Growth implications of climate action

The current global economic environment provides governments with an opportunity to boost economic growth while also addressing the challenges of climate change. Ensuring that growth is low-emission, resilient and inclusive can help to meet the Paris Agreement goals while also delivering on the Sustainable Development Goals. While the synergies between climate and growth policies are substantial, capitalising on them requires fiscal initiatives to scale up public and private investment in the right technologies and infrastructure, combined with a well-designed structural reform package. This chapter shows how these pro-growth reform policies can support ambitious policy action on climate change to create a “decisive transition” to a lowemission, high-growth future. It presents model simulations that combine climate action with pro-growth policies including the impacts of delaying action.