The climate crisis is escalating, bringing growing costs to businesses, economies and people. Yet the climate plans submitted ahead of COP30 fall short of what is needed. They neither reflect the scale of the threat nor provide the clarity markets require to unleash the full force of business investment in the clean energy transition.
As representatives and partners of the global business community, we call on you to act with urgency and ambition. A just clean energy transition is the path to affordable, reliable energy for all, to stronger economies and more resilient societies, bringing jobs, security and growth. Business investment is the engine that can deliver these benefits quickly and at scale. But governments must set the course.
Our message to world leaders ahead of COP30 in Belém is direct and urgent:
- At COP30, champion international cooperation and commit to the highest level of national climate ambition, with clear roadmaps for implementation.
- Back at home, realign financial incentives with concrete steps to quickly unlock private sector investment in the clean energy transition, that will deliver faster implementation.
Redirecting public finance and policy support away from fossil fuels and towards affordable and reliable clean energy solutions is one of the most powerful, strategic choices governments can make. It will strengthen energy security, enhance competitiveness, support long-term economic stability and resilience, and protect communities.
The stakes are clear. Around the world, households are paying more as volatile fossil fuel prices drive up energy bills. Countries are weakened and made poorer by dependence on imported fuels. Renewable energy is now the cheapest power source in most of the world. It is driving growth, jobs and innovation, and combined with electrification has the potential to displace 75 per cent of today’s fossil fuel demand as global clean energy investment races ahead.
At the same time, floods, droughts, fires and heatwaves – supercharged by fossil fuel use – are taking lives and livelihoods and destabilising communities. Every year of delay deepens the risk and compounds the costs. Extreme heat events this summer caused short-term economic losses of at least €43 billion (US$50 billion) in Europe alone, while 67 per cent of large corporates and small and medium enterprises (SMEs) have identified significant environmental risks with an estimated total global cost of US$6.5 trillion.
Businesses are already delivering. Investment and innovation are accelerating, and in many cases surpassing the ambition in national climate plans. But much more is possible. Governments must unlock this momentum by setting ambitious goals and fixing the financial incentives that are still skewed toward fossil fuels.
Business is moving:
- 97% of executives support a shift to renewables-based electricity.
- 91% of companies are maintaining or increasing their net-zero investments.
- More than half will relocate operations and supply chains to secure renewable power.
But progress is not fast enough. National climate plans are not aligned with an economically stable future, and fail to provide the resources for subnational governments to play their role in delivering these commitments. Outdated incentives are still holding back prosperity. Governments must act now to provide clear, predictable signals for business to accelerate action.
That means addressing the US$1 trillion a year spent on fossil fuel subsidies, and making a shift toward renewable energy, grids, storage and electrification. Starting with even modest reforms could create considerable new space in constrained public budgets, given the sheer scale of these subsidies. In a fiscally constrained world, removing fossil fuel subsidies is also an act of market fairness, it levels the playing field for clean energy, frees up capital for governments to invest in cheaper, more resilient energy systems and ensures competition can drive lower costs for citizens. Governments should also reform energy markets so that prices reflect the true, lower cost of renewables, and put in place carbon pricing and tax incentives that accelerate action.
These steps are not just climate policy – they are sound economic strategies. Addressing market distortions and providing predictable and aligned global policy is a smarter use of scarce public finance and will help trigger business investment in clean energy and electrification.
We recognise the governments already showing leadership, including through the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS) and other international initiatives. We urge all governments to deliver clear policies and plans to deliver on existing commitments, including ending inefficient fossil fuel subsidies, which have seen high-level agreement at international summits – yet little action – for many years.
This is a pivotal moment. We have the opportunity to cut bills, strengthen energy security and build resilience to future shocks. The realignment of financial incentives is one of the fastest, smartest levers at your disposal. Business is ready to partner with you to make it happen.
A new economy is rising, powered by business. Governments must now intentionally shape the incentives landscape for faster clean energy success – turning the climate challenge into the engine of prosperity.
This letter is coordinated by We Mean Business Coalition for business groups to send a strong message to world leaders ahead of COP30 to commit to the highest level of national climate ambition, and realign financial incentives towards an affordable, reliable clean energy system.
