Signals of change – May 2026
We Mean Business Coalition
Here are this month’s signals of change toward…
AN ACCELERATED TRANSITION FROM FOSSIL FUELS TO CLEAN, ELECTRIFIED SOLUTIONS
Energy
Energy market volatility prompted by the Iran war may be speeding up some countries’ low-carbon transition, reports Reuters – as UN climate chief Simon Stiell pointed to the conflict ‘supercharging the shift to renewables’. The comments came as new Ember analysis showed renewables met all growth in global electricity demand in 2025, while fossil fuel generation declined.
Investors channelled money into clean power funds at the fastest pace in five years, as the prospect of increased energy security and independence makes renewables more attractive.
Citing long-term trends and policymaker discussions about the role of renewables for energy security, Portuguese utility EDP has unveiled a $1 billion renewables push in Asia-Pacific focussed on Australia.
Clean solutions increasingly have cost on their side too. New analysis from IRENA found that renewable energy paired with battery storage is now frequently cheaper than fossil fuel generation, further shifting the economics toward clean energy systems.
Buildings
In the U.S., heat pump sales surged this winter as households responded to high fossil fuel prices and lower electricity rates. In Massachusetts, new winter electricity rates saved 140,000 heat pump owners at least $37 million, prompting New York and Rhode Island to consider similar discounted rates for customers using fossil-free solutions.
DEEP DIVE: ENERGY VOLATILITY IS RESHAPING HOW SMES THINK ABOUT RESILIENCE
Businesses of all sizes are navigating rising energy costs and operational uncertainty. A snapshot of responses from small and medium-sized enterprises in Colombia, Ireland, Spain and the UK shows how climate action planning is helping SMEs strengthen their resilience.
Read our new blog from SME Climate Hub Director Pamela Jouven and Giki co-founder Jo Hand.
Industry
Swedish company SaltX Technology and cement producer Holcim have produced clinker, the key binding ingredient in cement, using a fully electrified process for the first time, marking a potential breakthrough for one of the world’s most emissions-intensive industries.
Meanwhile, Swedish green steel company Stegra has secured the final €1.6 billion in funding for its flagship plant in northern Sweden, keeping plans on track to produce 5 million tonnes of low-emissions steel annually by 2030 using green hydrogen and renewable electricity.
Transport
First to the UK, where electric vehicles are now holding their value longer than petrol cars, while falling purchase costs are bringing new EV prices close to parity with fossil fuel models.
EV sales in India jumped nearly 70% year-on-year in the first four months of 2026, while sales across Europe rose 30% in the first quarter as higher fuel prices and government incentives accelerated consumer demand.
Similarly, Costa Rica’s rapid EV adoption is reshaping the country’s car market, with electric vehicles accounting for nearly a quarter of new car sales.
Elsewhere, China’s shift towards electric heavy-duty trucks gathered pace following the Iran conflict, with electric models expected to account for around one-third of new truck sales this year as logistics and mining companies seek to reduce exposure to diesel price volatility and fuel import risks.
In Australia, mining company Fortescue said its planned rollout of electric haul trucks could save more than $400 million a year in diesel costs, further strengthening the commercial case for electrifying heavy transport fleets.
POLICY AND INCENTIVES
First to Germany, where the government announced a €5 billion industrial decarbonization fund using carbon contracts for difference, as Europe’s largest economy aims to incentivize major factories to stay in the country and meet climate goals.
Meanwhile, France unveiled details of its new electrification strategy aimed at reducing dependence on imported fossil fuels. The plan centres on expanding domestic electrification, with plans to ban gas boilers in new buildings from 2027, and targets for domestic car manufacturers to produce 1 million EVs per year by 2030.
South Korea is also pushing to cut fossil fuel imports, with the government announcing new support for solar, wind, energy storage and EVs. Domestic EV sales more than doubled and solar panel imports rose 137% year-on-year in March.
Lastly, in the U.S. state of Virginia, lawmakers are considering rejoining the Regional Greenhouse Gas Initiative, with supporters arguing carbon pricing revenues could help lower energy costs, improve efficiency and manage rising electricity demand.
Regulation and reporting
First up, the IFRS Foundation agreed a pathway for integrating nature-related disclosures into ISSB standards, signalling that biodiversity and ecosystem risks are moving closer to the mainstream of corporate sustainability reporting.
Meanwhile, the European Commission has released revised draft European Sustainability Reporting Standards for consultation. These include proposed simplified requirements under the EU’s corporate sustainability disclosure rules.
SCALING FINANCE THROUGH MARKET MECHANISMS
First up, new data from Global Forest Watch showed tropical primary forest loss fell 36% in 2025, driven largely by declines in Brazil following stronger enforcement measures.
New research published this month by WRI and Ohio State University found that allowing companies to use high-quality nature-based carbon credits alongside direct emissions reductions could provide immediate and substantial climate benefits.
LATEST FROM THE COALITION
Read reflections from our CEO María Mendiluce on the outcomes of The First International Conference on Transitioning Away from Fossil Fuels, held in Santa Marta, Colombia last month.
Writing in BusinessGreen, María Mendiluce argues that the current energy crisis is strengthening the case for electrification, with countries that accelerate the shift to clean electricity positioned to become more competitive, resilient and energy secure.
How does the European Commission’s AccelerateEU proposal help advance electrification as a route to resilience, energy security and reduced climate risk – and what’s missing to help it deliver? Read our statement on the proposal.
COMPANIES TAKING ACTION
Meanwhile 23,409 companies of all sizes continue to take credible and ambitious climate action through Coalition and partner initiatives. See a snapshot of this action below. See all companies who committed in the past month on the We Mean Business Coalition website.
Companies setting their ambition for net zero include:
- 13,412 companies working to cut their emissions in line with science through SBTi
- 10,240 small and medium-sized enterprises working to cut emissions with the SME Climate Hub
- 653 companies who have now signed the Climate Pledge, to reach net zero by 2040
Companies are also driving down emissions through the following demand-side initiatives:
- 116 companies are accelerating the transition to electric vehicles through EV100
- 107 companies are committed to improving their energy efficiency through the Smart Energy Coalition
- 445 companies have committed to 100% renewable energy with RE100
- 36 companies have joined ConcreteZero to create a market for net zero concrete
- 43 companies have committed to SteelZero to create a market for net zero steel
EVENTS
Scaling India’s Energy Transition through Business Action: 28 May
Navigating a triple COP year: what business needs to know (webinar): 3 June
Bonn Climate Change conference: 8–18 June
EU Sustainable Energy Week: 9–11 June
G7 Summit: 14–16 June
London Climate Action Week: 20–28 June
Climate Week NYC: 20–27 September
COP31, Antalya, Türkiye: 9–20 November