The world’s largest climate alliance of CEOs has called on governments and businesses to accelerate the transition to a low-carbon economy through ambitious environmental strategies.
Current climate policies are putting the world at risk of reaching severe consequences by 2050, according to some of the world’s leading climate-focused corporate executives.
In an open letter to businesses and governments a month ahead of COP30, the World Economic Forum’s Alliance of CEO Climate Leaders has warned that, as things stand, the planet could reach 3°C post-industrial warming by the end of the century.
The group, which includes CEOs of over 130 companies from 27 countries with a collective revenue of $4T, highlights that policymakers and companies have a “historic opportunity for returns, resilience and growth”, but the cost of the climate transition, combined with policy obstacles, fiscal pressures and geopolitical tensions, is slowing things down.
“COP30 presents a pivotal moment for business and government to reignite progress towards a more resilient and environmentally sustainable economy,” the letter reads, outlining the need for policies that can halve global emissions by 2030 and keep the 1.5° target within reach.
Success of CEO alliance proves efficacy of climate economy
If global temperatures reach 2°C above pre-industrial levels over the next 25 years, the consequences on the planet and its population will intensify strongly, from more severe storms and floods to increased droughts, heatwaves, and wildfires. Food security and economic resilience would be disrupted too, and healthcare and ecosystems will come under increasing pressure.
Only 6% of climate scientists think we can actually limit warming to 1.5°C by 2100, as promised in the Paris Agreement. Instead, 77% think we’ll breach 2°C, and 42% believe we’ll surpass the 3°C carbon budget, leading to what experts paint as a “semi-dystopian future with substantial pain and suffering for the people of the Global South”.
“Despite these immediate impacts, policies remain fragmented and uncertain, with varying levels of ambition and urgency. This makes it harder for businesses to invest at the speed and scale required to slow the rate of temperature increase,” the letter reads.
There is still time to fix things (though that is eroding fast). The companies represented by the Alliance of CEO Climate Leaders collectively generate 14% of the world’s greenhouse gases. If they were a country, their climate footprint would be equal to that of the US, and second only to China.
Between 2019 and 2023, though, members of the alliance reduced aggregate emissions by 12%, while growing revenue by 20%, demonstrating that climate action is compatible with driving growth.
Proven business cases, the group said, exist in multiple sectors. For instance, the global market for clean tech innovations like solar power, wind turbines, electric vehicles, batteries, electrolysers, and heat pumps has quadrupled since 2015 to over $700B annually.
Likewise, low-carbon agricultural products can increase farm profits compared to conventional production methods, and circular economy models can unlock new sources of value by boosting resource efficiency and cutting costs.
The alliance noted that the green transition does more than just deliver strong financial returns; it can help create 10 million jobs by 2030, protect biodiversity, and prevent premature deaths.
Governments and businesses must work together to enable green transition
The CEO letter comes as many corporations bow out of climate pledges amid a rise in right-wing politics globally, whose leaders tend to deny or play down the effects of the climate crisis. US President Donald Trump, for example, pulled the US out of the Paris Agreement once again, and in a speech to the UN last month, called climate change “the greatest con job ever perpetrated on the world”.
Several major firms departed the Net Zero Banking Alliance in the wake of Donald Trump’s reelection as US president, and the coalition officially shut down this month. Likewise, Nestlé faced criticism last week after leaving the Dairy Methane Action Alliance it helped set up at COP28 without explanation.
The Alliance of CEO Climate Leaders has listed 13 action points for public and private leaders to speed up the climate transition and drive growth. Policymakers must maintain a stable and predictable policy environment with long-term, ambitious regulations and build climate-resilient food systems by supporting sustainable agriculture projects.
Further, governments must provide financial instruments to mitigate the financial risk of private green investments, support investments for policy and nature, and double financing and incentives for breakthrough tech in “hard-to-abate” sectors.
Plus, they should streamline planning permits and approvals to speed up projects, and develop clear plans for “a just, orderly and equitable transition” away from fossil fuels. The latter includes redirecting subsidies and investments towards clean energy, electrification and resilience.
However, governments can’t act alone, and the CEOs have urged their fellow corporate leaders to partner with policymakers to unlock more opportunities. Companies should target and deliver emissions reductions across Scopes 1, 2 and 3; leverage efficiency solutions to reduce energy usage, costs and emissions; and combine corporate goals to increase demand for breakthrough tech by joining industry alliances.
The letter also recommends that businesses boost innovation and digital solutions with increased R&D in technologies like AI, in addition to being mindful of its environmental impact. Finally, they should direct capital towards climate-proofing facilities, diversifying supply chains, and strengthening infrastructure to safeguard against environmental risks.
“Achieving this transformation will require deeper collaboration between the public and private sectors, anchored in trust, shared ambition and coordinated cross-regional action around policy, finance and innovation,” the letter reads. “The moment is crucial, and the actions taken today will determine the speed and scale of the transformation.”
The post Global CEOs Urge Governments & Businesses to Set Ambitious Climate Policies appeared first on Green Queen.
This post was originally published on Green Queen.