UNEP Report: Every $1 Invested in Climate and Clean Air Action Could Deliver $15 in Benefits

Every US$1 invested in integrated action on climate change and air pollution could generate around US$15 in economic benefits, according to a new report by the UN Environment Programme (UNEP) and the Climate and Clean Air Coalition (CCAC).

Titled ‘Hidden Assets: The Economic and Health Case for Climate and Clean Air Action,’ the report provides a comprehensive global economic assessment of measures that tackle climate change and air pollution simultaneously.

The study examines 25 solutions across energy and fossil fuel systems, industry, transport, agriculture and food systems, household cooking and heating, and waste management.

Economic Benefits Could Reach 11.4% of Global GDP by 2100

According to the report, implementing the 25 measures could generate annual economic benefits equivalent to:

• 2.8% of global GDP by 2035
• 4.5% of global GDP by 2050
• 11.4% of global GDP by 2100

The report puts these potential gains in perspective by noting that fossil fuel subsidies accounted for 2.18% of global GDP in 2022, while healthcare spending represented 9.3% of global GDP in 2023.

The estimated US$15 return for every US$1 invested includes lower healthcare costs, improved labour productivity and avoided physical damage. It also factors in the economic value of preventing premature deaths and improving health and well-being.

25 Solutions to Tackle Climate Change and Air Pollution

The recommended measures combine long-term decarbonisation with action against short-lived climate pollutants and major air pollutants.

These include transforming power generation, improving industrial energy efficiency, shifting households towards cleaner energy, promoting clean cooking and heating, expanding electric vehicles, strengthening vehicle emission standards, improving livestock and manure management, encouraging dietary changes, and improving solid waste and wastewater management.

The measures specifically target pollutants such as methane, black carbon and hydrofluorocarbons (HFCs), alongside carbon dioxide and other harmful air pollutants.

Emissions Could Fall Sharply by 2050

Compared with the report’s baseline scenario, immediate implementation of the measures could halve global carbon dioxide emissions by 2050.

Methane emissions could fall by around 60%, while major air pollutants including black carbon, sulphur dioxide and nitrogen oxides could decline by about 70%.

The combined action could avoid approximately 0.34°C of global warming by 2050 and 1.4°C by 2100, according to the report.

Barriers to Climate and Clean Air Action

The report identifies fragmented decision-making, limited enforcement capacity and weak coordination among governments as major institutional barriers to integrated climate and air pollution policies.

To address these challenges, UNEP and CCAC recommend:

• Making integrated climate and clean air policy a core economic strategy.
• Investing early and consistently in the conditions needed to implement policies.
• Prioritising rapid measures that can deliver near-term results.
• Aligning international cooperation with implementation and financing needs.
• Strengthening data and monitoring infrastructure to support decision-making.

The 2026 report was released on the International Day of Clean Air for Blue Skies, observed annually on September 7.