Achieving Net Zero by 2050: OECD’s Strategy for Climate Action and Economic Resilience

The OECD’s 2025 publication Fast-tracking Net Zero by Building Climate and Economic Resilience offers a compelling and urgent call to accelerate climate action. Drawing from the expertise of more than 20 OECD research bodies, including the Environment Directorate, Centre for Skills, Centre for Tax Policy and Administration, the International Energy Agency (IEA), and the Development Co-operation Directorate, the report lays out a practical and data-rich roadmap to achieving net-zero emissions while strengthening economic resilience. With 2024 recorded as the hottest year in history and average temperatures exceeding 1.5°C, recent disasters like wildfires in Los Angeles and floods in Spain underscore the global risks of inaction. Yet, the report maintains, net-zero targets remain within reach if countries act fast and with deep coordination.

Green Industry and the Power of Tipping Points

The transformation required to meet climate targets is sweeping. Even if all existing Nationally Determined Contributions (NDCs) under the Paris Agreement were fully implemented, they would fall short of limiting temperature rise. What’s needed is an economy-wide transformation supported by robust governance, finance, and public buy-in. One of the most potent tools, the report suggests, is green industrial policy. By using targeted subsidies, procurement, and infrastructure investment, governments can push emerging technologies past “tipping points,” where market forces sustain adoption and growth. This has already occurred in solar photovoltaics, where global costs dropped by 80–90% each decade, largely due to policy incentives and learning-by-doing effects. But the report warns that poor policy design can cause market distortions, crowding out innovation and sparking subsidy races that marginalize low-income countries. The need for well-coordinated, transparent, and competitive market systems is greater than ever.

Methane and Consumer Behaviour: Untapped Opportunities

While carbon dioxide dominates most climate discourse, the report highlights methane abatement as a fast, cost-effective way to reduce short-term warming. Methane is over 80 times more potent than CO₂ over 20 years, but has a shorter lifespan in the atmosphere, making immediate reductions highly impactful. The Global Methane Pledge, signed by over 150 countries, aims to reduce emissions by 30% from 2020 levels by 2030. Still, regulatory follow-through is weak. The report shows that reductions in energy, agriculture, and waste sectors are achievable with existing technology. Agriculture alone accounts for 43% of methane emissions, which can be addressed through improved livestock feed, rice irrigation management, and manure handling. Meanwhile, the waste sector, especially food loss, offers massive untapped potential. High-income households waste 20–25% of their food supply, and reducing this could save USD 120–300 billion annually.

On the demand side, the report notes that consumer behaviour remains a largely underutilized tool for emission reduction. Behavioural changes in diet, energy use, transport, and product consumption could reduce emissions in key sectors by up to 70% by 2050. Many people are willing to pay a premium for sustainable goods, but a lack of infrastructure, trust, and information hinders action. Governments are encouraged to leverage behavioural science to improve policy design and address issues like greenwashing. Accurate carbon labelling, smart incentives, and infrastructure upgrades could empower consumers to drive market shifts toward low-carbon products and services.

Governments Must Lead by Example

Reforming public governance is central to enabling the net-zero transition. The report reveals that while most countries have set net-zero targets, only 27 countries and the EU have embedded them in law. Moreover, only 13% of OECD countries have mechanisms to resolve policy conflicts across departments. National governments must take the lead by aligning budgets with emissions goals, integrating climate into infrastructure and procurement, and strengthening public sector capacity. Local and subnational governments, which are responsible for two-thirds of climate-related public investment, also require more financial and technical support.

Green budgeting, climate-friendly procurement, and administrative training are critical. However, many countries are still in early stages, focused more on tracking expenditures than driving outcomes. The report also stresses the importance of greening government operations, from energy use and fleet management to office practices. Legal frameworks to improve transparency, reduce lobbying influence, and ensure accountability, including environmental courts and tribunals, are vital in safeguarding progress.

A Just Transition for All: From Workers to Women to Developing Nations

Crucially, the report frames climate action as a social contract that must be inclusive and just. Workers in high-emission industries, who tend to be older, male, and live in rural areas, face a significant risk of displacement. Meanwhile, small and medium-sized enterprises (SMEs) lack access to capital and the capacity to transition. Women remain underrepresented in green jobs and training programs, and only a handful of countries integrate gender equality into climate strategies. Education is shown to be a powerful equalizer: people with higher educational attainment report significantly greater personal responsibility for climate action.

The report calls for place-based approaches that address the specific needs of regions and groups. Upskilling programs, wage insurance, green career guidance, and support for women entrepreneurs are all recommended. At the global level, developing countries face massive gaps in climate finance and infrastructure. The new COP29 goal of USD 1.3 trillion in finance annually by 2035 is ambitious but necessary. It will require expanded public-private partnerships, blended finance tools, and deep cooperation to overcome structural barriers.