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NEW DELHI: Ahead of the upcoming annual UN climate summit (COP30) in Belém, Brazil, the Alliance of CEO Climate Leaders, representing 134 companies from 27 countries, including India, has urged world leaders to accelerate the transition to a low-carbon resilient economy. The CEO-led alliance, one of the World Economic Forum’s (WEF) flagship decarbonisation initiatives, has issued an open letter calling on govts to deepen public-private collaboration to unlock the full potential of the climate economy at a time when the transition is under threat. It underlined the current trajectories that suggest that global warming could exceed 2 degrees Celsius by mid-century, with severe consequences on economies, societies and ecosystems. The Alliance companies have a combined emissions footprint of 5.2 gigatons, accounting for 14% of global emissions — equal to the annual emissions of the US, which second after China. The group represents $4 trillion in revenues and 12 million employees in 134 companies.Tata Steel, Mahindra Group, Infosys, Hindustan Zinc, Dalmia Cement, ReNew and Wipro are among the Indian companies within the alliance, launched alongside the signing of the Paris Agreement on climate change. CEOs of big tech multi-national companies are also part of the group. The WEF noted that these companies reduced aggregate emissions by 12% while growing revenue by 20% from 2019 to 2023, proving that climate action is compatible with driving growth. Their open letter, released by the WEF this month, calls for 13 action areas to accelerate the transition and drive growth. It highlights the need for policymakers to provide more stable frameworks, shorten permitting processes, scale climate finance, support breakthrough technologies, phase out unabated fossil fuels and invest in nature and resilience. “Climate action is no longer just a moral imperative — it is a powerful driver of green growth, innovation and resilience,” said Sebastian Buckup, managing director, Centre for Nature and Climate, WEF. “We urge govts and business leaders to act decisively and accelerate proven solutions so we can unlock the full potential of the climate economy and secure a more prosperous, sustainable future for all. Our work at the forum aims to connect leaders for people, planet and sustainable progress,” the WEF quoted him as saying.The Alliance’s open letter highlights that the corporate leaders across the world have made significant investments in building low-carbon and climate resilient businesses in the recent years, proving that climate initiatives can drive long-term value for business and society. “However, this momentum now faces strong headwinds. The cost of the transition, combined with policy obstacles and uncertainties, fiscal pressures and geopolitical tensions, is slowing the transition. COP30 presents a pivotal moment for business and government to reignite progress towards a more resilient and environmentally sustainable economy,” say the CEOs in their joint open letter to govts. They suggest that the policy-makers can drive growth and create wealth by accelerating the transition by maintaining a stable and predictable policy environment; mitigating the financial risk of private investments and projects; doubling financing and incentives for breakthrough tech; transitioning away from unabated fossil fuels; removing transition obstacles such as lengthy permitting processes; and supporting investments and policies for nature. Their remaining suggestions in the list of 13 proposed actions include building climate-resilient economies and food systems; adopting science-based targets and reporting transparently on progress on emission reduction; working together across the value chain to drive low-emission end products and business models; leveraging efficiency solutions to reduce energy usage, costs and emissions; strengthen innovation and digital solutions; support creation of demand signals; and investment in climate adaptation and resilience.
