The Paris Agreement and countries’ nationally determined contributions represent important commitments to climate action; however, a collective plan to keep the global temperature increase to well below 2ºC has not been reached and the world risks being caught in a cycle of low and uneven growth. This policy brief proposes a comprehensive approach that links inclusive growth, sustainable development and the climate goals. It builds on a sustainable infrastructure with three key pillars: strengthening and reorientation of investment strategies to exploit the significant opportunities of low-carbon, climate-resilient infrastructure; transforming finance to enable and drive change; and phasing out fossil fuel subsidies and putting a price on carbon to harness the transformative power of the market and stimulate low-carbon investment.
Amar Bhattacharya is a senior fellow at the Global Economy and Development Program at the Brookings Institution.
Ottmar Edenhofer is director of the Mercator Research Institute on Global Commons and Climate Change (MCC), founded jointly by Stiftung Mercator and the Potsdam Institute for Climate Impact Research (PIK). He is professor of the economics of climate change at the Technische Universität Berlin and deputy director, as well as chief economist, at the PIK.
Brigitte Knopf is secretary general of the Mercator Research Institute on Global Commons and Climate Change (MCC). She is responsible for the management and strategy of MCC; cooperation with universities and stakeholders from government, business and civil society; and German and European energy and climate policy (Energiewende).