Dear Heads of State,

We, the undersigned companies representing over $1.6 trillion in global annual revenue, celebrate the exponential growth of solutions that have made clean energy cheaper and more accessible than ever before. However, global emissions continue to rise because we haven’t addressed the primary cause of climate change: the burning of fossil fuels. 

As energy purchasers and users* in the global system, we have an important role to play in sending a clear signal about our future energy use, which is rapidly becoming cleaner through renewables. We are taking action and working toward phasing out our use of fossil fuels. That is why we are setting science-based targets, developing climate transition action plans, investing in net-zero solutions and disclosing our progress. Climate action is good for business now and in the future. 

To decarbonize the global energy system, we need to ramp up clean energy as fast as we phase out the use and production of fossil fuels. This means turbocharging the renewables revolution, electrifying key sectors and massively improving efficiency — thereby creating the conditions for a rapid, well-managed and just transition away from fossil fuels. The transition to net zero could boost global GDP by 4% by 2030**. 

But we cannot make this transition securely or efficiently alone. Financial institutions, fossil fuel producers and governments all have crucial roles to play in setting targets and timelines that are aligned with science, and in accelerating the shift of investment away from fossil fuels and toward clean solutions. 

The UAE Consensus, agreed at COP28, sent a clear signal that governments of the world are united in accelerating a global transition away from fossil fuels this decade, alongside tripling renewable energy capacity and doubling the rate of deployment of energy efficiency by 2030. The direction is clear, and 1.5°C remains within reach. Business is looking for robust policy commitments for how this will be brought into reality, including through multilateral outcomes at the G7, G20 and COP summits and other major international moments, and in national policies and targets to be reflected in the countries’ NDCs (Nationally Determined Contributions to the Paris Agreement). Policy certainty will enable businesses to develop affordable and reliable near-term alternatives to fossil fuels for their operations and supply chains. 

In support of the above, we urge all governments to: 

• Set targets and timelines for the phase-out of unabated*** fossil fuels in line with 1.5°C, supported by national plans and policies to ensure a just transition for affected workers and communities. Wealthier countries have the responsibility to be first movers and support other countries in their efforts.
• Accelerate the clean energy transition by committing to reach 100% decarbonized power systems by 2035 in advanced economies, and by 2040 for other countries, at the latest
  
• Support countries in the Global South in diversifying their energy systems and developing 1.5°C-aligned economic pathways, including through the provision both of finance that does not exacerbate unsustainable sovereign debt, and of capacity-building for just transition planning. This must be part of a broader alignment of public and private financial flows with the objective of an equitable global phase-out of fossil fuels.
• Ensure clear pricing signals through a meaningful price on carbon that reflects the full costs of climate change — and reform and repurpose fossil fuel subsidies toward energy efficiency, renewable energy and other measures to support a people-centered and equitable clean energy transition. 

Leadership from policymakers, alongside coordinated actions from finance and fossil fuel producers, will enable us, as energy users, to develop and deploy the climate solutions of the net-zero economy. 

We stand ready to support and work with you on the path away from fossil fuels, and toward healthier and more resilient communities, sustainable economic growth and shared prosperity. 

*Inclusive of power generators
**IEA
***IPCC AR6 WG3 2022. “Unabated fossil fuels refers to fossil fuels produced and used without interventions that substantially reduce the amount of GHG emitted throughout the life-cycle; for example, capturing 90% or more from power plants, or 50-80% of fugitive methane emissions from energy supply.” Storage must be on a geological timescale. WGIII Summary for Policymakers Headline Statements (ipcc.ch).