In an open letter, 15 major Indian and global companies put together key policy positions they want G20 nations to consider, urging them to take bolder action on climate, decarbonisation, and sustainability through long-term policies.
More than a dozen businesses have urged G20 nations to adopt credible and ambitious climate targets for rapid decarbonisation of the private sector aligned with the Paris Agreement.
In an open letter led by the Climate Group and We Mean Business Coalition, steelmaker JSW Group, manufacturer Godrej and Boyce, clean energy producer ReNew, IKEA India, and 10 other major Indian and global companies emphasised the necessity for long-term policy planning to enable companies to commit to bold climate action strategies.
“As the impacts of climate change are increasingly being felt, it’s encouraging to see some of the world’s biggest businesses calling on the G20 leaders to ensure that this G20 truly becomes a turning point for climate action,” said Divya Sharma, Executive Director of India at Climate Group.
The letter includes several key policy asks for the world’s 20 largest economies, which collectively account for more than 83% of global greenhouse gas emissions and 75% of international trade. The signatories urged governments to phase out all unabated fossil fuels in line with the 1.5C target, achieve power grid decarbonisation by 2035 in advanced economies and 2040 in developing nations, and develop bold action plans to decarbonise highly polluting sectors such as steel and concrete.
Simultaneously, the letter calls for a rapid rollout of Zero Emissions Vehicles (ZEVs) and adequate global finance for the Global South, including the delivery of the long-overdue $100 billion per year for developing countries.
They also urge governments to put a price on carbon as well as reform and repurpose all fossil fuel subsidies by 2025. Just last week, the Institute for Sustainable Development (IISD) published a new report suggesting that G20 countries’ investments in the fossil fuel industry reached a record US$1.4 trillion last year, more than double the pre-pandemic and pre-energy crisis levels of 2019.
We, .@WMBtweets and 15 major Indian and global businesses, have put together key policy positions that we want the G20 nations to consider.
It is an ask of governments on climate, energy and sustainability, urging for clear long-term policies and faster action. pic.twitter.com/nv1hylncYG
— Climate Group (@ClimateGroup) August 31, 2023
“The climate crisis is urgent and the moment to act is now,” said Jayant Acharya, JMD and CEO of JSW Steel. “JSW Steel endorses the call to support a decarbonised global economy with focus on clean energy and just transition. We request that all G20 nations must commit to decarbonisation roadmaps for all industrial sectors, with ambitious goals and targets, and clear policy support to accelerate business action in line with achieving net zero emission as per the Paris agreement and respective Nationally Determined Contributions (NDCs).”
G20 countries committed multiple times to phasing out investments in the industry. At the 2009 Pittsburgh Summit, the heads of the world’s largest economies vowed to “phase out and rationalize over the medium term inefficient fossil fuel subsidies while providing targeted support for the poorest.” As signatories of the Paris Agreement, these nations also committed to keep financial investments in line with the goal of lowering greenhouse gas emissions and supporting climate-resilient development, a promise that was renewed at the 2021 COP26 summit in Glasgow.
In the most recent meeting in India, however, G20 nations failed to reach a consensus on key climate issues, including phasing down fossil fuels and speeding up the energy transition.
All eyes are now on the upcoming summit, which will take place this September in New Delhi and that many see as the last chance for G20 nations to issue a joint statement on climate ahead of COP28 and position themselves as leaders of the green transition.
Featured image: Paul Kagame/Flickr