Climate protection as a growth engine: opportunities for the economy and the environment!

Climate protection as a growth engine: opportunities for the economy and the environment!

At a recent conference in Berlin, the OECD and UNDP presented a new report that highlights the economic viability of climate action. According to the study's findings, it is emphasized that an ambitious climate policy not only promotes the reduction of CO₂ emissions, but also acts as a motor for economic growth. The climate and energy policy goals should be seen as opportunities for sustainable development, especially given that global climate targets are falling short of expectations and CO₂ emissions continue to rise. In 2024, a new high in CO₂ emissions was recorded, which illustrates the urgency of an effective climate policy.

For 2025, the signatory states to the Paris Agreement are obliged to submit new climate plans (NDCs). So far, only 22 of 197 states have submitted these new plans. The report suggests that more ambitious NDCs could increase global GDP by around 60% between 2022 and 2040. In the long term, GDP is forecast to increase by 3% by 2050 and even by up to 13% by the end of the century. In contrast, hesitation on climate policy could depress global GDP by 0.75% by 2030, while extreme weather events in Europe could cause an annual decline of 2.3% by 2050.

Climate change and economic challenges

The reports warn of the economic damage threatened by so-called climate tipping points, such as the melting of ice sheets. These developments must be taken seriously to avoid future damage. The Secretary General of the OECD emphasizes that growth and climate goals are compatible. However, to implement the recommendations for the 2025 NDC cycle, strong political commitment, better coordination of climate and development goals and the involvement of the private sector are required.

The urgency of measures to combat climate change is also highly relevant in European climate protection policy. According to current reports from the Federal Environment Agency (UBA), the EU aims to reduce the effects of climate change and promote adaptation to it. International climate protection policies such as the UN Framework Convention on Climate Change or the Kyoto Protocol are crucial for European efforts and strategic decisions.

Renewable energy and future goals

For 2020, greenhouse gas emissions in the EU amounted to around 3 million kilotons of CO₂ equivalents. The energy sector accounts for 26%, transport 22%, industry 22%, buildings 13% and agriculture 12% of emissions. In 2020, the EU exceeded its climate targets, which called for a 20% reduction in greenhouse gases compared to 1990. This was made possible primarily by the effects of the Corona pandemic, and the goals of increasing the share of renewable energy to 20% and increasing energy efficiency by 20% were also achieved.

With its long-term strategy “A Clean Planet for All”, published on November 18, 2018, the EU aims to achieve net zero greenhouse gas emissions by 2050. The strategy is a central pillar of Ursula von der Leyen's program and the European Green Deal, which was adopted in December 2019. National energy and climate protection plans (NECPs) of the member states are mandatory for the implementation of these goals. In July 2021, the EU climate law was passed, which establishes the legal basis for greenhouse gas neutrality by 2050.

In summary, climate protection is crucial not only for the environment but also for the economy. It remains crucial that all states do their part to implement effective climate policies in order to achieve both economic and environmental goals. Repeated and committed political action is essential to ensure a sustainable future.