Amid a global energy crisis, it's time to act on clean energy
With soaring energy prices, concerns about supply and increasingly alarming science, we are at a turning point.
Accelerating the transition to a diversified, reliable clean energy system is the most cost-effective way to reduce energy price volatility, increase energy security and cut emissions.
With the right policies, governments can stimulate a rapid transition away from fossil fuels and support industry transformation on the way to resilient, net-zero economies.
Proactively delivering adequate support to developing countries must be an essential part of this response.
Over 1,000 companies headquartered in nearly 60 countries including the US, Japan and EU member states, have joined calls for governments to set policies that accelerate the transition to clean energy.
In July 2022, We Mean Business Coalition wrote to G7 leaders with priority policy recommendations to accelerate a just clean energy transition. The resulting communique was, however, a missed opportunity. In the run up to COP27 and as citizens across the world face spiralling energy crises, it’s time for governments to take the lead in updating their ambition.
Put forward strengthened Nationally Determined Contributions (NDCs) in line with a 1.5°C pathway and the latest science to halve global emissions by 2030 as agreed at COP26.
Commit to a rapid and just transition away from fossil fuels and towards achieving fully decarbonized power systems in advanced economies by 2035 and by 2040 in other economies.
Phase out domestic coal-fired power generation in advanced economies by 2030, and by 2040 in other economies.
Rapidly scale up renewable energy deployment. In the G7 this should aim towards achieving 70% of power generation by 2030.
Commit to 100% sales of zero emissions vehicles (ZEVs) by 2035 for new light duty vehicles.
Increase public spending and policy measures to increase energy efficiency.
In addition, aligned financial decisions and flows will be essential for enabling a just, clean energy transition and keeping 1.5°C within reach. Important measures include:
Reforming fossil fuel subsidies by 2025 with plans to repurpose those towards energy efficiency, renewable energy and other measures to support a people-centered and equitable clean energy transition.
Putting a meaningful price on carbon that increases and converges towards a uniform global price over time and reflects the full costs of climate change.
Making climate-related environmental disclosure mandatory for corporations to provide clarity on both value creation and the effects of corporate activities on people and planet, including by supporting the International Sustainability Standard Board (ISSB) to develop a global baseline for sustainability-related financial disclosures.
Through additional policy measures, governments can send clear signals to business on the speed and direction of travel, remove barriers and ensure the most effective and efficient private sector investment and transition pathways.
G7 Summit 2022
In July 2022, We Mean Business Coalition wrote to G7 leaders with priority policy recommendations to accelerate a just clean energy transition.