New national climate plans needed for economic growth, says UN's Stiell

Business Standard

20-05-2025

National climate plans must be updated to address economic uncertainty and help growth, said Simon Stiell, the UN's climate change executive secretary, at the 2025 Nature Summit in Panama.
A 'new generation' of nationally determined contributions (NDCs), as such climate plans are called, is relevant in light of geopolitical shifts and trade wars, he said. As many as 178 of the 195 member countries of the United Nations Framework Convention on Climate Change (UNFCCC) are expected to submit their NDCs in preparation for the 30th Conference of the Parties (COP30).
Stiell said that new climate plans must focus on growth — promoting industries and economies while building a better future that protects nature and provides better opportunities for people.
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The Panama Canal is already experiencing the effects of climate change, with lower water levels slowing shipping and disrupting trade routes. For the average person, this translates to rising costs and less disposable income. It also delays critical medical supplies for those in urgent need, leads to business failures, and threatens livelihoods.
A drought at the canal is affecting essential commodities worldwide, resulting in reduced harvests, empty supermarket shelves, and increasing hunger among families. This situation is further exacerbated by rising fossil fuel prices, which elevate the cost of living.
'Famine is back, and the role of global warming cannot be ignored,' Stiell said at the summit, which aims to develop practical solutions for the real economy and bridge the gap between technical discussions, stakeholder engagement and real-world implementation.
The Panama Canal plays a vital role in global trade by significantly reducing transit times and costs for ships travelling between the Atlantic and Pacific Oceans. For Indian exports to North and South America, Europe and the Pacific Rim, the canal offers a shorter and more efficient route, leading to lower shipping costs and making Indian goods more competitive in international markets.
While global supply chains are being disrupted, the UNFCCC head warned that the impacts of climate chaos could be even more severe and long-lasting. 'Amid discussions of tariffs, trade barriers, and slowing growth, it's important to not overlook the signals in all the noise,' he said.
Stiell advocated for climate policy as a means to facilitate trade, stimulate economic growth, and avert disastrous climate impacts. Such policies can send clear signals to governments, markets and investors who are prepared to make significant investments.
In the past, climate plans primarily focused on reducing greenhouse gas (GHG) emissions and relying on traditional energy sources. For instance, India's NDCs include a commitment to generate 50 per cent of its electricity from non-fossil fuel sources and to reduce emission intensity by 45 per cent by 2030 compared to 2005 levels.
NDCs represent a country's commitment to mitigate and adapt to climate change by setting specific targets, policies and measures, contributing to the global goal of limiting the temperature rise to 1.5°C.
To navigate challenging times and capitalise on the $2 trillion clean energy market, Stiell called for active stakeholder involvement from various countries and sectors to combat climate change and share its benefits.
As more ships transit the canal, carrying the components necessary for a global clean energy economy, Stiell emphasised the need to ensure that their numbers continue to grow and that their cargo reaches every country on Earth.