In an open letter to G20 leaders, several Indian businesses and companies operating within India have called upon governments to incorporate reliable targets and consistent policies related to clean energy, electric vehicles, rapid decarbonization of challenging-to-transform sectors, and climate finance into their national strategies. These measures are essential to facilitate a transition to clean energy aligned with the 1.5°C target, ensuring fairness and sustainability.
Companies which have endorsed the letter include Chalet Hotels, Infosys, Ultratech, JSW Group, Zomato, Citylink, Godrej and Boyce, Tech Mahindra, Godrej Industries, Wipro, ReNew, Sun Renewables, Heineken and IKEA India. The letter has been co-ordinated by Climate Group and the We Mean Business Coalition.
With the upcoming G20 leaders’ meeting in New Delhi, these businesses emphasize the pressing need for global cooperation to confront the escalating impacts of climate change. While these businesses have already initiated investments in the transition to a net-zero future, they stress the necessity for government action and long-term policy clarity. This is crucial to inspire both companies and individuals worldwide to fully engage in climate action.
Divya Sharma, Executive Director of India at Climate Group, said: “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.”
The joint call to action by global and Indian businesses encompasses various policy proposals designed to help countries tackle significant climate change challenges. These proposals address issues faced by developing countries, such as balancing economic growth with climate goals. The letter specifically advocates for a people-centered, equitable, and responsible shift to clean energy.
In particular, the letter sets out some recommendations for governments to adopt, including phasing out unabated fossil fuels in line with 1.5°C targets, decarbonisation of the power grid by 2035 in advanced economies and 2040 in emerging countries, and adopting a clear roadmap for hard-to-abate sectors such as steel and concrete. Additionally, they call for ambitious commitments to accelerate the adoption of electric vehicles across all vehicle categories and equitable access to climate finance for Global South nations. Regarding carbon pricing, they urge governments to implement transparent pricing signals and reform or repurpose all fossil fuel subsidies by 2025.
With India holding the G20 Presidency and Brazil and South Africa following, the letter encourages the G20 to lead a transformation that aligns with the goals of the Paris Agreement and accommodates the needs of the Global South. The outcomes of the Indian G20 Presidency will have a significant impact on the tone and direction of the upcoming UN Climate Conference, COP28, scheduled for November in Dubai.
Maria Mendiluce, CEO of the We Mean Business Coalition, said: “Business is looking to the G20 to set the enabling conditions for a 1.5°C-aligned and just clean energy transition globally. Some of the largest businesses in India have reaffirmed their commitment to doing their part by reducing emissions and switching from fossil fuels to clean energy solutions. These companies are calling for greater public-private collaboration and the bold policies, financing and clear timelines that will support a well-managed and decisive transition. With bold business and political leadership, we can scale clean energy and end our reliance on fossil fuels.”
