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Bold climate policy drives business action

The transition to an inclusive net-zero economy has begun. It’s achievable and brings significant benefits. Businesses are acting.

But it’s not happening fast enough. Policies that give clarity and certainty will encourage more businesses to make the necessary investments to achieve bold climate targets. This in turn leads to more ambitious policies, creating a positive policy-business ambition loop. Together we can limit global warming to 1.5°C and create a net-zero, just, and climate resilient economy.

Read our Policy Instructions for Building a Net-Zero World.

Economies for People and Nature

More and more countries are stepping up with enhanced nationally determined contributions (NDCs) and commitments to reach net-zero emissions by 2050. Now is the time for all countries to commit to the 1.5ºC trajectory, translate global commitments to policies and plans at the regional and national level, and deliver meaningful climate action.

Ensuring a green recovery from COVID-19 will help to drive sustainable economic growth as it builds resilience and creates new jobs as part of a just transition. This is a unique opportunity for governments, businesses and civil society to collaborate and show global solidarity in addressing both the COVID-19 and climate crises.

Business calls on government to:

Commit to achieving economy-wide net-zero emissions by 2050 at the latest and reversing nature loss by 2030.

Put forward strengthened, high quality NDCs in line with a 1.5ºC trajectory to halve global emissions by 2030.

Develop policies, implementation plans and laws across the economy that reach NDC and net-zero targets and are nature positive.

Develop policies that ensure a just transition that is fair, respects the needs of all people and countries, and builds a more inclusive economy.

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FINANCING THE TRANSITION

To finance the transition, markets need three things: full information on climate risks and opportunities, clear pricing signals and policies, and public climate finance support. Right now, it is important that money spent to help countries recover from the COVID-19 pandemic goes towards a green recovery. This will shift global financial flows away from polluting investments and stimulate low-carbon products, services and business models.

Business calls on government to:

Deliver on the commitment by developed countries of at least $100B per year in support of climate action by developing countries.

Put a meaningful price on carbon and support robust Article 6 rules that ensure environmental integrity and avoid double counting.

Make climate-related financial disclosure mandatory for corporations, in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

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A new energy market

Cutting emissions by more than 50% by 2030 and achieving a net-zero economy requires radical transformation across all sectors. The power sector has to lead the global transition to a zero emissions economy. Fossil fuels are still the dominant source of energy in our economies. Despite remarkable uptake of renewable energy, divestment from fossil fuels is not happening fast enough.

Business calls on government to:

End coal financing immediately, end coal exports by 2025, and phase out the use of coal by 2030 for OECD countries and 2040 for non-OECD countries at the latest.

Lay out roadmaps by 2022 to phase out ALL fossil fuel subsidies and financing by 2025 at the latest.

Invest in energy efficiency solutions and a smart grid infrastructure that integrates renewable energy.

Commit to public procurement and stimulate corporate procurement of renewable energy.

Commit to reaching 100% clean energy and power systems by 2040 or soon thereafter.

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The road to clean transport

The transition from polluting internal-combustion engine cars to zero-emission light-passenger vehicles is accelerating, but not fast enough. Governments can harness the momentum and support both the automotive industry and consumers to utilize the available technologies for rapid decarbonization.

Business calls on government to:

Implement increasingly stringent emission standards for all road vehicles.

Continue to promote fuel efficiency and the shift from cars and trucks to low emission transport modes.

Commit to 100% sales of zero emission vehicles (ZEVs) by 2035 for new light-duty vehicles.

Invest in infrastructure for reliable and seamless EV charging for all.

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A pathway for industry

Heavy industry sectors such a steel, cement and chemicals account for 25% of global emissions. Decarbonization must address these sectors’ current reliance on fossil fuels and feedstock and for heat, while ensuring that their products to continue to meet stringent quality criteria. Three inter-connected decarbonization strategies exist: energy efficiency and clean electrification of heat, increasing demand for low and zero emissions materials and products and deployment of circular economy approaches, and innovation of production processes. With the right policy support, these strategies are economically and technically feasible as well as offering other social, public health and environmental benefits in addition.

Business calls on government to:

Put industry roadmaps in place, with interim targets and milestones to net-zero emissions by 2050 at the latest.

Facilitate financing and R&D, demonstration and deployment of zero-emissions technologies to accelerate private sector investment.

Use public procurement, life cycle carbon accounting, standard setting and labeling to drive demand for zero emissions materials and circularity.

Combine ambitious carbon pricing systems with provisions for border adjustment mechanisms for imported materials and products to prevent unfair competition and carbon leakage.

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A sustainable built environment

Buildings and infrastructure are a significant source of climate pollution with operational and embodied emissions. They are also exposed to impacts from climate change, such as weather and rising sea levels. Efforts to reach a net zero built environment by 2050 at the latest and increase resilience must cover the full life cycle of existing and new assets: design, construction, operation and dismantling. Governments must take the lead to future proof our built environment and lock in green growth and create jobs in the process. Collaboration with the private sector is key.

Business calls on government to:

Put roadmaps in place to halve emissions from buildings, enhance resilience and ensure new buildings operate at net-zero by 2030.

Reduce at least 40% of embodied carbon in building materials by 2030.

Introduce mandatory building codes and rating for new and retrofit buildings that align with net-zero goals.

Increase renovation rates of the existing building stock to 3% per year by 2030, focusing on heating and cooling systems, insulation and building materials.

Use public plans and spending on infrastructure to drive demand for low emissions and recycled materials and resilience.

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Protecting land and nature

Biodiversity loss and environmental degradation are both accelerated by climate change and exacerbate its impacts. Addressing climate change strengthens nature’s ability to absorb carbon and adapt to climate impacts. Nature-based solutions only receive 5% of global public mitigation finance, despite the potential to abate 30% of greenhouse gases by 2030 to achieve a 1.5°C pathway. The interlinked crises of climate change and biodiversity loss are most effectively solved if addressed in tandem. Nature also provides for businesses as half of global GDP depends on nature.

Business calls on government to:

Deliver policies to end nature loss and degradation and turn forests and other land uses into a net carbon sink globally by 2030.

Eliminate commodity-driven deforestation by 2025 through trade policies developed in collaboration between producer and demand-side countries, aligned with the Forest, Agriculture and Commodity Trade (FACT) dialogue.

Eliminate subsidies that drive harmful land-use change and ecosystem degradation and integrate climate and biodiversity objectives into the more than US$700 billion of annual public subsidies for agriculture.

Triple public and private investments in nature by 2030 by establishing robust incentive mechanisms, including through Article 6 of the Paris Agreement.

Align climate policy with the Convention on Biodiversity by establishing ambitious and mutually beneficial targets, including protecting at least 30% of land and oceans by 2030.

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Policy instructions for building a net-zero world

Bold climate policy drives decisive business actions – policies that give clarity and certainty will encourage more companies to deliver towards our 2030 goals.

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