Understanding NDCs and their critical role in tackling climate change
What are NDCs and why are they important?
Nationally Determined Contributions (NDCs) are at the heart of the Paris Agreement, and serve as each country’s climate action plan. NDCs embody the commitments nations make to reduce greenhouse gas emissions and adapt to the impacts of climate change. Updated every five years, NDCs are meant to progressively increase ambition, keeping the world on track to meet the long-term goals of the Paris Agreement.
Current status of NDCs
The first round and second round of NDCs, or national climate action plans, were submitted in 2015 and 2020/2021, respectively, with the third round, NDCs 3.0, due in early 2025.
Despite the increasing human and economic costs associated with the climate crisis globally, the 2024 NDC Synthesis Report shows only a marginal improvement compared to 2023. If the latest NDCs were implemented, total global GHG emissions levels in 2030 are still projected to be just 2 per cent lower compared to 2019 levels, compared with the 43 per cent reductions we need to limit temperature rise to 1.5°C.
This means the planet is still on track for up to a 2.8°C global average temperature rise, which would cause massive and permanent damage to human health, food security, economies and nature, driving millions of people into poverty.
Making NDCs effective
As the 2024 NDC Synthesis Report has shown, the next round of NDCs must bring an exponential increase in ambition. To be successful, they must be actionable, inclusive, science-based and adequately financed. Achieving these goals requires broad collaboration across sectors—energy, transport, agriculture and more—and deep engagement with all stakeholders, especially businesses and financial institutions, in both the development and implementation phases. The most effective NDCs will also ensure that vulnerable, underrepresented groups like women, indigenous peoples and youth are actively involved in decision-making processes.
Involving businesses from the outset is key to creating high-quality NDCs that can be successfully financed and implemented as private sector resources and networks hold the potential to significantly scale up solutions and unlock finance while also fostering a just transition.
Businesses' role to play
Businesses play a critical role in achieving the goals of NDCs. By deploying capital, leveraging sector-specific expertise and innovations, and advising on enabling policies that are region and industry-specific businesses can unlock new market opportunities, strengthen resilience and contribute to a just transition while reducing environmental impact.
Engaging businesses in the development and implementation of NDCs is essential to scaling up climate solutions and accelerating global progress towards the goals of the Paris Agreement.
The role of the NDC partnership and UN support
Many countries, especially the most vulnerable, need support to prepare and implement their NDCs. The NDC Partnership plays a vital role in helping nations access the tools, information and contacts they need. The NDC 3.0 Navigator, developed by the UNFCCC in collaboration with the NDC Partnership, is designed to guide countries through this process by providing practical resources and advice.
The UN System, with its expertise across critical sectors and its trusted role as a neutral partner, supports developing countries by offering technical and policy guidance.
Initiatives like the UNDP’s “Climate Promise 2025” aim to mobilize stakeholders at all levels to help nations deliver more ambitious NDCs. This effort is essential to scaling up climate action, especially in vulnerable regions. The UN’s cross-cutting expertise in gender, youth, human rights and social inclusion ensures that NDCs are inclusive, sustainable and impactful.
Take action
The third round of NDCs presents a crucial opportunity to strengthen global climate action. All stakeholders must work together to ensure these plans are ambitious, achievable, inclusive and science-based. Now is the time to act—because every fraction of a degree matters. Let’s make the most of this moment for a livable future.
To learn how to support your country’s NDCs, participants of the UN Global Compact can connect with their Country Networks for more guidance.
