Investing in Climate Action Yields 15-Fold Economic Benefits, Says UNEP

Investing US$1 in climate and air pollution solutions yields US$15 in economic benefits, says UNEP and CCAC report.
Credits: Duncan Moore / UNEP

Nairobi, 07 September 2026 – Investing in Climate and Clean Air Yields Economic Gains

New insights from the UN Environment Programme (UNEP) and the Climate and Clean Air Coalition (CCAC) suggest a high return on investments aimed at addressing climate change and air pollution. For every dollar spent, an estimated $15 in economic benefits can be realized, marking a significant advantage over tackling these issues in isolation. The findings were revealed in a report unveiled on the International Day of Clean Air for blue skies.

The report, titled Hidden assets: The economic and health case for climate and clean air action, is a pioneering global economic assessment of combined climate and air quality measures. UNEP’s Executive Director, Inger Andersen, emphasized the value of clean air, stating, “Clean air is a key driver of development, health, food and energy security, and climate stability – an asset we must invest in.”

The Financial Payoff of Proactive Measures

The report outlines 25 measures that, if implemented, could result in annual economic benefits equating to 2.8% of global GDP by 2035, rising to 11.4% by 2100. By comparison, fossil fuel subsidies accounted for 2.18% of GDP in 2022, while healthcare expenses were 9.3% in 2023.

Delaying action could forfeit over $1.5 trillion each year, representing 0.5% of GDP in combined benefits. The measures promise a return of $4 for each dollar invested, even when excluding non-market welfare benefits. Elliott Harris, co-chair of the Assessment, remarked, “A benefit-cost ratio of 15 to 1 would attract capital instantly in almost any other sector.”

The Human Toll of Air Pollution

Integrating climate and air quality actions not only yields economic gains but also substantial health benefits. In 2025, air pollution from human activities contributed to approximately 6.4 million premature deaths globally, with household pollution causing an additional 2 million deaths.

The report uniquely considers the economic impact of pollution-related illnesses, noting that outdoor air pollution in 2025 led to 5.5 million new asthma cases in children and 2 million new cases of dementia, among other health issues.

Comprehensive Strategies for Change

The report’s 25 measures span sectors like energy, industry, and transport, focusing on both long-term decarbonization and the reduction of pollutants like methane and black carbon. Strategies include enhancing renewable energy, implementing clean cooking solutions, and advancing vehicle emission standards.

By 2050, these measures could prevent 144 million premature deaths related to air pollution and substantially reduce cases of chronic diseases. Immediate action could halve global carbon dioxide emissions by 2050 and cut methane emissions by 60%.

Bridging the Implementation Gap

Despite the clear benefits, obstacles such as fragmented decision-making and weak government coordination hinder progress. Overcoming these barriers could accelerate implementation and unlock up to $10 trillion in health benefits by 2040.

“This report provides the most rigorous evidence yet that treating climate change and air pollution as separate problems causes us to underestimate the benefits of tackling either,” said Simon Dietz, Co-Chair of the Assessment and Professor of Environmental Policy at the London School of Economics.

For further details, the UNEP and CCAC websites offer comprehensive information and resources to guide policy and investment in these critical areas.

Original Story at www.unep.org