Monday 23 October 2023

Major companies call for fossil fuel phaseout by 2040s

Major companies call for fossil fuel phaseout by 2040s

More than 125 businesses, including Volvo Cars, BT Group, Vodafone, Heineken, Mahindra Group are urging world leaders to start the process of phasing out fossil fuels a month before the UN climate summit, COP28, in Dubai.

In an open letter coordinated by the We Mean Business Coalition, these companies, representing nearly $1 trillion (£820bn) in annual revenue, are calling on governments to address their reliance on fossil fuels.

They are advocating for clear targets and timelines to reduce and ultimately eliminate unabated fossil fuel use, supported by policies that promote the rapid expansion of clean energy.

The letter highlights the pressing need to accelerate the transition to clean energy and increase efficiency to achieve a swift, well-managed, and equitable move away from fossil fuels.

Fossil fuels currently account for roughly 80% of the global energy supply, a figure that has remained largely unchanged for more than two decades.

The International Energy Agency (IEA) recently projected a peak in fossil fuel consumption before 2030, followed by a decline, but this outcome relies on the delivery of planned policies and commitments.

The scientific consensus indicates that global emissions must peak by 2025 and decrease by half by 2030 to maintain the goal of limiting global warming to 1.5°C.

The business coalition emphasises that the transition to net zero emissions could boost global GDP by 4% by 2030.

Signatories are calling for collaborative efforts between financial institutions, fossil fuel producers and policymakers to facilitate decarbonisation securely and efficiently.

They also express support for a threefold increase in renewable energy capacity, in alignment with the target agreed upon by G20 leaders in September, alongside a doubling of energy efficiency rates by 2030.

Written by

Sumit Bose

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