G20: Business needs enabling policies to support a 1.5°C-aligned just, clean energy transition | Climate Group Skip to main content

G20: Business needs enabling policies to support a 1.5°C-aligned just, clean energy transition

Companies are urging G20 leaders to commit to clear policy roadmaps that will align with 1.5°C.

Read the G20 business letter below:

 

G20 Policy asks

Dear G20 leaders,

The G20 in India brings together the world’s most powerful nations at a time when impacts of climate have become more unforgiving and evident than ever before. India’s G20 Presidency, followed by the presidencies of Brazil and South Africa, provides a unique opportunity to reflect and act on the current realities of the Global South, and enable a just, clean energy transition that keeps the world within the 1.5°C limit of the Paris Agreement while supporting social, economic and development needs.

G20 economies collectively produce more than 83 percent of global greenhouse gas emissions. Under India’s leadership, the G20 can propose a vision for how the international community can orchestrate an equitable clean energy transition in a way that preserves the 1.5°C limit while delivering the much-needed finance, technology transfer and capacity-building to countries in the Global South.

Our businesses recognise the importance of climate action. We have already started channelling capital into net zero aligned investments because they are good for business. The right policy signals from the G20 can drive greater investments and enable companies around the world to go all-in for climate action in support of more robust, equitable and resilient economies, fostering prosperity, generating decent jobs and safeguarding both public health and the environment.

This decade is key to climate action. Committing to a full range of fiscal, market and regulatory mechanisms will speed up the pace of achieving nationally determined goals to reduce greenhouse gas emissions.

Our key policy asks are:

  1. Setting targets and timelines at country level for the phase out of all unabated fossil fuels in line with 1.5°C pathways, supported by national plans and policies to ensure a just transition for affected workers and communities.
  2. Accelerating clean energy to reach a 100% decarbonised power grid by 2035 in advanced economies and by 2040 for other countries, as per the IEA’s Net Zero 2050 scenario.
  3. Putting in place national decarbonisation roadmaps for hard-to-abate sectors with interim targets and milestones to accelerate transition before 2030, and in line with achieving net zero emissions by 2050.
  4. Deploying Zero Emission Vehicles (ZEVs) through -

    i) A commitment to 100% sales in the new light-duty vehicle segment by 2035 and by 2040 for any new medium and heavy-duty vehicle &

    ii) A demand commitment to only procure ZEVs in light and medium duty by 2030 and a full deployment in the medium and heavy-duty segment by 2040.

  5. Accelerating global financial architecture reform to ensure an equitable flow of climate finance towards developing countries, including delivery of the overdue $100B per year climate finance goal, in a way that does not exacerbate unsustainable sovereign indebtedness.
  6. Ensuring clear pricing signals, through a meaningful price on carbon and adopting national plans for all G20 countries to reform and repurpose all fossil fuel subsidies by 2025 at the latest.
  7. Set out national ‘Just transition’ roadmaps to support a people-centered, equitable and responsible clean energy transition.

In the essence of “Vasudhaiva Kutumbakam” or “One Earth. One Family. One Future” - as is the stated theme of India's G20 Presidency - we call upon global leaders for ambitious and enhanced cooperation towards climate action.

Businesses like ours have committed to sharing the responsibility through credible emission reduction targets, supported by investments in long-term, transformative decarbonisation. While many solutions are developing, the urgency of the moment cannot be overstated. Collectively, within the right policy environment and ambitious leadership of the G20, we can go further, much faster.

We are eager to collaborate with you and support you on the path to long-term economic progress and shared prosperity.

Companies endorsing the policy asks

companies G20

Climate Group produced a series of videos with business leaders in India on their company's climate action and vision. The videos, first broadcast on NDTV24x7, spotlight India’s business stewardship. Watch all videos from the series here.

The letter was presented to the G20 by Climate Group and We Mean Business Coalition.

Climate Group & We Mean Business Coalition

In case you are a journalist, access the press release here