On April 16, 2015, CEOs from 43 companies and 20 economic
sectors, with operations in more than 150 countries and
territories, published a letter urging world leaders to reach an
ambitious climate deal at the United Nations Climate Change Conference of the
Parties 21 ("COP21") to be held in Paris in
December 2015. COP21 "aims to deliver a new climate
change agreement that will put the world on track to a low-carbon,
sustainable future while keeping the rise in global temperature to
under 2 degrees Celsius." The CEOs' letter calls for the
climate deal to be aligned with the United Nations Post-2015 Sustainable Development
Goals. These goals have been proposed by an open working group
of the UN General Assembly, the report of an intergovernmental
committee of experts on sustainable development financing, General
Assembly dialogues on technology facilitation, and many
others.
The coalition of CEOs, facilitated by the World Economic Forum, extends an open offer to
national governments "to meet and co-design tangible actions
as well as ambitious, effective targets that are appropriate for
their different jurisdictions." According to the letter, the
coalition believes that the private sector has a responsibility to
"actively engage in global efforts to reduce greenhouse gas
("GHG") emissions, and to help lead the global transition
to a low-carbon, climate resilient economy." In this regard,
the coalition also seeks to elicit concrete actions and initiatives
from a wide range of companies and industries that will put the
concepts into actual "practices, operations and
policies."
In their letter, the CEOs explain their own commitments to climate
action. They claim that their companies are already taking
voluntary actions to reduce environmental and carbon footprints,
while setting targets to reduce their own GHG emissions and/or
energy consumption. They write that they will act as ambassadors
for climate action, actively manage climate risks and incorporate
risk issues into their decision making, and take steps to implement
effective strategies to strengthen their own companies' and
societal resilience. They will focus on what they see as solutions
and economic opportunities, following their own thematic sound bite
to support public awareness: "The science debate is over: climate change is real
and addressable."
The CEOs describe their vision supporting a climate
deal. First, they "believe that effective climate policies
must include explicit or implicit prices on carbon achieved via
market mechanisms or coherent legislative measures according to
national preferences, which will trigger low-carbon investment and
transform current emission patterns at a significant scale."
Second, they "urge a strategic action agenda ... that will
complement business efforts to stimulate innovation as well as
collaborative actions across value chains, and to develop and scale
up alternative and renewable energy sources, promote energy
efficiency, end deforestation and accelerate other low-carbon
options and technologies such as ICT." Third, they
"welcome transparency and disclosure regarding financial
investments and policies in relation to all energy-related
activities — including fossil-based and alternative."
Additionally, they "support assessments of resilience to
climate risks and call for new financial instruments to stimulate
alternative energy and efficiency projects as
well as green bonds. This will enable climate action to be
integrated with financial reporting and instruments." Finally,
they "encourage governments to set science-based global and
national targets for the reduction of GHG emissions and the
development of alternative energy sources."
The letter calls for action now—"hastening the shift to
low-carbon economy in an economically sustainable manner will
generate growth and jobs in both the developing and developed
world." They believe that a "comprehensive, inclusive and
ambitious" climate deal at COP21, in combination with a strong
set of clear policy signals from world leaders, is key to
accelerating this transition.
There has already been some reaction to the CEOs' letter. Tim
Gore, Climate Advisor of Oxfam International, an international
confederation of 17 organizations working together in more than 90
countries to fight poverty, agreed generally with the CEOs' call
to governments to agree to a climate deal at COP21.
"But," Gore said, "companies themselves need to go
further in addressing their own climate change footprints by
establishing science-based reduction targets, adopting internal
carbon prices, committing to 100% renewable electricity goals, and
implementing comprehensive
adaptation strategies that apply across their value
chains." Gore went on to encourage the business community
generally to call on their governments to support strong action
items coming out of COP21. Gore concluded that only when companies
start putting new climate-related policy commitments into practice
"will real change happen for the millions of people suffering
the consequences of climate change."
COP21 will take place on December 7–8, 2015, in the Le
Bourget area of Paris, France.
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