Later this year, dozens of countries that have signed the Paris Agreement are due to submit new national climate plans, or Nationally Determined Contributions. Done right, experts say these plans could not only rein in the greenhouse gases driving climate change. They could also serve as blueprints for reducing poverty, improving human health, bolstering food security and expanding energy access, all while creating trillions of dollars in investment opportunities.
When we talk about climate change, we usually talk about what we stand to lose as the planet warms, says Martin Krause, Director of the Climate Change Division at the United Nations Environment Programme (UNEP). But we need to talk more about the society-altering gains we could make by addressing climate change.
With that in mind, here are some of the biggest benefits of climate action, according to the experts.
Climate action can create jobs and generate investment opportunities
The transition to clean energy has been called one of the greatest business opportunities since the Industrial Revolution. In 2024 alone, investments in climate-friendly energy projects reached US$2.1 trillion, according to Bloomberg, and still have room to grow. Meanwhile, reaching net-zero greenhouse gas emissions by 2050 could drive global gross domestic product 7 per cent higher, says the International Monetary Fund, and create 14 million clean energy jobs, finds the International Energy Agency.
Climate action can save lives and improve human health
Extreme weather events, which are being turbo-charged by climate change, have caused over 2 million deaths and $4.3 trillion in economic losses over the last 50 years. Slowing global warming and adapting to the impacts of climate change would reduce this growing burden. In fact, it could head off an estimated 14.5 million deaths and $12.5 trillion in economic losses, finds the World Economic Forum.
The benefits dont stop there. Many sources of outdoor air pollutionlike carsare also sources of carbon dioxide and other greenhouse gas emissions. Limiting this pollution would save millions of lives and hundreds of billions of dollars in healthcare costs each year.
It can save people money
Every year, consumers and businesses waste staggering amounts of energy. That not only costs them money but also contributes needlessly to climate change.
According to the International Energy Agency, energy efficiency measures could save households globally US$201billion on electricity and gas by 2040.
Accelerating the transition to renewable energy also helps countries economize. The costs of renewable energy, such as wind and solar, are often below those of fossil fuel-fired alternatives. For example, Canada could save up to 15 billion Canadian dollars (US$10.5 billion) per year in energy costs by transitioning its electricity grids to net-zero by 2050, found the International Institute for Sustainable Development. That would save the average Canadian household 1,500 Canadian dollars (US$1,000) annually.
It protects nature and biodiversity
Humanity relies on nature and biodiversity for everything: from food and water to breathable air and building supplies. Over half of the worlds gross domestic product is in fact moderately or highly dependent on nature, according to the World Economic Forum.
But climate change and the loss of nature are inextricably linked. Conversion of nature, such as deforestation, is responsible for a large chunk of greenhouse gas emissions, while climate change drives phenomena such as wildfires and desertification, which destroy nature.
Sustainably managing and restoring ecosystems is a major solution to the climate crisis. According to UNEPs Emissions Gap Report 2024, reduced deforestation, increased reforestation and improved forest management alone could deliver around 20 per cent of the cuts needed by 2030 to meet the Paris Agreement goals. Meanwhile, restoring 15 per cent of degraded land and halting conversion could avoid up to 60 per cent of expected species extinctions.
It builds national security
Climate change is a threat multiplier to security concerns, increasing conflict over scarce resources such as water and land, and driving forced migration. At tleast 25 million people are predicted to migrate by 2050 as a result of climate change. Acting to lower emissions and build resilience will create better conditions for peace and reduce forced migration easing pressures on borders and budgets by protecting natural resources.
In addition, countries that invest in renewables and energy efficiency become less vulnerable to volatile fossil fuel prices by reducing imports.
The Sectoral Solution to the climate crisis
UNEP is at the forefront of supporting the Paris Agreement goal of keeping global temperature rise well below 2C, and aiming for 1.5C, compared to pre-industrial levels. To do this, UNEP has developed theSectoral Solution, a roadmap to reducing emissions across sectors in line with the Paris Agreement commitments and in pursuit of climate stability. The six sectors identified are: energy; industry; agriculture and food; forests and land use; transport; and buildings and cities.
