and losers in labor markets and recommend targeted support for poorer and disadvantaged households.
  • An IMK analysis finds Germany met few sustainability goals between 2020 and 2024, exposing gaps in its climate strategy and investment.
  • Observers say Germany’s recent constitutional debt rule change presents a rare chance to finance greener infrastructure and align with the EU’s call for tougher emissions targets.