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Better bankingFebruary 22

Why the SDGs, not GDP, are the real measure of economic progress

A phase-out of fossil fuels will not happen unless we change how we measure growth. The UN sustainable development goals can help bring a different perspective
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Why the SDGs, not GDP, are the real measure of economic progressCuban medical staff arrive in Africa during the Ebola breakout. Global south countries are cooperating to ensure the economic benefits of progressing towards the SDGs benefit the countries in most need of expertise. Image: Florian Plaucheur/AFP via Getty Images

At the UN climate change conference in Dubai at the end of 2023, COP28, world leaders agreed to move away from fossil fuels. It is now imperative that the world advances beyond the traditional fossil fuel metrics of economic output epitomised by GDP if this pledge is to become more than words on paper.

GDP is a measure of material production and consumption. Its continued use as a beacon for economic policies is holding back global sustainable development efforts because policies aimed at tackling climate change focus on the material footprint of consumption and production, while largely ignoring wider behavioural change.

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