World must break $7 trillion fossil fuel subsidy habit if NDCs are to be catalyst for growth: CCAG report

Today, the Climate Crisis Advisory Group’s (CCAG) latest report sets out guidance for aligning climate commitments with broader national objectives. 

The report, which follows the latest warnings from scientists on the 1.5℃ threshold, provides ten recommendations to help nationally determined contributions (NDCs) catalyse inclusive economic prosperity. The recommendations set out how such outcomes can be achieved, by increasing the number of green jobs and investment in new technology, as well as improving national standards of health and wellbeing.

Whilst the report recognises the challenges of incorporating climate action into political and social agendas, the recommendations set out guidance for policymakers on ensuring sustainable goals contribute to national interests. The report stresses that these can only be achieved by recognising the clear disconnect between ongoing fossil fuel subsidies and current goals to achieve net zero. 

Mariana Mazzucato, Professor at University College London, and Co-author and member of CCAG, commented on the report: 

“Nationally Determined Contributions aren’t technical cost burdens - they are strategic economic roadmaps capable of unlocking a new era of growth. ‍

‍“This report offers governments a clear, unequivocal blueprint for turning NDCs into inclusive, innovation-led economic engines. But to realise this potential, they must be placed at the centre of national industrial strategies, financial policies and global governance frameworks.”

‍The report’s recommendations include: 

• Driving prosperity and stability: The report calls for a repositioning of NDCs as prosperity plans, and for policy to unlock climate finance and investment, to help scale sustainable capital and an inclusive green workforce. 
• Building healthy, resilient communities: It also stresses the continued need for investment in mitigation and resilience to climate change. In particular, the report spotlights the need to empower local and indigenous communities to implement tailored climate solutions. 
• Ensuring effective and equitable implementation: To achieve a just transition, the report outlines the governance, institutional discourse, and accountability mechanisms required for delivering on NDCs. It advocates for stronger transparency, robust tracking systems, and inclusive decision-making processes to ensure equitable outcomes.
• Accelerating action and ambition: Finally, the report calls for the urgent, scaled deployment of existing low-carbon technologies. It also stresses the need for a fundamental mindset shift towards seeing NDCs as dynamic, flexible tools for continued progress on climate change. 

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Chair of the Climate Crisis Advisory Group Sir David King said: 
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‍“We’re spending over 7% of global GDP – $7 trillion a year – propping up the fossil fuels driving the climate crisis. That’s more than the world spends on education annually.‍

"There is one learning we should take from this report: if NDCs are serious tools for change, global leaders must commit to ending this perverse financing and redirect it toward clean energy, resilience, and public good. We cannot build a liveable future while funding our own destruction.”‍

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Click here to read NDCs as Levers for Prosperity, Health and Resilience: 10 Transformative Recommendations for Climate Action. ‍

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