Investing in Climate for Growth and Development: The Case for Enhanced NDCs

The OECD-UNDP report, Investing in Climate for Growth and Development: The Case for Enhanced NDCs, highlights that ambitious, implementable climate action is not only an environmental imperative but also a strategic investment in economic growth, resilience, and development. As countries submit updated Nationally Determined Contributions (NDCs) in 2025, the report showcases opportunities to align climate ambition with national development goals, mobilize finance, and deliver inclusive, sustainable growth.

Integrated National Financing Frameworks (INFFs) play a critical role in this process by embedding detailed NDC investment plans within a unified national financing strategy. INFFs help align public and private resources, guide investor decision-making, and integrate NDCs with broader development and financial strategies, supporting countries in mobilizing the resources needed to achieve their climate and development objectives.

The report also provides practical guidance for governments to maximize the impact of NDCs by:

• Building high-level political ownership across ministries, especially finance and planning, to embed climate targets in national and sectoral strategies.
  
• Aligning NDCs with national and subnational development priorities for policy coherence and maximum socioeconomic benefits.
  
• Engaging the private sector early to create investable pathways and scale up climate-aligned projects.
  
• Strengthening financial institutions and public finance mechanisms, including multilateral and domestic development banks, climate funds, and instruments such as green bonds.
• Putting affected stakeholders at the center of climate strategies to ensure a just, inclusive, and equitable transition.

By integrating NDC ambitions with national development and financing strategies, the report demonstrates how countries can translate commitments into concrete, investable actions, seizing the 2025 NDC cycle as a decisive opportunity to drive sustainable growth, mobilize finance, and deliver long-term prosperity for people and the planet.