Outlook 2025: NDCs – critical roadmaps for climate investment
If they are ambitious enough, NDCs can provide investable pathways to deliver each country’s energy transition and keep the world on track to limit global warming
Nationally Determined Contributions (NDCs) are powerful tools in the global effort to combat climate change. NDCs are the crucial mechanism, established by the Paris Conference, through which countries commit to voluntary national actions to reduce emissions in line with the global objective of limiting global warming to well below 2C and as close as possible to 1.5C. Countries are required to submit ratcheted NDCs every five years, and the next submissions are due in early 2025. These new NDCs must do more to unlock large-scale investments in the clean technologies needed for the future. In 2024, the IEA estimates that approximately $2t will be spent on the clean energy transition. However,
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