Climate Action Is an Economic Strategy
In cities across the U.S., Climate Action Plans (CAPs) are proving to be more than environmental roadmaps—they are powerful engines for economic development. By tackling emissions and building climate resilience, these plans send a strong signal to companies: this is a place ready for the future. Creating and implementing a climate action plan to guide municipal policies and community-wide action can support economic development, including attracting investment, job creation, and broad economic benefits.
Attracting Business and Investment
Businesses increasingly seek locations with reliable infrastructure, clean energy, and forward-looking governance. A strong CAP demonstrates innovation and stability, making a city more appealing for corporate relocation or expansion. In Kansas City, for example, climate protection planning has helped attract new companies by lowering energy costs and improving environmental quality.
Fueling Job Creation
Green industries are booming. Research shows that climate-driven sectors—like renewable energy, energy-efficient construction, EV infrastructure, and waste reduction—are growing faster than the overall economy. As an example, Austin, Texas added over 19,500 green jobs between 2010 and 2019. Meanwhile, New York City anticipates nearly 400,000 green jobs by 2040.
These opportunities span the building trades, manufacturing, engineering, and professional services.
Broad Economic Benefits
Climate action strengthens local economies in multiple ways:
Reduces operational costs for businesses through efficiency measures.
Stimulates local supply chains and service industries.
Attracts investment for infrastructure and innovation.
Enhances livability, which helps attract and retain talent.
Success Stories
Cities small and large around the country can show connections between their climate action plan and economic development opportunities. San Francisco has seen an 48% emissions reduction since 1990 while maintaining robust economic growth. The City of Austin’s Clean-energy leadership has helped to attract Tesla and Google investments. New York City’s climate action efforts, meanwhile, are tied to $87 billion in projected green GDP by 2040.
The Takeaway
Climate action is not a trade-off against growth—it’s a catalyst for it. Cities with ambitious CAPs are not only leading in sustainability but also creating jobs, attracting investment, and building a resilient economy for decades to come.