16 September 2014: The New Climate Economy, a project of the Global Commission on the Economy and Climate, has released a report that finds that competitive markets and consistent government policy signals are critical for businesses and investors to create low-carbon jobs and growth. The report, titled ‘Better Growth, Better Climate: The New Climate Economy Report,’ was launched at UN Headquarters in New York, US, and presented to governments, as well as to business and finance leaders.

The report counters the idea that a choice must be made between fighting climate change or achieving economic growth, and finds that governments and businesses can both improve economic growth and reduce their carbon emissions, due to technological innovation and new investment in infrastructure.

Former President of Mexico Felipe Calderón, Global Commission on the Economy and Climate Chair, called the perceived incompatibility “a false dilemma,” reiterating that “we can improve the economy and tackle climate change at the same time.”

During the launch, which comes one week before the UN Climate Change Summit, UN Secretary-General Ban Ki-moon noted that the report argues for a model where economic growth and climate action are mutually reinforcing, and shows how such a model can be built. He said domestic economic growth and investing in climate change are “two sides of one coin” and should be addressed simultaneously.

The report points to opportunities to achieve growth with lower emissions in three key sectors, namely cities, land use and energy. It finds that over the next 15 years, about US$90 trillion will be invested in infrastructure in the world’s cities, agriculture and energy systems, and that to achieve growth, governments and businesses must improve resource efficiency, invest in good-quality infrastructure, and stimulate technological and business innovation.

The report claims that governments can unlock investment and innovation by pricing carbon and establishing a level playing field through an international climate agreement, and details a ten-point Global Action Plan with recommendations for measures that will lead to net economic benefits, even before considering the climate benefits. The Commission concludes that up to 90% of emission reductions required by 2030 to “avoid dangerous climate change” could be achieved if its recommendations are implemented.

Recommendations include: accelerating low-carbon transformation by integrating climate into core economic decision-making processes; entering into a “strong, lasting and equitable” international climate agreement; phasing out incentives for urban sprawl and fossil fuel and agricultural subsidies; introducing carbon prices; reducing capital costs for low-carbon infrastructure investments; scaling up innovation in low-carbon and climate-resilient technologies, tripling public investment in clean energy research and development, and removing barriers to entrepreneurship and creativity; ensuring urban development leads to “connected and compact” cities, through, inter alia, investing in efficient and safe mass transit systems; halting deforestation of natural forests by 2030; restoring at least 500 million hectares of lost or degraded forests and agricultural lands by 2030; and hastening the shift away from coal-fired power generation, by phasing out new unabated coal plants in developed economies immediately and in middle-income countries by 2025.

The Commission intends to discuss the report with decision makers over the next six months to stimulate stronger action by governments and businesses.

The New Climate Economy, a project of the Global Commission on the Economy and Climate, was established by Colombia, Ethiopia, Indonesia, Norway, South Korea, Sweden and the UK to examine how countries can achieve economic growth while addressing climate change risks. The Commission, which includes 24 leaders from government, business, finance and economics in 19 countries, is chaired by former Mexican President Calderón, and co-chaired by Lord Nicholas Stern. [New Climate Economy Website] [Publication: Better Growth, Better Climate: The New Climate Economy Report] [UN Secretary-General Ban Ki-moon’s Statement during the Launch] [UNEP Press Release]