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Investing in Climate, Investing in Growth

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This report provides an assessment of how governments can generate inclusive economic growth in the short term, while making progress towards climate goals to secure sustainable long-term growth. It describes the development pathways required to meet the Paris Agreement objectives and underlines the value of well-aligned policy packages in mobilising investment and social support for the transition while enhancing growth. The report also sets out the structural, financial and political changes needed to enable the transition.

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Policies for scaling up low-emission and resilient investment

Triggering the investment needed for low-emission and resilient economic growth requires a co-ordinated constellation of policies, spanning structural pro-growth reforms, climate policies and the broader investment environment. This chapter first considers how structural reforms can kick-start growth while also supporting the low-carbon transition. It then focuses on climate-change policies, including carbon pricing. Next, the chapter examines how policies making up the broader investment environment may be misaligned with climate objectives. If investment conditions are not conducive to low-carbon investments, even the best-designed climate policy is unlikely to be effective. Finally, the chapter considers how policy can be used to better orient public infrastructure planning and implementation towards low-carbon options, both at national and sub-national levels.

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