Business urge governments across the globe to accelerate energy transition plans

Global businesses are accelerating energy transition plans due to concerns delays will come at a huge cost.

As leaders from 60 countries attended a major conference in London to identify how best to map a sustainable energy future, experts warned that the world’s energy systems were still vulnerable to shocks.

A landmark global poll of business executives across 15 countries highlighted overwhelming support for a rapid transition away from fossil fuels to renewable electricity.

Commissioned by E3G, the study highlighted a global tipping point with 97% of mid-market and large company leaders backing a move away from coal and other fossil fuels, with nearly 78% supporting the shift to a renewables based electricity system by 2035 or sooner.

More pressure on governments

The report found that the majority businesses will look to relocate to countries who take the lead in renewable energy delivery - highlighting the urgent need for governments to act. 

The study revealed half of business leaders said they will relocate their operations (52%) and supply chains (49%) to markets with better access to renewables-based power systems within five years.

The We Mean Business Coalition said that as world leaders finalise their next round of national climate plans (NDCs), the message from business is unequivocal - renewable energy is the best path to economic growth, energy security, and long-term competitiveness.

Many businesses believe government policy is lagging. 

The survey found despite strong corporate backing; many governments lack clear transition plans. In Japan business leaders say they want clarity on renewable electricity’s role within the country’s climate plans, highlighting corporate uncertainty in the investment outlook of Japan’s future power mix.

In Canada, where mine closures risk damaging communities, companies are urging workforce reskilling and targeted incentives.

Nick Mabey, CEO, E3G said: “In contrast to much political commentary this global poll shows nearly 80% of business executives strongly support a rapid transition to renewable power systems in the next decade.

“Business also wants stronger government policies to facilitate the shift to renewable electricity, access to which is a top priority when deciding where to invest. This strong endorsement of the economic and security benefits of renewables should give governments confidence to set ambitious, 1.5 degree aligned NDCs ahead of COP30.”

Why businesses must act now

Business leaders are investing in renewables and would like to do more. They need governments to accelerate planning and the removal of permitting delays for renewable energy, storage and grids.

Stuart Lemmon, global head of practices, sustainability, Schneider Electric Sustainability Business, Schneider Electric said: “Companies embracing renewable energy today are positioning themselves to succeed tomorrow - driving greater competitiveness, accelerating innovation and unlocking long-term cost savings.

“Renewable energy isn’t merely good sustainability practice; it’s an essential strategy for businesses committed to growth, resilience and long-term success.”

Gonzalo Sáenz de Miera, director of climate change and alliances at Iberdrola said: “A rapid shift from fossil fuels to renewable power and electrification makes strong business sense and ensures energy security and resilience.

“Enabling policy environments for investments in clean energy, grids and storage; market mechanisms and long-term contracts to provide price stability; and an acceleration of permitting for projects will be paramount to this aim.”

And Alice Steenland, chief strategy, sustainability and marketing officer, Signify said: “At Signify, we’re already moving away from fossil fuels and sourcing electricity from renewables, while increasing the energy efficiency of our lighting products. This combination – renewables plus energy efficiency – will reduce carbon emissions, lower costs for households and companies, and create millions of local, clean energy jobs.”

Next steps

The survey presented a number of recommendations for policymakers which identified the needs of business when it came to their energy future.

It called for:

• Clear incentives for renewable energy projects, including financing mechanisms and tax credits.
• Robust roadmaps for national transition, ensuring that the shift is both rapid and strategic.
• Investible NDCs that provide thought-through policy frameworks for the phase out of fossil fuels and upscaling of renewables, that in turn offer long-term stability for corporate decision-making.
• Workforce retraining and job creation plans, particularly in coal-heavy economies, to ensure a just transition.

Maria Mendiluce, CEO, We Mean Business Coalition concluded: “The shift away from fossil fuels is no longer a debate - it is an economic reality driven by companies that recognise clean energy as the foundation for long-term competitive advantage, job creation, and energy price stability.

“The business determination to build a clean energy system is a great opportunity for countries to attract investment and growth. Governments and companies need to work together, reskilling the workforce to benefit from new jobs opportunities.”