Executive summary

Implementing the Paris Agreement requires strong analytical and institutional capacity to design and prioritize effective climate policies. Governments must evaluate how mitigation and adaptation measures affect economic growth, employment, fiscal stability, and investment needs, while identifying policy options that deliver the greatest economic and social benefits.

This report presents GGGI’s macroeconomic and financial modelling toolbox developed to support countries in preparing and updating their Nationally Determined Contributions (NDCs), Long-Term Low-Emission Development Strategies (LT-LEDS), and broader green growth strategies. The toolbox combines a system-dynamics–based macroeconomic modelling approach with a suite of analytical tools that help assess the costs and benefits of climate action, investment requirements, employment impacts, balance-of-payments effects, fiscal implications, and climate finance gaps. It also introduces analytical methods to capture better adaptation and loss and damage considerations in climate policy modelling.

By offering tools adaptable to different national contexts, technical capacities, and data availability, the toolbox aims to support governments in conducting evidence-based analysis, prioritizing climate interventions, and designing policies that mobilize investment for low-carbon and climate-resilient development.

Target audience

• Government officials from ministries responsible for climate change, environment, finance, and economic planning
• Policymakers and technical teams involved in NDC and LT-LEDS development
• Climate and macroeconomic modelling experts and analysts
• Development partners and international organizations supporting climate policy planning
• Researchers and practitioners working on green growth and climate finance analysis

For practical guidance on how to apply these analytical tools throughout the climate policy cycle—from strategy design to financing and implementation—read the accompanying guide.