Dear G20 Leaders,
The world is at a pivotal moment. The latest science warns us that the impacts of climate change are greater and more far reaching than previously understood, and that the window of opportunity to remain within the Paris Agreement’s 1.5°C temperature goal is quickly narrowing. We see devastating evidence of this all around us. Extreme weather events around the world must be a wake up signal to us all that there is no time to lose.
At the same time, there are great opportunities to be harnessed through a carefully managed transition. Our businesses recognize the benefits of climate action. The right policy decisions taken today can drive further investments and spur business decisions in favour of climate solutions across G20 countries. We can build stronger, just, and more resilient economies: bringing prosperity and creating decent jobs while protecting health and the planet.
Relatedly, climate change impacts are exacerbated by biodiversity loss and environmental degradation, which are themselves accelerated by climate change. It is important for these interlinked and mutually-reinforcing challenges to therefore be addressed in tandem, through policies to build a nature-positive economy and reverse nature loss by 2030.
Many of our businesses have operations spanning multiple G20 countries. A harmonized policy environment across the G20 will enable us to collectively decarbonize our value chains, products and services, while supporting our shared climate and sustainable development goals. Governments can stimulate greater investments and reduce the risk of stranded assets through communicating clear and credible plans, setting consistent policies and implementing support measures for 1.5°C-aligned sustainable development across all sectors of the economy.
Representing approximately 90% of global GDP and almost 80% of global trade and GHG emissions, the G20 has a unique collective responsibility, and opportunity, to demonstrate global leadership to decisively address climate change while leaving no-one behind.
We, the undersigned businesses, call on you as G20 Leaders to go all in to keep the Paris Agreement’s 1.5°C goal within reach by:
- Strengthening NDCs in line with at least halving global emissions by 2030, and committing to achieve net-zero emissions no later than 2050. We urge you to publish long-term strategies, detailing pathways to 2030 and 2050 as soon as possible.
- Committing to ending new coal power development and financing immediately, and developing plans to phase out coal-fired power generation by 2030 for advanced economies, and 2040 for other countries, while promoting electrification of transport and uptake of renewable energy across sectors. This should include removing barriers to corporate purchasing of 100% renewable electricity to enable companies to go quicker in their clean energy transition and invest more than policy currently allows in many jurisdictions.
- Aligning public finance, COVID-19 recovery spending and fiscal policies with a 1.5°C trajectory, while ensuring adequate support for adaptation and resilience measures. Important measures include:
- Delivering on existing public climate finance commitments such as the US$100 billion for developing countries. Adequate levels of international public climate finance can contribute to developing new markets for private finance by stimulating investments in support of climate-resilient green infrastructure and nature-based solutions.
- Ensuring appropriate pricing signals by removing fossil fuel subsidies ideally by 2025, and putting a meaningful price on carbon that reflects the full costs of climate change as part of a broader mix of policy instruments to support clean technology investments and innovation.
- Making climate-related financial disclosure of risks, opportunities and impacts mandatory for corporations, to increase transparency and support better informed pricing and capital allocation to encourage investment flows towards more sustainable activities.
Businesses like ours across the world are setting ambitious science-based targets, investing in climate solutions and disclosing progress towards reducing emissions. We are acting. But collectively we can do more within the right enabling environments. Heightened policy ambition from G20 Leaders will enable us to accelerate action together.
We stand ready to work with you, and to support you on the path to sustainable economic growth and shared prosperity.