Climate action makes economic sense, says the OECD
03 April 2025
The global economy could thrive if we took climate action more seriously, according to the Organisation for Economic Cooperation and Development (OECD).
They concluded that if all countries followed the path to decarbonisation outlined by the Paris Agreement, the world’s economy would gain a share equivalent to Sweden, or 0.23% of global GDP. Similar findings were discussed in a 2017 report on climate investment by the OECD.
How so? The report outlines how low-carbon economies are more efficient and secure than our fossil-fuelled ones that depend on us finding and extracting resources that will one day run out. Investments in clean, efficient energy will improve productivity and innovation, and policy certainty will encourage private investment. Extreme weather caused by climate change, like floods and wildfires, will be avoided, which could otherwise devastate Europe’s economy by 2050.
 | Laoise Murray Sadly, the EU is distracted: instead of focusing on climate action, a trade war with the US, reduced tax revenue, inflation and a lack of innovation are priorities for policymakers. All EU member states missed the deadline in February 2025 to submit revised carbon reduction plans under the Paris Agreement. However, the real deadline is September, when the plans will be analysed ahead of COP30 in Brazil. |
Welcome to The European Correspondent
Europe lacks true European media: in Germany alone, there are more media devoted exclusively to football than news outlets specialising on Europe. The established players mainly focus on Brussels and European institutions. The European Correspondent aims to change that. We cover the whole of Europe and write for a community of citizens who want to look beyond their own national borders. Without European journalism, there is no European civil society.
〉Read our manifesto
〉The stories we would like to write for you
Become a donor!
The European Correspondent is fully funded by its readers. We can only produce the newsletter with your support - and work towards the bigger project: building true European media. Donate now!
With your help, we can create true European journalism. Thank you!
We are non-profit. Every donated € goes directly into The European Correspondent.