Global businesses demand clear roadmap to end use of fossil fuels

Onome Amuge

Major companies, including Nestle, Unilever, Mahindra Group, and Volvo Cars, are calling on political leaders to agree on a timeline for phasing out fossil fuels at the upcoming U.N. Climate Summit.

In the letter, the 131 companies called for COP28 attendees to commit to phasing out fossil fuels by 2035 in developed countries and by 2040 in developing countries. They also emphasized the need for financial support for developing countries, to help them make the transition to renewable energy sources.

The letter highlighted the urgency of the climate crisis, and the need for bold action to achieve a just and sustainable future.

“Our businesses are feeling the impacts and cost of increasing extreme weather events resulting from climate change,” the companies wrote in the letter, which was coordinated by the non-profit We Mean Business Coalition, which is pushing for greater climate action globally.

“To decarbonise the global energy system, we need to ramp up clean energy as fast as we phase out the use and production of fossil fuels,” they noted.

The 131 signatories of the letter represent a diverse range of industries and company sizes, from large multinational corporations such as Bayer, Heineken, IKEA, and Iberdrola, to small and medium-sized businesses.

While many companies are setting their own targets to reduce their greenhouse gas emissions, they recognize that their ability to meet these goals depends on the actions of governments to create the necessary policy and financial frameworks. The letter emphasizes the critical role of government policy in enabling businesses to make the necessary changes to protect the planet.

With the COP28 summit set to take place in November, the question of how quickly countries should phase out fossil fuels is expected to be a major source of contention. While Europe and other regions are pushing for an end to the use of coal, oil, and natural gas, major fossil fuel producers and consumers argue that such a transition would be too costly and disruptive. Meanwhile, developing countries say they need more financial support from developed nations to meet their goals for reducing emissions. The outcome of these negotiations is expected to have a significant impact on the world’s ability to meet the goals of the Paris Agreement.