The business networks represents over 6 million companies from more than 130 countries and the goal is clear: lead the global transition to a low carbon, climate resilient economy and achieving net zero emissions well before the end of the century whilst keeping cumulative carbon emissions within one trillion tones as required by the UN’s Intergovernmental Panel on Climate Change. This objective is achievable and compatible with continued economic growth and human development if all actors work together in this urgent and long term climate battle.
The business leaders at the Business & Climate Summit, including AP4’s Mats Andersson, made a number of calls to policymakers for more climate action and to introduce climate policies. Amongst these were:
The introduction of robust and effective carbon pricing mechanisms as a key component to gear investment and orient consumer behavior towards low carbon solutions and achieve global net emissions at the least economic costs. This includes the elimination of fossil fuel subsidies to redirect consumption to renewable energy sources. Such policies need to be carefully designed and implemented to avoid competitive distortions in some specific sectors
The establishment of an alliance between business and governments leading to the integration of climate policies into the mainstream economy. This should include a commitment every 5 years to align policy with climate science, and to progressively increase national emission reduction commitments in order to reach the net zero goal.
The creation of public funds to leverage private sector finance and de-risk investment towards low carbon assets, especially in developing countries. This should surpass the $100 billion per year pledged in Copenhagen in order to shift the trillions of dollars needed to build the low carbon, climate-resilient economy.
Mats Andersson, CEO at AP4:
- Putting a price on carbon is absolutely key: it will send the right signal to the market, the investors and the polluting companies. And at the same time it will reward the leaders who take climate change seriously. Last but not least, it will push more money into investments in renewables and green infrastructure.