The latest insights from the We Mean Business coalition

Rapid switch to clean energy would see a 4-person household spending $2,000 less each year, and create nearly 2 million jobs across G7

Today, days ahead of the G7 leaders’ summit, new research finds that rapidly implementing policies to end dependency on fossil fuels will save families across G7 countries $480 per capita on their total annual energy bills (electricity, natural gas and petrol combined) by 2030. That represents a 25% saving on their average bills and would see a family-of-four spending almost $2,000 less each year.  By 2035 the average person living in a G7 country will save 45%, or $825, per year on their energy bills.

The report, Cutting Bills and Creating Jobs: the economic opportunities of a clean energy transition, published by the We Mean Business Coalition and Cambridge Econometrics, finds that across the G7 nations, policies designed to accelerate the transition away from fossil fuels to net-zero will also create 1.92 million new jobs across the G7 by 2025 as opposed to business as usual.

Amongst other striking findings, the research shows that implementing policies to end dependency on fossil fuels will:

• Create 900,000 new jobs in the U.S. by 2025. Annual energy bills would fall 25%, or $529, by 2030 and in 2035 Americans would spend 46% less, saving $940 each year, compared to business as usual.
• In the European Union, household energy bills would be 28% or €409 ($430) lower in 2030 and by 2035 consumers would spend roughly half as much on their energy costs, saving almost €713 ($750) per year, compared to business as usual.
• The analysis also looked beyond the G7, finding that India would see the creation of over 15 million new jobs by 2025.

As many of the world’s major economies experience record increases in gas and electricity bills, inflation, a cost-of-living crisis and more economic shocks expected, the report’s findings offer a clear path for governments to act. Setting ambitious climate policies to deliver clean energy will reduce household bills and create more jobs and growth.

The latest IPCC report also stated that clean energy is one key solution to deploy as fast as possible if we are to limit global temperature rise to 1.5^oC.

If governments act now to adopt policies like phasing out coal, increasing energy efficiency and scaling up renewable energy, the report shows that they will generate savings for households, new jobs and growth.

Maria Mendiluce, CEO, We Mean Business Coalition said: “With heatwaves hitting communities across the world, the climate emergency is more evident than ever. People want to see solutions now. This report highlights for the G7 leaders that an accelerated transition to clean energy is achievable. It can help solve the climate crisis while driving down household costs and bringing more jobs and growth: a huge bonus to businesses and the people they serve and employ. To protect the world’s citizens from climate and economic disaster, we urge G7 leaders to implement the policies outlined in this report now.”

Jon Stenning, Head of Environment, Cambridge Econometrics said: “The modelling illustrates the potential benefits if G7 leaders follow through on their commitments to accelerate the energy transition. What they choose this week could set in motion investments and policies needed to drive the clean energy transition at the pace required to halve their emissions by 2030. This would also generate additional benefits to society such as reducing household energy costs and creating millions of new jobs.”

The research modelled a series of realistic policy asks that have been made through a series of letters recently signed by over a thousand businesses to G7 governments through the We Mean Business Coalition and its partners. These include calling on governments in the G7 to take timebound policy actions like phasing out coal power by 2030 and decarbonizing the electricity system by 2035.

To accelerate the transition to clean energy, the We Mean Business Coalition is calling on G7 leaders to:

• Commit to achieving fully decarbonized power systems in the G7 by 2035.
• Phase out domestic coal-fired power generation by 2030,
• Rapidly scale up renewable energy deployment towards achieving 70% of power generation by 2030 in the G7.
• Commit to 100% sales of zero emissions (ZEVs) by 2035 for new light duty vehicles.
• Increase public spending for energy efficiency,
• Set out national action plans in 2022 to eliminate all fossil fuel subsidies by 2025
• Put a meaningful price on carbon starting in 2022
• Set out national action plans in 2022 to eliminate all fossil fuel subsidies by 2025. Repurpose those towards energy efficiency, renewable energy, and other measures to support a people-centred and equitable clean energy transition.

NOTES TO EDITORS

We Mean Business Coalition works with the world’s most influential businesses to take action on climate change. The Coalition is a group of seven non-profit organizations: BSR, CDP, Ceres, Climate Group, CLG Europe, The B Team and WBCSD. Together, we catalyze business and policy action to halve emissions by 2030 and accelerate an inclusive transition to a net-zero economy. Find out more at wemeanbusinesscoalition.org.

Reduced per capita energy expenditure & percentage reduction (compared to business-as-usual scenario):

Jobs created (compared to business-as-usual scenario):