CEO alliance joins calls to accelerate global climate ambition

A group of 112 CEOs have penned an open letter calling for policy action and corporate commitment to accelerate global climate ambition after scientists warned that current efforts are largely insufficient.

The Alliance of CEO Climate Leaders, backed by the World Economic Forum and representing a combined US$4 trillion in revenue, lists four policy acts that would “improve the business case for climate action”. 

First, governments should develop ambitious, credible and investable decarbonisation commitments – known as nationally determined contributions (NDCs) and due to be updated by next year’s COP30. 

Current NDCs would only deliver a 5% global emissions reduction by 2030, far  below the 43% needed to keep 1.5ºC within reach, according to the United Nations Framework Convention on Climate Change (UNFCCC).

“NDCs should offer clear transition plans that provide the transparency businesses need for investment, transforming them into national roadmaps for growth, competitiveness and the future green workforce,” the alliance – which collectively cut emissions by 10% while increasing revenue by 18% since 2019 – writes.

This would mean integrating multisectoral and multistakeholder input, de-risking and attracting long-term private investment, designing sector-specific transition pathways equipped with quantified investment targets, financing needs, energy supply, demand and performance targets, as well as public procurement objectives, detailing the long-term technological and human capabilities required, and linking climate and nature action.

How governments can de-risk private finance for climate change mitigation

Second, the CEO alliance wants governments to implement a suite of mechanisms to de-risk private capital flows for climate change mitigation and adaptation, thus scaling up climate finance “from billions to trillions”. 

Their recommendations include expanding the use of carbon pricing, supporting high-integrity voluntary carbon markets and finalising Article 6 negotiations for international carbon trading, phasing out fossil fuel subsidies and redirecting them to green investments, and providing more concessional and blended finance to reduce the cost of capital in low-income countries.

Policymakers should also accelerate the energy transition, partly by reducing red tape and permitting burdens for renewable energy projects and by setting energy intensity targets, the CEO climate alliance adds.

Finally, they ask for “supportive policies, incentives, streamlined processes and green public procurement targets” to support the development of clean energy and circularity technologies – many of which still face significant cost disadvantages.

CEOs call for companies to demonstrate climate leadership – including financially

In addition to their requests to policymakers, CEOs in the alliance have issued a call for other companies to “commit strategically and financially to net zero”.

Arguing that governments cannot fight the climate crisis alone, they urge their peers to set science-based targets, decarbonise their operations and value chains, disclose progress and develop climate transition plans based on the latest frameworks and standards, as well as supporting SMEs in their supply chains to do the same.

“The climate crisis is just one of many challenges facing us – from biodiversity and poverty to food systems and global health. What unites these issues is the need for urgent collaborative action to ensure a just and equitable transition and avert systemic shocks,” they conclude.